U.S. Securities and Exchange
                        Commission Washington, D.C. 20549

                                   FORM 1O-QSB

|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

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

               For the transition period from ________ to ________

                        Commission File Number: 0-21284

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

             Delaware                                         91-1549305
---------------------------------                         ------------------
  (State or other jurisdiction                            (I.R.S. Employer
of incorporation or organization)                         Identification No.)

                                1 Clarks Hill Rd.
                              Framingham, MA. 01702
              -----------------------------------------------------
              (Address of principal executive offices and zip code)

                                 (508) 872-2625
                 -----------------------------------------------
                 (Issuer's telephone number including area code)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days: Yes |X| No |_|

The number of shares outstanding of the Registrant's Common Stock as of August
10, 2005, 31,709,491 shares.

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

================================================================================

<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                   FORM 10-QSB
                                      INDEX


<TABLE>
<CAPTION>
                                                                                      PAGE
<S>                <C>                                                                <C>
   PART I FINANCIAL INFORMATION

   Item 1.         Financial Statements

                   Balance sheets - June 30, 2005 (unaudited) and
                   December 31, 2004...................................................3

                   Statements of Operations - Three Months and Six Months Ended
                   June 30, 2005 and 2004 (unaudited)..................................4

                   Statements of Cash Flows- Six Months Ended
                   June 30, 2005 and 2004 (unaudited)..................................5

                   Notes to Financial Statements (unaudited)...........................6

   Item 2.         Management's Discussion and Analysis of Financial Condition
                   And Plan of Operation..............................................12

   Item 3.         Controls and Procedures............................................19


   PART II OTHER INFORMATION

   Item 1.         Legal Proceedings..................................................20

   Item 2.         Changes in Securities..............................................20

   Item 3.         Defaults Upon Senior Securities....................................20

   Item 4.         Submission of Matters to a Vote of Security Holders................20

   Item 5.         Other Information..................................................20

   Item 6.         Exhibits...........................................................21

   Signatures. .......................................................................22

   Certifications ....................................................................23
</TABLE>

<PAGE>

   PART I FINANCIAL INFORMATION
         Item 1. FINANCIAL STATEMENTS

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                 BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                  June 30, 2005    December 31,
                                                                                   (Unaudited)         2004
                                                                                   ------------    ------------
<S>                                                                                <C>             <C>
ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                                          $    308,122    $    148,630
Accounts receivable, net of allowance for doubtful accounts of $107,477 and
   $ 55,495                                                                              52,703         248,279
Inventories                                                                              88,967         102,027
Prepaid expenses                                                                         10,726              --
                                                                                   ------------    ------------
Total current assets                                                                    460,518         498,936

Property and equipment, net of accumulated depreciation of $538,672 and $518,675        114,711          73,269
Equipment under construction                                                            664,401         603,111
Patents and trademarks, net of accumulated amortization of $120,503 and $115,220         58,363          62,046
Deferred costs, less accumulated amortization of $198,743and $141,600                   273,257         170,400
Deposits                                                                                 13,500             800
                                                                                   ------------    ------------
 TOTAL ASSETS                                                                      $  1,584,750    $  1,408,562
                                                                                   ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Bank overdraft                                                                     $         --    $     26,953
Note payable - shareholders                                                               6,624         243,398
Accounts payable                                                                         37,384         129,222
Customer advances                                                                        13,955          18,465
Accrued expenses                                                                        185,350         356,081
Accrued payroll expense to officers                                                     181,293         161,250
Payroll and payroll taxes payable                                                       118,261          70,078
                                                                                   ------------    ------------
Total current liabilities                                                               542,867       1,005,447

LONG-TERM DEBT
Debentures payable                                                                    1,510,000              --
Note payable - shareholder                                                            1,932,099       2,069,839
                                                                                   ------------    ------------
TOTAL LIABILITIES                                                                     3,984,966       3,075,286
                                                                                   ------------    ------------
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT:
Series 1998-B Convertible Preferred Stock: 1,645 shares authorized,
none issued and outstanding                                                                  --              --
Common stock, $.001 par value, 50,000,000 shares authorized, issued
      and outstanding: 31,709,491 shares (2005) and 30,509,491 (2004)                    31,709          30,509
Additional paid-in capital                                                           43,553,856      42,073,056
Less: Deferred compensation                                                          (1,061,006)             --
Accumulated deficit                                                                 (44,924,775)    (43,770,289)
                                                                                   ------------    ------------
TOTAL SHAREHOLDERS' DEFICIT                                                          (2,400,216)     (1,666,724)
                                                                                   ------------    ------------
 TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT                                       $  1,584,750    $  1,408,562
                                                                                   ============    ============
</TABLE>


        The accompanying notes are an integral part of these statements.


                                       3
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      Three Months Ended June 30,      Six Months Ended June 30,
                                                                      ----------------------------    ----------------------------
                                                                          2005            2004            2005            2004
                                                                      ------------    ------------    ------------    ------------
<S>                                                                   <C>             <C>             <C>             <C>
REVENUES:
Product Sales                                                         $    176,534    $    375,362    $    441,007    $    655,560
Royalty Income                                                                  --              --             546             921
                                                                      ------------    ------------    ------------    ------------
                                                                           176,534         375,362         441,553         656,481
COST OF PRODUCTS SOLD                                                       56,394         167,946         150,740         241,263
                                                                      ------------    ------------    ------------    ------------
Gross profit                                                               120,140         207,416         290,813         415,218
                                                                      ------------    ------------    ------------    ------------
OPERATING EXPENSES:
Research and development                                                    84,556         155,000         161,556         365,000
Selling, general and administrative                                        308,131          79,018         663,893         152,060
Stock based compensation and employment recruiting expense-non cash        120,084              --         408,994              --
                                                                      ------------    ------------    ------------    ------------
                                                                           512,771         234,018       1,234,443         517,060
                                                                      ------------    ------------    ------------    ------------
Loss from operations                                                      (392,631)        (26,602)       (943,630)       (101,842)

INTEREST EXPENSE                                                          (109,571)        (83,443)       (210,856)       (156,483)
                                                                      ------------    ------------    ------------    ------------
NET LOSS TO COMMON STOCKHOLDERS                                       $   (502,202)   $   (110,045)   $ (1,154,486)   $   (258,325)
                                                                      ============    ============    ============    ============

NET  LOSS PER SHARE:
BASIC AND DILUTED                                                     $      (0.02)   $      (0.00)   $      (0.04)   $      (0.01)
                                                                      ============    ============    ============    ============

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
BASIC AND DILUTED                                                       31,709,491      30,509,700      31,140,430      30,509,700
                                                                      ============    ============    ============    ============
</TABLE>

        The accompanying notes are an integral part of these statements.


                                       4
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                     Six Months Ended June 30,
                                                                                   ----------------------------
                                                                                       2005            2004
                                                                                   ------------    ------------
<S>                                                                                <C>             <C>
OPERATING ACTIVITIES:
Net loss                                                                           $ (1,154,486)   $   (258,325)
Adjustments to reconcile net loss to net cash  (used in) operating activities:
Depreciation and amortization                                                            25,280          18,330
Bad debt expense                                                                         51,982              --
Amortization of deferred costs                                                           57,143          42,599
Warrants issued for recruiting services                                                 280,000              --
Amortization of options granted to employees                                            128,994              --
Changes in assets and liabilities:
Accounts receivable                                                                     143,594         (64,385)
Royalty receivable                                                                           --           9,078
Subscription receivable                                                                      --           2,000
Inventories                                                                              13,060         (41,899)
Other current assets                                                                    (23,426)        (19,079)
Accounts payable, accrued payroll expense to officers and accrued expenses               29,920         109,124
                                                                                   ------------    ------------
Net cash used in operating activities                                                  (447,939)       (202,557)
                                                                                   ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment                                                    (122,729)       (225,132)
Acquisitions of patents and trademarks                                                   (1,600)        (11,270)
Deferred finance cost                                                                  (160,000)             --
                                                                                   ------------    ------------
Net cash used in investing activities                                                  (284,329)       (236,402)
                                                                                   ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash overdraft                                                                          (26,953)             --
Proceeds from shareholder loans                                                          30,000       1,097,277
Proceeds from issuance of debentures                                                  1,510,000              --
Repayments of shareholder loans                                                        (623,287)       (678,540)
Proceeds from issuance of common stock                                                    2,000              --
                                                                                   ------------    ------------
Net cash provided by financing activities                                               891,760         418,737
                                                                                   ------------    ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                    159,492         (20,222)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                          148,630          24,182
                                                                                   ------------    ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                           $    308,122    $      3,960
                                                                                   ============    ============


SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOW INFORMATION:
During the six month periods ended June 30, 2005 and 2004, the previous year's
balance of accrued interest of $228,773 and $68,265, respectively, for a
shareholder's loan was added to the loan balance as principal                      $    228,773    $     68,265

During the six month period ended June 30, 2005, 1,000,000 shares of common
stock were issued for a warrant conversion at $.01 per share. Payment due of
$ 10,000 was offset to a note payable to this stockholder                          $     10,000              --

During the six month period ended June 30, 2005, 550,000 options were granted to
each of two employees and recorded as Additional paid in capital and deferred
compensation cost                                                                  $  1,190,000              --
</TABLE>

        The accompanying notes are an integral part of these statements.


                                       5
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  June 30, 2005

1.  Description of Business/Basis of Presentation

Saliva Diagnostic Systems, Inc., (SDS), a Delaware corporation (the "Company"),
is primarily engaged in the development and marketing of oral fluid collection
devices for the drugs of abuse market, and rapid immunoassays for use in the
detection of infectious diseases. The Company believes that its patented
proprietary platform for rapid testing for infectious diseases, offers
significant advantages over the existing products, including ease-of-use, lower
costs, and significantly reduced risk of infection from collecting and handling
specimens. In the oral fluid collection market, the Company's platform has a
patented internal quality control that indicates sufficient volume of the oral
fluid ("volume adequacy indicator").

In May 2002, the Company received its Investigational Device Exemption (IDE)
from the U.S. Food and Drug Administration (FDA) for its Rapid HIV
Hema-Strip(TM) Test. Upon termination of all business relationships with its
then contract manufacturer, Chembio Diagnostic Systems, (CEMI.OB) the Company
signed a Manufacturing / Research & Development Agreement with American Bio
Medica Corporation, Nasdaq SC (ABMC), of Kinderhook, NY. Responsibilities of
ABMC include manufacturing and regulatory compliance of the Company's HIV test
devices. The Company filed a new IDE with the FDA naming ABMC as its contract
manufacturer. This IDE submission to the FDA was made in October 2003.
Thereafter, the Company conducted its clinical trials and submitted all the
modules of the Pre-Market Approval (PMA) to the FDA. The FDA has requested
certain additional testing and the Company is presently completing these tests.
Should the Company receive PMA approval for its rapid HIV test, it will also
file for a CLIA (Clinical Laboratory Improvements Amendments) waiver.

SDS is committed to and focused on the completion of the necessary requirements
towards obtaining U.S. Food and Drug Administration (FDA) PMA marketing approval
of our rapid Hema-Strip(TM) HIV diagnostic tests in the United States. Although
there is no assurance that we will receive approval, we believe that the
Hema-Strip(TM) HIV device format, if approved for detecting antibodies to HIV-1
in fingerstick and venipuncture whole blood, serum and plasma samples, will have
certain competitive advantages in the market for rapid HIV testing both in the
United States and internationally.

The accompanying unaudited financial statements as of and for the three and six
month periods ended June 30, 2005 and 2004, have been prepared in conformity
with accounting principles generally accepted in the United States of America.
The financial information as of December 31, 2004, is derived from Saliva
Diagnostic Systems, Inc. (the "Company") financial statements included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2004.
Certain information or footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted, pursuant to the
rules and regulations of the Securities and Exchange Commission for interim
filings. In the opinion of management, the accompanying financial statements
include all adjustments necessary (which are of a normal and recurring nature)
for the fair presentation of the results of the interim periods presented. The
accompanying financial statements should be read in conjunction with the
Company's audited financial statements for the year ended December 31, 2004, as
included in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 2004. Operating results for the three and six month periods ended
June 30, 2005 are not necessarily indicative of the results that may be expected
for the entire year ending December 31, 2005, or any other portion thereof.


                                       6
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  June 30, 2005

2.    Substantial Doubt Regarding Ability To Continue As A Going Concern

Significant operating losses - accumulated deficit:

Since July 1990, the Company has been engaged almost exclusively in research and
development activities focused on developing proprietary saliva based collection
devices and rapid assays for infectious diseases. Other than sales of the
Company's collection devices, the Company has not yet commenced any significant
product commercialization. The Company has incurred significant operating losses
since its inception, resulting in an accumulated deficit of $44,924,775 at June
30, 2005. Such losses are expected to continue for the foreseeable future and
until such time, if ever, as the Company is able to attain sales levels
sufficient to support its operations. There can be no assurance that the Company
will achieve or maintain profitability in the future. Substantial additional
financing will be required in future periods.

The Company's capital requirements have been and will continue to be
significant. The Company's capital base is smaller than that of many of its
competitors, and there can be no assurance that the Company's cash resources
will be able to sustain its business. The Company is dependent upon its effort
to raise capital to finance its future operations, including the cost of
development, manufacturing and marketing of its products, to conduct clinical
trials and submissions for FDA approval of its products and to continue the
design and development of its new products. Marketing, manufacturing and
clinical testing may require capital resources substantially greater than the
resources available to the Company. The Company will continue to seek public or
private placement of its equity securities and corporate partners to develop
products. The Company's future capital needs will depend upon numerous factors,
including the progress of the approval for sale of the Company's products in
various countries, including the United States, the extent and timing of the
acceptance of the Company's products, the cost of marketing and manufacturing
activities and the amount of revenues generated from operations, none of which
can be predicted with much certainty. The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern. The
Company's significant operating losses and significant capital requirements,
however, raise substantial doubt about the Company's ability to continue as a
going concern. The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.


3.    Summary Of Significant Accounting Policies

Basis of Presentation:

In the opinion of management, the accompanying unaudited Financial Statements
present fairly the financial position at June 30, 2005, and the results of
operations and the cash flows for all periods presented. The results of
operations for the interim periods are not necessarily indicative of the results
to be obtained in any future interim period or for the entire year.

For a summary of significant accounting policies (which have not changed from
December 31, 2004) and additional financial information, see the Company's
annual report on Form 10-KSB filed March 31, 2005.

The accompanying unaudited interim financial statements have been prepared in
accordance with instructions to Form 10-QSB and, therefore, do not include all
information and footnotes required to be in conformity with accounting
principles generally accepted in the United States of America.


                                       7
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  June 30, 2005

3. Summary Of Significant Accounting Policies (continued)

Recent Accounting Pronouncements
The Company does not expect that the adoption of recent accounting
pronouncements will have a material impact on its financial statements.

Reclassifications
Certain reclassifications have been made in the December 31, 2004 financial
statements to conform to the current fiscal year presentation.

4. Inventories
Inventories are stated at the lower of cost or market determined on a first-in,
first-out basis and are comprised of the following:

                                     June 30, 2005       December 31, 2004
                                    ---------------      -----------------

          Raw materials             $        67,808      $          87,407
          Finished goods                     21,159                 14,620
                                    ---------------      -----------------
                                    $        88,967      $         102,027
                                    ===============      =================


5. Accrued Expenses
                                     June 30, 2005         December 31, 2004
                                     -------------         -----------------

Accrued interest                    $        168,256       $        228,773
Accrued legal expense                              -                112,500
Other accrued liabilities                                            14,808
                                    ----------------       ----------------
                                    $        185,350       $        356,081
                                    ================       ================

6. Geographic Area Information

Under the disclosure requirements of SFAS No. 131, "Segment Disclosures and
Related Information," we operate within one segment. Our products are sold
principally in the United States and Europe. Segmentation of operating income
and identifiable assets is not applicable since all of our revenues outside the
United States are export sales.

The following table represents total product sales revenue by geographic area:

                    For the three months           For the six months
                        ended June 30,               ended June 30,
                 ---------------------------   ---------------------------
                     2005           2004           2005           2004
                 ------------   ------------   ------------   ------------

United States    $      3,890   $    213,854   $    151,498   $    347,820
United Kingdom        148,906        112,661        229,404        208,000
Africa                 22,248         40,600         48,738         66,900
Other                   1,490          8,247         11,367         32,840
                 ------------   ------------   ------------   ------------
                 $    176,534   $    375,362   $    441,007   $    655,560
                 ============   ============   ============   ============


                                       8
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  June 30, 2005

7.  Deferred Costs

Deferred costs represent the value of payments of cash, warrants and shares
issued to brokers and a shareholder as consideration for loan financing during
the years. As of June 30, 2005, net deferred costs were $273,257, which are
being amortized over the lives of the respective loan and debentures.

8.  Debenture Payable

On January 19, 2005, the Company's board authorized the issuance of up to three
million dollars of convertible debentures to be repaid in twelve quarterly
installments commencing April 1, 2006. The debentures carry an interest rate of
9% per annum and are convertible into common stock at the lower of 66.6% of the
valuation of the Company's next raise of equity or $1 per share. As of June 30,
2005, the Company had not closed the entire funding but had sold an aggregate of
$1,510,000 in convertible debentures.

9.  Stock-Based Compensation

The Company has adopted the disclosure provisions of Financial Accounting
Standards Board Statement No. 123 ("SFAS 123") which defines a fair value based
method of accounting for employee stock options and similar equity instruments
and encourages all entities to adopt that method of accounting for all employee
stock-based compensation plans. However, SFAS 123 also allows an entity to
continue to measure compensation cost for such plans using the method of
accounting prescribed by Accounting Principles Board Opinion No. 25 ("APB 25").
Entities electing to remain with the accounting as prescribed by APB 25 must
make pro forma disclosures of net income and, if presented, earnings per share,
as if the fair value based method of accounting defined in SFAS 123 had been
adopted.

The Company has elected to account for its stock-based compensation plans using
APB 25. The Company has computed, for pro forma disclosure purposes, the value
of options granted for the three and six month periods ended June 30, 2005 and
2004 using the Black-Scholes pricing model:

<TABLE>
<CAPTION>
                                                        Three months ended June 30       Six months ended June 30
                                                           2005            2004            2005            2004
                                                       ------------    ------------    ------------    ------------
<S>                                                    <C>             <C>             <C>             <C>
Net loss to common shareholders
    As reported                                        $   (502,202)   $   (110,045)   $ (1,154,486)   $   (258,325)
Add: Stock-based employee compensation expense
included in reported net loss, net of related tax
affects                                                     120,084              --         128,994              --
Deduct: Total stock-based employee compensation
expense determined under fair value based method for
all awards, net of related tax affects
                                                           (114,326)             --        (122,838)             --
                                                       ------------    ------------    ------------    ------------
    Pro forma                                          $   (496,444)   $   (110,045)   $ (1,148,330)   $   (258,325)
                                                       ============    ============    ============    ============

Basic and diluted net loss per share
    As reported                                        $      (0.02)   $      (0.00)   $      (0.04)   $      (0.01)
    Pro forma                                                 (0.02)          (0.00)          (0.04)          (0.01)
</TABLE>


                                       9
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  June 30, 2005

9.  Stock-Based Compensation (continued)

The fair value of each option grant was estimated on the date of the grant using
the Black-Scholes option-pricing model with the following weighted-average
assumptions for the six month period ended June 30, 2005: expected volatility of
30%; average risk-free interest rate of 3.87%; and expected lives of 5 years.

The effects of applying SFAS 123 (revised 2004) in the above pro forma
disclosures are not indicative of future amounts as future amounts are likely to
be affected by the number of grants awarded and since additional awards are
generally expected to be made at varying prices.

10. Financing From Shareholders

Per a promissory note dated February 2003, Jules Nordlicht, agreed to advance in
total or in installments, up to the amount of $1,000,000 to the Company. In
November 2003 and August 2004, agreements were executed with this shareholder to
cause additional advances in total or in installments up to the amount of
$2,500,000 to advance the process of the FDA approval. In consideration for the
financing, the Company agreed to repay such borrowed funds with accrued interest
at 12% per annum and the shareholder reserves the right to demand payment in
full or in part at anytime after December 31, 2006. As of June 30, 2005 the loan
balance to this shareholder aggregated $1,932,099.

Resonance Limited, a shareholder, is owed $6,624 as of June 30, 2005. The loan
bears no interest and is due on demand.

In January 2005, 200,000 warrants exercisable at a price of $.01 per share were
issued as payment for services rendered to the Company. Based upon the market
value of the common stock on the date of issuance, discounted 30% for its
restriction, the Company recorded an expense and related additional paid-in
capital of $280,000. These warrants, as well as additional warrants exercisable
into 1,000,000 shares previously issued exercisable at $.01 per share, were
converted during March 2005 into common stock, resulting in the issuance of
1,200,000 common shares during this period.

11. Shareholders' Equity Transactions

For the six month period ended June 30, 2005, 550,000 stock options were granted
to each of two employees per employment agreements. Of these options, 100,000
are vested immediately and exercisable from June 1, 2005 until June 1, 2015 and
the remaining options are vested in three equal amounts annually, commencing on
October 1, 2005. On the date of grant, the Company recorded an increase in
deferred compensation of $1,190,000 and corresponding increase in additional
paid-in capital. The compensation cost related to the options is being deferred
over a two-year employment period. An adjustment of $128,994 in the selling,
general and administrative expense was recorded to recognize the compensation
expense for the period ended June 30, 2005.

12.  Contingencies

The following table lists the future payments required on debt and any other
contractual obligations of the Company:

                          Payments Due by Period             Future Payments

                    <1 year                                     $      162,344
                    1-3 years                                        3,009,640
                    4th year                                           377,500
                                                                --------------
                                                                $    3,549,484


                                       10
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  June 30, 2005

12.  Contingencies (continued)

In March 2005, the Company signed a lease to occupy premises in Framingham, MA
beginning April 1, 2005. This location will be our primary corporate office. The
lease has a three-year initial term ending March 31, 2008 and a base annual
rental rate starting at approximately $26,350 and increasing to approximately
$40,500 per year over that initial term. The lease also has a one-year renewal
option at an annual base rental rate of approximately $40,500.


Legal Matters

In March 2004, Chembio Diagnostic Systems, Inc. (the Company's former contract
manufacturer) commenced an action in Federal Court, Eastern District of New
York, seeking a declaration that the Company's US Patent No. 5,935,864 was
invalid and not infringed. The Company has filed counterclaims for patent
infringement seeking an injunction and damages. Some initial discovery took
place, and the remainder of discovery has been stayed pending the Court's ruling
interpreting the patent claims. The Company believes its position is sound, and
intends to vigorously defend its intellectual property rights.

In and around January 2000, the Company received notice from the United States
Patent and Trademark Office that Bayer Corporation filed a petition to cancel
the Company's U.S. Trademark Registration No. 2,240,324, for the mark HEMA
STRIP. The petition alleged that the Company's HEMA STRIP trademark, would
likely be confused with Bayer's federally registered trademark, for the mark
HEMASTIX. The Company did not respond to the Petition and in and around December
2000, the Company received notice that its Trademark Registration No. 2,240,324
was cancelled. In October 2003, the Company filed to re-register the HEMA STRIP
trademark in the U.S. Patent and Trademark Office, and in April 2004 filed in
Europe. Bayer has filed opposition to the Company's new trademark application in
the U.S., and the Company is currently in discussions with Bayer to resolve this
matter.

Other than that set forth above, to the best knowledge of the Company, no other
material legal proceedings are pending.


Economic Dependency


The Company had two customers that accounted for 87% of product sales (53% and
34%) during the first six months of 2005, and two customers that accounted for
69% (36% and 33%) during the first six months of 2004.

During the second quarter of 2005, the Company had one customer that accounted
for 87% of product sales.

The loss of any of these customers could have a material adverse effect on the
Company.


                                       11
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussion of the Company's financial condition and the results of
operations should be read in conjunction with the Financial Statements and Notes
thereto appearing elsewhere in this document.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. In order to comply with the terms of the safe
harbor, the Company notes that in addition to the description of historical
facts contained herein, this report contains certain forward-looking statements
that involve risks and uncertainties as detailed herein and from time to time in
the Company's other filings with the Securities and Exchange Commission and
elsewhere. Such statements are based on management's current expectations and
are subject to a number of factors and uncertainties, which could cause actual
results to differ materially from those, described in the forward-looking
statements. These factors include, among others: (a) the Company's fluctuations
in sales and operating results; (b) risks associated with international
operations; (c) regulatory, competitive and contractual risks; (d) product
development risks; (e) the ability to achieve strategic initiatives, including
but not limited to the ability to achieve sales growth across the business
segments through a combination of enhanced sales force, new products, and
customer service; and (f) pending litigation.

GENERAL

Since July 1990, the Company has been engaged almost exclusively in research and
development activities focused on developing proprietary saliva based collection
devices and rapid assays for infectious diseases. The Company's products have
been purchased by foreign governments, distributors, laboratories, as well as
the U.S. Center for Disease Control (CDC), an agency of the United States
government.

In February 2000, the Company closed its Vancouver, Washington manufacturing
facility and moved its executive offices to New York. The Company no longer has
its own manufacturing plant which would allow it to independently produce its
products, and relies exclusively on its contract manufacturers to supply the
Company's needs.

In July of 2003, the Company signed a Manufacturing / Research & Development
Agreement with American Bio Medica Corporation (ABMC) of Kinderhook, NY.
Responsibilities of ABMC include manufacturing and regulatory compliance of the
Company's HIV test devices.

The Company is seeking a PMA for its HIV rapid test from the FDA and submitted
all modules of the PMA by the end of November 2004. Since that time the FDA has
inspected each of the six clinical sites that participated in the clinical
trials of our HIV rapid test. The Company is completing a small study of 200
samples and expects to complete its data base with that information in the third
quarter 2005. Following that, the Company expects its contract manufacturer
(ABMC) to be audited by the FDA. Typically several months pass, following a
successful inspection and submission of a completed PMA, to receive
notification. In addition to the US., the Company intends to submit the
appropriate regulatory submissions, import/export documentation and any other
requirement for a number of countries, including but not limited to, Russia,
Brazil, Canada, Vietnam, India, Mexico, Australia, Philippines, Thailand, and a
number of African countries.


The IDE, Clinical Trials, and application modules are only part of a difficult
and financially costly process to receive U.S. marketing approval. There is no
assurance that the Company will have the financial resources, expertise, or
ability to complete the approval process.


                                       12
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (CONTINUED)

General (Continued)

We believe that the potential market for rapid tests in the United States and
foreign countries will continue to grow as the benefits of rapid testing are
better understood by the appropriate government agencies, by diagnostic and
treatment practitioners, and by the general population. Recently, the need for
and availability of rapid tests to screen large populations for HIV has been the
subject of the medical, scientific and lay press, including the New England
Journal of Medicine's Editorial pages. Consequently, we are now actively working
to commercialize our HIV rapid test products, and to obtain requisite regulatory
approvals to introduce these products in international markets as well as in the
U.S. There can be no assurance that we will achieve or sustain significant
revenues from sales of HIV diagnostic tests, internationally or domestically, or
from other new products we may develop or introduce.

The Company has limited marketing, sales and distribution resources. The Company
relies in large part on forming partnerships for marketing, sales and
distribution of its products. To date, the Company has signed an exclusive
distribution agreement of our HemaStrip(TM) test product, for The Russian
Federation, the C.I.S. and certain African countries with Memorand Limited.
Memorand is currently working to obtain appropriate government and regulatory
requirements. ADR PRE Ltd. acted as the agent in developing this relationship
and distribution agreement. The Company has agreed to compensate ADR PRE Ltd.
for their efforts based on a sales commission basis.

The Company has signed a distribution agreement with Medsource Ozone Biomedicals
for distribution of our HemaStrip(TM) and SeroStrip products throughout India.

Our Saliva Sampler(R) oral fluid collectors are being sold under a distribution
agreement with Immunalysis, Inc., whereby they have been granted exclusive
rights to the Saliva Sampler(R) for sale in the U.S. and Canada solely for the
laboratory testing market to detect a drug of abuse. They have incorporated our
Saliva Sampler(R) collector in their application for FDA marketing approval of
their assay kit for oral fluid substance abuse testing.

We continue to distribute our Hema-Strip(TM) HIV test and Saliva Sampler(R) oral
fluid collection product through our current distribution networks and we will
also seek new distribution relationships for our current and future test
products.

The Company has incurred significant operating losses since its inception,
resulting in an accumulated deficit of $44,924,775 at June 30, 2005. Such losses
are expected to continue for the foreseeable future and until such time, if
ever, as the Company is able to attain sales levels sufficient to support its
operations.

The Company believes that its current cash position will be sufficient to
maintain the Company's operations through the remainder of 2005. However, the
Company will need to raise additional capital to fund its aggressive growth and
marketing efforts and to capitalize on its IP portfolio to design, develop,
test, gain regulatory approval and launch new products. Development, marketing,
manufacturing and clinical testing may require capital resources substantially
greater than the resources, which may be available to the Company. The Company
is in the midst of raising up to three million dollars as a convertible debt
instrument. The Company has received to date approximately $1.5 million dollars.
The Company is reviewing its options, including the selling of common stock, as
a means to fund the Company's future growth plans. There can be no assurance
that the Company will be able to obtain the additional capital resources
necessary to fund its growth plans, or that such financing will be available on
commercially reasonable terms.


                                       13
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (CONTINUED)

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements and related disclosures in conformity
with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the amounts reported in
the unaudited Financial Statements and accompanying notes. Estimates are used
for, but not limited to, the accounting for the allowance for doubtful accounts,
inventories, income taxes and loss contingencies. Management bases its estimates
on historical experience and on various other assumptions that are believed to
be reasonable under the circumstances. Actual results could differ from these
estimates under different assumptions or conditions.

The Company believes there have been no significant changes, during the six
months ended June 30, 2005, to the items disclosed as critical accounting
policies and estimates in Management's Discussion and Analysis of Financial
Condition and Results of Operations in the Company's Annual Report on Form
10-KSB for the year ended December 31, 2004.


                                       14
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (CONTINUED)

RESULTS OF OPERATIONS

Second Quarter and First Six Months of 2005 Compared to Second Quarter and First
six Months of 2004

Revenues. The Company's revenues consist of product sales and royalties.
Revenues decreased 53% to $176,534 in the second quarter of 2005 from $375,362
in the second quarter of 2004 and decreased 33% to $441,553 in the first six
months of 2005 from $656,481 in the first six months of 2004. The Company is
continuing to seek new markets and sales opportunities for its products. The
decrease in sales is primarily due to a large stocking inventory shipment of our
saliva collector in 2004 by one of our customers and a slowing down of sales by
this same distributor in 2005.

During the first six months of 2005 and 2004, the Company's revenues were
primarily generated from sales of its patented saliva collection devices.

The Company had two customers that accounted for 87% of product sales (53% and
34%) during the first six months of 2005, and two customers that accounted for
69% (36% and 33%) during the first six months of 2004.

During the second quarter of 2005, the Company had one customer that accounted
for 87% of product sales.

The loss of any of these customers could have a material adverse effect on the
Company.

Cost of products sold: Costs of products sold decreased to $56,394 (32% of
product sales) in the second quarter of 2005 from $167,946 (45% of product
sales) in the second quarter of 2004, and decreased to $150,740 (34% of product
sales) in the first six months of 2005 from $241,263 (37% of product sales) in
the first six months of 2004 due to decreased sales activity. The increase in
Gross Margins was attributable to a reduction of scrap rates incurred validating
new machinery in conformity with Good Manufacturing Practices (GMP) in 2004.
This incurs labor costs and running the machinery while consuming materials as
if it were a normal production cycle. However the product produced is used only
for evaluation and is thereafter scrapped.

Research and development expenses: Research and development expenses decreased
to $84,556 in the second quarter of 2005 from $155,000 in the second quarter of
2004 and decreased to $161,556 in the first six months of 2005 from $365,000 in
the first six months of 2004.

The decrease is due to fewer expenses incurred in the first quarter of 2005 for:

      o     the Hema-Strip(TM) HIV test clinical trials
      o     the preparation of documents for FDA submissions

R&D costs for Hema-Strip(TM) HIV are expected to continue in 2005 until such
time that we receive FDA approval to market the test in the U.S. Hema-Strip(TM)
HIV R&D costs in 2005 are estimated at $200,000. The Company expects total R&D
costs to increase in 2005 should it begin clinical trials for a new product.

Selling, general and administrative expenses: Selling, general and
administrative expenses increased 290% to $308,131 in the second quarter of 2005
from $79,018 in the second quarter of 2004 and increased 337% to $663,893 in the
first six months of 2005 from $152,060 in the first six months of 2004. This
increase is due to significantly greater expenses for consulting, recruitment
expenses, bad debt expense, and payroll.

Stock based compensation and employment recruiting expense-non cash: The
increase in non-cash expenses of $120,084 incurred in the second quarter of 2005
and of $408,994 incurred in the first six months of 2005, was attributed to
amortization of options granted to two new employees and non-cash expenses
associated with the issuance of shares and/or warrants for services. The Company
had not incurred similar expenses in the first quarter and in the first six
months of 2004.


                                       15
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (CONTINUED)

RESULTS OF OPERATIONS (CONTINUED)

Loss from operations: The loss from operations for the second quarter of 2005 of
$392,631 reflects a significant increase in loss from the $26,602 loss reported
for the second quarter of 2004; and the loss from operations for the first six
months of 2005 of $943,630 reflects a 827% increase from the $101,842 loss
reported for the first six months of 2004. Decreased sales and greater expenses
in 2005 contributed to the Company's increased loss.

Interest expense: Interest expense increased to $109,571 in the second quarter
of 2005 from $83,443 in the second quarter of 2004 and increased to $210,856 in
the first six months of 2005 from $156,483 in the first six months of 2004 due
to increased borrowings associated with the convertible debentures in 2005.

Income taxes. The Company is in a net deferred tax asset position and has
generated net operating losses to date. No provision for or benefit from income
taxes has been recorded in the accompanying statements of operations. The
Company will continue to provide a valuation allowance for its deferred tax
assets until it becomes more likely than not, in management's assessment, that
the Company's deferred tax assets will be realized. The Company has a net
operating loss carryforward of approximately $45million, which is available to
offset future taxable income, if any, expiring in various years through the year
2025. The Internal Revenue Code rules under Section 382 could limit the future
use of these losses based on ownership changes and the value of the Company's
stock.


LIQUIDITY AND CAPITAL RESOURCES

                                       June 30, 2005         December 31, 2004
Cash and cash equivalents          $      308,122           $      148,630
Working capital (deficit)                 (82,349)                (506,511)

Net cash used in operating activities in the first six months of 2005 was
$447,939. Net cash used in the first six months of 2004 was $202,557. In 2005,
the increase in cash used in operations was primarily due to the increase of the
net loss $1,154,486 (2005) and $258,325 (2004). The following expenses increased
in the first six months of 2005 when compared to the first six months of 2004:

      o     Legal and accounting costs
      o     Expenses recorded for beneficial conversion features of convertible
            debt, and
      o     Stock and warrant issuance costs
      o     Consulting expenses
      o     Payroll expenses

Cash used in investing activities in the first six months of 2005 was $284,329
as compared to $236,402 in the first six months of 2004. The increase represents
costs incurred and paid for in our debenture financing. However this cost is
being amortized over the life of the debenture.

Cash provided by financing activities in the first six months of 2005 was
$891,760, and in the first six months of 2004 was $418,737. For the first six
months of 2005, the cash provided by financing activities are primarily
additional net borrowings of $1,510,000 from a debenture less net repayments of
shareholder loans of $593,287 . The cash provided by financing activities in the
first six months of 2004 are the net amounts of shareholder loans to the
Company.

Our cash requirements depend on numerous factors, including product development
activities, penetration of the direct sales market, market acceptance of our
products, and effective management of accounts receivable. We expect to devote

                                       16
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (CONTINUED)

LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

capital resources to improve our sales and marketing efforts, continue our
product development, expand manufacturing capacity and continue research and
development activities. We will examine other growth opportunities, including
strategic alliances, and we expect any such activities will be funded from
existing cash as well as funds provided from debenture offerings in 2005.

Since inception, the Company has financed its capital requirements through the
proceeds from its public offering of common stock in March 1993 and the exercise
of common stock purchase warrants pursuant to such offering, proceeds from sales
of convertible debentures, proceeds from private placements of common stock and
preferred stock, the exercise of common stock purchase warrants and stock
options and loans.

On January 19, 2005 the Company's board authorized the issuance of up to three
million dollars of convertible debentures. These debentures mature March 31,
2009 and carry an interest rate of 9% per year and are convertible into common
stock at the lower of 66.6% of the valuation of the Company's next raise of
equity or $1 per share. As of June 30, 2005, the Company had not closed the
entire funding but had sold an aggregate of $1,510,000 in convertible
debentures.

Per a promissory note dated February 2003, Jules Nordlicht, agreed to advance in
total or in installments, up to the amount of $1,000,000 to the Company. In
November 2003 and August 2004, agreements were executed with this shareholder to
cause additional advances in total or in installments up to the amount of
$2,500,000 to advance the process of the FDA approval. In consideration for the
financing, the Company agreed to repay such borrowed funds with accrued interest
at 12% per annum and the shareholder reserves the right to demand payment in
full or in part at anytime after December 31, 2006. As of June 30, 2005 the loan
balance to this shareholder aggregated $1,932,099.

Resonance Limited, a shareholder, is owed $6,624 as of June 30, 2005. The loan
bears no interest and is due on demand.

In January 2005, 200,000 warrants exercisable at a price of $.01 per share were
issued as payment for services rendered to the Company. Based upon the market
value of the common stock on the date of issuance, discounted 30% for its
restriction, the Company recorded an expense and related additional paid-in
capital of $280,000.

These warrants, as well as additional warrants exercisable into 1,000,000 shares
previously issued exercisable at $.01 per share, were converted during March
2005 into common stock, resulting in the issuance of 1,200,000 common shares
during this period.

In March of 2005, 550,000 stock options were granted to an employee per an
employment agreement. Of these options, 100,000 are vested immediately and
exercisable from June 1, 2005 until June 1, 2015 and remaining options are
vested in three equal amounts annually, commencing on October 1, 2005. On the
date of grant, the Company recorded an increase in deferred compensation of
$614,250 and corresponding increase in additional paid-in capital. The
compensation cost related to the options is been deferred over a two-year
employment period. An adjustment of $82,461 in selling, general and
administrative expense was recorded to recognize the compensation expense for
the period ended June 30, 2005.

In May of 2005, 550,000 stock options were granted to another employee per an
employment agreement. Of these options, 100,000 are vested immediately and
exercisable from June 1, 2005 until June 1, 2015 and remaining options are
vested in three equal amounts annually, commencing on October 1, 2005. On the
date of grant, the Company recorded an increase in deferred compensation of
$575,750 and corresponding increase in additional paid-in capital. The
compensation cost related to the options is been deferred over a two-year
employment period. An adjustment of $46,533 in selling, general and
administrative expense was recorded to recognize the compensation expense for
the period ended June 30, 2005.


                                       17
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (CONTINUED)

LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

To conserve cash and to obtain goods and services, the Company may continue to
issue options and warrants at discounts to market or issue direct stock grants.
In the event that the Company issues additional options and warrants, it is
anticipated that the securities will contain cost-free registration rights which
will be granted to holders of the options and warrants, and that there may be
dilution to the Company's existing stockholders.

The Company's capital requirements have been and will continue to be
significant. The Company currently has an accumulated deficit due to its history
of losses. The Company is dependent upon its efforts to raise capital to finance
its future operations, including the cost of manufacturing and marketing of its
products, to conduct clinical trials and submissions for FDA approval of its
products and to continue the design and development of its new products.

Marketing, manufacturing and clinical testing may require capital resources
substantially greater than the resources available to the Company.

The following table lists the future payments required on debt and any other
contractual obligations of the Company:

                Payments Due by Period             Future Payments
       --------------------------------------      ---------------
       <1 year                                     $      162,344
       1-3 years                                        3,009,640
       4th year                                           377,500
                                                   --------------
                                                   $    3,549,484

In March 2005, the Company signed a lease to occupy premises in Framingham, MA
beginning April 1, 2005. This location will be our primary corporate office. The
lease has a three-year initial term ending March 31, 2008 and a base annual
rental rate starting at approximately $26,350 and increasing to approximately
$40,500 per year over that initial term. The lease also has a one-year renewal
option at an annual base rental rate of approximately $40,500.

There can be no assurance that the Company will be able to obtain the additional
capital resources necessary to implement or continue its programs, or that such
financing will be available on commercially reasonable terms or at all. The
Company will continue to seek public or private placement of its equity
securities and corporate partners to develop products. There can be no assurance
that the Company will be able to sell its securities on commercially reasonable
terms or to enter into agreements with corporate partners on favorable terms or
at all. The Company's future capital needs will depend upon numerous factors,
including the progress of the approval for sale of the Company's products in
various countries, including the U.S., the extent and timing of the acceptance
of the Company's products, the cost of marketing and manufacturing activities
and the amount of revenues generated from operations, none of which can be
predicted with certainty.


                                       18
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 3.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of the end of the period covered by this report, we evaluated, under the
supervision and with the participation of our management, including our
President and Chief Financial Officer, the effectiveness of the design and
operation of our "disclosure controls and procedures" [as defined in the
Securities Exchange Act of 1934, Rules 13a - 15(e) and 15d - 15(e)]. Based on
this evaluation, our President and Chief Financial Officer has concluded that as
of the date of the evaluation our disclosure controls and procedures are
effective to ensure that all material information required to be filed in this
report has been made known to them.

CHANGE IN INTERNAL CONTROLS

There have been no changes in internal controls over financial reporting that
occurred during the most recent fiscal quarter that have materially affected, or
are reasonably likely to materially affect, our internal controls over financial
reporting.


                                       19
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

In March 2004, Chembio Diagnostic Systems, Inc. (our former contract
manufacturer) commenced an action in Federal Court, Eastern District of New
York, seeking a declaration that the Company's US Patent No. 5,935,864 was
invalid and not infringed. The Company has filed counterclaims for patent
infringement seeking an injunction and damages. Some initial discovery took
place, and the remainder of discovery has been stayed pending the Court's ruling
interpreting the patent claims. The Company believes its position is sound, and
intends to vigorously defend its intellectual property rights.


In and around January 2000, the Company received notice from the United States
Patent and Trademark Office that Bayer Corporation filed a petition to cancel
the Company's U.S. Trademark Registration No. 2,240,324, for the mark HEMA
STRIP. The petition alleged that the Company's HEMA STRIP trademark, would
likely be confused with Bayer's federally registered trademark, for the mark
HEMASTIX. In 2000, the Company received notice that its Trademark Registration
No. 2,240,324 was cancelled. In October 2003, the Company filed to re-register
the HEMA STRIP trademark in the U.S. Patent and Trademark Office, and in April
2004 filed in Europe. Bayer has filed opposition to the Company's new trademark
application in the U.S., and the Company is currently in discussions with Bayer
to resolve this matter.
Other than that set forth above, to the best knowledge of the Company, no other
material legal proceedings are pending.



Item 2. CHANGES IN SECURITIES

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5.  OTHER INFORMATION

None


                                       20
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

ITEM 6. EXHIBITS

Exhibi

------

  11         Earnings per share

  31.1       Certification of Chief Executive Officer required by Rule 13a-14(a)
             or Rule 15d-14(a) under the Securities Exchange Act of 1934, as
             amended.

  31.2       Certification of Chief Financial Officer required by Rule 13a-14(a)
             or Rule 15d-14(a) under the Securities Exchange Act of 1934, as
             amended.

  32.1       Certification of Chief Executive Officer required by Rule 13a-14(b)
             or Rule 15d-14(b) under the Securities Exchange Act of 1934, as
             amended, and 18 U.S.C. Section 1350, as Adopted Pursuant to Section
             906 of the Sarbanes-Oxley Act of 2002.

  32.2       Certification of Chief Financial Officer required by Rule 13a-14(b)
             or Rule 15d-14(b) under the Securities Exchange Act of 1934, as
             amended, and 18 U.S.C. Section 1350, as Adopted Pursuant to Section
             906 of the Sarbanes-Oxley Act of 2002.


                                       21
<PAGE>

                         SALIVA DIAGNOSTIC SYSTEMS, INC.
                                  June 30, 2005

                                   SIGNATURES

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

Dated:   August 10, 2005

                                        SALIVA DIAGNOSTIC SYSTEMS, INC.

                                        /s/
                                        -----------------------
                                        Steven M. Peltzman
                                        Chief Executive Officer


                                        /s/
                                        -----------------------
                                        Leo Ehrlich
                                        Chief Financial Officer


                                       22