----

----

| DECORATOR      INDUSTRIES, INC.                              |
|--------------------------------------------------------------|
| (Exact      name of registrant as specified in its  charter) |

| Pennsylvania                                                                  |   |  25-1001433                               |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State or other      jurisdiction ofincorporation or      organization)  |   | (I.R.S.      Employer Identification      No.) |

| 10011 Pines Blvd., Suite #201, Pembroke Pines,Florida  |   |  33024        |
|-------------------------------------------------------------|--------|------------------------------|
| (Address of principal executive      offices)               |   |    (Zip      Code) |

| Registrant's telephone number, including area code:  |   |    (954)    436-8909 |
|-----------------------------------------------------------|--------|-------------------------------------|

|  Large      accelerated filer |  o |  Accelerated      filer               |  o      |
|------------------------------------|---------|--------------------------------------------|--------------|
|  Non-accelerated      filer   |  o |  Smaller      reporting company  |  þ |

| Title of each class                               |   | Outstanding at May 17, 2010 |
|---------------------------------------------------|--------|-----------------------------|
| Common Stock, Par Value $.20      Per Share  |   | 3,120,263shares             |

----

----

----

| ASSETS                                                           |   | April      3, 2010 |       |   | January      2, 2010 |   |
|------------------------------------------------------------------|--------|--------------------|------------|--------|----------------------|--------|
| Current      Assets:                                             |   | (UNAUDITED)        |       |   |                 |   |
| Cash      and Cash Equivalents                                   |   | $                  | 311,667    |   |                 | $      | 156,171 |   |
| Accounts      Receivable, less allowance for                     |   |               |       |   |                 |   |   |   |
| doubtful      accounts ($294,080 and $269,080)                   |   |               | 1,541,535  |   |                 |   | 1,164,669 |   |
| Inventories                                                      |   |               | 2,003,985  |   |                 |   | 2,107,151 |   |
| Income      Taxes Receivable                                     |   |               | 855,847    |   |                 |   | 1,215,000 |   |
| Other      Current Assets                                        |   |               | 389,380    |   |                 |   | 366,047 |   |
| Total      Current Assets                                        |   |               | 5,102,414  |   |                 |   | 5,009,038 |   |
| Property      and Equipment                                      |   |               |       |   |                 |   |   |   |
| Land,      Buildings & Improvements                          |   |               | 2,872,421  |   |                 |   | 2,872,421 |   |
| Machinery,      Equipment, Furniture & Fixtures and Software |   |               | 7,094,046  |   |                 |   | 7,270,508 |   |
| Total      Property and Equipment                                |   |               | 9,966,467  |   |                 |   | 10,142,929 |   |
| Less:      Accumulated Depreciation and Amortization             |   |               | 7,001,242  |   |                 |   | 7,075,614 |   |
| Active      Assets, Net                                          |   |               | 2,965,225  |   |                 |   | 3,067,315 |   |
| Property      Held for Sale, Net                                 |   |               | 3,357,565  |   |                 |   | 3,357,565 |   |
| Net      Property and Equipment                                  |   |               | 6,322,790  |   |                 |   | 6,424,880 |   |
| Goodwill,      less accumulated Amortization of $1,348,569       |   |               | 3,307,008  |   |                 |   | 3,305,008 |   |
| Deferred      Income taxes                                       |   |               | 1,261,000  |   |                 |   | 1,053,000 |   |
| Other      Assets                                                |   |               | 352,612    |   |                 |   | 378,741 |   |
| Total      Assets                                                |   | $                  | 16,345,824 |   |                 | $      | 16,170,667 |   |
| LIABILITIES      & STOCKHOLDERS' EQUITY                      |   |               |       |   |                 |   |   |   |
| Cu      rren t Liabilities:                                      |   |               |       |   |                 |   |   |   |
| Accounts      Payable                                            |   | $                  | 707,930    |   |                 | $      | 553,086 |   |
| Current      Maturities of Long-term Debt                        |   |               | 3,556,484  |   |                 |   | 3,526,484 |   |
| Checks      Issued But Not Yet Presented                         |   |               | 222,200    |   |                 |   | 135,518 |   |
| Accrued      Expenses:                                           |   |               |       |   |                 |   |   |   |
| Compensation                                                     |   |               | 275,816    |   |                 |   | 175,311 |   |
| Other                                                            |   |               | 955,291    |   |                 |   | 811,234 |   |
| Total      Current Liabilities                                   |   |               | 5,717,721  |   |                 |   | 5,201,633 |   |
| Long-Term      Debt                                              |   |               | 455,000    |   |                 |   | 490,000 |   |
| Total      Liabilities                                           |   |               | 6,172,721  |   |                 |   | 5,691,633 |   |
| Stockholders'      Equity                                        |   |               |       |   |                 |   |   |   |
| Common      Stock $.20 par value: Authorized shares, 10,000,000; |   |               |       |   |                 |   |   |   |
| Issued      shares, 4,834,107 and 4,808,729                      |   |               | 966,821    |   |                 |   | 961,746 |   |
| Paid-in      Capital                                             |   |               | 2,130,802  |   |                 |   | 2,098,287 |   |
| Retained      Earnings                                           |   |               | 15,388,403 |   |                 |   | 15,731,924 |   |
|                                                             |   |               | 18,486,026 |   |                 |   | 18,791,957 |   |
| Less:      Treasury stock, at cost: 1,713,844 shares             |   |               | 8,312,923  |   |                 |   | 8,312,923 |   |
| Total      Stockholders' Equity                                  |   |               | 10,173,103 |   |                 |   | 10,479,034 |   |
| Total      Liabilities and Stockholders' Equity                  |   | $                  | 16,345,824 |   |                 | $      | 16,170,667 |   |

----

|                                               |   | For      the Thirteen Weeks Ended |      |
|----------------------------------------------------|--------|-----------------------------------|-----------|
|                                               |   | April      3, 2010                |      |   | April      4, 2009 |   |
| Net      Sales                                     |   | $                                 | 4,020,627 |   |   |   | 100.0 | % |   | $ | 5,105,638 |   |   |   | 100.0 | % |
| Cost      of Products Sold                         |   |                              | 3,248,495 |   |   |   | 80.8 | % |   |   | 4,386,843 |   |   |   | 85.9 | % |
| Gross      Profit                                  |   |                              | 772,132   |   |   |   | 19.2 | % |   |   | 718,795 |   |   |   | 14.1 | % |
|                                               |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and Administrative Expenses           |   |                              | 1,279,169 |   |   |   | 31.8 | % |   |   | 2,488,990 |   |   |   | 48.8 | % |
| Operating      Loss                                |   |                              | (507,037  | ) |   |   | -12.6 | % |   |   | (1,770,195 | ) |   |   | -34.7 | % |
|                                               |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense)                        |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest,      Investment, and Other      Income   |   |                              | 9,248     |   |   |   | 0.2 | % |   |   | 3,631 |   |   |   | 0.1 | % |
| Interest      Expense                              |   |                              | (53,732   | ) |   |   | -1.3 | % |   |   | (36,365 | ) |   |   | -0.7 | % |
| Loss      Before Income Taxes                      |   |                              | (551,521  | ) |   |   | -13.7 | % |   |   | (1,802,929 | ) |   |   | -35.3 | % |
| Provision      for Income Taxes                    |   |                              | (208,000  | ) |   |   | -5.2 | % |   |   | (512,000 | ) |   |   | -10.0 | % |
|                                               |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                      |   | $                                 | (343,521  | ) |   |   | -8.5 | % |   | $ | (1,290,929 | ) |   |   | -25.3 | % |
|                                               |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS      PER SHARE                            |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                              |   | $                                 | (0.11     | ) |   |   |   |   |   | $ | (0.44 | ) |   |   |   |   |
| Diluted                                            |   | $                                 | (0.11     | ) |   |   |   |   |   | $ | (0.44 | ) |   |   |   |   |
|                                               |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Number of Shares Outstanding |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                              |   |                              | 3,100,184 |   |   |   |   |   |   |   | 2,953,560 |   |   |   |   |   |
| Diluted                                            |   |                              | 3,100,184 |   |   |   |   |   |   |   | 2,953,560 |   |   |   |   |   |

----

|                                                       |   | For      the Thirteen Weeks Ended |     |
|------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                       |   | April      3, 2010                |     |   | April      4, 2009 |   |
| Cash      Flows From Operating Activities:                 |   |                              |     |   |   |   |
| Net      Loss                                              |   | $                                 | (343,521 | ) |   | $ | (1,290,929 | ) |
| Adjustments      to Reconcile Net Loss to Net Cash         |   |                              |     |   |   |   |   |   |
| Provided      by / (Used in) Operating Activities          |   |                              |     |   |   |   |   |   |
| Depreciation      and Amortization                         |   |                              | 82,593   |   |   |   | 146,963 |   |
| Provision      for Losses on Accounts Receivable           |   |                              | 25,000   |   |   |   | 17,651 |   |
| Deferred      Taxes                                        |   |                              | (208,000 | ) |   |   | (512,000 | ) |
| Stock-Based      Compensation                              |   |                              | 9,421    |   |   |   | 8,239 |   |
| Loss      / (Gain) on Disposal of Assets                   |   |                              | 14,816   |   |   |   | (7,017 | ) |
| Noncash      charges for asset impairment                  |   |                              | -        |   |   |   | 335,500 |   |
| Increase/(Decrease)      from Changes in:                  |   |                              |     |   |   |   |   |   |
| Accounts      Receivable                                   |   |                              | (401,866 | ) |   |   | 58,502 |   |
| Inventories                                                |   |                              | 103,166  |   |   |   | 872,672 |   |
| Income      Taxes Receivable                               |   |                              | 359,153  |   |   |   | - |   |
| Prepaid      Expenses                                      |   |                              | (23,333  | ) |   |   | (119,497 | ) |
| Other      Assets                                          |   |                              | 26,129   |   |   |   | (42,286 | ) |
| Accounts      Payable                                      |   |                              | 154,844  |   |   |   | 165,032 |   |
| Accrued      Expenses                                      |   |                              | 265,594  |   |   |   | (588,689 | ) |
| Net      Cash Provided by / (Used in) Operating Activities |   |                              | 63,996   |   |   |   | (955,859 | ) |
| Cash      Flows From Investing Activities:                 |   |                              |     |   |   |   |   |   |
| Capital      Expenditures                                  |   |                              | (2,969   | ) |   |   | (11,232 | ) |
| Net      Cash Paid for Acquisitions                        |   |                              | (23,032  | ) |   |   | - |   |
| Proceeds      from Property Dispositions                   |   |                              | 7,650    |   |   |   | 10,350 |   |
| Net      Cash Used in Investing Activities                 |   |                              | (18,351  | ) |   |   | (882 | ) |
| Cash      Flows From Financing Activities:                 |   |                              |     |   |   |   |   |   |
| Long-term      Debt Payments                               |   |                              | (30,000  | ) |   |   | (30,000 | ) |
| Change      in Checks Issued but Not Yet Presented         |   |                              | 86,681   |   |   |   | 58,362 |   |
| Net      Borrowings under Line-of-Credit Agreement         |   |                              | 25,000   |   |   |   | 935,000 |   |
| Issuance      of Stock for Directors' Trust                |   |                              | 20,250   |   |   |   | 20,250 |   |
| Proceeds      from Directors' Trust Stock Purchase         |   |                              | 7,920    |   |   |   | - |   |
| Net      Cash Provided by Financing Activities             |   |                              | 109,851  |   |   |   | 983,612 |   |
| Net      Increase in Cash and Cash Equivalents             |   |                              | 155,496  |   |   |   | 26,871 |   |
| Cash      and Cash Equivalents at Beginning of Year        |   |                              | 156,171  |   |   |   | 16,499 |   |
| Cash      and Cash Equivalents at End of Period            |   | $                                 | 311,667  |   |   | $ | 43,370 |   |
| Supplemental      Disclosures of Cash Flow Information:    |   |                              |     |   |   |   |   |   |
| Cash      Paid for:                                        |   |                              |     |   |   |   |   |   |
| Interest                                                   |   | $                                 | 53,165   |   |   | $ | 33,582 |   |
| Income      Taxes                                          |   | $                                 | -        |   |   | $ | - |   |
| Increase      in Acquisition Cost/Goodwill                 |   | $                                 | 2,000    |   |   | $ | 3,000 |   |
| Working      Capital, other than Cash                      |   |                              | 21,032   |   |   |   | (3,000 | ) |
| Net      Cash Paid for Acquisition/Goodwill                |   | $                                 | 23,032   |   |   | $ | - |   |

----

| NOTE      1. | In      the opinion of management, the accompanying unaudited financial statements      contain all adjustments necessary to present fairly the Company’s      financial position as of April 3, 2010, the changes therein for the      thirteen week period then ended and the results of operations for the      thirteen week periods ended April 3, 2010 and April 4,    2009. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE      2. | The      financial statements included in the Form 10-Q are presented in accordance      with the requirements of the Form and do not include all of the      disclosures required by accounting principles generally accepted in the      United States of America.  For additional information, reference      is made to the Company’s annual report on Form 10-K for the year ended      January 2, 2010. The results of operations for the thirteen week periods      ended April 3, 2010 and April 4, 2009 are not necessarily indicative of      operating results for the fullyear. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE      3. | INVENTORIES |
|--------------|-------------|

|   | Inventories      at April 3, 2010 and January 2, 2010 consisted of the      following: |
|--------|----------------------------------------------------------------------------------------|

|                                             |   | April      3, 2010 |      |   | January      2, 2010 |   |
|--------------------------------------------------|--------|--------------------|-----------|--------|----------------------|--------|
|  Raw Material      and Supplies   |   | $                  | 1,371,914 |   |                 | $      | 1,653,893 |   |
|  In Process and      Finished Goods         |   |               | 632,071   |   |                 |   | 453,258 |   |
|  Total      Inventory             |   | $                  | 2,003,985 |   |                 | $      | 2,107,151 |   |

| NOTE      4. | EARNINGS PER      SHARE |
|--------------|-------------------------|

|   | Basic earnings per share is computed by dividing net income by the      weighted-average number of shares outstanding.  Diluted earnings      per share includes the dilutive effect of stock options.  No      dilution is shown for the thirteen week periods ended April 3, 2010 and      April 4, 2009, since the effect of the stock options on the net loss is      antidilutive.  In accordance with ASC Topic 260 “Earnings per      Share” (formerly SFAS No. 128), the following is a reconciliation of the      numerators and denominators of the basic and diluted EPS      computations: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | For      the Thirteen Weeks Ended |
|---------------------------------------------------------------|--------|-----------------------------------|
|                                                          |   | April      3, 2010                |   |   |  April      4, 2009 |   |
| Numerator:                                                    |   |                              |   |   |   |   |
|  Net loss                                                |   | $                            | (343,521 | ) |   | $  | (1,290,929 | ) |
| Denominator:                                                  |   |                              |   |   |   |   |   |   |
| Weighted-average      number ofcommon      shares outstanding |   |                              | 3,100,184 |   |   |   | 2,953,560 |   |
|  Dilutive      effect of                                 |   |                              |   |   |   |   |   |   |
| stock      options on net income                              |   |                              | 0 |   |   |   | 0 |   |
|                                                          |   |                              | 3,100,184 |   |   |   | 2,953,560 |   |
| Diluted earnings per      share:                              |   | $                            | (0.11 | ) |   | $  | (0.44 | ) |

| NOTE      5. | SUBSEQUENT      EVENT |
|--------------|-----------------------|

|   | On      April 20, 2010 the Company entered into a loan agreement with Crestmark      Bank (Crestmark). The agreement will provide up to $2,000,000 of borrowing      availability to be repaid on a demand basis and will be secured by the      Company’s accounts receivable and inventory and their products and      proceeds. Crestmark will advance up to 85% of the eligible accounts      receivable. The term of the agreement is two years.  The      available funds will be used for working capital requirements of the      Company. The Company does not expect to immediately borrow against this      facility.  The interest rate on borrowed funds will be prime      plus 3.50%, but will not be lower than 6.75%. Fees include a one percent      commitment fee, payable monthly, and a maintenance fee equal to the      greater of .4% of the average monthly loan balance or $2,500. The Company      will also be responsible for other fees associated with the      facility.  The Company must maintain a tangible net worth of not      less than $5,000,000 and its working capital ratio, excluding its debt to      Wachovia Bank, must not be less than1.20:1. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Cautionary      Statement: The Company's Reports on Form 10-K and Form 10-Q, its      Current Reports on Form 8-K, and any other written or oral statements made      by or on behalf of the Company contain or may contain statements relating      to future events, including results of operations, that are considered      "forward-looking statements" within the meaning of the Private Securities      Litigation Reform Act of 1995. Forward-looking statements represent the      Company's expectations or belief as to future events and, by their very      nature, are subject to risks and uncertainties which may result in actual      events differing materially from those anticipated. In particular, future      operating results will be affected by the level of demand for recreational      vehicles, manufactured housing and hotel/motel accommodations, the general      economic conditions, the Company’s ability to retain or replace its      line-of-credit, interest rate fluctuations, the availability of consumer      credit, availability of floor-plan credit for recreational vehicle and      manufactured housing retail dealers, availability of financing for      manufacturers, fuel prices, competitive products and pricing pressures      within the Company's markets, the Company's ability to contain its      manufacturing costs and expenses, and other factors. Any forward-looking      statements by the Company speak only as of the date made, and the Company      undertakes no obligation to update or revise such statements to reflect      events or circumstances after such date or to reflect the occurrence of      unanticipated events. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| FINANCIAL      CONDITION |
|--------------------------|

|                              |   | April      3, 2010 |     |   | January      2, 2010 |   |
|-----------------------------------|--------|--------------------|----------|--------|----------------------|--------|
| Current      Ratio                |   | 0.89:1             |     |   | 0.96:1               |   |
| Quick      Ratio                  |   | 0.54:1             |     |   | 0.56:1               |   |
| Funded      Debt to Total Capital |   |               | 28.3     | %      |                 |   | 27.7 | % |
| Working      Capital              |   | $                  | (615,307 | )      |                 | $      | (192,595 | ) |

----

| ITEM      2.  MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.      (CONTINUED) |
|--------------------------------------------------------------------------------------------------------------------------------------------|

| 1)   | Sell      the real estate pledged to Wachovia and reduce or pay-off the      balance; |
|----------------|---------------------------------------------------------------------------------------|

| 2)   | Complete      additional Sale/Leaseback transactions on  real-estate; |
|----------------|-----------------------------------------------------------------------|

| 3)   | Find      an alternative lender(s) to replace Wachovia as its real-estate      lender; |
|----------------|----------------------------------------------------------------------------------------|

| 4)   | Negotiate      with Wachovia to extend the terms of theloan. |
|----------------|--------------------------------------------------------------|

----

| SALES BY      MARKET |
|----------------------|

|                      |   | For      the Thirteen Weeks Ended |   |
|---------------------------|--------|-----------------------------------|--------|
|                      |   | April      3, 2010                |   |   | April      4, 2009 |   |
|                      |   | Net                               |   |   | %      of |   |   | Net |   |   | %      of |   |
|                      |   | Sales                             |   |   | total |   |   | Sales |   |   | total |   |
| Recreational      Vehicle |   | $                                 | 1,283  |   |   |   | 32 | % |   | $ | 853 |   |   |   | 17 | % |
| Manufactured      Housing |   |                              | 1,074  |   |   |   | 27 | % |   |   | 1,300 |   |   |   | 25 | % |
| Hospitality               |   |                              | 1,664  |   |   |   | 41 | % |   |   | 2,953 |   |   |   | 58 | % |
| Total      Net Sales      |   |                              | 4,021  |   |   |   | 100 | % |   | $ | 5,106 |   |   |   | 100 | % |

| RESULTS OF      OPERATIONS |
|----------------------------|

| Thirteen Week Period      Ended April 3, 2010, (First Quarter 2010) compared    to |
|------------------------------------------------------------------------------------|

| Thirteen Week Period      Ended April 4, 2009, (First Quarter2009) |
|--------------------------------------------------------------------|

|                                     |   | First      Quarter |      |   | %             |   |   | First      Quarter |   |   | %             |   |   | $      Increase |   |   |          |   |
|------------------------------------------|--------|--------------------|-----------|--------|---------------|--------|--------|--------------------|--------|--------|---------------|--------|--------|-----------------|--------|--------|---------------|--------|
|                                     |   | 2010               |      |   | of      Sales |   |   | 2009               |   |   | of      Sales |   |   | (Decrease)      |   |   | %      Change |   |
| Net      Sales                           |   | $                  | 4,020,627 |   |          |   | 100    | %                  |   | $      | 5,105,638     |   |   |            | 100    | %      |          | $      | (1,085,011 | ) |   |   | -21.3 | % |
| Cost      of Products Sold               |   |               | 3,248,495 |   |          |   | 80.8   | %                  |   |   | 4,386,843     |   |   |            | 85.9   | %      |          |   | (1,138,348 | ) |   |   | -25.9 | % |
| Gross      Profit                        |   |               | 772,132   |   |          |   | 19.2   | %                  |   |   | 718,795       |   |   |            | 14.1   | %      |          |   | 53,337 |   |   |   | 7.4 | % |
| Selling      and Administrative Expenses |   |               | 1,279,169 |   |          |   | 31.8   | %                  |   |   | 2,488,990     |   |   |            | 48.8   | %      |          |   | (1,209,821 | ) |   |   | 48.6 | % |
| Operating      Loss                      |   |               | (507,037  | )      |          |   | -12.6  | %                  |   |   | (1,770,195    | )      |   |            | -34.7  | %      |          |   | 1,263,158 |   |   |   | -71.4 | % |
| Other      Income (Expense)              |   |               |      |   |          |   |   |               |   |   |          |   |   |            |   |   |          |   |   |   |   |   |   |   |
| Interest,      Investment and            |   |               |      |   |          |   |   |               |   |   |          |   |   |            |   |   |          |   |   |   |   |   |   |   |
| Other      Income                        |   |               | 9,248     |   |          |   | 0.2    | %                  |   |   | 3,631         |   |   |            | 0.1    | %      |          |   | 5,617 |   |   |   | 154.7 | % |
| Interest      Expense                    |   |               | (53,732   | )      |          |   | -1.3   | %                  |   |   | (36,365       | )      |   |            | -0.7   | %      |          |   | (17,367 | ) |   |   | 47.8 | % |
| Loss      Before Income Taxes            |   |               | (551,521  | )      |          |   | -13.7  | %                  |   |   | (1,802,929    | )      |   |            | -35.3  | %      |          |   | 1,251,408 |   |   |   | -69.4 | % |
| Provision      for Income Taxes          |   |  --           | (208,000) |   |          |   | -5.2   | %                  |   |   | (512,000      | )      |   |            | -10.0  | %      |          |   | 304,000 |   |   |   | -59.4 | % |
| Net      Loss                            |   |               | (343,521  | )      |          |   | -8.5   | %                  |   | $      | (1,290,929    | )      |   |            | -25.3  | %      |          | $      | 947,408 |   |   |   | -73.4 | % |

----

----

|                                          |   | For      the Thirteen Weeks Ended |     |
|-----------------------------------------------|--------|-----------------------------------|----------|
|                                          |   | April      3, 2010                |     |   | April      4, 2009 |   |
|  Net      Loss                           |   | $                                 | (343,521 | ) |   | $ | (1,290,929 | ) |
|  Add:                                    |   |                              |     |   |   |   |   |   |
|  Interest                                |   |                              | 53,732   |   |   |   | 36,365 |   |
|  Taxes                                   |   |                              | (208,000 | ) |   |   | (512,000 | ) |
|  Depreciation      & Amortization    |   |                              | 82,593   |   |   |   | 146,963 |   |
|  Loss      / (Gain) on Disposal          |   |                              | 14,816   |   |   |   | (7,017 | ) |
|  Noncash      charge for                 |   |                              |     |   |   |   |   |   |
|     Asset      Impairment |   |                              | -        |   |   |   | 335,500 |   |
|  EBITDA                                  |   | $                                 | (400,380 | ) |   | $ | (1,291,118 | ) |

| ITEM      4.  CONTROLS      ANDPROCEDURES. |
|------------------------------------------------------|

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| 10EE           | - | Loan agreement and      Promissory Note with Crestmark Bank |
|----------------|---|-------------------------------------------------------------|
|  31.1     | - | Certification      of Principal Executive Officer           |
|  31.2     | - | Certification      of Principal Financial Officer           |
|  32  | - | Certificate      required by 18 U.S.C. §1350.          |

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|                                   | DECORATOR      INDUSTRIES, INC(Registrant) |                                                           |
|----------------------------------------|--------------------------------------------|----------------------------------------------------------------|
|                                   |                                       |                                                           |   |
| Date:      May 17,    2010   | By:                                        | /s/   William A.      Johnson                   |   |
|                                   |                                       | William      A. Johnson, Chief Executive Officer and President |   |
|                                   |                                       |                                                           |   |
|                                   |                                       |                                                           |   |
| Date:      May 17, 2010                | By:                                        |  /s/   Michael K.      Solomon             |   |
|                                   |                                       | Michael      K. Solomon, Chief Financial Officer               |   |

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