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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 September 30, 2006 (Unaudited) and                December 31, 2005                                  |   | 4 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                |                   | Statements                of Operations (Unaudited) for the three and nine                months ended September 30, 2006 and 2005       |   | 5 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                |                   | Statements                of Cash Flows (Unaudited) for the nine months                ended September 30, 2006 and 2005                 |   | 6 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                |                   | Notes                to Financial Statements                                                                                             |   | 7 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                2. | MANAGEMENT’S                DISCUSSION                AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS |   | 12 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                3. | CONTROLS                AND PROCEDURES                                                                                                   |   | 16 |
|                                                                |                   |                                                                                                                                     |   |   |
|  PART              II. OTHER              INFORMATION          |                   |                                                                                                                                     |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                1. | LEGAL                PROCEEDINGS                                                                                                         |   | 16 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                2. | UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS                                                |   | 16 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                3. | DEFAULTS                UPON SENIOR SECURITIES                                                                                           |   | 16 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                4. | SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS                                                        |   | 16 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                5. | OTHER                INFORMATION                                                                                                         |   | 16 |
|                                                                |                   |                                                                                                                                     |   |   |
|                                                                | ITEM                6. | EXHIBITS                                                                                                                                 |   | 17 |
|                                                                |                   |                                                                                                                                     |   |   |
| SIGNATURES                                                          |                   | 19                                                                                                                                       |

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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**                                                                                                                                                                                                                                          |   |                                                    |        |                                    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                |   | **September                30,****2006****(Unaudited)** |        | **December                31,****2005** |   |
| Current                assets:                                                                                                                                                                                                                      |   |                                                    |        |                                    |   |
| Cash                and cash equivalents                                                                                                                                                                                                            |   | $                                                       | 3,037,202   |                                    | $      | 138,487 |   |
| Accounts                receivable, net                                                                                                                                                                                                             |   |                                                    | 798,619     |                                    |   | 187,835 |   |
| Inventories                                                                                                                                                                                                                                         |   |                                                    | 1,018,209   |                                    |   | 1,309,779 |   |
| Prepaid                expenses                                                                                                                                                                                                                     |   |                                                    | 101,599     |                                    |   | 119,002 |   |
| Deferred                tax asset                                                                                                                                                                                                                   |   |                                                    | —     |                                    |   | 1,278,000 |   |
| Total                current assets                                                                                                                                                                                                                 |   |                                                    | 4,955,629   |                                    |   | 3,033,103 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Property                and equipment, net                                                                                                                                                                                                          |   |                                                    | 77,080      |                                    |   | 65,357 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Deposits                                                                                                                                                                                                                                            |   |                                                    | 40,984      |                                    |   | 20,393 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Total                assets                                                                                                                                                                                                                         |   | $                                                       | 5,073,693   |                                    | $      | 3,118,853 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                       |   |                                                    |        |                                    |   |   |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                 |   |                                                    |        |                                    |   |   |   |
| Notes                payable                                                                                                                                                                                                                        |   | $                                                       | 32,925      |                                    | $      | 129,944 |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                |   |                                                    | 399,635     |                                    |   | 1,546,958 |   |
| Deferred                revenue                                                                                                                                                                                                                     |   |                                                    | 360,141     |                                    |   | 369,068 |   |
| Total                current liabilities                                                                                                                                                                                                            |   |                                                    | 792,701     |                                    |   | 2,045,970 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Long-term                liabilities:                                                                                                                                                                                                               |   |                                                    |        |                                    |   |   |   |
| Convertible                notes payable                                                                                                                                                                                                            |   |                                                    | —     |                                    |   | 500,000 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Stockholders’                equity:                                                                                                                                                                                                          |   |                                                    |        |                                    |   |   |   |
| Preferred                stock:                                                                                                                                                                                                                     |   |                                                    |        |                                    |   |   |   |
| Series                A, convertible, no par value; 90,909 shares authorized; - 0 - issued                and                outstanding at September 30, 2006 and 90,909 issued and outstanding                at                December 31, 2005 |   |                                                    | —     |                                    |   | 966,387 |   |
| Common                stock, $.0025 par value; authorized 50,000,000                shares; issued and outstanding:                                                                                                                                 |   |                                                    |        |                                    |   |   |   |
| 12,734,495                shares at September 30, 2006 and 10,267,045 shares at December 31,                2005                                                                                                                                    |   |                                                    | 31,836      |                                    |   | 25,667 |   |
| Additional                paid-in capital                                                                                                                                                                                                           |   |                                                    | 17,806,359  |                                    |   | 15,790,335 |   |
| Accumulated                deficit                                                                                                                                                                                                                  |   |                                                    | (13,557,203 | )                                       |   | (16,209,506 | ) |
|                                                                                                                                                                                                                                                |   |                                                    | 4,280,992   |                                    |   | 572,883 |   |
|                                                                                                                                                                                                                                                |   |                                                    |        |                                    |   |   |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                     |   | $                                                       | 5,073,693   |                                    | $      | 3,118,853 |   |

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**PACIFICHEALTH      LABORATORIES, INC.**

**STATEMENTS      OF OPERATIONS**

**FOR      THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND      2005**

**(UNAUDITED)**

|                                                                          |   | **Three                Months****Ended                September 30,** |       | **Nine                Months****Ended                September 30,** |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|------------|----------------------------------------------------------------------|--------|
|                                                                          |   | **2006**                                                              |       | **2005**                                                             |   | **2006** |   | **2005** |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |
| Revenues:                                                                     |   |                                                                  |       |                                                                 |   |   |   |   |   |
| Net                product sales                                              |   | $                                                                     | 1,774,130  |                                                                 | $      | 1,669,444 |   | $ | 5,096,732 |   | $ | 4,709,487 |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Cost                of goods sold                                             |   |                                                                  | 976,738    |                                                                 |   | 850,941 |   |   | 2,687,824 |   |   | 2,750,248 |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Gross                profit                                                   |   |                                                                  | 797,392    |                                                                 |   | 818,503 |   |   | 2,408,908 |   |   | 1,959,239 |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative expenses                   |   |                                                                  | 705,564    |                                                                 |   | 886,581 |   |   | 2,236,327 |   |   | 2,957,656 |   |
| Research                and development expenses                              |   |                                                                  | 53,916     |                                                                 |   | 43,037 |   |   | 141,400 |   |   | 162,155 |   |
| Depreciation                expense                                           |   |                                                                  | 14,329     |                                                                 |   | 16,121 |   |   | 43,281 |   |   | 48,424 |   |
|                                                                          |   |                                                                  | 773,809    |                                                                 |   | 945,739 |   |   | 2,421,008 |   |   | 3,168,235 |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                operating income (loss)                                    |   |                                                                  | 23,583     |                                                                 |   | (127,236 | ) |   | (12,100 | ) |   | (1,208,996 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                        |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Gain                on sale of patents/technology, net of expenses of $90,795 |   |                                                                  | —    |                                                                 |   | — |   |   | 3,909,205 |   |   | — |   |
| Interest                income                                                |   |                                                                  | 31,516     |                                                                 |   | 1,253 |   |   | 64,249 |   |   | 4,175 |   |
| Interest                expense                                               |   |                                                                  | (915       | )                                                                    |   | (28,976 | ) |   | (31,051 | ) |   | (76,719 | ) |
|                                                                          |   |                                                                  | 30,601     |                                                                 |   | (27,723 | ) |   | 3,942,403 |   |   | (72,544 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Income                (loss) before income taxes                              |   |                                                                  | 54,184     |                                                                 |   | (154,959 | ) |   | 3,930,303 |   |   | (1,281,540 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                     |   |                                                                  | —    |                                                                 |   | — |   |   | 1,278,000 |   |   | 2,115 |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                              |   |                                                                  | 54,184     |                                                                 |   | (154,959 | ) |   | 2,652,303 |   |   | (1,283,655 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Less                preferred dividends                                       |   |                                                                  | —    |                                                                 |   | (5,000 | ) |   | (10,425 | ) |   | (13,333 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Net                income (loss) applicable to common stockholders            |   | $                                                                     | 54,184     |                                                                 | $      | (159,959 | ) | $ | 2,641,878 |   | $ | (1,296,988 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Basic                income (loss) per share                                  |   | $                                                                     | 0.00       |                                                                 | $      | (0.02 | ) | $ | 0.23 |   | $ | (0.13 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Diluted                income (loss) per share                                |   | $                                                                     | 0.00       |                                                                 | $      | (0.02 | ) | $ | 0.20 |   | $ | (0.13 | ) |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares - Basic                         |   |                                                                  | 12,702,460 |                                                                 |   | 10,237,045 |   |   | 11,620,214 |   |   | 10,237,045 |   |
|                                                                          |   |                                                                  |       |                                                                 |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares - Diluted                       |   |                                                                  | 14,328,082 |                                                                 |   | 10,237,045 |   |   | 13,389,104 |   |   | 10,237,045 |   |

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**PACIFICHEALTH      LABORATORIES, INC.**

**STATEMENTS      OF CASH FLOWS**

**FOR      THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005**

**(UNAUDITED)**

|                                                                                                                                     |   | **2006** |       | **2005** |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|----------|--------|
| Cash                flows from operating activities:                                                                                     |   |     |       |     |   |
| Net                income (loss)                                                                                                         |   | $        | 2,652,303  |     | $      | (1,283,655 | ) |
| Adjustments                to reconcile net income (loss) to net cash used in operating                activities:                       |   |     |       |     |   |   |   |
| Depreciation                                                                                                                             |   |     | 43,281     |     |   | 48,424 |   |
| Allowance                for doubtful accounts                                                                                           |   |     | 9,000      |     |   | — |   |
| Equity                instrument based consulting expense                                                                                |   |     | 154,875    |     |   | 4,817 |   |
| 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 assets and liabilities:                                                                                        |   |     |       |     |   |   |   |
| Increase                in accounts receivable                                                                                           |   |     | (619,784   | )        |   | (189,136 | ) |
| Decrease                (increase) in inventories                                                                                        |   |     | 291,570    |     |   | (11,231 | ) |
| Decrease                in prepaid expenses                                                                                              |   |     | 17,403     |     |   | 107,646 |   |
| Increase                in deposits                                                                                                      |   |     | (20,591    | )        |   | (9,294 | ) |
| (Decrease)                increase in accounts payable/accrued expenses                                                                  |   |     | (1,147,323 | )        |   | 176,475 |   |
| (Decrease)                increase in deferred revenue                                                                                   |   |     | (8,927     | )        |   | 67,427 |   |
| Net                cash used in operating activities                                                                                     |   |     | (1,259,398 | )        |   | (1,088,527 | ) |
|                                                                                                                                     |   |     |       |     |   |   |   |
| Cash                flows from investing activities:                                                                                     |   |     |       |     |   |   |   |
| Purchase                of property and equipment                                                                                        |   |     | (55,003    | )        |   | (14,726 | ) |
| Proceeds                from sale of patents and technology, net of expenses of                $90,795                                   |   |     | 3,909,205  |     |   | — |   |
| Net                cash provided by (used in) investing activities                                                                       |   |     | 3,854,202  |     |   | (14,726 | ) |
|                                                                                                                                     |   |     |       |     |   |   |   |
| Cash                flows from financing activities:                                                                                     |   |     |       |     |   |   |   |
| Issuance                of notes payable                                                                                                 |   |     | 766,100    |     |   | 4,473,947 |   |
| Repayments                of notes payable                                                                                               |   |     | (863,119   | )        |   | (4,503,420 | ) |
| Repayments                of convertible notes payable                                                                                   |   |     | (500,000   | )        |   | — |   |
| Preferred                stock issued                                                                                                    |   |     | —    |     |   | 1,000,000 |   |
| Costs                associated with preferred stock issuance                                                                            |   |     | —    |     |   | (51,948 | ) |
| Proceeds                from issuance of convertible notes payable                                                                       |   |     |       |     |   | 500,000 |   |
| Proceeds                from common stock options/warrants exercised                                                                     |   |     | 900,930    |     |   | — |   |
| Net                cash provided by financing activities                                                                                 |   |     | 303,911    |     |   | 1,418,579 |   |
|                                                                                                                                     |   |     |       |     |   |   |   |
| Net                increase in cash and cash equivalents                                                                                 |   |     | 2,898,715  |     |   | 315,326 |   |
|                                                                                                                                     |   |     |       |     |   |   |   |
| Cash                and cash equivalents, beginning balance                                                                              |   |     | 138,487    |     |   | 25,832 |   |
|                                                                                                                                     |   |     |       |     |   |   |   |
| Cash                and cash equivalents, ending balance                                                                                 |   | $        | 3,037,202  |     | $      | 341,158 |   |
|                                                                                                                                     |   |     |       |     |   |   |   |
|                                                                                                                                     |   |     |       |     |   |   |   |
| Supplemental                disclosures of cash flow information:                                                                        |   |     |       |     |   |   |   |
| Cash                paid for interest                                                                                                    |   | $        | 31,051     |     | $      | 76,719 |   |
|                                                                                                                                     |   |     |       |     |   |   |   |
| 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    |     | $      | — |   |

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**PACIFICHEALTH      LABORATORIES, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**FOR      THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND      2005**

**(UNAUDITED)**

**1.      Basis of Presentation**

**2.      Revenue Recognition**

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**3.      Inventories**

|                                         |   | **Sept.                30, 2006****(Unaudited)** |      | **December                31, 2005** |   |
|----------------------------------------------|--------|--------------------------------------------------|-----------|--------------------------------------|--------|
| Raw                materials                 |   | $                                                | 107,109   |                                 | $      | 102,587 |   |
| Work                in process               |   |                                             | —   |                                 |   | 8,847 |   |
| Packaging                supplies            |   |                                             | 47,480    |                                 |   | 46,880 |   |
| Finished                goods                |   |                                             | 717,127   |                                 |   | 989,814 |   |
| Finished                goods on consignment |   |                                             | 146,493   |                                 |   | 161,651 |   |
|                                         |   | $                                                | 1,018,209 |                                 | $      | 1,309,779 |   |

**4.      Stock Based Compensation**

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| **Options**                                        |   | **Shares** |      | **Weighted-****Average****Exercise****Price** |   | **Weighted-****Average****Remaining****Contractual****Term                (Years)** |   | **Aggregate****Intrinsic****Value** |   |
|----------------------------------------------------|--------|------------|-----------|-----------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
| **Balance,                January 1, 2006**        |   |       | 1,970,000 |                                          | $      | 1.11                                                                                |   |                                |   |   |   |   |   |
| Granted                during the period           |   |       | 508,000   |                                          | $      | 0.56                                                                                |   |                                |   |   |   |   |   |
| Exercised                during the period         |   |       | (648,000  | )                                             | $      | 0.46                                                                                |   |                                |   |   |   |   |   |
| Expired                during the period           |   |       | (213,500  | )                                             | $      | 1.50                                                                                |   |                                |   |   |   |   |   |
| **Outstanding,                September 30, 2006** |   |       | 1,616,500 |                                          | $      | 1.14                                                                                |   |                                | 2.93   |   | $ | 1,028,140 |   |
| **Exercisable,                September 30, 2006** |   |       | 1,053,500 |                                          | $      | 1.44                                                                                |   |                                | 2.24   |   | $ | 530,680 |   |

|                                       |   | **Sept.                30, 2006** |      |
|--------------------------------------------|--------|-----------------------------------|-----------|
| Expected                volatility         |   |                              | 102-111   | % |
| Weighted-average                volatility |   |                              | 106       | % |
| Expected                dividends          |   |                              | 0.0       | % |
| Expected                term (in years)    |   |                              | 5         |   |
| Risk-free                rate              |   |                              | 4.35-5.09 | % |

|                                                                                                                                  |   | **Three                Months****Ended****Sept.                30, 2005** |     | **Nine                Months****Ended****Sept.                30, 2005** |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|----------|--------------------------------------------------------------------------|--------|
| Reported                net loss                                                                                                      |   | $                                                                         | (154,959 | )                                                                        | $      | (1,283,655 | ) |
| Total                stock-based employee compensation expense determined under fair                value-based method for all awards |   |                                                                      | (37,500  | )                                                                        |   | (117,727 | ) |
|                                                                                                                                  |   |                                                                      |     |                                                                     |   |   |   |
| Pro                forma net loss                                                                                                     |   | $                                                                         | (192,459 | )                                                                        | $      | (1,401,382 | ) |
|                                                                                                                                  |   |                                                                      |     |                                                                     |   |   |   |
| Basic                and diluted loss per share:                                                                                      |   |                                                                      |     |                                                                     |   |   |   |
| As                reported                                                                                                            |   |                                                                      | ($0.02   | )                                                                        |   | ($0.13 | ) |
| Pro                forma                                                                                                              |   |                                                                      | ($0.02   | )                                                                        |   | ($0.14 | ) |

**5.      Income Taxes**

----

**6.      Notes Payable**

**7.      Concentration**

**8.      Equity Instruments**

**9.      Convertible Notes Payable**

**10.      Litigation Settlement**

----

**11.      Recently Issued Accounting Pronouncements**

----

| **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**

----

**Post-Surgical      Muscle Recovery**

**Oral      Rehydration**

**ACTIVATION      OF SATIETY PEPTIDES**

**Weight      Loss**

----

**Type      II Diabetes**

**(b)      Results of Operations **
** Three and Nine Months Ended September      30, 2006 and 2005**

*)*

----

**(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**

**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)                                                                                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)I                 |   | 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/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)                                                                                                                                                                                                                                                                                                                                                                          |

----

| **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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**

|   |                                                                                                             |                               |
|--------|------------------------------------------------------------------------------------------------------------------|------------------------------------|
|   | **PACIFICHEALTH              LABORATORIES, INC.**                                                                |
|   |                                                                                                        |                          |
|   | By:                                                                                                    | /s/              STEPHEN P. KUCHEN |
|   | STEPHEN P. KUCHEN                                                                                                |
|   | Chief              Financial Officer (Principal Financial Officer and Principal Accounting              Officer) |
|   |                                                                                                             |
|   | Date:              November 3, 2006                                                                              |
|  |  |   |   |  |
|--|--|--------|--------|--|

----

**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. |

----