U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X]      QUARTERLY  REPORT  PURSUANT  TO  SECTION 13 OR  15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended:  June 30, 2005
                                          -------------

                                       OR

[ ]      TRANSITION  REPORT PURSUANT  TO SECTION 13 OR 15(d) OF  THE  SECURITIES
         EXCHANGE ACT OF 1934

                           Commission File No.: 1-7986
                                                ------

                          Kent Financial Services, Inc.
                          -----------------------------
        (Exact name of small business issuer as specified in its charter)

            Delaware                                       75-1695953
            --------                                       ----------
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                          Identification No.)

376 Main Street, P.O. Box 74, Bedminster, New Jersey                07921
----------------------------------------------------                -----
     (Address of principal executive offices)                    (Zip Code)

                                 (908) 234-0078
                                 --------------
                           (Issuer's telephone number)

                                       N/A
                                       ---
              (Former name, former address and former fiscal year,
                          if changed since last report)

     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 issuer was required to file such  reports),  and (2) has
been subject to such filing requirements for the past 90 days.
                                 Yes  X    No
                                    -----    -----
     State the number of shares  outstanding of each of the issuer's  classes of
common stock: As of July 31, 2005, the issuer had 2,816,762 shares of its common
stock, par value $.10 per share, outstanding.

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

<PAGE>

PART I  -  FINANCIAL INFORMATION
------     ---------------------
Item 1. -  Financial Statements
-------    --------------------

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2005
                                   (UNAUDITED)
                                 ($000 Omitted)
ASSETS
------

Current Assets:
  Cash and cash equivalents                                       $  14,017
  Securities owned                                                      508
  Other current assets                                                   55
                                                                  ---------
    Total current assets                                             14,580
Property and equipment:
  Office furniture and equipment                                         61
  Accumulated depreciation                                       (       58)
                                                                  ---------
     Net property and equipment                                           3
Goodwill                                                                 90
                                                                  ---------
    Total assets                                                  $  14,673
                                                                  =========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities:
  Accounts payable and accrued expenses                           $     930
  Accrual for previously discontinued operations                        166
                                                                  ---------
    Total liabilities                                                 1,096
                                                                  ---------

Contingent liabilities

Minority interest in subsidiaries                                     5,765

Stockholders' equity:
Preferred stock without par value,
  500,000 shares authorized;
  none outstanding                                                        -
Common stock, $.10 par value,
  4,000,000 shares authorized;
  2,816,766 shares issued and outstanding                               282
Additional paid-in capital                                           12,408
Accumulated deficit                                              (    4,878)
                                                                  ---------
    Total stockholders' equity                                        7,812
                                                                  ---------
    Total liabilities and stockholders' equity                    $  14,673
                                                                  =========




     See accompanying notes to condensed consolidated financial statements.

                                       2

<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                      ($000 Omitted, except per share data)



                                                       Three Months Ended
                                                             June 30,
                                                     ----------------------
                                                       2005          2004
                                                     --------      --------

Revenues:
  Investing losses                                   ($    83)     ($    25)
  Management fee income                                     -            57
  Equity in earnings of T. R. Winston                       -            29
  Pre-acquisition equity in loss of Cortech                 -      (     83)
  Interest, dividends and other                           146            38
                                                      -------       -------
    Total revenues                                         63            16
                                                      -------       -------

Expenses:
  General and administrative                              343           179
  Interest                                                  -            14
                                                      -------       -------
    Total expenses                                        343           193
                                                      -------       -------

Loss before income taxes                             (    280)     (    177)
Provision for income taxes                                  2             1
                                                      -------       -------
Loss before minority interest                        (    282)     (    178)
Minority interest in subsidiaries losses                    7             -
                                                      -------       -------
Net loss                                             ($   275)     ($   178)
                                                      =======       =======

Basic and diluted net loss per common share          ($   .10)     ($   .06)
                                                      =======       =======

Basic and diluted weighted average number of
 common shares outstanding (in 000's)                   2,831         2,958
                                                      =======       =======











     See accompanying notes to condensed consolidated financial statements.

                                       3

<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                      ($000 Omitted, except per share data)



                                                       Six Months Ended
                                                            June 30,
                                                     --------------------
                                                       2005        2004
                                                     --------    --------

Revenues:
  Investing gains (losses)                          ($    30)    $    17
  Management fee income                                   12         114
  Equity in earnings of T. R. Winston                      -         138
  Pre-acquisition equity in loss of Cortech                -    (     83)
  Interest, dividends and other                          386         266
                                                     -------     -------
    Total revenues                                       368         452
                                                     -------     -------

Expenses:
  General and administrative                             617         399
  Interest                                                 -          27
                                                     -------     -------
    Total expenses                                       617         426
                                                     -------     -------

Income (loss) before income taxes                   (    249)         26
Provision for income taxes                                22          17
                                                     -------     -------
Income (loss) before minority interest              (    271)          9
Minority interest in subsidiaries losses                  25           -
                                                     -------     -------
Net income (loss)                                   ($   246)    $     9
                                                     =======     =======

Basic and diluted net income (loss)
  per common share                                  ($   .09)    $     -
                                                     =======     =======

Basic and diluted weighted average number of
 common shares outstanding (in 000's)                  2,837       2,971
                                                     =======     =======










     See accompanying notes to condensed consolidated financial statements.

                                       4

<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 ($000 Omitted)
                                                           Six Months Ended
                                                                June 30,
                                                         --------------------
                                                           2005        2004
                                                         --------    --------
Cash flows from operating activities:
  Net income (loss)                                     ($    246)   $      9
  Adjustments to reconcile net income (loss)
   to net cash provided by (used in) operating
     activities:
     Depreciation                                               1          16
     Unrealized losses on securities owned                     74           9
     Equity in earnings of T. R. Winston                        -   (     138)
     Pre-acquisition equity in loss of Cortech                  -          83
     Minority interest in subsidiaries losses           (      25)          -
  Changes in operating assets and liabilities:
   Change in securities owned                                 624   (     523)
   Change in accounts payable and
    accrued expenses                                          113         110
  Change in other assets                                      129           -
   Other, net                                                   -          82
                                                         --------    --------
    Net cash provided by (used in) operating
     activities                                               670   (     352)
                                                         --------    --------

Cash flows from investing activities:
  Cash acquired through consolidation of Cortech                -      10,992
  Cash acquired through consolidation of The
   Academy for Teaching and Leadership                         50           -
  Cash acquired through consolidation of
   General Devices                                             74           -
  Investment in T. R. Winston                                   -   (      45)
  Purchase of equipment                                         -   (       3)
                                                         --------    --------
   Net cash provided by investing activities                  124      10,944
                                                         --------    --------

Cash flows from financing activities:
  Dividends paid                                        (     851)          -
  Repurchase of common stock                            (      82)  (     767)
  Payments on debt                                              -   (       5)
                                                         --------    --------
   Net cash used in financing activities                (     933)  (     772)
                                                         --------    --------

Net increase (decrease) in cash and cash equivalents    (     139)      9,820
Cash and cash equivalents at beginning of period           14,156       3,737
                                                         --------    --------
Cash and cash equivalents at end of period               $ 14,017    $ 13,557
                                                         ========    ========

Supplemental disclosure of cash flow information:
  Cash paid for:
    Interest                                             $      -    $     27
                                                         ========    ========
    Taxes                                                $     10    $     11
                                                         ========    ========

     See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004
                                   (Unaudited)

1.   Basis of Presentation
     ---------------------

     The accompanying  unaudited condensed  consolidated financial statements of
Kent Financial  Services,  Inc. and subsidiaries  (the "Company") as of June 30,
2005 and for the three  and six  month  periods  ended  June 30,  2005 and 2004,
reflect  all  material   adjustments   consisting   of  only  normal   recurring
adjustments,  which,  in the opinion of  management,  are  necessary  for a fair
presentation  of  results  for the  interim  periods.  Certain  information  and
footnote disclosures required under accounting  principles generally accepted in
the United  States of America  have been  condensed  or omitted  pursuant to the
rules and  regulations of the Securities and Exchange  Commission,  although the
Company  believes  that the  disclosures  are  adequate to make the  information
presented not misleading. These consolidated financial statements should be read
in conjunction  with the year-end  consolidated  financial  statements and notes
thereto  included in the  Company's  Annual Report on Form 10-KSB for the fiscal
year  ended  December  31,  2004,  as filed  with the  Securities  and  Exchange
Commission.

     The  preparation  of financial  statements  in conformity  with  accounting
principles   generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets and  liabilities  and disclosure of contingent  assets and liabilities at
the date of the financial  statements  and the reported  amounts of revenues and
expenses  during the reporting  period.  Actual  results could differ from those
estimates.  Estimates  that  are  particularly  susceptible  to  change  include
assumptions  used  in  determining  the  fair  value  of  securities  owned  and
non-readily marketable securities.

     Certain  reclassifications  have been made to the  prior  year's  financial
statements to conform to the current year's presentation.

     The results of  operations  for the three and six month  periods ended June
30, 2005 and 2004 are not  necessarily  indicative of the results to be expected
for the entire year or for any other period.

2.   Business
     --------

     The Company is a holding  company that  operates  through its  wholly-owned
partnership  Asset Value Fund Limited  Partnership  ("AVF").  AVF  increased its
ownership of Cortech,  Inc. ("Cortech") to 50.06% at June 30, 2004 (the "Cortech
Acquisition').  Prior  to  June  30,  2004,  AVF  had  been  accounting  for its
investment in Cortech based upon its fair value as determined by the  management
of AVF. Subsequent to the Cortech Acquisition,  Cortech has been consolidated in

                                       6

<PAGE>

the Company's financial statements. Cortech is currently seeking the acquisition
of an operating  business.  All of Cortech's assets,  excluding its portfolio of
pharmaceutical patents, are invested in cash and United States Treasury Bills.

     Through  AVF,  Kent  also  owns  44% of  General  Devices,  Inc,  ("General
Devices") having  purchased an additional  714,413 shares of General Devices for
$71,400 in February 2005. In December 2003, the Financial  Accounting  Standards
Board  ("FASB")  issued  FASB  Interpretation  No. 46 (revised  December  2003),
Consolidation  of Variable  Interest  Entities  ("FIN 46").  FIN 46 explains the
concept of a variable interest entity and requires  consolidation by the primary
beneficiary  where the variable  interest entity does not have sufficient equity
at risk to finance its  activities  without  additional  subordinated  financial
support from other parties.  Additional  financing will be required for business
activities of General Devices for the next twelve months. The Board of Directors
of General  Devices  authorized the issuance of additional  shares of its common
stock to provide the required liquidity.  During the second quarter of 2005, AVF
verbally agreed to purchase  sufficient  shares to provide the required funding.
As a result,  the Company  believes  that,  under FIN 46,  General  Devices is a
variable interest entity and the Company is the primary beneficiary.  Therefore,
General Devices has been consolidated in the financial statements of the Company
beginning with the second quarter of 2005. As a result of consolidating  General
Devices,  the  Company  recognized  a loss on its  investment  of  approximately
$83,000 and recorded minority interest of approximately $36,000.

     General  Devices,  a  publicly  traded  company,  has  assets,   consisting
primarily  of cash,  of $75,000,  accounts  payable and accrued  liabilities  of
$10,000 and stockholders'  equity of $65,000.  For the six months ended June 30,
2005, General Devices reported a net loss of $46,000,  which consisted solely of
operating  expenses,  of which  $24,000  were  management  fees  paid to AVF and
eliminated  in   consolidation.   General  Devices  is  currently   seeking  the
acquisition of an operating business.

     In August  2004,  the Company  formed a new  subsidiary,  Kent  Educational
Services,  Inc.,  ("KES"),  initially  funded with  $300,000.  KES purchased for
$300,000, a 60% controlling interest in The Academy for Teaching and Leadership,
Inc.  ("The  Academy"),  a new company  formed to offer  educators  high quality
programs designed to dramatically improve themselves,  their students, and their
schools. Dr. Saul Cooperman,  a former Commissioner of Education in the State of
New Jersey,  heads the  Academy.  KES and The Academy  are  consolidated  in the
Company's financial  statements.  Goodwill of $90,000 was recorded in connection
with the  consolidation of The Academy.  The Academy has two contracts  totaling
$120,000 of which $27,500 was earned in the second  quarter of 2005. The Academy
recognizes revenues when services are provided.


                                       7

<PAGE>

3.   Securities owned
     ----------------

     Securities   owned  consist  of  portfolio   positions   held  for  capital
appreciation,  all of which are  valued at fair  value.  The fair  values of the
portfolio  positions  generally  are based on listed  market  prices.  If listed
market prices are not indicative of fair value or if  liquidating  the Company's
position  would  reasonably be expected to impact market  prices,  fair value is
determined  based on other  relevant  factors.  Among the factors  considered by
management  in  determining  fair  value  of the  portfolio  positions  are  the
financial condition,  asset composition and operating results of the issuer, the
long-term business potential of the issuer and other factors generally pertinent
to the valuation of investments. The fair value of these investments are subject
to a high degree of volatility and may be susceptible to significant fluctuation
in the near term.

     Securities  owned as of June 30, 2005,  consisting  of portfolio  positions
(equity securities) held for capital appreciation consist of the following:

                                                                        %
                                                       Value          Owned
                                                       -----          -----
                                                    (in $000's)
    Marketable equity securities:
      Portfolio positions of greater
        than 5% of outstanding common stock:
          Golf Rounds.com, Inc. (193,800 shares)       $   122         5.6%
      All other portfolio positions                        386
                                                       -------
    Aggregate market                                   $   508
                                                       =======

     Securities  owned which are not valued at listed  market prices at June 30,
2005 amounted to $122,000.

4.   Income taxes
     ------------

     The  components  of income tax expense  for the three and six months  ended
June 30, 2005 and 2004 are as follows ($000 Omitted):

                                       Three Months            Six Months
                                      Ended June 30,          Ended June 30,
                                      --------------          --------------
                                       2005    2004            2005    2004
                                       ----    ----            ----    ----
Federal-Current                        $  -    $  -            $  4    $  -
State-Current                             2       1              18      17
Deferred                                  -       -               -       -
                                       ----    ----            ----    ----
Total                                  $  2    $  1            $ 22    $ 17
                                       ====    ====            ====    ====

5.   Capital Stock Activity
     ----------------------

     On April 16, 2004 the Board of Directors approved a two for one stock split
in the form of a 100% stock  dividend.  The record  date was April 30,  2004 and

                                       8

<PAGE>

distribution date was May 3, 2004.  Accordingly,  all share information has been
restated.

     On March 10,  2005 the Company  declared a dividend of $.30 per share.  The
record date for the  dividend was March 21, 2005 and the  distribution  date was
April 5, 2005.

     Common Stock Repurchases
     ------------------------

     In August 2004, the Board of Directors  approved a plan to repurchase up to
200,000 shares of the Company's  common stock at prices deemed  favorable in the
open  market  or  in  privately   negotiated   transactions  subject  to  market
conditions,  the Company's  financial position and other  considerations.  As of
June 30, 2005, 77,608 shares under this plan have been repurchased, canceled and
returned to the status of authorized but unissued shares.

6.   Net Income Per Share
     --------------------

     The Company reports income per share under the requirements of Statement of
Financial  Accounting  Standards No. 128, "Earnings per Share". Basic income per
share includes the weighted average number of common shares  outstanding  during
the year.  Diluted  income per share  includes  the weighted  average  number of
shares  outstanding and dilutive  potential common shares,  such as warrants and
options.  Since there are no dilutive potential common shares, basic and diluted
earnings per share are the same.

     Cortech Stock Options Plans
     ---------------------------

     Cortech has issued certain common stock options to its employees, directors
and  consultants.  At June 30, 2005  Cortech had 366,210  common  stock  options
outstanding.  Any  exercises of these common stock options could have a dilutive
effect on the percentage of Cortech owned by the Company.

     Cortech applies Accounting  Principles Board ("APB") Opinion 25 and related
interpretations in accounting for its options. Accordingly, no compensation cost
has been  recognized for stock options  issued.  Had  compensation  cost for the
issued stock options been determined  based upon the fair values at the dates of
awards under those plans  consistent  with the method of FASB Statement 123, the
Company's net income and net income per share would have been reduced to the pro
forma amounts indicated below:







                                       9

<PAGE>

                                Three Months Ended           Six Months Ended
                                      June 30,                    June 30,
                                ------------------           ------------------
                                2005          2004           2005          2004
                                ----          ----           ----          ----
Net income (loss)(in $000's)
   As reported                 ($275)        ($178)         ($246)         $  9
   Proforma compensation
    expense                    (  16)        (  16)         (  32)        (  32)
                                ----          ----           ----          ----
   Pro forma                   ($291)        ($194)         ($278)        ($ 23)
                                ====          ====           ====          ====

Basic and fully diluted
 net loss per share
   As reported                 ($.10)        ($.06)         ($.09)         $  -
   Pro forma                   ($.10)        ($.06)         ($.10)        ($.01)

7.   Investment Company Act of 1940
     ------------------------------

     The Company  believes that a large portion of its assets have been invested
in assets that would not be classified as  "investment  securities" as such term
is defined in the  Investment  Company Act of 1940,  as amended (the "1940 Act")
and that  the  Company  would  not be  required  to  register  under  that  Act.
Nevertheless,  if the Company were deemed to be an investment  company under the
1940 Act, it would be required to  register as an  investment  company  with the
Securities  and Exchange  Commission  and would become subject to the regulatory
duties  and  restrictions  of the  1940  Act,  including,  but not  limited  to,
restrictions on:

         o  operating methods;
         o  management structure;
         o  capital structure and debt issuance;
         o  issuance of dividends; and
         o  transactions with affiliates

     These  restrictions  would require the Company to significantly  change the
manner in which it conducts its operations  and require it to incur  significant
expenses  for which it has not  provided.  This would  have a  material  adverse
effect on the Company's results of operations.

     Furthermore,  if the Company were deemed to be an  unregistered  investment
company,  it would be  subject to  substantial  restrictions  on its  ability to
conduct its present  business  activities  unless it became  registered with the
Securities  and  Exchange  Commission.  These  restrictions  would  also  have a
material adverse effect on the Company's results of operations.

     The Company intends to engage primarily in a business other than that of an
investment  company and,  unless an exclusion  from the definition of investment
company under the 1940 Act is available to it, the Company intends on taking all

                                       10

<PAGE>

action  necessary to prevent it from being deemed an investment  company  within
the time  permitted by the 1940 Act. This may include  reducing the value of the
"investment  securities"  that the Company  holds as a  percentage  of its total
assets and any other  actions  that the Company  deems to be  appropriate.  This
reduction  could  be  achieved  in a  number  of  ways,  including  through  the
disposition of "investment  securities"  and the  acquisition of  non-investment
security assets.  If the Company is required to sell "investment  securities" it
may be forced to sell them sooner than it otherwise would and these dispositions
may be made  under  unfavorable  market  conditions  resulting  in losses to the
Company.

     Currently, the Company believes that its 50.06% ownership in Cortech is its
primary  business,  and that it will not be deemed to be an  investment  company
under the 1940 Act.

8.   Legal Proceedings
     -----------------

     By letter dated May 24, 2005, the Texas Commission on Environmental Quality
("TCEQ") advised Texas American  Petrochemicals,  Inc.  ("TAPI"),  that it was a
person  responsible for solid waste at a hazardous waste site in Texas.  TAPI is
an inactive  subsidiary of the Company with no assets.  The TCEQ determined that
the amount owed to the State of Texas for remediation is $2,459,593.92  and that
failure to pay that amount would result in the matter being referred to the TCEQ
Litigation  Division.  It is not  clear at this time  whether  the claim has any
merit and based on advice of counsel, the Company did not respond to the letter.

9.   Recent Accounting Standards
     ---------------------------

     In May 2005,  the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement 154,  "Accounting Changes and Error Corrections,  a replacement of APB
Opinion No. 20 and FASB  Statement No. 3." The standard  requires  retrospective
application  to prior  periods'  financial  statements of a voluntary  change in
accounting principle unless it is deemed impracticable. The standard states that
a change in method of  depreciation,  amortization  or depletion for long-lived,
non-financial assets be accounted for as a change in accounting estimate that is
affected by a change in  accounting  principle.  The standard is  effective  for
accounting  changes and  corrections  of errors made  occurring  in fiscal years
beginning  after  December  15,  2005.  The  adoption of  Statement of Financial
Accounting  Standards ("SFAS") No. 154 is not expected to have a material impact
on the Company's financial position or results of operations.

     In December 2004, the FASB issued Statement 123 (revised 2004),"Share-Based
Payment (SFAS 123R)." The standard eliminates the disclosure-only election under
the prior SFAS 123 and  requires the  recognition  of  compensation  expense for
stock options and other forms of equity  compensation based on the fair value of


                                       11

<PAGE>

the instruments on the date of grant. The standard is effective for fiscal years
beginning  after June 15, 2005.  The Company is currently  assessing  the impact
that SFAS 123R will have on the results of operations,  financial  positions and
cash flows.

10.  Subsequent Event
     ----------------

     On July 22, 2005,  Cortech  received  notice from The Nasdaq Stock  Market,
Listing Qualifications Department,  that the staff had determined that Cortech's
securities  would  be  de-listed  from The  Nasdaq  SmallCap  Market.  Cortech's
securities were de-listed at the opening of business on August 2, 2005.  Cortech
did not appeal the staff's determination.

     The staff's  determination,  by letter  dated July 22,  2005,  was based on
Nasdaq  Marketplace  Rules 4300 and  4330(a)(3),  which provides  generally that
Nasdaq may apply more stringent  criteria to preserve and strengthen the quality
and  integrity of the Nasdaq  Stock Market and which gives Nasdaq  discretionary
authority over continued inclusion of securities in The Nasdaq Stock Market. The
staff stated its belief that  Cortech  does not have an  operating  business and
that the company is a public shell.

     As of August 2, 2005, Cortech's common stock is quoted on The Pink Sheets.



















                                       12

<PAGE>

Item 2.    Management's  Discussion  and  Analysis  of  Financial  Condition and
-------    ---------------------------------------------------------------------
           Results of Operations
           ---------------------

     The following  discussion and analysis  should be read in conjunction  with
the Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004, of
Kent Financial Services, Inc. ("Kent" or the "Company") as well as the Company's
financial  statements  and notes thereto  included  elsewhere in this  Quarterly
Report on Form 10-QSB.  When used in this  discussion,  the word  "expects"  and
similar expressions are intended to identify  forward-looking  statements.  Such
statements  are  subject  to risks and  uncertainties  that could  cause  actual
results  to  differ  materially  from  those  projected.   The   forward-looking
statements  contained  herein  speak  only as of the date  hereof.  The  Company
expressly  disclaims  any  obligation  or  undertaking  to release  publicly any
updates or  revisions  to any  forward-looking  statements  contained  herein to
reflect any change in the  Company's  expectations  with  regard  thereto or any
change in events,  conditions or  circumstances  on which any such  statement is
based.

Results of Operations
---------------------

     The Company recorded a net loss of $275,000, or $.10 basic and diluted loss
per share,  for the three months  ended June 30, 2005  compared to a net loss of
$178,000,  or $.06 basic and diluted loss per share, for the comparable  quarter
in 2004. For the six months ended June 30, 2005,  the net loss was $246,000,  or
$.09 basic and diluted loss per share, compared to net income of $9,000, or $.00
basic and diluted income per share, for the comparable period in 2004. Per share
earnings have been adjusted to reflect a 100% stock  dividend which was effected
in April 2004.

     Net investing  losses were $83,000 and $30,000 for the three and six months
ended June 30, 2005,  respectively,  compared to net investing losses of $25,000
and net investing gains of $17,000 for the comparable periods in 2004. These net
investing  gains and  losses  are the  result of  changes  in the fair  value of
portfolio positions.

     Management fees decreased in 2005 compared to 2004 due to the consolidation
of Cortech and General Devices.

     Equity in the losses of Cortech of $83,000  were  recorded  in 2004 for the
period  prior  to the  acquisition  of  Cortech  and  its  consolidation  in the
financial statements of the Company.

     Interest, dividends and other income increased to $146,000 and $386,000 for
the three and six months  ended June 30,  2005,  respectively,  from $38,000 and
$266,000 for the three and six months ended June 30, 2004, respectively. For the
three  months  ended June 30, 2005  interest  income  increased  to $95,000 from


                                       13

<PAGE>

$5,000 for the three months ended June 30, 2004,  due primarily to the inclusion
of Cortech in the Company's  consolidated  financial statements.  Cortech earned
interest  income of $77,000 in the quarter  ended June 30,  2005.  Other  income
increased  to $51,000 for the quarter  ended June 30, 2005 from  $33,000 for the
quarter  ended June 30,  2004.  Other income for the three months ended June 30,
2005 included $30,000 in consulting fees earned from T.R. Winston & Company, LLC
("Winston") a former subsidiary of the Company,  and $27,500 earned for programs
held by The Academy.  The Academy has two contracts  totaling  $120,000 of which
$27,500  was  earned in the  second  quarter  of 2005.  The  Academy  recognizes
revenues  when  services are  provided.  Other income for the three months ended
June 30, 2004 consisted  primarily of rental income of $27,000.  The Company has
not received rental income since the sale of its building in August 2004.

     For the six  months  ended  June 30,  2005  interest  income  increased  to
$176,000  from $10,000 for the six months ended June 30, 2004,  due primarily to
the inclusion of Cortech in the  Company's  consolidated  financial  statements.
Cortech  earned  interest  income of $141,000  in the six months  ended June 30,
2005.  Other income decreased to $210,000 for the six months ended June 30, 2005
from  $256,000 for the six months ended June 30, 2004.  Other income for the six
months  ended June 30,  2005  included  $116,000  in fees  earned for  providing
administrative services to a non-affiliated company,  $60,000 in consulting fees
earned from Winston and $27,500 in fees earned for programs held by The Academy.
Other  income for the six months ended June 30, 2004  included  $202,000 in fees
earned for providing  administrative  services to a  non-affiliated  company and
rental income of $54,000.  The Company has not received  rental income since the
sale of its building in August 2004.

     General and administrative  expenses increased to $343,000 and $617,000 for
the three and six month  periods  ended June 30, 2005 from $179,000 and $399,000
for the same periods in 2004, due principally to the  consolidation of Cortech's
expenses and General Devices expenses in the financial statements. For the three
and six  months  ended  June 30,  2005,  Cortech's  general  and  administrative
expenses were $51,000 and $90,000, respectively.  From the date of consolidation
of General  Devices,  $34,000 of general and  administrative  expenses have been
included in the consolidated financial statements.  Additionally, as a result of
consolidating  General Devices,  the Company recognized a loss of its investment
of approximately $83,000.

Liquidity and Capital Resources
-------------------------------

     The  Company  had cash and  cash  equivalents  (U.S.  Treasury  bills  with
original  maturities  of ninety days or less) of  approximately  $14 million and
securities owned of approximately  $508,000 at June 30, 2005.  Substantially all
securities are owned by AVF.  Securities  carried at fair value of $122,000 were
valued based on management's  estimates.  These securities are subject to a high
degree of volatility and may be  susceptible  to significant  fluctuation in the

                                       14

<PAGE>

near term.  The  remainder of the  securities  owned are valued at quoted market
prices.

     Net cash provided by  operations  was $670,000 in the six months ended June
30, 2005 compared to net cash used in  operations of $352,000 in the  comparable
period of 2004.  For the six month period  ended June 30, 2005,  the net loss of
$246,000  was offset by increases  in accounts  payable and accrued  expenses of
$113,000 and decreases in securities owned of $624,000, other assets of $129,000
and unrealized  losses on securities owned of $74,000.  For the six month period
ended June 30, 2004, the increase in securities  owned of $523,000 offset by the
increase in accounts  payable and accrued  expenses of $110,000 were the primary
reasons for the cash used in the period.

     Net cash provided by investing  activities  was $124,000 for the six months
ended June 30, 2005  compared to net cash  provided by investing  activities  of
$10.9  million in the six months  ended June 30,  2004.  Net cash of $50,000 was
acquired  through the  consolidation of The Academy in the first quarter of 2005
and net cash of  $74,000  was  acquired  through  the  consolidation  of General
Devices in the second quarter of 2005. Net cash of approximately $11 million was
acquired through the consolidation of Cortech in 2004.

     Net cash used in financing  activities was $933,000 and $772,000 in the six
month  periods  ended June 30,  2005 and 2004,  respectively.  For the six month
period ended June 30, 2005, $851,000 was used for the payment of a cash dividend
that was  declared  in March 2005 and  $82,000  was used for the  repurchase  of
Company common stock, which was subsequently  retired.  For the six month period
ended June 30,  2004  $767,000  was used for the  repurchase  of Company  common
stock, which was subsequently  retired,  and $5,000 for payments on the mortgage
loan collateralized by the Company's  headquarters  building,  which was sold in
August 2004.

     The Company believes that its liquidity is sufficient for future operations
for the next twelve months.

Factors Which May Affect Future Results
---------------------------------------

     Future  earnings of the Company are  dependent on interest  rates earned on
the Company's invested balances, market risk, and expenses incurred.

     Market risk  represents  the  potential  loss as a result of  absolute  and
relative  price  movements in financial  instruments  due to changes in interest
rates,  foreign exchange rates, equity prices, and other factors.  The Company's
exposure to market risk is directly related to price movements of its securities
holdings.

     The fair  value of  securities  owned  at June 30,  2005 was  approximately
$508,000.  The potential change in fair value,  using a hypothetical 10% decline

                                       15

<PAGE>

in prices,  is estimated  to be a $50,800 loss as of June 30, 2005.  For working
capital  purposes,  the  Company  invests in U.S.  treasury  bills or  maintains
interest-bearing  balances in its brokerage  accounts,  which are  classified as
cash equivalents in the consolidated financial statements.

Off-Balance Sheet Arrangements
------------------------------

     The Company has no off-balance sheet arrangements.

Subsequent Event
----------------

     On July 22, 2005,  Cortech  received  notice from The Nasdaq Stock  Market,
Listing Qualifications Department,  that the staff had determined that Cortech's
securities  would  be  de-listed  from The  Nasdaq  SmallCap  Market.  Cortech's
securities were de-listed at the opening of business on August 2, 2005.  Cortech
did not appeal the staff's determination.

     The staff's  determination,  by letter  dated July 22,  2005,  was based on
Nasdaq  Marketplace  Rules 4300 and  4330(a)(3),  which provides  generally that
Nasdaq may apply more stringent  criteria to preserve and strengthen the quality
and  integrity of the Nasdaq  Stock Market and which gives Nasdaq  discretionary
authority over continued inclusion of securities in The Nasdaq Stock Market. The
staff stated its belief that  Cortech  does not have an  operating  business and
that the company is a public shell.

     As of August 2, 2005, Cortech's common stock is quoted on The Pink Sheets.




















                                       16

<PAGE>

Item 3.  -  Controls and Procedures
-------     -----------------------

     As of the end of the period  covered by this  report,  the Company  carried
out,  under  the  supervision  and  with  the  participation  of  the  Company's
management,  including its Chief Executive Officer and Chief Financial  Officer,
an evaluation of the  effectiveness of the design and operation of the Company's
disclosure  controls and  procedures (as defined in Rule 13a-15(e) and 15d-15(e)
under the  Securities  Exchange Act of 1934).  Based upon that  evaluation,  the
Chief Executive  Officer and Chief Financial  Officer  concluded that the design
and operation of these disclosure  controls and procedures are effective.  There
was no change in the Company's  internal  control over  financial  reporting (as
defined in Rule  13a-15(f) and 15d-15(f)  under the  Securities  Exchange Act of
1934) during the quarter ended June 30, 2005 that has materially affected, or is
reasonably  likely to materially  affect,  the Company's  internal  control over
financial reporting.

Compliance with Section 404 of Sarbanes-Oxley Act

     In order to achieve  compliance with Section 404 of the  Sarbanes-Oxley Act
of 2002 (the "Act") by December 31, 2006, the Company  expects to begin,  in the
fourth quarter 2005, the system and process  documentation and evaluation needed
to comply with Section 404.























                                       17

<PAGE>

PART II  -  OTHER INFORMATION
-------     -----------------
ITEM 1.     Legal Proceedings
-------     -----------------

Texas American Petrochemicals, Inc. ("TAPI")
--------------------------------------------

     By letter dated May 24, 2005, the Texas Commission on Environmental Quality
("TCEQ") advised Texas American  Petrochemicals,  Inc.  ("TAPI"),  that it was a
person  responsible for solid waste at a hazardous waste site in Texas.  TAPI is
an inactive  subsidiary of the Company with no assets.  The TCEQ determined that
the amount owed to the State of Texas for remediation is $2,459,593.92  and that
failure to pay that amount would result in the matter being referred to the TCEQ
Litigation  Division.  It is not  clear at this time  whether  the claim has any
merit and based on advice of counsel, the Company did not respond to the letter.

ITEM 2.     Unregistered Sales of Equity Securities and Use of Proceeds
-------     -----------------------------------------------------------

Purchase of Equity Securities
-----------------------------

     In August 2004, the Board of Directors  approved a plan to repurchase up to
200,000 shares of the Company's common stock.  This plan has no expiration date.
The  following  table  sets  forth  certain   information  about  the  Company's
repurchase of shares under this Plan during the quarter ended June 30, 2005.

              SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES
                   (COMMON STOCK-AUGUST 2004 REPURCHASE PLAN)

                                                   (c) Total
                                                    Number of      (d) Maximum
                                                     Shares          Number of
                                                  Purchased as      Shares that
                                                     Part of        May Yet Be
                   (a) Total                        Publicly        Purchased
                   Number of         (b)            Announced       Under the
                     Shares      Average Price      Plans or        Plans or
  Period           Purchased     Paid per Share     Programs        Programs
--------------------------------------------------------------------------------



April 1, 2005 -        295           $ 2.34            295           141,632
April 30, 2005

May 1, 2005 -        2,498             2.23          2,498           139,134
May 31, 2005

June 1, 2005 -      16,742             2.23         16,742           122,392
June 30, 2005

Total               19,535           $ 2.23         19,535           122,392



                                       18

<PAGE>

ITEM 3.     Defaults Upon Senior Securities
-------     -------------------------------

     None.

ITEM 4.     Submission of Matters to a Vote of Security Holders
-------     ---------------------------------------------------

     None.

ITEM 5.     Other Information
-------     -----------------

     None.

Item 6.  -  Exhibits
-------     --------

            3.1        Bylaws of the Registrant, as amended. (l)

            3.2(a)     Articles of Incorporation of Registrant, as amended
                       (including certificate of stock designation for $2.575
                       Cumulative Convertible Exchangeable Preferred Stock).
                       (2)

            3.2(b)     Certificate of Amendment to Certificate of Incorpora-
                       tion. (3)

            3.2(c)     Certificate of Amendment to Certificate of Incorporation
                       dated September 26, 1991. (4)

            31.1       Certification pursuant to Section 302 of the Sarbanes-
                       Oxley Act of 2002 *

            31.2       Certification pursuant to Section 302 of the Sarbanes-
                       Oxley Act of 2002 *

            32         Certification pursuant to Section 906 of the Sarbanes-
                       Oxley Act of 2002 *
------------------
*   Filed herewith.

(1)  Incorporated by reference to Texas American Energy Corporation Registration
     Statement, as amended, on Form S-l, No. 33-11109.
(2)  Incorporated by reference to Texas American Energy  Corporation  Form 10-K,
     for the fiscal year ended December 31, 1984.
(3)  Incorporated  by reference to Texas American Energy  Corporation  Form 10-K
     for the fiscal year ended December 31, 1987.
(4)  Incorporated  by reference to Kent Financial  Services,  Inc. Form 10-Q for
     the quarter ended September 30, 1991.


                                       19

<PAGE>

                                   SIGNATURES

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

                                            KENT FINANCIAL SERVICES, INC.



Dated: August 15, 2005                      By: /s/ Sue Ann Merrill
                                                --------------------------------
                                            Sue Ann Merrill
                                            Chief Financial Officer and
                                            Secretary (Principal Financial and
                                            Accounting Officer, and officer
                                            duly authorized to sign on behalf
                                            of the small business issuer)

































                                       20

<PAGE>

                                                                   EXHIBIT 31.1
                      CERTIFICATION PURSUANT TO SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002

I,   Paul O. Koether, certify that:

1.   I have  reviewed  this  quarterly  report on Form 10-QSB of Kent  Financial
     Services, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the small  business  issuer as of, and for,  the periods  presented in this
     report;

4.   The small business issuer's other certifying  officer and I are responsible
     for  establishing  and maintaining  disclosure  controls and procedures (as
     defined  in  Exchange  Act Rules  13a-15(e)  and  15d-15(e))  for the small
     business issuer and have:

     a)   designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision, to ensure that material information relating to the small
          business  issuer,  including its  consolidated  subsidiaries,  is made
          known to us by others within those entities,  particularly  during the
          period in which this report is being prepared;

     b)   evaluated the effectiveness of the small business issuer's  disclosure
          controls and procedures  and presented in this report our  conclusions
          about the effectiveness of the disclosure controls and procedures,  as
          of the  end of the  period  covered  by  this  report  based  on  such
          evaluation; and

     c)   disclosed  in this  report any change in the small  business  issuer's
          internal  control over financial  reporting  that occurred  during the
          small business issuer's most recent fiscal quarter (the small business
          issuer's  fourth fiscal  quarter in the case of an annual report) that
          has materially affected, or is reasonably likely to materially affect,
          the small business issuer's internal control over financial reporting;
          and


5.   The small business issuer's other certifying  officer and I have disclosed,
     based on our most recent  evaluation  of internal  control  over  financial
     reporting,  to the small business issuer's auditors and the audit committee
     of the small business  issuer's  board of directors (or persons  performing
     the equivalent functions):

     a)   all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the small  business  issuer's
          ability   to  record,   process,   summarize   and  report   financial
          information; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a significant  role in the small business  issuer's
          internal control over financial reporting.


August 15, 2005                                  /s/ PAUL O. KOETHER
                                                 -------------------------------
                                                 Paul O. Koether
                                                 Chairman and President

<PAGE>

                                                                   EXHIBIT 31.2
                      CERTIFICATION PURSUANT TO SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002

I,   Sue Ann Merrill, certify that:

1.   I have  reviewed  this  quarterly  report on Form 10-QSB of Kent  Financial
     Services, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the small  business  issuer as of, and for,  the periods  presented in this
     report;

4.   The small business issuer's other certifying  officer and I are responsible
     for  establishing  and maintaining  disclosure  controls and procedures (as
     defined  in  Exchange  Act Rules  13a-15(e)  and  15d-15(e))  for the small
     business issuer and have:

     a)   designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision, to ensure that material information relating to the small
          business  issuer,  including its  consolidated  subsidiaries,  is made
          known to us by others within those entities,  particularly  during the
          period in which this report is being prepared;

     b)   evaluated the effectiveness of the small business issuer's  disclosure
          controls and procedures  and presented in this report our  conclusions
          about the effectiveness of the disclosure controls and procedures,  as
          of the  end of the  period  covered  by  this  report  based  on  such
          evaluation; and

     c)   disclosed  in this  report any change in the small  business  issuer's
          internal  control over financial  reporting  that occurred  during the
          small business issuer's most recent fiscal quarter (the small business
          issuer's  fourth fiscal  quarter in the case of an annual report) that
          has materially affected, or is reasonably likely to materially affect,
          the small business issuer's internal control over financial reporting;
          and

5.   The small business issuer's other certifying  officer and I have disclosed,
     based on our most recent  evaluation  of internal  control  over  financial
     reporting,  to the small business issuer's auditors and the audit committee
     of the small business  issuer's  board of directors (or persons  performing
     the equivalent functions):

     a)   all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the small  business  issuer's
          ability   to  record,   process,   summarize   and  report   financial
          information; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a significant  role in the small business  issuer's
          internal control over financial reporting.


August 15, 2005                                  /s/ SUE ANN MERRILL
                                                 -------------------------------
                                                 Sue Ann Merrill
                                                 Chief Financial Officer
                                                 and Secretary

<PAGE>

                                                                     Exhibit 32

 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION
                      906 OF THE SARBANES-OXLEY ACT OF 2002


Pursuant to Section 906 of the Public  Company  Accounting  Reform and  Investor
Protection  Act of 2002 (18 U.S.C.  1350,  as  adopted),  Paul O.  Koether,  the
Chairman and President of Kent Financial  Services,  Inc., (the "Company"),  and
Sue Ann Merrill,  the Chief Financial  Officer and Secretary of the Company each
hereby certifies that, to the best of his or her knowledge:

     1.   The  Quarterly  Report on Form  10-QSB of the  Company  for the period
          ended June 30, 2005, (the "Quarterly Report"), fully complies with the
          requirements  of  Section  13(a) or  Section  15(d) of the  Securities
          Exchange Act of 1934, as amended;

     and

     2.   The information  contained in the Quarterly Report fairly presents, in
          all  material  respects,   the  financial  condition  and  results  of
          operations of the Company.


Dated:   August 15, 2005


/s/ Paul O. Koether
-------------------------------------
Paul O. Koether
Chairman and President



/s/ Sue Ann Merrill
------------------------------------
Sue Ann Merrill
Chief Financial Officer and Secretary