**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 |   | 1,222,900                                    |
|-------------------------------------------|--------|----------------------------------------------|
| (Class)                                   |   | Outstanding                at March 31, 2008 |

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| PART                I:  | FINANCIAL                INFORMATION                            | PAGE NO. |
|-------------------------|-----------------------------------------------------------------|---------------|
|                    |                                                            |          |
|                    | Item                1: Financial Statements                     |          |
|                    |                                                            |          |
|                    | Consolidated                Balance Sheets                      |          |
|                    | March                31, 2008 and December 31, 2007             | 3             |
|                    |                                                            |          |
|                    | Consolidated                Statements of Operations            |          |
|                    | Three                Months Ended March 31, 2008 and 2007       | 4             |
|                    |                                                            |          |
|                    | Consolidated                Statements of Cash Flows            |          |
|                    | Nine                Months Ended March 31, 2008 and 2007        | 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, |   |
|------------------------------------------------------------------|--------|----------------|-------------|-------------------|--------|
|                                                             |   | 2008           |        | 2007         |   |
|                                                             |   | (Unaudited)    |        |              |   |
| **ASSETS**                                                       |   |           |        |              |   |   |   |
| CURRENT                ASSETS                                    |   |           |             |              |   |   |   |
| Cash                                                             |   | $              | 4,000       |              | $      | 14,000 |   |
| Accounts                receivable, net                          |   |           | 4,000       |              |   | 4,000 |   |
| Prepaid                expenses and other current assets         |   |           | 5,000       |              |   | 18,000 |   |
|                                                             |   |           |        |              |   |   |   |
| TOTAL                CURRENT ASSETS                              |   |           | 13,000      |              |   | 36,000 |   |
|                                                             |   |           |        |              |   |   |   |
| Real                estate investments, net                      |   |           | 457,000     |              |   | 457,000 |   |
| Investment                in partnership                         |   |           | 16,000      |              |   | 16,000 |   |
|                                                             |   |           |        |              |   |   |   |
| TOTAL                ASSETS                                      |   | $              | 486,000     |              | $      | 509,000 |   |
|                                                             |   |           |        |              |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**   |   |           |        |              |   |   |   |
|                                                             |   |           |        |              |   |   |   |
| CURRENT                LIABILITIES                               |   |           |        |              |   |   |   |
| Notes                payable to stockholders                     |   | $              | 2,397,000   |              | $      | 2,387,000 |   |
| Accounts                payable and accrued expenses             |   |           | 169,000     |              |   | 173,000 |   |
| Interest                payable to related parties               |   |           | 2,112,000   |              |   | 2,050,000 |   |
| Deposits                                                         |   |           | 374,000     |              |   | 374,000 |   |
|                                                             |   |           |        |              |   |   |   |
| TOTAL                CURRENT LIABILITIES                         |   |           | 5,052,000   |              |   | 4,984,000 |   |
|                                                             |   |           |        |              |   |   |   |
| LONG                TERM LIABILITIES                             |   |           |        |              |   |   |   |
| Long                term note payable                            |   |           | 160,000     |              |   | 160,000 |   |
|                                                             |   |           |        |              |   |   |   |
| TOTAL                LIABILITIES                                 |   |           | 5,212,000   |              |   | 5,144,000 |   |
|                                                             |   |           |        |              |   |   |   |
| 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                               |   |           | (22,588,000 | )                 |   | (22,497,000 | ) |
|                                                             |   |           |        |              |   |   |   |
|                                                             |   |           | (3,965,000  | )                 |   | (3,874,000 | ) |
| Less                common stock in treasury,                    |   |           |             |              |   |  |   |
| 191,312                shares (at cost)                          |   |           | (761,000    | )                 |   | (761,000 | ) |
|                                                             |   |           |        |              |   |   |   |
| TOTAL                STOCKHOLDERS’ DEFICIT                 |   |           | (4,726,000  | )                 |   | (4,635,000 | ) |
|                                                             |   |           |        |              |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT |   | $              | 486,000     |              | $      | 509,000 |   |

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|                                                                |   | Three Months EndedMARCH 31, |                    |
|---------------------------------------------------------------------|--------|--------------------------------------------|-------------------------|
|                                                                |   | 2008                                  |                    | 2007  |   |
|                                                                |   |                                       |                    |   |   |
| REVENUES:                                                           |   |                                       |                         |   |   |   |   |
| Other                income                                         |   | $                                          | -                       |   | $ | - |   |
|                                                                |   |                                       |                    |   |   |   |   |
|                                                                |   |                                       |                    |   |   |   |   |
| COSTS                AND EXPENSES:                                  |   |                                       |                    |   |   |   |   |
| Selling,                general and administrative expenses         |   |                                       | 29,000                  |   |   | 62,000 |   |
| Interest                expense                                     |   |                                       | 62,000                  |   |   | 52,000 |   |
|                                                                |   |                                       |                    |   |   |   |   |
| TOTAL                COSTS AND EXPENSES                             |   |                                       | 91,000                  |   |   | 114,000 |   |
|                                                                |   |                                       |                    |   |   |   |   |
| NET                LOSS                                             |   | $                                          | (                91,000 | ) | $ | (114,000 | ) |
|                                                                |   |                                       |                    |   |   |   |   |
| NET                LOSS PER SHARE, COMMON                           |   | $                                          | (0.07                   | ) | $ | (0.09 | ) |
|                                                                |   |                                       |                    |   |   |   |   |
| FULLY                DILUTED                                        |   | $                                          | (0.07                   | ) | $ | (0.09 | ) |
|                                                                |   |                                       |                    |   |   |   |   |
|                                                                |   |                                       |                    |   |   |   |   |
| 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,               |                    |
|                                                                                                      |   | 2008                    |                    | 2007  |   |
|                                                                                                      |   |                         |                    |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                      |   |                         |                         |   |   |   |   |
| Net                loss                                                                                   |   | $                            | (                91,000 | ) | $ | (114,000 | ) |
|                                                                                                      |   |                         |                    |   |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |                         |                    |   |   |   |   |
|                                                                                                      |   |                         |                    |   |   |   |   |
| Changes                in operating assets and liabilities:                                               |   |                         |                    |   |   |   |   |
| Short                and long-term accounts receivable, net                                               |   |                         | -                       |   |   | - |   |
| Prepaid                expenses and other current assets                                                  |   |                         | 13,000                  |   |   | 16,000 |   |
| Accounts                payable and accrued liabilities                                                   |   |                         | 58,000                  |   |   | 31,000 |   |
|                                                                                                      |   |                         |                    |   |   |   |   |
| TOTAL                ADJUSTMENTS                                                                          |   |                         | 71,000                  |   |   | 47,000 |   |
|                                                                                                      |   |                         |                    |   |   |   |   |
| NET                  CASH USED IN OPERATING                  ACTIVITIES                                   |   |                         | (                20,000 | ) |   | (                67,000 | ) |
|                                                                                                      |   |                         |                    |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                      |   |                         |                    |   |   |   |   |
| Short-term                debt borrowings from related party                                              |   |                         | 10,000                  |   |   | 78,000 |   |
|                                                                                                      |   |                         |                    |   |   |   |   |
| NET                CHANGE IN CASH AND CASH EQUIVALENTS                                                    |   |                         | (10,000                 | ) |   | 11,000 |   |
|                                                                                                      |   |                         |                    |   |   |   |   |
| CASH,                BEGINNING OF PERIOD                                                                  |   |                         | 14,000                  |   |   | 7,000 |   |
|                                                                                                      |   |                         |                    |   |   |   |   |
| CASH,                END OF PERIOD                                                                        |   | $                            | 4,000                   |   | $ | 18,000 |   |

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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, 2008, 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, 2008 as                compared to the results of 2007 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**

|   | For                the quarter ended March 31, 2008, the real estate operating loss                was                $74,000 compared to a loss of $88,000 for the same period in 2007.                However, real estate losses will continue as the Company incurs carrying                costs and improvements required to sell the remaining                properties. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In                February 2004, the Company received notice from Los Angeles County                that                the county intends to severely restrict grading permits and may require                condition use permits for grading on the Company’s property. In addition,                the County of Los Angeles announced its intention to restrict the                building                of residences on three of the Company’s six parcels of land because of new                ridgeline building ordinances. Prior to the ordinance deadline, the                Company received grandfathering status on three of its remaining                parcels.                Because the grandfathering clause is conditional, it is unclear whether                or                not the Company will be able to take advantage of this grandfathering                status until the Company completes the permit process. The above                regulations potentially require multi-year processing to reach the                point                that a parcel can be sold to a third                party. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | If                an agreement cannot be reached with Los Angeles County, these new                regulations may force the Company to liquidate its real estate, make                settlements with its lenders and close down its real estate development                business. As of March 31, 2008, no decision has been made by management                regarding liquidation, nor can they determine the potential financial                impact to the Company. Accordingly, the March 31, 2008 financial                statements do not reflect any adjustments that might result from                these new                and more stringent regulations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
|   | After                the closing of the financial period, the Company received rough grading                sign off for one of the three parcels that the company has previously                received grandfathering status. The company is currently marketing                this                property for sale. The real estate broker , has informed the company                there                are no current lenders for real estate sales involving land only                sales,                because there is not financing for land sales, the Company will have                to                seek a cash buyer or may involve discounts to the sale                price. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**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 intends to meet its obligations through real estate sales.              The              limited resources available to the Company will be directed at reducing              operating expenses and selling real              estate. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

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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, 2008 the Company had paid                into the                PRP Group approximately $1,040,000, which includes the assignment                of a                $250,000 note receivable with recourse. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|
|   | During                the past several years, the Company had requested a Hardship Withdrawal                Settlement with the PRP group due to the Company’s financial condition.                The PRP group had 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 would                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                were paid in full. During 2007, the assigned note was paid in full. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. As of December 31, 2006, the Company                owed                late payment penalties totaling approximately $20,000 for the years                2004,                2005 and 2006. These penalties were recognized as interest expense                for the                year ended December 31, 2006 and the liability was accrued as a portion                of                the environmental reserve included in current liabilities. In December                2007, the Company made a final payment in the amount of $112,000,                of which                $90,000 represented payment towards the accrued liability and $22,000                represented payment of additional interest for late payments. As                a result                of this payment and pursuant to the settlement agreement, the Company                is                not responsible for any additional liability related to this site,                other                than any new claims. Therefore, the Company removed the remaining                liability from its books as of December 31, 2007 and recognized a                gain on                extinguishment of this debt in the amount of $1,107,000. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Complying                with the terms of the note relieves Frawley Corporation from any                liability                related to the Chatham Site action approved by the State of California                in                1999. However, the PRP Group did not indemnify Frawley Corporation                for any                third party lawsuits related to the Chatham Site cleanup that are                not                considered in the remediation action plan approved in                1999. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. During 2006, the Company agreed to pay the liability                in                installment payments through January 2007. The Company made payments                of                approximately $52,000 during 2006 and of approximately $26,000 during                2007. In September 2007, the Company was granted a postponement of                the                additional payments due until March 2009. The balance of approximately                $21,000 is included in current                liabilities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | During                the first quarter ended March 31, 2008, the Company borrowed approximately                $10,000 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:                December 02, 2008 | By:                                          | /s/                Michael P. Frawley |
|----------------------------------------|----------------------------------------------|---------------------------------------|
|                                   | MICHAEL                P. FRAWLEY, President |
|                                   | (Authorized                Officer and       |
|                                   | Chief                Financial Officer)      |

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