U. S. SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                   FORM 10-QSB


               QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE

                         SECURITIES EXCHANGE ACT OF 1934


               For the quarterly period ended: September 30, 2003


                          Commission file No.333-90738
                                             ---------

                                  BIOMODA, INC.
           (Name of small business issuer as specified in its charter)


        NEW MEXICO                                     85-0392345
(State of incorporation)                     (IRS Employer Identification No.)

           8301 WASHINGTON NE, SUITE 6, ALBUQUERQUE, NEW MEXICO 87113
           (Address of principal executive offices including zip code)

Issuer's telephone number:                                       (505) 821-0875

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes X   No
                                                             ---    ---

The number of issuer's  shares of Common Stock  outstanding  as of November 14,
2003 was 6,745,282.

    Transitional Small Business Disclosure Format (check one): Yes     No X
                                                                  ---    ---

PART I:  FINANCIAL INFORMATION

ITEM 1:  FINANCIAL STATEMENTS

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Page 1
<PAGE>
                                  BIOMODA, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             CONDENSED BALANCE SHEET
                               SEPTEMBER 30, 2003
                                    UNAUDITED

                                     ASSETS

Current Assets
   Cash                                                             $     2,193
Other Assets, net                                                       148,390
                                                                    ------------
                                                                    $   150,583
                                                                    ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
  Accounts payable                                                  $    22,724
  Accrued liabilities                                                   154,851
  Advances from stockholders                                            127,029
  Line of credit from an affiliated entity                              228,312
                                                                    ------------
      Total Current Liabilities                                         532,916

Commitments and Contingencies

Stockholders' Deficit

  Common stock,  no par value, 15,000,000 shares                      1,282,196
    authorized; 6,745,282 issued and outstanding
  Class A redeemable preferred stock; no par value
    2,000,000 shares authorized; no shares issued and
    outstanding; cumulative and convertible                                  --
  Undesignated preferred stock; 2,000,000 shares
    authorized; no  shares issued and outstanding                            --
  Deficit accumulated during development stage                       (1,664,529)
                                                                    ------------
      Total Stockholders' Deficit                                     (382,333)
                                                                    ------------
                                                                    $   150,583
                                                                    ============

See accompanying notes to these condensed financial statements

--------------------------------------------------------------------------------
Page 2

<PAGE>

                                 Biomoda, Inc.
                         (A development Stage Company)
                       Condensed Statements of Operations
                                   Unaudited

<TABLE>
<CAPTION>
                                                                                                                 January 3, 1990
                                                                                                                 (Inception) Through
                                          Nine Months Ended September 30       Three Months Ended September 30   September 30, 2003
                                          ------------------------------       -------------------------------   ------------------
                                              2003              2002               2003               2002
                                              ----              ----               ----               ----
<S>                                       <C>                <C>                <C>                <C>                   <C>
Revenue
  Interest                                $     --           $     --           $     --           $     --              $    3,893
                                          ----------         ----------         ----------         ----------           -----------
                                                --                 --                 --                 --                   3,893

Operating expenses
  Research and development                       900                120                250               --                  78,660
  Licensing fees                              24,000               --                1,944               --                  74,817
  Advertising and marketing                    3,436                149              3,000               --                  50,575
  Depreciation and amortization                6,928              6,468              2,250              1,531                40,681
  General and administrative                 202,394             14,772             62,576              2,018             1,315,281
                                          ----------         ----------         ----------         ----------           -----------
                                             237,658             21,509             70,020              3,549             1,560,014
                                          ----------         ----------         ----------         ----------           -----------
Loss from operations                        (237,658)           (21,509)           (70,020)            (3,549)           (1,556,121)
Other expenses
  Foreign currency transaction loss              551              2,714               --                1,166                 3,798
  Interest expense                            20,010             18,678              2,856               --                 104,610
                                          ----------         ----------         ----------         ----------           -----------
Net loss                                  $ (258,219)        $  (42,901)        $  (72,876)        $   (4,715)          $(1,664,529)
                                          ==========         ==========         ==========         ==========           ===========
Basic and diluted net loss available to
  common stockholders per share           $    (0.04)        $    (0.01)        $    (0.01)        $    (0.00)
                                          ==========         ==========         ==========         ==========
Weighted average number of common
  shares outstanding                       5,837,875          5,765,282          5,864,171          5,765,282
                                           ==========         ==========         ==========         ==========
</TABLE>

See accompanying notes to these condensed financial statements

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<PAGE>

                                 BIOMODA, INC.
                         (A DEVELOPMENT STAGE COMPANY)
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   UNAUDITED
<TABLE>
<CAPTION>
                                                                                                                   January 3, 1990
                                                                    Nine-Months Ended      Nine-Months Ended     (Inception) Through
                                                                    September 30, 2003     September 30, 2002    September 30, 2003
                                                                    ------------------     ------------------    ------------------
<S>                                                                     <C>                   <C>                  <C>
NET CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                                $ (258,219)           $  (42,901)          $(1,664,529)
Adjustments to reconcile net loss to
  net cash (used in) operating activities:
  Stock compensation for exercise of options                               147,000                  --                 147,000
  Loss on sale of assets                                                         0                   358                   358
  Deprecation and amortization                                               6,928                 6,468                40,681
Changes in operating assets and liabilities:                                  --
  Accounts receivable                                                         --                    --                  (4,425)
  Other Assets                                                               4,425                  --                   4,425
  Accounts payable                                                         (18,653)                 --                  19,478
  Accrued liabilities                                                      (47,213)               18,977               244,997
                                                                        ----------            ----------           -----------
Net cash flows (used in) operating activities                             (165,732)              (17,098)           (1,212,015)
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property and equipment                                          --                    --                  (8,132)
  Sale of property and equipment                                              --                   1,139                 1,139
  Organizational costs                                                        --                    --                    (560)
  Patent, trademark and license fee                                        (28,711)               (1,000)             (186,509)
                                                                        ----------            ----------           -----------
Net cash flows (used in) provided by investing activities                  (28,711)                  139              (194,062)
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from stockholders' advances                                       6,050                  --                 130,496
  Proceeds from line of credit from an affiliated entity                   189,880                13,600               189,880
  Issuance of common stock for cash                                           --                    --               1,084,096
                                                                        ----------            ----------           -----------
Net cash flows provided by financing activities                            195,930                13,600             1,404,472
FOREIGN CURRENCY TRANSACTIONS                                                  551                 2,714                 3,798
                                                                                                                   -----------
Net increase (decrease) in cash                                              2,038                  (645)                2,193
Cash, beginning of period                                                      155                   977                  --
                                                                        ----------            ----------           -----------
Cash, end of period                                                     $    2,193            $      332           $     2,193
                                                                        ==========            ==========           ===========
</TABLE>
See accompanying notes to condensed financial statements for more information on
non-cash investing and financing  activities during the nine month periods ended
September 30, 2003 and 2002, and for the period from January 3, 1990 (Inception)
through September 30, 2003.

See accompanying notes to these condensed financial statements

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<PAGE>

--------------------------------------------------------------------------------
                                  BIOMODA, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2003 AND 2002
--------------------------------------------------------------------------------

1.  NATURE OF BUSINESS AND BASIS OF PRESENTATION

Organization
------------

Biomoda, Inc. (the "Company") is a development stage company incorporated in the
state of New  Mexico on  January  3, 1990.  The  Company's  primary  focus is on
discovery,  development,   manufacture  and  marketing  of  proprietary  medical
diagnostic  and  treatment  products  used to treat life  threatening  and other
serious diseases.

Pursuant to a registration statement on Form SB-2 (the "Registration Statement")
under the Securities  Act of 1933, as amended,  the Company is offering for sale
up to  5,000,000  shares of its  common  stock at a price of $6 per  Share.  The
Registration  Statement  was declared  effective on July 11, 2003.  The Offering
will  terminate on the earlier of July 11, 2005 or the date on which the maximum
number of shares  have been  sold.  The  Company  has not sold any  shares as of
November 14, 2003.

Development Stage and Going Concern
-----------------------------------

Since its inception,  the Company has primarily been engaged in the research and
development of its proprietary products. Once the research and development phase
is  complete,  the  Company  will begin to  manufacture  and obtain the  various
governmental regulatory approvals for the marketing of its products. The Company
is in the  development  stage and has not  generated  revenues  from any product
sales.  There  are no  assurances  that  the  Company  will be able to  generate
revenues in the near future.

The Company will require substantial  additional funding for continuing research
and development,  obtaining regulatory approval and for the commercialization of
its products.  Management plans to obtain revenues from product sales, but there
is no commitment by any persons for purchase of any of the proposed products. In
the  absence of  significant  sales and  profits,  the Company may seek to raise
additional funds to meet its working capital requirements through the additional
sales of debt and equity securities. There is no assurance that the Company will
be able to obtain  sufficient  additional funds when needed, or that such funds,
if available, will be obtainable on terms satisfactory to the Company.

As of September 30, 2003, the Company had an  accumulated  deficit and a working
capital  deficit  of  approximately  $382,000  and  $531,000,  respectively.  In
addition,  the Company did not generate any cash from operations and had no cash
reserve dedicated to fund expenditures.

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Page 5

<PAGE>

--------------------------------------------------------------------------------
                                  BIOMODA, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2003 AND 2002
--------------------------------------------------------------------------------

1.  NATURE OF BUSINESS AND BASIS OF PRESENTATION (continued)

Development Stage and Going Concern (continued)
----------------------------------------------

The Company's products, to the extent they may be deemed drugs or biologics, are
governed by the Federal  Food,  Drug and Cosmetics  Act and the  regulations  of
State  and  various  foreign   government   agencies.   The  Company's  proposed
pharmaceutical  products to be used with humans are subject to certain clearance
procedures  administered  by the  above  regulatory  agencies.  There  can be no
assurance  that the Company will receive the  regulatory  approvals  required to
market its proposed products  elsewhere or that the regulatory  authorities will
review the product within the average period of time.

Management  is  attempting  to raise  additional  capital  through  the  current
Registration  Statement on Form SB-2.  Management  has applied with the National
Association  of  Securities  Dealers  for a  trading  symbol to be able to start
trading to provide liquidity.

These circumstances, among others, raise concerns about the Company's ability to
continue as a going concern. The accompanying  condensed financial statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

Basis of Presentation
---------------------

The management of the Company,  without audit,  prepared the condensed financial
statements for the three-month  and nine-month  periods ended September 30, 2003
and 2002.  The  information  furnished  has been  prepared  in  accordance  with
accounting  principles  generally  accepted  in the  United  States  of  America
("GAAP") for interim financial reporting.  Accordingly,  certain information and
disclosures  normally  included in financial  statements  prepared in accordance
with GAAP have been  condensed  or omitted.  In the opinion of  management,  all
adjustments  considered  necessary  for the fair  presentation  of the Company's
financial position,  results of operations and cash flows have been included and
are only of a normal recurring nature. The results of operations for the quarter
ended  September  30,  2003 are not  necessarily  indicative  of the  results of
operations for the year ending December 31, 2003.

These  financial  statements  should be read in  conjunction  with the Company's
audited financial  statements as of December 31, 2002, which are included in the
Company's  Registration  Statement on Form SB-2, which was declared effective on
July 11, 2003.

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<PAGE>

--------------------------------------------------------------------------------
                                  BIOMODA, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2003 AND 2002
--------------------------------------------------------------------------------

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting for Stock-based Compensation
---------------------------------------

The Company accounts for stock-based  compensation issued to employees using the
intrinsic value method as prescribed by Accounting  Principles Board Opinion No.
25 "ACCOUNTING  FOR STOCK ISSUED TO EMPLOYEES"  ("APB 25").  Under the intrinsic
value method, compensation is the excess, if any, of the fair value of the stock
at the grant date or other measurement date over the amount an employee must pay
to acquire the stock.  Compensation,  if any, is recognized  over the applicable
service period,  which is usually the vesting period.  The Financial  Accounting
Standards Board ("FASB") has issued Statement of Financial  Accounting Standards
("SFAS") No. 123 "ACCOUNTING FOR STOCK-BASED  COMPENSATION",  as amended by SFAS
No. 148,  "ACCOUNTING FOR STOCK-BASED  COMPENSATION - TRANSITION AND DISCLOSURE,
AN AMENDMENT OF FASB STATEMENT NO. 123" and  interpreted by FASB  Interpretation
No. 44, "ACCOUNTING FOR CERTAIN  TRANSACTIONS  INVOLVING STOCK COMPENSATION,  AN
INTERPRETATION OF APB 25." This standard,  if fully adopted,  changes the method
of accounting for all  stock-based  compensation  to the fair value method.  For
stock options and warrants,  fair value is  determined  using an option  pricing
model that takes into  account the stock price at the grant date,  the  exercise
price,  the  expected  life of the  option or  warrant  and the  annual  rate of
quarterly  dividends.  Compensation  expense,  if any,  is  recognized  over the
applicable service period, which is usually the vesting period.

The  adoption of the  accounting  methodology  of SFAS No. 123 for  employees is
optional  and the Company has elected to  continue  accounting  for  stock-based
compensation  issued to employees using APB 25; however,  pro forma disclosures,
as if the Company adopted the cost recognition  requirements under SFAS No. 123,
are required to be presented.

In December 2002, the Financial  Accounting Standards Board ("FASB") issued SFAS
No. 148 ("SFAS 148"),  "ACCOUNTING FOR STOCK-BASED COMPENSATION - TRANSITION AND
DISCLOSURE - AN AMENDMENT OF FASB  STATEMENT  NO. 123." SFAS 148 amends SFAS 123
to provide  alternative  methods of  transition  for an entity that  voluntarily
changes to the  fair-value-based  method of accounting for stock-based  employee
compensation.  It also amends the  disclosure  provisions  of that  statement to
require  prominent  disclosure  about the  effects  on  reported  net income and
earnings per share and the entity's  accounting policy decisions with respect to
stock-based employee  compensation.  Certain of the disclosure  requirements are
required  for all  companies,  regardless  of whether  the fair value  method or
intrinsic value method is used to account for stock-based employee  compensation
arrangements.  The Company continues to account for its employee incentive stock
option plans using the intrinsic value method in accordance with the recognition
and  measurement  principles  of APB 25.  SFAS 148 is  effective  for  financial
statements  for fiscal  years  ended  after  December  15,  2002 and for interim
periods beginning after December 15, 2002. As of September 30, 2003, the Company
has not established a formal stock option plan.

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<PAGE>

--------------------------------------------------------------------------------
                                  BIOMODA, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2003 AND 2002
--------------------------------------------------------------------------------

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Earnings Per Share
------------------

The Company has adopted  Statement of  Financial  Accounting  Standards  No. 128
("SFAS 128"),  "EARNINGS PER SHARE" Under SFAS 128,  basic earnings per share is
computed by dividing  income  available to common  stockholders  by the weighted
average  number  of  shares  assumed  to be  outstanding  during  the  period of
computation.  Diluted  earnings per share is computed  similar to basic earnings
per share  except that the  denominator  is  increased  to include the number of
additional  common  shares  that would have been  outstanding  if the  potential
common shares had been issued and if the additional common shares were dilutive.
Because the  Company  has  incurred a net loss in the nine month and three month
periods ended September 30, 2003 and 2002,  basic and diluted loss per share are
the same as additional potential common shares would be anti-dilutive.

Patent
------

Costs incurred in connection with securing a patent,  as well as attorneys fees,
have been  capitalized  and amortized  over  seventeen  years using the straight
line-method and are included in other assets on the accompanying balance sheet.

3.  ADVANCES FROM STOCKHOLDERS

As of September 30, 2003, the Company received advances  approximating  $127,000
from its stockholders. These advances bear interest at 10% per annum and are due
on demand.  Interest  expense  related to such  advances for the nine months and
three months periods ended  September 30, 2003 and for the period from inception
through September 30, 2003 was $9,378, $3,253 and $40,618, respectively.

4.  LINE OF CREDIT FROM AN AFFILIATED ENTITY

On May 1, 2002,  the Company  entered into a one-year  line of credit  agreement
(the "Agreement") with Advanced Optics Electronics,  Inc., an affiliated entity,
("Advanced  Optics")  with an  annual  interest  rate of 5%.  On May 1, 2003 the
agreement was extended  whereby the outstanding  balance as of December 31, 2003
shall be  converted  into a one year note with an  annual  interest  rate of 5%.
Interest  expense related to such a line of credit for the nine months and three
months period ended September 30, 2003 and for the period from inception through
September 30, 2003 was approximately $14,000, $3,000 and $15,000, respectively.

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<PAGE>

--------------------------------------------------------------------------------
                                  BIOMODA, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2003 AND 2002
--------------------------------------------------------------------------------

5. EQUITY TRANSACTIONS

Options
-------

On April 17,  2000,  the Company  authorized  the  issuance of  1,700,000  stock
options to acquire the company's  common stock at an exercise  price of $.15 per
share as compensation for services provided by two of the officers which 420,000
shares  were  exercised  during  year 2000 and 2001.  In June 2002,  the Company
authorized the issuance of 980,000 stock options to acquire the company's common
stock at an  exercise  price of $.15 per  share  as  compensation  for  services
provided by two of the officers.  On July 11, 2003,  the two officers  exercised
their  option for  980,000 of the  Company's  common  stock in lieu of  deferred
salary in the amount of $147,000.

6.  OTHER RELATED PARTY TRANSACTION

On May 1, 2002,  the Company  entered into a subleases  agreement  with Advanced
Optics  to  sublease  an  office  space  for  $300 a  month.  The  lease is on a
month-to-month  basis and the Company is to abide with all relevant covenants of
the master lease.

7.  SUBSEQUENT EVENTS

On November 5, 2003,  the Company  has  entered  into a lease  agreement  for an
office  space.  The  agreement is for one year and has a three (1) year options.
The monthly lease amount under such an agreement is $2,000.

As of October 2003, the Company has also entered into three (1) year  consulting
agreements with three scientists.  Advanced Optics is currently paying the three
scientists and the Company is liable to reimburse  Advanced Optics.  The monthly
obligation under such agreement is approximately $18,000.

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Page 9

<PAGE>

8.  RECENT ACCOUNTING PRONOUNCEMENTS

Significant recent accounting pronouncements include:

<TABLE>
<CAPTION>
                                                                                       ADOPTION/
PRONOUNCEMENT                           TITLE                                       EFFECTIVE DATE
--------------        -------------------------------------------------------    ----------------------
<S>                   <C>                                                        <C>
SFAS No. 141          BUSINESS COMBINATIONS                                         January 1, 2002

SFAS No. 142          GOODWILL AND OTHER INTANGIBLE ASSETS                          January 1, 2002

SFAS No. 143          ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS                   January 1, 2003

SFAS No. 145          RESCISSION  OF FASB  STATEMENTS  NO.  4,  44,  AND 64,          May 15, 2002
                      AMENDMENT  OF FASB  STATEMENT  NO. 13,  AND  TECHNICAL
                      CORRECTIONS

SFAS No. 146          ACCOUNTING FOR COSTS  ASSOCIATED WITH EXIT OR DISPOSAL        January 1, 2003
                      ACTIVITIES

SFAS No. 148          ACCOUNTING FOR  STOCK-BASED  COMPENSATION - TRANSITION       December 31, 2002
                      AND DISCLOSURE, AN AMENDMENT OF FASB STATEMENT NO. 123

SFAS No. 150          ACCOUNTING  FOR  CERTAIN  FINANCIAL  INSTRUMENTS  WITH          May 31, 2003
                      CHARACTERISTICS OF BOTH LIABILITIES AND EQUITY.

FIN 45                GUARANTOR'S  ACCOUNTING  AND  DISCLOSURE  REQUIREMENTS       December 31, 2002
                      FOR  GUARANTEES,   INCLUDING  INDIRECT  GUARANTEES  OF
                      INDEBTEDNESS  OF  OTHERS - AN  INTERPRETATION  OF FASB
                      STATEMENTS  NO. 5, 57, AND 107 AND  RESCISSION OF FASB
                      INTERPRETATION NO. 34

FIN 46                CONSOLIDATION OF VARIABLE INTEREST ENTITIES                   January 31, 2003
</TABLE>

In the opinion of management,  recent accounting  pronouncements did not or will
not have a material affect on the financial statements.

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PAGE 10

<PAGE>

ITEM 2:
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                  FINANCIAL CONDITION AND RESULTS OF OPERATION
                                        .

FORWARD - LOOKING STATEMENTS
----------------------------

This Quarterly  Report contains  forward-looking  statements about the business,
financial  condition and prospects of the Company that reflect  assumptions made
by management and management's beliefs based on information  currently available
to it. The Company can give no assurance that the expectations indicated by such
forward-looking  statements will be realized. If any of management's assumptions
should prove incorrect, or if any of the risks and uncertainties underlying such
expectations  should  materialize,  the  Company's  actual  results  may  differ
materially from those indicated by the forward-looking statements.

The key factors  that are not within the  Company's  control and that may have a
direct  bearing  on  operating  results  include,  but are not  limited  to, the
acceptance by customers of the  Company's  products,  the  Company's  ability to
develop  new  products  cost-effectively,  the  ability of the  Company to raise
capital in the future, the development by competitors of products using improved
or alternative  technology,  the retention of key employees and general economic
conditions.

There may be other risks and circumstances that management is unable to predict.
When  used in this  Quarterly  Report,  words  such as,  "believes,"  "expects,"
"intends,"  "plans,"  "anticipates"  "estimates"  and  similar  expressions  are
intended to identify forward-looking  statements,  although there may be certain
forward-looking   statements   not   accompanied   by  such   expressions.   All
forward-looking statements are intended to be covered by the safe harbor created
by Section 21E of the Securities Exchange Act of 1934.

                                    OVERVIEW

Biomoda,  Inc.,  was  incorporated  under New Mexico law on January 2, 1990. Our
executive  office is located at 8301  Washington  NE, Suite 6,  Albuquerque,  NM
87113,  and our telephone  number is (505)  821-0875.  Our registered  statutory
office  is at the same  address.  We use the  terms  "Company"  and "we" in this
prospectus to refer to Biomoda, Inc., unless the context indicates otherwise.

The  Company  is a  developmental  stage  company  engaged  in the  business  of
developing biopharmaceutical technology to diagnose and treat human diseases. To
date, the Company has not received any revenue from the sale of any products. We
currently licenses three patents from the University of California.  The license
to use these patents is exclusive  and our license  expires on December 3, 2019,
which is when the last of our licensed  patents  expires.  On November 10, 1992,
the Company  licensed a patent  (patent  number  5,162,231) for the detection of
cancers of the lung.  The patent  expires on November 10, 2009. A second  patent
(patent  number  5,391,547),  dealing with treatment

--------------------------------------------------------------------------------
PAGE 11

<PAGE>

of cancers of the lung,  was  licensed  on  February  21,  1995,  and the patent
expires  on  February  21,  2012.  The  third  licensed  patent  (patent  number
6,490,330) for the production of high specific  activity  Copper 67 was licensed
by the Company on December 3, 2002,  and the patent expires on December 3, 2019.
We have applied for the first patent in the Company's  name (patent  application
09/989,092),  which  deals  with  detecting  pre-cancerous  conditions  in human
tissue. The application is currently pending.

We also  currently  have patents and patents  pending in seven other  countries:
Australia (670743), Brazil (PI 9106563-1),  Canada (2085464), Japan (3,047,468),
Korea (171393), Mexico (app #PA/a/2003/004406) and Russia (2114430). The patents
in  these  countries  protect  our  rights  under  U.S.  patents  5,162,231  and
5,391,547.  These  foreign  patents  all expire on June 17,  2011.  We also have
received a patent (EPO 533845 B1) from the European Patent Office to protect our
rights under U.S.  patents  5,162,231  and  5,391,547.  The patent issued by the
European  Patent  Office  covers  the  following  countries:  Austria,  Belgium,
Germany, Denmark, France, Great Britain, Italy, Netherlands and Sweden.

For the expanded  development phase no manufacturing  facilities will be needed.
For the  production  phase,  we plan to  initially  contract out  production  at
comparable, competitive costs.

Biomoda's  business  opportunities  are in  developing  products  for the  early
detection and treatment of cancers.  The initial  products relate to lung cancer
and are based on commercializing  our core patent protected  technology relating
to a compound  called  Tetrakis  Carboxy  Phenyl  Porphine  ("TCPP").  TCPP is a
porphyrin  with unique  properties.  Porphyrins  are compounds  related to blood
(such  as heme in  hemoglobin)  and  having  biological  activity.  TCPP  has an
affinity to bind molecularly with cancer cells.  This allows the cancer cells to
be  identified   because  TCPP  will  fluoresce  or  glow  under  certain  light
conditions.  The next stage toward product  development is the refinement of our
protocol and process and proof of concept in clinical trials. This will include:

A.   The  development  of  staining   protocols:   staining  protocols  are  the
     standardized  operating  procedures  used to stain  samples.  These include
     procedures for dissolving  TCPP in different  solvents,  attaching cells to
     microscope slides or suspending them in solutions, and then rinsing out the
     stain and preparing the sample for evaluation.

B.   The creation of standard reference materials:  standard reference materials
     are cell samples that have a consistent  level of staining with TCPP. These
     bench  marking sets will be added to the  patient's  samples as an internal
     control to insure the valid functioning of the staining procedure.

Clinical trials will apply these  techniques to registry  sputum samples,  which
are  samples  of  tissues  from  cancer  patients,  along  with  their  relevant
histories.  Some  tissue  registries  follow  patients  who are at high  risk of
cancer,  but do not yet have the disease.  These  registry  samples are the most
valuable  for  proving  efficacy  of a new  screening  test.  The results of the
clinical trials will provide the proof of performance data required to move into
product   commercialization   and   joint   venture   and   strategic   alliance
opportunities.

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<PAGE>

Our business plan is to focus on developing our proprietary, patented technology
for the early  detection  of cancer  cells into  products  that are tailored for
government,  regulatory, medical and public acceptance on a worldwide basis. The
market for our early detection of lung cancer  products can be considered,  in a
general sense, the entire world  population since this is a preliminary  disease
screening  tool and the test is  administered  outside the body.  Everyone would
benefit from this screening test. More specifically,  we are targeting high-risk
and at-risk  populations in countries  with  relatively  developed  medical care
infrastructure  systems.  In addition to our  diagnostic  product  concepts,  we
intend to develop and market  therapeutic  and cancer  treatment  products.  The
market for these products are people that have been diagnosed with lung cancer.

We  plan  to  contract  with  manufacturing  facilities  to  produce  commercial
quantities of our products.  The first products to be developed will be used for
early diagnosis of cancer, followed by products that will aid in the imaging and
treatment  of cancer.  The Company  will develop a new market in response to the
Company's products by focusing on hospitals, laboratories, and other health care
providers who typically  will buy products based on our technology for providing
care to their  patients.  We also  plan to  develop  an  international  presence
through  confidential  licensing  agreements  and possibly  joint  ventures with
international partners.

Our stock currently has no public trading  market.  We have filed a Form 15c2-11
and applied for a listing on the Over the Counter  Bulletin  Board  (OTCBB).  We
believe  obtaining a listing on the OTCBB will  provide some  liquidity  for our
shareholders and create a public market for our securities. However, there is no
guarantee that the Company will obtain a listing or that a public market for our
securities will develop, even if we do obtain a listing on the OTCBB.

RESULTS OF CONTINUING OPERATIONS

Due  to  our  limited  operating  history,  we  believe  that   period-to-period
comparisons of our results of operations are not fully meaningful and should not
be relied upon as an indication of future performance.

COMPARISON OF THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2003 AND 2002
-----------------------------------------------------------------------

REVENUE.  As of September 30, 2003, there have been no revenues.

PRODUCT DEVELOPMENT. Product development expenses consist primarily of personnel
expenses,  consulting  fees,  licensing fees and  depreciation  of the equipment
associated with the  development and enhancement of our disease  screening tool.
Research  development and other operating technical costs increased to $7,444 in
the three months ended  September 30, 2003 from $1,531 in the three months ended
September  30,  2002.  These costs have  increased.  The Company  believes  that
continued  investment  in product  development  is  critical  to  attaining  our
strategic objectives and, as a result, we expect product development expenses to
increase  significantly in future periods.  We expense product development costs
as they are incurred.

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<PAGE>

GENERAL AND  ADMINISTRATIVE.  General  and  administrative  expenses  consist of
expenses for executive and administrative  personnel,  facilities,  professional
services,  travel,  general  corporate  activities,  and  the  depreciation  and
amortization  of  office  furniture  and  leasehold  improvements.  General  and
administrative  costs  increased to $62,576 in the three months ended  September
30, 2003 from $ 2,018 in the three months ended  September  30, 2002.  We expect
general  and  administrative  costs to  increase  in the future as our  business
prospects  develop and we will require  more staff.  The costs  associated  with
being a publicly traded company and future strategic acquisitions will also be a
contributing factor to increases in this expense.

OTHER INCOME  (EXPENSE).  Other income (expense)  consists of interest and other
income and  expense.  Other  (expense)  increased  to $2,856 in the three months
ended  September  30, 2003 from $1,166 in the three months ended  September  30,
2002 due  primarily  to an in  interest  expense  booked  from our  bridge  fund
operating in the three months ended September 30, 2003.

COMPARISON OF THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2003 AND 2002
----------------------------------------------------------------------

REVENUE.  As of September 30, 2003, there have been no revenues.

PRODUCT DEVELOPMENT. Product development expenses consist primarily of personnel
expenses,  consulting fees and depreciation of the equipment associated with the
development  and enhancement of our screening  test.  Research,  development and
technical costs increased to $35,264 in the nine months ended September 30, 2003
from $6,737 in the nine months ended  September 30, 2002.  The Company  believes
that  continued  investment in product  development is critical to attaining our
strategic objectives and, as a result, we expect product development expenses to
increase  significantly in future periods.  We expense product development costs
as they are incurred.

GENERAL AND  ADMINISTRATIVE.  General  and  administrative  expenses  consist of
expenses for executive and administrative  personnel,  facilities,  professional
services,  travel,  general  corporate  activities,  and  the  depreciation  and
amortization  of  office  furniture  and  leasehold  improvements.  General  and
administrative  costs  increased to $202,394 in the nine months ended  September
30, 2003 from $14,772 in the nine months  ended  September  30,  2002.  The main
reason was the  exercise of stock  options in lieu of salary for two officers in
the amount of $147,000.  We expect general and administrative  costs to increase
in the future as our business  prospects develop and we will require more staff.
The costs  associated with being a publicly traded company and future  strategic
acquisitions will also be a contributing factor to increases in this expense.

OTHER INCOME  (EXPENSE).  Other income (expense)  consists of interest and other
income and expense.  Other (expense) remained  relatively stable at ($20,561) in
the nine months ended September 30, 2003 from ($21,392) in the nine months ended
September 30, 2002.

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<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

Since  inception,  we have  funded  our  operations  primarily  through  private
placement of equity securities and loans from Advanced Optics Electronics,  Inc.
As  of  September  30,  2003  we  have  raised  net  proceeds  of  approximately
$1,363,000.

Product development expenditures were $7,444 for the quarter ended September 30,
2003. Funds for operations,  product  development and capital  expenditures were
provided from a bridge financing arrangement.

Management believes that sales of securities will provide adequate liquidity and
capital resources to meet the anticipated development stage requirements through
the end of the second quarter 2005. At that time it is anticipated that sales of
our initial screening  product will begin and contribute to operating  revenues.
It is anticipated that these sales will provide the additional capital resources
to fund the  proportionately  higher working capital  requirements of production
and sales  initiatives and continued product  development for  second-generation
diagnostic and therapeutic products.

Item 3. CONTROLS AND PROCEDURES

Within 90 days prior to this report, Management carried out an evaluation of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures,  pursuant to Exchange Act Rule  13a-15(c) and  15d-15(c)  which
includes  inquiries  made  to  certain  other  of our  employees.  Based  on the
foregoing,  the  Principal  Executive  Officer and Principal  Financial  Officer
concluded that the Company's disclosure controls and procedures are effective to
timely alert them to any material  information relating to the Company that must
be included in the Company's periodic SEC filings. In addition,  there have been
no significant  changes in the Company's  internal  controls or in other factors
that could significantly  affect internal controls subsequent to the date of the
most recent evaluation.

                           PART II. OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS

The  Company may on occasion  be a party to  litigation  involving  claims by or
against the Company arising in the ordinary course of business. The officers and
directors know of no legal  proceedings  pending or  contemplated by any person,
entity or governmental  authority which would have a material  adverse effect on
the Company.

Item 2.  Changes in securities

The Company's  authorized  capital stock consists of 15,000,000 shares of common
stock,  of which  6,745,282 are issued and outstanding as of September 30, 2003.
The  Company's  bylaws  also  authorize  the  issuance  of  4,000,000  shares of
Preferred  Stock.  There are no shares of  Preferred  Stock  that are issued and
outstanding. The shareholders

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<PAGE>

do not possess  cumulative  voting rights.  There are no other  material  rights
afforded by the shares of stock, which have been authorized by the company.

On April 17,  2000,  the Company  authorized  the  issuance of  1,700,000  stock
options to acquire the company's  common stock at an exercise  price of $.15 per
share as compensation for services provided by two of the officers which 420,000
shares  were  exercised  during  year 2000 and 2001.  In June 2002,  the Company
authorized the issuance of 980,000 stock options to acquire the company's common
stock at an  exercise  price of $.15 per  share  as  compensation  for  services
provided by two of the officers.  On July 11, 2003,  the two officers  exercised
their  option for  980,000 of the  Company's  common  stock in lieu of  deferred
salary in the amount of $147,000.

Item 3.  Defaults upon senior securities - Not applicable

Item 4.  Submission of Matters to a Vote of Security Holders

There were no matters  submitted  to a vote of the  Company's  security  holders
during the third quarter of fiscal year 2003.

Item 5.  Other Information - Not applicable

Item 6.  Exhibits and Reports on Form 8-K

(a)   Exhibits

31.1  Certification  of CEO and CFO  pursuant to  Securities  Exchange Act rules
      13a-15  and   15d-15(c)  as  adopted   pursuant  to  section  302  of  the
      Sarbanes-Oxley act of 2002.

32.1  Certification  of John J.  Cousins,  Principal  Executive  and  Accounting
      Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to section
      906 of the Sarbanes-Oxley act of 2002.

(b)   Reports on Form 8-K

On November 14, 2003 a report on Form 8-K was filed referring to the resignation
of Hinkle & Landers, P.C. as the Company's auditors.  Another report on Form 8-K
was filed referring to the engagement of Squar, Milner, Reehl & Williamson,  LLP
Public Accountants ("Squar Milner") as its new independent auditors.

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<PAGE>

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report  on Form  10QSB to be  signed  on its  behalf  by the  undersigned,
thereunto duly authorized.


                                  DATED: NOVEMBER 19, 2003

                                  Biomoda, Inc.



                                  /s/ JOHN J. COUSINS
                                      ---------------
                                      John J. Cousins
                                      Principal Executive and Accounting Officer


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