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| California                                                     | 95-4249240                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 28040 West Harrison Parkway, Valencia, California              | 91355-4162                           |
| (Address of principal executive offices)                       | (Zip Code)                           |

| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer o(Do not check if a smaller reporting company) |   | Smaller reporting company ý |
|------------------------------------------|--------|-------------------------------|--------|--------------------------------------------------------------------------------|--------|----------------------------------|

| Class                                 |   | Outstanding on July 31, 2010 |
|---------------------------------------|--------|------------------------------|
| Class A common stock, $.001 par value |   | 4,777,144                    |
| Class B common stock, $.001 par value |   | 762,612                      |

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TAITRON 

|                           | FORM 10-Q                                                                                                                  |   |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------|
|                           | June 30, 2010                                                                                                              |   |
|                           | INDEX                                                                                                                      |   |
|                           |                                                                                                                       | Page   |
| PART I - FINANCIAL INFORMATION |                                                                                                                       |
|                           |                                                                                                                       |   |
| Item 1.                        | Financial Statements (unaudited)                                                                                           |   |
|                           | Condensed Consolidated Balance Sheets at June 30, 2010 and December 31, 2009                                               | 1      |
|                           | Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2010 and 2009                  | 2      |
|                           | Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2010 and 2009 | 3      |
|                           | Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2010 and 2009                            | 4      |
|                           | Notes to Condensed Consolidated Financial Statements                                                                       | 5      |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                | 8      |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                                                 | 10     |
| Item 4.                        | Controls and Procedures                                                                                                    | 10     |
|                           |                                                                                                                       |   |
| PART II - OTHER INFORMATION    |                                                                                                                       |
|                           |                                                                                                                       |   |
| Item 1.                        | Legal proceedings                                                                                                          | 11     |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                                                | 11     |
| Item 3.                        | Defaults Upon Senior Securities                                                                                            | 11     |
| Item 4.                        | [Removed and Reserved]                                                                                                     | 11     |
| Item 5.                        | Other Information                                                                                                          | 11     |
| Item 6.                        | Exhibits                                                                                                                   | 11     |
|                           | Signatures                                                                                                                 | 11     |

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Index

PART 

|                                                                                                                     |   | June 30,    |       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|-------------------|--------|
|                                                                                                                     |   | 2010        |       |   | 2009              |   |
| Assets                                                                                                                   |   | (Unaudited) |       |   |              |   |
| Current assets:                                                                                                          |   |        |       |   |              |   |
| Cash and cash equivalents                                                                                                |   | $           | 3,518,000  |   |              | $      | 2,768,000 |   |
| Restricted cash (Note 4)                                                                                                 |   |        | 200,000    |   |              |   | 100,000 |   |
| Trade accounts receivable, net                                                                                           |   |        | 1,016,000  |   |              |   | 621,000 |   |
| Inventory, net                                                                                                           |   |        | 12,080,000 |   |              |   | 12,307,000 |   |
| Prepaid expenses and other current assets                                                                                |   |        | 89,000     |   |              |   | 245,000 |   |
| Total current assets                                                                                                     |   |        | 16,903,000 |   |              |   | 16,041,000 |   |
| Property and equipment, net                                                                                              |   |        | 5,072,000  |   |              |   | 5,135,000 |   |
| Other assets (Note 5)                                                                                                    |   |        | 258,000    |   |              |   | 244,000 |   |
| Total assets                                                                                                             |   | $           | 22,233,000 |   |              | $      | 21,420,000 |   |
|                                                                                                                     |   |        |       |   |              |   |   |   |
| Liabilities and Shareholders’ Equity                                                                               |   |        |       |   |              |   |   |   |
| Current liabilities:                                                                                                     |   |        |       |   |              |   |   |   |
| Trade accounts payable                                                                                                   |   | $           | 1,086,000  |   |              | $      | 615,000 |   |
| Accrued liabilities                                                                                                      |   |        | 310,000    |   |              |   | 303,000 |   |
| Current portion of long-term debt (Note 6)                                                                               |   |        | 1,500,000  |   |              |   | - |   |
| Total current liabilities                                                                                                |   |        | 2,896,000  |   |              |   | 918,000 |   |
| Long-term debt (Note 6)                                                                                                  |   |        | -          |   |              |   | 1,000,000 |   |
| Total liabilities                                                                                                        |   |        | 2,896,000  |   |              |   | 1,918,000 |   |
|                                                                                                                     |   |        |       |   |              |   |   |   |
| Commitments and contingencies (Notes 6, 8 and 12)                                                                        |   |        |       |   |              |   |   |   |
|                                                                                                                     |   |        |       |   |              |   |   |   |
| Shareholders’ equity:                                                                                              |   |        |       |   |              |   |   |   |
| Preferred stock, $0.001 par value.  Authorized 5,000,000 shares; None issued or outstanding                    |   |        | -          |   |              |   | - |   |
| Class A common stock, $0.001 par value.  Authorized 20,000,000 shares; 4,777,144 shares issued and outstanding |   |        | 5,000      |   |              |   | 5,000 |   |
| Class B common stock, $0.001 par value.  Authorized, issued and outstanding 762,612 shares                     |   |        | 1,000      |   |              |   | 1,000 |   |
| Additional paid-in capital                                                                                               |   |        | 10,600,000 |   |              |   | 10,594,000 |   |
| Accumulated other comprehensive income                                                                                   |   |        | 95,000     |   |              |   | 96,000 |   |
| Retained earnings                                                                                                        |   |        | 8,424,000  |   |              |   | 8,587,000 |   |
| Minority interest in subsidiary                                                                                          |   |        | 212,000    |   |              |   | 219,000 |   |
| Total shareholders’ equity                                                                                         |   |        | 19,337,000 |   |              |   | 19,502,000 |   |
| Total liabilities and shareholders’ equity                                                                         |   | $           | 22,233,000 |   |              | $      | 21,420,000 |   |

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Index

TAITRON 

|                                                                       |   | Three Months Ended June 30, |      |   | Six Months Ended June 30, |   |
|----------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                                                                       |   | 2010                        |      |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                                       |   | (Unaudited)                 |      |   | (Unaudited)               |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |
| Net sales                                                                  |   | $                           | 1,776,000 |   |                      | $      | 1,363,000 |   |   | $ | 3,426,000 |   |   | $ | 2,627,000 |   |
| Cost of goods sold                                                         |   |                        | 1,220,000 |   |                      |   | 1,042,000 |   |   |   | 2,408,000 |   |   |   | 2,040,000 |   |
| Gross profit                                                               |   |                        | 556,000   |   |                      |   | 321,000 |   |   |   | 1,018,000 |   |   |   | 587,000 |   |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                               |   |                        | 652,000   |   |                      |   | 610,000 |   |   |   | 1,248,000 |   |   |   | 1,237,000 |   |
| Operating loss                                                             |   |                        | (96,000   | )      |                      |   | (289,000 | ) |   |   | (230,000 | ) |   |   | (650,000 | ) |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                                      |   |                        | (11,000   | )      |                      |   | (4,000 | ) |   |   | (20,000 | ) |   |   | (3,000 | ) |
| Other income, net                                                          |   |                        | 48,000    |   |                      |   | 21,000 |   |   |   | 90,000 |   |   |   | 48,000 |   |
| Loss before income taxes                                                   |   |                        | (59,000   | )      |                      |   | (272,000 | ) |   |   | (160,000 | ) |   |   | (605,000 | ) |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit (provision)                                             |   |                        | 4,000     |   |                      |   | (1,000 | ) |   |   | (3,000 | ) |   |   | (2,000 | ) |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                   |   |                        | (55,000   | )      |                      |   | (273,000 | ) |   |   | (163,000 | ) |   |   | (607,000 | ) |
| Net loss attributable to noncontrolling interest in subsidiary             |   |                        | (11,000   | )      |                      |   | (12,000 | ) |   |   | (6,000 | ) |   |   | (14,000 | ) |
| Net loss attributable to Taitron Components Inc.                           |   | $                           | (44,000   | )      |                      | $      | (261,000 | ) |   | $ | (157,000 | ) |   | $ | (593,000 | ) |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share:  Basic & Diluted                         |   | $                           | (0.01     | )      |                      | $      | (0.06 | ) |   | $ | (0.03 | ) |   | $ | (0.06 | ) |
|                                                                       |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:  Basic & Diluted |   |                        | 5,539,756 |   |                      |   | 5,539,756 |   |   |   | 5,539,756 |   |   |   | 5,539,756 |   |

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Index

TAITRON 

|                                                                      |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|---------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                                                      |   | 2010                        |    |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
|                                                                      |   | (Unaudited)                 |    |   | (Unaudited)               |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                      |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Net loss                                                                  |   | $                           | (55,000 | )      |                      | $      | (273,000 | ) |   | $ | (163,000 | ) |   | $ | (607,000 | ) |
|                                                                      |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive (loss)income:                                         |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                   |   |                        | (3,000  | )      |                      |   | 12,000 |   |   |   | (1,000 | ) |   |   | 6,000 |   |
|                                                                      |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                                        |   |                        | (58,000 | )      |                      |   | (261,000 | ) |   |   | (164,000 | ) |   |   | (601,000 | ) |
|                                                                      |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to noncontrolling interest in subsididary |   |                        | (7,000  | )      |                      |   | (6,000 | ) |   |   | (10,000 | ) |   |   | (12,000 | ) |
|                                                                      |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to Taitron Components Inc.                |   | $                           | (51,000 | )      |                      | $      | (255,000 | ) |   | $ | (154,000 | ) |   | $ | (589,000 | ) |

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Index

TAITRON 

|                                                                            |   | Six Months Ended June 30, |      |
|---------------------------------------------------------------------------------|--------|---------------------------|-----------|
|                                                                            |   | 2010                      |      |   | 2009 |   |
|                                                                            |   | (Unaudited)               |      |   | (Unaudited) |   |
| Cash flows from operating activities:                                           |   |                      |      |   |   |   |
| Net loss                                                                        |   | $                         | (163,000  | ) |   | $ | (593,000 | ) |
|                                                                            |   |                      |      |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |                      |      |   |   |   |   |   |
| Depreciation and amortization                                                   |   |                      | 106,000   |   |   |   | 107,000 |   |
| Provision for sales returns and doubtful accounts                               |   |                      | 3,000     |   |   |   | 34,000 |   |
| Stock based compensation                                                        |   |                      | 6,000     |   |   |   | 13,000 |   |
| Noncontrolling interest in subsidiary                                           |   |                      | (7,000    | ) |   |   | (11,000 | ) |
| Changes in assets and liabilities:                                              |   |                      |      |   |   |   |   |   |
| Restricted cash                                                                 |   |                      | (100,000  | ) |   |   | (100,000 | ) |
| Trade accounts receivable                                                       |   |                      | (398,000  | ) |   |   | 49,000 |   |
| Inventory                                                                       |   |                      | 227,000   |   |   |   | 997,000 |   |
| Prepaid expenses and other current assets                                       |   |                      | 156,000   |   |   |   | 28,000 |   |
| Trade accounts payable                                                          |   |                      | 471,000   |   |   |   | (254,000 | ) |
| Accrued liabilities                                                             |   |                      | 7,000     |   |   |   | 2,000 |   |
| Total adjustments                                                               |   |                      | 471,000   |   |   |   | 865,000 |   |
| Net cash provided by operating activities                                       |   |                      | 308,000   |   |   |   | 272,000 |   |
|                                                                            |   |                      |      |   |   |   |   |   |
| Cash flows from investing activities:                                           |   |                      |      |   |   |   |   |   |
| Acquisition of property & equipment                                         |   |                      | (43,000   | ) |   |   | (43,000 | ) |
| Other assets                                                                    |   |                      | (14,000   | ) |   |   | (19,000 | ) |
| Net cash used in investing activities                                           |   |                      | (57,000   | ) |   |   | (62,000 | ) |
|                                                                            |   |                      |      |   |   |   |   |   |
| Cash flows from financing activities:                                           |   |                      |      |   |   |   |   |   |
| Borrowings on notes payable                                                     |   |                      | 500,000   |   |   |   | 500,000 |   |
| Payments on notes payable                                                       |   |                      | -         |   |   |   | (421,000 | ) |
| Dividend payments                                                               |   |                      | -         |   |   |   | (276,000 | ) |
| Net cash provided by (used in) financing activities                             |   |                      | 500,000   |   |   |   | (197,000 | ) |
| Impact of exchange rates on cash                                                |   |                      | (1,000    | ) |   |   | 6,000 |   |
|                                                                            |   |                      |      |   |   |   |   |   |
| Net increase in cash and cash equivalents                                       |   |                      | 750,000   |   |   |   | 19,000 |   |
| Cash and cash equivalents, beginning of period                                  |   |                      | 2,768,000 |   |   |   | 1,762,000 |   |
| Cash and cash equivalents, end of year                                          |   | $                         | 3,518,000 |   |   | $ | 1,781,000 |   |
|                                                                            |   |                      |      |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                              |   |                      |      |   |   |   |   |   |
| Cash paid for interest                                                          |   | $                         | 20,000    |   |   | $ | 14,000 |   |
| Cash paid for income taxes, net                                                 |   | $                         | 7,000     |   |   | $ | 1,000 |   |

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Index

TAITRON 

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Index

|                        |   | June 30,    |    |   | December 31, |   |
|-----------------------------|--------|-------------|---------|--------|-------------------|--------|
|                        |   | 2010        |    |   | 2009              |   |
|                        |   | (Unaudited) |    |   |              |   |
|                        |   |        |    |   |              |   |
| Investment in securitites   |   | $           | 68,000  |   |              | $      | 68,000 |   |
| Investment in joint venture |   |        | 147,000 |   |              |   | 147,000 |   |
| Other                       |   |        | 43,000  |   |              |   | 29,000 |   |
| Other Assets                |   | $           | 258,000 |   |              | $      | 244,000 |   |

|                                    |   | June 30,    |       |   | December 31, |   |
|-----------------------------------------|--------|-------------|------------|--------|-------------------|--------|
|                                    |   | 2010        |       |   | 2009              |   |
|                                    |   | (Unaudited) |       |   | (Unaudited)       |   |
|                                    |   |        |       |   |              |   |
| Secured credit facility - related party |   |        | 1,500,000  |   |              |   | 1,000,000 |   |
| Less current portion                    |   |        | (1,500,000 | )      |              |   | - |   |
| Long-term debt, less current portion    |   | $           | -          |   |              | $      | 1,000,000 |   |

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Index

|                             |   | Number of Shares |    |   | Weighted Average Exercise Price |   |   | Weighted Average Years Remaining Contractual Term |   |   | Aggregate Intrinsic Value |   |
|----------------------------------|--------|------------------|---------|--------|---------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------|--------|
|                             |   |             |    |   |                            |   |   |                                              |   |   |                      |   |
| Outstanding at December 31, 2009 |   |             | 395,500 |   |                            | $      | 1.75   |                                              |   |   | 4.3                       |   |   | $ | 19,000 |   |
| Outstanding at June 30, 2010     |   |             | 364,500 |   |                            | $      | 1.62   |                                              |   |   | 3.9                       |   |   |   | 22,600 |   |
| Exercisable at June 30, 2010     |   |             | 315,499 |   |                            | $      | 1.69   |                                              |   |   | 3.5                       |   |   |   | 13,500 |   |

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Index

Item 

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Index

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Index

Item 

Item 

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Index

PART 

Item 

Item 

Item 4.  [Removed and Reserved]

Item 

Item 

| ExhibitNumber |   | Description of Document                                                                                                                           |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                        |
| 31.1 *        |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                         |
| 31.2 *        |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                         |
| 32 *          |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 USC. Section 1350). |
| *             |   | Filed herewith.                                                                                                                                             |

SIGNATURES

|                             | TAITRON COMPONENTS INCORPORATED       |
|----------------------------------|---------------------------------------|
|                             |                                  |
| Date:  August 16, 2010 | /s/ Stewart Wang                      |
|                             | Stewart Wang,                         |
|                             | Chief Executive Officer and President |
|                             | (Principal Executive Officer)         |
|                             |                                  |
|                             | /s/ David Vanderhorst                 |
|                             | David Vanderhorst                     |
|                             | Chief Financial Officer and Secretary |
|                             | (Principal Financial Officer)         |

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