**U.S.      SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**FRAWLEY      CORPORATION **

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| Delaware                                                      | 95-2639686                          |
|---------------------------------------------------------------|-------------------------------------|
| (STATE                OR OTHER JURISDICTION OF INCORPORATION) | (I.R.S.                EMP I.D. NO) |

| 5737                Kanan Rd. PMB # 188, Agoura Hills, California | 91301                     |
|-------------------------------------------------------------------|---------------------------|
| (ADDRESS                OF PRINCIPAL EXECUTIVE OFFICES)           | (ZIP                CODE) |

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| Common                stock, par value $1 |   | 1,222,905                                    |
|-------------------------------------------|--------|----------------------------------------------|
| (Class)                                   |   | Outstanding                at March 31, 2006 |

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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**INDEX**

| PART                I: FINANCIAL INFORMATION | PAGE                NO.                                         |
|----------------------------------------------|-----------------------------------------------------------------|
|                                         |                                                            |   |
|                                         | Item                1: Financial Statements                     |   |
|                                         |                                                            |   |
|                                         | Consolidated                Balance Sheets                      |   |
|                                         | March                31, 2006 and December 31, 2005             | 3 |
|                                         |                                                            |   |
|                                         | Consolidated                Statements of Operations            |   |
|                                         | Three                Months Ended March 31, 2006 and 2005       | 4 |
|                                         |                                                            |   |
|                                         | Consolidated                Statements of Cash Flows            |   |
|                                         | Three                Months Ended March 31, 2006 and 2005       | 5 |
|                                         |                                                            |   |
|                                         | Notes                to Consolidated Financial Statements       | 6 |
|                                         |                                                            |   |
|                                         | Item                2: Management's Discussion and Analysis     |   |
|                                         | of                Financial Condition and Results of Operations | 7 |
|                                         |                                                            |   |
| PART                II: OTHER INFORMATION    |                                                            |
|                                         |                                                            |   |
|                                         | Item                1: Legal Proceedings                        | 8-9 |
|                                         |                                                            |   |
|                                         | Item                5: Other Information                        | 9 |
|                                         |                                                            |   |
|                                         | Item                6: Exhibits and Reports on Form 8-K         | 10 |
|                                         |                                                            |   |
| SIGNATURES                                   | 11                                                              |

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**ITEM      I: FINANCIAL STATEMENTS**

**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                          |   |   | MARCH                31, |   |   | DECEMBER                31, |   |
|--------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                                                                          |   |   | 2006                     |   |   | 2005                        |   |
|                                                                     |   |   | (Unaudited)              |   |   |                        |   |
| **ASSETS**                                                               |
| CURRENT                ASSETS                                            |   |   |                     |   |   |                        |   |
| Cash                                                                     |   | $      | 62,000                   |   | $      | 7,000                       |   |
| Accounts                receivable, net                                  |   |   | 4,000                    |   |   | -                           |   |
| Prepaid                expenses and other current assets                 |   |   | 1,000                    |   |   | 24,000                      |   |
|                                                                     |   |   |                     |   |   |                        |   |
| TOTAL                CURRENT ASSETS                                      |   |   | 67,000                   |   |   | 31,000                      |   |
|                                                                     |   |   |                     |   |   |                        |   |
| Real                estate investments, net                              |   |   | 457,000                  |   |   | 812,000                     |   |
| Investment                in partnership                                 |   |   | 16,000                   |   |   | 16,000                      |   |
|                                                                     |   |   |                     |   |   |                        |   |
| TOTAL                ASSETS                                              |   | $      | 540,000                  |   | $      | 859,000                     |   |
|                                                                     |   |   |                     |   |   |                        |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**           |
| CURRENT                LIABILITIES                                       |   |   |                     |   |   |                        |   |
| Notes                payable to stockholders                             |   | $      | 2,054,000                |   | $      | 2,338,000                   |   |
| Accounts                payable and accrued expenses                     |   |   | 148,000                  |   |   | 287,000                     |   |
| Environmental                reserve                                     |   |   | 115,000                  |   |   | 115,000                     |   |
| Interest                payable to related parties                       |   |   | 1,685,000                |   |   | 1,651,000                   |   |
| Deposits                                                                 |   |   | 385,000                  |   |   | 374,000                     |   |
|                                                                     |   |   |                     |   |   |                        |   |
| TOTAL                CURRENT LIABILITIES                                 |   |   | 4,387,000                |   |   | 4,765,000                   |   |
|                                                                     |   |   |                     |   |   |                        |   |
| LONG                TERM LIABILITIES                                     |   |   |                     |   |   |                        |   |
|                                                                     |   |   |                     |   |   |                        |   |
| Environmental                reserve                                     |   |   | 1,070,000                |   |   | 1,220,000                   |   |
|                                                                     |   |   |                     |   |   |                        |   |
| TOTAL                LIABILITIES                                         |   |   | 5,457,000                |   |   | 5,985,000                   |   |
|                                                                     |   |   |                     |   |   |                        |   |
| STOCKHOLDERS’                DEFICIT:                              |   |   |                     |   |   |                        |   |
| Preferred                stock, par value $1 per share:                  |   |   |                     |   |   |                        |   |
| Authorized,                1,000,000 shares; none issued                 |   |   |                          |   |   |                             |   |
| Common                stock, par value $1 per share;                     |   |   |                     |   |   |                        |   |
| Authorized,                6,000,000 shares, issued                      |   |   |                     |   |   |                        |   |
| 1,414,217                shares                                          |   |   | 1,414,000                |   |   | 1,414,000                   |   |
| Capital                surplus                                           |   |   | 17,209,000               |   |   | 17,209,000                  |   |
| Accumulated                deficit                                       |   |   | (22,779,000              | )      |   | (22,988,000                 | )      |
|                                                                     |   |   | (4,156,000               | )      |   | (4,365,000                  | )      |
| Less                  common stock in treasury, 191,312 shares (at cost) |   |   | (761,000                 | )      |   | (761,000                    | )      |
|                                                                     |   |   |                     |   |   |                        |   |
| TOTAL                STOCKHOLDERS’ DEFICIT                         |   |   | (4,917,000               | )      |   | (5,126,000                  | )      |
|                                                                     |   |   |                     |   |   |                        |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT         |   | $      | 540,000                  |   | $      | 859,000                     |   |

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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                       |   |  Three                Months EndedMARCH                31 |      |
|-----------------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|
|                                                                       |   |                                                           | 2006      |   |   | 2005 |   |
|                                                                  |   |                                                           |      |   |   |   |   |
| REVENUES:                                                             |   |                                                           |      |   |   |   |   |
| Net                revenue                                            |   | $                                                              | 749,000   |   | $ | 4,000 |   |
|                                                                  |   |                                                           |      |   |   |   |   |
| TOTAL                REVENUE                                          |   | $                                                              | 749,000   |   | $ | 4,000 |   |
|                                                                  |   |                                                           |      |   |   |   |   |
| COSTS                AND EXPENSES:                                    |   |                                                           |      |   |   |   |   |
| Cost                of real estate sold                               |   |                                                           | 355,000   |   |   | - |   |
| Selling,                  general and administrative expenses         |   |                                                           | 126,000   |   |   | 66,000 |   |
| Interest                expense                                       |   |                                                           | 59,000    |   |   | 54,000 |   |
|                                                                  |   |                                                           |      |   |   |   |   |
| TOTAL                COSTS AND EXPENSES                               |   |                                                           | 540,000   |   |   | 120,000 |   |
|                                                                  |   |                                                           |      |   |   |   |   |
| NET                INCOME/(LOSS)                                      |   | $                                                              | 209,000   |   | $ | (116,000 | ) |
|                                                                  |   |                                                           |      |   |   |   |   |
| NET                INCOME/(LOSS) PER SHARE, COMMON                    |   | $                                                              | 0.17      |   | $ | (0.09 | ) |
|                                                                  |   |                                                           |      |   |   |   |   |
| FULLY                DILUTED                                          |   | $                                                              | 0.17      |   | $ | (0.09 | ) |
|                                                                  |   |                                                           |      |   |   |   |   |
| Weighted                  average number of Common shares outstanding |   |                                                           | 1,222,905 |   |   | 1,222,905 |   |

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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                                                                                       |   |  Three                Months EndedMarch                31, |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|----------|
|                                                                                                                                                       |   |                                                            | 2006     |   |   | 2005 |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                  |   |                                                            |     |   |   |   |   |
| Net                income/(loss)                                                                                                                      |   | $                                                               | 209,000  |   | $ | (116,000 | ) |
| Adjustments                  to reconcile net income/(loss) to net cash provided by/(used in)                  operating                  activities: |   |                                                            |     |   |   |   |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| Changes                in operating assets and liabilities:                                                                                           |   |                                                            |     |   |   |   |   |
| Short                  and long-term accounts receivable, net                                                                                         |   |                                                            | (4,000   | ) |   | (4,000 | ) |
| Prepaid                expenses and other current assets                                                                                              |   |                                                            | 23,000   |   |   | 28,000 |   |
| Real                estate investments                                                                                                                |   |                                                            | 355,000  |   |   | - |   |
| Accounts                payable and accrued expenses                                                                                                  |   |                                                            | (95,000  | ) |   | 47,000 |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| TOTAL                ADJUSTMENTS                                                                                                                      |   |                                                            | 279,000  |   |   | 71,000 |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| NET                  CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES                                                                                  |   |                                                            | 488,000  |   |   | (45,000 | ) |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                                  |   |                                                            |     |   |   |   |   |
|                                                                                                                                                  |   |                                                            |          |   |   |   |   |
| Short-term                  debt borrowings from related party                                                                                        |   |                                                            | 86,000   |   |   | 44,000 |   |
| Repayment                of borrowings                                                                                                                |   |                                                            | (369,000 | ) |   | - |   |
| Repayment                of environmental reserve                                                                                                     |   |                                                            | (150,000 | ) |   | - |   |
| Capital                contributions                                                                                                                  |   |                                                            | -        |   |   | 1,000 |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| NET                  CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES                                                                                  |   |                                                            | (433,000 | ) |   | 45,000 |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| NET                CHANGE IN CASH AND CASH EQUIVALENTS                                                                                                |   |                                                            | 55,000   |   |   | - |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| CASH,                BEGINNING OF PERIOD                                                                                                              |   |                                                            | 7,000    |   |   | 4,000 |   |
|                                                                                                                                                  |   |                                                            |     |   |   |   |   |
| CASH,                END OF PERIOD                                                                                                                    |   | $                                                               | 62,000   |   | $ | 4,000 |   |

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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

| NOTE              1: | In                the opinion of management, the accompanying unaudited consolidated                financial statements contain all adjustments necessary to present                fairly                the financial position at March 31, 2006, the results of operations                and                changes in cash flows for the three months then                ended. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE              2: | The                results of operations for the three months ended March 31, 2006 as                compared to the results of 2005 are not necessarily indicative of                results                to be expected for the full year. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM                2: | MANAGEMENT'S                  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION                  AND RESULTS OF OPERATIONS |
|------------------------|-------------------------------------------------------------------------------------------------------------------------|

**Real      Estate**

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**Liquidity      and Capital Resources**

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**ITEM      1:**
**Legal      Proceedings**

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**ITEM          5: **
**Other          Information**

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**ITEM      6: **
**Exhibits      and Reports on Form 8-K**

|  | Exhibit              31.1, | Sarbanes-Oxley                Act Section 302 Certification |
|--|----------------------------|-------------------------------------------------------------|

|  | Exhibit              32.1, | Certification                of CEO and CFO |
|--|----------------------------|---------------------------------------------|

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**SIGNATURES**

|                                  |                                                                             |                                     |
|---------------------------------------|----------------------------------------------------------------------------------|------------------------------------------|
|                                  |                                                                             |
|                             |                                                                        |                                |
| Date: June              13, 2006 | By:                                                                    | /s/ Michael              P. Frawley |
|                                  | Michael              P. Frawley                                                  |
|                                  | (Authorized              Officer and CEO and              Chairman of the Board) |

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