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

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

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

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

**FRAWLEY      CORPORATION**

| 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) |

| _____________________________________________________________                                      |
|----------------------------------------------------------------------------------------------------|
| (FORMER                NAME, ADDRESS AND FISCAL YEAR, IF CHANGED SINCE LAST                REPORT) |

| Common                  stock, par value $1 | 1,222,905                                      |
|---------------------------------------------|------------------------------------------------|
| (Class)                                     | Outstanding                  at March 31, 2007 |

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|                                                                                                                                |   | PAGE                  NO. |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
| PART                  I: FINANCIAL INFORMATION                                                                                      |   |                      |   |   |
|                                                                                                                                |   |                      |   |   |
| Item                  1: Financial Statements                                                                                       |   |                      |   |   |
|                                                                                                                                     |   |                      |   |   |
| Consolidated                    Balance Sheets March                    31, 2007 and December 31, 2006                              |   |                      | 3      |   |
|                                                                                                                                     |   |                      |   |   |
| Consolidated                    Statements of Operations Three                    Months ended March 31, 2007 and 2006              |   |                      | 4      |   |
|                                                                                                                                     |   |                      |   |   |
| Consolidated                    Statements of Cash Flows Three                    Months Ended March 31, 2007 and 2006              |   |                      | 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                                                                           |   |                      | 9      |   |
|                                                                                                                                |   |                      |   |   |
| SIGNATURES                                                                                                                          |   |                      | 10     |   |

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**ITEM      I: FINANCIAL STATEMENTS**

**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                             |   | MARCH                31, |        | DECEMBER                31, |   |
|------------------------------------------------------------------|--------|--------------------------|-------------|-----------------------------|--------|
|                                                             |   | 2007                     |        | 2006                        |   |
|                                                             |   | (Unaudited)              |        |                        |   |
| **ASSETS**                                                       |   |
| CURRENT                ASSETS                                    |   |                     |        |                        |   |   |   |
| Cash                                                             |   | $                        | 18,000      |                        | $      | 7,000 |   |
| Accounts                receivable, net                          |   |                     | 4,000       |                        |   | 4,000 |   |
| Prepaid                expenses and other current assets         |   |                     | 1,000       |                        |   | 17,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| TOTAL                CURRENT ASSETS                              |   |                     | 23,000      |                        |   | 28,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| Real                estate investments, net                      |   |                     | 457,000     |                        |   | 457,000 |   |
| Investment                in partnership                         |   |                     | 16,000      |                        |   | 16,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| TOTAL                ASSETS                                      |   | $                        | 496,000     |                        | $      | 501,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**   |
|                                                             |   |                     |        |                        |   |   |   |
| CURRENT                LIABILITIES                               |   |                     |        |                        |   |   |   |
| Notes                payable to stockholders                     |   | $                        | 2,216,000   |                        | $      | 2,138,000 |   |
| Accounts                payable and accrued expenses             |   |                     | 139,000     |                        |   | 164,000 |   |
| Environmental                reserve                             |   |                     | 77,000      |                        |   | 77,000 |   |
| Interest                payable to related parties               |   |                     | 1,892,000   |                        |   | 1,840,000 |   |
| Deposits                                                         |   |                     | 378,000     |                        |   | 374,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| TOTAL                CURRENT LIABILITIES                         |   |                     | 4,702,000   |                        |   | 4,593,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| LONG                TERM LIABILITIES                             |   |                     |        |                        |   |   |   |
|                                                             |   |                     |        |                        |   |   |   |
| Environmental                reserve                             |   |                     | 1,120,000   |                        |   | 1,120,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| TOTAL                LIABILITIES                                 |   |                     | 5,822,000   |                        |   | 5,713,000 |   |
|                                                             |   |                     |        |                        |   |   |   |
| 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                               |   |                     | (23,188,000 | )                           |   | (23,074,000 | ) |
|                                                             |   |                     |        |                        |   |   |   |
|                                                             |   |                     | (4,565,000  | )                           |   | (4,451,000 | ) |
| Less                common stock in treasury,                    |   |                     |             |                        |   |  |   |
| 191,312                shares (at cost)                          |   |                     | (761,000    | )                           |   | (761,000 | ) |
|                                                             |   |                     |        |                        |   |   |   |
| TOTAL                STOCKHOLDERS’ DEFICIT                 |   |                     | (5,326,000  | )                           |   | (5,212,000 | ) |
|                                                             |   |                     |        |                        |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT |   | $                        | 496,000     |                        | $      | 501,000 |   |

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|                                               |   | Three                Months EndedMARCH                31, |      |
|----------------------------------------------------|--------|-----------------------------------------------------------|-----------|
|                                               |   | 2007                                                      |      | 2006 |   |
|                                               |   |                                                      |      |   |   |
| REVENUES:                                          |   |                                                      |      |   |   |   |   |
| Sale                of real estate                 |   | $                                                         | -         |   | $ | 749,000 |   |
|                                               |   |                                                      |      |   |   |   |   |
| COSTS                AND EXPENSES:                 |   |                                                      |      |   |   |   |   |
| Cost                of real estate sold            |   |                                                      | -         |   |   | 441,000 |   |
| Selling,                general and administrative |   |                                                      |      |   |   |   |   |
| expenses                                           |   |                                                      | 62,000    |   |   | 40,000 |   |
| Interest                expense                    |   |                                                      | 52,000    |   |   | 59,000 |   |
|                                               |   |                                                      |      |   |   |   |   |
| TOTAL                COSTS AND EXPENSES            |   |                                                      | 114,000   |   |   | 540,000 |   |
|                                               |   |                                                      |      |   |   |   |   |
| NET                (LOSS)/INCOME                   |   | $                                                         | (114,000  | ) | $ | 209,000 |   |
|                                               |   |                                                      |      |   |   |   |   |
| NET                (LOSS)/INCOME PER SHARE, COMMON |   | $                                                         | (0.09     | ) | $ | 0.17 |   |
|                                               |   |                                                      |      |   |   |   |   |
| FULLY                DILUTED                       |   | $                                                         | (0.09     | ) | $ | 0.17 |   |
|                                               |   |                                                      |      |   |   |   |   |
| Weighted                average number of          |   |                                                      |      |   |   |   |   |
| Common                shares outstanding           |   |                                                      | 1,222,900 |   |   | 1,222,900 |   |

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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                                                                            |   | Three                Months Ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|
|                                                                                                                                            |   | March                31,          |     |
|                                                                                                                                            |   | 2007                              |     | 2006 |   |
|                                                                                                                                            |   |                              |     |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                            |   |                              |     |   |   |   |   |
| Net                (loss)/income                                                                                                                |   | $                                 | (114,000 | ) | $ | 209,000 |   |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| Adjustments                to reconcile net (loss)/income to                net cash (used in)/provided by operating                activities: |   |                              |     |   |   |   |   |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| Changes                in operating assets and liabilities:                                                                                     |   |                              |     |   |   |   |   |
| Short                and long-term accounts receivable, net                                                                                     |   |                              | -        |   |   | (4,000 | ) |
| Prepaid                expenses and other current assets                                                                                        |   |                              | 16,000   |   |   | 23,000 |   |
| Real                estate investments                                                                                                          |   |                              | -        |   |   | 441,000 |   |
| Accounts                payable and accrued liabilities                                                                                         |   |                              | 31,000   |   |   | (95,000 | ) |
| Environmental                reserve                                                                                                            |   |                              | -        |   |   | (150,000 | ) |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| TOTAL                ADJUSTMENTS                                                                                                                |   |                              | 47,000   |   |   | 215,000 |   |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| NET                CASH (USED IN)/PROVIDED BY OPERATING                                                                                         |   |                              |     |   |   |   |   |
| ACTIVITIES                                                                                                                                      |   |                              | (67,000  | ) |   | 424,000 |   |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                            |   |                              |     |   |   |   |   |
| Improvements                to real estate                                                                                                      |   |                              | -        |   |   | (86,000 | ) |
| NET                CASH USED IN INVESTING ACTIVITIES                                                                                            |   |                              | -        |   |   | (86,000 | ) |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                            |   |                              |     |   |   |   |   |
| Short-term                debt borrowings from related party                                                                                    |   |                              | 78,000   |   |   | 86,000 |   |
| Repayment                of borrowings                                                                                                          |   |                              | -        |   |   | (369,000 | ) |
| NET                CASH PROVIDED BY/(USED IN) FINANCING                                                                                         |   |                              |     |   |   |   |   |
| ACTIVITIES                                                                                                                                      |   |                              | 78,000   |   |   | (283,000 | ) |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| NET                CHANGE IN CASH AND CASH EQUIVALENTS                                                                                          |   |                              | 11,000   |   |   | 55,000 |   |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| CASH,                BEGINNING OF PERIOD                                                                                                        |   |                              | 7,000    |   |   | 7,000 |   |
|                                                                                                                                            |   |                              |     |   |   |   |   |
| CASH,                END OF PERIOD                                                                                                              |   | $                                 | 18,000   |   | $ | 62,000 |   |

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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 as of March 31, 2007, and 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, 2007 as                compared to the results of 2006 are not necessarily indicative of                results                to be expected for the full year. |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

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

**Real      Estate**

**Liquidity      and Capital Resources**

|   |   |   |
|--------|--------|--------|

|   |   | The                Company’s recurring losses from continuing operations and difficulties in                generating cash flow sufficient to meet its obligations raise substantial                doubt about its ability to continue as a going                concern. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|

|   |   | Real                Estate and Corporate overhead are producing losses that the real-estate                business is unable to absorb. The required investments in real estate                are                currently funded from loans. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The                Company continues to incur legal expenses and has an obligation in                2007 to                contribute to the Chatham Brothers toxic waste cleanup lawsuit, as                well as                an obligation in 2007 for the Omega Chemical Superfund Site. At this                time,                the Company is unsure if it will have the funds to satisfy these                obligations when they become due. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**PART          II - OTHER INFORMATION**

|   |   | On                December 31, 1991, the Company and approximately 90 other companies                were                named in a formal complaint. The Company joined a group of defendants,                each of whom was so notified and which is referred to as Potentially                Responsible Parties (PRPs) for the purpose of negotiating with the                DTSC                and for undertaking remediation of the site. Between 1995 and 1998,                the                State of California adjusted the estimated cost of remediation on                several                occasions. As a result, the Company has increased their recorded                liability                to reflect their share. In January, 1999, the PRP’s consent decree was                approved by the Court. As of March 31, 2007 the Company had paid                into the                PRP Group approximately $1,040,000, which includes the assignment                of a                $250,000 note receivable with recourse. In addition, the Company                has                accrued short-term and long-term undiscounted liabilities of $77,000                and                $1,120,000 respectively, to cover future costs under the remediation                plan. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|
|   |   | During                the past several years, the Company has requested a Hardship Withdrawal                Settlement with the PRP group due to the Company’s financial condition.                The PRP group has continually denied the Company’s request. In December                2003, the Company again formally requested a Hardship Withdrawal                Settlement with the PRP Group. The Company’s proposal was for payment of                $240,000 over four years in exchange for complete release from all                further                legal and financial responsibility related to the environmental                liability. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | On                July 16, 2004, the Company entered in a settlement agreement with                the                Chatham Site PRP Group Trust for a $240,000 payment to be paid as                follows:                $100,000 on December 31, 2004, $50,000 on December 31, 2005, $50,000                on                December 31, 2006 and $40,000 on December 31, 2007. The Company will                not                be fully released from the environmental liability until the settlement                agreement note of $240,000 and the assigned note in the amount of                $250,000                are paid in full. In 2006, the PRP Group received a principal payment                related to the assigned note of $50,000 and interest accrued of $8,000,                compared to a $50,000 principal payment and $12,000 of accrued interest                in                2005. In March 2006, the Company made a payment in the amount of                $150,000                related to the settlement agreement note representing the payments                due on                December 31, 2004 and December 31, 2005. The Company did not make                the                scheduled payment on December 31, 2006. The Company owes penalties                on late                payments totaling approximately $20,000 calculated at 10% of the                face                value of the note payments for the years 2004, 2005 and 2006. These                penalties are recognized in interest expense and the liability is                accrued                as a portion of the current environmental                reserve. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | If                Frawley Corporation complies with the terms of the notes, the Company                will                not be responsible for any additional payments to the Chatham Site                PRP                Group for the financing of the remediation action plan approved by                the                State of California in 1999. However, the PRP Group refused to indemnify                Frawley Corporation for any third party lawsuit related to the Chatham                Site Clean up Site that are not considered in the remediation action                plan                approved in 1999. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | In                June 2004 the Corporation received a new environmental claim against                its                former Harley pen division in the amount of approximately $99,000.                The                claim has been made by the United States Environmental Toxic Agency                concerning the Company’s alleged responsibility for the Omega Chemical                Superfund Site. The Company has recorded the liability in the year                ended                December 31, 2004. During 2006, the Company agreed to pay the liability                in                installment payments through October 2007. The Company made payments                of                approximately $52,000 during 2006 and $12,000 during the first quarter                of                2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM              5: |  Other                Information |
|----------------------|----------------------------------------|

|   |   | During                the first quarter ended March 31, 2007 the Company borrowed approximately                $78,000 from the Frawley Family Trust. These loans are secured by                Deeds of                trust on the Company’s real estate property. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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**SIGNATURES**

|                            |                                       |                                |
|---------------------------------|--------------------------------------------|-------------------------------------|
|                            | FRAWLEY                CORPORATION         |
|                            | (REGISTRANT)                               |
|                       |                                  |                           |
| Date:              May 14, 2007 | By:                              | /s/              Michael P. Frawley |
|                            | MICHAEL              P. FRAWLEY, President |
|                            | (Authorized                Officer and     |
|                            | Chief                Financial Officer)    |

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