UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


(Mark One)

[x]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
     SECURITIES  EXCHANGE  ACT  OF 1934 for the quarterly period ended April 30,
     2007

                                       OR

[ ]  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 1-8696



                                [GRAPHIC OMITED]



                         COMPETITIVE TECHNOLOGIES, INC.
             (Exact name of registrant as specified in its charter)
                             www.competitivetech.net


Delaware                                    36-2664428
--------                                    ----------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

777 Commerce Drive, Suite 100
Fairfield, Connecticut                      06825
----------------------                      -----
(Address of principal executive offices)   (Zip code)


                                 (203) 368-6044
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

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

Indicate by check mark 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 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 [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act). Large
accelerated filer [  ]  Accelerated filer [  ]  Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
rule 12b-2 of the Exchange Act).  Yes [  ]     No [X]

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

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a courtYes [  ]     No [  ]

The number of shares of the registrant's common stock outstanding as of June 11,
2007 was 8,107,380 shares.


                                        1
<PAGE>

                         COMPETITIVE TECHNOLOGIES, INC.
                         ------------------------------

                     INDEX TO QUARTERLY REPORT ON FORM 10-Q
                     --------------------------------------



PART I.  FINANCIAL INFORMATION     PAGE NO.
------------------------------     --------

Item 1.     Condensed  Consolidated  Financial  Statements  (Unaudited)

            Condensed Consolidated Balance Sheets at
                 April 30, 2007 and July 31, 2006                              3

            Condensed Consolidated Statements of Operations for the
                 three months ended April 30, 2007 and 2006                    4

            Condensed Consolidated Statements of Operations for the
                 nine months ended April 30, 2007 and 2006                     5

            Condensed Consolidated Statement of Comprehensive Income
                 (Loss) and Changes in Shareholders' Interest for the
                 nine months ended April 30, 2007                              6

            Condensed Consolidated Statements of Cash Flows for the
                 nine months ended April 30, 2007 and 2006                     7

            Notes to Condensed Consolidated Financial Statements          8 - 14

Item 2.     Management's  Discussion and Analysis of Financial
            Condition and Results of  Operations                         15 - 21

Item 3.     Quantitative and Qualitative Disclosures About Market Risk        22

Item 4.     Controls and Procedures                                           23


PART II.  OTHER INFORMATION
---------------------------

Item 1.     Legal Proceedings                                                 24

Item 1A.    Risk factors                                                      24

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds       24

Item 4.     Submission of Matters to a Vote of Security Holders               24

Item 5.     Other                                                             24

Item 6.     Exhibits                                                          24

Signatures                                                                    25


                                        2
<PAGE>


Page 3

                         PART I.  FINANCIAL INFORMATION

ITEM 1.     CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                         COMPETITIVE TECHNOLOGIES, INC.
                      Condensed Consolidated Balance Sheets

                                                   APRIL 30,     July 31,
                                                     2007          2006
                                                 (UNAUDITED)         *
                                                 -----------   -----------

ASSETS
Current assets:
     Cash and cash equivalents                    $9,238,474   $12,909,311
     Receivables                                   1,959,084     3,831,501
     Equity securities                               343,400       327,420
     Prepaid expenses and other current assets       402,972       416,262
                                                  ----------   -----------
          Total current assets                    11,943,930    17,484,494

Property and equipment, net                          318,770       148,845

Equity securities                                  1,684,100       499,141
Investment in non-public companies.                  750,000          --
Prepaid royalties                                    264,924       264,947
Intangible assets, net                                 5,151        19,474
                                                  ----------   -----------
     TOTAL ASSETS                               $ 14,966,875  $ 18,416,901
                                                  ==========   ===========

LIABILITIES AND SHAREHOLDERS' INTEREST
Current liabilities:
     Accounts payable                            $ 1,140,380  $    584,833
     Accrued expenses and other liabilities        3,666,210     3,377,868
                                                   ---------   -----------
          Total current liabilities                4,806,590     3,962,701

Deferred rent                                         28,609         -
                                                   ---------   -----------
          Total liabilities                        4,835,199     3,962,701
                                                   ---------   -----------

Commitments and contingencies                          -            -
                                                   ---------   -----------

Shareholders' interest:
     5% preferred stock, $25 par value,
          35,920 shares authorized, 2,427 shares
          issued and outstanding                      60,675        60,675
     Common stock, $.01 par value, 20,000,000
          shares authorized, 8,107,380 and
          7,956,534 shares issued and
          outstanding, respectively                   81,073        79,565
     Capital in excess of par value               35,231,952    34,030,075
     Accumulated deficit                         (26,148,245)  (19,421,398)
     Accumulated other comprehensive
          income (loss)                              906,221     (294,717)
                                                 -----------   -----------

          Total shareholders' interest            10,131,676    14,454,200
                                                 -----------   -----------

TOTAL LIABILITIES AND
     SHAREHOLDERS' INTEREST                     $ 14,966,875  $ 18,416,901
                                                 ===========   ===========

                             See accompanying notes

* Balances were derived from the July 31,2006 audited balance sheet

                                        3
<PAGE>


                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------

                         COMPETITIVE TECHNOLOGIES, INC.
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)


                                                    Three months ended
                                                         April 30
                                                 -------------------------
                                                     2007          2006
                                                 -----------   -----------


REVENUES
Retained Royalties                              $   664,308   $ 1,043,112
Investment income                                   121,237       155,490
Other income                                        107,041        -
                                                 -----------   -----------
                                                    892,586     1,198,602
                                                 -----------   -----------

EXPENSES
Personnel and other direct expenses
     relating to revenues                         1,990,183     1,353,549
General and administrative expenses                 819,300       623,875
Patent enforcement expenses, net
     of reimbursements                              124,957       275,218
                                                 -----------   -----------
                                                  2,934,440     2,252,642
                                                 -----------   -----------

Loss before income taxes                         (2,041,854)   (1,054,040)
Provision for income taxes                            -             -
                                                 -----------   -----------

NET LOSS                                        $(2,041,854)  $(1,054,040)
                                                 ===========   ===========


Basic and diluted net loss per common share     $     (0.25)  $     (0.14)
                                                 ===========   ===========


Basic and diluted weighted average
     number of common shares outstanding          8,047,899     7,710,134

                             See accompanying notes

                                        4
<PAGE>


                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------

                         COMPETITIVE TECHNOLOGIES, INC.
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)


                                                     Nine months ended
                                                          April 30
                                                 -------------------------
                                                     2007          2006
                                                 -----------   -----------
REVENUES
Retained Royalties                              $ 2,138,721   $ 3,433,181
Investment income                                   445,992       390,984
Other income                                        107,041        12,000
                                                 -----------   -----------
                                                  2,691,754     3,836,165
                                                 -----------   -----------

EXPENSES
Personnel and other direct expenses
     relating to revenues                         4,465,016     3,347,758
General and administrative expenses               4,432,523     2,154,874
Patent enforcement expenses, net
     of reimbursements                              521,062       373,812
                                                 -----------   -----------
                                                  9,418,601     5,876,444
                                                 -----------   -----------

Loss before income taxes                         (6,726,847)   (2,040,279)
Benefit for income taxes                              -            (12,081)
                                                 -----------   -----------

NET LOSS                                        $(6,726,847) $ (2,028,198)
                                                 ===========   ===========


Basic and diluted net loss per common share     $     (0.84)  $     (0.27)
                                                 ===========   ===========


Basic and diluted weighted average
     number of common shares outstanding          8,017,901     7,565,254

                             See accompanying notes


                                        5
<PAGE>

                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------

                         COMPETITIVE TECHNOLOGIES, INC.
       Condensed Consolidated Statement of Comprehensive Loss and Changes in
                             Shareholders' Interest
                    For the nine months ended April 30, 2007
                                   (Unaudited)


<TABLE>
<CAPTION>


<S>                         <C>    <C>       <C>        <C>           <C>           <C>             <C>             <C>
                            Preferred Stock  Common Stock                                           Accumulated
                            Shares           Shares                   Capital in                    Other           Total
                            Outst-           Outst-                   Excess of     Accumulated     Comprehensive   Shareholders'
                            anding Amount    anding     Amount        Par Value     Deficit         Income (Loss)   Interest
                            -----  --------  ---------  ------------  ------------  --------------  --------------  -------------
Balances at July 31, 2006   2,427  $ 60,675  7,956,534  $    79,565   $ 34,030,075  $ (19,421,398)  $    (294,717)  $ 14,454,200
Comprehensive loss:

Net loss                        -         -          -            -              -     (6,726,847)              -     (6,726,847)

Unrealized increase
in market value
of securities                   -         -          -            -              -              -       1,091,432      1,091,432

Foreign currency
Translation adjustments
on securities                   -         -          -            -              -              -         109,506        109,506
                            -----  --------  ---------  ------------  ------------  --------------  --------------  -------------
Comprehensive loss                                                                      (6,726,847)     1,200,938     (5,525,909)

Compensation expense
From stock option grants        -         -          -            -        845,417              -               -        845,417

Exercise of common
stock options                                   35,500          355         78,070                                        78,425

Stock issued under
401(k) Plan                     -         -     52,846          528        124,452              -               -        124,980

Stock issued for
services to be provided         -         -     50,000          500        124,500              -               -        125,000

Stock issued to Directors                       12,500          125         29,438                                        29,563
                            -----  --------  ---------  ------------  ------------  --------------  --------------  -------------
Balances at April 30, 2007  2,427  $ 60,675  8,107,380  $    81,073   $ 35,231,952  $ (26,148,245)  $     906,221   $ 10,131,676
                            =====  ========  =========  ============  ============  ==============  ==============  =============
</TABLE>

                             See accompanying notes

                                        6
<PAGE>

                   PART I.  FINANCIAL INFORMATION (Continued)
                   ------------------------------------------

                         COMPETITIVE TECHNOLOGIES, INC.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)



                                                     Nine months ended
                                                          April 30
                                                 -------------------------
                                                     2007          2006
                                                 -----------   -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                       $ (6,726,847) $ (2,028,198)
 Noncash and other expenses
  Included in net loss:
   Depreciation and amortization                     68,155         33,583
   Share-based compensation - stock options         845,417        337,417
   Stock compensation accrued                       104,562        131,250
 (Increase) decrease in assets:
  Receivables                                     1,872,416      (182,093)
  Prepaid expenses and other current assets         138,290      (146,408)
 Increase (decrease) in liabilities:
  Accounts payable, accrued expenses
   and other liabilities, and deferred rent         922,502       270,764
                                                 -----------   -----------


Net cash used in operating activities            (2,775,505)   (1,583,685)
                                                 -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property and equipment           (223,757)      (49,218)
Investment in non-public companies                 (750,000)
                                                 -----------   -----------
Net cash used in investing activities              (973,757)      (49,218)
                                                 -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from exercises of stock options        78,425        16,265
     Proceeds from sales of common stock               -        1,797,442
                                                 -----------   -----------
Net cash provided by financing activities            78,425     1,813,707
                                                 -----------   -----------

Net (decrease) increase in cash and
 cash equivalents                                (3,670,837)      180,804
Cash and cash equivalents at beginning
 of period                                       12,909,311    14,279,547
                                                 -----------   -----------

Cash and cash equivalents at end of period       9,238,474     4,460,351
                                                 ===========   ===========

Supplement disclosure of non-cash transactions:

On August 31, 2006, the Company contributed 52,846 shares of common stock valued
at  $124,980  to  the 401(k) Plan. On January 3, 2007, the Company issued 12,500
shares  of  common  stock  valued  at  $29,563 as compensation to directors. The
Company  issued  50,000  shares  of  common stock on February 2, 2007, valued at
$125,000  as  a  retainer  for  future  services  to  be  provided.

                             See accompanying notes

                                        7
<PAGE>


                   PART I.  FINANCIAL INFORMATION (Continued)

                         COMPETITIVE TECHNOLOGIES, INC.

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

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

     The  interim  condensed consolidated financial information presented in the
accompanying  condensed  consolidated  financial  statements and notes hereto is
unaudited.

     Competitive  Technologies,  Inc. ("CTT"), and its wholly owned and majority
owned  subsidiaries  (collectively, "we" or "us"), provide patent and technology
licensing  and  commercialization  services  throughout  the  world  (with
concentrations  in  the U.S.A. and Asia), with respect to a broad range of life,
electronic,  physical,  and  nano  science  technologies  originally invented by
various  universities,  corporations and individuals. We are compensated for our
services primarily by sharing in the license and royalty fees generated from the
successful  licensing  of  our clients' technologies. The condensed consolidated
financial  statements  include  the  accounts  of  CTT  and  its  subsidiaries.
Inter-company  accounts  and transactions have been eliminated in consolidation.
Certain  prior  year  amounts  have  been reclassified to conform to the current
year's  presentation.

     We  believe  we  have  made all adjustments, primarily normal and recurring
adjustments, which are necessary to present the unaudited condensed consolidated
financial  statements  fairly in conformity with accounting principles generally
accepted  in  the  United  States of America. The results for the three and nine
months  ended April 30, 2007, are not necessarily indicative of the results that
can  be  expected  for  the  full  fiscal  year  ending  July  31,  2007.

     The interim unaudited condensed consolidated financial statements and notes
thereto,  as  well  as  the accompanying Management's Discussion and Analysis of
Financial  Condition  and  Results  of Operations, should be read in conjunction
with  our  Annual Report on Form 10-K for the year ended July 31, 2006, filed on
October  30,  2006.

2.     Net Loss Per Common Share
       -------------------------

     For the three and nine months ended April 30, 2007, 1,116,415 and 1,041,696
shares, respectively, of outstanding common stock options were excluded from the
computation  of  diluted net loss per share because they were anti-dilutive. For
the  three  and  nine  months  ended April 30, 2006, 982,585 and 898,024 shares,
respectively,  of  outstanding  common  stock  options  were  excluded  from the
computation  of  diluted  net  loss  per  share because they were anti-dilutive.


                                        8
<PAGE>

3.     Comprehensive Loss and Accumulated Other Comprehensive Income (Loss)
       --------------------------------------------------------------------

Comprehensive loss consists of the following:


                              Three months ended          Nine months ended
                                   April 30                    April 30
                          --------------------------  --------------------------
                              2007          2006          2007          2006
                          ------------  ------------  ------------  ------------
Net loss                  $(2,041,854)  $(1,054,040)  $(6,726,847)  $(2,028,198)

Unrealized increase
  (decrease) in market
  value of securities         219,985       208,294     1,091,432       (99,444)
Foreign currency
  translation
  adjustments on
  securities                  105,408       (90,319)      109,506         6,906
Unrealized gain
  from reversal of
  sale restriction
  discount                          -             -             -       232,124
                          ------------  ------------  ------------  ------------
Comprehensive loss        $(1,716,461)  $  (936,065)  $(5,525,909)  $(1,888,612)
                          ============  ============  ============  ============

Accumulated other comprehensive income (loss) consists of the following:

                                                    APRIL 30,       July 31,
                                                      2007           2006
                                                  -----------     -----------
Accumulated net unrealized increase
  (decrease) in market value
  of securities                                  $   520,392     $  (571,040)
                                                  -----------     -----------
Accumulated net unrealized foreign
  currency adjustments on securities                 153,705          44,199
                                                  -----------     -----------
Accumulated unrealized gain from
  reversal of sale restriction
  discount                                           232,124         232,124
                                                  -----------     -----------
Accumulated other comprehensive income (loss)     $   906,221     $ (294,717)
                                                  ===========     ===========

4.     Receivables
       -----------

Receivables consist of the following:

                                                    APRIL 30,       July 31,
                                                      2007           2006
                                                  -----------     -----------
Royalties                                        $   965,861     $ 3,307,482
Receivables from insurance carrier                   839,774         354,832
Other                                                153,449         169,187
                                                  -----------     -----------
Receivables                                      $ 1,959,084     $ 3,831,501
                                                  ===========     ===========

5.     Equity Securities
       -----------------

     The Palatin and Clinuvel common stocks we hold are categorized as
available-for-sale and carried at fair value.  The Palatin shares are classified
in current assets, while the Clinuvel shares are classified in noncurrent
assets. The fair value of the equity securities and other investments consists
of the following:

                            April 30,     July 31,       Number
                              2007          2006        of shares       Type
                          ------------  ------------  ------------  ------------

Palatin (original
  basis $295,596)         $   343,400   $   327,420       170,000   Common Stock
                          ------------  ------------  ------------  ------------
Clinuvel (original
  basis $825,682)           1,684,100       499,141     1,913,032   Common Stock
                          ------------  ------------  ------------  ------------


                                        9
<PAGE>

     At  July 31, 2006, the Palatin shares included shares held on behalf of our
client.  As  of  January  31, 2007, we had reported the value of these shares as
royalty  income  to our client and had deducted allowable legal expenses against
such  royalty  payment, as allowed under our agreement. As a result, the Company
holds  these  shares  on  their  own  as  of  April  30,  2007.

6.     Investment in Non-public Companies
       ----------------------------------

     On April 18, 2007, the Company paid $750,000 to a Colombia-based non-public
company,  Agrofrut,  E.U.,  for a) 5% ownership of Agrofrut, E.U., including the
proprietary  technology  for  converting  biomass  waste  to  nutraceutical
ingredients;  b)  an option to exchange CTT's common stock for the remaining 95%
ownership  of  Agrofrut,  E.U.;  and  c)  an  exclusive  marketing agreement for
Agrofrut's  products  during  the  option  period.  The option is for a purchase
within  180 days, using a formula provided in the agreement. This investment has
been  recorded  at  cost  on  the  Consolidated  Balance  Sheet.  The Company is
currently  evaluating  the  proper allocation of the $750,000 payment to each of
the  elements  above.

     Agrofrut's  proprietary  technology  uses  the biomass waste of pineapples,
sugar cane, oranges, grapefruits and other agricultural products to produce high
quality,  low  cost  nutraceutical  ingredients.  Agrofrut's valuable extraction
technology  produces  nutraceutical  ingredients  such as bromelain and xylitol,
among  other  important  by-products,  including  ethanol  and other alternative
fuels.  The principal shareholder of Agrofrut is the former spouse of one of our
directors.

     The  Company  has  a  common  stock  investment  position in two additional
non-public  companies.  The  Company  owns  378,000  shares  of  common stock in
MelanoTan, and 3,129,509 shares of common stock in NTRU Cryptosystems, Inc. Both
companies  were  carried  at  zero  value at July 31, 2006 and April 30, 2007.

7.     Accrued Expenses and Other Liabilities
       --------------------------------------

Accrued expenses and other liabilities consist of the following:

                                                    APRIL 30,       July 31,
                                                      2007           2006
                                                  -----------     -----------
Accrued royalties payable                        $ 2,973,938     $ 2,460,950
Accrued compensation                                 433,874         533,431
Accrued professional fees                            159,559         251,514
Accrued other                                         98,839         131,973
                                                  -----------     -----------
Accrued expenses and other liabilities           $ 3,666,210     $ 3,377,868
                                                  ===========     ===========

8.     Shareholder's Equity
       --------------------

     On August 31, 2006, the Company issued 52,846 shares of common stock valued
at  $124,980  as  a  discretionary contribution to the 401(k) Plan that had been
accrued  for  at  July  31,  2006.

     During  the second quarter of fiscal 2007, the Company received $19,500 for
the  issuance  of  10,000  shares  of  common stock at $1.95 per share under our
employee stock option plan. During the third quarter of fiscal 2007, the Company
received $58,925 for the issuance of 25,500 shares of common stock at a weighted
average  price  of  $2.31  per  share  under  our  employee  stock  option plan.


                                            10
<PAGE>

     On  January 3, 2007, the Company issued 12,500 shares of common stock under
our Directors' Stock Participation Plan. These shares were valued at $29,563. An
amount  of  $75,000  was  accrued as of December 31, 2006 for payment under this
plan  and  the  excess  balance  has  been  reversed.

     On  February 2, 2007, the Company issued 50,000 shares of common stock as a
retainer  for  future  services  from the Company's outside legal counsel. These
shares  were  valued  at  $125,000.

9.     Stock Options
       -------------

     The Company accounts for its stock-based employee compensation arrangements
under  SFAS  No.  123  (revised  2004), "Share Based Payment" ("SFAS No. 123R"),
which  requires companies to recognize the cost of employee services received in
exchange for awards of equity instruments, based on the grant date fair value of
those  awards,  in  the  financial  statements.

     During  the  first  quarter  of  fiscal  2007,  the  Company granted to its
employees  options  to  purchase  an aggregate of 150,000 shares of common stock
under  the  1997 Employees' Stock Option Plan at an exercise price of $2.33. The
fair  value  of  these options was $238,350, which would have been recognized as
non-cash  compensation  expense  over  the  next  four years. Due to a change of
control  on  February  2, 2007, as defined by the Plan, all of the then unvested
shares  outstanding  became  vested.

     During  the  quarter  ended  January  31,  2007, the Company granted to its
directors  options  to  purchase  an  aggregate of 10,000 shares of common stock
under  the  Directors'  Option Plan at an exercise price of $2.37 per share that
vest  immediately.  The  fair  value  of  these  options  was $15,856, which was
recorded  as non-cash compensation expense during the three months ended January
31,  2007.

     During  the  third quarter of fiscal 2007, the Company granted to its Chief
Executive  Officer  options to purchase an aggregate of 400,000 shares of common
stock under the 1997 Employees' Stock Option Plan at an exercise price of $2.52.
The  fair value of these options was $662,800, of which $195,484 was recorded as
non-cash  compensation expense during the three months ended April 30, 2007. The
remaining  balance  of  $467,316  will  be  recognized  as non-cash compensation
expense  over  the  next  thirty-three  months.

     On  February  2,  2007,  in  accordance  with  the  provisions  of the 1997
Employees'  Stock Option Plan, as a result of a change in control, as defined by
the  Plan,  all  of  the  then  unvested  shares outstanding became vested. As a
result,  the  Company recorded $466,995 in non-cash compensation cost during the
third  quarter  of  fiscal  2007.

     The  fair  value  of the Black-Scholes options-pricing model was calculated
with  the  following  weighted average assumptions used for the grant: risk-free
interest  rates  from  4.66%  to  4.82%;  expected  life  five  years;  expected
volatility  from  77.268%  to  81.97%,  and expected dividends of zero. The fair
value  generated  by the Black-Scholes model may not be indicative of the future
benefit,  if  any,  that  may  be  received  by  the  option  holder.

     For  the three and nine months ended April 30, 2007, the Company recognized
approximately  $0  and  $167,000, respectively, of non-cash compensation expense
for  the  fair  value  of  options  granted  to employees in prior years for the
adoption  of  SFAS  123R.  This  does  not include the amount recognized for the
accelerated  vesting  of stock options due to the change in control provision of
the  Plan.

10.     Contingencies
        -------------

     Carolina  Liquid  Chemistries  Corporation,  et  al. On August 29, 2005, we
filed  a  complaint  against  Carolina Liquid Chemistries Corporation ("Carolina
Liquid"),  in  the  United  States  District Court for the District of Colorado,
alleging  patent  infringement  of  our patent covering homocysteine assays, and
seeking  monetary  damages,  punitive  damages, attorneys' fees, court costs and

                                       11
<PAGE>

other  remuneration  at  the  option of the court. Carolina Liquid was served on
September  1,  2005.  As we became aware of other alleged infringers, we amended
our  complaint  to  add  as  defendants  Catch,  Inc. ("Catch"), and the Diazyme
Laboratories  Division  of  General  Atomics  ("Diazyme"). On September 6, 2006,
Diazyme  filed  for  declaratory judgment in the Southern District of California
for  a  change in venue and a declaration of non-infringement and invalidity. On
September  12,  2006,  the  District Court in Colorado ruled that both Catch and
Diazyme be added as defendants to the Carolina Liquid case. On October 23, 2006,
Diazyme  requested  the  United States Patent and Trademark Office (the "USPTO")
re-evaluate the validity of our patent and this request was granted by the USPTO
on  December  14,  2006.  Re-examination  proceedings  are  now  underway.

     Palatin

     CTT initiated litigation on September 16, 2005, against Palatin as a result
of Palatin's breach of a Settlement Agreement between CTT and Palatin dated June
17,  2005.  The  settlement  resolved  a  prior dispute regarding CTT's rightful
portion  of  certain sublicense fees Palatin received from King Pharmaceuticals.
The  parties  have  filed  their  complaints,  counterclaims,  and  answers, and
discovery  is  currently  underway.

     CTT  commenced  an  arbitration  proceeding on June 5, 2006, as a result of
Palatin's  breach of a License Agreement between CTT and Palatin dated March 31,
1998.  The  three  member  panel  of arbitrators has been selected, and a formal
hearing should be held about the beginning of November, 2007. However, the Panel
has  agreed to allow both sides to file dispositive motions to summarily resolve
certain  claims.  A  decision on these summary claims should be announced by the
Panel  in  July  or  early  August,  2007.

     Employment  matters  -  former  President  and  Chief  Executive  Officer

     As  a  result of a proxy contest conducted for the election of Directors at
the annual meeting of shareholders on January 16, 2007, adjourned until February
2,  2007,  a  complete  new  Board  of  Directors was elected and installed. The
disputed matters regarding CTT's former Board of Directors and John B. Nano have
now  been  settled  by  the  new  Board.  Mr.  Nano's suit was brought under the
Sarbanes-Oxley  law  and  requested  $5.1  million  plus damages against CTT. On
January  24,  2007,  the  parties  met with Judge Thomas P. Smith, United States
District  Court  of  Connecticut, who demanded that CTT or a reputable insurance
company post a bond of $2.5 million by the close of business January 26, 2007 to
serve  as  security. Mr. Nano agreed to reduce his settlement demand and the new
Board agreed to pay Mr. Nano $1 million and to pay his legal fees of $650,000 to
settle  the original $5.1 million suit. These amounts were accrued as of January
31,  2007.  The  $2.5 million bond was distributed on February 7, 2007, with Mr.
Nano  receiving  $1  million,  his  legal  advisors  receiving $650,000, and the
balance  of  $850,000  returned  to  CTT's  treasury.

     Employment  matters  -  other

     On  September  29,  2006,  CTT  received  a  demand letter from an attorney
representing  two of its officers, Aris D. Despo and Paul A. Levitsky, demanding
approximately  $300,000  in total for commission payments alleged to be due them
for fiscal year 2006 under CTT's prior annual incentive compensation plan, which
was  terminated in November 2005. These individuals received commission payments
in  fiscal  year  2005 related to new homocysteine licenses granted in 2005, and
claimed  that  the  company  was  obligated,  and  they  were promised, that the
payments  would  continue  for  a period of two (2) years thereafter. The letter
also  claimed  that these individuals anticipated that they would be entitled to
at  least an aggregate additional $350,000 in commission payments in fiscal year
2007.  CTT put these individuals on administrative leave with pay on October 30,
2006.

     During  the  quarter  ended  January 31, 2007, the Company took a charge of
approximately  $200,000  in  severance costs in full and final settlement of any
claims  against  the  Company,  pursuant  to the terms of a separation agreement
effective  January  6, 2007, with Mr. Despo (the "Agreement 1"). Pursuant to the
Agreement,  Mr.  Despo  also  agreed  to  resign  his employment, and executed a
release  in  favor  of the Company. The Agreement 1 included bi-weekly severance
payments  to  be  paid  over  calendar  2007.


                                       12
<PAGE>

     During  the  quarter  ended  January 31, 2007, the Company took a charge of
approximately  $150,000  in  severance costs in full and final settlement of any
claims  against  the  Company,  pursuant  to the terms of a separation agreement
effective  January  17, 2007, with Mr. Levitsky (the "Agreement 2"). Pursuant to
the Agreement, Mr. Levitsky also agreed to resign his employment, and executed a
release  in  favor  of  the Company. The Agreement 2 included an initial $50,000
payment  with the balance to be paid bi-weekly over a six-month period. Both Mr.
Despo  and  Mr. Levitsky were rehired to their previous CTT positions by the new
CTT  management effective February 14, 2007; and their corresponding outstanding
severance  payments  were  paid  in  a  lump  sum  at  that  time.

     Securities  and  Exchange  Commission

     On August 11, 2004, the Securities and Exchange Commission ("SEC"), filed a
civil  suit in the United States District Court for the District of Connecticut,
naming  Competitive  Technologies,  Inc., Frank R. McPike, Jr., former President
and  CEO  in  2001, and six individual brokers, alleging that from at least July
1998  to  June  2001, the defendants were involved in a scheme to manipulate the
price  of our stock. The case relates to our 1998 stock repurchase program under
which  we  repurchased  shares  of our common stock from time to time during the
period  from October 28, 1998 to March 22, 2001. CTT was named as a defendant in
the  suit  due to the alleged conduct of Frank R. McPike, Jr., former CEO, whose
conduct  in connection with the stock repurchase program was imputed to CTT as a
matter of law. Relating to CTT, the SEC seeks a permanent injunction prohibiting
us  from  further violations of the Securities Exchange Act of 1934, and a civil
penalty  pursuant  to  Section  21(d)(3)  of the Securities Exchange Act of 1934
(this  section provides for maximum penalties of $550,000 for a corporate entity
and  $110,000 per individual). On September 24, 2004, we responded to this civil
suit, and filed a motion to dismiss the suit. On October 15, 2004, the SEC filed
a  motion  opposing our motion to dismiss the suit. On July 21, 2005, our motion
to  dismiss  the  suit was denied. On April 10, 2006, we filed a separate motion
for  summary judgment to dismiss the case, and on June 15, 2006, the SEC filed a
motion  opposing our motion for summary judgment. On November 6, 2006, the court
denied  our motion for summary judgment. On November 17, 2006, we filed a motion
for  reconsideration  requesting  the  court  to re-examine the dismissal of our
motion  for summary judgment. Our appeal of the denial of our motion for summary
judgment  in  our favor was not successful. We expect that the case will go to a
jury trial starting sometime in the latter half of calendar 2007. Further action
in  this  case  is  pending.

     We  previously  filed  suit  against our directors' and officers' insurance
carrier  to obtain reimbursement of our costs to defend us and our directors and
officers.  As  part  of  an  October  2004  settlement,  our  insurance  carrier
acknowledged  that  the deductible under our insurance policy had been satisfied
relating  to  the  SEC's civil suit. As a result, defense costs incurred in 2005
and  thereafter  have  been  covered  by  our insurance carrier, and we have not
incurred  any  significant  costs related to this matter since 2004. However, we
cannot  be  certain  that  all  future  costs,  including  potential  fines  and
penalties,  will  be  covered  by  our  insurance  carrier.

     Laboratory  Corporation  of  America  Holdings  d/b/a  LabCorp  ("LabCorp")

     This  case  ended  on  September 21, 2006. Please see our form 10-Q for the
period  ending  October  31,  2006  for  details  on  the  ultimate  disposition

     Fujitsu

     In  December  2000,  (coincident  with  filing  a complaint with the United
States  International  Trade  Commission ("ITC") that was withdrawn in 2001) the
University  of  Illinois  and  CTT  filed  a  complaint against Fujitsu Limited,
Fujitsu General Limited, Fujitsu General America, Fujitsu Microelectronics, Inc.
and  Fujitsu  Hitachi  Plasma  Display  Ltd.  (Fujitsu  et  al.,  collectively,
"Fujitsu")  in  the  United  States  District  Court for the Central District of
Illinois,  seeking  damages  for  past  infringements  and an injunction against
future  sales of plasma display panels alleged to infringe two U.S. patents held
by  our  client,  the  University  of  Illinois.  The  two

                                       13
<PAGE>

patents  cover energy recovery technology for flat plasma display panels. In May
2002,  the  Central  District  Court  of  Illinois  granted  Fujitsu's motion to
transfer  this  case  to  the  Northern  District  of  California.

     In  September  2001,  Fujitsu filed counterclaims against the University of
Illinois and us in the United States District Court for the District of Delaware
(which  subsequently were dismissed and reinstituted in the Northern District of
California).  The  counterclaims  alleged,  among  other  things,  that  we  had
misappropriated  confidential information and trade secrets supplied by Fujitsu,
and  committed  unfair  competition  in  litigating  the  ITC  action.

     Effective July 23, 2002, the University of Illinois agreed to take the lead
in  this  litigation  and  assume  the  cost  of  new  lead counsel. Before this
agreement,  we  bore the entire cost of lead counsel in this litigation. In late
2002,  we  were  dismissed as co-plaintiff from this litigation, but we retained
our  economic  interest  in  any  potential  favorable  outcome.

     On  July  1,  2004, the court granted summary judgment in favor of Fujitsu.
The  University  of  Illinois  appealed the decision. On September 20, 2004, the
judge  entered  a  stipulated  order  staying  certain  issues,  including  the
counterclaims,  pending  resolution  of  the  University's  appeal.

     On  May  1, 2006, the Court of Appeals for the Federal Circuit (the "CAFC")
heard  the  University  of Illinois' appeal of the summary judgment. On June 15,
2006,  the CAFC ruled in favor of Fujitsu, effectively ending the case. The only
claims  in this matter still outstanding are Fujitsu's counterclaims against the
University of Illinois and CTT. In January 2007, each of the parties to the case
agreed to a stay of the matter pending settlement discussions. Those discussions
are  ongoing.

     Other

     Our  complaint against Dr. Arnold H. Pross was dropped. Please see our Form
10-Q  for  the  period  ending  January  31,  2007  for  details on the ultimate
disposition.

     We  also may be a party to other legal actions and proceedings for which we
cannot  predict  the  final  outcomes. Since we are unable to estimate the legal
expenses  or  the  loss  we may incur, or the possible damages we may recover in
these  actions,  if  any,  we have not accrued any potential gain or loss in our
financial  statements.  We  record  expenses in connection with these actions as
they  are  incurred.

     We  believe  that  we  carry  adequate  liability insurance, directors' and
officers'  insurance,  casualty insurance (for owned or leased tangible assets),
and  other  insurance  as needed to cover us against potential and actual claims
and  lawsuits  that  occur  in  the ordinary course of our business. However, an
unfavorable  resolution  of  any  or  all  matters,  and/or  our  incurrence  of
significant  legal  fees  and  other  costs  to defend or prosecute any of these
actions and proceedings may, depending on the amount and timing, have a material
adverse effect on our consolidated financial position, results of operations and
cash  flows  in  a  particular  period.

11.     Subsequent Events
        -----------------

     In  April  2007,  the  Company  sold at auction patents for $1.0 million on
behalf  of  itself  and  its  client,  Lehigh University. This sale has not been
reflected  in  the  accompanying  financial  statements  because we are awaiting
receipt  of  the  appropriate  documentation.


                                       14
<PAGE>
ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS

     Forward-Looking Statements
     --------------------------

     Statements  about  our future expectations are "forward-looking statements"
within the meaning of applicable Federal Securities Laws, and are not guarantees
of  future  performance.  When  and  if used in this Form 10-Q, the words "may,"
"will,"  "should,"  "anticipate,"  "believe,"  "intend,"  "plan,"
"expect,""estimate,"  "approximate,"  and  similar  expressions  are intended to
identify  such  forward-looking  statements.  These statements involve risks and
uncertainties  inherent  in  our  business, including those set forth in Item 1A
under  the caption "Risk Factors," in our most recent Annual Report on Form 10-K
for  the  year  ended  July  31,  2006,  filed  with the Securities and Exchange
Commission  ("SEC") on October 30, 2006, and other filings with the SEC, and are
subject  to  change at any time. Our actual results could differ materially from
these  forward-looking statements. We undertake no obligation to update publicly
any  forward-looking  statement.

     Overview
     --------

     We  are  a  full  service  technology  transfer  and licensing provider. We
provide  technology  transfer  and  licensing services focused on the technology
needs  of  our  customers,  matching those requirements with commercially viable
technology  solutions, bridging the gap between market demand and innovation. We
develop  relationships  with  universities,  companies,  inventors and patent or
intellectual  property  holders  to  obtain  the  rights  or  a license to their
intellectual  property,  principally  patents  and inventions (collectively, the
"technology" or "technologies"), and they become our "clients," for whom we find
markets  to  sell  or  further  develop  their  technology.  We  also  develop
relationships  with  those  who  have  a  need or use for technologies, and they
become  our  customers, usually through a license or sublicense. We identify and
commercialize  innovative  technologies  in  life  and  physical  sciences,
electronics,  and  nano  science  developed  by  universities,  companies  and
inventors. Our goal is to maximize the value of intellectual property assets for
the  benefit  of  our  clients,  customers  and  shareholders.

     We  earn  revenues  primarily  from  licensing  our  clients'  and  our own
technologies  to our customers (licensees). Our customers pay us royalties based
on  their  usage of the technology, and we share the royalties with our clients.
In  the  normal  course  of business, revenues fluctuate from quarter to quarter
(and year to year), due to normal fluctuations in revenues of our customers, the
receipt  of differing magnitudes of revenues from upfront license fees (received
at  the  time  certain  licenses are granted), the granting of new licenses, the
expiration  of existing licenses, and/or the expiration or economic obsolescence
of  patents  underlying  licenses. As explained below, we had a concentration of
revenues  from  a  single  source.

     On April 18, 2007, the Company paid $750,000 to a Colombia-based non-public
company,  Agrofrut,  E.U.,  for a) 5% ownership of Agrofrut, E.U., including the
proprietary  technology  for  converting  biomass  waste  to  nutraceutical
ingredients;  b)  an option to exchange CTT's common stock for the remaining 95%
ownership  of  Agrofrut,  E.U.;  and  c)  an  exclusive  marketing agreement for
Agrofrut's  products  during  the  option  period.  The option is for a purchase
within  180 days, using a formula provided in the agreement. This investment has
been  recorded  at  cost  on  the  Consolidated  Balance  Sheet.  The Company is
currently  evaluating  the  proper allocation of the $750,000 payment to each of
the  elements  above.

     Agrofrut's  proprietary  technology  uses  the biomass waste of pineapples,
sugar cane, oranges, grapefruits and other agricultural products to produce high
quality,  loss  cost  nutraceutical  ingredients. Agrofrut's valuable extraction
technology  produces  nutraceutical  ingredients  such  as bromelain and xylitol
among  other  important  by-products,  including  ethanol  and other alternative
fuels.  We  will  use  our Business Development function, including our customer
contacts  and  knowledge  of  distribution  channels,  to market Agrofrut's many
products  to  potential  end users. CTT and Agrofrut will share revenue from the
sale  of  these  products  on  a  40/60%  basis  respectively. Our investment in
Agrofrut  will  be  utilized  by  Agrofrut  to

                                       15
<PAGE>

accelerate  the expansion of Agrofrut's extraction capacity. We believe that the
nutraceutical  market  is  expanding  and  that  we can build a strong recurring
revenue  stream  based  on  these  products.

     The  following discussion and analysis provides information that we believe
is  relevant  to  an assessment and understanding of our financial condition and
results  of  operations.  This  discussion  and  analysis  should  be  read  in
conjunction  with  our Condensed Consolidated Financial Statements and the Notes
thereto.

     Reliance on one revenue source
     ------------------------------

     For  the  three  and  nine  months  ended April 30, 2007 and 2006, we had a
significant  concentration  of  revenues from our homocysteine assay technology.
The  patent  for this technology expires in early July 2007, and after that date
we will continue to receive revenues for any homocysteine assays conducted prior
to  the  expiration  date, but we will not receive revenues from this technology
for  sales made after that date. Revenues from our homocysteine assay technology
decreased  compared  to  last  year  due to upfront license fees received in the
prior  year that did not occur in the current year, and a decrease in the number
of  reported  tests  performed  by two of our licensees. We believe that we have
licenses  with  the  premier  distributors and laboratories in the United States
that  sell  and/or perform tests used to measure homocysteine levels. We perform
audits  of  our  licensees  to insure that we capture all available revenues. We
believe  that part of the decrease in the number of tests reported may be due to
suspected  infringers  who  are  selling  homocysteine  tests without a license.

     We filed a patent infringement complaint against three suspected infringers
but  we  believe progress in this case may be subject to delaying tactics by the
defendants,  as  well  as  the  normal extended period of time it takes for such
cases  to  work  their way through the court system. In addition, in response to
the patent enforcement action we filed, one of the defendants has requested that
the  United  States  Patent  and  Trademark Office (the "USPTO") re-evaluate the
validity  of our patent. While we do not expect an adverse finding by the USPTO,
such  actions  could  further  delay  the  ultimate  resolution of the case, and
negatively  impact our reported financial results through decreased revenues and
increased  legal costs. For further information see Note 9 in Notes to Condensed
Consolidated  Financial  Statements  in  Item  1.

     Presentation
     ------------

     We  rounded  all amounts in this Item 2 to the nearest thousand dollars, so
certain  amounts  may not total precisely. In addition, all periods discussed in
this  Item  2 relate to our fiscal year ending July 31 (first, second, third and
fourth  quarters  ending  October  31,  January  31,  April  30  and  July  31,
respectively).


RESULTS OF OPERATIONS - THREE MONTHS ENDED APRIL 30, 2007 ("THIRD QUARTER 2007")
VS. THREE MONTHS ENDED APRIL 30, 2006 ("THIRD QUARTER 2006")

     Summary of Results
     ------------------

     We  incurred  a  net loss for the third quarter 2007 of $2,042,000 or $0.25
per  share,  compared  to  a  net loss of $1,054,000 or $0.14 per share, for the
third  quarter  2006,  an increased net loss of $988,000, or $0.11 per share. As
explained  in  detail  below,  the increase in the net loss is due to a $306,000
decrease  in  revenues,  offset  by  an  $682,000  increase  in  expenses.

     Revenues
     --------

     In  the  third  quarter  2007,  total  revenues  were $893,000, compared to
$1,199,000  for  the  third  quarter  2006,  a  decrease  of  $306,000,  or 26%.


                                       16
<PAGE>

     Retained  royalties  for  the  third  quarter 2007 were $664,000, which was
$379,000,  or 36% less than the $1,043,000 of retained royalties reported in the
third  quarter  2006.  The  following  compares  retained  royalty  revenues  by
technology  in  the  third  quarter  2007  with  the  third  quarter  2006.

                                For the three months ended April 30
                           ------------------------------------------------
                                                     Increase    % Increase
                             2007        2006       (Decrease)   (Decrease)
                           --------  ------------  ------------  ----------

Homocysteine assay          539,000      637,000       (98,000)       (15)%
All other technologies      125,000      406,000      (281,000)       (69)%
                           --------  ------------  ------------  ----------

TOTAL RETAINED ROYALTIES   $664,000  $ 1,043,000   $  (379,000)       (36)%
                           ========  ============  ============  ==========


     Royalty  revenues from our homocysteine technology decreased $98,000 in the
third  quarter  2007  compared  to the third quarter 2006, or 15% decrease.  The
decrease  is  due  principally  to  fewer  tests  performed by two of our larger
licensees.  In  addition,  as  explained  above, we believe that infringers have
negatively  impacted  the  amount  of  revenues we are receiving relating to our
homocysteine  technology.  The  decline  in other technologies was the result of
the reduction in royalty rate on an older non-patented technology as a result of
reaching  a  10-year  milestone.

     Approximately 81% of our retained royalties for the third quarter 2007 were
from  the  homocysteine assay technology. As explained above, the patent on this
technology expires in early July 2007, and we will not receive revenue from this
technology  for sales made after that date. We continue to seek revenue from new
technology  licenses  to  mitigate  the  concentration  of revenues, and replace
revenue  from  expiring  licenses.

     Investment  income  includes  dividends and interest earned on our invested
cash.  Investment  income  was  $121,000  in the third quarter 2007, which was a
decrease  of  $34,000,  or  22% over the $155,000 reported for the third quarter
2006. The decrease was due to lower invested balances for the current quarter as
compared  to  the  prior  year,  offset  by significantly higher rates of return
earned  on  the  invested  cash.

     Other  income  consists  of  sales  of product and revenue from a marketing
study  for  the  third  quarter  of  fiscal  2007.

     Expenses
     --------

                                   For the three months ended April 30
                           ---------------------------------------------------
                                                        Increase    % Increase
                                2007        2006       (Decrease)   (Decrease)
                           -----------  ------------  ------------  ----------
Personnel and other
  direct expenses
  relating to revenues    $ 1,990,000  $  1,354,000  $    637,000         47%
General and
  administrative expenses     819,000       624,000       195,000         31%
Patent enforcement
  expenses net
  of reimbursements           125,000       275,000      (150,000)       (55)%
                           -----------  ------------  ------------  ----------

    TOTAL EXPENSES        $ 2,934,000  $  2,253,000  $    682,000         30%
                           ===========  ============  ============  ==========

     Total expenses increased $682,000 in the third quarter 2007, compared to
the third quarter 2006.

     Personnel  and  other  direct expenses relating to revenues increased a net
$637,000  in  the  third  quarter  2007,  compared  to  the  third quarter 2006,
primarily  as  a result of compensation expense related to stock options and the
acceleration  of  vesting  on stock options that were outstanding on February 2,
2007,  due  to  the  change  in  control provisions of the 1997 Employees' Stock
Option  Plan  and  due  to  the  grant  of  400,000  options  to


                                       17
<PAGE>

purchase  common  stock granted during the third quarter of fiscal 2007 with 25%
of  such options vesting immediately and therefore requiring to be expensed. The
third  quarter  of  fiscal  2007  also includes an increase in recruiting costs,
primarily  related  to  the  search  for  a  new  Chief  Financial Officer.

     General  and  administrative expenses increased a net $195,000 in the third
quarter  2007,  compared  to  the  third  quarter  2006 as a result of increases
related  to  rent for the additional office space taken during the first quarter
of  fiscal  2007,  corporate  legal  and  investor  relations.

     Patent  enforcement  expenses,  net  of  reimbursements,  decreased  a  net
$150,000  in  the  third  quarter  2007, compared to the third quarter 2006. The
decrease resulted from decreased activity in the current year quarter related to
a  homocysteine  patent  infringement  lawsuit initiated at the beginning of the
prior  fiscal  year  (see  Note  9  in Notes to Condensed Consolidated Financial
Statements  in  Item  1).  The  level  of  patent  enforcement  expenses varies,
depending  on  the  stage  and  activity  relating  to  the  litigation.




RESULTS OF OPERATIONS - NINE MONTHS ENDED APRIL 30, 2007 ("NINE MONTHS OF 2007")
VS. NINE MONTHS ENDED APRIL 30, 2006 ("NINE MONTHS OF 2006")

     Summary of Results
     ------------------

     We  incurred  a net loss for the nine months of 2007 of $6,727,000 or $0.84
per share, compared to a net loss of $2,028,000 or $0.27 per share, for the nine
months  of  2006,  an  increased  net  loss  of $4699,000 or $0.57 per share. As
explained  in  detail  below,  the increase in the net loss is due to $1,144,000
decrease  in revenues, a $3,542,000 increase in operating expenses and a $12,000
loss  of  tax  benefit.

     Revenues
     --------

     In  the  nine  months  of 2007, total revenues were $2,692,000, compared to
$3,836,000  for  the  nine  months  of  2006,  a decrease of $1,144,000, or 30%.

     Retained royalties for the nine months of 2007 were $2,139,000, which was
$1,294,000, or 38% less than the $3,433,000 of retained royalties reported in
the nine months of 2006.  The following compares retained royalty revenues by
technology for the nine months of 2007 with the same period in 2006.


                                   For the nine months ended April 30
                           ---------------------------------------------------
                                                        Increase    % Increase
                                2007        2006       (Decrease)   (Decrease)
                           -----------  ------------  ------------  ----------
Homocysteine assay        $ 1,694,000  $  2,620,000  $   (926,000)       (35)%
All other technologies        445,000       813,000      (368,000)       (45)%
                           -----------  ------------  ------------  ----------
Total retained royalties  $ 2,139,000  $  3,433,000  $ (1,294,000)       (38)%
                           ===========  ============  ============  ==========

     Royalty revenues from our homocysteine technology decreased $926,000 in the
nine  months  of  2007 compared to the nine months of 2006, or 35% decrease. The
decrease  is  due  principally  to  fewer  tests  performed by two of our larger
licensees.  In  addition,  as  explained  above, we believe that infringers have
negatively  impacted  the  amount  of  revenues we are receiving relating to our
homocysteine technology. The decline in royalty revenues from other technologies
was  the  result  of  the  reduction  in  royalty  rate on an older non-patented
technology  as  a  result  of  reaching  a  10-year  milestone.

                                       18
<PAGE>

     Approximately  79%  of  our  retained royalties for the nine months of 2007
were  from  the homocysteine assay technology. As explained above, the patent on
this technology expires in early July 2007, and we will not receive revenue from
this technology for sales made after that date. We continue to seek revenue from
new  technology  licenses to mitigate this concentration of revenues and replace
revenues  from  expiring  licenses.

     Investment  income  includes  dividends and interest earned on our invested
cash.  Investment  income  was $446,000 in the nine months of 2007, which was an
increase  of  $55,000,  or 14% over the $391,000 reported for the nine months of
2006. The increase was due to significantly higher rates of return earned on the
invested  cash  in  the  current period compared to the same period of the prior
year.

     Other  income  consists  of  sales  of product and revenue from a marketing
study  for  the  third  quarter  of  fiscal  2007.

     Expenses
     --------


                                   For the nine months ended April 30
                           ---------------------------------------------------
                                                        Increase    % Increase
                                2007        2006       (Decrease)   (Decrease)
                           -----------  ------------  ------------  ----------
Personnel and other
  direct expenses
  relating to revenues    $ 4,465,000  $  3,348,000  $  1,117,000         33%
General and
  administrative expenses   4,433,000     2,155,000     2,278,000        106%
Patent enforcement
  expenses net
  of reimbursements           521,000       374,000       147,000         39%
                           -----------  ------------  ------------  ----------
    TOTAL EXPENSES        $ 9,419,000  $  5,877,000  $  3,542,000         60%
                           ===========  ============  ============  ==========

     Total  expenses  increased  $3,542,000  in  the  first nine months of 2007,
compared  to  the first nine months of 2006. A major part of the expenditures in
2007  was  from  costs  associated  with the prior Board and management's annual
meetings and proxy contest of about $1 million and amounts accrued to settle Mr.
Nano's  suit  of  $5.1 million for $1.0 million and related legal costs of $0.65
million,  as  well  as  an  increase  in  compensation  expense related to stock
options.

     Personnel  and  other  direct expenses relating to revenues increased a net
$1,117,000  in the nine months of 2007, compared to the nine months of 2006, due
to a combination of several factors. The increase in 2007 was due to $356,000 of
severance  costs  accrued for Aris D. Despo and Paul A. Levitsky (see Note 10 in
Notes to Condensed Consolidated Financial Statements in Item 1) and the addition
of six new staff members, as well as the additional compensation expense related
to the accelerated vesting of employee stock options and the third quarter stock
option grant, which increased compensation expense for stock options by $626,000
over  the  same  period  on  the  prior  year.

     General  and administrative expenses increased a net $2,278,000 in the nine
months  of  2007,  compared  to  the  nine  months  of  2006, principally due to
corporate  litigation,  annual meetings and proxy contest costs mentioned above.

     Patent  enforcement  expenses,  net  of  reimbursements,  increased  a  net
$147,000  in  the  nine months of 2007, compared to the nine months of 2006. The
increase  resulted from activity in the current year related to homocysteine and
Fujitsu  patent  infringement  lawsuits  (see  Note 10  in  Notes  to  Condensed
Consolidated  Financial  Statements  in  Item  1).

                                       19
<PAGE>

     Benefit for income taxes
     ------------------------

     We  recorded a net benefit for income taxes of approximately $12,000 in the
nine  months  of  2006  from  tax  refunds.

     Financial Condition and Liquidity
     ---------------------------------

     Our  liquidity  requirements  arise  principally  from  our working capital
needs,  including  funds needed to find, obtain and license new technologies, to
protect  and  enforce  our  intellectual  property  rights, if necessary, and to
execute  our  strategic  plan  to  grow  our  business.  We  fund  our liquidity
requirements  principally  from  our  cash  on  hand,  and  also cash flows from
operations,  if any. At April 30, 2007, we had no credit facility or outstanding
debt.

     Cash  and  cash  equivalents  consist of demand deposits and highly liquid,
interest  earning  investments with maturities when purchased of three months or
less,  including  overnight  bank deposits and money market funds. We carry cash
equivalents  at  cost,  which  approximates  fair  value.

     At  April  30, 2007, cash and cash equivalents were $9,238,000, compared to
$12,909,000  at July 31, 2006. Cash used in operating activities during the nine
months  of  2007  was $2,776,000, compared to cash used of $1,584,000 during the
nine  months  of  2006.  The  difference in cash used in the nine months of 2007
compared  to the nine months of 2006 was due principally to timing of receipt of
revenues, collections of receivables and payments of accounts payable.

     Cash  used  in  investing  activities  during  the  nine months of 2007 was
$974,000,  compared  to  $49,000 during the nine months of 2006. The increase in
the  current  year  primarily  related  to the investment in non-public Agrofrut
E.U.,  described  in  footnote  6,  Part  I  of  this filing. The balance of the
increase  relates to the purchase of furniture and fixtures for CTT's new office
space,  which  the  prior  management  moved  into  in  August  2006.

     Cash provided by financing activities during the nine months of fiscal 2006
of  $1,814,000,  principally  due to sales of common stock pursuant to an equity
financing  arrangement  that terminated in 2006. During the nine months of 2007,
options  exercised  generated  $78,000  in  cash.

     Changes  in  royalties  receivable  and payable reflect our normal cycle of
royalty collections and payments, and fluctuate depending on income received and
the date on which royalty receipts and payments are due to be paid out under our
agreements  with  clients  and  customers.

     FUNDING AND CAPITAL REQUIREMENTS

     Capital requirements
     --------------------

     Our  strategic  plan  is  to  increase  annual  recurring revenues, achieve
profitability  and  increase shareholder value. To accomplish our goals, we have
invested  in  Agrofrut  E.U.  (see  above)  and  increased  our global marketing
capabilities,  searching  for  new  sources  of  technologies,  licensing  those
technologies,  and  establishing  strategic  relationships.

     In  August  2006 the prior management moved to a new office. The new office
space  has a seven-year lease agreement through August 2013. Since the new space
is  larger  than  the  prior  space,  our annual rent expense will be $100,000 -
$125,000  more  than  we  incurred  in  2006.

     General
     -------

     The  amounts and timing of our future cash requirements will depend on many
factors,  including  the  results  of  our operations and marketing efforts, the
results  and  costs  of  legal  proceedings,  and  our  equity

                                       20
<PAGE>

financing.  To  achieve  and sustain profitability, we must license technologies
with  sufficient  current and long-term revenue streams, and continually add new
licenses.  However,  obtaining  rights  to  new technologies, granting rights to
licensees,  enforcing  intellectual  property  rights,  and  collecting  royalty
revenues  are  subject  to  many  factors,  some of which are beyond our control
and/or  that  we cannot currently anticipate. Although there can be no assurance
that  we  will be successful in our efforts, we believe our cash on hand will be
sufficient  to  meet our current and anticipated operating cash requirements for
at  least  the  next  year.

     Contingencies

     We are a party to several legal actions and proceedings, both as a
plaintiff and as a defendant, for which we cannot predict the final outcomes.
These matters have been detailed herein and in prior filings with the SEC.
Depending upon the amount and timing, an unfavorable resolution of any or all
matters where we are a defendant, and/or our incurrence of significant legal
fees and other costs to defend or prosecute any of these actions and
proceedings, may have a material adverse effect on our consolidated financial
position, results of operations and cash flows in a particular period.

     Other matters

     We believe we carry adequate liability insurance, directors' and officers'
insurance, casualty insurance (for owned or leased tangible assets), and other
insurance to cover us against potential claims that occur in the normal course
of our business.

     Critical Accounting Estimates

     There have been no significant changes in our accounting estimates
described under the caption "Critical Accounting Estimates," included in Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," in our Annual Report on Form 10-K for the year ended July 31, 2006.


                                       21
<PAGE>

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
            ----------------------------------------------------------

     We do not have significant market risk to the valuation of our assets other
than risks related to our equity security holdings of Palatin Technologies, Inc.
("Palatin") and Clinuvel Pharmaceuticals Limited ("Clinuvel").  The value of the
Palatin stock is included in current assets in equity securities, while the
value of the Clinuvel shares is included in noncurrent assets in equity
securities, since our current intention is to hold the Clinuvel shares as a
long-term investment.  The value of both assets is subject to market
fluctuations in share price of the stock as well as foreign currency
fluctuations of the Australian Stock Exchange-traded Clinuvel shares.  We
currently consider unrealized fluctuations in the fair value of both the Palatin
and Clinuvel shares to be temporary, and therefore have recorded changes in the
fair values as part of other comprehensive loss, which is a component of equity.
During the nine months ended April 30, 2007, the following changes in fair value
occurred with respect to the Palatin and Clinuvel shares:

<TABLE>
<CAPTION>


<S>                            <C>       <C>         <C>
                                  For the nine months ended
                                       April 30, 2007
                               --------------------------------

                               Palatin   Clinuvel    Total
                               --------  ----------  ----------
Unrealized increase in market
  value of securities          $ 15,980  $1,075,452  $1,091,432
Foreign currency translation
  adjustments on securities           -     109,506     109,506
                               --------  ----------  ----------

Other comprehensive income     $ 15,980  $1,184,958  $1,200,938
                               ========  ==========  ==========
</TABLE>


                                       22
<PAGE>
ITEM 4.     CONTROLS AND PROCEDURES
            -----------------------

     (a)     Evaluation of Disclosure Controls and Procedures
             ------------------------------------------------

     Our  management,  including  our  Chairman  of  the Board, President, Chief
Executive  Officer  and Interim Chief Financial Officer (positions all currently
held  by  Mr.  Nano), evaluated the effectiveness of the design and operation of
our  disclosure  controls  and procedures (as defined in the Securities Exchange
Act  of  1934  (the "Exchange Act"), Rules 13a-15(e) and 15d-15(e)), as of April
30,  2007.  Our  disclosure  controls and procedures are designed to ensure that
information  required  to be disclosed by us in reports filed under the Exchange
Act  is  recorded, processed, summarized, and reported as specified in the SEC's
rules  and  forms.  Based  on  this  evaluation,  our Chairman, President, Chief
Executive  Officer  and  Interim  Chief  Financial  Officer  concluded  that our
disclosure  controls  and  procedures  were  effective  as  of  April  30, 2007.

     (b)     Changes in Internal Control over Financial Reporting
             ----------------------------------------------------

     There  were  no  changes  in  our internal control over financial reporting
during  the  quarter ended April 30, 2007, that have materially affected, or are
reasonably  likely  to  materially  affect,  our internal control over financial
reporting.



                                       23
<PAGE>

                           PART II - OTHER INFORMATION
                           ---------------------------

Item 1.     Legal Proceedings

     See  Note 10 to the accompanying unaudited condensed consolidated financial
statements  in  Part  I  of  this  Quarterly  Report  on  Form  10-Q.

Item 1A.     Risk Factors

     There  have  been  no  material  changes  with  respect to the risk factors
disclosed  in  our Annual Report on Form 10-K for the fiscal year ended July 31,
2006.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

     None

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

     None

Item 5.     Changes in Registrant's Certifying Accountant

     None.

Item 6.     Exhibits

31.1 Certification  by  the  Principal  Executive  and  interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 302 of the
     Sarbanes-Oxley  Act  of  2002  (Rule  13a-14(a)  or  Rule  15d-14(a)).

32.1 Certification  by  the  Principal  Executive  and  interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley  Act  of  2002  (18  U.S.C.  1350)  (furnished  herewith).

                                       24
<PAGE>

                                   SIGNATURES
                                   ----------

     Pursuant to the requirements 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.


COMPETITIVE TECHNOLOGIES, INC.
(the registrant)

                    By /s/ John B. Nano.
                    --------------------
                    John B. Nano
                    Chairman, President, Chief Executive Officer,
                    Interim Chief Financial Officer and
June 13, 2007       Authorized Signer



                                       25
<PAGE>

                                INDEX TO EXHIBITS


Exhibit No.     Description
-----------     -----------


31.1 Certification  by  the  Principal  Executive  and  Interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 302 of the
     Sarbanes-Oxley  Act  of  2002  (Rule  13a-14(a)  or  Rule  15d-14(a)).

32.1 Certification  by  the  Principal  Executive  and  Interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley  Act  of  2002  (18  U.S.C.  1350)  (furnished  herewith).



























                                [GRAPHIC OMITED]




                                       26
<PAGE>