----

----

| Nevada                          | 41-2118656                           |
|---------------------------------|--------------------------------------|
| (State or Other Jurisdiction of | (I.R.S. Employer Identification No.) |
| Incorporation or Organization)  |                                 |

| 4452 Beltway DriveAddison, Texas         | 75001      |
|------------------------------------------|------------|
| (Address of Principal Executive Offices) | (Zip Code) |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ |
|---------------------------|---------------------|-------------------------|----------------------------------|

----

ULURU Inc.

|     |                                                                                                                        |   | Page   |   |
|----------|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART I   | FINANCIAL INFORMATION                                                                                                       |   |   |   |
|     |                                                                                                                        |   |   |   |
| Item 1.  | Financial Statements.                                                                                                       |   |   | 3      |   |
|     |                                                                                                                        |   |   |   |   |
|     | Condensed Consolidated Balance Sheets as of September 30, 2010 (unaudited) and December 31, 2009 (audited)                  |   |   | 3      |   |
|     | Condensed Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2010 and 2009 |   |   | 4      |   |
|     | Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2010 and 2009           |   |   | 5      |   |
|     | Notes to Condensed Consolidated Financial Statements (unaudited)                                                            |   |   | 6      |   |
|     |                                                                                                                        |   |   |   |   |
| Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations.                                      |   |   | 19     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk.                                                                 |   |   | 29     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 4.  | Controls and Procedures.                                                                                                    |   |   | 29     |   |
|     |                                                                                                                        |   |   |   |   |
| PART II  | OTHER INFORMATION                                                                                                           |   |   |   |   |
|     |                                                                                                                        |   |   |   |   |
| Item 1.  | Legal Proceedings.                                                                                                          |   |   | 30     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 1A. | Risk Factors.                                                                                                               |   |   | 30     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds.                                                                |   |   | 30     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 3.  | Defaults Upon Senior Securities.                                                                                            |   |   | 30     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 4.  | (Removed and Reserved).                                                                                                     |   |   | 30     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 5.  | Other Information.                                                                                                          |   |   | 30     |   |
|     |                                                                                                                        |   |   |   |   |
| Item 6.  | Exhibits.                                                                                                                   |   |   | 31     |   |
|     |                                                                                                                        |   |   |   |   |
|     | Signatures                                                                                                                  |   |   | 31     |   |
|     |                                                                                                                        |   |   |   |   |

----

Table of Contents

PART I – FINANCIAL INFORMATION

| ITEM 1. | Financial Statements. |
|---------|-----------------------|

ULURU Inc.

|                                                                                                              |   | September 30, 2010 |        |   | December 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                                                                                                              |   | (Unaudited)        |        |   | (Audited)         |   |
| ASSETS                                                                                                            |   |               |        |   |              |   |
| Current Assets                                                                                                    |   |               |        |   |              |   |
| Cash and cash equivalents                                                                                         |   | $                  | 1,320,021   |   |              | $      | 1,934,177 |   |
| Accounts receivable                                                                                               |   |               | 72,873      |   |              |   | 218,256 |   |
| Other receivable – current portion                                                                          |   |               | 369,574     |   |              |   | --- |   |
| Inventory                                                                                                         |   |               | 909,773     |   |              |   | 1,008,998 |   |
| Prepaid expenses and deferred charges                                                                             |   |               | 231,820     |   |              |   | 383,419 |   |
| Total Current Assets                                                                                              |   |               | 2,904,061   |   |              |   | 3,544,850 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| Property, Equipment and Leasehold Improvements, net                                                               |   |               | 1,452,504   |   |              |   | 1,631,557 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| Other Assets                                                                                                      |   |               |        |   |              |   |   |   |
| Intangible assets, net                                                                                            |   |               | 5,598,021   |   |              |   | 8,183,146 |   |
| Other receivable, net of current portion                                                                          |   |               | 237,326     |   |              |   | --- |   |
| Deposits                                                                                                          |   |               | 18,069      |   |              |   | 20,819 |   |
| Total Other Assets                                                                                                |   |               | 5,853,416   |   |              |   | 8,203,965 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| TOTAL ASSETS                                                                                                      |   | $                  | 10,209,981  |   |              | $      | 13,380,372 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                              |   |               |        |   |              |
| Current Liabilities                                                                                               |   |               |        |   |              |   |   |   |
| Accounts payable                                                                                                  |   | $                  | 777,207     |   |              | $      | 617,443 |   |
| Accrued liabilities                                                                                               |   |               | 265,580     |   |              |   | 215,431 |   |
| Deferred revenue – current portion                                                                          |   |               | 106,555     |   |              |   | 96,897 |   |
| Total Current Liabilities                                                                                         |   |               | 1,149,342   |   |              |   | 929,771 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| Long Term Liabilities                                                                                             |   |               |        |   |              |   |   |   |
| Deferred revenue, net of current portion                                                                          |   |               | 1,461,902   |   |              |   | 1,272,843 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| TOTAL LIABILITIES                                                                                                 |   |               | 2,611,244   |   |              |   | 2,202,614 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                     |   |               | ---         |   |              |   | --- |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                              |   |               |        |   |              |   |   |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| Preferred stock - $0.001 par value; 20,000 shares authorized;                                                     |   |               |        |   |              |   |   |   |
| no shares issued and outstanding                                                                                  |   |               | ---         |   |              |   | --- |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| Common Stock - $0.001 par value; 200,000,000 shares authorized;                                                   |   |               |        |   |              |   |   |   |
| 82,117,230 and 76,813,886 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively |   |               | 82,117      |   |              |   | 76,814 |   |
| Additional paid-in capital                                                                                        |   |               | 48,075,763  |   |              |   | 46,923,499 |   |
| Accumulated deficit                                                                                               |   |               | (40,559,143 | )      |              |   | (35,822,555 | ) |
| TOTAL STOCKHOLDERS’ EQUITY                                                                                  |   |               | 7,598,737   |   |              |   | 11,177,758 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                        |   | $                  | 10,209,981  |   |              | $      | 13,380,372 |   |
|                                                                                                              |   |               |        |   |              |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                           |   |

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Table of Contents

ULURU Inc.

|                                                                                    |   | Three Months Ended September 30, |        |   | Nine Months Ended September 30, |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|--------|--------------------------------------|--------|
|                                                                                    |   | 2010                                  |        |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| REVENUES                                                                                |   |                                  |        |   |                                 |   |   |   |   |   |   |   |
| License fees                                                                            |   | $                                     | 4,370       |   |                                 | $      | 22,979 |   |   | $ | 150,283 |   |   | $ | 72,555 |   |
| Royalty income                                                                          |   |                                  | 23,104      |   |                                 |   | 61,727 |   |   |   | 132,473 |   |   |   | 204,830 |   |
| Product sales, net                                                                      |   |                                  | 34,143      |   |                                 |   | 39,528 |   |   |   | 245,725 |   |   |   | 119,482 |   |
| Other                                                                                   |   |                                  | ---         |   |                                 |   | 6,000 |   |   |   | --- |   |   |   | 38,190 |   |
| Total Revenues                                                                          |   |                                  | 61,617      |   |                                 |   | 130,234 |   |   |   | 528,481 |   |   |   | 435,057 |   |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES                                                                      |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                                      |   |                                  | 6,416       |   |                                 |   | 7,785 |   |   |   | 143,259 |   |   |   | 22,783 |   |
| Research and development                                                                |   |                                  | 295,781     |   |                                 |   | 376,191 |   |   |   | 948,960 |   |   |   | 2,006,070 |   |
| Selling, general and administrative                                                     |   |                                  | 666,205     |   |                                 |   | 981,212 |   |   |   | 2,405,123 |   |   |   | 5,041,318 |   |
| Amortization of intangible assets                                                       |   |                                  | 206,454     |   |                                 |   | 272,102 |   |   |   | 699,252 |   |   |   | 807,551 |   |
| Depreciation                                                                            |   |                                  | 79,073      |   |                                 |   | 46,424 |   |   |   | 179,053 |   |   |   | 126,002 |   |
| Total Costs and Expenses                                                                |   |                                  | 1,253,929   |   |                                 |   | 1,683,714 |   |   |   | 4,375,647 |   |   |   | 8,003,724 |   |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING (LOSS)                                                                        |   |                                  | ( 1,192,312 | )      |                                 |   | ( 1,553,480 | ) |   |   | (3,847,166 | ) |   |   | (7,568,667 | ) |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)                                                                  |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest and miscellaneous income                                                       |   |                                  | 4,840       |   |                                 |   | 6,676 |   |   |   | 5,555 |   |   |   | 42,296 |   |
| Interest expense                                                                        |   |                                  | (20,650     | )      |                                 |   | (1,926 | ) |   |   | (37,138 | ) |   |   | (1,926 | ) |
| Loss on sale of intangible asset                                                        |   |                                  | ---         |   |                                 |   | --- |   |   |   | ( 857,839 | ) |   |   | --- |   |
| Loss on sale of equipment                                                               |   |                                  | ---         |   |                                 |   | --- |   |   |   | --- |   |   |   | (2,121 | ) |
| (LOSS) BEFORE INCOME TAXES                                                              |   |                                  | (1,208,122  | )      |                                 |   | ( 1,548,730 | ) |   |   | (4,736,588 | ) |   |   | (7,530,418 | ) |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                            |   |                                  | ---         |   |                                 |   | --- |   |   |   | --- |   |   |   | --- |   |
| NET (LOSS)                                                                              |   | $                                     | (1,208,122  | )      |                                 | $      | (1,548,730 | ) |   | $ | (4,736,588 | ) |   | $ | (7,530,418 | ) |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net (loss) per common share                                           |   | $                                     | (0.01       | )      |                                 | $      | (0.02 | ) |   | $ | (0.06 | ) |   | $ | (0.11 | ) |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                    |   |                                  | 82,084,316  |   |                                 |   | 66,038,079 |   |   |   | 81,346,138 |   |   |   | 65,723,998 |   |
|                                                                                    |   |                                  |        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

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ULURU Inc.

|                                                                                        |   | Nine Months Ended September 30, |       |
|---------------------------------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                                                        |   | 2010                            |       |   | 2009 |   |
| OPERATING ACTIVITIES :                                                                      |   |                            |       |   |   |   |
| Net (loss)                                                                                  |   | $                               | (4,736,588 | ) |   | $ | (7,530,418 | ) |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Adjustments to reconcile net (loss) to net cash (used in) provided by operating activities: |   |                            |       |   |   |   |   |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Amortization of intangible assets                                                           |   |                            | 699,252    |   |   |   | 807,551 |   |
| Depreciation                                                                                |   |                            | 179,053    |   |   |   | 140,702 |   |
| Share-based compensation for stock and options issued to employees                          |   |                            | 218,608    |   |   |   | 1,366,682 |   |
| Share-based compensation for options issued to non-employees                                |   |                            | 80,979     |   |   |   | 84,668 |   |
| Loss on sale of intangible asset                                                            |   |                            | 857,839    |   |   |   | --- |   |
| Loss on sale of equipment                                                                   |   |                            | ---        |   |   |   | 2,121 |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Change in operating assets and liabilities:                                                 |   |                            |       |   |   |   |   |   |
| Accounts receivable                                                                         |   |                            | 145,383    |   |   |   | 82,944 |   |
| Other receivable                                                                            |   |                            | (3,866     | ) |   |   | --- |   |
| Inventory                                                                                   |   |                            | 99,225     |   |   |   | 33,041 |   |
| Prepaid expenses and deferred charges                                                       |   |                            | 151,599    |   |   |   | 243,555 |   |
| Deposits                                                                                    |   |                            | 2,750      |   |   |   | --- |   |
| Accounts payable                                                                            |   |                            | 159,764    |   |   |   | (1,012,140 | ) |
| Accrued liabilities                                                                         |   |                            | 50,149     |   |   |   | (252,772 | ) |
| Deferred revenue                                                                            |   |                            | 198,717    |   |   |   | (96,965 | ) |
| Royalty advance                                                                             |   |                            | ---        |   |   |   | (30,417 | ) |
| Total                                                                                       |   |                            | 2,839,452  |   |   |   | 1,368,970 |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Net Cash (Used in) Operating Activities                                                     |   |                            | (1,897,136 | ) |   |   | (6,161,448 | ) |
|                                                                                        |   |                            |       |   |   |   |   |   |
| INVESTING ACTIVITIES :                                                                      |   |                            |       |   |   |   |   |   |
| Purchase of property and equipment                                                          |   |                            | ---        |   |   |   | (14,177 | ) |
| Increase in notes receivable                                                                |   |                            | ---        |   |   |   | (1,018,219 | ) |
| Proceeds from collection of notes receivable                                                |   |                            | ---        |   |   |   | 1,018,219 |   |
| Proceeds from sale of intangible asset                                                      |   |                            | 425,000    |   |   |   | --- |   |
| Proceeds from sale of equipment                                                             |   |                            | ---        |   |   |   | 7,150 |   |
| Net Cash Provided by (Used in) Investing Activities                                         |   |                            | 425,000    |   |   |   | (7,027 | ) |
|                                                                                        |   |                            |       |   |   |   |   |   |
| FINANCING ACTIVITIES :                                                                      |   |                            |       |   |   |   |   |   |
| Proceeds from sale of common stock, net                                                     |   |                            | 857,980    |   |   |   | --- |   |
| Net Cash Provided by Financing Activities                                                   |   |                            | 857,980    |   |   |   | --- |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Net Decrease in Cash                                                                        |   |                            | (614,156   | ) |   |   | (6,168,475 | ) |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Cash,  beginning of period                                                        |   |                            | 1,934,177  |   |   |   | 7,567,588 |   |
| Cash,  end of period                                                              |   | $                               | 1,320,021  |   |   | $ | 1,399,113 |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW DISCLOSURE:                                                          |   |                            |       |   |   |   |   |   |
| Cash paid for interest                                                                      |   | $                               | 1,958      |   |   | $ | --- |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| Non-cash investing and financing activities:                                                |   |                            |       |   |   |   |   |   |
| Sale of intangible asset included in Other receivable                                       |   | $                               | 603,034    |   |   | $ | --- |   |
|                                                                                        |   |                            |       |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.     |   |

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Table of Contents

ULURU Inc.

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Table of Contents

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Table of Contents

|          |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|---------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| Revenues      |   | 2010                             |   |   | %                               |   |   | 2009 |   |   | % |   |   | 2010 |   |   | % |   |   | 2009 |   |   | % |   |
| Domestic      |   | $                                | 57,247 |   |                            |   | 93 | % |   | $ | 68,246 |   |   |   | 52 | % |   | $ | 303,247 |   |   |   | 57 | % |   | $ | 191,084 |   |   |   | 44 | % |
| International |   |                             | 4,370  |   |                            |   | 7 | % |   |   | 61,988 |   |   |   | 48 | % |   |   | 225,234 |   |   |   | 43 | % |   |   | 243,973 |   |   |   | 56 | % |
| Total         |   | $                                | 61,617 |   |                            |   | 100 | % |   | $ | 130,234 |   |   |   | 100 | % |   | $ | 528,481 |   |   |   | 100 | % |   | $ | 435,057 |   |   |   | 100 | % |

|                                                                                                   |             |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|--------------------------------------------------------------------------------------------------------|------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| Customers                                                                                              | Product          |   | 2010                             |   |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|   Discus Dental, Inc.                                                                             | Aphthasol®  |   |                             | 38     | %      |                            |   | 17 | % |   |   | 37 | % |   |   | 15 | % |
|   Meldex International                                                                            | OraDiscTM B |   |                             | *      |   |                            |   | 18 | % |   |   | * |   |   |   | 16 | % |
|   ProStrakan, Ltd.                                                                                | Zindaclin®  |   |                             | ---    |   |                            |   | 28 | % |   |   | 33 | % |   |   | 32 | % |
|   Total                                                                                           |             |   |                             | 38     | %      |                            |   | 63 | % |   |   | 70 | % |   |   | 63 | % |
|                                                                                                   |             |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|    * Revenue from this customer was less than 10% of total revenues for the period reported. |             |

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Table of Contents

|  Payment obligation due: |   | GrossReceivable |    |   | Imputed Interest |   |   | NetReceivable |   |
|-------------------------------|--------|-----------------|---------|--------|-----------------------|--------|--------|---------------|--------|
|   2010                   |   | $               | 125,000 |   |                  | $      | ---    |          |   | $ | 125,000 |   |
|   2011                   |   |            | 250,000 |   |                  |   | 5,426  |          |   |   | 244,574 |   |
|   Subtotal               |   |            | 375,000 |   |                  |   | 5,426  |          |   |   | 369,574 |   |
|                          |   |            |    |   |                  |   |   |          |   |   |   |   |
|   2012                   |   |            | 250,000 |   |                  |   | 12,674 |          |   |   | 237,326 |   |
|   Total                  |   | $               | 625,000 |   |                  | $      | 18,100 |          |   | $ | 606,900 |   |

| Inventory               |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------|--------|--------------------|---------|--------|-------------------|--------|
|   Raw materials    |   | $                  | 77,547  |   |              | $      | 112,002 |   |
|   Work-in-progress |   |               | 367,084 |   |              |   | 375,228 |   |
|   Finished goods   |   |               | 465,142 |   |              |   | 521,768 |   |
|   Total            |   | $                  | 909,773 |   |              | $      | 1,008,998 |   |

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Table of Contents

| Property, equipment and leasehold improvements             |   | September 30, 2010 |      |   | December 31, 2009 |   |
|------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|   Laboratory equipment                                |   | $                  | 424,888   |   |              | $      | 424,888 |   |
|   Manufacturing equipment                             |   |               | 1,483,223 |   |              |   | 1,483,223 |   |
|   Computers, office equipment, and furniture          |   |               | 140,360   |   |              |   | 140,360 |   |
|   Computer software                                   |   |               | 4,108     |   |              |   | 4,108 |   |
|   Leasehold improvements                              |   |               | 95,841    |   |              |   | 95,841 |   |
|                                                       |   |               | 2,148,420 |   |              |   | 2,148,420 |   |
|   Less: accumulated depreciation and amortization     |   |               | ( 695,916 | )      |              |   | ( 516,863 | ) |
|   Property, equipment and leasehold improvements, net |   | $                  | 1,452,504 |   |              | $      | 1,631,557 |   |

| Intangible assets                               |   | September 30, 2010 |        |   | December 31, 2009 |   |
|-------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|   Patent - Zindaclin®                 |   | $                  | ---         |   |              | $      | 3,729,000 |   |
|   Patent - Amlexanox (Aphthasol®)     |   |               | 2,090,000   |   |              |   | 2,090,000 |   |
|   Patent - Amlexanox (OraDiscTM A)    |   |               | 6,873,080   |   |              |   | 6,873,080 |   |
|   Patent - OraDiscTM                  |   |               | 73,000      |   |              |   | 73,000 |   |
|   Patent - Hydrogel nanoparticle aggregate |   |               | 589,858     |   |              |   | 589,858 |   |
|                                            |   |               | 9,625,938   |   |              |   | 13,354,938 |   |
|   Less: accumulated amortization           |   |               | ( 4,027,917 | )      |              |   | ( 4,455,159 | ) |
|   Less: impairment charge                  |   |               | ---         |   |              |   | ( 716,633 | ) |
|   Intangible assets, net                   |   | $                  | 5,598,021   |   |              | $      | 8,183,146 |   |

| Calendar Years             |   | Future AmortizationExpense |      |
|----------------------------|--------|----------------------------|-----------|
|   2010 (Three months) |   | $                          | 206,454   |   |
|   2011                |   |                       | 769,132   |   |
|   2012                |   |                       | 476,450   |   |
|   2013                |   |                       | 475,148   |   |
|   2014                |   |                       | 475,148   |   |
|   2015 & Beyond   |   |                       | 3,195,689 |   |
|   Total               |   | $                          | 5,598,021 |   |

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| Accrued Liabilities                  |   | September 30, 2010 |    |   | December 31, 2009 |   |
|--------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|   Accrued taxes – payroll |   | $                  | 106,299 |   |              | $      | 106,299 |   |
|   Accrued compensation/benefits |   |               | 65,355  |   |              |   | 56,837 |   |
|   Accrued insurance payable     |   |               | 87,037  |   |              |   | 52,295 |   |
|   Product rebates/returns       |   |               | 52      |   |              |   | --- |   |
|   Other                         |   |               | 6,837   |   |              |   | --- |   |
|   Total accrued liabilities     |   | $                  | 265,580 |   |              | $      | 215,431 |   |

|                             |   | Number of Shares of Common Stock Subject to Exercise |      |   | Weighted – AverageExercise Price |   |
|----------------------------------|--------|------------------------------------------------------|-----------|--------|----------------------------------------|--------|
| Balance as of December 31, 2009  |   |                                                 | 8,687,956 |   |                                   | $      | 0.48 |   |
| Warrants issued                  |   |                                                 | 250,000   |   |                                   |   | 0.25 |   |
| Warrants exercised               |   |                                                 | ---       |   |                                   |   | --- |   |
| Warrants cancelled               |   |                                                 | ---       |   |                                   |   | --- |   |
| Balance as of September 30, 2010 |   |                                                 | 8,937,956 |   |                                   | $      | 0.47 |   |

| Date of expiration      |   | Number of Warrant Shares of Common Stock Subject to Expiration |      |
|-------------------------|--------|----------------------------------------------------------------|-----------|
|   August 30, 2011  |   |                                                           | 1,125,000 |   |
|   December 6, 2011 |   |                                                           | 1,670,000 |   |
|   July 23, 2014    |   |                                                           | 785,723   |   |
|   May 15, 2015     |   |                                                           | 5,357,233 |   |
|   Total            |   |                                                           | 8,937,956 |   |

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|                                           |   | September 30, 2010 |       |   | December 31, 2009 |   |
|------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
| Antidilutive warrants to purchase common stock |   |               | 8,937,956  |   |              |   | 8,687,956 |   |
| Antidilutive options to purchase common stock  |   |               | 4,456,000  |   |              |   | 3,306,000 |   |
| Restricted vesting common stock                |   |               | 95,038     |   |              |   | 405,882 |   |
| Total                                          |   |               | 13,488,994 |   |              |   | 12,399,838 |   |

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|                                  |   | Three Months EndedSeptember 30, |   |   | Nine Months Ended September 30, |   |
|---------------------------------------|--------|---------------------------------|--------|--------|--------------------------------------|--------|
|                                  |   | 2010                            |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Incentive Stock Options               |   |                            |   |   |                                 |   |   |   |   |   |   |   |
| Quantity                              |   |                            | ---    |   |                                 |   | --- |   |   |   | 100,000 |   |   |   | --- |   |
| Weighted average fair value per share |   |                            | ---    |   |                                 |   | --- |   |   | $ | 0.12 |   |   |   | --- |   |
| Fair value                            |   |                            | ---    |   |                                 |   | --- |   |   | $ | 11,819 |   |   |   | --- |   |
|                                  |   |                            |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Nonstatutory Stock Options            |   |                            |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Quantity                              |   |                            | ---    |   |                                 |   | --- |   |   |   | 1,800,000 |   |   |   | 75,000 |   |
| Weighted average fair value per share |   |                            | ---    |   |                                 |   | --- |   |   | $ | 0.13 |   |   | $ | 0.14 |   |
| Fair value                            |   |                            | ---    |   |                                 |   | --- |   |   | $ | 229,711 |   |   | $ | 10,672 |   |

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|                                   |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|----------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                   |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Research and development               |   | $                                     | 24,631 |   |                                 | $      | 23,325 |   |   | $ | 79,134 |   |   | $ | 218,066 |   |
| Selling, general and administrative    |   |                                  | 25,841 |   |                                 |   | 112,789 |   |   |   | 147,959 |   |   |   | 931,324 |   |
| Total share-based compensation expense |   | $                                     | 50,472 |   |                                 | $      | 136,114 |   |   | $ | 227,093 |   |   | $ | 1,149,390 |   |

|                                 |   | Stock Options |      |   | Weighted Average Exercise Price per Share |   |
|--------------------------------------|--------|---------------|-----------|--------|-------------------------------------------|--------|
| Outstanding as of December 31, 2009  |   |          | 3,306,000 |   |                                      | $      | 2.34 |   |
| Granted                              |   |          | 1,900,000 |   |                                      |   | 0.16 |   |
| Forfeited/cancelled                  |   |          | (750,000  | )      |                                      |   | 4.13 |   |
| Exercised                            |   |          | ---       |   |                                      |   | --- |   |
| Outstanding as of September 30, 2010 |   |          | 4,456,000 |   |                                      | $      | 1.11 |   |

| Options Outstanding       |      |   | Options Exercisable                       |   |
|---------------------------|-----------|--------|-------------------------------------------|--------|
| Stock Options Outstanding |      |   | Weighted Average Exercise Price per Share |   |   | Weighted Average Remaining Contractual Life in Years |   |   | Stock Options Exercisable |   |   | Weighted Average Exercise Price per Share |   |
|                      | 2,840,000 |   |                                      | $      | 0.42 |   |   |   | 8.1 |   |   |   | 1,465,207 |   |   | $ | 0.58 |   |
|                      | 565,000   |   |                                      |   | 1.58 |   |   |   | 6.8 |   |   |   | 565,000 |   |   |   | 1.58 |   |
|                      | 881,000   |   |                                      |   | 2.44 |   |   |   | 4.0 |   |   |   | 772,980 |   |   |   | 2.46 |   |
|                      | 170,000   |   |                                      |   | 4.40 |   |   |   | 6.5 |   |   |   | 170,000 |   |   |   | 4.40 |   |
|                      | 4,456,000 |   |                                      | $      | 1.12 |   |   |   | 7.1 |   |   |   | 2,973,187 |   |   | $ | 1.48 |   |

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|                                   |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|----------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                   |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Research and development               |   | $                                     | 7,778  |   |                                 | $      | 7,778 |   |   | $ | 24,972 |   |   | $ | 68,094 |   |
| Selling, general and administrative    |   |                                  | (142   | )      |                                 |   | 13,659 |   |   |   | 47,522 |   |   |   | 233,866 |   |
| Total share-based compensation expense |   | $                                     | 7,636  |   |                                 | $      | 21,437 |   |   | $ | 72,494 |   |   | $ | 301,960 |   |

|                                 |   | Restricted stock |     |   | Weighted Average Grant Date Fair Value |   |
|--------------------------------------|--------|------------------|----------|--------|----------------------------------------|--------|
| Outstanding as of December 31, 2009  |   |             | 405,882  |   |                                   | $      | 0.51 |   |
| Shares granted                       |   |             | ---      |   |                                   |   | --- |   |
| Shares forfeited/cancelled           |   |             | (7,500   | )      |                                   |   | 0.85 |   |
| Shares exercised/issued              |   |             | (303,344 | )      |                                   |   | 0.35 |   |
| Outstanding as of September 30, 2010 |   |             | 95,038   |   |                                   | $      | 0.95 |   |

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| Calendar Years             |   | Future Lease Expense |    |
|----------------------------|--------|----------------------|---------|
|   2010 (Three months) |   | $                    | 27,989  |   |
|   2011                |   |                 | 115,971 |   |
|   2012                |   |                 | 117,310 |   |
|   2013                |   |                 | 29,328  |   |
|   Total               |   | $                    | 290,598 |   |

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| ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

| §  | Establish the foundation for a market leadership position in wound management by developing and commercializing a customer focused portfolio of innovative wound care products based on the NanoflexTM technology to treat the various phases of wound healing; |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | Develop our oral-transmucosal technology (OraDiscTM) and generate revenues through multiple licensing agreements; and                                                                                                                                           |
| §  | Develop our NanoflexTM technology for the medical aesthetics market and enter into one or more strategic partnerships to bring these products to market.                                                                                                        |

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|                                            |   | Three Months Ended September 30, |   |
|-------------------------------------------------|--------|----------------------------------|--------|
| Technology                                      |   | 2010                             |   |   | 2009 |   |
|   Wound care & nanoparticle            |   | $                                | 24,478 |   |   | $ | 4,636 |   |
|   OraDiscTM                           |   |                             | 3,000  |   |   |   | 4,200 |   |
|   Aphthasol® & other technologies |   |                             | 1,396  |   |   |   | 28,617 |   |
|   Total                                    |   | $                                | 28,874 |   |   | $ | 37,453 |   |

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|                                            |   | Nine Months Ended September 30, |    |
|-------------------------------------------------|--------|---------------------------------|---------|
| Technology                                      |   | 2010                            |    |   | 2009 |   |
|   Wound care & nanoparticle            |   | $                               | 72,577  |   |   | $ | 54,421 |   |
|   OraDiscTM                           |   |                            | 6,187   |   |   |   | 163,326 |   |
|   Aphthasol® & other technologies |   |                            | 50,041  |   |   |   | 34,710 |   |
|   Total                                    |   | $                               | 128,805 |   |   | $ | 252,457 |   |

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|                                               |   | Nine Months Ended September 30, |           |
|----------------------------------------------------|--------|---------------------------------|----------------|
| Net Cash Provided by (Used in)                     |   | 2010                            |           |   | 2009 |   |
|   Operating activities                        |   | $                               | (1,897,136     | ) |   | $ | (6,161,448 | ) |
|   Investing activities                        |   |                            | 425,000        |   |   |   | (7,027 | ) |
|   Financing activities                        |   |                            | 857,980        |   |   |   | --- |   |
|   Net (Decrease) in cash and cash equivalents |   | $                               | ( 614,156 | ) |   | $ | (6,168,475 | ) |

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| §  | The ability to successfully commercialize our wound management and burn care products and the market acceptance of these products;                                             |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | The ability to establish and maintain collaborative arrangements with corporate partners for the research, development and commercialization of certain product opportunities; |
| §  | Continued scientific progress in our development programs;                                                                                                                     |
| §  | The costs involved in filing, prosecuting and enforcing patent claims;                                                                                                         |
| §  | Competing technological developments;                                                                                                                                          |
| §  | The cost of manufacturing and production scale-up; and                                                                                                                         |
| §  | Successful regulatory filings.                                                                                                                                                 |

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|                                      |   | Payments Due By Period |    |
|-------------------------------------------|--------|------------------------|---------|
| Contractual Obligations                   |   | Total                  |    |   | Less Than1 Year |   |   | 2-3Years |   |   | 4-5Years |   |   | After 5Years |   |
|   Operating lease                    |   | $                      | 290,598 |   |   | $ | 114,633 |   |   | $ | 175,965 |   |   | $ | --- |   |   | $ | --- |   |
|   Separation agreements              |   |                   | 702,356 |   |   |   | 313,495 |   |   |   | 326,361 |   |   |   | 62,500 |   |   |   | --- |   |
|   Total contractual cash obligations |   | $                      | 992,954 |   |   | $ | 428,128 |   |   | $ | 502,326 |   |   | $ | 62,500 |   |   | $ | --- |   |

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| ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk. |
|---------|-------------------------------------------------------------|

| ITEM 4. | Controls and Procedures. |
|---------|--------------------------|

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PART II - OTHER INFORMATION

| ITEM 1. |  Legal Proceedings. |
|---------|--------------------------|

| ITEM 1A. |  Risk Factors. |
|----------|---------------------|

| ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

| ITEM 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| ITEM 4. | (Removed and Reserved). |
|---------|-------------------------|

| ITEM 5. | Other Information. |
|---------|--------------------|

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| ITEM 6. | Exhibits. |
|---------|-----------|

| Exhibit Number |   | Description                                                                                                                                                    |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                           |
| 31.1           | *      | Certification of Principal Executive Officer of ULURU Inc. Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Amended      |
|           |   |                                                                                                                                                           |
| 31.2           | *      | Certification of Principal Accounting Officer of ULURU Inc. Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Amended     |
|           |   |                                                                                                                                                           |
| 32.1           | **     | Certification of Chief Executive Officer of ULURU Inc. Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|           |   |                                                                                                                                                           |
| 32.2           | **     | Certification of Chief Financial Officer of ULURU Inc. Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|           |   |                                                                                                                                                           |   |
|           |   | *                                                                                                                                                              | Filed herewith. |
|           |   | **                                                                                                                                                             | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933 or the Securities and Exchange Act of 1934. |

SIGNATURES

|                                     | ULURU Inc. |
|------------------------------------------|------------|
|                                     |       |
|  Date:  November 15, 2010 |       | By: |  /s/ Kerry P. Gray |   |
|                                     |       | Kerry P. Gray |
|                                     |       | Chief Executive Officer and President |
|                                     |       | (Principal Executive Officer) |
|                                     |       |
|                                     |       |
|  Date:  November 15, 2010 |       | By: |  /s/ Terrance K. Wallberg |   |
|                                     |       | Terrance K. Wallberg |
|                                     |       | Chief Financial Officer and Vice President |
|                                     |       | (Principal Financial and Accounting Officer) |

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