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:  September 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
                                       -----    -----

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).

                                    Yes       No  X
                                        -----   -----

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court.

                                    Yes       No
                                        -----   -----

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares  outstanding of each of the issuer's  classes of
common stock as of the latest  practicable  date:  As of October 31,  2005,  the
issuer  had  2,815,374  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
                               SEPTEMBER 30, 2005
                                   (UNAUDITED)
                                 ($000 Omitted)
ASSETS
------

Current Assets:
  Cash and cash equivalents                                          $ 13,934
  Securities owned                                                        383
  Other current assets                                                     44
                                                                     --------
    Total current assets                                               14,361
Property and equipment:
  Office furniture and equipment                                            6
  Accumulated depreciation                                          (       4)
                                                                     --------
    Net property and equipment                                              2
Goodwill                                                                   90
                                                                     --------
    Total assets                                                     $ 14,453
                                                                     ========

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

Current liabilities:
  Accounts payable and accrued expenses                              $    901
  Accrual for previously discontinued operations                          166
                                                                     --------
    Total liabilities                                                   1,067
                                                                     --------

Contingent liabilities

Minority interest in subsidiaries                                       5,755

Stockholders' equity:
Preferred stock without par value;
  500,000 shares authorized;
  none outstanding                                                          -
Common stock, $.10 par value;
  4,000,000 shares authorized;
  2,816,762 shares issued and outstanding                                 282
Additional paid-in capital                                             12,408
Accumulated deficit                                                 (   5,059)
                                                                     --------
    Total stockholders' equity                                          7,631
                                                                     --------
    Total liabilities and stockholders' equity                       $ 14,453
                                                                     ========


     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
                                                        September 30,
                                                   ----------------------
                                                     2005          2004
                                                   --------      --------
Revenues:
  Investing losses                                ($   125)      ($    54)
  Management fee income                                  -             12
  Interest income                                      102             45
  Other income                                          76             53
  Other Revenues:
    Gain on sale of property                             -            845
    Gain on sale of T. R. Winston                        -             71
                                                   -------        -------
      Total revenues                                    53            972
                                                   -------        -------

Expenses:
  General and administrative                           244            208
  Interest                                               -             10
                                                   -------        -------
      Total expenses                                   244            218
                                                   -------        -------

Income (loss) before income taxes                 (    191)           754
Provision for income taxes                               -             39
                                                   -------        -------
Income (loss) before minority interest            (    191)           715
Minority interest in subsidiaries losses                10             24
                                                   -------        -------
Net income (loss)                                 ($   181)       $   739
                                                   =======        =======

Basic and diluted net income (loss) per
  common share                                    ($   .06)       $   .26
                                                   =======        =======

Basic and diluted weighted average number of
  common shares outstanding (in 000's)               2,817          2,887
                                                   =======        =======








     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)



                                                         Nine Months Ended
                                                            September 30,
                                                       ---------------------
                                                         2005         2004
                                                       --------     --------

Revenues:
  Investing losses                                    ($   155)     ($    37)
  Management fee income                                     12           126
  Equity in earnings of T. R. Winston                        -           138
  Pre-acquisition equity in loss of Cortech                  -      (     83)
  Interest income                                          278            56
  Other income                                             286           308
  Other Revenues:
    Gain on sale of property                                 -           845
    Gain on sale of T. R. Winston                            -            71
                                                       -------       -------
      Total revenues                                       421         1,424
                                                       -------       -------

Expenses:
  General and administrative                               861           607
  Interest                                                   -            37
                                                       -------       -------
      Total expenses                                       861           644
                                                       -------       -------

Income (loss) before income taxes                     (    440)          780
Provision for income taxes                                  22            56
                                                       -------       -------
Income (loss) before minority interest                (    462)          724
Minority interest in subsidiaries losses                    35            24
                                                       -------       -------
Net income (loss)                                     ($   427)      $   748
                                                       =======       =======

Basic and diluted net income (loss)
  per common share                                    ($   .15)      $   .25
                                                       =======       =======

Basic and diluted weighted average number of
  common shares outstanding (in 000's)                   2,830         2,943
                                                       =======       =======






     See accompanying notes to condensed consolidated financial statements.


                                       4

<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 ($000 Omitted)
                                                             Nine Months Ended
                                                                September 30,
                                                           ---------------------
                                                             2005         2004
                                                           --------     --------
Cash flows from operating activities:
 Net income (loss)                                        ($    427)   $    748
 Adjustments to reconcile net income (loss)
  to net cash provided by (used in) operating activities:
    Depreciation                                                  1          20
    Unrealized losses on securities owned                       198          81
    Equity in earnings of T. R. Winston                           -   (     138)
    Pre-acquisition equity in loss of Cortech                     -          83
    Gain on sale of property                                      -   (     845)
    Gain on sale of T. R. Winston                                 -   (      71)
    Minority interest in subsidiaries losses              (      35)  (      24)
 Changes in operating assets and liabilities:
  Change in securities owned                                    624   (     793)
  Change in accounts payable and
   accrued expenses                                              85         102
  Change in other assets                                        141   (     330)
  Other, net                                                      -   (      84)
                                                           --------    --------
   Net cash provided by (used in) operating activities          587   (   1,251)
                                                           --------    --------

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           -
 Proceeds from sale of property                                   -       1,811
 Proceeds from sale of T. R. Winston                              -         520
 Investment in T. R. Winston                                      -   (      53)
 Purchase of equipment                                            -   (       4)
 Other, net                                                       -           3
                                                           --------    --------
  Net cash provided by investing activities                     124      13,269
                                                           --------    --------

Cash flows from financing activities:
 Dividends paid                                           (     851)          -
 Repurchase of common stock                               (      82)  (     867)
 Payments on debt                                                 -   (     658)
                                                           --------    --------
  Net cash used in financing activities                   (     933)  (   1,525)
                                                           --------    --------

Net increase (decrease) in cash and cash equivalents      (     222)     10,493
Cash and cash equivalents at beginning of period             14,156       3,737
                                                           --------    --------
Cash and cash equivalents at end of period                 $ 13,934    $ 14,230
                                                           ========    ========

Supplemental disclosure of cash flow information:
 Cash paid for:
   Interest                                                $      -    $     37
                                                           ========    ========
   Taxes                                                   $     11    $     11
                                                           ========    ========
 Non-cash put option liability                             $      -   ($    390)
                                                           ========    ========

     See accompanying notes to condensed consolidated financial statements.

                                       5

<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 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 September
30, 2005 and for the three and nine month periods  ended  September 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 nine  month  periods  ended
September 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.

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

     Through  AVF,  Kent  also  owned 44% of  General  Devices,  Inc,  ("General
Devices").  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  may be required  for the business  activities  of General
Devices for the next twelve  months.  The Board of Directors of General  Devices
authorized  the sale of  additional  shares of its common  stock to provide  the
required  liquidity.  During the second  quarter of 2005,  AVF orally  agreed to
purchase  sufficient  shares to provide the required funding.  As a result,  the
Company  believed that,  under FIN 46, General  Devices was a variable  interest
entity and the Company was 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.  In October  2005,  the
Company sold its interest in General Devices. (See Note 10.)

     At September 30, 2005,  General  Devices,  a publicly traded  company,  had
assets,  consisting primarily of cash, of $54,472,  accounts payable and accrued
liabilities of $10,899 and stockholders'  equity of $43,573. For the nine months
ended September 30, 2005, General Devices reported a net loss of $68,137,  which
consisted  solely of operating  expenses,  of which $36,000 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

                                       7

<PAGE>

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.  At September 30, 2005, The Academy had
two contracts totaling $120,000 of which $29,500 was earned in the third quarter
of 2005 and  $27,500  was earned in the  second  quarter  of 2005.  The  Academy
recognizes revenues when services are provided.

     Additionally,  the Company provides  administrative and consulting services
to certain non-affiliated companies.

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  September  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)     $   118           5.6%
      All other portfolio positions                      265
                                                     -------
    Aggregate market                                 $   383
                                                     =======

     Securities  owned which are not valued at listed market prices at September
30, 2005, of $118,000, consist of GolfRounds.com, Inc.






                                       8

<PAGE>

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

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

                                  Three Months                Nine Months
                               Ended September 30,        Ended September 30,
                               -------------------        -------------------
                               2005           2004        2005           2004
                               ----           ----        ----           ----

Federal-Current               ($  5)          $  -       ($  1)          $  -
State-Current                     5             39          23             56
                               ----           ----        ----           ----
  Total                        $  -           $ 39        $ 22           $ 56
                               ====           ====        ====           ====

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
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
September  30,  2005,  77,612  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 September 30, 2005 Cortech had 365,881 common stock options


                                       9

<PAGE>

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:

                                Three Months Ended           Nine Months Ended
                                   September 30,                September 30,
                                ------------------           -----------------
                                2005          2004           2005         2004
                                ----          ----           ----         ----
Net income (loss)(in $000's)
   As reported                 ($181)         $739          ($427)        $748
   Proforma compensation
    expense                    (  16)        (  16)         (  47)       (  47)
                                ----          ----           ----         ----
   Pro forma                   ($197)         $723          ($474)        $701
                                ====          ====           ====         ====

Basic and fully diluted
 net income (loss) per share
   As reported                 ($.06)         $.26          ($.15)        $.25
   Pro forma                   ($.07)         $.25          ($.17)        $.24

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 restrictions that
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.  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.

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


                                       10

<PAGE>

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.  The Company has been advised by its environmental  counsel
that it has good legal  arguments to support its position  that it should not be
subject  to  liability  for  the  remediation  costs  of the  site,  however  no
assurances can be made as to the outcome of this matter.

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 Company is not able to assess,  at this
time, the future impact of this statement on its consolidated financial position
or consolidated 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
the instruments on the date of grant. The standard is effective for fiscal years
beginning  after  September  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 October 18, 2005 the Company  sold its  investment  in General  Devices,
Inc.  held by AVF,  for  approximately  $343,000,  recording  a pre-tax  gain of
approximately $307,000.






                                       11

<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 $181,000, or $.06 basic and diluted loss
per share,  for the three months ended September 30, 2005 compared to net income
of  $739,000,  or $.26 basic and diluted  income per share,  for the  comparable
quarter in 2004. For the nine months ended  September 30, 2005, the net loss was
$427,000,  or $.15 basic and diluted  loss per share,  compared to net income of
$748,000,  or $.25 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  $125,000  and  $155,000 for the three and nine
months ended September 30, 2005, respectively,  compared to net investing losses
of $54,000 and $37,000 for the comparable  periods in 2004.  These net investing
losses are the result of changes in the fair value of portfolio positions.

     Management  fees  decreased  in  2005  compared  to  2004  because  of  the
elimination of the fees due to the  consolidation of Cortech and General Devices
at June 30, 2004 and April 1, 2005, respectively.

     Equity in the losses of Cortech of $83,000 were recorded in the nine months
ended  September 30, 2004 for the period prior to the acquisition of Cortech and
its  consolidation in the financial  statements of the Company and equity in the
earnings of T. R. Winston and Company LLC  ("Winston")  of $138,000 was recorded
in the nine months ended  September  30, 2004 prior to the sale of the Company's
interest in Winston in August 2004.



                                       12
<PAGE>

     For the three months ended September 30, 2005, interest income increased to
$102,000  from  $45,000 for the three  months  ended  September  30,  2004,  due
primarily to higher yields on  investments.  Interest is earned on cash in banks
and on cash equivalents (U.S. treasury bills with original maturities of 90 days
or less).

     Other income  increased to $76,000 for the three months ended September 30,
2005 compared to $53,000 for the three months ended  September  30, 2004.  Other
income  for the three  months  ended  September  30,  2005  included  $30,000 in
consulting  fees earned from Winston and $29,500 earned for programs held by The
Academy. Additionally,  Cortech earned $10,000 from a patent licensing agreement
and the Company received $6,000 in fees for providing administrative services to
a non-affiliated  company. Other income for the three months ended September 30,
2004 consisted primarily of $20,000 in fees earned for providing  administrative
services to a  non-affiliated  company,  $15,000 in consulting  fees earned from
Winston and rental income of $13,000. The Company has not received rental income
since the sale of its building in August 2004.

     For the nine months ended September 30, 2005,  interest income increased to
$278,000  from  $56,000  for the nine  months  ended  September  30,  2004,  due
primarily to the  inclusion of Cortech in the Company's  consolidated  financial
statements since June 30, 2004 and higher yields on investments.

     Other income  decreased to $286,000 for the nine months ended September 30,
2005 from $308,000 for the nine months ended  September  30, 2004.  Other income
for the nine months ended  September 30, 2005  included  $122,000 in fees earned
for providing  administrative services to a non-affiliated  company,  $90,000 in
consulting fees earned from Winston and $57,000 in fees earned for programs held
by The  Academy.  Other  income for the nine  months  ended  September  30, 2004
included  $222,000 in fees  earned for  providing  administrative  services to a
non-affiliated  company, rental income of $66,000 and $15,000 in consulting fees
earned from Winston.  The Company has not received  rental income since the sale
of its building in August 2004.

     General  and  administrative  expenses  increased  to $244,000 in the third
quarter of 2005,  from $208,000 in the third  quarter of 2004,  due primarily to
the  inclusion  of  General  Devices  in the  Company's  consolidated  financial
statements.  In the third  quarter of 2005,  General  Devices  had  general  and
administrative expenses of approximately $22,000.

     For the nine months ended  September 30, 2005,  general and  administrative
expenses  increased to $861,000 from  $607,000 for the same period in 2004,  due
primarily to the  inclusion of Cortech in the Company's  consolidated  financial
statements since June 30, 2004. Cortech had general and administrative  expenses
of  approximately  $261,000  in the  first  six  months  of 2004  which  are not

                                       13

<PAGE>

consolidated in the accompanying financial statements of the Company.

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 $383,000 at September 30, 2005.  Substantially
all  securities are owned by AVF.  Securities  carried at fair value of $118,000
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 near term. The remainder of the securities owned are valued at quoted market
prices.

     Net cash  provided by  operations  was  $587,000  for the nine months ended
September 30, 2005,  compared to net cash used in  operations of $1,251,000  for
the  comparable  period of 2004.  For the nine month period ended  September 30,
2005,  the cash  provided by  operations  was due  primarily  to the net loss of
$427,000  offset by decreases in securities  owned of $624,000,  other assets of
$141,000 and  unrealized  losses on securities  owned of $198,000.  For the nine
month  period ended  September  30, 2004,  the cash used in  operations  was due
primarily  to the decrease in  securities  owned of $793,000 and the increase in
other assets of $330,000.

     Net cash provided by investing  activities was $124,000 for the nine months
ended  September 30, 2005 compared to net cash provided by investing  activities
of $13.3  million for the nine months  ended  September  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. Also in 2004,
proceeds  from the sale of property  and the sale of the  Company's  interest in
Winston provided $1.8 million and $520,000, respectively.

     Net cash used in financing  activities  was $933,000 and $1,525,000 for the
nine month periods ended September 30, 2005 and 2004, respectively. For the nine
month period ended  September  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 nine
month period ended  September 30, 2004,  $867,000 was used for the repurchase of
Company common stock, which was subsequently  retired, and $658,000 was used 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.



                                       14

<PAGE>

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 September 30, 2005 was  approximately
$383,000.  The potential change in fair value,  using a hypothetical 10% decline
in prices,  is  estimated to be a $38,300  loss as of  September  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 October 18, 2005 the Company  sold its  investment  in General  Devices,
Inc.  held by AVF,  for  approximately  $343,000  recording  a  pre-tax  gain of
approximately $307,000.
















                                       15

<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 September 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,  2007,  the  Company  expects to begin,  in
fiscal  2006,  the system and process  documentation  and  evaluation  needed to
comply with Section 404.
























                                       16

<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.  The Company has been advised by its environmental  counsel
that it has good legal  arguments to support its position  that it should not be
subject  to  liability  for  the  remediation  costs  of the  site,  however  no
assurances can be made as to the outcome of this matter.

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  September  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
--------------------------------------------------------------------------------

July 1, 2005-
July 31, 2005            4             $  2.27                4        122,388

August 1, 2005-          -                   -                -        122,388
August 31, 2005

September 1, 2005-       -                   -                -        122,388
September 30, 2005

Total                    4             $  2.27                4        122,388



                                       17


<PAGE>

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

     None.

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

     The Company held its Annual  Meeting of  Stockholders  on November 8, 2005.
Management's nominees,  Messrs. Paul O. Koether,  William Mahomes, Jr., Casey K.
Tjang, and M. Michael Witte, were elected to the Board of Directors

     The following is a tabulation for all nominees:

                                     For                Withheld
                                  ---------             --------

     Paul O. Koether              1,541,658                 -
     William Mahomes, Jr.         1,541,658                 -
     Casey K. Tjang               1,541,658                 -
     M. Michael Witte             1,541,658                 -

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 *



                                       18
<PAGE>

------------------
*   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: November 14, 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.


November 14, 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.


November 14, 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  September 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:   November 14, 2005


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



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