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, 2008
                         -------------------------------------

                                       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
                                                ------
                  *
                *****
              **-----**
            **-----       COMPETITIVE
          ****----        TECHNOLOGIES
            **=====       Unlocking the Potential of Innovation (R)
              **=====**
                *****
                  *  (R)  Technology Transfer and Licensing Services

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

Delaware                                    36-2664428
--------                                    ----------
(State or other jurisdiction if             (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, a non-accelerated filer or a smaller reporting company. See
definition of "accelerated filer, large accelerated filer and smaller reporting
company" as defined in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ]     Accelerated filer [ ]
Non-accelerated filer [ ]     Smaller reporting company [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 court.     Yes [ ]          No [ ]

The number of shares of the registrant's common stock outstanding as of June 12,
2008 was 8,179,872 shares.


<PAGE>
                         COMPETITIVE TECHNOLOGIES, INC.
                         ------------------------------

                     INDEX TO QUARTERLY REPORT ON FORM 10-Q



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

Item 1.  Condensed Consolidated Interim Financial Statements (Unaudited)

     Condensed Consolidated Balance Sheets at April 30, 2008
          (unaudited) and July 31, 2007........................................3

     Condensed Consolidated Statements of Operations for the
          three months ended April 30, 2008 and 2007 (unaudited)...............4

     Condensed Consolidated Statements of Operations for the
          nine months ended April 30, 2008 and 2007 (unaudited)................5

     Condensed Consolidated Statement of Comprehensive Income (Loss)
          and Changes in Shareholders' Interest for the nine months
          ended April 30, 2008 (unaudited).....................................6

     Condensed Consolidated Statement of Cash Flows for the
          nine months ended April 30, 2008 and 2007 (unaudited)................7

     Notes to Condensed Consolidated Interim Financial
          Statements (unaudited)..........................................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 3.  Defaults Upon Senior Securities......................................24

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

Item 5.  Other................................................................24

Item 6.  Exhibits.............................................................24

Signatures....................................................................25

Exhibit Index.................................................................26

                                        2
<PAGE>
                         PART I.  FINANCIAL INFORMATION
                         ------------------------------

ITEM 1.  CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                     Condensed Consolidated Balance Sheets

                                           APRIL 30, 2008    July 31, 2007
                                            (Unaudited)
                                          ----------------  ---------------
ASSETS
Current Assets:
  Cash and cash equivalents               $     2,900,705   $    6,572,076
  Receivables, net of allowance
    of $101,154 and $422,604 at
    April 30, 2008 and July 31, 2007              948,037          739,797
  Available-for-sale securities                         -        1,630,237
  Inventory                                        31,300           44,781
  Prepaid expenses and other
    current assets                                170,070          377,419
                                          ----------------  ---------------
    Total current assets                        4,050,112        9,364,310

Property and equipment, net                       280,711          304,185
Other long term assets                             40,833           43,861
Intangible assets acquired, net                         -              377
                                          ----------------  ---------------
      TOTAL ASSETS                        $     4,371,656   $    9,712,733
                                          ================  ===============

LIABILITIES AND
SHAREHOLDERS' INTEREST
Current Liabilities:
  Accounts payable                        $       586,693   $      727,808
  Accrued expenses and other liabilities        1,071,173        1,323,485
                                          ----------------  ---------------
    Total current liabilities                   1,657,866        2,051,293
Deferred Rent                                      74,994           62,624
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,
    8,179,872 and 8,107,380 shares
    issued and outstanding                         81,798           81,073
  Capital in excess of par value               35,681,426       35,263,453
  Accumulated deficit                         (33,185,103)     (28,315,344)
  Accumulated other comprehensive income                -          508,959
                                          ----------------  ---------------

    Total shareholders' interest                2,638,796        7,598,816
                                          ----------------  ---------------
    TOTAL LIABILITIES AND
      SHAREHOLDERS' INTEREST              $     4,371,656   $    9,712,733
                                          ================  ===============

                             See accompanying notes


                                        3
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)
                   ------------------------------------------

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                Condensed Consolidated Statements of Operations
                                  (Unaudited)

                                         Three months ended April 30,
                                                 2008           2007
                                         -------------  -------------
REVENUES
Retained royalties                       $    210,490   $    664,308
Investment income                              26,337        121,237
Product sales                                   1,302        107,041
                                         -------------  -------------
                                              238,129        892,586
                                         -------------  -------------
EXPENSES
Cost of product sales                             800         76,539
Personnel and other direct
  expenses relating to revenues               539,065      1,913,644
General and administrative expenses           708,317        819,300
Patent enforcement expenses,
  net of reimbursements                           742        124,957
                                         -------------  -------------

                                            1,248,924      2,934,440
                                         -------------  -------------
(Loss) before income taxes                 (1,010,795)    (2,041,854)
Provision (benefit) for income taxes                -              -
                                         -------------  -------------

NET (LOSS)                               $ (1,010,795)  $ (2,041,854)
                                         =============  =============

Basic and diluted (loss) per share       $      (0.12)  $      (0.25)
                                         =============  =============


Basic and diluted weighted average
  number of common shares outstanding:     8,179,872     8,047,899

                             See accompanying notes


                                        4
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)
                   ------------------------------------------

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                Condensed Consolidated Statements of Operations
                                  (Unaudited)



                                         Nine months ended April 30,
                                                2008          2007
                                         ------------  ------------
REVENUES
Retained royalties                       $   763,529   $ 2,138,721
Investment income                            146,524       445,992
Product sales                                 58,586       107,041
                                         ------------  ------------
                                             968,639     2,691,754
                                         ------------  ------------
EXPENSES
Cost of product sales                         52,181        76,539
Personnel and other direct
  expenses relating to revenues            2,554,001     4,388,477
General and administrative expenses        2,901,151     4,432,523
Patent enforcement expenses,
  net of reimbursements                       32,660       521,062
Impairment of available-for-sale
  securities                                 227,596             -
Loss on sale of available-for-sale
  securities, net of gains                    70,809             -
                                         ------------  ------------

                                           5,838,398     9,418,601
                                         ------------  ------------
(Loss) before income taxes                (4,869,759)   (6,726,847)
Provision (benefit) for income taxes               -             -
                                         ------------  ------------

NET (LOSS)                               $(4,869,759)  $(6,726,847)
                                         ============  ============

Basic and diluted (loss) per share       $     (0.60)  $     (0.84)
                                         ============  ============


Basic and diluted weighted average
  number of common shares outstanding:     8,148,443     8,017,901

                             See accompanying notes


                                        5
<PAGE>
<TABLE>
<CAPTION>


                                            PART I. FINANCIAL INFORMATION (CONTINUED)

                                         COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
                Condensed Consolidated Statement of Comprehensive Income (Loss) and Changes in Shareholders' Interest
                                             For the nine months ended April 30, 2008
                                                           (Unaudited)

<S>                           <C>      <C>        <C>          <C>      <C>          <C>            <C>              <C>

                              PREFERRED STOCK     COMMON STOCK
                              ------------------  --------------------  CAPITAL                     ACCUMU-          TOTAL
                              SHARES                                    IN EXCESS    ACCUMU-        LATED OTHER      SHARE-
                              OUTST-              SHARES                OF PAR       LATED          COMPREHENSIVE    HOLDERS'
                              ANDING   AMOUNT     OUTSTANDING  AMOUNT   VALUE        DEFICIT        INCOME/(LOSS)    INTEREST
                              -------  ---------  -----------  -------  -----------  -------------  ---------------  ------------

Balance - July 31, 2007         2,427  $  60,675    8,107,380  $81,073  $35,263,453  $(28,315,344)  $      508,959   $ 7,598,816
Comprehensive loss:
  Net (loss)                                                                           (4,869,759)                    (4,869,759)
  Unrealized decrease
     in market value
    of securities                                                                                         (626,144)     (626,144)
  Foreign currency
    translation adjust-
    ments on securities                                                                                     60,923        60,923
  Reclassification
    to net loss                                                                                             56,262        56,262
                                                                                                                     ------------

  Total compre-
    hensive (loss)                                                                                                    (5,378,718)

  Compensation
    expense from stock
    option grants                                                           270,490                                      270,490
  Stock issued under
    401(k) Plan                                        62,492      625      132,483                                      133,108
  Stock issued to Directors                            10,000      100       15,000                                       15,100
                              -------  ---------  -----------  -------  -----------  -------------  ---------------  ------------

Balance - April 30, 2008        2,427  $  60,675    8,179,872  $81,798  $35,681,426  $(33,185,103)  $            -   $ 2,638,796
  (Unaudited)                 =======  =========  ===========  =======  ===========  =============  ===============  ============


                                                 See accompanying notes
</TABLE>


                                        6
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statement of Cash Flows
                                  (Unaudited)



                                              Nine months ended April 30,
                                                     2008          2007
                                              ------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss)                                  $(4,869,759)  $(6,726,847)
  Non-cash and other expenses (income)
    included in net loss:

  Depreciation and amortization                    54,186        68,155
  Deferred rent                                    12,370             -
  Share-based compensation - stock options        270,490       845,417
  Accrued stock contribution                      120,662       104,562
  Loss on available-for-sale securities            70,809             -
  Loss on permanent impairment of
    available-for-sale securities                 227,596             -
  Changes in assets and liabilities:
    Receivables                                  (208,240)    1,872,416
    Inventory                                      13,481             -
    Prepaid expenses and other
      long-term assets                            210,376       138,290
    Accounts payable and accrued
      expenses and other liabilities             (365,881)      922,502
                                              ------------  ------------
Net cash used in operating activities          (4,463,910)   (2,775,505)
                                              ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment             (30,334)     (223,757)
  Proceeds from sales of
    available-for-sale securities                 822,873             -
  Investment in non-public companies                    -      (750,000)
                                              ------------  ------------
Net cash provided by (used in)
  investing activities                            792,539      (973,757)
                                              ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercises of stock options              -        78,425
                                              ------------  ------------
Net cash provided by financing activities               -        78,425
                                              ------------  ------------

Net (decrease) in cash and cash equivalents    (3,671,371)   (3,670,837)
Cash and cash equivalents at
  beginning of period                           6,572,076    12,909,311
                                              ------------  ------------

Cash and cash equivalents at end of period    $ 2,900,705   $ 9,238,474
                                              ============  ============

SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS:

     On November 21, 2007, the Company contributed 62,492 shares of common stock
valued at $133,108 to the 401(k) Plan.  On January 2, 2008, the Company issued
10,000 shares valued at $15,100 as compensation to four non-employee directors
under the 1996 Directors' Stock Participation Plan.

                             See accompanying notes


                                        7
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

          Notes to Condensed Consolidated Interim 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 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. In
fiscal 2008, we began test marketing in the US an electronic device used for
stress reduction and memory improvement purposes, selling 37 units in the first
nine months fiscal 2008. The Company is seeking US distributors for this
product. 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 made all adjustments necessary, consisting only of normal
recurring adjustments, to present the unaudited condensed consolidated financial
statements in conformity with accounting principles generally accepted in the
United States of America.  The results for the three and nine months ended April
30, 2008 are not necessarily indicative of the results that can be expected for
the full fiscal year ending July 31, 2008.

     The interim unaudited condensed consolidated financial statements, and
notes thereto, should be read in conjunction with our Annual Report on Form 10-K
for the year ended July 31, 2007, filed on October 29, 2007.

     The Company incurred an operating loss for the first nine months of fiscal
2008, as well as operating losses in fiscal 2007 and 2006. During fiscal 2007,
we had a significant concentration of revenues from our homocysteine assay
technology. The patent for this technology expired in July 2007 and we will not
receive revenues for sales made after that date. Revenue in 2008 for the
homocysteine technology reflects previously unreported back royalties. We
continue to seek revenue from new technology licenses to mitigate the
concentration of revenues, and replace revenues from expiring licenses. At
current reduced spending levels, the Company may not have sufficient cash flow
to fund operating expenses beyond third quarter fiscal 2009. These conditions
raise substantial doubt about the Company's ability to continue as a going
concern. The financial statements do not include adjustments to reflect the
possible future effect of the recoverability and classification of assets or
amounts and classifications of liabilities that may result from the outcome of
this uncertainty.

     The Company's continuation as a going concern is dependent upon its
developing other recurring revenue streams sufficient to cover operating costs.
If necessary, we will meet anticipated operating cash requirements by further
reducing costs, and/or pursuing sales of certain assets and technologies while
we pursue licensing opportunities for our remaining portfolio of technologies.
The company does not have any significant individual cash or capital
requirements in the budget going forward. There can be no assurance that the
Company will be successful in such efforts. Failure to develop a recurring
revenue stream sufficient to cover operating expenses would negatively affect
the Company's financial position.

2.     NET LOSS PER COMMON SHARE

     For the nine months ended April 30, 2008 and 2007, respectively, 837,478
and 1,116,415 shares 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,
                                2008          2007          2008          2007
                         ------------  ------------  ------------  ------------
Net (loss)               $(1,010,795)  $(2,041,854)  $(4,869,759)  $(6,726,847)
Unrealized increase
  (decrease) in market
  price of securities              -       219,985      (626,144)    1,091,432
Foreign currency
  translation adjust-
  ments on securities              -       105,408        60,923       109,506
Reclassification to
  net income                       -             -        56,262             -
                         ------------  ------------  ------------  ------------
Comprehensive (loss)     $(1,010,795)  $(1,716,461)  $(5,378,718)  $(5,525,909)
                         ============  ============  ============  ============


     Accumulated other comprehensive loss consists of the following:
     --------------------------------------------------------------

                                         APRIL 30,   July 31,
                                              2008       2007
                                        ----------  ---------

Accumulated net unrealized holding
 income on equity securities            $        -  $  80,951
Accumulated unrealized foreign
 Currency translation gains                      -    195,884
Accumulated unrealized gain from
 reversal of sale restriction discount           -    232,124
                                        ----------  ---------
Accumulated other comprehensive
 income                                 $        -  $ 508,959
                                        ==========  =========


4.     RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

     In September 2006, the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 157, "Fair Value Measurements" ("SFAS 157").  This
statement establishes a framework for measuring fair value in generally accepted
accounting principles and expands disclosures about fair value measurements.
SFAS 157 is effective for financial statements issued for fiscal years beginning
after November 15, 2007, and interim periods within those fiscal years.  The
provisions of SFAS 157 should be applied prospectively as of the beginning of
the fiscal year in which SFAS 157 is initially applied, except in limited
circumstances.  We are currently evaluating the impact of SFAS 157 on our
consolidated financial statements.

     In February 2008, the FASB Staff Position No. 157-1, "Application of FASB
Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements
That Address Fair Value Measurements for Purposes of Lease Classification or
Measurement under Statement 13" (FSP FAS 157-1"). FSP FAS 157-1 excludes FASB
Statement No. 13, "Accounting for Leases" (SFAS 13"), as well as other
accounting pronouncements that address fair value measurements on lease
classification or measurement under Statement 13, from the scope of SFAS 157.
FSP FAS 157-1 is effective upon the initial adoption of SFAS 157. The Company
believes that upon the adoption of SFAS 157, FSP FAS 157-1 will have no affect
on the way the Company accounts for its leases under SFAS 13.

     In February 2008, the FASB issues FASB Staff Position No. 157-2, "Effective
Date of FASB Statement No. 157" ("FSP FAS 157-2"). FSP FAS 157-2 delays the
effective date of SFAS 157 for all nonrecurring fair value measurements of
nonfinancial assets and nonfinancial liabilities until fiscal years beginning
after November 15, 2008. FSP FAS 157-2 states that a measurement is recurring if
it happens at least annually and defines nonfinancial assets and nonfinancial
liabilities as all assets and liabilities other than those meeting the
definition of a financial asset or financial liability in FASB Statement No.
159, "The Fair Value Option for Financial Assets and Financial

                                        9
<PAGE>
Liabilities".  FSP FAS 157-2 is effective upon issuance.  The Company is
currently evaluating the impact adoption of FAP FAS 157-2 may have on the
financial statements.

     In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities-including an amendment of FASB
Statement No. 115" ("SFAS 159"). This statement permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value and establishes
presentation and disclosure requirements designed to facilitate comparisons
between entities that choose different measurement attributes for similar types
of assets and liabilities. SFAS 159 is effective as of the beginning of an
entity's first fiscal year that begins after November 15, 2007. Early adoption
is permitted as of the beginning of a fiscal year that begins on or before
November 15, 2007, provided the entity also elects to apply the provisions of
SFAS 157. We are currently evaluating the impact of SFAS 159 on our consolidated
financial statements.

     In December 2007, the FASB issued Statement No. 141(R), "Business
Combinations" ("SFAS 141(R)"). SFAS 141(R) expands the definition of
transactions and events that qualify as business combinations; requires that the
acquired assets and liabilities, including contingencies, be recorded at the
fair value determined on the acquisition date and changes thereafter reflected
in revenue, not goodwill; changes the recognition timing for restructuring
costs; and requires acquisition costs to be expensed as incurred. Adoption of
SFAS 141(R) is required for combinations after December 15, 2008. Early adoption
and retroactive application of SFAS 141(R) to fiscal years preceding the
effective date are not permitted. The Company is currently evaluating the impact
adoption of SFAS 141(R) may have on the financial statements.

     In May 2008, the FASB issued Statement No. 162, "The Hierarchy of Generally
Accepted Accounting Principles" ("SFAS 162"). The new standard is intended to
improve financial reporting by identifying a consistent framework, or hierarchy,
for selecting accounting principles to be used in preparing financial statements
that are presented in conformity with U.S. generally accepted accounting
principles (GAAP) for nongovernmental entities. Prior to the issuance of SFAS
162, GAAP hierarchy was defined in the American Institute of Certified Public
Accountants (AICPA) Statement on Auditing Standards (SAS) No. 69, The Meaning of
Present Fairly in Conformity With Generally Accepted Accounting Principles. SAS
69 has been criticized because it is directed to the auditor rather than the
entity. SFAS 162 addresses these issues by establishing that the GAAP hierarchy
should be directed to entities because it is the entity, not its auditor, that
is responsible for selecting accounting principles for financial statements that
are presented in conformity with GAAP.

     SFAS 162 is effective 60 days following the SEC's approval of the Public
Company Accounting Oversight Board Auditing amendments to AU Section 411, The
Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles. It is only effective for nongovernmental entities; therefore, the
GAAP hierarchy will remain in SAS 69 for state and local governmental entities
and federal governmental entities. The Company is currently evaluating the
impact adoption of SFAS 162 may have on the financial statements.

5.     RECEIVABLES

     Receivables consist of the following:
     ------------------------------------

                                       APRIL 30,   July 31,
                                            2008       2007
                                      ----------  ---------
Royalties, net of allowance of
  $101,154 and $422,604 at April 30,
  2008 and July 31, 2007              $  709,949  $ 513,085
Receivable from insurance carrier        207,283    177,304
Other                                     30,805     49,408
                                      ----------  ---------
Total receivables                     $  948,037  $ 739,797
                                      ==========  =========

Receivable from insurance carrier relates to SEC litigation regarding Mr. McPike
as noted in Part I, Note 10.

                                       10
<PAGE>
     6.     INVENTORY

     Inventory consists of the stress reduction and memory improvement devices.

     Inventories, consisting of finished goods, are stated at the lower of cost
(first-in, first-out) or market.

7.     EQUITY SECURITIES

     The fair value of the equity securities we held were categorized as
available-for-sale securities, which were carried at fair value, and classified
as current assets, consisted of the following:

                            APRIL 30,    July 31,  Number
                                 2008        2007  of shares  Type
                           ----------  ----------  ---------  ------------
Palatin (original
  basis $295,596)                   -  $  311,100    170,000  Common Stock
Clinuvel (original
  basis $825,682)                   -   1,319,137  1,913,032  Common Stock
MelanoTan                           -           -    378,000  Common Stock
NTRU Cryptosystems, Inc.            -           -  3,129,509  Common Stock
                           ----------  ----------
                           $      -0-  $1,630,237
                           ==========  ==========

     At October 31, 2007, the Company determined that the decline in value of
the Palatin shares was other than temporary.  As a result, the Company reduced
the amount recorded as available-for-sale securities to equal the fair market
value of such shares at October 31, 2007 and recognized an impairment of
available-for-sale securities of $227,596 during the first quarter of fiscal
2008.

     During the first nine months of fiscal 2008 we sold 170,000 shares of
Palatin stock with an adjusted cost basis of $68,000 for $40,716. The loss on
the sale of $27,284, including gross gains of $-0- and gross losses of $27,284,
is included in loss on sale of available-for-sale securities.

     In addition, during the first nine months of fiscal 2008 we sold 1.9
million shares of Clinuvel stock for $782,157 with a cost basis of $825,682.
The loss on sale of $43,525, including gross gains of $24,325 and gross losses
of $67,850, is included in loss on sale of available-for-sale securities.

8.     ACCRUED EXPENSES AND OTHER LIABILITIES

     Accrued expenses and other liabilities consist of the following:
     ---------------------------------------------------------------

                                         APRIL 30,    July 31,
                                              2008        2007
                                        ----------  ----------

Royalties payable                       $  514,247  $  594,331
Accrued compensation                       153,679     236,218
Accrued professional fees                  196,028     388,779
Customer refunds                            54,749           -
Accrued payables - inventory                34,911           -
Other                                      117,559     104,157
                                        ----------  ----------
Accrued expenses and other liabilities  $1,071,173  $1,323,485
                                        ==========  ==========


                                       11
<PAGE>
9.     SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION PLANS

     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.  The Company accounts for its
non-employee options under EITF 96-18, "Accounting for Equity Instruments that
are Issued to Other Than Employees for Acquiring, or in Conjunction With
Selling, Goods or Services" ("EITF 96-18").
`
     During the first quarter of fiscal 2008, the Company granted to its
non-employee directors as their initial directors award, options to purchase an
aggregate of 50,000 shares of common stock under the Directors' Stock Option
Plan at a weighted average exercise price of $2.52 per share that vested
immediately.  The fair value of the options granted for the first quarter fiscal
2008 was $81,440.  This amount was recorded as non-cash compensation expense
during the respective period.

     During the second quarter of fiscal 2008, the Company granted to its
non-employee directors as their annual award, options to purchase an aggregate
of 50,000 shares of common stock under the Directors' Stock Option Plan at a
weighted average exercise price of $1.51 per share that vested immediately. The
fair value of the options granted for the second quarter fiscal 2008 was
$46,250. This amount was recorded as non-cash compensation expense during the
respective period.

     During the first quarter of fiscal 2008, the Company granted to its
employees options to purchase an aggregate of 190,000 shares of common stock
under the 1997 Employees' Stock Option Plan at an exercise price of $2.25 which
vest over four years. The fair value of these options was $272,080, which will
be recognized as non-cash compensation expense over the vesting period. For the
three and nine months ended April 30, 2008, the Company recognized $49,252 and
$142,800, respectively, of non-cash compensation expense for the fair value of
options granted to employees.

     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 3.28% to 4.62%; expected life five years; expected
volatility from 71.909% to 75.746%, and expected dividends of zero.  The fair
value generated by the Black-Scholes model may not be indicative of the future
benefit, if any, to the option holder.

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 infringement of our patent covering homocysteine assays, and seeking
monetary damages, punitive damages, attorneys' fees, court costs and other
remuneration at the option of the court.  Carolina Liquid was served on
September 1, 2005.  We became aware of other infringers and 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 of Colorado ruled that 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. This request was granted by the USPTO on
December 14, 2006 and re-examination proceedings are underway.  We do not expect
an adverse finding by the USPTO, however, the re-examination process will
further delay the resolution of the case.  Further action in this case is
pending.

     Palatin Technologies - CTT initiated litigation on September 14, 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 filed their complaints,
counterclaims, and responses. 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.

                                       12
<PAGE>

     On October 2, 2007, we presented Palatin with a notice that it was in
default of the PT-14 technology license agreement stating that Palatin committed
a material breach of the March 31, 1998 agreement.

     On January 22, 2008, we announced an agreement with Palatin terminating the
License Agreement of March 31, 1998. As part of this agreement, Palatin agreed
to pay CTT $800,000. These funds were received in January 2008. In addition, it
was agreed that all disputes and liabilities related to the Agreement being
discussed in both the litigation and arbitration proceedings would be dismissed.
CTT recorded revenue of $320,000 and reduced patent enforcement expenses by
$480,000 in accordance with the agreement with our client.

     CTT retains all rights to the technology commonly known as PT-14, and is
pursuing discussions with parties to develop this technology.

     Ben Marcovitch and other co-defendants - On August 8, 2007, we announced
that former CTT Director Ben Marcovitch had been removed for cause from our
Board of Directors by unanimous vote of CTT's five Directors for violating CTT's
Code of Conduct. At that time, CTT also withdrew from its involvement with
Agrofrut, E.U., a nutraceutical firm brought to CTT by Mr. Marcovitch. As
announced on April 10, 2007, CTT had paid $750,000 to Agrofrut for a 5%
ownership, and certain marketing and investment options in Agrofrut.

     On August 31, 2007, we filed a Federal complaint in the U.S. District Court
for the District of Connecticut against Mr. Marcovitch, Betty Rios Valencia,
President and CEO of Agrofrut and former spouse of Mr. Marcovitch, John Derek
Elwin, III, a former CTT employee, and other defendants. The complaint claims
that false and misleading information had been provided to CTT in a conspiracy
to fraudulently obtain funds from CTT using the Agrofrut transaction. We have
requested, among other relief, punitive damages and attorneys' fees. It is our
opinion and that of our Board of Directors that this lawsuit is required to
recover our $750,000 and to settle outstanding issues regarding the named
parties.

     On October 22, 2007, at a show cause hearing, the Court stated that all
defendants named in the case, and their associates, were enjoined from any
further use of any remaining part of the $750,000 received from CTT. The Court
ordered a full disclosure of all accounts where remaining funds are held, and a
complete description of the disposition of any portion of the CTT payment must
be made to CTT's counsel. At a December 7, 2007 hearing, the Court requested CTT
to specify an appropriate Prejudgment Remedy for the Court to consider. On
December 20, 2007, a Prejudgment Remedy was issued granting garnishment of the
$750,000 CTT is seeking to recover.

     On January 11, 2008, the Court denied the defendants' attempts at
demonstrating that Connecticut was not the proper jurisdiction for these
hearings.

     On April 22, 2008, the Court ruled that the defendants must make
arrangements for depositions to be completed by May 2, 2008, a date that was
then extended by the Court. The Court granted permission for the defendants'
depositions to be conducted via video conferencing when the defendants indicated
their inability to travel to the Connecticut court. The depositions were
conducted on June 2, 2008.

     We intend to aggressively pursue this matter. We have also filed a claim
under our fraud insurance policy with Federal Insurance Company, a part of the
Chubb Group.

     Securities and Exchange Commission-- On August 11, 2004, the SEC filed a
civil suit in the United States District Court for the District of Connecticut,
naming Frank R. McPike, Jr., former President and CEO of CTT, 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.

     We 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.

                                       13
<PAGE>

     On October 10, 2007, we agreed to a settlement of this case without the
Company admitting or denying the allegation of the complaint, and consenting to
be permanently restrained and enjoined from violating Sections 9(a) and 10(b) of
the Securities Exchange Act of 1934, and rule 10b-5 thereunder. No fines or
penalties were imposed on the Company by the SEC in connection with this
settlement. The settlement agreement has been approved by the SEC and on October
26, 2007 was accepted by the Connecticut Federal District Court. This will close
the SEC's investigation and proceedings against the Company. No members of CTT's
current Board or management held positions with the Company during the period of
1998-2001.

     Frank R. McPike, who was charged separately from the Company but covered
under the Company's insurance, personally agreed on a settlement with the SEC,
which was accepted by the court on October 31, 2007. The Company incurred no
costs in connection with Mr. McPike's settlement.  The penalty phase review for
Mr. McPike has now been completed between Mr. McPike, the SEC and the Court.
This case has now been settled regarding CTT and Mr. McPike.

     ICR, LLC - On August 3, 2007, ICR, LLC filed a complaint in Superior Court,
Judicial District of Fairfield, at Bridgeport, Connecticut against CTT in an
attempt to collect funds allegedly owed them from a previously cancelled
contract.  Previous management had employed ICR for public relations activity
during their proxy contest in their attempt to be re-elected.  The consulting
contract was cancelled by the new management after their election in February
2007.  CTT filed counter-claims against ICR.  On June 6, 2008 the matter was
resolved with mutual withdrawal of the respective complaints. No monetary
payment was made by either party.

Federal Insurance Co. - On April 2, 2008, CTT filed a complaint in the U.S.
District Court for the District of Connecticut against Federal Insurance,
seeking the coverage to which it is entitled under its policy with Federal.  CTT
asserts that Federal is obligated to insure CTT for its $750,000 loss and legal
fees associated with the case involving Ben Marcovitch and other co-defendants.
The case is proceeding through the court.

     Employment Matters - In September 2003, a former employee filed a complaint
with OSHA. The hearing held before the Administrative Law Judge in May 2005
resulted in a dismissal of the case by the ALJ, which was appealed by the former
employee to the Administrative Review Board. In March 2008 the ARB remanded the
case back to the ALJ for further proceedings.

In August 2007, a complaint filed in a separate action with OSHA alleged that
CTT had unfairly banned the same former employee from the workplace.  In March
2008, this case, dismissed by OSHA, was also appealed by the former employee to
the ARB.

     Summary - We may be a party to other legal actions and proceedings from
time to time.  We are unable to estimate the legal expenses or losses we may
incur, or damages we may recover in these actions, if any, and have not accrued
potential gains or losses in our financial statements.  We record expenses in
connection with these actions as they are incurred.

     We believe 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 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 legal fees and other costs to defend or
prosecute any of these actions may have a material adverse effect on our
consolidated financial position, results of operations and cash flows in a
particular period.


                                       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 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, 2007, filed with the Securities and Exchange Commission ("SEC") on
October 29, 2007, 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, selling 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").  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.  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 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 usage of the technology, and we share those royalties with our clients.  Our
customer's revenues and therefore our revenues fluctuate due to one-time upfront
license fees, frequency of new licenses granted, expiration of existing
licenses, and/or the expiration or economic obsolescence of patents underlying
licenses.  In fiscal 2008, we began test marketing in the US an electronic
device used for stress reduction and memory improvement purposes, selling 37
units in the first nine months 2008.  The Company is seeking US distributors for
this product.

     The following discussion and analysis provides information we believe
relevant to an 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

     During fiscal 2007, we had a significant concentration of revenues from our
homocysteine assay technology. The patent for this technology expired in July
2007 and we will not receive revenues for sales made after that date. Revenue in
2008 for the homocysteine technology reflects previously unreported back
royalties. We continue to seek revenue from new technology licenses to mitigate
the concentration of revenues, and replace revenues from expiring licenses.

     PRESENTATION

     We rounded all amounts in this Item 2 to the nearest thousand dollars,
except per share data. Certain amounts may not total precisely.  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.

                                       15
<PAGE>
RESULTS OF OPERATIONS - THREE MONTHS ENDED APRIL 30, 2008 ("THIRD QUARTER 2008")
VS. THREE MONTHS ENDED APRIL 30, 2007 ("THIRD QUARTER 2007")

     SUMMARY OF RESULTS

     We incurred a net loss of $1,011,000 or $0.12 per share for the third
quarter 2008, compared to a net loss of $2,042,000 or $0.25 per share for the
third quarter 2007, a 50% decrease in net loss of $1,031,000, or $0.13 per
share.  As explained in detail below, the decrease in the net loss reflects a
decrease of $1,686,000 in expenses partially offset by a decrease in revenue of
$655,000.

     REVENUES

     In the third quarter 2008, total revenues were $238,000, compared to
$893,000 for the third quarter 2007, a 73% decrease of $655,000.

     Retained royalties for the third quarter 2008 were $210,000, which was
$454,000, or 68% less than the $664,000 of retained royalties reported in the
third quarter 2007. The following compares retained royalty revenues by
technology in the third quarter 2008 with the third quarter 2007.


                                    For the three months ended April 30,
                           ---------------------------------------------
                               2008      2007   (Decrease)  % (Decrease)
                           --------  --------  -----------  ------------

Homocysteine assay         $164,000  $539,000  $ (375,000)         (70)%
All other technologies       46,000   125,000     (79,000)         (63)%
                           --------  --------  -----------
 TOTAL RETAINED ROYALTIES  $210,000  $664,000  $ (454,000)         (68)%
                           ========  ========  ===========

     Royalty revenues from our homocysteine technology decreased $375,000 in the
third quarter 2008 compared to the third quarter 2007, or a 70% decrease.  The
decrease is due to the expiration of the underlying patent in July 2007. Revenue
in 2008 for the homocysteine technology reflects previously unreported back
royalties.

     Investment income includes dividends and interest earned on our invested
cash.  Investment income was $26,000 in the third quarter 2008, which was a
decrease of $95,000, or 79% from the $121,000 reported for the third quarter
2007.  The decrease was primarily due to lower invested balances for the current
quarter as compared to the prior year.

     Product sales for the third quarter of fiscal 2008 consist of sales of our
new electronic stress management and memory improvement device.  In fiscal 2008,
we began test marketing the stress reduction and memory improvement device in
the US, selling four units in the third quarter 2008.  The Company is seeking US
distributors for this product.  Product sales for the third quarter of fiscal
2007 consisted of sales of our thermal therapy units, which we no longer have
available.

                                       16
<PAGE>
     EXPENSES


                                     For the three months ended April 30,
                        -------------------------------------------------
                                                Increase      % Increase
                              2008        2007    (Decrease)   (Decrease)
                        ----------  ----------  ------------  -----------

Cost of product sales   $    1,000  $   77,000  $   (76,000)         (99)
Personnel and other
  direct expenses
  relating to revenues     539,000   1,914,000   (1,375,000)         (72)
General and administ-
  rative expenses          708,000     819,000     (111,000)         (14)
Patent enforcement
  expenses net of
  reimbursements             1,000     125,000     (124,000)         (99)
                        ----------  ----------  ------------
  TOTAL EXPENSES        $1,249,000  $2,935,000  $(1,686,000)         (57)
                        ==========  ==========  ============

     Total expenses decreased $1,686,000 or 57% in the third quarter 2008,
compared to the third quarter 2007.

     Cost of product sales for the third quarter of fiscal 2008 consists of the
cost of our new electronic stress management and memory improvement product.
Cost of sales for 2007 is for our thermal therapy unit, which we no longer have
available.

     Personnel and other direct expenses relating to revenues decreased a net
$1,375,000 in the third quarter 2008, compared to the third quarter 2007, with
decreases in payroll of $335,000, a result of reducing headcount 40%, from 20 to
12, employee stock option expense $613,000, the result of all outstanding
options vesting in the third quarter 2007 as a result of the change in control
provision in the stock option plan, employee bonuses $304,000, the result of
reversing the current year bonus accrual in the third quarter as it is unlikely
the company will be paying any bonuses for fiscal 2008, and recruiting expenses
$134,000.  Recruiting expense in fiscal 2007 was for the hiring of two financial
staff and a retainer for the search for an additional business development
executive.

     General and administrative expenses decreased a net $111,000 in the third
quarter 2008, compared to the third quarter 2007 primarily due to reductions in
investor relations expenses as a result of negotiation of more favorable terms
with outside consultants $56,000, investment banking expenses as a result of
termination of a contract $34,000, and reduced travel and entertainment expenses
as a result of lower headcount and the concerted effort by management to reduce
costs $30,000, offset by expenses for the new CTT Innovation Conference
$110,000, and a net increase in legal and litigation costs $30,000, primarily
due to the Marcovitch case.  We collected a previously reserved homocysteine
receivable of $320,000.  This resulted in a recovery of previously recorded bad
debt expense of $129,000, and an increase in royalties payable of $191,000, in
accordance with the agreement with our client.

     Patent enforcement expenses, net of reimbursements, decreased a net
$124,000 in the third quarter 2008, compared to the third quarter 2007.  Patent
enforcement expenses vary, depending on the activity relating to outstanding
litigation.  The reduction of expenses is primarily due to settlement of
litigation with Fujitsu and Palatin before the current quarter started.  In
addition, in the Carolina Liquids case, there has been less activity as we await
the results of the patent reexam and this has resulted in fewer reimbursements.

RESULTS OF OPERATIONS - NINE MONTHS ENDED APRIL 30, 2008 ("FIRST NINE MONTHS
2008") VS. NINE MONTHS ENDED APRIL 30, 2007 ("FIRST NINE MONTHS 2007")

     SUMMARY OF RESULTS

     We incurred a net loss of $4,870,000 or $0.60 per share for the first nine
months 2008, compared to a net loss of $6,727,000 or $0.84 per share for the
first nine months 2007, a 28% decrease in net loss of $1,857,000, or $0.24 per
share.  As explained in detail below, the decrease in the net loss is due to a
decrease in expenses of $3,580,000 partially offset by a decrease in revenue of
$1,723,000.


                                       17
<PAGE>
REVENUES

     In the first nine months 2008, total revenues were $968,000, compared to
$2,692,000 for the first nine months 2007, a decrease of $1,724,000, or 64%.

     Retained royalties for the first nine months 2008 were $764,000, which was
$1,375,000, or 64% less than the $2,139,000 of retained royalties reported in
the first nine months 2007. The following compares retained royalty revenues by
technology in the first nine months 2008 with the first nine months 2007.

                                           For nine months ended April 30,
                           -----------------------------------------------
                                                 Increase      % Increase
                               2008        2007  (Decrease)    (Decrease)
                           --------  ----------  ------------  -----------

Homocysteine assay         $247,000  $1,694,000  $(1,447,000)        (85)%
Sexual Dysfunction          320,000      60,000      260,000          433%
All other technologies      197,000     385,000     (188,000)        (49)%
                           --------  ----------  ------------
 TOTAL RETAINED ROYALTIES  $764,000  $2,139,000  $(1,375,000)        (64)%
                           ========  ==========  ============

     Royalty revenues from our homocysteine technology decreased $1,447,000 in
the first nine months 2008 compared to the first nine months 2007, or an 85%
decrease.  The decrease is due to the expiration of the underlying patent in
July 2007. Revenue in 2008 for the homocysteine technology reflects previously
unreported back royalties.

     Royalty revenues from our sexual dysfunction technology increased $260,000
in the first nine months of 2008 compared with the first nine months of 2007, or
a 433% increase.  As a result of settling our arbitration proceeding against our
licensee, Palatin Technologies, Inc., we recovered $800,000, recording revenue
of $320,000 and reducing patent enforcement expenses $480,000 in accordance with
the agreement with our client.

     Investment income includes dividends and interest earned on our invested
cash.  Investment income was $147,000 in the first nine months 2008, which was a
decrease of $299,000, or 67% from the $446,000 reported for the first nine
months 2007.  The decrease was primarily due to lower invested balances for the
first nine months as compared to the prior year.

     Product sales for the first nine months 2008 consist of sales of our
thermal therapy unit, and our new electronic stress management and memory
improvement device.  In fiscal 2008, we began test marketing the stress
reduction and memory improvement device in the US, selling 37 units in the first
nine months 2008.  The Company is seeking US distributors for this product.
Product sales for 2007 consist entirely of sales of our thermal therapy unit,
which we no longer have available.


                                       18
<PAGE>
     EXPENSES

                                            For the nine months ended April 30,
                              -------------------------------------------------
                                                      Increase      % Increase
                                    2008        2007  (Decrease)    (Decrease)
                              ----------  ----------  ------------  -----------

Cost of product sales         $   52,000  $   77,000  $   (25,000)         (32)
Personnel and other
  direct expenses relating
  to revenues                  2,554,000   4,388,000   (1,834,000)         (42)
General and administ-
  rative expenses              2,901,000   4,433,000   (1,532,000)         (35)
Patent enforcement
  expenses net of
  reimbursements                  33,000     521,000     (488,000)         (94)
Loss on permanent
  impairment of   available-
  for sale securities            228,000           -      228,000            -
Loss on sale of available-
  for-sale securities             71,000           -       71,000            -
                              ----------  ----------  ------------
  TOTAL EXPENSES              $5,839,000  $9,419,000  $(3,580,000)         (38)
                              ==========  ==========  ============

     Total expenses decreased $3,580,000 or 38% in the first nine months 2008,
compared to the first nine months 2007.

     Cost of product sales for the first nine months fiscal 2008 consists of the
cost of our thermal therapy unit, which we no longer have available, and our new
electronic stress management and memory improvement product.  Cost of product
sales for 2007 was solely the cost of our thermal therapy unit.

     Personnel and other direct expenses relating to revenues decreased a net
$1,834,000 in the first nine months 2008, compared to the first nine months
2007, with decreases in payroll and related taxes $844,000, the result of
reducing headcount 40% from 20 to 12, severance expense $93,000, employee stock
option expense $686,000 due to all outstanding options vesting in the third
quarter of 2007 due to the change in control provision of the stock option plan,
recruiting expense $155,000 due to fees paid to replace two finance staff
members and the search for a new business development executive, and employee
bonus expense $260,000, offset by increased consulting expenses $84,000, and
other direct expenses incurred to develop new technologies $130,000.

     General and administrative expenses decreased a net $1,532,000 in the first
nine months 2008, compared to first nine months 2007, primarily due to
settlement of litigation with our current CEO for $1,000,000 last year plus
related legal fees of $740,000, including $650,000 paid directly to the
plaintiff's attorney as part of the settlement.  In addition, last year we
incurred approximately $564,000 related to the proxy fight and annual meeting.
Last year we incurred $97,000 in investment banking costs for a contract
cancelled when the new management team assumed control.  In addition, travel and
entertainment expenses are lower in 2008 by $34,000 due to lower headcount and
the concerted effort by management to reduce costs.  We collected a previously
reserved homocysteine receivable of $320,000.  This resulted in a recovery of
previously recorded bad debt expense of $129,000, and an increase in royalties
payable of $191,000, in accordance with the agreement with our client.  These
savings were offset by increased legal fees of $592,000 primarily related to the
Marcovitch litigation, increased audit and section 404 compliance expenses of
$150,000, increased investor relations expenses $53,000, increased marketing
expenses $72,000 primarily related to launching our stress reduction and memory
improvement device, the new 2008 CTT Innovation Conference $125,000, and a net
increase in directors fees and expenses $45,000, including stock compensation
expenses.

     Patent enforcement expenses, net of reimbursements, decreased a net
$488,000 in the first nine months 2008, compared to the first nine months 2007.
Patent enforcement expenses vary, depending on the activity relating to
outstanding litigation.  The reduction in patent enforcement expenses for the
first nine months of 2008 compared with the first nine months of 2007 is the
result of settling our arbitration proceeding with Palatin Technologies, Inc.,
whereby we were able to recoup $480,000 of incurred legal fees.  In addition,
Fujitsu and LabCorp litigations were settled prior to fiscal 2008 and there has
been little activity in the Carolina Liquids litigation as we await patent
reexam results.

                                       19
<PAGE>
     Loss on permanent impairment of available-for-sale securities of $228,000
relates to our investment in Palatin shares. During the first quarter of fiscal
2008, the Company determined that the decline in market value of the Palatin
shares was other than temporary and wrote the investment down to its fair market
value as of October 31, 2007.

     Loss on sale of securities of $71,000 relates to our sale of available for
sale Palatin and Clinuvel securities.

     FINANCIAL CONDITION AND LIQUIDITY

     Our liquidity requirements arise principally from our working capital
needs, including funds needed to find and obtain new technologies and to protect
and enforce our intellectual property rights, if necessary.  We fund our
liquidity requirements with a combination of cash on hand and cash flows from
operations, if any, including royalty legal awards.

     At April 30, 2008, we had no outstanding debt or available credit facility,
and believe it would be very difficult for CTT to obtain debt financing due to
the current composition of our balance sheet, including a lack of hard assets
against which to borrow, and the unpredictable nature of our annual cash flows.
Our financing options currently are limited.  We must rely on cash on hand and
cash flows from operations, if any, though this situation could change in the
future.

     We believe we will successfully license new technologies and collect due,
but unpaid, royalties on existing licenses to add to revenues, but will likely
not be able to offset our operating costs or produce a profit for fiscal 2008.
If necessary, we will meet anticipated operating cash requirements by further
reducing costs, and/or pursuing sales of certain assets and technologies while
we pursue licensing opportunities for our remaining portfolio of technologies.
Our litigation costs, including the lawsuit against Ben Marcovitch, should have
future costs at greatly reduced levels than what is reflected in our Statement
of Operations through April 30, 2008.  The Company may not have sufficient cash
flow to fund operating expenses beyond third quarter fiscal 2009.

     Cash and cash equivalents consist of demand deposits and interest earning
investments with maturities of three months or less, including overnight bank
deposits and money market funds.  We carry cash equivalents at cost.

     At April 30, 2008, cash and cash equivalents were $2,901,000 compared to
$6,572,000 at July 31, 2007.  The first nine months of fiscal 2008 loss of
$4,870,000 contained non-cash charges of $756,000 and reduction in assets and
liabilities of $350,000, resulting in cash used in operations of $4,464,000.
Cash flow provided by investing activities includes proceeds of $823,000
primarily from the sale of available-for-sale securities.  These activities
reduced cash by $3,671,000.  As of June 12, 2008, our cash and cash equivalents
balance is approximately $3,000,000.

     We currently have the benefit of using a portion of our accumulated NOLs to
eliminate any future regular federal and state income tax liabilities.  We will
continue to receive this benefit until we have utilized all of our NOLs, federal
and state.  However, we cannot determine when and if we will be profitable and
utilize the benefit of the remaining NOLs before they expire.

     CAPITAL REQUIREMENTS

     The Company incurred an operating loss for the first nine months of fiscal
2008, as well as operating losses in fiscal 2007 and 2006.  During fiscal 2007,
we had a significant concentration of revenues from our homocysteine assay
technology.  The patent for this technology expired in July 2007 and we will not
receive revenues for sales made after that date.  Revenue in 2008 for the
homocysteine technology reflects previously unreported back royalties.  We
continue to seek revenue from new technology licenses to mitigate the
concentration of revenues, and replace revenues from expiring licenses.  At the
current reduced spending levels, the Company may not have sufficient cash flow
to fund operating expenses beyond the third quarter fiscal 2009.  These
conditions raise substantial doubt about the Company's ability to continue as a
going concern.

     The Company's continuation as a going concern is dependent upon its
developing other recurring revenue streams sufficient to cover operating costs.
Our plan is to increase annual recurring revenues, achieve profitability and
increase shareholder value.  To accomplish our goals, we have increased our
global marketing capabilities, searching for

                                       20
<PAGE>
new sources of technologies, licensing those technologies, and establishing
strategic relationships.  The Company is currently pursuing sale of certain
assets and technologies while it puts its plan into operation.  The company does
not have any significant individual cash or capital requirements in the budget
going forward.  There can be no assurance that the Company will be successful in
such efforts.  Failure to develop a recurring revenue stream sufficient to cover
operating expenses could significantly negatively affect the Company's financial
position.

     CONTRACTUAL OBLIGATIONS AND CONTINGENCIES

     There have been no substantial changes to our contractual obligations since
July 31, 2007.

     Contingencies.  Our directors, officers, employees and agents may claim
indemnification in certain circumstances.  We seek to limit and reduce our
potential financial obligations for indemnification by carrying directors and
officers liability insurance, subject to deductibles.

     We also carry liability insurance, casualty insurance, for owned or leased
tangible assets, and other insurance as needed to cover us against claims and
lawsuits that occur in the ordinary course of business.

     Many of our license and service agreements provide that upfront license
fees, license fees and/or royalties we receive are applied against amounts that
our clients or we have incurred for patent application, prosecution, issuance
and maintenance costs.  If we incur such costs, we expense them as incurred, and
reduce our expense if we are reimbursed from future fees and/or royalties we
receive.  If the reimbursement belongs to our client, we record no revenue or
expense.

     As of April 30, 2008, CTT and its majority owned subsidiary, Vector Vision,
Inc. ("VVI"), have remaining obligations, contingent upon receipt of certain
revenues, to repay up to $199,006 and $207,503, respectively, in consideration
of grant funding received in 1994 and 1995.  CTT is also obligated to pay at the
rate of 7.5% of its revenues, if any, from transferring rights to certain
inventions supported by the grant funds.  VVI is obligated to pay at rates of
1.5% of its net sales of supported products or 15% of its revenue from licensing
supported products, if any.  We recognize these obligations only if we receive
revenues related to the grant funds.  We recognized approximately $2,620 of
these obligations in 2008.

     Currently, we engage independent consultants who provide us with business
development, consulting and/or evaluation services under contracts that are
cancelable upon certain written notice.  These contracts include contingencies
for potential incentive compensation earned solely on sales resulting directly
from the work of the consultant.  We have neither accrued nor paid significant
incentive compensation under such contracts in fiscal 2008 or 2007.

     CRITICAL ACCOUNTING ESTIMATES

     There have been no significant changes in our accounting estimates
described under the caption "Critical Accounting Estimates" included in Part II,
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,
2007.

                                       21
<PAGE>
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Not applicable.


                                       22
<PAGE>
ITEM 4.  CONTROLS AND PROCEDURES

     (a)     Evaluation of disclosure controls and procedures
             ------------------------------------------------

     Our management, including our President, Chief Executive Officer, and
Interim Chief Financial Officer, evaluated the effectiveness of the design and
operation of our disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) as of April 30, 2008.  Our disclosure controls
and procedures are designed to ensure that information required to be disclosed
in reports filed under the Securities Exchange Act of 1934 is recorded,
processed, summarized, and reported as specified in the Securities and Exchange
Commission's rules and forms.  Based on this evaluation, our President, Chief
Executive Officer, and Interim Chief Financial Officer concluded that our
disclosure controls and procedures were effective as of April 30, 2008.

     (b)     Change in Internal Controls
             ---------------------------

     There were no changes in our internal control over financial reporting
during the quarter ended April 30, 2008, 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,
2007.

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

     None

Item 3.     Defaults Upon Senior Securities

     None

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

     At the Annual Meeting of Shareholders held April 18, 2008, shareholders
voted on the following issues:

     -     Election of Directors

               Election of Directors     For        Withheld
               ------------------------  ---------  ---------

               Joel M. Evans, M.D.       6,009,763    725,028
               Richard D. Hornidge, Jr.  6,138,905    595,886
               Rustin Howard             5,730,224  1,004,567
               John B. Nano              6,119,347    615,444
               William L. Reali          6,133,127    601,664
               Ralph S. Torello          6,004,983    729,808

     -     Ratification of selection of Mahoney Cohen & Company, CPA, P.C.
           as the independent public accounting firm:

               Accounting Firm                  For         Against   Abstained
               ---------------                  ---         -------   ---------

               Mahoney Cohen & Co., CPA, P.C.   6,277,721   306,343   150,727

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, Chief Accounting
                              Officer and Authorized Signer

June 12, 2008

                                       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).



























                                    AMERICAN
                                 STOCK EXCHANGE
                                     LISTED
                                      CTT


                                       26
<PAGE>
                                                                    Exhibit 31.1
                                 CERTIFICATION
                                 -------------

I, John B. Nano, Chairman, President, Chief Executive Officer, Interim Chief
Financial Officer and Director, certify that:

1.     I have reviewed this Report on Form 10-Q of Competitive Technologies,
Inc. (the "Company") for the period ending April 30, 2008;

2.     Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Company as of,
and for, the periods presented in this report;

4.     I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
Company and have:

     (a)  designed such disclosure controls and procedures, or caused such
          disclosure controls and procedures to be designed under our
          supervision, to ensure that material information relating to the
          Company, including its consolidated subsidiaries, is made known to us
          by others within those entities, particularly during the period in
          which this report is being prepared;

     (b)  evaluated the effectiveness of the Company's disclosure controls
          and procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     (c)  disclosed in this report any change in the Company's internal
          control over financial reporting that occurred during the Company's
          most recent fiscal quarter (the Company's fourth fiscal quarter in the
          case of an annual report) that has materially affected, or is
          reasonably likely to materially affect, the Company's internal control
          over financial reporting.

5.     I have disclosed, based on my most recent evaluation of internal control
over financial reporting, to the Company's auditors and the audit committee of
the Company's Board of Directors (or persons performing the equivalent
functions):

     (a)  all significant deficiencies and material weaknesses in the
          design or operation of internal control over financial reporting which
          are reasonably likely to adversely affect the Company's ability to
          record, process, summarize and report financial information; and

     (b)  any fraud, whether or not material, that involves management or
          other employees who have a significant role in the Company's internal
          control over financial reporting.

                                   Date: June 12, 2008

                                   /s/ John B. Nano
                                   ----------------
                                   John B. Nano
                                   Chairman, President Chief Executive Officer,
                                   Interim Chief Financial Officer and Chief
                                   Accounting Officer

                                       27
<PAGE>
Exhibit 32.1


                           CERTIFICATION PURSUANT TO
                 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
                                (18 U.S.C. 1350)


     In connection with the Report of Competitive Technologies, Inc. (the
"Company") on Form 10-Q for the quarter ended April 30, 2008, as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, John B.
Nano, Chairman, President, Chief Executive Officer, Interim Chief Financial
Officer and Chief Accounting Officer of the Company, certify, pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), that to my
knowledge:

     1.   the Report fully complies with the requirements of Section 13(a)
          or 15(d) of the Securities Exchange Act of 1934; and

     2.   the information contained in the Report fairly presents, in all
          material respects, the financial condition and results of operations
          of the Company.


                                   /s/ John B. Nano
                                   ----------------
                                   John B. Nano
                                   Chairman, President, Chief Executive Officer,
                                   Interim Chief Financial Officer and Chief
                                   Accounting Officer

                                   June 12, 2008






                  *
                *****
              **-----**
            **-----       COMPETITIVE
          ****----        TECHNOLOGIES
            **=====       Unlocking the Potential of Innovation (R)
              **=====**
                *****
                  *  (R)  Technology Transfer and Licensing Services


                            www.competitivetech.net
                            -----------------------

                                       28