----

----

|       | UNITED STATES                                               |
|------------|-------------------------------------------------------------|
|       | SECURITIES AND EXCHANGE COMMISSION                          |
|       | WASHINGTON, D.C. 20549                                      |
|       |                                                        |
|       | FORM 10-Q                                                   |
| (Mark One) |                                                        |
| þ     | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|       | SECURITIES EXCHANGE ACT OF 1934                             |
|       |                                                        |
|       | For the quarterly period ended March 31, 2011               |
|       | OR                                                          |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE    |
|       | SECURITIES EXCHANGE ACT OF 1934                             |
|       |                                                        |
|       | For the transition period from ____________ to ____________ |
|       |                                                        |
|       | Commission file number:  001-15911           |
|       |                                                        |
|       | CELSION CORPORATION                                         |
|       | (Exact name of registrant as specified in its charter)      |

|   | Delaware                                 |   | 52-1256615             |
|--------|------------------------------------------|--------|------------------------|
|   | (State or other jurisdiction of          |   | (I.R.S. Employer       |
|   | incorporation or organization)           |   | Identification Number) |
|   |                                     |   |                   |
|   | 10220-L Old Columbia Road                |   |                   |
|   | Columbia, Maryland                       |   | 21046                  |
|   | (Address of principal executive offices) |   | (Zip Code)             |

|   | (410) 290-5390                                                                     |
|--------|------------------------------------------------------------------------------------|
|   | (Registrant’s telephone number, including area code)                         |
|   | None                                                                               |
|   | (Former name, former address and former fiscal year, if changed since last report) |
|   |                                                                               |

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

----

|     |   PART I: FINANCIAL INFORMATION                                                             |   |
|----------|--------------------------------------------------------------------------------------------------|--------|
|     |                                                                                             | Page   |
| Item 1.  | Financial Statements and Notes (Unaudited)                                                       |   |
|     | Balance Sheets                                                                                   | 3      |
|     | Statements of Operations                                                                         | 4      |
|     | Statements of Cash Flows                                                                         | 5      |
|     | Statement of Changes in Stockholders’ Deficit                                              | 6      |
|     | Notes to Financial Statements                                                                    | 7      |
|     |                                                                                             |   |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16     |
|     |                                                                                             |   |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                                       | 20     |
|     |                                                                                             |   |
| Item 4.  | Controls and Procedures                                                                          | 20     |
|     |                                                                                             |   |
|     | PART II: OTHER INFORMATION                                                                       |   |
|     |                                                                                             |   |
| Item 1.  | Legal Proceedings                                                                                | 21     |
| Item 1A. | Risk Factors                                                                                     | 21     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                      | 21     |
| Item 3.  | Defaults Upon Senior Securities                                                                  | 22     |
| Item 4.  | [Removed and Reserved]                                                                           | 22     |
| Item 5.  | Other Information                                                                                | 22     |
| Item 6.  | Exhibits                                                                                         | 23     |
|     |                                                                                             |   |
|     | SIGNATURES                                                                                       | 24     |

----

| ASSETS                                                                                                                                                                                                                               |   | March 31, 2011 (unaudited) |         |    | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------------|---------|-------------------|--------|
| Current assets:                                                                                                                                                                                                                      |   |                       |         |    |              |   |
| Cash and cash equivalents                                                                                                                                                                                                            |   | $                          | 1,964,538    |    |              | $      | 1,138,916 |   |
| Short-term investments                                                                                                                                                                                                               |   |                       | 130,906      |    |              |   | 395,556 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                            |   |                       | 1,651,559    |    |              |   | 492,184 |   |
| Total current assets                                                                                                                                                                                                                 |   |                       | 3,747,003    |    |              |   | 2,026,656 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Property and equipment (at cost, less accumulated depreciation of $1,088,128 and $1,046,758, respectively)                                                                                                                           |   |                       | 337,749      |    |              |   | 378,672 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Other assets:                                                                                                                                                                                                                        |   |                       |         |    |              |   |   |   |
| Deferred financing fees                                                                                                                                                                                                              |   |                       | 605,505      |    |              |   | − |   |
| Deposits and other assets                                                                                                                                                                                                            |   |                       | 76,796       |    |              |   | 76,796 |   |
| Patent licensing fees, net                                                                                                                                                                                                           |   |                       | 41,250       |    |              |   | 43,125 |   |
| Total other assets                                                                                                                                                                                                                   |   |                       | 723,551      |    |              |   | 119,921 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Total assets                                                                                                                                                                                                                         |   | $                          | 4,808,303    |    |              | $      | 2,525,249 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                                                                |   |                       |         |    |              |   |   |   |
| Current liabilities:                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Accounts payable                                                                                                                                                                                                                     |   | $                          | 3,316,804    |    |              | $      | 4,548,586 |   |
| Other accrued liabilities                                                                                                                                                                                                            |   |                       | 3,423,099    |    |              |   | 2,124,189 |   |
| Note payable - current portion                                                                                                                                                                                                       |   |                       | 127,568      |    |              |   | 123,465 |   |
| Total current liabilities                                                                                                                                                                                                            |   |                       | 6,867,471    |    |              |   | 6,796,240 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Common stock warrant liability                                                                                                                                                                                                       |   |                       | 79,820       |    |              |   | 248,131 |   |
| Note payable – non-current portion                                                                                                                                                                                             |   |                       | 22,931       |    |              |   | 56,403 |   |
| 8% Series A Redeemable Convertible Preferred Stock,100,000 shares authorized, 5,350 authorized, 5,000 issued and 4,490 outstanding at March 31, 2011 (aggregate liquidation preference of $4,490,000 as of March 31, 2011) (Note 10) |   |                       | 2,878,525    |    |              |   | − |   |
| Total liabilities                                                                                                                                                                                                                    |   |                       | 9,848,747    |    |              |   | 7,100,774 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Stockholders' deficit:                                                                                                                                                                                                               |   |                       |         |    |              |   |   |   |
| Common stock, $0.01 par value; 75,000,000 shares authorized; 14,627,233 and 14,091,370 shares issued and 13,873,636 and 13,331,096 shares outstanding at March 31, 2011 and December 31, 2010, respectively                          |   |                       | 146,272      |    |              |   | 140,914 |   |
| Additional paid-in capital                                                                                                                                                                                                           |   |                       | 102,560,241  |    |              |   | 99,316,859 |   |
| Accumulated other comprehensive income (loss)                                                                                                                                                                                        |   |                       | 18,616       |    |              |   | (18,367 | ) |
| Accumulated deficit                                                                                                                                                                                                                  |   |                       | (104,715,985 | )       |              |   | (100,938,261 | ) |
|   Subtotal                                                                                                                                                                                                                 |   |                       | (1,990,856   | )  |              |   | (1,498,855 | ) |
| Treasury stock, at cost (753,587 and 760,274 shares at March 31, 2011 and December 31, 2010, respectively)                                                                                                                           |   |                       | (3,049,588   | )       |              |   | (3,076,670 | ) |
| Total stockholders' deficit                                                                                                                                                                                                          |   |                       | (5,040,444   | )       |              |   | (4,575,525 | ) |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |
| Total liabilities and stockholders' deficit                                                                                                                                                                                          |   | $                          | 4,808,303    |    |              | $      | 2,525,249 |   |
|                                                                                                                                                                                                                                 |   |                       |         |    |              |   |   |   |

----

|                                                                 |   | Three Months EndedMarch 31, |       |
|----------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                 |   | 2011                        |       |   | 2010 |   |
|                                                                 |   |                        |       |   |   |   |
| Licensing revenue (Note 13)                                          |   | $                           | 2,000,000  |   |   | $ | − |   |
|                                                                 |   |                        |       |   |   |   |   |   |
| Operating expenses:                                                  |   |                        |       |   |   |   |   |   |
| Research and development                                             |   |                        | 4,348,636  |   |   |   | 3,275,295 |   |
| General and administrative                                           |   |                        | 1,215,283  |   |   |   | 1,299,118 |   |
|  Total operating expenses                                       |   |                        | 5,563,919  |   |   |   | 4,574,413 |   |
|                                                                 |   |                        |       |   |   |   |   |   |
| Loss from operations                                                 |   |                        | (3,563,919 | ) |   |   | (4,574,413 | ) |
|                                                                 |   |                        |       |   |   |   |   |   |
| Other income (expense):                                              |   |                        |       |   |   |   |   |   |
| Gain (loss) from valuation of common stock warrant liability         |   |                        | 168,311    |   |   |   | (1,569,619 | ) |
| Interest income                                                      |   |                        | 467        |   |   |   | 8,197 |   |
| Interest and dividend expense                                        |   |                        | (369,142   | ) |   |   | (9,192 | )  |
| Other expense                                                        |   |                        | -          |   |   |   | (14 | )  |
| Total other income (expense), net                                    |   |                        | (200,364   | )  |   |   | (1,570,628 | ) |
|                                                                 |   |                        |       |   |   |   |   |   |
| Net Loss                                                             |   | $                           | (3,764,283 | ) |   | $ | (6,145,041 | ) |
|                                                                 |   |                        |       |   |   |   |   |   |
|                                                                 |   |                        |       |   |   |   |   |   |
| Net loss per common share – basic and diluted                  |   | $                           | (0.28      | ) |   | $ | (0.50 | ) |
|                                                                 |   |                        |       |   |   |   |   |   |
| Weighted average common shares outstanding – basic and diluted |   |                        | 13,452,939 |   |   |   | 12,185,537 |   |
|                                                                 |   |                        |       |   |   |   |   |   |

----

|                                                                                             |   | Three Months EndedMarch 31, |        |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                                             |   | 2011                        |        |   | 2010 |   |
| Cash flows from operating activities:                                                            |   |                        |        |   |   |   |
| Net loss                                                                                         |   | $                           | (3,7964,283 | ) |   | $ | (6,145,041 | ) |
| Non-cash items included in net loss:                                                             |   |                        |        |   |   |   |   |   |
| Depreciation and amortization                                                                    |   |                        | 41,370      |   |   |   | 41,370 |   |
| Change in fair value of common stock warrant liability                                           |   |                        | (168,311    | )  |   |   | 1,569,619 |   |
| Stock based compensation                                                                         |   |                        | 326,877     |   |   |   | 504,730 |   |
| Shares issued from treasury stock                                                                |   |                        | 13,708      |   |   |   | - |   |
| Non cash dividend expense on preferred stock                                                     |   |                        | 281,878     |   |   |   | - |   |
| Amortization of patent license fee                                                               |   |                        | 1,875       |   |   |   | 1,875 |   |
| Net changes in:                                                                                  |   |                        |        |   |   |   |   |   |
| Refundable income taxes                                                                          |   |                        | -           |   |   |   | 806,255 |   |
| Prepaid expenses and other                                                                       |   |                        | (1,172,780  | ) |   |   | (163,005 | ) |
| Deposits and other assets                                                                        |   |                        | -           |   |   |   | 6,762 |   |
| Accounts payable                                                                                 |   |                        | (1,231,782  | )  |   |   | 113,027 |   |
| Other accrued liabilities                                                                        |   |                        | 1,298,910   |   |   |   | 233,333 |   |
| Net cash used in operating activities:                                                           |   |                        | (4,372,538  | ) |   |   | (3,031,075 | ) |
|                                                                                             |   |                        |        |   |   |   |   |   |
| Cash flows from investing activities:                                                            |   |                        |        |   |   |   |   |   |
| Purchases of investment securities                                                               |   |                        | -           |   |   |   | (1,710,930 | ) |
| Proceeds from sale and maturity of investment securities                                         |   |                        | 301,633     |   |   |   | 1,958,979 |   |
| Purchases of property and equipment                                                              |   |                        | (447        | ) |   |   | (800 | ) |
| Net cash provided by investing activities                                                        |   |                        | 301,186     |   |   |   | 247,249 |   |
|                                                                                             |   |                        |        |   |   |   |   |   |
| Cash flows from financing activities:                                                            |   |                        |        |   |   |   |   |   |
| Proceeds from sale of 8% Series A redeemable, convertible preferred stock, net of issuance costs |   |                        | 4,324,080   |   |   |   | - |   |
| Proceeds from sale of common stock equity                                                        |   |                        | 602,263     |   |   |   | - |   |
| Principal payments on note payable                                                               |   |                        | (29,369     | ) |   |   | (25,770 | ) |
| Net cash provided by (used in) financing activities                                              |   |                        | 4,896,974   |   |   |   | (25,770 | )  |
|                                                                                             |   |                        |        |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                 |   |                        | 825,622     |   |   |   | (2,809,596 | ) |
| Cash and cash equivalents at beginning of period                                                 |   |                        | 1,138,916   |   |   |   | 6,923,476 |   |
|                                                                                             |   |                        |        |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                       |   | $                           | 1,964,538   |   |   | $ | 4,113,880 |   |
|                                                                                             |   |                        |        |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                               |   |                        |        |   |   |   |   |   |
|  Interest and dividends paid                                                                |   | $                           | 87,264      |   |   | $ | 9,192 |   |
|                                                                                             |   |                        |        |   |   |   |   |   |

----

|                                                                                                                        | Common Stock Outstanding | Additional Paid–in Capital | Treasury Stock           | Accumulated Other Compr.  Income | Accumulated Deficit |      |
|-----------------------------------------------------------------------------------------------------------------------------|--------------------------|----------------------------------|--------------------------|--------------------------------------------|---------------------|-----------|
|                                                                                                                        | Shares                   | Amount                           | Shares                   | Amount                                     | Total               |
| Balance at December 31, 2010                                                                                                | 13,331,096               | $140,914                         | $  99,316,859  | 760,274                                    | $(3,076,670)        | $(18,367) | $(100,938,261) | $(4,575,525) |
|  Valuation of common stock warrants in connection with issuance of 8% Series A Redeemable, Convertible Preferred Stock |  -                  |  -                          | 2,030,000                |  -                                    |  -             |  -   |  - | 2,030,000 |
|  Conversion of 8% Series A Redeemable, Convertible Preferred Stock                                                     | 212,498                  | 2,125                            | 300,813                  |  -                                    |  -             |  -   |  - | 302,938 |
|  Shares issued under CEFF, net of issuance costs                                                                       | 275,855                  | 2,758                            | 586,100                  |  -                                    |  -             |  -   |  - | 588,858 |
|  Stock-based compensation expense                                                                                      | -                        | -                                | 326,877                  | -                                          | -                   | -         | - | 326,877 |
| Issuance of restricted stock upon vesting                                                                                   | 47,500                   | 475                              | (475)                    | -                                          | -                   | -         | - | - |
|  Issuance of common stock out of treasury for 401(k) plan matching contribution                                        | 6,687                    | -                                | 67                       | (6,687)                                    | 27,082              | -         | (13,441) | 13,708 |
|  Unrealized gain on investments available for sale                                                                     | -                        | -                                | -                        | -                                          | -                   | 36,983    | - | 36,983 |
|  Net loss                                                                                                              | -                        | -                                | -                        | -                                          | -                   | -         | (3,764,283) | (3,764,283) |
| Balance at March 31, 2011                                                                                                   | 13,873,636               | $146,272                         | $  102,560,241 | 753,587                                    | $(3,049,588)        | $18,616   | $(104,715,985) | $(5,040,444) |

----

----

| Short-term investments - at fair value           |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| Bonds - corporate issuances                      |   | $              | − |   |              | $      | 301,632 |   |
| Equity securities                                |   |           | 130,906 |   |              |   | 93,924 |   |
| Total short-term investments, available for sale |   | $              | 130,906 |   |              | $      | 395,556 |   |

|                                 |   | March 31, 2011 |    |   | December 31, 2010 |   |
|--------------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                                 |   | Cost                |    |   | FairValue         |   |   | Cost |   |   | FairValue |   |
| Short-term investments               |   |                |    |   |              |   |   |   |   |   |   |   |
| Bonds - corporate issuances          |   | $                   | − |   |              | $      | − |   |   | $ | 301,632 |   |   | $ | 301,632 |   |
| Equity securities                    |   |                | 108,373 |   |              |   | 130,906 |   |   |   | 108,373 |   |   |   | 93,924 |   |
| Total investments available for sale |   | $                   | 108,373 |   |              | $      | 130,906 |   |   | $ | 410,005 |   |   | $ | 395,556 |   |
|                                 |   |                |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Bond maturities                      |   |                |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Within 3 months                      |   | $                   | − |   |              | $      | − |   |   | $ | 301,632 |   |   | $ | 301,632 |   |
| Between 3-12 months                  |   |                | − |   |              |   | − |   |   |   | − |   |   |   | − |   |
| Between 1-2 years                    |   |                | − |   |              |   | − |   |   |   | − |   |   |   | − |   |
| Total                                |   | $                   | − |   |              | $      | − |   |   | $ | 301,632 |   |   | $ | 301,632 |   |

----

|   | Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date;                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                         |
|   | Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and |
|   |                                                                                                                                                                                                                                                                         |
|   | Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions that market participants would use in pricing an asset or liability.                                                                                                        |

|                                                         |   | Total Carrying Value on the Balance Sheet |    |   | Quoted Prices In Active Markets For Identical Assets /Liabilities (Level 1) |   |    | Significant Other Observable Inputs (Level 2) |   |   | SignificantUnobservable Inputs (Level 3) |   |
|--------------------------------------------------------------|--------|-------------------------------------------|---------|--------|-----------------------------------------------------------------------------|--------|---------|----------------------------------------------------|--------|--------|-----------------------------------------------|--------|
| Assets:                                                      |   |                                      |    |   |                                                                        |   |    |                                               |   |   |                                          |   |
| Short-term investments available for sale, March 31, 2011    |   | $                                         | 130,906 |   |                                                                        | $      | − |                                               |   | $      | −                                       |   |   | $ | 130,906 |   |
|                                                         |   |                                      |    |   |                                                                        |   |    |                                               |   |   |                                          |   |   |   |   |   |
| Short-term investments available for sale, December 31, 2010 |   | $                                         | 395,556 |   |                                                                        | $      | 301,632 |                                               |   | $      | −                                       |   |   | $ | 93,924 |   |
|                                                         |   |                                      |    |   |                                                                        |   |    |                                               |   |   |                                          |   |   |   |   |   |
| Liabilities:                                                 |   |                                      |    |   |                                                                        |   |    |                                               |   |   |                                          |   |   |   |   |   |
| Common stock warrant liability, March 31, 2011 (see Note 12) |   | $                                         | 79,820  |   |                                                                        | $      | − |                                               |   | $      | −                                       |   |   | $ | 79,820 |   |
|                                                         |   |                                      |    |   |                                                                        |   |    |                                               |   |   |                                          |   |   |   |   |   |
| Common stock warrant liability, December 31, 2010            |   | $                                         | 248,131 |   |                                                                        | $      | − |                                               |   | $      | −                                       |   |   | $ | 248,131 |   |

----

|                                                                     |   | March 31, 2011 |      |   | December 31, 2010 |   |
|--------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
| Advances to investigator sites                                           |   | $              | 1,040,847 |   |              | $      | − |   |
| Raw materials for Thermodox® registration batches                   |   |           | 267,225   |   |              |   | 132,451 |   |
| Amortizable expenses associated with Committed Equity Financing Facility |   |           | 261,401   |   |              |   | 274,806 |   |
| Franchise taxes receivable                                               |   |           | 49,929    |   |              |   | 41,364 |   |
| Prepaid insurance                                                        |   |           | 32,157    |   |              |   | − |   |
| Interest receivable                                                      |   |           | −   |   |              |   | 6,063 |   |
| Prepaid professional fees                                                |   |           | −   |   |              |   | 37,500 |   |
|    Total                                                  |   | $              | 1,651,559 |   |              | $      | 492,184 |   |

|                                                                            |   | March 31, 2011 |      |   | December 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|
| Amounts due to Contract Research Organizations and other contractual agreements |   | $                   | 2,898,947 |   |              | $      | 1,497,441 |   |
| Accrued payroll and related benefits                                            |   |                | 284,617   |   |              |   | 460,614 |   |
| Accrued professional fees                                                       |   |                | 136,525   |   |              |   | 138,900 |   |
| Accrued dividends on preferred stock                                            |   |                | 75,776    |   |              |   | − |   |
| Other                                                                           |   |                | 27,234    |   |              |   | 27,243 |   |
|    Total                                                         |   | $                   | 3,423,099 |   |              | $      | 2,124,189 |   |

----

----

|                     |   | March 31, 2011 |   |   | December 31, 2010 |   |
|--------------------------|--------|----------------|--------|--------|-------------------|--------|
| Risk-free interest rate  |   |           | 2.24   | %      |              |   | 2.02 | % |
| Expected volatility      |   |           | 40.8   | %      |              |   | 63.5 | % |
| Expected life (in years) |   |           | 2.0    |   |              |   | 2.1 |   |
| Expected forfeiture rate |   |           | 0      | %      |              |   | 0 | % |
| Expected dividend yield  |   |           | 0.00   | %      |              |   | 0.00 | % |

----

| Date           |   | Shares Issued |      |   | Gross Proceeds |   |      | Per Share |   |   | Broker Fees and Expenses |   |
|----------------|--------|---------------|-----------|--------|----------------|--------|-----------|-----------|--------|--------|--------------------------|--------|
| March 16, 2011 |   |          | 275,855   |   |           | $      | 608,347   |      |   | $      | 2.21                     |   |   | $ | 19,489 |   |
| April 25, 2011 |   |          | 407,703   |   |           |   | 867,680   |      |   | $      | 2.13                     |   |   |   | 27,872 |   |
| May 6, 2011    |   |          | 656,956   |   |           |   | 1,949,117 |      |   | $      | 2.97                     |   |   |   | 62,610 |   |
| Total          |   |          | 1,340,514 |   |           | $      | 3,425,144 |      |   | $      | 2.56                     |   |   | $ | 109,971 |   |

----

|                     |   | Threemonths endedMarch 31,2011 |               |   | Threemonths endedMarch 31,2010 |   |
|--------------------------|--------|--------------------------------|--------------------|--------|--------------------------------|--------|
| Risk-free interest rate  |   |                           | 2.72% – 2.84 | %      |                           |   | 2.48% - 3.24 | % |
| Expected volatility      |   |                           | 80.7% -81.1        | %      |                           |   | 72.1% -72.8 | % |
| Expected life (in years) |   |                           | 6                  |   |                           |   | 5-6 |   |
| Expected forfeiture rate |   |                           | 0                  | %      |                           |   | 0 | % |
| Expected dividend yield  |   |                           | 0.00               | %      |                           |   | 0.00 | % |

|                                                              |   | Stock Options      |      |   | Restricted Stock Awards             |   |    |
|-------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------------------------|--------|---------|
| Equity Awards                                                     |   | OptionsOutstanding |      |   | WeightedAverage Exercise Price |   |    | Non-vestedRestrictedStockOutstanding |   |   | WeightedAverageGrant DateFair Value |   |  WeightedAverageContractualTerms of Equity Awards(in years) |
| Equity awards outstanding at December 31, 2010                    |   |               | 2,167,646 |   |                                | $      | 3.74    |   |   |   | 77,400 |   |   | $ | 3.47 |   |   |
| Equity awards granted                                             |   |               | 733,167   |   |                                | $      | 2.49    |   |   |   | 25,000 |   |   | $ | 2.47 |   |   |
| Equity awards exercised                                           |   |               | −   |   |                                |   | − |   |   |   | (22,500 | ) |   | $ | 2.66 |   |   |
| Equity awards forfeited, cancelled or expired                     |   |               | (79,167   | )      |                                | $      | 3.06    |   |   |   | − |   |   |   | − |   |   |
| Equity awards outstanding at March 31, 2011                       |   |               | 2,821,646 |   |                                | $      | 3.43    |   |   |   | 79,900 |   |   | $ | 3.39 |   | 7.6 |
|                                                              |   |               |      |   |                                |   |    |   |   |   |   |   |   |   |   |   |   |
| Aggregate intrinsic value of outstanding awards at March 31, 2011 |   | $                  | 150       |   |                                |   |    |   |   | $ | 235,296 |   |   |   |   |   |   |
| Equity awards exercisable at March 31, 2011                       |   |               | 1,496,404 |   |                                | $      | 3.97    |   |   |   |   |   |   |   |   |   | 6.5 |
| Aggregate intrinsic value of vested awards at March 31, 2011      |   | $                  | −   |   |                                |   |    |   |   |   |   |   |   |   |   |   |   |

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| Beginning balance, January 1, 2011                                         |   | $      | 248,131  |    |
|----------------------------------------------------------------------------|--------|--------|----------|---------|
| Issuances                                                                  |   |   | -        |    |
| Gain from the adjustment for the change in fair value included in net loss |   |   | (168,311 | )  |
| Ending balance, March 31, 2011                                             |   | $      | 79,820   |    |

| Warrants                                                                         |   | Number Outstanding |      |   | Weighted Average Exercise Price |   |    | Weighted Average Remaining Contractual Term (in years) |   |   | Aggregate Intrinsic Value |   |
|----------------------------------------------------------------------------------|--------|--------------------|-----------|--------|---------------------------------|--------|---------|-------------------------------------------------------------|--------|--------|---------------------------|--------|
| Outstanding at December 31, 2010                                                 |   |               | 1,009,076 |   |                            | $      | 5.24    |                                                        |   |   |                      |   |   |   |
| Common stock warrants granted                                                    |   |               | 2,083,333 |   |                            | $      | 3.25    |                                                        |   |   |                      |   |   |   |
| Placement Agent Warrants granted (as if exercised and converted to common stock) |   |               | 145,833   |   |                            |   | 2.40    |                                                        |   |   |                      |   |   |   |
| Canceled or expired                                                              |   |               | −   |   |                            |   | − |                                                        |   |   |                      |   |   |   |
| Outstanding at March 31, 2011                                                    |   |               | 3,092,409 |   |                            | $      | 3.83    |                                                        |   |   | 4.16                      |   |   | $ | - |   |
|                                                                             |   |               |      |   |                            |   |    |                                                        |   |   |                      |   |   |   |   |   |
| Exercisable March 31, 2011                                                       |   |               | 1,009,076 |   |                            | $      | 5.24    |                                                        |   |   | 4.00                      |   |   | $ | - |   |

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|                                  | Three Months Ended March 31, |   |
|---------------------------------------|-----------------------------------|--------|
|                                  |  ($ amounts in 000’s)  |   |  Change |   |
|                                  | 2011                              |   | 2010 |   |   $ |   |   |   | % |   |
|                                  |                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Licensing Revenue                     | $                                 | 2,000  |   | $ | − |   | $ | 2,000 |   |   |   | 100 | % |
|                                  |                              |   |   |   |   |   |   |   |   |   |
|   Operating expenses:            |                              |   |   |   |   |   |   |   |   |   |
| Clinical Research                     | $                                 | 3,450  |   | $ | 2,817 |   | $ | 633 |   |   |   | 22.5 | % |
| Chemistry, Manufacturing and Controls |                              | 899    |   |   | 458 |   |   | 441 |   |   |   | 96.2 | % |
| Research and development              |                              | 4,349  |   |   | 3,275 |   |   | 1,074 |   |   |   | 32.8 | % |
| General and administrative            |                              | 1,215  |   |   | 1,299 |   |   | (84 | ) |   |   | (6.5 | )% |
|  Total operating expenses        |                              | 3,564  |   |   | 4,574 |   |   | 990 |   |   |   | 21.6 | % |
|                                  |                              |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loss from operations           | $                                 | (3,564 | ) | $ | (4,574 | ) | $ | 1,010 |   |   |   | (22.1 | )% |
|                                  |                              |   |   |   |   |   |   |   |   |   |   |   |   |

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| Date           |   | Shares Issued |      |   | Gross Proceeds |   |      | Per Share |   |   | Broker Fees and Expenses |   |
|----------------|--------|---------------|-----------|--------|----------------|--------|-----------|-----------|--------|--------|--------------------------|--------|
| March 16, 2011 |   |          | 275,855   |   |           | $      | 608,347   |      |   | $      | 2.21                     |   |   | $ | 19,489 |   |
| April 25, 2011 |   |          | 407,703   |   |           |   | 867,680   |      |   | $      | 2.13                     |   |   |   | 27,872 |   |
| May 6, 2011    |   |          | 656,956   |   |           |   | 1,949,117 |      |   | $      | 2.97                     |   |   |   | 62,610 |   |
| Total          |   |          | 1,340,514 |   |           | $      | 3,425,144 |      |   | $      | 2.56                     |   |   | $ | 109,971 |   |

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| 31.1   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith)     |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                      |
| 31.2   | Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith) |
|   |                                                                                                                                                                      |
| 32.1   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Furnished herewith)                   |

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|   |   CELSION CORPORATION                       |
|--------|--------------------------------------------------|
|   |         Registrant |
|   |                                             |
|   |  By:                                   | /s/ Michael H. Tardugno |
|   |                                             | Michael H. Tardugno |
|   |                                             | President and Chief Executive Officer |

|   |  By:    | /s/ Jeffrey W. Church                      |
|--------|-----------------------------|--------------------------------------------|
|   |                        | Jeffrey W. Church                          |
|   |                        | Vice President and Chief Financial Officer |

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