UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-QSB

x Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2005

or

¨ Transition Report under Section 13 or 15 (d) of the Securities Exchange Act of 1934

Commission file No. 000-30641

L.A.M. PHARMACEUTICAL, CORP.
(Exact name of registrant as specified in its charter)

Delaware	52-2278236
(State of incorporation)	(I.R.S. Employer Identification Number)

736 Center Street,
Lewiston, NY 14092
(Address of principal executive offices) (Zip Code)

(877) 526-7717
(Registrant’s telephone number, including area code)

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

As of October 31, 2005, we had 115,499,579 issued and outstanding shares of common stock.

1

INDEX

PART I		FINANCIAL INFORMATION
	Item 1	Financial Statements
		Balance Sheets at September 30, 2005 (Unaudited) and December 31, 2004	4
		Statements of Changes in Stockholders' Equity (Deficit) for the Nine Months Ended September 30, 2005 and 2004 (Unaudited)	5
		Statements of Operations for the Three Months Ended September 30, 2005 and 2004 (Unaudited)	6
		Statements of Operations for the Nine Months Ended September 30, 2005 and 2004 (Unaudited)	7
		Statements of Cash Flows for the Nine Months Ended September 30, 2005 and 2004 (Unaudited)	8
		Notes to Financial Statements	10
	Item 2	Management's Discussion and Analysis of Financial Condition or Plan of Operation	13
	Item 3	Controls and Procedures	17
PART II		OTHER INFORMATION
	Item 1	Legal Proceedings	18
	Item 2	Changes in Securities	18
	Item 6	Exhibits	18

2

PART I
FINANCIAL INFORMATION

Item 1.      Financial Statements

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)
Lewiston, New York

FINANCIAL REPORTS

AT

SEPTEMBER 30, 2005

3

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

BALANCE SHEETS

		(Unaudited)
		September 30,			December 31,
		2005			2004
ASSETS
Current Assets
Cash and Cash Equivalents	$	28,362		$	65,866
Accounts Receivable, net		134,066			4,795
Inventory		—			440,746
Prepaid Expenses		64,945			75,879
Total Current Assets		227,373			587,286
Property and Equipment - Net of Accumulated Depreciation		26,773			73,587
Other Assets
Patents and Trademarks - Net of Accumulated Amortization		617,135			634,629
Total Assets	$	871,281		$	1,295,502
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable and Accrued Expenses	$	886,958		$	864,525
Current Portion of Deferred Licensing Revenue		—			131,250
Total Current Liabilities		886,958			995,775
Other Liabilities
Due to Stockholders		169,545			149,545
Deferred Licensing Revenue		—			19,860
Total Liabilities		1,056,503			1,165,180
Stockholders' Equity (Deficit)
Common Stock - $.0001 Par; 150,000,000 Shares Authorized;
112,279,579 and 66,115,713 Shares
Issued and Outstanding, Respectively		11,228			6,611
Additional Paid-In Capital		35,014,105			33,234,036
Accumulated Deficit		(35,210,555	)		(33,110,325	)
Total Stockholders' Equity (Deficit)		(185,222	)		130,322
Total Liabilities and Stockholders' Equity (Deficit)	$	871,281		$	1,295,502

The accompanying notes are an integral part of these financial statements.

4

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)

					Additional					Total
	Number		Common		Paid-In		Accumulated			Stockholders'
	of Shares		Stock		Capital		Deficit			Equity (Deficit)
Balance - December 31, 2003	45,809,364	$	4,581	$	29,022,904	$	(29,130,093	)	$	(102,608	)
Capital Contribution – Interest Expense	—		—		5,764		—			5,764
Stock Options Granted -
Compensation for Services Rendered	—		—		752,564		—			752,564
Common Shares Issued -
Compensation for Services Rendered	481,560		48		416,189		—			416,237
Sale of Shares Under the Stock Subscription Agreements	300,000		30		1,239,480		—			1,239,510
Proceeds from Warrant Exercise	2,133,549		213		259,160		—			259,373
Premium on the Issuance of Warrants	—		—		627,635		—			627,635
Common Stock Issued in Settlement of Lawsuit	2,000,000		200		559,800		—			560,000
Collection of Receivable on Option Exercise	—		—		580		—			580
Collection of Receivable on Sale of Stock Subscription Agreements	—		—		94,000		—			94,000
Net Loss for the Period (Unaudited)	—		—		—		(3,525,867	)		(3,525,867	)
Balance – September 30, 2004 (Unaudited)	50,724,473	$	5,072	$	32,978,076	$	(32,655,960	)	$	327,188
Balance - December 31, 2004	66,115,713	$	6,611	$	33,234,036	$	(33,110,325	)	$	130,322
Capital Contribution – Interest Expense	—		—		8,315		—			8,315
Stock Options Granted -
Compensation for Services Rendered	—		—		5,433		—			5,433
Common Shares Issued -
Compensation for Services Rendered	34,863,000		3,487		1,450,549		—			1,454,036
Sale of Shares Under the Stock Subscription Agreements	11,300,866		1,130		315,772		—			316,902
Net Loss for the Period (Unaudited)	—		—		—		(2,100,230	)		(2,100,230	)
Balance – September 30, 2005 (Unaudited)	112,279,579	$	11,228	$	35,014,105	$	(35,210,555	)	$	(185,222	)

The accompanying notes are an integral part of these financial statements.

5

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

STATEMENTS OF OPERATIONS (UNAUDITED)

		Three Months Ended
		September 30,
		2005			2004
Revenues
Licensing and Royalty Revenue	$	94,860		$	37,500
Net Sales		—			18,057
Total Revenue		94,860			55,557
Expenses
Cost of Sales		—			4,754
General and Administrative		189,713			174,804
Marketing and Business Development		246,106			189,656
Research and Development		—			16,016
Depreciation and Amortization		18,523			18,400
Total Expenses		454,342			403,630
Loss Before Other Expenses		(359,482	)		(348,073	)
Other Expenses
Loss on Disposal of Leasehold Improvements		—			—
Premium on Issuance of Warrants		—			—
Interest Expense		3,179			2,026
Lawsuit Settlement		—			—
Total Other Expenses		3,179			2,026
Net Loss for the Period	$	(362,661	)	$	(350,099	)
Net Loss per Common Share - Basic and Diluted	$	(0.00	)	$	(0.01	)
Weighted Average Number of Common Shares
Outstanding – Basic and Diluted		98,091,765			50,724,473

The accompanying notes are an integral part of these financial statements.

6

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

STATEMENTS OF OPERATIONS (UNAUDITED)

		Nine Months Ended
		September 30,
		2005			2004
Revenues
Licensing and Royalty Revenue	$	169,860		$	75,000
Net Sales		181,487			53,959
Total Revenue		351,347			128,959
Expenses
Cost of Sales		434,437			12,976
General and Administrative		504,047			821,420
Marketing and Business Development		1,400,188			1,493,411
Research and Development		21,448			80,150
Depreciation and Amortization		55,509			53,470
Total Expenses		2,415,629			2,461,427
Loss Before Other Expenses		(2,064,282	)		(2,332,468	)
Other Expenses
Loss on Disposal of Leasehold Improvements		27,633			—
Premium on Issuance of Warrants		—			627,635
Interest Expense		8,315			5,764
Lawsuit Settlement		—			560,000
Total Other Expenses		35,948			1,193,399
Net Loss for the Period	$	(2,100,230	)	$	(3,525,867	)
Net Loss per Common Share - Basic and Diluted	$	(0.03	)	$	(0.07	)
Weighted Average Number of Common Shares
Outstanding – Basic and Diluted		83,749,936			49,675,416

7

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

STATEMENTS OF CASH FLOWS (UNAUDITED)

		Nine Months Ended
		September 30,
		2005			2004
Cash Flows from Operating Activities
Net Loss for the Period	$	(2,100,230	)	$	(3,525,867	)
Adjustments to Reconcile Net Loss for the Period
to Net Cash Flows from Operating Activities:
Depreciation and Amortization		55,509			53,470
Capital Contributions:
Premium on the Issuance of Warrants		—			627,635
Deemed Interest Expense on
Loans from Stockholders		8,315			5,764
Deferred Licensing Revenue		(151,110	)		(37,500	)
Share and Option Grants to Consultants		1,357,469			1,105,696
Shares Issued for Lawsuit Settlement		—			560,000
Inventory Obsolescence Reserve		326,682			—
Loss on Disposal of Leasehold Improvements		27,633			—
Changes in Assets and Liabilities:
Accounts Receivable		(129,271	)		1,234
Inventory		114,064			31,647
Prepaid Expenses		10,934			(25,963	)
Accounts Payable and Accrued Expenses		124,433			(246,646	)
Net Cash Flows from Operating Activities		(355,572	)		(1,450,530	)
Cash Flows from Investing Activities
Purchases of Property and Equipment		(645	)		—
Investment in Patents and Trademarks – Net		(18,189	)		(92,914	)
Net Cash Flows from Investing Activities		(18,834	)		(92,914	)
Cash Flows from Financing Activities
Proceeds from Exercise of Stock Options		—			580
Proceeds from the Sale of Shares Under
Share Subscription Agreements		316,902			1,333,510
Advances from Stockholders		20,000			—
Proceeds from Exercise of Warrants		—			259,373
Net Cash Flows from Financing Activities		336,902			1,593,463
Net Change in Cash and Cash Equivalents		(37,504	)		50,019
Cash and Cash Equivalents - Beginning of Period		65,866			25,132
Cash and Cash Equivalents - End of Period	$	28,362		$	75,151

The accompanying notes are an integral part of these financial statements.

-continued-

8

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

STATEMENTS OF CASH FLOWS (UNAUDITED) – continued

		Nine Months Ended
		September 30,
		2005		2004
Non-Cash Investing and Financing Activities
Common Stock Issued in Lieu of Cash Payment of
Accounts Payable and Accrued Expenses	$	102,000	$	—
SUPPLEMENTAL DISCLOSURE
Interest Paid	$	—	$	—
Income Taxes Paid	$	—	$	—

The accompanying notes are an integral part of these financial statements.

9

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

NOTES TO FINANCIAL STATEMENTS

Note A -	Basis of Presentation
	The condensed financial statements of L.A.M. Pharmaceutical, Corp. (the “Company”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the annual audited financial statements and the notes thereto included in the Company’s Form 10-KSB and other reports filed with the SEC.
	The accompanying unaudited interim financial statements reflect all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year as a whole. Factors that affect the comparability of financial data from year to year and for comparable interim periods include non-recurring expenses associated with market launch of new products, costs incurred to raise capital, acquisitions of patents and trademarks, and stock options and awards.
	Reclassifications
	Certain amounts in the prior year financial statements have been reclassified to conform with the current year presentation. The reclassifications made to the prior year have no impact on the net loss, or overall presentation of the financial statements.
Note B -	Accounting Policies
	Revenue Recognition
	Royalty Revenue Recognition
	The Company recognizes royalty revenue based on royalty reports or related information received from the licensee and when collectibility is reasonably assured.
	Sales Revenue Recognition
	The Company recognizes sales revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable when the product has been shipped to the customer, the sales price is fixed or determinable and collectibility is reasonably assured. The Company reduces revenue for estimated customer returns.
	Method of Accounting
	The Company maintains its books and prepares its financial statements on the accrual basis of accounting.
Note C -	Inventory
	Inventory is comprised of finished goods and raw materials and is stated at the lower of cost or market. Cost is determined by the first-in, first-out method and market is based on the lower of replacement cost or net realizable value. If the cost of the inventories exceeds expected market value, provisions are recorded currently for the difference between the cost and the market value. These provisions are determined based on estimates. The valuation of inventories also requires the Company to estimate excess inventories and inventories that are not saleable. The determination of excess or non-saleable inventories requires the Company to estimate the future demand for the Company’s product and consider the shelf life of the inventory.

-continued-

10

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

NOTES TO FINANCIAL STATEMENTS

Note C -	Inventory - continued
	The Company has revised its estimate of the demand for the Company’s product and recorded an inventory obsolescence provision for the estimated excess inventory as at September 30, 2005 in the amount of $326,682, due to the product expiration in August 2005.

		September 30,			December 31,
		2005			2004
IPM Wound Gel™	$	326,682		$	438,621
Raw Materials		—			2,125
		326,682			440,746
Inventory Obsolescence		(326,682	)		—
Inventories	$	—		$	440,746

Note D -	Share and Option Grants
	The Company has stock option plans under which employees, non-employee directors, consultants and investors may be granted options to purchase shares of the Company’s common stock. Options have varying vesting and expiration dates.
	The Company has elected to follow Accounting Principles Board Opinion (APB) No. 25 and related interpretations in accounting for its stock-based compensation made to its employees. APB No. 25 requires no recognition of compensation expense for most of the stock-based compensation arrangements provided by the Company, namely, broad-based employee stock purchase plans and option grants where the exercise price is equal to or less than the market value at the date of grant. However, APB No. 25 requires recognition of compensation expense for variable award plans over the vesting periods of such plans, based upon the then-current market values of the underlying stock. In contrast, Statement of Financial Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation, as amended by SFAS No. 148, Accounting for Stock-Based Compensation – Transition and Disclosure – an amendment of FASB Statement No. 123, requires recognition of compensation expense for grants of stock, stock options, and other equity instruments, over the vesting periods of such grants, based on the estimated grant-date fair values of those grants. The Company generally uses the straight-line method of amortization for stock based compensation.
	Had compensation cost for these plans been determined consistent with SFAS No. 123, the Company’s net loss and net loss per share would have been adjusted to the following pro forma amounts:

		For the Three Months				For the Nine Months Ended
				Ended
		September		September		September		September
		30, 2005		30, 2004		30, 2005		30, 2004
Net loss
As reported	$	362,661	$	350,099	$	2,100,230	$	3,525,867
Pro forma	$	362,661	$	350,099	$	2,100,230	$	3,525,867
Net Loss per share
As reported	$	0.00	$	0.01	$	0.03	$	0.07
Pro forma	$	0.00	$	0.01	$	0.03	$	0.07

11

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)

Lewiston, New York

NOTES TO FINANCIAL STATEMENTS

Note E -	Licensing Agreement
	The Company has an exclusive license agreement (the "License Agreement") with Ixora Bio-Medical Company, Inc. ("Ixora"). Under the License Agreement, Ixora paid the Company $500,000 cash and 2,025,000 common stock of Ixora for the exclusive rights of the Company’s male and female sexual dysfunction product technology. Ixora has also agreed to pay all costs for the development, registration and protection of intellectual property, including but not limited to patent costs, raw material costs, clinical development costs and compensation of all Company personnel involved in the sexual dysfunction product technology. The Company must obtain written consent from Ixora on the reimbursement of costs in excess of $10,000 per quarter.
	The initial receipt of 2,025,000 common stock of Ixora represented a 45% ownership interest in Ixora. The Company accounted for the investment in Ixora on the equity method, which was written down to zero when the Company’s share of Ixora’s losses were subsequently recorded. During 2000 and 2001, Ixora received additional equity financing which decreased the Company’s ownership in Ixora to 18%. As a result the Company currently accounts for their investment in Ixora on the cost basis, which remains at zero.
	The Company determined that the share portion of the licensing fee should not be recorded as revenue until royalty revenue is earned from Ixora. During the third quarter of 2005, the Company determined that it would be forced to cancel the Licensing Agreement for non-payment. At the same time, all receivables from Ixora were written off to bad debt.
	Subsequent to September 30, 2005, the Company entered into a new agreement with Exoris Inc. ("Exoris"). Under the License agreement, Exoris paid the Company $100,000 cash.
Note F -	Going Concern
	The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has reported recurring negative cash flows from operations and recurring net losses, which has resulted in an accumulated deficit of $35,210,555 at September 30, 2005. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
	The Company’s continued existence is dependent upon its ability to raise capital or to successfully market and sell its products. As at the date of filing, the Company has received the initial upfront payment from Exoris of $100,000 cash. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
Note G -	Legal Proceedings
	A complaint was filed against the Company on August 3, 2005, in the 11th judicial circuit court in and for Miami-Dade County, Florida, which complaint was subsequently amended on October 31, 2005 (as amended, the “CRG Complaint”), by Capital Research Group, Inc. (“CRG”). The CRG Complaint alleged that the Company breached the terms of a Satisfaction Agreement previously entered into between CRG and the Company relating to a contractual dispute, whereby the Company agreed to deliver shares of its common stock and warrants to CRG. CRG alleges that the number of shares delivered was insufficient and is seeking damages in the principal amount of $132,000. The Company does not believe CRG’s claim has merit and intends to vigorously defend the CRG Complaint. CRG has also filed a demand for arbitration with the American Arbitration Association (the “Arbitration Action”) seeking $288,902, together with prejudgment interest, in connection with a Consulting Agreement between the Company and CRG dated April 19, 2004 (the “Consulting Agreement”). The Company has not been formally served with the Arbitration Action, but intends to oppose CRG’s demands in the Arbitration Action and believes that no amounts are due to CRG under the Consulting Agreement.

12

Item 2      Management’s Discussion and Analysis of Financial Condition or Plan of Operation

     The following sets forth certain financial data with respect to us and is qualified in its entirety by reference to the more detailed financial statements and notes included elsewhere in this quarterly report on form 10-QSB. The following contains statements that constitute “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. In some cases, you can also identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions. All forward-looking statements are based on assumptions that we have made based on our experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate. These statements are subject to numerous risks and uncertainties, many of which are beyond our control. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Overview

     We are the owner of a proprietary wound healing and transdermal drug delivery technology that involves the use of an original L.A.M. Ionic Polymer Matrix™ technology that we developed for the purpose of delivering, enhancing and sustaining the action of certain established therapeutic agents. Our corporate objective is to develop, market and license wound healing and transdermally delivered drugs, both prescription and over-the-counter, using our patented L.A.M. Ionic Polymer Matrix™ technology. We intend to seek out corporate alliances and co-marketing partnerships where other drugs and topical products can be enhanced by our L.A.M. IPM™ technology. We intend to acquire complementary products, technologies or companies by identifying and evaluating potential products and technologies developed by third parties that we believe fit within our overall objective. Acquisitions may be funded through a combination of issuance of shares and/or cash, in which case we would be required to raise additional funding through debt instruments or equity financing. We currently do not have any agreements to acquire any complementary products, technologies or companies.

     We received clearance of our L.A.M. IPM Wound Gel™ 510(k) pre-market notification from the FDA in April 2002 and commenced limited commercial sales in August of 2002. Since August 2002, we have continued efforts to develop commercial sales in the United States market. In addition, we have pursued a strategy of seeking regulatory approval to sell our L.A.M. IPM Wound Gel™ in additional markets outside of the United States.

      In March 2004, we received regulatory approval to import and sell our L.A.M. IPM Wound Gel™ in China. We also entered into an agreement with a distributor in the Chinese market. Subsequent to the agreement entered into in December 2003 with a distributor in the Latin America market, application for our regulatory approval to market our product in a number of Latin American countries have been filed by our distributor.

     In May 2004, Ixora Bio-Medical Co. (“Ixora”) announced that it had commenced commercial sales of Ixora™ for Women. Upon commencement of commercial sales of this OTC product, Ixora is required to pay us royalties of 6.5% of all net sales with a minimum royalty payment of $75,000 for the first year and $150,000 for the second year of sales. As of September 30, 2005 we have cancelled their licensing agreement due to non-payment.

     In January 2004, we announced the veterinary application of our L.A.M. IPM Wound Gel™ targeting Pyotraumatic dermatitis, commonly known as hot spots suffered by dogs. We are currently seeking licensing or partnership opportunity with companies already well established in the veterinary field and presently do not intend on marketing this application under our own brand.

     Our revenue in the first nine months of 2005 increased to $351,000 compared to $129,000 in the same period in the prior year. This increase in revenue is primarily attributable to increased sales of our IPM Wound Gel™ to our distributor in China, licensing and royalty revenue that did not occur until the second quarter of 2004. and the write off of the remaining deferred licensing revenue. Our operating expenses decreased from $2,461,000 in 2004 to $2,416,000 in 2005 primarily as a result of an overall decrease in general and administrative (specifically salaries and rent expense), marketing and business development expenses, and research and development, offset by the addition of an inventory obsolescence reserve. Net loss for the nine months decreased to $2,100,000 in 2005 compared to $3,526,000 in 2004.

13

Selected Financial Data

     The summary financial data set forth below with respect to the statements of operations for the nine months ended September 30, 2005 and 2004 and with respect to the balance sheets as at September 30, 2005 and December 31, 2004, are derived from, and should be read in conjunction with the financial statements and the related notes.

Income Statement Data:

		For the Nine Months Ended
		September 30,					Percentage
		2005			2004		Change
Revenue	$	351,347			128,959		272%
Operating Expenses		2,415,629			2,461,427		(2%	)
Other Expenses		35,948			1,193,399
Net Loss	$	(2,100,230	)	$	(3,525,867	)

Balance Sheet Data:

		As at
		September 30, 2005			December 31, 2004
Current Assets	$	227,373		$	587,286
Total Assets		871,281			1,295,502
Current Liabilities		886,958			995,775
Total Liabilities		1,056,503			1,165,180
Working Capital (Deficiency)		(659,585	)		(408,489	)
Stockholders' Equity (Deficit)		(185,222	)		130,322

Results of Operations

Three months Ended September 30, 2005 compared with Three Months Ended September 30, 2004

Revenues

     In May 2004 Ixora announced that it had commenced commercial sales of Ixora™ for Women. Upon commencement of commercial sales of this OTC product, Ixora is required to pay us royalties of 6.5% of all net sales with a minimum royalty payment of $75,000 for the first year and $150,000 for the second year of sales. During the three months ended September 30, 2005 we recorded royalty revenue of $0 and recognized the remaining balance of the deferred licensing revenue as part of the cancellation of the Ixora agreement.

     Sales of our IPM Wound Gel™ during the third quarter of 2005 decreased by $6,000 to $0 from sales in the same quarter of 2004 of $18,000. The decrease in sales resulted from the product’s expiry date in the third quarter of 2005. Subsequent to the end of the third quarter, Company is arranging for the production of a new batch of IPM Wound Gel™ which is expected to be available for sale by the first quarter of 2006.

Cost of Goods Sold

     Cost of Goods Sold for the three months ended September 30, 2005 were $0, representing a decrease of $4,750 from $4,750 in 2004. The decrease includes an overall decrease in sales.

General and Administrative Expenses

     General and administrative expenses for the three months ended September 30, 2005 increased $15,000 to $190,000 from $175,000 for the three months ended September 30, 2004. The increase resulted from issuance of stock for services rendered to consultants.

14

     The primary components of general and administrative expenses for the three months ended September 30, 2005 and 2004 were as follows:

	Three months ended
	September 30,
	2005	2004
Officers’ salaries	$ 15,000	$ 11,875
Employee salaries and benefits	11,020	26,088
Investor relations	1,857	9,960
Legal and auditing (including SEC filings)	43,341	46,207
Insurance	—	19,048
Shares and options issued to consultants	89,311	12,188
Other expenses	29,184	49,438
Total	189,713	174,804

Marketing and Business Development Expense

     Marketing and business development expense for the three months ended September 30, 2005 increased $56,000 to $246,000 from $190,000 for the three months ended September 30, 2004. The increase resulted from services performed in connection with obtaining distribution agreements in Central and South America.

Research and Development Expense

     Research and development expenses for the three months ended September 30, 2005 decreased $16,000 to $0 from $16,000 for the three months ended September 30, 2004. We have chosen to reduce our research and development expenditures in order to focus on establishing our existing products in the market place. As our products obtain acceptance and adequate cash resources become available we will increase our research and development expenditures and accelerate the development of additional products.

Nine months Ended September 30, 2005 compared with Nine Months Ended September 30, 2004

Revenues

     In May 2004 Ixora announced that it had commenced commercial sales of Ixora™ for Women. Upon commencement of commercial sales of this OTC product, Ixora is required to pay us royalties of 6.5% of all net sales with a minimum royalty payment of $75,000 for the first year and $150,000 for the second year of sales. During the quarter ended September 30, 2005 we wrote off all accrued royalty revenue for the year of $56,250 and have taken into income a portion of the deferred royalty revenue equal to the royalty payments received of $18,750.

     Sales of our IPM Wound Gel™ during the nine months ended September 30, 2005 increased by $127,000 to $181,000 from sales in the same period of 2004 of $54,000. The increase in sales resulted from our efforts in distributing our product in China.

Cost of Goods Sold

     Cost of Goods Sold for the nine months ended September 30, 2005 were $434,000, representing an increase of $421,000 from $13,000 in 2004. The increase includes an overall increase in sales and a charge for obsolete inventory of $327,000. The gross profit percentage of (69%) for the nine months ended September 30, 2005 decreased when compared to 90% for the same period of 2004. The decrease in the gross profit percentage resulted from lower margin sales to our distributor in China and lack of sales in Q3.

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General and Administrative Expenses

     General and administrative expenses for the nine months ended September 30, 2005 decreased $317,000 to $504,000 from $821,000 for the nine months ended September 30, 2004. The decrease resulted from investor relations expenses incurred in 2004 that did not incur in the current year, an increase in 2004 officers’ salaries as a result of a bonus related to regulatory approval in China and the company’s continuing its efforts to reduce ongoing operating costs.

     The primary components of general and administrative expenses for the nine months ended September 30, 2005 and 2004 were as follows:

	Nine months ended
	September 30,
	2005	2004
Officers’ salaries	$ 40,825	$ 51,000
Employee salaries and benefits	49,096	73,742
Investor relations	15,496	277,505
Financial consulting	13,527	—
Legal and auditing (including SEC filings)	85,632	126,741
Insurance	10,100	34,051
Shareholder special meeting expenses	—	7,496
Shares and options issued to consultants	185,333	101,355
Other expenses	104,038	149,030
Total	504,047	821,420

Marketing and Business Development Expense

     Marketing and business development expense for the nine months ended September 30, 2005 decreased $93,000 to $1,400,000 from $1,493,000 for the nine months ended September 30, 2004. The decrease resulted from a reduction of costs related to promotional marketing activities.

Research and Development Expense

     Research and development expenses for the nine months ended September 30, 2005 decreased $59,000 to $21,000 from $80,000 for the nine months ended September 30, 2004. We have chosen to reduce our research and development expenditures in order to focus on establishing our existing products in the market place. Costs incurred during the current year represent fixed costs of running our R&D department. As our products obtain acceptance and adequate cash resources become available we will increase our research and development expenditures and accelerate the development of additional products.

Liquidity and Sources of Capital

Nine Months ended September 30, 2005

     Our cash and cash equivalents as of September 30, 2005 was $28,000. Our working capital decreased by $252,000 from a deficiency of $408,000 as of December 31, 2004 to a deficiency of $660,000 as of September 30, 2005.

     Our operations used approximately $356,000 in cash during the nine months ended September 30, 2005 compared to $1,451,000 used in the same period in the prior year. This was primarily due to the Company’s continuing efforts to reduce operating costs and the reduction of inventory. This was offset by an increase in accounts receivable of $129,000.

     During this period we also invested $18,000 in patents and trademarks and $600 in property and equipment.

     During the nine months ended September 30, 2005, funds were raised principally from subscription agreements for the issuance of our common stock in the amount of $317,000.

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     During the nine months ended September 30, 2005 we sold units of our common stock in which each unit consists of shares of our common stock plus warrants. Through private placements we sold 5,639,676 shares of our common stock, plus warrants for the purchase of an additional 4,979,756 shares to 15 investors for proceeds totaling $293,745. Full proceeds were received prior to September 30, 2005. Each warrant will entitle the holder to purchase one share of common stock at varying dates prior to July 1, 2008 at exercise prices varying from $0.04 per share to $0.75 per share.

     Historically, we have relied on the proceeds from the capital raised from the issuance of debt and equity securities to individual investors and related parties to sustain our operations. While we are currently seeking capital, there can be no assurance that we will be able to obtain financing or sell assets on commercially acceptable terms to meet our capital requirements. Our inability to raise capital will have a material adverse effect on our financial condition, ability to meet our obligations and operating needs, and results of operations.

Application of Critical Accounting Policies

     Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management's application of accounting policies. Critical accounting policies include revenue recognition, inventory valuation and accounting for income taxes.

     We recognize revenue in accordance with Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements”. We recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable when the product has been shipped to the customer, the sales price is fixed or determinable and collectibility is reasonably assured. We reduce our revenue for estimated customer returns. We recognize royalty revenue based on royalty reports or related information received from the licensee and when collectibility is reasonably assured.

     Inventory is comprised of finished goods and raw materials and is stated at the lower of cost or market. Cost is determined by the first-in, first-out method and market is based on the lower of replacement cost or net realizable value. If the cost of the inventories exceeds their expected market value, provisions are recorded currently for the difference between the cost and the market value. These provisions are determined based on estimates. The valuation of inventories also requires us to estimate excess inventories and inventories that are not saleable. The determination of excess or non-saleable inventories requires us to estimate the future demand for our product and consider the shelf life of the inventory. If actual demand is less than our estimated demand, we could be required to record inventory reserves, which would have an adverse impact on our results of operations.

     Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. All deferred tax assets have been fully reserved against due to the uncertainty as to when or whether the tax benefit will be realized.

Item 3       Controls and Procedures

     Joseph T. Slechta, our President, Chief Executive Officer, Principal Financial Officer and Chief Accounting Officer, has evaluated the effectiveness of our disclosure controls and procedures as of a date within 90 days prior to the filing date of this report; and in his opinion our disclosure controls and procedures ensure that material information relating to us, is made known to him by others within our entity, particularly during the period in which this report is being prepared, so as to allow timely decisions regarding required disclosure. To the knowledge of Mr. Slechta there have been no significant changes in our internal controls or in other factors that could significantly affect our internal controls subsequent to the date of their evaluation. As a result, no corrective actions with regard to significant deficiencies or material weakness in our internal controls were required.

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PART II
OTHER INFORMATION

Item 1       Legal Proceedings

     A complaint was filed against the Company on August 3, 2005, in the 11^th judicial circuit court in and for Miami-Dade County, Florida, which complaint was subsequently amended on October 31, 2005 (as amended, the “CRG Complaint”), by Capital Research Group, Inc. (“CRG”). The CRG Complaint alleged that the Company breached the terms of a Satisfaction Agreement previously entered into between CRG and the Company relating to a contractual dispute, whereby the Company agreed to deliver shares of its common stock and warrants to CRG. CRG alleges that the number of shares delivered was insufficient and is seeking damages in the principal amount of $132,000. The Company does not believe CRG’s claim has merit and intends to vigorously defend the CRG Complaint. CRG has also filed a demand for arbitration with the American Arbitration Association (the “Arbitration Action”) seeking $288,902, together with prejudgment interest, in connection with a Consulting Agreement between the Company and CRG dated April 19, 2004 (the “Consulting Agreement”). The Company has not been formally served with the Arbitration Action, but intends to oppose CRG’s demands in the Arbitration Action and believes that no amounts are due to CRG under the Consulting Agreement.

Item 2      Changes in Securities

     During the nine months ended September 30, 2005 we sold units of our common stock in which each unit consists of shares of our common stock plus warrants. Through private placements we sold 5,639,676 shares of our common stock, plus warrants for the purchase of an additional 4,979,756 shares to 15 investors for proceeds totaling $293,745. Full proceeds were received prior to September 30, 2005. Each warrant will entitle the holder to purchase one share of common stock at varying dates prior to July 1, 2008 at exercise prices varying from $0.04 per share to $0.75 per share.

     On June 6, 2005 we filed a registration statement with the United States Securities and Exchange Commission (Commission File No. 333-125554) to register the common shares issued as a result of this private placement. On June 27, 2005 we filed Amendment No. 1 to this registration statement. The registration statement was declared effective by the SEC on June 29, 2005.

Item 6      Exhibits

Number	Title
31.1	Certification by Joseph T. Slechta, President, Chief Executive Officer, Principal Financial Officer and Chief Accounting Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification by Joseph T. Slechta, President, Chief Executive Officer, Principal Financial Officer and Chief Accounting Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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SIGNATURES

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

	L.A.M. PHARMACEUTICAL, CORP.
November 21, 2005	By:	/s/ Joseph T. Slechta
		Joseph T. Slechta, President, Chief Executive Officer, Principal
		Financial Officer and Chief Accounting Officer

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