----

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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

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

| California(State or Other Jurisdiction ofIncorporation or Organization) | 95-3876317(I.R.S. EmployerIdentification No.) |
|-------------------------------------------------------------------------|-----------------------------------------------|

----

| Large Accelerated Filer   o                                            | Accelerated Filer    ̈    |
|----------------------------------------------------------------------------------|-----------------------------------------|
| Non-accelerated Filer   o(Do not check if a smaller reporting company) | Smaller reporting company   x |

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| PART I  | FINANCIAL INFORMATION                                                                       | Page   |
|---------|---------------------------------------------------------------------------------------------|--------|
|    |                                                                                        |   |
| Item 1  | Financial Statements                                                                        | 3      |
|    |                                                                                        |   |
|    | Balance Sheets                                                                              | 3      |
|    |                                                                                        |   |
|    | Statements of Income                                                                        | 5      |
|    |                                                                                        |   |
|    | Statements of Cash Flows                                                                    | 6      |
|    |                                                                                        |   |
|    | Notes to the Financial Statements                                                           | 7      |
|    |                                                                                        |   |
| Item 2  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 9      |
|    |                                                                                        |   |
| Item 3  | Quantitative and Qualitative Disclosures About Market Risk                                  | 11     |
|    |                                                                                        |   |
| Item 4  | Controls and Procedures                                                                     | 11     |
|    |                                                                                        |   |
|    |                                                                                        |   |
|    |                                                                                        |   |
| PART II | OTHER INFORMATION                                                                           |   |
|    |                                                                                        |   |
| Item 1  | Legal Proceedings                                                                           | 12     |
|    |                                                                                        |   |
| Item 1A | Risk Factors                                                                                | 12     |
|    |                                                                                        |   |
| Item 2  | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 12     |
|    |                                                                                        |   |
| Item 3  | Defaults upon Senior Securities                                                             | 12     |
|    |                                                                                        |   |
| Item 4  | (Removed and Reserved)                                                                      | 12     |
|    |                                                                                        |   |
| Item 5  | Other Information                                                                           | 12     |
|    |                                                                                        |   |
| Item 6  | Exhibits                                                                                    | 12     |

----

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|                                                                           |   | July 31, |       |   | October 31, |   |
|--------------------------------------------------------------------------------|--------|----------|------------|--------|-------------|--------|
|                                                                           |   | 2010     |       |   | 2009        |   |
| Current assets                                                                 |   |     |       |   |        |   |
|                                                                           |   |     |       |   |        |   |
| Cash and cash equivalents                                                      |   | $        | 403,933    |   |        | $      | 431,037 |   |
| Accounts receivable - trade, net of allowance for doubtful accounts of $42,163 |   |     | 2,597,966  |   |        |   | 2,565,125 |   |
| Inventory                                                                      |   |     | 3,598,534  |   |        |   | 3,843,793 |   |
| Promotional products and materials                                             |   |     | 172,549    |   |        |   | 209,847 |   |
| Prepaid expenses and other current assets                                      |   |     | 284,689    |   |        |   | 263,594 |   |
| Deferred income taxes                                                          |   |     | 376,500    |   |        |   | 376,500 |   |
|                                                                           |   |     |       |   |        |   |   |   |
| Total current assets                                                           |   |     | 7,434,171  |   |        |   | 7,689,896 |   |
|                                                                           |   |     |       |   |        |   |   |   |
| Property and equipment, net                                                    |   |     | 275,812    |   |        |   | 313,324 |   |
| Deposits and other assets                                                      |   |     | 80,000     |   |        |   | 250,500 |   |
| Deferred income taxes                                                          |   |     | 2,600,700  |   |        |   | 2,600,700 |   |
|                                                                           |   |     |       |   |        |   |   |   |
| Total assets                                                                   |   | $        | 10,390,683 |   |        | $      | 10,854,420 |   |

----

----

|                                                                                                                                                                                                                                     |   | July 31, |        |   | October 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-------------|--------|-------------|--------|
|                                                                                                                                                                                                                                     |   | 2010     |        |   | 2009        |   |
| Current liabilities                                                                                                                                                                                                                      |   |     |        |   |        |   |
| Accounts payable - trade                                                                                                                                                                                                                 |   | $        | 3,908,282   |   |        | $      | 3,532,159 |   |
| Accrued expenses and other current liabilities                                                                                                                                                                                           |   |     | 1,376,611   |   |        |   | 1,538,516 |   |
| Current portion of long-term debt                                                                                                                                                                                                        |   |     | 290,000     |   |        |   | 415,000 |   |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Total current liabilities                                                                                                                                                                                                                |   |     | 5,574,893   |   |        |   | 5,485,675 |   |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Long-term debt, net of current portion                                                                                                                                                                                                   |   |     | 2,837,500   |   |        |   | 3,805,000 |   |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Total liabilities                                                                                                                                                                                                                        |   |     | 8,412,393   |   |        |   | 9,290,675 |   |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                            |   |     |        |   |        |   |   |   |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Shareholders' equity                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Preferred stock, $0.001 par value 5,000,000 shares authorized                                                                                                                                                                            |   |     |        |   |        |   |   |   |
| Series A 2% convertible preferred stock, $0.001 par value; liquidation preference (approximately $928,000 and $915,000 at July 31, 2010 and October 31, 2009 respectively); 1,360,000 shares authorized;1,200,000 issued and outstanding |   |     | 1,200       |   |        |   | 1,200 |   |
| Common stock, $0.001 par value; 30,000,000 shares authorized; 6,955,639 shares issued and outstanding                                                                                                                                    |   |     | 6,956       |   |        |   | 6,956 |   |
| Additional paid-in capital                                                                                                                                                                                                               |   |     | 15,656,812  |   |        |   | 15,656,812 |   |
| Accumulated deficit                                                                                                                                                                                                                      |   |     | (13,686,678 | )      |        |   | (14,101,223 | ) |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Total shareholders' equity                                                                                                                                                                                                               |   |     | 1,978,290   |   |        |   | 1,563,745 |   |
|                                                                                                                                                                                                                                     |   |     |        |   |        |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                               |   | $        | 10,390,683  |   |        | $      | 10,854,420 |   |

----

----

|                                        |   | For The Three Months Ended |      |   | For The Nine Months Ended |   |
|---------------------------------------------|--------|----------------------------|-----------|--------|---------------------------|--------|
|                                        |   | 2010                       |      |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |
| Net sales                                   |   | $                          | 4,909,351 |   |                      | $      | 5,932,665 |   |   | $ | 15,936,826 |   |   | $ | 18,003,359 |   |
| Cost of sales                               |   |                       | 1,674,907 |   |                      |   | 2,199,444 |   |   |   | 5,772,591 |   |   |   | 6,514,423 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                |   |                       | 3,234,444 |   |                      |   | 3,733,221 |   |   |   | 10,164,235 |   |   |   | 11,488,936 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                          |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling                                     |   |                       | 1,911,206 |   |                      |   | 2,181,179 |   |   |   | 6,062,682 |   |   |   | 6,540,116 |   |
| General and administrative                  |   |                       | 1,102,275 |   |                      |   | 1,287,892 |   |   |   | 3,397,472 |   |   |   | 4,091,974 |   |
| Depreciation and amortization               |   |                       | 49,784    |   |                      |   | 39,180 |   |   |   | 143,472 |   |   |   | 110,846 |   |
| Total operating expenses                    |   |                       | 3,063,265 |   |                      |   | 3,508,251 |   |   |   | 9,603,626 |   |   |   | 10,742,936 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                      |   |                       | 171,179   |   |                      |   | 224,970 |   |   |   | 560,609 |   |   |   | 746,000 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense/other, net                 |   |                       | (36,031   | )      |                      |   | (50,831 | ) |   |   | (125,651 | ) |   |   | (154,608 | ) |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income before taxes                         |   |                       | 135,148   |   |                      |   | 174,139 |   |   |   | 434,958 |   |   |   | 591,392 |   |
| Income taxes                                |   |                       | 19,978    |   |                      |   | 19,199 |   |   |   | 20,413 |   |   |   | 21,347 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                  |   |                       | 115,170   |   |                      |   | 154,940 |   |   |   | 414,545 |   |   |   | 570,045 |   |
| Preferred Stock Dividend                    |   | $                          | (4,599    | )      |                      | $      | (4,509 | ) |   | $ | (13,730 | ) |   | $ | (13,459 | ) |
| Net income available to common shareholders |   | $                          | 110,571   |   |                      | $      | 150,431 |   |   | $ | 400,815 |   |   | $ | 556,586 |   |
| Basic earnings per share                    |   | $                          | 0.02      |   |                      | $      | 0.02 |   |   | $ | 0.06 |   |   | $ | 0.08 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                  |   | $                          | 0.01      |   |                      | $      | 0.02 |   |   | $ | 0.05 |   |   | $ | 0.07 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common shares              |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| outstanding - Basic                         |   |                       | 6,955,639 |   |                      |   | 6,955,639 |   |   |   | 6,955,639 |   |   |   | 6,955,639 |   |
|                                        |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common shares              |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| outstanding - Diluted                       |   |                       | 8,341,456 |   |                      |   | 8,314,201 |   |   |   | 8,341,456 |   |   |   | 8,314,201 |   |

----

----

|                                                                              |   | 2010   |       |   | 2009   |   |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Cash flows from operating activities                                              |   |   |       |   |   |   |
| Net income                                                                        |   | $      | 414,545    |   |   | $      | 570,045 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |       |   |   |   |   |   |
| Depreciation and amortization                                                     |   |   | 143,472    |   |   |   | 110,846 |   |
| (Increase) decrease in:                                                           |   |   |       |   |   |   |   |   |
| Accounts receivable - trade                                                       |   |   | (32,842    | )      |   |   | (269,903 | ) |
| Inventories                                                                       |   |   | 245,258    |   |   |   | 1,253,524 |   |
| Promotional products and materials                                                |   |   | 37,298     |   |   |   | (54,301 | ) |
| Prepaid expenses and other current assets                                         |   |   | (21,095    | )      |   |   | 136,803 |   |
| Increase (decrease) in:                                                           |   |   |       |   |   |   |   |   |
| Accounts payable - trade                                                          |   |   | 376,123    |   |   |   | (895,025 | ) |
| Accrued expenses and other current liabilities                                    |   |   | (161,905   | )      |   |   | (323,721 | ) |
|                                                                              |   |   |       |   |   |   | . |   |
| Net cash provided by operating activities                                         |   |   | 1,000,854  |   |   |   | 528,268 |   |
|                                                                              |   |   |       |   |   |   |   |   |
| Cash flows from investing activities                                              |   |   |       |   |   |   |   |   |
| Purchase of property and equipment                                                |   |   | (105,958   | )      |   |   | (78,974 | ) |
| Deposits and other assets                                                         |   |   | 170,500    |   |   |   | (132,498 | ) |
|                                                                              |   |   |       |   |   |   |   |   |
| Net cash provided by (used in) investing activities                               |   |   | 64,542     |   |   |   | (211,472 | ) |
|                                                                              |   |   |       |   |   |   |   |   |
| Cash flows from financing activities                                              |   |   |       |   |   |   |   |   |
| Net payments on lines of credit                                                   |   |   | (750,000   | )      |   |   | - |   |
| Payments on short-term debt                                                       |   |   | (125,000   | )      |   |   | - |   |
| Payments on long-term debt                                                        |   |   | (217,500   | )      |   |   | (367,500 | ) |
|                                                                              |   |   |       |   |   |   |   |   |
| Net cash used by financing activities                                             |   |   | (1,092,500 | )      |   |   | (367,500 | ) |
|                                                                              |   |   |       |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                         |   |   | (27,104    | )      |   |   | (50,704 | ) |
|                                                                              |   |   |       |   |   |   |   |   |
|                                                                              |   |   |       |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                    |   |   | 431,037    |   |   |   | 305,628 |   |
|                                                                              |   |   |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                                          |   | $      | 403,933    |   |   | $      | 254,924 |   |
|                                                                              |   |   |       |   |   |   |   |   |
|                                                                              |   |   |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information                                 |   |   |       |   |   |   |   |   |
|                                                                              |   |   |       |   |   |   |   |   |
| Interest paid                                                                     |   | $      | 94,861     |   |   | $      | 88,831 |   |
|                                                                              |   |   |       |   |   |   |   |   |
| Income taxes paid                                                                 |   | $      | 20,413     |   |   | $      | 21,346 |   |

----

| Office furniture and equipment | 7 years                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------|
| Computer equipment             | 3 years                                                                                   |
| Software                       | 3 years                                                                                   |
| Machinery and equipment        | 5 years                                                                                   |
| Leasehold improvements         | Term of the lease or the estimated life of the related improvements, whichever is shorter |

----

| Three months ended July 31, 2010 |   | Income(Numerator) |    |   | Shares(Denominator) |   |      | Per ShareAmount |   |
|----------------------------------|--------|-------------------|---------|--------|---------------------|--------|-----------|-----------------|--------|
|                             |   |              |    |   |                |   |      |            |   |
| Basic earnings                   |   | $                 | 110,571 |   |                |   | 6,955,639 |            |   | $ | 0.02 |   |
| Conversion of preferred stock    |   |              | 4,599   |   |                |   | 1,385,817 |            |   |   | 0.00 |   |
| Diluted earnings                 |   | $                 | 115,170 |   |                |   | 8,341,456 |            |   | $ | 0.01 |   |

| Three months ended July 31, 2009 |   | Income(Numerator) |    |   | Shares(Denominator) |   |      | Per ShareAmount |   |
|----------------------------------|--------|-------------------|---------|--------|---------------------|--------|-----------|-----------------|--------|
|                             |   |              |    |   |                |   |      |            |   |
| Basic earnings                   |   | $                 | 150,431 |   |                |   | 6,955,639 |            |   | $ | 0.02 |   |
| Conversion of preferred stock    |   |              | 4,509   |   |                |   | 1,358,562 |            |   |   | 0.00 |   |
| Diluted earnings                 |   | $                 | 154,940 |   |                |   | 8,314,201 |            |   | $ | 0.02 |   |

| Nine months ended July 31, 2010 |   | Income(Numerator) |    |   | Shares(Denominator) |   |      |   Per ShareAmount |   |
|---------------------------------|--------|-------------------|---------|--------|---------------------|--------|-----------|------------------------|--------|
|                            |   |              |    |   |                |   |      |                   |   |
| Basic earnings                  |   | $                 | 400,815 |   |                |   | 6,955,639 |                   |   | $ | 0.06 |   |
| Conversion of preferred stock   |   |              | 13,730  |   |                |   | 1,385,817 |                   |   |   | 0.01 |   |
| Diluted earnings                |   | $                 | 414,545 |   |                |   | 8,341,456 |                   |   | $ | 0.05 |   |

| Nine months ended July 31, 2009 |   | Income(Numerator) |    |   | Shares(Denominator) |   |      |   Per ShareAmount |   |
|---------------------------------|--------|-------------------|---------|--------|---------------------|--------|-----------|------------------------|--------|
|                            |   |              |    |   |                |   |      |                   |   |
| Basic earnings                  |   | $                 | 556,586 |   |                |   | 6,955,639 |                   |   | $ | 0.08 |   |
| Conversion of preferred stock   |   |              | 13,459  |   |                |   | 1,358,562 |                   |   |   | 0.01 |   |
| Diluted earnings                |   | $                 | 570,045 |   |                |   | 8,314,201 |                   |   | $ | 0.07 |   |

|                    |   | 2010   |    |   | 2009   |   |
|-------------------------|--------|--------|---------|--------|--------|--------|
|                    |   |   |    |   |   |   |
| Stock options           |   |   | — |   |   |   | 32,900 |   |
| Warrants                |   |   | — |   |   |   | 300,000 |   |
|    Total |   |   | — |   |   |   | 332,900 |   |

----

|                                                   |   | July 31,2010 |      |   | October 31,2009 |   |
|--------------------------------------------------------|--------|--------------|-----------|--------|-----------------|--------|
| Revolving line of credit from Comerica Bank            |   | $            | 1,750,000 |   |            | $      | 2,500,000 |   |
| Revolving line of credit from Bluebird Finance Limited |   |         | 1,377,500 |   |            |   | 1,595,000 |   |
| Term note payable to Ashford Capital, LLC              |   |         | —   |   |            |   | 125,000 |   |
|                                                   |   |         | 3,127,500 |   |            |   | 4,220,000 |   |
|                                                   |   |         |      |   |            |   |   |   |
| Less current portion                                   |   |         | (290,000  | )      |            |   | (415,000 | ) |
| Long-term portion                                      |   | $            | 2,837,500 |   |            | $      | 3,805,000 |   |

----

|                          |   | Three Months Ended |   |   | Nine Months Ended |   |
|-------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                          |   | July 31,           |   |   | July 31,          |   |
|                          |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Net sales                     |   |               | 100.0  | %      |              |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales                 |   |               | 34.1   |   |              |   | 37.1 |   |   |   | 36.2 |   |   |   | 36.2 |   |
| Gross profit                  |   |               | 65.9   |   |              |   | 62.9 |   |   |   | 63.8 |   |   |   | 63.8 |   |
| Operating expenses:           |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Selling                       |   |               | 38.9   |   |              |   | 36.7 |   |   |   | 38.1 |   |   |   | 36.3 |   |
| General and administrative    |   |               | 22.5   |   |              |   | 21.7 |   |   |   | 21.3 |   |   |   | 22.7 |   |
| Depreciation and amortization |   |               | 1.0    |   |              |   | 0.7 |   |   |   | 0.9 |   |   |   | 0.6 |   |
| Total operating expenses      |   |               | 62.4   |   |              |   | 59.1 |   |   |   | 60.3 |   |   |   | 59.6 |   |
| Income from operations        |   |               | 3.5    |   |              |   | 3.8 |   |   |   | 3.5 |   |   |   | 4.2 |   |
| Interest expense/other, net   |   |               | (0.7   | )      |              |   | (0.9 | ) |   |   | (0.8 | ) |   |   | (0.9 | ) |
| Income before income taxes    |   |               | 2.8    |   |              |   | 2.9 |   |   |   | 2.7 |   |   |   | 3.3 |   |
| Income taxes                  |   |               | 0.4    |   |              |   | 0.3 |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Net income                    |   |               | 2.4    | %      |              |   | 2.6 | % |   |   | 2.6 | % |   |   | 3.2 | % |

----

----

----

|                                                              | SIGNATURE EYEWEAR, INC. |                    |
|-------------------------------------------------------------------|-------------------------|-------------------------|
|                                                              |                    |                    |
|                                                              |                    |                    |
|                                                              |                    |                    |   |
| Date:       September 14, 2010 | By:                     | /s/ Michael Prince |   |
|                                                              |                    | Michael Prince          |   |
|                                                              |                    | Chief Executive Officer |   |
|                                                              |                    | Chief Financial Officer |   |

----

| Exhibit Number |   | Exhibit Description                                    |
|----------------|--------|--------------------------------------------------------|
|           |   |                                                   |
| 31.1           |   | Certification Pursuant to SEC Rule 13a-14(a)/15d-14(a) |
|           |   |                                                   |
| 32.1           |   | Certification Pursuant to 18 U.S.C. § 1350   |

----