| UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549  |
|----------------------------------------------------------------------------------------|
| FORM 10-Q                                                                         |

| Commission File Number 001-12396                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                |   |
| THE BEARD COMPANY                                                                                                                                                   |
| (Exact name of registrant as specified in its charter)                                                                                                              |
|                                                                                                                                                                |   |
| Oklahoma                                                                                                                                                            | 73-0970298 |
| (State or other jurisdiction of incorporation or organization)                                                                                                      | (I.R.S. Employer Identification No.) |
|                                                                                                                                                                |   |
| Harvey Parkway301 N.W. 63rd Street, Suite 400Oklahoma City, Oklahoma               73116 |
| (Address of principal executive offices)   (Zip Code)                                                                                                |
|                                                                                                                                                                |   |
| Registrant's telephone number, including area code: (405) 842-2333                                                                                                  |

|     Large accelerated filer  [  ] | Accelerated filer  [  ] |
|---------------------------------------------------------------------------|---------------------------------------------|
|     Non-accelerated filer  [  ]   | Smaller reporting company  [X]    |

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|                                                                                                                                                           | Page      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| PART I. FINANCIAL INFORMATION                                                                                                                                  |      |
|                                                                                                                                                           |      |
| Item 1.             Financial Statements                                                      |      |
|                                                                                                                                                           |      |
| Balance Sheets – June 30, 2010 (Unaudited) and December 31, 2009                                                                                         |   3  |
|                                                                                                                                                           |      |
| Statements of Operations - Three Months and Six Months ended June 30, 2010 and 2009 (Unaudited)                                                                |   4  |
|                                                                                                                                                           |      |
| Statements of Shareholders’ Equity (Deficiency) - Year ended December 31, 2009and Six Months ended June 30, 2010 (Unaudited)                             |   5  |
|                                                                                                                                                           |      |
| Statements of Cash Flows – Six Months ended June 30, 2010 and 2009 (Unaudited)                                                                           |   6  |
|                                                                                                                                                           |      |
| Notes to Financial Statements (Unaudited)                                                                                                                      |   7  |
|                                                                                                                                                           |      |
| Item 2.           Management's Discussion and Analysis of Financial Condition and Results of Operations |   17 |
|                                                                                                                                                           |      |
| Item 3.           Quantitative and Qualitative Disclosures About Market Risk                            |   25 |
|                                                                                                                                                           |      |
| Item 4.           Controls and Procedures                                                               |  25  |
|                                                                                                                                                           |      |
| PART II.  OTHER INFORMATION                                                                                                                          |      |
|                                                                                                                                                           |      |
| Item 1.           Legal Proceedings                                                                     |   25 |
|                                                                                                                                                           |      |
| Item 1A.    Risk Factors                                                                                                                   |   25 |
|                                                                                                                                                           |      |
| Item 2.           Unregistered Sales of Equity Securities and Use of Proceeds                           |   26 |
|                                                                                                                                                           |      |
| Item 3.           Defaults Upon Senior Securities                                                       |   26 |
|                                                                                                                                                           |      |
| Item 4.           (Removed and Reserved)                                                                |   26 |
|                                                                                                                                                           |      |
| Item 5.           Other Information                                                                     |   26 |
|                                                                                                                                                           |      |
| Item 6.           Exhibits                                                                              |   26 |
|                                                                                                                                                           |      |
| Signatures                                                                                                                                                     |   27 |

----

| PART I  FINANCIAL INFORMATION.                        |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |
|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Item 1.  Financial Statements                         |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| THE BEARD COMPANY AND SUBSIDIARIES                              |                                                                                                         |
| Balance Sheets                                                  |                                                                                                         |
| June 30, 2010 (Unaudited) and December 31, 2009                 |                                                                                                         |
|                                                            |                                                                                                         |                                                                                                     | June 30,                                                                                 |                                                                                                           | December 31, |   |
|                                                            |                                                                                                         | Assets                                                                                                   | 2010                                                                                     |                                                                                                           | 2009 |   |
| Current assets:                                                 |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |
|                                                            | Cash and cash equivalents                                                                                    | $               256,000  |                                                                                     | $                629,000  |   |
|                                                            | Accounts receivable, less allowance for doubtful                                                             |                                                                                                     |                                                                                     |                                                                                                           |   |
|                                                            |    receivables of $55,000 in 2010 and $31,000 in 2009                                         | 986,000                                                                                             |                                                                                | 1,044,000                                                                                                 |   |
|                                                            | Inventories                                                                                                  | 84,000                                                                                              |                                                                                     | 48,000                                                                                                    |   |
|                                                            | Prepaid expenses and other assets                                                                            | 115,000                                                                                             |                                                                                     | 139,000                                                                                                   |   |
|                                                            | Assets to be disposed                                                                                        | 798,000                                                                                             |                                                                                     | 885,000                                                                                                   |   |
|                                                            |                                                                                                         | Total current assets                                                                                     | 2,239,000                                                                           |                                                                                                           | 2,745,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Restricted certificate of deposit                               | 50,000                                                                                                  |                                                                                                     | 50,000                                                                              |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Note and other long-term receivables                            | 257,000                                                                                                 |                                                                                                     | 300,000                                                                             |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Investments and other assets                                    | 160,000                                                                                                 |                                                                                                     | 299,000                                                                             |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Property, plant and equipment, at cost, based on the successful |                                                                                                         |                                                                                                     |                                                                                     |
|                                                            | efforts method of accounting for oil and gas properties                                                      | 2,361,000                                                                                           |                                                                                     | 1,364,000                                                                                                 |   |
|                                                            | Less accumulated depreciation, depletion and amortization                                                    | 373,000                                                                                             |                                                                                     | 346,000                                                                                                   |   |
|                                                            |                                                                                                         | Net property, plant and equipment                                                                        | 1,988,000                                                                           |                                                                                                           | 1,018,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Intangible assets, at cost                                      | 28,000                                                                                                  |                                                                                                     | 75,000                                                                              |                                                                                                      |
|                                                            | Less accumulated amortization                                                                                | 22,000                                                                                              |                                                                                     | 72,000                                                                                                    |   |
|                                                            |                                                                                                         | Net intangible assets                                                                                    | 6,000                                                                               |                                                                                                           | 3,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
|                                                            |                                                                                                         |                                                                                                     | $            4,700,000  |                                                                                                           | $             4,415,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
|                                                            |                                                                                                         | Liabilities and Shareholders' Equity (Deficiency)                                                        |                                                                                     |                                                                                                           |   |   |
| Current liabilities:                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |
|                                                            | Trade accounts payable                                                                                       | $               995,000  |                                                                                     | $             1,015,000                  |   |
|                                                            | Accrued expenses                                                                                             | 305,000                                                                                             |                                                                                     | 273,000                                                                                                   |    |
|                                                            | Short-term debt                                                                                              | 1,690,000                                                                                           |                                                                                     | -                                                                                                         |   |
|                                                            | Short-term debt - related parties                                                                            | 222,000                                                                                             |                                                                                     | -                                                                                                         |    |
|                                                            | Current maturities of long-term debt                                                                         | 72,000                                                                                              |                                                                                     | 32,000                                                                                                    |   |
|                                                            | Liabilities to be disposed                                                                                   | 544,000                                                                                             |                                                                                     | 542,000                                                                                                   |   |
|                                                            |                                                                                                         | Total current liabilities                                                                                | 3,828,000                                                                           |                                                                                                           | 1,862,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Long-term debt less current maturities                          | 275,000                                                                                                 |                                                                                                     | 304,000                                                                             |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Long-term debt - related entities                               | 1,971,000                                                                                               |                                                                                                     | 1,971,000                                                                           |                                                                                                      |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Other long-term liabilities                                     | 333,000                                                                                                 |                                                                                                     | 302,000                                                                             |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Shareholders' equity (deficiency):                              |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |
|                                                            | Convertible preferred stock of $100 stated value;                                                            |                                                                                                     |                                                                                     |                                                                                                           |   |
|                                                            |    5,000,000 shares authorized; 27,838 shares issued and outstanding                          | 889,000                                                                                             |                                                                                     | 889,000                                                                                                   |   |
|                                                            | Common stock of $.00033325 par value per share;                                                              |                                                                                                     |                                                                                     |                                                                                                           |   |
|                                                            |     30,000,000 authorized;  19,971,622 issued and outstanding in 2010 and 2009 | 7,000                                                                                               |                                                                                     | 7,000                                                                                                     |   |
|                                                            | Capital in excess of par value                                                                               | 42,844,000                                                                                          |                                                                                     | 42,780,000                                                                                                |   |
|                                                            | Accumulated deficit                                                                                          | (42,820,000)                                                                                             |                                                                                     | (41,073,000)                                                                                                   |   |
|                                                            | Accumulated other comprehensive income                                                                       | 24,000                                                                                              |                                                                                     | 24,000                                                                                                    |   |
|                                                            |                                                                                                         | Total shareholders' equity (deficiency) attributable to The Beard Company                                | 944,000                                                                             |                                                                                                           | 2,627,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
|                                                            | Noncontrolling interests                                                                                     | (2,651,000)                                                                                              |                                                                                     | (2,651,000)                                                                                                    |   |
|                                                            |                                                                                                         | Total shareholders' equity (deficiency)                                                                  | (1,707,000)                                                                              |                                                                                                           | (24,000) |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| Commitments and contingencies (note 8)                          |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |
|                                                            |                                                                                                         |                                                                                                     | $            4,700,000  |                                                                                                           | $             4,415,000  |   |
|                                                            |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |   |   |
| See accompanying notes to financial statements.                 |                                                                                                         |                                                                                                     |                                                                                     |                                                                                                           |

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| THE BEARD COMPANY AND SUBSIDIARIES                           |
|--------------------------------------------------------------|
| Statements of Operations                                     |
| (Unaudited)                                                  |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   | For Three Months Ended |   | For Six Months Ended |
|                                                         |   | June 30, |   | June 30, |   | June 30, |   | June 30, |
|                                                         |   | 2010 |   | 2009 |   | 2010 |   | 2009 |
| Revenues:                                                    |   |   |   |   |   |   |   |
|                                                         | Oil & gas | $         97,000  |   | $         37,000  |   | $       230,000  |   | $         60,000  |
|                                                         | Carbon dioxide | 7,000  |   | 5,000  |   | 13,000  |    | 285,000  |
|                                                         | e-Commerce | -  |   | -  |   | 1,000  |   | 3,000  |
|                                                         |   | 104,000  |   | 42,000  |   | 244,000  |   | 348,000  |
| Expenses:                                                    |   |   |   |   |   |   |   |
|                                                         | Oil & gas | 177,000  |   | 13,000  |   | 343,000  |   | 30,000  |
|                                                         | Carbon dioxide | 4,000  |   | 4,000  |   | 8,000  |   | 31,000  |
|                                                         | e-Commerce | -  |   | 26,000  |   | -  |   | 54,000  |
|                                                         | Selling, general and administrative | 541,000  |   | 251,000  |   | 1,018,000  |   | 522,000  |
|                                                         | Depreciation, depletion & amortization | 22,000  |   | 8,000  |    | 38,000  |   | 23,000  |
|                                                         |   | 744,000  |   | 302,000  |   | 1,407,000  |   | 660,000  |
| Operating profit (loss):                                     |   |   |   |   |   |   |   |
|                                                         | Oil & gas | (90,000) |   | 21,000  |   | (133,000) |   | 23,000  |
|                                                         | Carbon dioxide | 3,000  |   | 1,000  |   | 5,000  |   | 247,000  |
|                                                         | e-Commerce | -  |   | (27,000) |   | 1,000  |   | (52,000) |
|                                                         | Other, primarily corporate | (553,000) |   | (255,000) |   | (1,036,000) |   | (530,000) |
|                                                         |   | (640,000) |   | (260,000) |   | (1,163,000) |   | (312,000) |
| Other income (expense):                                      |   |   |   |   |   |   |   |
|                                                         | Interest income | 6,000  |   | 5,000  |   | 13,000  |   | 8,000  |
|                                                         | Interest expense | (84,000) |   | (67,000) |   | (142,000) |   | (156,000) |
|                                                         | Equity in operations of unconsolidated affiliates | (86,000) |   | (11,000) |   | (150,000) |   | (11,000) |
|                                                         | Gain (loss) on sale of assets | -  |   | 4,897,000  |    | -  |   | 4,898,000  |
|                                                         | Gain on settlement | -  |   | 832,000  |   | -  |   | 832,000  |
|                                                         | Other | 1,000  |   | (5,000) |   | 1,000  |   | (4,000) |
|                                                         |   |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations                   |   |   |   |   |   |
|                                                         | before income tax benefit (expense) | (803,000) |   | 5,391,000  |   | (1,441,000) |   | 5,255,000  |
| Income tax benefit (expense)                                 | -  |   | (80,000) |   | (28,000) |   | (80,000) |
|                                                         |   |   |   |   |   |   |   |   |
| Earnings (loss) from continuing operations                   |        (803,000) |   |       5,311,000  |   |     (1,469,000) |   |       5,175,000  |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         | Loss from discontinued operations | (140,000) |   | (180,000) |   | (278,000) |   | (317,000) |
| Net earnings (loss)                                          |        (943,000) |   |       5,131,000  |   |     (1,747,000) |   |       4,858,000  |
|                                                         |   |   |   |   |   |   |   |   |
| Less: (Income) loss attributable to noncontrolling interests |   |   |
|                                                         | (Income) loss from continuing operations | -  |   | (8,000) |   | -  |   | (8,000) |
| Net earnings (loss) attributable to                          |   |   |   |   |   |   |
|                                                         | The Beard Company common shareholders | $     (943,000) |   | $    5,123,000  |   | $  (1,747,000) |   | $    4,850,000  |
|                                                         |   |   |   |   |   |   |   |   |
| Net earnings (loss) per average common share outstanding:    |   |   |
|                                                         | Basic: |   |   |   |   |   |   |   |
|                                                         |    Earnings (loss) from continuing operations | $            (0.04) |   | $              0.27  |   | $            (0.08) |   | $              0.26  |
|                                                         |    Loss from discontinued operations | (0.01) |   | (0.01) |   | (0.01) |   | (0.02) |
|                                                         |    Net earnings (loss) | $            (0.05) |   | $              0.26  |   | $            (0.09) |   | $              0.24  |
|                                                         |   |   |   |   |   |   |   |   |
| Net earnings (loss) per average common share outstanding:    |   |   |
|                                                         | Diluted: |   |   |   |   |   |   |   |
|                                                         |    Earnings (loss) from continuing operations | $            (0.04) |   | $              0.25  |   | $            (0.08) |   | $              0.25  |
|                                                         |    Loss from discontinued operations | (0.01) |   | (0.01) |   | (0.01) |   | (0.02) |
|                                                         |    Net earnings (loss) | $            (0.05) |   | $              0.24  |    | $            (0.09) |   | $              0.23  |
|                                                         |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                  |   |   |   |   |
|                                                         | Basic | 20,104,000  |   | 19,824,000  |     | 20,104,000  |   | 19,812,000  |
|                                                         | Diluted | 20,104,000  |   | 21,086,000  |   | 20,104,000  |   | 21,074,000  |
|                                                         |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.              |   |   |   |   |

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| THE BEARD COMPANY AND SUBSIDIARIES                                                                   |
|------------------------------------------------------------------------------------------------------|
| Statements of Shareholders' Equity (Deficiency)                                                      |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   Accumu-lated |   |   |   |   |   |   Total |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   | Other Com- |   |   |   |   |   | Common |
|                                                                                                 |   |   |   |   |   |   | Capital in |   |   |   | prehensive |   |   |   |   Non- |   | Shareholders' |
|                                                                                                 | Preferred |   | Common |   | Excess of |   | Accumulated |   | Income |   | Treasury |   | controlling |   | Equity |
|                                                                                                 | Shares | Stock |   | Shares | Stock |   | Par Value |   | Deficit |   | (loss) |   | Stock |   | Interests |   | (Deficiency) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                           | 27,838 | $  889,000 |   | 19,661,172  | $    7,000 |   | $ 42,655,000  |   | $( 43,936,000) |   | $       25,000  |   | $              -  |   | $(   2,652,000) |   | $(   3,012,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net earnings (loss)                                                                | - | - |   | -  | - |   | -  |   | 2,863,000  |   | -  |    | -  |   | 8,000  |   | 2,871,000  |
|    Comprehensive income (loss):                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Foreign currency translation       adjustment | - | - |   | -  | - |   | -  |   | -  |   | (1,000) |   | -  |   | -  |   | (1,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive eanings (loss)                                                                   | - | - |   | -  | - |   | -  |    | -  |   | -  |    | -  |   | -  |   | 2,870,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation related to  employee stock options and bonuses                         | - | - |   | -  | - |   | 50,000  |   | -  |   | -  |   | -  |   | -  |   | 50,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution of settlement proceeds                                                                  | - | - |   | -  | - |   | -  |   | -  |   | -  |    | -  |   | (7,000) |   | (7,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of treasury stock                                                                           | - | - |   | (20,000) | - |   | -  |   | -  |   | -  |    | (35,000) |   | -  |   | (35,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of warrants                                                                                 | - | - |   | -  | - |   | 4,000  |   | -  |   | -  |    | -  |   | -  |   | 4,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of stock for warrants exercised                                                             | - | - |   | 172,382  | - |   | 51,000  |   | -  |   | -  |   | 35,000  |   | -  |   | 86,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of stock for options exercised                                                              | - | - |   | 25,800  | - |   | 20,000  |   | -  |   | -  |   | -  |   | -  |   | 20,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of shares pursuant to deferred   compensation plan                           | - | - |   | 132,268  | - |   | -  |   | -  |   | -  |   | -  |   | -  |   | -  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                                           |        27,838 |      889,000 |   | 19,971,622  |         7,000 |   |    42,780,000  |   | (  41,073,000) |   |                24,000  |   | $              -  |   | (   2,651,000) |   | (        24,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net earnings (loss) (unaudited)                                                    | - | - |   | -  | - |   | -  |   | (   1,747,000) |   | -  |   | -  |   | -  |   | (  1,747,000) |
|    Comprehensive income (loss) (unaudited):                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Foreign currency translation                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      adjustment (unaudited)                                                 | - | - |   | -  | - |   | -  |   | -  |   | -  |   | -  |   |   -  |   | -  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive earnings (loss)    (unaudited)                                    | - | - |   | -  | - |   | -  |   | -  |   | -  |   | -  |   | -  |   | (  1,747,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of warrants (unaudited)                                                                     | - | - |   | -  | - |   | 22,000  |   | -  |   | -  |   | -  |   | -  |   | 22,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation related to                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      employee stock options (unaudited)                                     | - | - |   | -  | - |   | 42,000  |    | -  |   | -  |   | -  |   | -  |   | 42,000  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2010 (unaudited)                                                                   | 27,838 | $  889,000 |   | 19,971,622  | $    7,000 |   | $ 42,844,000  |   | $( 42,820,000) |   | $      24,000  |   | $               -  |   | $(   2,651,000) |   | $(  1,707,000) |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements.                                                      |

----

| THE BEARD COMPANY AND SUBSIDIARIES                       |
|----------------------------------------------------------|
| Statements of Cash Flows                                 |
| (Unaudited)                                              |
|                                                     |   |   |   |   |   |   |
|                                                     |   |   |   | For the Six Months Ended |
|                                                     |   |   |   | June 30, 2010 |   | June 30, 2009 |
|                                                     |   |   |   |   |   |   |
| Net earnings (loss)                                      |   | $               (1,747,000) |   | $                 4,858,000  |
| Adjustments to reconcile net earnings (loss) to net cash |   |   |   |   |
|   used in operating activities:                |   |   |   |   |
|                                                     | Depreciation, depletion and amortization |   |                         38,000  |   |                         22,000  |
|                                                     | Depreciation, depletion and amortization of discontinued operations |   |                         15,000  |   |                         16,000  |
|                                                     | Gain on sale of assets |   |                                -  |   |                  (4,898,000) |
|                                                     | Equity in net loss of unconsolidated affiliates |   |                       150,000  |   |                         11,000  |
|                                                     | Non cash compensation expense and stock warrants |   |                         55,000  |   |                           4,000  |
|                                                     | Non cash interest expense |   |                               -  |   |                           4,000  |
|                                                     | Imputed interest income on long-term accounts receivable |   |                       (10,000) |   |                              -  |
|                                                     | Imputed interest expense on note payable |   |                         16,000  |   |                              -  |
|                                                     | Accretion of asset retirement obligation liability |   |                           4,000  |   |                              -  |
|                                                     | Net change in assets and liabilities of discontinued operations |   |                         99,000  |   |                         (8,000) |
|                                                     | Increase in accounts receivable, other |   |   |   |   |
|                                                     |   receivables, prepaid expenses and other current assets |   |                       444,000  |   |                         57,000  |
|                                                     | (Increase) decrease in inventories |   |                               -  |   |                              -  |
|                                                     | Decrease in trade accounts payable,  accrued expenses and other liabilities |   |                       (24,000) |   |                     (248,000) |
|                                                     |      Net cash used in operating activities |   |                     (960,000) |   |                     (182,000) |
|                                                     |   |   |   |   |   |   |
| Investing activities:                                    |   |   |   |   |
|                                                     | Acquisition of property, plant and equipment |   |                     (201,000) |   |                       (10,000) |
|                                                     | Acquisition of property, plant and equipment of discontinued operations |   |                         (2,000) |   |                         (7,000) |
|                                                     | Acquisition of intangibles |   |                         (8,000) |   |                              -  |
|                                                     | Proceeds from sale of assets |   |                               -  |   |                    5,148,000  |
|                                                     | Investments in unconsolidated affiliates |   |                               -  |   |                     (714,000) |
|                                                     |      Net cash provided by (used in) investing activities |   |                     (211,000) |   |                    4,417,000  |
|                                                     |   |   |   |   |   |   |
| Financing activities:                                    |   |   |   |   |
|                                                     | Proceeds from line of credit and term notes |   |                       590,000  |   |                       269,000  |
|                                                     | Proceeds from related party debt |   |                       222,000  |   |                         23,000  |
|                                                     | Payments on line of credit and term notes |   |                       (23,000) |   |                  (1,536,000) |
|                                                     | Payments on related party debt |   |                               -  |   |                       (70,000) |
|                                                     | Proceeds from exercise of stock options and warrants |   |                           9,000  |   |                         13,000  |
|                                                     | Distributions paid to noncontrolling interests |   |                               -  |   |                         (7,000) |
|                                                     |      Net cash provided by (used in) financing activities |   |                       798,000  |   |                  (1,308,000) |
|                                                     |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents     |   |                     (373,000) |   |                    2,927,000  |
|                                                     |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year           |   |                       629,000  |   |                       109,000  |
|                                                     |   |   |   |   |   |   |
| Cash and cash equivalents at end of period               |   | $                    256,000  |   | $                 3,036,000  |
|                                                     |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:       |   |   |   |   |
|                                                     | Interest paid |   | $                    113,000  |   | $                    201,000  |
|                                                     | Income taxes paid |   | $                      30,000 |   | $                      48,000  |
|                                                     |   |   |   |   |   |   |
| Noncash investing and financing activities:              |   |   |   |   |
|                                                     | Purchase of property, plant and equipment through issuance of debt obligations |   | $                    733,000  |   | $                      12,000  |
|                                                     | Note payable entered into on behalf of third-party working interest owners and billed |   |   |   |   |
|                                                     |   | out through current and long-term accounts receivables |   | $                    362,000  |   | $                                -  |
|                                                     | Asset Retirement Obligation incurred |   | $                      27,000  |   | $                                -  |
|                                                     |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |
| See accompanying notes to financial statements.          |   |   |   |   |
|                                                     |   |   |   |   |   |   |

----

----

| Option Grant Date | Expected volatility | Expected risk term in years | Risk-free interest rate | Expected dividend yield |
|-------------------|---------------------|-----------------------------|-------------------------|-------------------------|
| May 1, 2006       | 264.71%             | 4.75                        | 4.84%                   | 0%                      |
| May 22, 2009      | 368.70%             | 3.50                        | 2.50%                   | 0%                      |
| August 17, 2009   | 324.51%             | 3.50                        | 2.50%                   | 0%                      |
| August 31, 2009   | 317.48%             | 3.50                        | 2.50%                   | 0%                      |
| October 19, 2009  | 315.24%             | 3.50                        | 2.50%                   | 0%                      |
| May 4, 2010       | 234.91%             | 3.50                        | 2.50%                   | 0%                      |

|                                                         |    |           | Weighted Average |      |
|--------------------------------------------------------------|---------|----------------|------------------|-----------|
|                                                         |    | Weighted       | Remaining        | Average   |
|                                                         |    | Average        | Contractual Term | Intrinsic |
|                                                         | Shares  | Exercise Price | (Years)          | Value     |
| Options outstanding at December 31, 2009:                    | 190,200 | $2.178         | 9.46             | -         |
| Granted                                                      | 10,000  | $2.000         | 9.80             | -         |
| Exercised                                                    | -       | -              | -                | -         |
| Canceled                                                     | -       | -              | -                | -         |
| Options outstanding at June 30, 2010                         | 200,200 | $2.170         | 9.00             | -         |
| Options exercisable at June 30, 2010                         | 39,533  | $1.802         | 8.59             | -         |
| Options vested and options expected to vest at June 30, 2010 | 200,200 | $2.170         | 9.00             | -         |

----

|                               | Total                                  |   | Quoted Prices in ActiveMarkets for Identical Assets(Level 1) |   | Significant OtherObservable Inputs(Level 2)                                                              |   | Significant UnobservableInputs(Level 3)                                                                        |
|------------------------------------|----------------------------------------|--------|--------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|
|                               |                                   |   |                                                         |
|                               |                                   |   |                                                         |
| Cash and cash equivalents          | $     256,000 |   | $     256,000                       |   | $                 - |   | $                  - |
| Restricted Certificates of deposit | 50,000                                 |   | -                                                            |   | 50,000                                                                                                   |   | -                                                                                                              |
| Total                              | $     306,000 |   | $     256,000                       |   | $       50,000                                                        |   | $                  - |

----

----

----

|                                                                                        | For the ThreeMonths Ended |          | For the SixMonths Ended |
|---------------------------------------------------------------------------------------------|---------------------------|---------------|-------------------------|
|                                                                                        | June 30, 2010             | June 30, 2009 |                    | June 30, 2010 | June 30, 2009 |
| Basic EPS:                                                                                  |                      |          |                    |   |   |
|  Weighted average common shares outstanding                                            | 19,971,622                | 19,824,914    |                    | 19,971,622 | 19,811,214 |
|  Shares in deferred stock compensation plans treated as common stock equivalents       | 132,267                   | -             |                    | 132,267 | 1,096 |
|                                                                                        | 20,103,889                | 19,824,914    |                    | 20,103,889 | 19,812,310 |
| Diluted EPS:                                                                                |                      |          |                    |   |   |
|  Weighted average common shares outstanding                                            | 19,971,622                | 19,824,914    |                    | 19,971,622 | 19,811,214 |
|  Shares in deferred stock compensation plans treated as common stock equivalents       | 132,267                   | -             |                    | 132,267 | 1,096 |
|  Convertible debt amounts considered to be common stock equivalents                    | -                         | 391,112       |                    | - | 391,112 |
|  Convertible Preferred Shares considered to be common stock equivalents                | -                         | 592,636       |                    | - | 592,636 |
|  Employee stock options considered to be common stock equivalents                      | -                         | 30,000        |                    | - | 30,000 |
|  Stock options to third parties considered to be common stock equivalents              | -                         | 80,000        |                    | - | 80,000 |
|  Warrants issued in connection with debt offerings treated as common stock equivalents | -                         | 167,908       |                    | - | 167,908 |
|                                                                                        | 20,103,889                | 21,086,570    |                    | 20,103,889 | 21,073,966 |

----

|                                             | ExpirationDate | Amount                               |
|--------------------------------------------------|----------------|--------------------------------------|
| Federal regular tax operating loss carryforwards | 2021-2029      | $     4,615 |
| Tax depletion carryforward                       | Indefinite     | $     3,450 |

| Investments and other assets consisted of the following: | For the Periods Ended                 |
|----------------------------------------------------------|---------------------------------------|
|                                                     | June 30, 2010                         |   | December 31, 2009 |
|                                                     |                                  |   |   |
| Investment in real estate limited partnership            | $     13,000 |   | $     13,000 |
| Investment in and Advances to Geohedral, LLC             | 72,000                                |   | 222,000 |
| Other assets                                             | 75,000                                |   | 64,000 |
|                                                     | $   160,000            |   | $   299,000 |

----

----

|                                        |   | CarbonDioxide |   | e-Commerce |   | Oil & Gas |   | Totals      |
|---------------------------------------------|--------|---------------|--------|------------|--------|---------------|--------|-------------|
| Three months ended June 30, 2010            |   |          |   |       |   |          |   |        |
| Revenues from external  customers | $      | 7             | $      | -          | $      | 97       | $      | 104    |
| Segment profit (loss)                       |   | 2             |   | -          |   | (97)          |   | (95)        |
|                                        |   |          |   |       |   |          |   |        |
| Three months ended June 30, 2009            |   |          |   |       |   |          |   |        |
| Revenues from external customers            | $      | 5             | $      | -          | $      | 37       | $      | 42     |
| Segment profit (loss)                       |   | 1             |   | 767        |   | 21       |   | 789    |
|                                        |   |          |   |       |   |          |   |        |
| Six months ended June 30, 2010              |   |          |   |       |   |          |   |        |
| Revenues from external customers            | $      | 13            | $      | 1          | $      | 230      | $      | 244    |
| Segment profit (loss)                       |   | 4             |   | 1          |   | (143)         |   | (138)       |
| Segment assets                              |   | 5             |   | -          |   | 3,572    |   | 3,577  |
|                                        |   |          |   |       |   |          |   |        |
| Six months ended June 30, 2009              |   |          |   |       |   |          |   |        |
| Revenues from external customers            | $      | 285           | $      | 3          | $      | 60       | $      | 348    |
| Segment profit (loss)                       |   | 247           |   | 742        |   | 25       |   | 1,014  |
| Segment assets                              |   | 1             |   | 3          |   | 309      |   | 313    |

|                                                                             | For the Three Months Ended    |   | For the Six Months Ended     |
|----------------------------------------------------------------------------------|-------------------------------|--------|------------------------------|
|                                                                             | June 30, 2010                 |   | June 30, 2009                |   | June 30, 2010 |   | June 30, 2009 |
|                                                                             |                          |   |                         |   |   |   |   |
| Total earnings (loss) for reportable segments                                    | $    (95) |   | $    789 |   | $    (138) |   | $ 1,014 |
| Net corporate earnings (expenses) not allocated to segments                      | (708)                         |   | 4,602                        |   | (1,303) |   | 4,241 |
| Total consolidated earnings (loss) for continuing operations before income taxes | $  (803)            |   | $ 5,391                 |   | $ (1,441) |   | $ 5,255 |

----

----

| Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations |   |
|----------------------------------------------------------------------------------------------------------------|--------|

----

----

|                      |   | June 30, 2010 |   | December 31, 2009 |   | Increase(Decrease) |
|---------------------------|--------|---------------|--------|-------------------|--------|--------------------|
|                      |   |          |   |              |   |               |
| Cash and cash equivalents | $      | 256,000  | $      | 629,000           | $      | 373,000       |
|                      |   |          |   |              |   |               |
| Working capital           | $      | (1,589,000)   | $      | 883,000           | $      | (2,472,000)        |
|                      |   |          |   |              |   |               |
| Current ratio             |   | 0.58 to 1     |   | 1.47 to 1         |   |               |

----

|                             | 2010                        | 2009                                  |
|----------------------------------|-----------------------------|---------------------------------------|
| Operating profit (loss):         |                        |                                  |
|    Oil & gas  | $   (90,000) | $    21,000  |
|    Carbon dioxide | 3,000                  | 1,000                            |
|    e-Commerce     | -                      | (27,000)                              |
| Subtotal                         | (87,000)                    | (5,000)                               |
|    Other          | (553,000)                   | (255,000)                             |
| Total                            | $ (640,000)            | $ (260,000)                      |

----

----

|                       | 2010                               |   | 2009                                        |
|----------------------------|------------------------------------|--------|---------------------------------------------|
| Operating profit (loss):   |                               |   |                                        |
|   Oil & gas  | $    (133,000) |   | $     23,000  |
|   Carbon dioxide | 5,000                         |   | 247,000                                |
|   e-Commerce     | 1,000                         |   | (52,000)                                    |
| Subtotal                   | (127,000)                          |   | 218,000                                |
|   Other          | (1,036,000)                        |   | (530,000)                                   |
| Total                      | $ (1,163,000)                 |   | $  (312,000)                      |

----

----

----

----

| 3.1         | Restated Certificate of Incorporation of Registrant as filed with the Secretary of State of Oklahoma on September 20, 2000.  (This Exhibit has been previously filed as Exhibit 3(i) to Registrant’s Form 10-Q for the period ended September 30, 2000, filed on November 20, 2000, and same is incorporated herein by reference).                                                                                                                                         |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2         | Amended Certificate of Incorporation of Registrant as filed with the Secretary of State of Oklahoma on July 20, 2004, effective on the close of business August 6, 2004.  (This Exhibit has been previously filed as Exhibit 3.2 to Registrant’s Form 10-K for the period ended December 31, 2005, filed on April 17, 2006.                                                                                                                                                |
| 3.3         | Registrant’s By-Laws as currently in effect.  (This Exhibit has been previously filed as Exhibit 3(ii) to Registrant’s Form 10-K for the period ended December 31, 1997, filed on March 31, 1998, and same is incorporated herein by reference).                                                                                                                                                                                                                     |
| 4           | Instruments defining the rights of security holders:                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.1         | Certificate of Designations, Powers, Preferences and Relative, Participating, Option and Other Special Rights, and the Qualifications, Limitations or Restrictions Thereof of the Series A Convertible Voting Preferred Stock of the Registrant.  (This Exhibit has been previously filed as Exhibit 3(c) to Amendment No. 2, filed on September 17, 1993 to Registrant's Registration Statement on Form S-4, File No. 33-66598, and same is incorporated herein by reference).  |
|  10    |  Material Contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  10.23 |  Letter Agreement dated May 28, 2010 between Royal Energy, LLC and The Beard Company, re purchase of interests in Dilworth Field.  (This exhibit has been previously filed as Exhbiit 10.23 to Form 8-K filed June 4, 2010, and same is incorporated herein by reference).                                                                                                                                                                                                       |
| 31          | Rule 13a-14(a)/15d-14(a) Certifications:                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.1        | Chief Executive Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a).                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.2        | Chief Financial Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a).                                                                                                                                                                                                                                                                                                                                                                                                        |

----

| 32   | Section 1350 Certifications:                                                                                                                                   |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32.1 | Chief Executive Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.  |
| 32.2 | Chief Financial Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.  |

|                              | (Registrant)   THE BEARD COMPANY          |
|-----------------------------------|----------------------------------------------------------|
|                              |                                                     |
|                              | /s/  Herb Mee, Jr.                             |
| (Date)  August 23, 2010 | Herb Mee, Jr., President and Chief Financial Officer     |
|                              |                                                     |
|                              | /s/  Jack A. Martine                           |
| (Date)  August 23, 2010 | Jack A. Martine, Controller and Chief Accounting Officer |

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit No.       | Description | Method of Filing |
|              |   |   |
| 3.1               | Restated Certificate of Incorporation of Registrant as filed with the Secretary of State of Oklahoma on September 20, 2000. | Incorporated herein by reference |
|              |   |   |
| 3.2               | Amended Certificate of Incorporation of Registrant as filed with the Secretary of State of Oklahoma on July 20, 2004, effective on the close of business August 6, 2004. | Incorporated herein by reference |
|              |   |   |
| 3.3               | Registrant’s By-Laws as currently in effect. | Incorporated herein by reference |
|              |   |   |
| 4.1               | Certificate of Designations, Powers, Preferences and Relative, Participating, Option and Other Special Rights, and the Qualifications, Limitations or Restrictions Thereof of the Series A Convertible Voting Preferred Stock of the Registrant. | Incorporated herein by reference |
|              |   |   |
|  10.23       | Letter Agreement dated May 28, 2010 between Royal Energy, LLC and The Beard Company, re purchase of interests in Dilworth Field.  |  Incorporated herein by reference |
|              |   |   |
| 31.1              | Chief Executive Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a). | Filed herewith electronically |

----

|   |                                                                                                                                                     |                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
| 31.2   | Chief Financial Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a).                                                                      | Filed herewith electronically |
|   |                                                                                                                                                     |                          |
| 32.1   | Chief Executive Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. | Filed herewith electronically |
|   |                                                                                                                                                     |                          |
| 32.2   | Chief Financial Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. | Filed herewith electronically |

----