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

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| **FRAWLEY                CORPORATION**                                                        |
|----------------------------------------------------------------------------------------------------|
| (EXACT                NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)                              |
|                                                                                               |
| 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)   |
|                                                                                               |   |
| (818)735-6640                                                                                      |
| (REGISTRANT'S                TELEPHONE NUMBER, INCLUDING AREA CODE)                                |
|                                                                                               |   |
|                                                                                               |   |
| (FORMER                NAME, ADDRESS AND FISCAL YEAR, IF CHANGED SINCE LAST                REPORT) |

| Common                stock, par value $1 | 1,222,905                                   |
|-------------------------------------------|---------------------------------------------|
| (Class)                                   | Outstanding                at June 30, 2006 |

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| PART                I: FINANCIAL INFORMATION | PAGE                NO.                                                                                                                      |
|----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                         |                                                                                                                                         |   |
|                                         | Item                1: Financial Statements                                                                                                  |   |
|                                         |                                                                                                                                         |   |
|                                         | Consolidated                Balance Sheets                                                                                                   |   |
|                                         | June                30, 2006 and December 31, 2005                                                                                           | 3 |
|                                         |                                                                                                                                         |   |
|                                         | Consolidated                Statements of Operations                                                                                         |   |
|                                         | Three                Months ended June 30, 2006 and 2005                                                                                     | 4 |
|                                         |                                                                                                                                         |   |
|                                         | Consolidated                Statements of Operations                                                                                         |   |
|                                         | Six                Months Ended June 30, 2006 and 2005                                                                                       | 5 |
|                                         |                                                                                                                                         |   |
|                                         | Consolidated                Statements of Cash Flows                                                                                         |   |
|                                         | Six                Months Ended June 30, 2006 and 2005                                                                                       | 5 |
|                                         |                                                                                                                                         |   |
|                                         | Notes                to Consolidated Financial Statements                                                                                    | 7 |
|                                         |                                                                                                                                         |   |
|                                         | Item                2: Management's Discussion and Analysis                of                  Financial Condition and Results of Operations |   |
|                                         |                                                                                                                                              | 8 |
|                                         |                                                                                                                                         |   |
|                                         |                                                                                                                                         |   |
| PART                II: OTHER INFORMATION    |                                                                                                                                         |
|                                         |                                                                                                                                         |   |
|                                         | Item                1: Legal Proceedings                                                                                                     | 9-10 |
|                                         |                                                                                                                                         |   |
|                                         | Item                5: Other Information                                                                                                     | 10 |
|                                         |                                                                                                                                         |   |
|                                         | 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**

|                                                             |   | JUNE                30, |        | DECEMBER                31, |   |
|------------------------------------------------------------------|--------|-------------------------|-------------|-----------------------------|--------|
|                                                             |   | 2006                    |        | 2005                        |   |
|                                                             |   | (Unaudited)             |        |                        |   |
| **ASSETS**                                                       |   |
| CURRENT                ASSETS                                    |   |                    |        |                        |   |
| Cash                                                             |   | $                       | 23,000      |                        | $      | 7,000 |   |
| Accounts                receivable, net                          |   |                    | 4,000       |                        |   | - |   |
| Prepaid                expenses and other current assets         |   |                    | 1,000       |                        |   | 24,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| TOTAL                CURRENT ASSETS                              |   |                    | 28,000      |                        |   | 31,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| Real                estate investments, net                      |   |                    | 457,000     |                        |   | 812,000 |   |
| Investment                in partnership                         |   |                    | 16,000      |                        |   | 16,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| TOTAL                ASSETS                                      |   | $                       | 501,000     |                        | $      | 859,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**   |
|                                                             |   |                    |        |                        |   |   |   |
| CURRENT                LIABILITIES                               |   |                    |        |                        |   |   |   |
| Notes                payable to stockholders                     |   | $                       | 2,063,000   |                        | $      | 2,338,000 |   |
| Accounts                payable and accrued expenses             |   |                    | 140,000     |                        |   | 287,000 |   |
| Environmental                reserve                             |   |                    | 115,000     |                        |   | 115,000 |   |
| Interest                payable to related parties               |   |                    | 1,736,000   |                        |   | 1,651,000 |   |
| Deposits                                                         |   |                    | 384,000     |                        |   | 374,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| TOTAL                CURRENT LIABILITIES                         |   |                    | 4,438,000   |                        |   | 4,765,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| LONG                TERM LIABILITIES                             |   |                    |        |                        |   |   |   |
|                                                             |   |                    |        |                        |   |   |   |
| Environmental                reserve                             |   |                    | 1,070,000   |                        |   | 1,220,000 |   |
|                                                             |   |                    |        |                        |   |   |   |
| TOTAL                LIABILITIES                                 |   |                    | 5,508,000   |                        |   | 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                               |   |                    | (22,869,000 | )                           |   | (22,988,000 | ) |
|                                                             |   |                    |        |                        |   |   |   |
|                                                             |   |                    | (4,246,000  | )                           |   | (4,365,000 | ) |
| Less                common stock in treasury,                    |   |                    |             |                        |   |  |   |
| 191,312                shares (at cost)                          |   |                    | (761,000    | )                           |   | (761,000 | ) |
|                                                             |   |                    |        |                        |   |   |   |
| TOTAL                STOCKHOLDERS’ DEFICIT                 |   |                    | (5,007,000  | )                           |   | (5,126,000 | ) |
|                                                             |   |                    |        |                        |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT |   | $                       | 501,000     |                        | $      | 859,000 |   |

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|                                                                               |   | Three                Months EndedJUNE                30 |      |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-----------|
|                                                                               |   | 2006                                                    |      | 2005 |   |
| REVENUES:                                                                          |   |                                                    |      |   |   |
| Net                revenue                                                         |   | $                                                       | 2,000     |   | $ | - |   |
|                                                                               |   |                                                    |      |   |   |   |   |
| COSTS                AND EXPENSES:                                                 |   |                                                    |      |   |   |   |   |
| Selling,                  general and administrative expenses                      |   |                                                    | 39,000    |   |   | 44,000 |   |
| Interest                expense                                                    |   |                                                    | 53,000    |   |   | 55,000 |   |
|                                                                               |   |                                                    |      |   |   |   |   |
| TOTAL                COSTS AND EXPENSES                                            |   |                                                    | 92,000    |   |   | 99,000 |   |
|                                                                               |   |                                                    |      |   |   |   |   |
| NET                LOSS                                                            |   | $                                                       | (90,000   | ) | $ | (                99,000 | ) |
|                                                                               |   |                                                    |      |   |   |   |   |
| NET                LOSS PER SHARE, COMMON                                          |   | $                                                       | (0.07     | ) | $ | (0.08 | ) |
|                                                                               |   |                                                    |      |   |   |   |   |
| FULLY                DILUTED                                                       |   | $                                                       | (0.07     | ) | $ | (0.08 | ) |
|                                                                               |   |                                                    |      |   |   |   |   |
|                                                                                    |   |                                                    |      |   |   |   |   |
| Weighted                average number of Common                shares outstanding |   |                                                    | 1,222,905 |   |   | 1,222,905 |   |

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|                                                                               |   | Six                Months EndedJune                30 |      |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                                               |   | 2006                                                  |      | 2005 |   |
|                                                                               |   |                                                  |      |   |   |
| REVENUES:                                                                          |   |                                                  |      |   |   |
| Net                revenue                                                         |   | $                                                     | 751,000   |   | $ | 4,000 |   |
|                                                                               |   |                                                  |      |   |   |   |   |
| COSTS                AND EXPENSES:                                                 |   |                                                  |      |   |   |   |   |
| Cost                of real estate sold                                            |   |                                                  | 355,000   |   |   | - |   |
| Selling,                  general and administrative expenses                      |   |                                                  | 165,000   |   |   | 110,000 |   |
| Interest                expense                                                    |   |                                                  | 112,000   |   |   | 109,000 |   |
|                                                                               |   |                                                  |      |   |   |   |   |
| TOTAL                COSTS AND EXPENSES                                            |   |                                                  | 632,000   |   |   | 219,000 |   |
|                                                                               |   |                                                  |      |   |   |   |   |
| NET                INCOME/(LOSS)                                                   |   | $                                                     | 119,000   |   | $ | (215,000 | ) |
|                                                                               |   |                                                  |      |   |   |   |   |
| NET                INCOME/(LOSS) PER SHARE, COMMON                                 |   | $                                                     | 0.10      |   | $ | (0.18 | ) |
|                                                                               |   |                                                  |      |   |   |   |   |
| FULLY                DILUTED                                                       |   | $                                                     | 0.10      |   | $ | (0.18 | ) |
|                                                                               |   |                                                  |      |   |   |   |   |
| 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)**

|                                                                 |   | Six                Months Ended |     |
|----------------------------------------------------------------------|--------|---------------------------------|----------|
|                                                                 |   | June                30,         |     |
|                                                                 |   | 2006                            |     | 2005 |   |
|                                                                 |   |                            |     |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                 |   |                            |     |   |   |
| Net                income/(loss)                                     |   | $                               | 119,000  |   | $ | (215,000 | ) |
|                                                                 |   |                            |     |   |   |   |   |
| 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   |   |   | 29,000 |   |
| Accounts                payable and accrued expenses                 |   |                            | (53,000  | ) |   | 86,000 |   |
| Real                estate investments                               |   |                            | 355,000  |   |   | - |   |
|                                                                 |   |                            |     |   |   |   |   |
| TOTAL                ADJUSTMENTS                                     |   |                            | 321,000  |   |   | 111,000 |   |
|                                                                 |   |                            |     |   |   |   |   |
| NET                  CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES |   |                            | 440,000  |   |   | (104,000 | ) |
|                                                                 |   |                            |     |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                 |   |                            |     |   |   |   |   |
| Short-term                  debt borrowings from related party       |   |                            | 95,000   |   |   | 101,000 |   |
| Repayment                of borrowings                               |   |                            | (369,000 | ) |   | - |   |
| Repayment                of environmental reserve                    |   |                            | (150,000 | ) |   | - |   |
| Capital                contributions                                 |   |                            | -        |   |   | 1,000 |   |
|                                                                 |   |                            |     |   |   |   |   |
| NET                CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES   |   |                            | (424,000 | ) |   | 102,000 |   |
|                                                                 |   |                            |     |   |   |   |   |
| NET                CHANGE IN CASH AND CASH EQUIVALENTS               |   |                            | 16,000   |   |   | (2,000 | ) |
|                                                                 |   |                            |     |   |   |   |   |
| CASH,                BEGINNING OF PERIOD                             |   |                            | 7,000    |   |   | 4,000 |   |
|                                                                 |   |                            |     |   |   |   |   |
| CASH,                END OF PERIOD                                   |   | $                               | 23,000   |   | $ | 2,000 |   |

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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 June 30, 2006, and the results of operations                and changes in cash flows for the six months then                ended. |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE                2: | The                results of operations for the six months ended June 30, 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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**FRAWLEY      CORPORATION AND SUBSIDIARIES**

**ITEM      2**

**Real      Estate**

|   | 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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | The                Company continues to incur legal expenses and has an obligation in                2006 to                contribute to the Chatham Brothers toxic waste cleanup lawsuit. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PART      II - OTHER INFORMATION**

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|   |   | During                the second quarter ended June 30, 2006 the Company borrowed approximately                $8,800 from the Frawley Family Trust. This loan is secured by Deed                of                trust on the Company’s real estate                property. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                                                     |                                                                                                                                   |                            |
|----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|
|                                                     | FRAWLEY                CORPORATION                                                                                                     |
|                                                |                                                                                                                              | (REGISTRANT)                    |
| Date: August              8, 2006    | By: /s/                                                                                                                      | Michael              P. Frawley |
|                                                     | MICHAEL                P. FRAWLEY, President(Authorized                Officer and                  Chief Financial Officer) |

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