0


UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549








FORM
10-Q








QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(D) OF


THE
SECURITIES EXCHANGE ACT OF 1934





FOR
THE QUARTER ENDED SEPTEMBER 30, 2008





Commission
File No. 000-52771








PURAMED
BIOSCIENCE, INC.


(Exact
name of registrant as specified in its charter)





Minnesota
            
            20-5510104(State
      or other jurisdiction of Incorporation or organization)
            
            (IRS
      Employer ID Number)





1326
      Schofield Avenue
              Schofield,
      WI
            
            54476(Address
      of principal executive offices)
            
            (Zip
      Code)





(715)
359-6373


(Registrant’s
telephone number)








Check
whether the Issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.  YES [ü] NO [ ]





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See definitions of “large accelerated filer,” “accelerated
filer” and “smaller reporting company” in Rule12b-2 of the Exchange Act. (Check
one):





Large
accelerated filer [
]                                           Accelerated
filer [
]                                           Non-accelerated
filer [
]                                           Smaller
reporting company [ü]





Indicate
by checkmark whether registrant is a shell company. [ ]





There
were 6,125,345 shares of Common Stock outstanding as of November 1,
2008.





1


TABLE
OF CONTENTS







PART I – FINANCIAL
INFORMATION                                                                                                                                                                                                  
3







Item 1.  CONDENSED
FINANCIAL
STATEMENTS                                                                                                                                                                     
3





Condensed Balance
Sheets                                                                                                                                                                                                            
4


Unaudited Condensed
Statements of
Operations                                                                                                                                                                      
5





Unaudited Condensed
Statements of Cash
Flows                                                                                                                                                                     
6





Notes toCondensedUnaudited Financial
Statements                                                                                                                                                             
7





Item
2.  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF
OPERATIONS                                     
9





Item 3. Quantitative and
Qualitative Disclosures about Market
Risk                                                                                                                              14





Item 4.Controls and
Procedures                                                                                                                                                                                                   
15







PART II.  OTHER
INFORMATION                                                                                                                                                                                                           
15







Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds                                                                                                                              
15





Item 5.  Other
Information                                                                                                                                                                                                               
15





Item
6.  Exhibits                                                                                                                                                                                                                                     15





2




PART I –
FINANCIAL INFORMATION







Item
1.  CONDENSED FINANCIAL STATEMENTS







3





PURAMED
BIOSCIENCE, INC.


(A
Development Stage Company)




Condensed
Balance Sheets





September
      30,
                    
                    June
      30,2008
                    
                    2008(Unaudited)
                    
                    (Audited)ASSETSCurrent
      AssetsCash
                    
                    $
                    3,330
                    
                    $
                    1,278Prepaid
      Expenses
                    
                    
                    4,999
                    
                    
                    5,099Total
      Current Assets
                    
                    
                    8,329
                    
                    
                    6,377Property
      and EquipmentComputer
      Software
                    
                    
                    1,218
                    
                    
                    1,217Accumulated
      Depreciation - Computer Software
                    
                    
                    (597)
                    
                    
                    (495)Net
      Property and Equipment
                    
                    
                    621
                    
                    
                    722Other
      AssetsPuraMed
      Bioscience Products, net of accumulatedamortization
      of $70,396 and $58,394, respectively
                    
                    
                    265,636
                    
                    
                    277,637Trademarks
                    
                    
                    6,683
                    
                    
                    5,401Patent
                    
                    
                    13,608
                    
                    
                    3,374Total
      Other Assets
                    
                    
                    285,927
                    
                    
                    286,412Total
      Assets
                    
                    $
                    294,877
                    
                    $
                    293,511LIABILITIES AND STOCKHOLDERS'
      EQUITYCurrent
      LiabilitiesAccounts
      Payable
                    
                    $
                    26,666
                    
                    $
                    4,165Accounts
      Payable - Related party
                    
                    
                    -
                    
                    
                    233Accrued
      Wages - Officers'
                    
                    
                    104,212
                    
                    
                    52,540Accrued
      Expenses
                    
                    
                    10,722
                    
                    
                    10,965Notes
      Payable - Officers'
                    
                    
                    121,085
                    
                    
                    77,085Total
      Current Liabilities
                    
                    
                    262,685
                    
                    
                    144,988Total
      Liabilities
                    
                    
                    262,685
                    
                    
                    144,988Stockholders'
      EquityUndesignated
      shares, 5,000,000 shares authorized, none issued
                    
                    
                    -
                    
                    
                    -Common
      Stock, $.001 par value, 45,000,000 sharesauthorized,
      6,125,345 shares and 6,015,345 shares issuedand
      outstanding, respectively
                    
                    
                    6,125
                    
                    
                    6,015Additional
      paid in capital
                    
                    
                    745,768
                    
                    
                    712,878Deficit
      accumulated during the development stage
                    
                    
                    (719,701)
                    
                    
                    (570,370)Total
      Stockholders' Equity
                    
                    
                    32,192
                    
                    
                    148,523Total
      Liabilities & Stockholders' Equity
                    
                    $
                    294,877
                    
                    $
                    293,511See
      notes to unaudited condensed financial
  statements.











4





PURAMED
BIOSCIENCE, INC.


(A
Development Stage Company)




Unaudited
Condensed Statements of Operations








Period
      from May 9,Three
      months ended September 30,
                                                    
                                                    2006
      (inception) to2008
                                                    
                                                    2007
                                                    
                                                    September
      30, 2008RevenuesTotal
      Revenues
                                                    
                                                    $
                                                    -
                                                    
                                                    $
                                                    -
                                                    
                                                    $
                                                    -Cost
      of Sales
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    -Total
      Cost of Sales
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    -Gross
      Profit
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    -Operating
      ExpensesSelling,
      general and administrative expenses
                                                    
                                                    
                                                    15,117
                                                    
                                                    
                                                    12,228
                                                    
                                                    
                                                    111,861Amortization
      and depreciation expense
                                                    
                                                    
                                                    12,103
                                                    
                                                    
                                                    12,103
                                                    
                                                    
                                                    70,993Audit
      fees
                                                    
                                                    
                                                    15,636
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    15,636Consulting
      fees
                                                    
                                                    
                                                    39,525
                                                    
                                                    
                                                    70,808
                                                    
                                                    
                                                    292,172Research
      and development
                                                    
                                                    
                                                    172
                                                    
                                                    
                                                    10,049
                                                    
                                                    
                                                    65,150Salaries
                                                    
                                                    
                                                    17,739
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    65,829Officers'
      salaries
                                                    
                                                    
                                                    48,000
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    96,000Total
      Operating Expenses
                                                    
                                                    
                                                    148,292
                                                    
                                                    
                                                    105,188
                                                    
                                                    
                                                    717,641Loss
      from Operations
                                                    
                                                    
                                                    (148,292)
                                                    
                                                    
                                                    (105,188)
                                                    
                                                    
                                                    (717,641)Other
      ExpenseInterest
      expense
                                                    
                                                    
                                                    1,039
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    2,060Total
      Other Expense
                                                    
                                                    
                                                    (1,039)
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    (2,060)Net
      Loss
                                                    
                                                    $
                                                    (149,331)
                                                    
                                                    $
                                                    (105,188)
                                                    
                                                    $
                                                    (719,701)Loss
      per Common Share - Basic and Diluted
                                                    
                                                    $
                                                    (0.02)
                                                    
                                                    $
                                                    (0.02)Average
      number of  common sharesoutstanding
      basic and diluted
                                                    
                                                    
                                                    6,033,280
                                                    
                                                    
                                                    5,028,689See
      notes to unaudited condensed financial
  statements.





5





PURAMED
BIOSCIENCE, INC.


(A
Development Stage Company)




Unaudited
Condensed Statements of Cash Flows


Period
      from May 9,Three
      months ended September 30,
                                                                                
                                                                                2006
      (inception) to2008
                                                                                
                                                                                2007
                                                                                
                                                                                September
      30, 2008Cash
      Flows from operating activitiesNet
      Loss
                                                                                
                                                                                $
                                                                                (149,331)
                                                                                
                                                                                $
                                                                                (105,188)
                                                                                
                                                                                $
                                                                                (719,701)Changes
      on non cash working capital items:Stock
      issued for services
                                                                                
                                                                                
                                                                                33,000
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                75,000Non
      cash consulting expense
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                92,000Depreciation
                                                                                
                                                                                
                                                                                102
                                                                                
                                                                                
                                                                                102
                                                                                
                                                                                
                                                                                597Amortization
                                                                                
                                                                                
                                                                                12,001
                                                                                
                                                                                
                                                                                12,001
                                                                                
                                                                                
                                                                                70,395Changes
      in operating assets and liabilities:Prepaid
      Expenses
                                                                                
                                                                                
                                                                                100
                                                                                
                                                                                
                                                                                1,632
                                                                                
                                                                                
                                                                                (4,999)Accounts
      Payable - Related party
                                                                                
                                                                                
                                                                                (233)
                                                                                
                                                                                
                                                                                29,829
                                                                                
                                                                                
                                                                                -Accounts
      Payable
                                                                                
                                                                                
                                                                                22,500
                                                                                
                                                                                
                                                                                698
                                                                                
                                                                                
                                                                                26,665Accrued
      Wages - Officers
                                                                                
                                                                                
                                                                                51,672
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                104,212Accrued
      Expenses
                                                                                
                                                                                
                                                                                (243)
                                                                                
                                                                                
                                                                                972
                                                                                
                                                                                
                                                                                10,722Net
      cash used for operating activities
                                                                                
                                                                                
                                                                                (30,432)
                                                                                
                                                                                
                                                                                (59,954)
                                                                                
                                                                                
                                                                                (345,109)Cash
      Flows from investing activitiesPatent
      acquisition costs
                                                                                
                                                                                
                                                                                (10,234)
                                                                                
                                                                                
                                                                                (3,374)
                                                                                
                                                                                
                                                                                (13,608)Purchase
      of property and equipment
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                (1,217)Trademark
      acquisition costs
                                                                                
                                                                                
                                                                                (1,282)
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                (6,683)Net
      cash used for investing activities
                                                                                
                                                                                
                                                                                (11,516)
                                                                                
                                                                                
                                                                                (3,374)
                                                                                
                                                                                
                                                                                (21,508)Cash
      Flows from financing activitiesLoans
      from officers
                                                                                
                                                                                
                                                                                44,000
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                121,085Proceeds
      from spin off
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                174,393Proceeds
      from equity investee
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                74,469Net
      cash provided by financing activities
                                                                                
                                                                                
                                                                                44,000
                                                                                
                                                                                
                                                                                -
                                                                                
                                                                                
                                                                                369,947Net
      (decrease) increase in cash
                                                                                
                                                                                
                                                                                2,052
                                                                                
                                                                                
                                                                                (63,328)
                                                                                
                                                                                
                                                                                3,330Cash
      at Beginning of Period
                                                                                
                                                                                
                                                                                1,278
                                                                                
                                                                                
                                                                                97,173
                                                                                
                                                                                
                                                                                -Cash
      at End of Period
                                                                                
                                                                                $
                                                                                3,330
                                                                                
                                                                                $
                                                                                33,845
                                                                                
                                                                                $
                                                                                3,330Supplemental
      disclosures of noncash investing andfinancing
      activities and other cash flow information:Assets
      acquired in connection with spin off
                                                                                
                                                                                $
                                                                                -
                                                                                
                                                                                $
                                                                                -
                                                                                
                                                                                $
                                                                                217,687Stock
      issued for acquisition of assets
                                                                                
                                                                                $
                                                                                -
                                                                                
                                                                                $
                                                                                -
                                                                                
                                                                                $
                                                                                174,393Interest
      paid
                                                                                
                                                                                $
                                                                                -
                                                                                
                                                                                $
                                                                                -
                                                                                
                                                                                $
                                                                                135See
      notes to unaudited condensed financial
  statements.







6


PURAMED
BIOSCIENCE, INC.


(A
Development Stage Company)


Notes to
Condensed Unaudited Financial Statements








A.  Basis
of Presentation





The
condensed balance sheet as of September 30, 2008, the condensed statements of
operations for the three month periods ended September 30, 2008 and 2007 and the
condensed statements of cash flows for the three month periods ended September
30, 2008 and 2007 have been prepared by PuraMed Bioscience, Inc. (the "Company")
without audit.  In the opinion of management, all adjustments
(consisting only of normal recurring accruals) necessary to present fairly the
financial position, results of operations and cash flows as of September 30,
2008 and for the three month period ended September 30, 2008 and 2007 presented
herein have been made.





Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted.  These
financial statements should be read in conjunction with the Company's financial
statements and notes thereto for the fiscal year ended June 30, 2008 included in
the Annual Report on Form 10-K of the Company filed with the SEC on September 5,
2008.





B.  Going
Concern





At
September 30, 2008, the Company had negative working capital of $254,356 and
thus has none of the funds needed to accomplish its planned business strategy or
support its projected expenses.  The Company plans to obtain the
needed working capital primarily through sales of both equity and debt
securities, which there is no assurance it will be able to
accomplish.  If the Company cannot obtain substantial working capital
through common stock sales or other sources (if any), it will be forced to
curtail its planned business operations.  If the Company is unable to
obtain additional financing, its ability to continue as a going concern is
doubtful.





C.  Accounting
Policies





Loss per
common share - Basic loss per common share is computed by dividing net loss by
the weighted average number of common shares outstanding.  Diluted
loss per common share assumes the exercise of stock options and warrants using
the treasury stock method, if dilutive.





D.  Related
Party Transactions





In April
2007, the Company entered into consulting agreements with Messrs. Mitchell and
Higgins.  Under the terms of the agreements, the Company pays Messrs.
Mitchell and Higgins each $8,000 monthly for a period of twelve
months.  Either party may terminate the agreements for any reason at
any time.  As of December 31, 2007 the agreements were terminated and
on March 10, 2008, the officers agreed to forgive the amounts owed to them which
totaled $92,000.  This $92,000 in consulting services was treated as
additional paid-in capital contributed by the officers.  In addition,
for the first quarter of 2008, the officers have elected not to receive a
salary.





From
November 2007 through September 2008, Russell Mitchell, a principal stockholder,
loaned the Company a total of $50,085 for working capital purposes, for which he
received a promissory note bearing an interest rate of 4% and is payable on
demand.





From
January 2008 through September 2008, James Higgins, a principal stockholder,
loaned the Company a total of $71,000 for working capital purposes, for which he
received a promissory note bearing an interest rate of 4% and is payable on
demand.








7


PURAMED
BIOSCIENCE, INC.


(A
Development Stage Company)


Notes to
Condensed Unaudited Financial Statements








D.  Related
Party Transactions (Continued)





Prior to
calendar year 2008, the Company reimbursed Accelerated Drug Delivery, LLC (ADD),
a company owned by Messrs. Mitchell and Higgins, monthly for salaries incurred
by ADD, LLC's office manager and controller.  As of January 1, 2008,
all payroll salaries are paid by PuraMed rather than outsourcing through
ADD.





E.  Stockholder's
Equity





In May
2008, the Company issued common stock for services to its employees and certain
contractors.  There were a total of 400,000 common shares issued
valued at $12,000.





In
September 2008, the Company issued 110,000 shares of common stock for services
related to establishing a trading market for our common stock.





F.  Subsequent
Events





During
October 2008, officers loaned the Company an additional $7,000, which is payable
on demand.


8


Item
2.                      MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL


CONDITION AND RESULTS OF
OPERATIONS





The
following discussion should be read and considered along with our condensed
financial statements and related notes included in this 10-Q.  These
financial statements were prepared in accordance with United States Generally
Accepted Accounting Principles (U.S. GAAP).  This discussion and
analysis contains forward-looking statements that involve risks, uncertainties
and assumptions.  Our actual results may differ substantially from
those anticipated in these forward-looking statements as a result of various
factors including those set forth in the “Risk Factors” section of our Form 10-K
filing for fiscal year ending June 30, 2008 filed with the SEC on September 5,
2008.





Background





PuraMed
BioScience, Inc. (“PuraMed” or the “Company”) was incorporated in Minnesota on
May 9, 2006 as a wholly-owned subsidiary of Wind Energy America, Inc. (formerly
“Dotronix, Inc.”) for the purpose of engaging in the business of developing and
marketing non-prescription over-the-counter healthcare products to remedy
various ailments.





In late
2006, PuraMed’s former parent company decided to spin off its PuraMed subsidiary
and related healthcare products business. Accordingly, on April 12, 2007, Wind
Energy America, Inc. affected a spin-off of PuraMed to stockholders of Wind
Energy America, Inc. on a pro rata dividend basis of one common share of PuraMed
for each five common shares of Wind Energy America, Inc. Since the April 12,
2007 effective date of the spin-off, PuraMed and Wind Energy America, Inc. have
operated separately, with their respective managements, businesses, assets and
capital structures being completely independent from each other.





The
actual distribution date for PuraMed stock from this spin-off could not occur
until after our Form 10-SB Registration Statement of PuraMed became effective
with the Securities and Exchange Commission (SEC).  Our Form 10-SB
registration is now effective and on February 22, 2008, the company started the
distribution process of common stock related to the spin-off.





Detailed
information regarding this spin-off of PuraMed from Wind Energy America, Inc.
(formerly Dotronix, Inc.) is contained in a Form 8-K and exhibit thereto which
were filed with the SEC April 10, 2007, and can be readily accessed at the SEC
website www.sec.gov.





Overview of
Business





The
Company is engaged in the business of developing and marketing a line of
non-prescription medicinal or healthcare products to be marketed through various
retail channels under the LipiGesicTM brand and trademark.  In an
effort to add continuity to all of the PuraMed BioscienceTM products the Company
trademarked the brand name LipiGesicTM.  The Company has recently
completed all product development and design packaging for its initial two
products, LipiGesicTM M (Migraine) and LipiGesicTM PM (Sleep), and expects to
begin their commercial introduction to the marketplace by the first quarter of
calendar year 2009.





Product
development and design packaging of all PuraMed products have been conducted
entirely by the Company’s two principal officers, Russell Mitchell and James
Higgins.  Messrs. Mitchell and Higgins have extensive and lengthy
experience in new product development and marketing of non-prescription medical
products and nutritional supplements and the many varied promotional activities
involved in their marketing rollouts. For example, Mitchell Health Technologies
served as the master broker for the launch of Quigley Corp’s “Cold-Eeze”
treatment for common colds, which within 18 months exceeded $70 million in
annual wholesale revenues. The Company considers the long and successful
professional involvement of its management team in our industry to be a valuable
asset to draw upon to achieve the future growth and profitability anticipated by
the Company.





The
Company intends to enter the OTC healthcare products marketplace by employing
“direct to consumer” marketing via print and television commercials followed by
broad retail distribution through mainstream mass merchandisers, drug stores and
food chains. PuraMed is currently undergoing substantial activities directed
toward its initial commercial launch of LipiGesicTM brand products.





The
Company also intends to continue to develop and grow its intellectual property
portfolio which is expected to substantially enhance stockholder
value.  Our scientific team has gained significant and exciting
evidence from its initial research and management expects to develop a new
generation of botanically derived anti-inflammatory and pain management products
with broad applications.





9


LipiGesicTM
M





LipiGesicTM
M provides acute relief from migraine headaches, and contains the herbs feverfew
and ginger as principal ingredients. PuraMed believes that its specific
formulation of these herbs for its migraine remedy is unique and proprietary,
providing relief from these severe headaches in minutes. The Company believes it
will capture a material segment of the huge migraine headache remedy market. We
believe that Americans spend in excess of $6 billion annually on headache pain
relievers, and that over half of sufferers of migraine headaches rely
exclusively on non-prescription medications.





We
believe that at least 30 million Americans suffer from chronic migraine
headaches with over 20 million of them having “severe” migraine conditions. Thus
migraine headaches constitute a severe and disabling condition for millions of
people. We further believe that the economic burden alone to the U.S. economy is
in excess of $20 billion annually.





LipiGesicTM
M is effective, available as a non-prescription remedy, without any known side
effects, and affordable compared to more expensive migraine drugs based on
prescription chemical formulations.





LipiGesicTM
PM





LipiGesicTM
PM is a new class of non-prescription sleep aid without any known side effects,
and contains a proprietary blend of natural ingredients including Valerian, St.
John’s Wort, and Chamomile. We believe that the proprietary blend of these
ingredients provides an effective remedy for insomnia and other sleep disorders.
The sleep aid market features products based primarily on chemical
antihistamines.





Accordingly,
the LipiGesicTM PM product provides a wide open market opportunity for an
effective, natural alternative to prescription medications, which are somewhat
addictive and often cause withdrawal symptoms and other side
effects.  We have priced LipiGesicTM PM as a premium sleep aid product,
which provides us with a projected gross margin of approximately 80%. This large
margin should leave us substantial room for ample introductory promotion,
product allowances and other incentives conducive to achieving rapid market
penetration.





Similar
to the migraine remedy market, the market for sleep aid products represents a
very large segment of the overall healthcare products marketplace. We believe
that over half of all adults in the U.S. suffer from sleep disorders, and that
many of them experience persistent insomnia. The National Center on Sleep
Disorders has reported that there are as many as 70 million problem sleepers in
the U.S. with many of them suffering from chronic sleep disorders. We believe
that insomnia is second only to pain as a healthcare complaint.





Future LipiGesicTM
Products





We have
completed development of additional non-prescription products, which we intend
to launch commercially over the next couple years after establishing a solid
market for our initial two products. These other PuraMed products
include:





LipiGesicTM H – provides
relief for common tension headaches which afflict a majority of American adults
from time to time. This remedy provides headache relief features a unique
proprietary formulation of St. John’s Wort and common aspirin.





LipiGesicTM Smoker’s Pal –provides relief from the symptoms associated with nicotine withdrawal
with the added benefit of an appetite suppressant.





LipiGesicTM RLS– provides
relief of problematic leg cramps associated with Restless Leg Syndrome affecting
a large segment of the population in the U.S.





LipiGesicTM  GI –
provides relief of symptoms associated with nighttime reflux
disorders.





LipiGesicTM CS – provides fast
relief for canker sore outbreaks.





When
introduced commercially, these other products will be packaged and branded much
like the initial LipiGesicTM products, since we intend to devote substantial
efforts and resources toward gaining a favorable and consistent brand and
packaging for all PuraMed products to attempt to make them instantly
recognizable on retail store shelves.





10


Sublingual Delivery
System





The
LipiGesicTM M, LipiGesicTM PM and LipiGesicTM H are non-prescription, liquid
medications that will be absorbed under-the tongue known as “sublingual.” The
use of sublingual delivery provides fast relief for whatever ailment or
condition is being treated. Unlike the majority of pills and medications
absorbed through the stomach directly, PuraMed products are placed and absorbed
directly under the tongue. Advantages of sublingual dispensing of drugs and
medications include faster acting absorption for quick relief, improved
efficacy, less stomach upset, and fewer side effects.





PuraMed
has secured reliable contract manufacturers to produce and package PuraMed
products in easy-to-use, sublingual dispensers.  These selected
contractors are experienced in the production and packaging of this type of
dispenser. PuraMed believes that its benchmark use of sublingual dispensers will
distinguish its products favorably in comparison to most competing OTC products
now in the marketplace.





Regulation of PuraMed
Products





Unlike
prescription drugs or medications, non-prescription healthcare remedies such as
PuraMed products do not require FDA approval prior to entering the market. They
are nonetheless subject to substantial FDA and other federal regulations
governing their use, labeling, advertising, manufacturing and ingredients.
PuraMed believes that its current and proposed development, formulation,
marketing and other practices and procedures will comply fully with all
governmental regulations applicable to PuraMed Products.





Business
Structure





PuraMed
will function primarily as a research and development, marketing and sales
organization. Product manufacturing, packaging, product fulfillment and other
operations will be outsourced to experienced and reliable third parties through
contracts controlled by PuraMed. PuraMed believes this structure will reduce
significantly the development stage costs and development time related to
launching each PuraMed product commercially.





Product
Manufacturing





Production
and packaging of PuraMed products will be outsourced to various contract
manufacturers known by PuraMed’s management from prior substantial business and
contract dealings. Due to the business and contacts developed by PuraMed
management over the past years with leading contract manufacturers, PuraMed is
convinced it can obtain professional and timely production, packaging and
delivery of all PuraMed products.





Sales and
Marketing





PuraMed
intends to launch its initial two products commercially through the following
three-phase process:





Phase One
Rollout:  Direct Response. A series of print advertisements
will be published nationally in secondary market newspapers, which initial ads
will allow PuraMed to test and refine our advertising message. After refining
this initial advertising and identifying primary customer bases, PuraMed will
create and have broadcasted television infomercials as well as standard TV
commercials. PuraMed will also employ website and toll-free telephone access in
conjunction with its print and TV direct response campaigns. PuraMed anticipates
beginning its Phase One Rollout during the first quarter of calendar year
2009.





Phase Two
Rollout:  Retail Drugstores. PuraMed expects to develop
substantial product sales and a defined customer base from its direct response
marketing phase by the summer of 2009. It will then begin marketing through
approximately 18,000 retail drugstores already targeted by PuraMed, including
Walgreens, Rite Aid, CVS and others. Due to PuraMed’s management having
extensive and good relationships with targeted retail outlets for PuraMed
products, PuraMed believes it has the ability to place its products on the shelf
in all its targeted retail outlets.





Phase Three
Rollout:  Further Retail Outlets. A few months after beginning
the Phase Two Rollout, PuraMed will launch Phase Three which will consist of
placing PuraMed products in a further approximately 21,000 targeted retail
outlets including mass merchandisers such as Wal-Mart and Target, food store
chains such as SuperValu, Kroger and Safeway, and additional well-known regional
drugstores.





PuraMed
has selected its targeted retailers according to various material criteria,
including cost of entry, geography, demographics and consumer
preference.


11


After
achieving initial distribution for PuraMed products, PuraMed will initiate a
comprehensive and ongoing promotional campaign directed toward consumer groups
it has identified from its product rollouts.





Results of
Operations





Revenues





Since our
2006 inception, we have generated no revenues.





Operating
Expenses





From our
inception in May 2006, through September 30, 2008, we have incurred total
operating expenses of $717,641 including $111,861 of selling, general and
administrative expenses, $70,993 of amortization and depreciation expenses,
$15,636 of audit fees, $292,172 of consulting expenses, $65,150 of research and
development expenses, $65,829 of salaries and $96,000 of officers’
salaries.





Selling,
general and administrative expenses consist primarily of payroll taxes, health
insurance, facility rent and administrative overhead costs.





Amortization
and depreciation expenses consist primarily of amortization of our intellectual
property received during our spin-off from our parent company in April
2007.





Audit
fees consist of three quarterly reviews and our annual audit required for our
SEC filings.





Consulting
fees include salaries paid to our management and salaries outsourced for
accounting and administrative personnel prior to January 1, 2008, and payments
for services related to being a public company.





Research
and development expenses consist primarily of product and packaging development
and marketing strategy costs.





Salaries
include payments to our office manager and corporate controller as of January 1,
2008.





Officers’
salaries include payroll to our Chief Executive Officer and our Chief Financial
Officer as of January 1, 2008.





Comparison of Operations for
Three Months Ended September 30, 2008 and 2007





Revenue





There
were no revenues for the three months ended September 30, 2008 and
2007.





Selling,
General and Administrative Expenses





Selling,
general and administrative expenses for the three months ended September 30,
2008 were $15,117 compared to $12,228 for the three months ended September 30,
2007.  Increased selling, general and administrative expenses for the
2008 period compared to 2007 were due primarily to payroll tax and health
insurance benefits paid since the company starting funding the payroll function
as of January 1, 2008.





Amortization
and Depreciation





Amortization
and depreciation expenses for the three months ended September 30, 2008 and 2007
were the same at $12,103 for each quarterly period.  No additional
intellectual property has been acquired; therefore, there has been no change in
our monthly amortization expense.





Audit
Fees





Audit
fees for the three months ended September 30, 2008 were $15,636 compared to $0
for the three months ended September 30, 2007.  The increase in this
expense is due to operating and incurring audit expenses as a separate entity
since the spin-off from our parent company in April 2007.





12


Consulting
Fees





Consulting
fees for the three months ended September 30, 2008 were $39,525 compared to
$70,808 for the three months ended September 30, 2007 which decrease was due to
the Company terminating its consulting agreements with its two officers and
reclassifying their monthly salaries.





Research
and Development Expenses





Research
and development expenses for the three months ended September 30, 2008 were $172
compared to $10,049 for the three months ended September 30,
2007.  Decreased research and development expenses were due to limited
cash flow.





Salaries





Salaries
for the three months ended September 30, 2008 were $17,739 compared to $0 for
the three months ended September 30, 2007.  Increased salaries are due
to the Company funding the payroll function as of January 1, 2008, rather than
outsourcing through a third party.





Officers’
Salaries





Officer
salaries for the three months ended September 30, 2008 were $48,000 compared to
$0 for the three months ended September 30, 2007.  Increased officer
salaries are due to the Company terminating its consulting agreements with its
two officers and commencing monthly salaries to each of them as of April 1,
2008.





Net
Losses





Net
losses for the three months ended September 30, 2008 were $149,331 compared to
$105,188 for the three months ended September 30, 2007.  These
increased losses were due primarily to operating and incurring audit expenses as
a separate entity since the spin-off from our parent company in April 2007 and
increased consulting expenses.





Financial Condition,
Liquidity and Capital Resources





As of
September 30, 2008, the Company had limited cash of $3,330 and a working capital
deficit of $254,356 of which $225,297 is attributed to accrued executive
salaries and executive note payables.  During January 2008 through
September 30, 2008, Mr. Mitchell loaned the Company $50,085 and Mr. Higgins
loaned the Company $71,000 to cover monthly overhead costs.  Both loan
amounts are to be paid back on demand.  Mr. Mitchell and Mr. Higgins
will continue to loan the Company funds as needed until we obtain anticipated
capital from sales of our equity and debt securities.





We intend
to raise the funds needed to implement our plan of operation through both
private sales of debt and equity securities. There is no assurance, however,
that we will be successful in raising the necessary capital to implement our
business plan, either through debt or equity sources.





PuraMed’s
current business strategy is to complete development and promotion of its
initial non-prescription consumer healthcare products in order to commence their
commercial retail introduction by 3rd quarter of fiscal year
2009.  PuraMed’s primary goal is to achieve continual material growth
of LipiGesicTM product sales through mainstream food, drug, and mass merchandiser
retail channels while at the same time promoting LipiGesicTM brand awareness to
realize substantial profitability as soon as possible. To implement this
strategy, PuraMed intends to execute the following activities during the next
twelve months:





Commercialize PuraMed
Products – PuraMed’s primary focus for the remainder of calendar year
2008 will be to work with established, responsible outsourced production,
packaging and fulfillment suppliers and reliable marketing channels in order to
produce and market initial PuraMed products on a commercial scale. PuraMed has
obtained all vendors, suppliers and subcontract third parties needed for its
planned production, packaging and raw material, and will continue to identify
and obtain alternate sources for PuraMed product inventories.





Expansion of Sales and Marketing
Activities – PuraMed will continue to expand upon its marketing
activities which have been focused toward obtaining a nationwide network of
retail outlets and employing “direct to consumer” media advertising for its
planned product sales, as well as promoting and building LipiGesicTM brand
awareness. PuraMed will participate in industry trade shows and similar events,
and also will engage in substantial media advertising and direct sales media
campaigns to attract and secure consumers for PuraMed products.


13


Continuation of Product
Development – Besides its already developed products, PuraMed will
complete development and testing of additional non-prescription drugs and
nutritional supplements to be commercially launched in the future as additional
LipiGesicTM products.





PuraMed
anticipates spending approximately $2.5 million over the next twelve months
regardless of any amounts of revenues it generates from product sales during
this period:





Sales
      and marketing expenses
            
            $
            1,280,000Purchase
      of inventory, packaging and raw materials
            
            
            600,000Research
      and development activities
            
            
            175,000General
      and administrative expenses including rent,fixed
      overhead and management compensation
            
            
            445,000$
            2,500,000





Critical Accounting
Policies





The
discussion in this Plan of Operation should be considered in conjunction with
our unaudited condensed financial statements and related notes included in this
quarterly report.  These financial statements have been prepared in
accordance with United States Generally Accepted Accounting Principles (US
GAAP).





The
preparation of our financial statements requires us to make estimates and
judgments affecting our reported amounts of assets, liabilities, revenues and
expenses and related disclosures.  On an ongoing basis, we will
evaluate these estimates which are based on historical experience and certain
assumptions we believe to be reasonable under the
circumstances.  Actual results may differ materially from our
estimates under different assumptions or conditions.





LipiGesicTM
Products:





PuraMed
BioscienceTM products consist primarily of the cost of trade secrets, formulas,
scientific and manufacturing know-how, trade names, marketing material and other
intellectual property and are amortized on a straight-line basis over an
estimated useful life of seven years.





Stock-Based Compensation – We
intend to expense any stock-based compensation issued to our employees,
contractors, consultants or others providing goods and services to
us.  The fair market value of any common stock issued for goods or
services will be expensed over the period in which we receive
them.  Most likely, any equity securities issued by us for goods and
services will consist of common shares or common stock purchase warrants, which
will be fully vested, non-forfeitable, and fully paid or exercisable at the date
of grant.  Regarding any future stock option or warrant grants, we
intend to determine their fair value by using the Black-Scholes model of
valuation.





Impairment – Soon after the
end of each fiscal year and each interim period, we will conduct an impairment
valuation of any material intangible assets owned by us.  If the
results of any such impairment analysis indicate our recorded values for any
such assets have declined materially, we will adjust our recorded asset
valuations in all of our financial statements to reflect any such decline in
value.





The
carrying value is reviewed periodically or when factors indicating impairment
are present.  The impairment loss is measured as the amount by which
the carrying value of the assets exceeds the fair value of the
assets.  The Company believes that no impairment exists at September
30, 2008.




Item
3. Quantitative and Qualitative Disclosures about Market Risk





This item
is not applicable to PuraMed BioscienceTM, Inc.


14




Item
4. Controls and Procedures





Evaluation of disclosure
controls and procedures.





As of the
end of the period covered by this report, the Company conducted an evaluation,
under the supervision and with the participation of the Chief Executive Officer
and Chief Financial Officer, of the Company’s disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
of 1934 (the “Exchange Act”)).  Based on this evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that the Company’s
disclosure controls and procedures are effective to ensure that information
required to be disclosed by the Company in reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in Securities and Exchange Commission rules and
forms.





Changes in internal
controls.





There
were no changes in the Company’s internal controls over financial reporting that
occurred during the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the Company’s internal control
over financial reporting.





Part
II.  Other Information





Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds





None





Item
5.  Other Information





None





Item
6.  Exhibits





Exhibit
Index


Quarterly
report on Form 10-Q


For the
quarter ended September 30, 2008





31.1*
            Certification
      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
      Act of 2002.





31.2*
            Certification
      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
      Act of 2002.





32.1*
            Certification
      of Chief Executive Officer and Chief Financial Officer Pursuant to Section
      906 of the Sarbanes-Oxley Act of
2002.





*Filed
herewith





15


SIGNATURES





Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.





PURAMED
      BIOSCIENCE, INC.Date:
            November
      14, 2008
            
            By:
            /s/  Russell
      W. MitchellRussell
      W. Mitchell, CEO





Pursuant
to requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.





Date:
            
            
            Signature:November
      14, 2008
            
            By:
            /s/
      Russell W. MitchellRussell
      W. Mitchell, Director(principal
      executive officer)November
      14, 2008
            
            By:
            /s/
      James W. HigginsJames
      W. Higgins, Director(principal
      financial officer)





16