**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 September 30,                2007 |

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| PART                  I: FINANCIAL INFORMATION                                                                                                   |   | PAGE                  NO. |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                                                                             |   |                      |   |
| Item                  1: Financial Statements                                                                                                    |   |                      |   |
|                                                                                                                                             |   |                      |   |
| Consolidated                  Balance Sheets September 30, 2007 and December 31, 2006                                                            |   |                      | 3      |   |
|                                                                                                                                             |   |                      |   |   |
| Consolidated                  Statements of Operations Three Months Ended September 30, 2007                  and                  2006          |   |                      | 4      |   |
|                                                                                                                                             |   |                      |   |   |
| Consolidated                  Statements of Operations Nine Months Ended September 30, 2007 and                  2006                            |   |                      | 5      |   |
|                                                                                                                                             |   |                      |   |   |
| Consolidated                  Statements of Cash Flows Nine Months Ended September 30, 2007 and                  2006                            |   |                      | 6      |   |
|                                                                                                                                             |   |                      |   |   |
| 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**

|                                                             |   | SEPTEMBER                30, 2007 |        | DECEMBER                31, 2006 |   |
|------------------------------------------------------------------|--------|-----------------------------------|-------------|----------------------------------|--------|
|                                                             |   | (Unaudited)                       |        |                             |   |
| **ASSETS**                                                       |
| CURRENT                ASSETS                                    |   |                              |        |                             |   |
| Cash                                                             |   | $                                 | 4,000       |                             | $      | 8,000 |   |
| Accounts                receivable, net                          |   |                              | 4,000       |                             |   | 4,000 |   |
| Prepaid                expenses and other current assets         |   |                              | -           |                             |   | 17,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| TOTAL                CURRENT ASSETS                              |   |                              | 8,000       |                             |   | 28,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| Real                estate investments, net                      |   |                              | 457,000     |                             |   | 457,000 |   |
| Investment                in partnership                         |   |                              | 16,000      |                             |   | 16,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| TOTAL                ASSETS                                      |   | $                                 | 481,000     |                             | $      | 501,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**   |
|                                                             |   |                              |        |                             |   |   |   |
| CURRENT                LIABILITIES                               |   |                              |        |                             |   |   |   |
| Notes                payable to stockholders                     |   | $                                 | 2,309,000   |                             | $      | 2,138,000 |   |
| Accounts                payable and accrued expenses             |   |                              | 123,000     |                             |   | 164,000 |   |
| Environmental                reserve                             |   |                              | 77,000      |                             |   | 77,000 |   |
| Interest                payable to related parties               |   |                              | 2,003,000   |                             |   | 1,840,000 |   |
| Deposits                                                         |   |                              | 385,000     |                             |   | 374,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| TOTAL                CURRENT LIABILITIES                         |   |                              | 4,897,000   |                             |   | 4,593,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| LONG                TERM LIABILITIES                             |   |                              |        |                             |   |   |   |
|                                                             |   |                              |        |                             |   |   |   |
| Environmental                reserve                             |   |                              | 1,120,000   |                             |   | 1,120,000 |   |
|                                                             |   |                              |        |                             |   |   |   |
| TOTAL                LIABILITIES                                 |   |                              | 6,017,000   |                             |   | 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                               |   |                              | (23,398,000 | )                                |   | (23,074,000 | ) |
|                                                             |   |                              |        |                             |   |   |   |
|                                                             |   |                              | (4,775,000  | )                                |   | (4,451,000 | ) |
| Less                common stock in treasury,                    |   |                              |             |                             |   |  |   |
| 191,312                shares (at cost)                          |   |                              | (761,000    | )                                |   | (761,000 | ) |
|                                                             |   |                              |        |                             |   |   |   |
| TOTAL                STOCKHOLDERS’ DEFICIT                 |   |                              | (5,536,000  | )                                |   | (5,212,000 | ) |
|                                                             |   |                              |        |                             |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT |   | $                                 | 481,000     |                             | $      | 501,000 |   |

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|                                               |   | Three                Months EndedSEPTEMBER                30, |      |
|----------------------------------------------------|--------|---------------------------------------------------------------|-----------|
|                                               |   | 2007                                                          |      | 2006 |   |
|                                               |   |                                                          |      |   |   |
| REVENUES:                                          |   |                                                          |      |   |   |
| Other                income                        |   | $                                                             | -         |   | $ | - |   |
|                                               |   |                                                          |      |   |   |   |   |
|                                               |   |                                                          |      |   |   |   |   |
| COSTS                AND EXPENSES:                 |   |                                                          |      |   |   |   |   |
| Selling,                general and administrative |   |                                                          |      |   |   |   |   |
| expenses                                           |   |                                                          | 40,000    |   |   | 40,000 |   |
| Interest                expense                    |   |                                                          | 56,000    |   |   | 51,000 |   |
|                                               |   |                                                          |      |   |   |   |   |
| TOTAL                COSTS AND EXPENSES            |   |                                                          | 96,000    |   |   | 91,000 |   |
|                                               |   |                                                          |      |   |   |   |   |
| NET                LOSS                            |   | $                                                             | (96,000   | ) | $ | (91,000 | ) |
|                                               |   |                                                          |      |   |   |   |   |
| NET                LOSS PER SHARE, COMMON          |   | $                                                             | (0.08     | ) | $ | (0.07 | ) |
|                                               |   |                                                          |      |   |   |   |   |
| FULLY                DILUTED                       |   | $                                                             | (0.08     | ) | $ | (0.07 | ) |
|                                               |   |                                                          |      |   |   |   |   |
| Weighted                average number of          |   |                                                          |      |   |   |   |   |
| Common                shares outstanding           |   |                                                          | 1,222,905 |   |   | 1,222,905 |   |

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|                                               |   | Nine                Months EndedSEPTEMBER                30, |      |
|----------------------------------------------------|--------|--------------------------------------------------------------|-----------|
|                                               |   | 2007                                                         |      | 2006 |   |
|                                               |   |                                                         |      |   |   |
| REVENUES:                                          |   |                                                         |      |   |   |
| Other                income                        |   | $                                                            | 2,000     |   | $ | 751,000 |   |
|                                               |   |                                                         |      |   |   |   |   |
|                                               |   |                                                         |      |   |   |   |   |
| COSTS                AND EXPENSES:                 |   |                                                         |      |   |   |   |   |
| Cost                of real estate sold            |   |                                                         | -         |   |   | 355,000 |   |
| Selling,                general and administrative |   |                                                         |      |   |   |   |   |
| expenses                                           |   |                                                         | 163,000   |   |   | 205,000 |   |
| Interest                expense                    |   |                                                         | 163,000   |   |   | 163,000 |   |
|                                               |   |                                                         |      |   |   |   |   |
| TOTAL                COSTS AND EXPENSES            |   |                                                         | 326,000   |   |   | 723,000 |   |
|                                               |   |                                                         |      |   |   |   |   |
| NET                (LOSS)/INCOME                   |   | $                                                            | (324,000  | ) | $ | 28,000 |   |
|                                               |   |                                                         |      |   |   |   |   |
| NET                (LOSS)/INCOME PER SHARE, COMMON |   | $                                                            | (0.26     | ) | $ | 0.02 |   |
|                                               |   |                                                         |      |   |   |   |   |
| FULLY                DILUTED                       |   | $                                                            | (0.26     | ) | $ | 0.02 |   |
|                                               |   |                                                         |      |   |   |   |   |
| 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)**

|                                                                                                       |   | Nine                Months Ended |     |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------|
|                                                                                                       |   | SEPTEMBER                30,     |     |
|                                                                                                       |   | 2007                             |     | 2006 |   |
|                                                                                                       |   |                             |     |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                       |   |                             |     |   |   |
| Net                (loss)/income                                                                           |   | $                                | (324,000 | ) | $ | 28,000 |   |
|                                                                                                       |   |                             |     |   |   |   |   |
| 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                                                   |   |                             | 17,000   |   |   | 24,000 |   |
| Accounts                payable and accrued liabilities                                                    |   |                             | 133,000  |   |   | (4,000 | ) |
| Real                estate investments                                                                     |   |                             | -        |   |   | 355,000 |   |
|                                                                                                       |   |                             |     |   |   |   |   |
| TOTAL                ADJUSTMENTS                                                                           |   |                             | 150,000  |   |   | 371,000 |   |
|                                                                                                       |   |                             |     |   |   |   |   |
| NET                CASH (USED IN)/PROVIDED BY OPERATING                                                    |   |                             |     |   |   |   |   |
| ACTIVITIES                                                                                                 |   |                             | (174,000 | ) |   | 399,000 |   |
|                                                                                                       |   |                             |     |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                       |   |                             |     |   |   |   |   |
| Short-term                debt borrowings from related party                                               |   |                             | 171,000  |   |   | 115,000 |   |
| Repayment                of environmental reserve                                                          |   |                             | -        |   |   | (150,000 | ) |
| Repayment                of borrowings                                                                     |   |                             | -        |   |   | (369,000 | ) |
|                                                                                                       |   |                             |     |   |   |   |   |
| NET                CASH PROVIDED BY/(USED IN) FINANCING                                                    |   |                             |     |   |   |   |   |
| ACTIVITIES                                                                                                 |   |                             | 171,000  |   |   | (404,000 | ) |
|                                                                                                       |   |                             |     |   |   |   |   |
| NET                CHANGE IN CASH AND CASH EQUIVALENTS                                                     |   |                             | (3,000   | ) |   | (5,000 | ) |
|                                                                                                       |   |                             |     |   |   |   |   |
| CASH,                BEGINNING OF PERIOD                                                                   |   |                             | 7,000    |   |   | 7,000 |   |
|                                                                                                       |   |                             |     |   |   |   |   |
| CASH,                END OF PERIOD                                                                         |   | $                                | 4,000    |   | $ | 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              September 30, 2007, and the results of operations and changes in cash              flows for the nine months then ended. |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                        |
| NOTE 2: |   | The results of operations for the nine              months              ended September 30, 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**

**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 does not 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 September 30, 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. After the closing of the quarter ended September 30, 2007,                the PRP                reported receipt of the final payment of $50,000 in principal and                $4,000                in interest, due from the assigned note. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 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. At this time, the Company is                unable                to pay the remaining balance currently owed on the settlement note                in the                amount of approximately $110,000. The PRP group has been unwilling                to                extend the note. The Company is attempting to raise the cash through                either loans or a property sale. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   |   | 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 and second quarters of 2007, respectively. The Company                was unable to make the payment due on July 11, 2007. The Company                requested                a payment extension, which the EPA reviewed and granted an extension                of 18                months to pay the balance plus interest accrued by March                2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | During                the third quarter ended September 30, 2007, the Company borrowed                approximately $39,000 from the Frawley Family Trust. These loans                are                secured by Deeds of trust on the Company’s real estate property. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                                                     |                                                              |                                    |
|----------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------|
|                                                     | FRAWLEY                    CORPORATION                            |
|                                                     | (REGISTRANT)                                                      |
|                                                |                                                         |                               |
| Date:                  November                  9, 2007 | By:                                                     | /s/                  Michael P. Frawley |
|                                                     | MICHAEL                  P. FRAWLEY, President                    |
|                                                     | (Authorized                  Officer and Chief Financial Officer) |

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