----

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|     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 June 30, 2010            |
| 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)             |

----

|     | PART I: FINANCIAL INFORMATION                                                               |    |
|----------|---------------------------------------------------------------------------------------------|---------|
|     |                                                                                        | Page(s) |
| Item 1.  | Financial Statements and Notes (Unaudited)                                                  | 3 - 14  |
|     | Balance Sheets                                                                              | 3       |
|     | Statements of Operations                                                                    | 4       |
|     | Statements of Cash Flows                                                                    | 5       |
|     | Statement of Changes in Stockholder’s Equity                                          | 6       |
|     | Notes to Financial Statements                                                               | 7 - 14  |
|     |                                                                                        |    |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15      |
|     |                                                                                        |    |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                                  | 19      |
|     |                                                                                        |    |
| Item 4.  | Controls and Procedures                                                                     | 19      |
|     |                                                                                        |    |
|     | PART II: OTHER INFORMATION                                                                  |    |
|     |                                                                                        | Page(s) |
| Item 1.  | Legal Proceedings                                                                           | 20      |
| Item 1A. | Risk Factors                                                                                | 20      |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 20      |
| Item 3.  | Defaults Upon Senior Securities                                                             | 20      |
| Item 4.  | [Removed and Reserved]                                                                      | 20      |
| Item 5.  | Other Information                                                                           | 20      |
| Item 6.  | Exhibits                                                                                    | 21      |
|     |                                                                                        |    |
|     | SIGNATURES                                                                                  | 22      |

----

| ASSETS                                                                                                                                                                                                                                                      |   | June 30, 2010 (unaudited) |        |    | December 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|---------|-------------------|--------|
| Current assets:                                                                                                                                                                                                                                             |   |                      |        |    |              |   |
| Cash and cash equivalents                                                                                                                                                                                                                                   |   | $                         | 2,745,141   |    |              | $      | 6,923,476 |   |
| Short term investments                                                                                                                                                                                                                                      |   |                      | 2,939,469   |    |              |   | 5,695,466 |   |
| Refundable income taxes                                                                                                                                                                                                                                     |   |                      | -           |    |              |   | 806,255 |   |
| Prepaid expenses and other                                                                                                                                                                                                                                  |   |                      | 289,404     |    |              |   | 695,021 |   |
| Total current assets                                                                                                                                                                                                                                        |   |                      | 5,974,014   |    |              |   | 14,120,218 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Property and equipment (at cost, less accumulated depreciation of$964,025 and $881,278, respectively)                                                                                                                                                       |   |                      | 455,460     |    |              |   | 537,407 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Other assets:                                                                                                                                                                                                                                               |   |                      |        |    |              |   |   |   |
| Deposits and other assets                                                                                                                                                                                                                                   |   |                      | 83,558      |    |              |   | 97,082 |   |
| Patent licensing fees, net                                                                                                                                                                                                                                  |   |                      | 46,875      |    |              |   | 50,625 |   |
| Total other assets                                                                                                                                                                                                                                          |   |                      | 130,433     |    |              |   | 147,707 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Total assets                                                                                                                                                                                                                                                |   | $                         | 6,559,907   |    |              | $      | 14,805,332 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Accounts payable                                                                                                                                                                                                                                            |   | $                         | 2,165,172   |    |              | $      | 2,190,957 |   |
| Other accrued liabilities                                                                                                                                                                                                                                   |   |                      | 1,468,179   |    |              |   | 1,451,542 |   |
| Note payable - current portion                                                                                                                                                                                                                              |   |                      | 115,651     |    |              |   | 108,332 |   |
| Total current liabilities                                                                                                                                                                                                                                   |   |                      | 3,749,002   |    |              |   | 3,750,831 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Common stock warrant liability                                                                                                                                                                                                                              |   |                      | 562,966     |    |              |   | 821,891 |   |
| Note payable – non-current portion                                                                                                                                                                                                                    |   |                      | 120,152     |    |              |   | 179,868 |   |
| Other liabilities – noncurrent                                                                                                                                                                                                                        |   |                      | 5,973       |    |              |   | 16,948 |   |
| Total liabilities                                                                                                                                                                                                                                           |   |                      | 4,438,093   |    |              |   | 4,769,538 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Stockholders' equity:                                                                                                                                                                                                                                       |   |                      |        |    |              |   |   |   |
| Common stock, $0.01 par value (75,000,000 shares authorized; 13,027,451     and 12,895,174 shares issued and 12,267,177 and 12,134,900 shares outstanding at June 30, 2010     and December 31, 2009, respectively) |   |                      | 130,275     |    |              |   | 128,952 |   |
| Additional paid-in capital                                                                                                                                                                                                                                  |   |                      | 95,965,521  |    |              |   | 95,035,165 |   |
| Accumulated other comprehensive (loss) income                                                                                                                                                                                                               |   |                      | (1,930      | )  |              |   | 68,173 |   |
| Accumulated deficit                                                                                                                                                                                                                                         |   |                      | (90,895,382 | )       |              |   | (82,119,826 | ) |
|   Subtotal                                                                                                                                                                                                                                        |   |                      | 5,198,484   |    |              |   | 13,112,464 |   |
| Less: Treasury stock, at cost (760,274 shares at June 30, 2010 and December 31, 2009)                                                                                                                                                                       |   |                      | (3,076,670  | )       |              |   | (3,076,670 | ) |
| Total stockholders' equity                                                                                                                                                                                                                                  |   |                      | 2,121,814   |    |              |   | 10,035,794 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                                                                                                                  |   | $                         | 6,559,907   |    |              | $      | 14,805,332 |   |
|                                                                                                                                                                                                                                                        |   |                      |        |    |              |   |   |   |

----

|                                                         |   | Three MonthsEnded June 30, |       |   | Six Months Ended June 30, |   |
|--------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------------|--------|
|                                                         |   | 2010                       |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|  Operating expenses:                                    |   |                       |       |   |                           |   |   |   |   |   |   |   |
| Research and development                                     |   | $                          | 3,439,302  |   |                           | $      | 4,229,715 |   |   | $ | 6,714,597 |   |   | $ | 7,172,442 |   |
| General and administrative                                   |   |                       | 1,025,369  |   |                           |   | 602,433 |   |   |   | 2,324,487 |   |   |   | 1,290,642 |   |
|  Total operating expenses                               |   |                       | 4,464,671  |   |                           |   | 4,832,148 |   |   |   | 9,039,084 |   |   |   | 8,463,084 |   |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|  Loss from operations                                   |   |                       | (4,464,671 | )      |                           |   | (4,832,148 | ) |   |   | (9,039,084 | ) |   |   | (8,463,084 | ) |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|  Other income (expense):                                |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of common stock warrants                |   |                       | 1,828,544  |   |                           |   | - |   |   |   | 258,925 |   |   |   | - |   |
| Interest income                                              |   |                       | 13,953     |   |                           |   | 5,873 |   |   |   | 22,150 |   |   |   | 26,871 |   |
| Interest expense                                             |   |                       | (8,336     | )      |                           |   | (88,098 | ) |   |   | (17,528 | ) |   |   | (94,920 | ) |
| Other (expense) income                                       |   |                       | (5         | )      |                           |   | 322,950 |   |   |   | (19 | ) |   |   | 322,943 |   |
| Total other income (expense), net                            |   |                       | 1,834,156  |   |                           |   | 240,725 |   |   |   | 263,528 |   |   |   | 254,894 |   |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|  Net Loss                                               |   | $                          | (2,630,515 | )      |                           | $      | (4,591,423 | ) |   | $ | (8,775,556 | ) |   | $ | (8,208,190 | ) |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per common share – basic and diluted          |   | $                          | (0.22      | )      |                           | $      | (0.45 | ) |   | $ | (0.72 | ) |   | $ | (0.81 | ) |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding – basicand diluted |   |                       | 12,231,620 |   |                           |   | 10,196,295 |   |   |   | 12,207,826 |   |   |   | 10,193,596 |   |
|                                                         |   |                       |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                     |   | Six Months Ended June 30, |        |
|----------------------------------------------------------|--------|---------------------------|-------------|
|                                                     |   | 2010                      |        |   | 2009 |   |
| Cash flows from operating activities:                    |   |                      |        |   |   |   |
| Net loss                                                 |   | $                         | (8,775,556  | ) |   | $ | (8,208,190 | ) |
| Non-cash items included in net loss:                     |   |                      |        |   |   |   |   |   |
| Depreciation and amortization                            |   |                      | 82,747      |   |   |   | 44,051 |   |
| Amortization of indemnity reserve                        |   |                      | -           |   |   |   | (1,053,357 | ) |
| Change in fair value of common stock warrant liability   |   |                      | (258,925    | )  |   |   | - |   |
| Stock based compensation - Options                       |   |                      | 536,422     |   |   |   | 448,768 |   |
| Stock based compensation - Restricted Stock              |   |                      | 239,197     |   |   |   | 105,700 |   |
| Shares issued in exchange for services                   |   |                      | 18,060      |   |   |   | - |   |
| Shares issued in connection with the CEFF                |   |                      | 138,000     |   |   |   | - |   |
| Reversal of provision for bad debts                      |   |                      | -           |   |   |   | (322,416 | ) |
| Amortization of deferred license fee                     |   |                      | 3,750       |   |   |   | 3,750 |   |
| Net changes in:                                          |   |                      |        |   |   |   |   |   |
| Refundable income taxes                                  |   |                      | 806,255     |   |   |   | - |   |
| Due from Boston Scientific                               |   |                      | -           |   |   |   | 15,000,000 |   |
| Prepaid expenses and other                               |   |                      | 405,617     |   |   |   | 157,732 |   |
| Deposits and other assets                                |   |                      | 13,524      |   |   |   | (388,149 | )  |
| Accounts payable                                         |   |                      | (25,785     | )  |   |   | 1,952,583 |   |
| Other accrued liabilities                                |   |                      | 5,662       |   |   |   | (30,179 | ) |
| Net cash (used in) provided by operating activities:     |   |                      | (6,811,032  | ) |   |   | 7,710,293 |   |
|                                                     |   |                      |        |   |   |   |   |   |
|   Cash flows from investing activities              |   |                      |        |   |   |   |   |   |
| Purchases of investment securities                       |   |                      | (11,491,561 | ) |   |   | (3,085,068 | ) |
| Proceeds from sale/maturity of investment securities     |   |                      | 14,177,455  |   |   |   | 4,316,181 |   |
| Purchase of property and equipment                       |   |                      | (800        | ) |   |   | (48,113 | ) |
| Net cash provided by investing activities                |   |                      | 2,685,094   |   |   |   | 1,183,000 |   |
|                                                     |   |                      |        |   |   |   |   |   |
| Cash flows from financing activities                     |   |                      |        |   |   |   |   |   |
| Principal payments on note payable                       |   |                      | (52,397     | ) |   |   | (234,735 | ) |
| Net cash (used by) financing activities                  |   |                      | (52,397     | ) |   |   | (234,735 | ) |
|                                                     |   |                      |        |   |   |   |   |   |
|  (Decrease) increase in cash and cash equivalents   |   |                      | (4,178,335  | ) |   |   | 8,658,558 |   |
|  Cash and cash equivalents at beginning of period   |   |                      | 6,923,476   |   |   |   | 3,456,225 |   |
|                                                     |   |                      |        |   |   |   |   |   |
|  Cash and cash equivalents at end of period         |   | $                         | 2,745,141   |   |   | $ | 12,114,783 |   |
|                                                     |   |                      |        |   |   |   |   |   |
|  Supplemental disclosures of cash flow information: |   |                      |        |   |   |   |   |   |
|  Interest paid                                      |   | $                         | 17,528      |   |   | $ | 94,920 |   |
|                                                     |   |                      |        |   |   |   |   |   |

----

|                                                               | Common Stock Outstanding |     | Treasury Stock                   | Accumulated Other Comp.  Income |         |                            |
|--------------------------------------------------------------------|--------------------------|----------|----------------------------------|-------------------------------------------|--------------|---------------------------------|
|                                                               | Shares                   | Amount   | Additional Paid–in Capital | Shares                                    | Amount       | Accumulated Deficit             | Total |
| Balance at December 31, 2009                                       | 12,134,900               | $128,952 | $  95,035,165          | 760,274                                   | $(3,076,670) | $    68,173 | $(82,119,826) | $10,035,794 |
| Shares issued under CEFF                                           | 40,000                   | 400      | 137,600                          |                                      |         |                            |   | 138,000 |
| Stock-based compensation expense related to employee stock options | -                        | -        | 536,422                          | -                                         | -            | -                               | - | 536,422 |
| Stock-based compensation expense related to restricted stock       | -                        | -        | 239,197                          | -                                         | -            | -                               | - | 239,197 |
| Shares issued in exchange for services                             | 6,000                    | 60       | 18,000                           | -                                         | -            | -                               | - | 18,060 |
| Issuance of restricted stock upon vesting                          | 86,277                   | 863      | (863)                            | -                                         | -            | -                               | - | - |
| Unrealized gain (loss) on investments                              | -                        | -        | -                                | -                                         | -            | (70,103)                        | - | (70,103) |
| Net loss                                                           | -                        | -        | -                                | -                                         | -            | -                               | (8,775,556) | (8,775,556) |
| Balance at June 30, 2010                                           | 12,267,177               | $130,275 | $  95,965,521          | 760,274                                   | $(3,076,670) | $   (1,930)      | $(90,895,382) | $ 2,121,814 |

----

----

| Short-term investments - at fair value           |   | June 30,2010 |      |   | December 31, 2009 |   |
|--------------------------------------------------|--------|--------------|-----------|--------|-------------------|--------|
| Bonds - corporate issuances                      |   | $            | 2,829,109 |   |              | $      | 5,528,164 |   |
| Equity securities                                |   |         | 110,360   |   |              |   | 167,302 |   |
| Total short-term investments, available for sale |   | $            | 2,939,469 |   |              | $      | 5,695,466 |   |

----

|                                 |   | June 30, 2010 |      |   | December 31, 2009 |   |
|--------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                 |   | Cost               |      |   | FairValue         |   |   | Cost |   |   | FairValue |   |
| Short-term investments               |   |               |      |   |              |   |   |   |   |   |   |   |
| Bonds - corporate issuances          |   | $                  | 2,829,109 |   |              | $      | 2,829,109 |   |   | $ | 5,528,164 |   |   | $ | 5,528,164 |   |
| Equity securities                    |   |               | 108,373   |   |              |   | 110,360 |   |   |   | 108,373 |   |   |   | 167,302 |   |
| Total investments available for sale |   | $                  | 2,937,482 |   |              | $      | 2,939,469 |   |   | $ | 5,636,537 |   |   | $ | 5,695,466 |   |
|                                 |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Bond maturities                      |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Within 3 months                      |   | $                  | 1,506,731 |   |              | $      | 1,506,731 |   |   | $ | 1,894,022 |   |   | $ | 1,894,022 |   |
| Between 3-12 months                  |   |               | 1,322,378 |   |              |   | 1,322,378 |   |   |   | 3,321,320 |   |   |   | 3,321,320 |   |
| Between 1-2 years                    |   |               | -         |   |              |   | - |   |   |   | 312,822 |   |   |   | 312,822 |   |
| Total                                |   | $                  | 2,829,109 |   |              | $      | 2,829,109 |   |   | $ | 5,528,164 |   |   | $ | 5,528,164 |   |
|                                 |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                         |   | 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, June 30, 2010     |   | $                                         | 2,939,469 |   |                                                                        | $      | 2,829,109 |                                               |   | $      | -                                             |   |   | $ | 110,360 |   |
|                                                         |   |                                      |      |   |                                                                        |   |      |                                               |   |   |                                          |   |   |   |   |   |
| Short-term investments available for sale, December 31, 2009 |   | $                                         | 5,695,466 |   |                                                                        | $      | 5,528,164 |                                               |   | $      | -                                             |   |   | $ | 167,302 |   |
|                                                         |   |                                      |      |   |                                                                        |   |      |                                               |   |   |                                          |   |   |   |   |   |
| Liabilities:                                                 |   |                                      |      |   |                                                                        |   |      |                                               |   |   |                                          |   |   |   |   |   |
| Common stock warrant liability, June 30, 2010 (see Note 12)  |   | $                                         | 562,966   |   |                                                                        | $      | -         |                                               |   | $      | -                                             |   |   | $ | 562,966 |   |
|                                                         |   |                                      |      |   |                                                                        |   |      |                                               |   |   |                                          |   |   |   |   |   |
| Common stock warrant liability, December 31, 2009            |   | $                                         | 821,891   |   |                                                                        | $      | -         |                                               |   | $      | -                                             |   |   | $ | 821,891 |   |

|                                                                                  |   | June 30, 2010 |      |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
| Amounts due to Contract Research Organizations and under other contractual agreements |   | $             | 1,028,269 |   |              | $      | 1,122,370 |   |
| Accrued payroll and related benefits                                                  |   |          | 275,635   |   |              |   | 262,396 |   |
| Reimbursed expenses not yet incurred                                                  |   |          | 97,529    |   |              |   | - |   |
| Accrued professional fees                                                             |   |          | 47,000    |   |              |   | 47,000 |   |
| Other                                                                                 |   |          | 19,746    |   |              |   | 19,776 |   |
|    Total                                                               |   | $             | 1,468,179 |   |              | $      | 1,451,542 |   |

----

|                     |   | June 30,2010 |   |   | December 31, 2009 |   |
|--------------------------|--------|--------------|--------|--------|-------------------|--------|
| Risk-free interest rate  |   |         | 1.79   | %      |              |   | 2.69 | % |
| Expected volatility      |   |         | 53.3   | %      |              |   | 58.9 | % |
| Expected life (in years) |   |         | 2.4    |   |              |   | 2.6 |   |
| Expected forfeiture rate |   |         | 0      | %      |              |   | 0 | % |
| Expected dividend yield  |   |         | 0.00   | %      |              |   | 0.00 | % |

----

----

|                     |   |   Six months ended June 30,2010 |               |   |   Six months ended June 30,2009 |   |
|--------------------------|--------|-------------------------------------------|--------------------|--------|-------------------------------------------|--------|
| Risk-free interest rate  |   |                                      | 2.44% – 3.24 | %      |                                      |   | 1.12% - 2.17 | % |
| Expected volatility      |   |                                      | 72.1% -82.8        | %      |                                      |   | 72.3% -77.2 | % |
| Expected life (in years) |   |                                      | 5 – 6.5      |   |                                      |   | 2.7 – 6.25 |   |
| Expected forfeiture rate |   |                                      | 0                  | %      |                                      |   | 0% - 10 | % |
| 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, 2009                   |   |               | 1,641,979 |   |                                | $      | 3.96   |                                 |   |   | 78,599 |   |   | $ | 3.06 |   |   |   |   |
| Equity awards granted/issued                                     |   |               | 521,500   |   |                                | $      | 3.07   |                                 |   |   | 113,243 |   |   | $ | 3.16 |   |   |   |   |
| Equity awards issued/exercised                                   |   |               | -         |   |                                |   | -      |                                 |   |   | (92,276 | ) |   | $ | 2.84 |   |   |   |   |
| Equity awards forfeited, cancelled or expired                    |   |               | (110,334  | )      |                                | $      | 3.03   |                                 |   |   | (22,166 | ) |   | $ | 3.06 |   |   |   |   |
| Equity awards outstanding at June 30, 2010                       |   |               | 2,053,146 |   |                                | $      | 3.78   |                                 |   |   | 77,400 |   |   | $ | 3.47 |   |   |   | 7.2 |   |
|                                                             |   |               |      |   |                                |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Aggregate intrinsic value of outstanding awards at June 30, 2010 |   | $                  | 551,957   |   |                                |   |   |                                 |   | $ | 155,231 |   |   |   |   |   |   |   |   |   |
| Equity awards exercisable at June 30, 2010                       |   |               | 1,042,942 |   |                                | $      | 4.21   |                                 |   |   |   |   |   |   |   |   |   |   | 6.3 |   |
| Aggregate intrinsic value of vested awards at June 30, 2010      |   | $                  | 301,029   |   |                                |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |               |      |   |                                |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |

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| Beginning balance, January 1, 2010                  |   | $      | 821,891  |    |
|-----------------------------------------------------|--------|--------|----------|---------|
| Issuances                                           |   |   | -        |    |
| Gain from change in fair value included in net loss |   |   | (258,925 | )  |
| Ending balance, June 30, 2010                       |   | $      | 562,966  |    |

| Warrants                         |   | Number Outstanding |      |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term (in years) |   |   | Aggregate Intrinsic Value |   |
|----------------------------------|--------|--------------------|-----------|--------|---------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|---------------------------|--------|
| Outstanding at December 31, 2009 |   |               | 1,032,410 |   |                            | $      | 5.34   |                                                        |   |   |                      |   |   |   |
| Granted                          |   |               | -         |   |                            |   | -      |                                                        |   |   |                      |   |   |   |
| Exercised                        |   |               | -         |   |                            |   | -      |                                                        |   |   |                      |   |   |   |
| Canceled or expired              |   |               | (23,334   | )      |                            | $      | 9.86   |                                                        |   |   |                      |   |   |   |
| Outstanding at June 30, 2010     |   |               | 1,009,076 |   |                            | $      | 5.24   |                                                        |   |   | 4.75                      |   |   | $ | - |   |
|                             |   |               |      |   |                            |   |   |                                                        |   |   |                      |   |   |   |   |   |
| Exercisable at June 30, 2010     |   |               | 1,009,076 |   |                            | $      | 5.24   |                                                        |   |   | 4.75                      |   |   | $ | - |   |

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|                           |   | Three Months Ended June 30,($ amounts in 000’s) |   |   | Change |   |
|--------------------------------|--------|------------------------------------------------------------|--------|--------|--------|--------|
|                           |   | 2010                                                       |   |   | 2009   |   |   |  $ |   |   |   | % |   |
|   Operating expenses:     |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Research and development       |   | $                                                          | 3,439  |   |   | $      | 4,230 |   |   | $ | (791 | )  |   |   | (18.7 | ) % |
| General and administrative     |   |                                                       | 1,026  |   |   |   | 602 |   |   |   | 424 |   |   |   | 70.4 |   % |
|  Total operating expenses |   |                                                       | 4,465  |   |   | $      | 4,832 |   |   |   | (367 | ) |   |   | (7.6 | ) % |
|                           |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loss from operations    |   | $                                                          | (4,465 | )      |   | $      | (4,832 | ) |   | $ | 367 |   |   |   | 7.6 |   % |
|                           |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                           |   | Six Months Ended June 30,($ amounts in 000’s) |   |   | Change |   |
|--------------------------------|--------|-----------------------------------------------------|--------|--------|--------|--------|
|                           |   | 2010                                                |   |   | 2009   |   |   |  $ |   |   |   | % |   |
|   Operating expenses:     |   |                                                |   |   |   |   |   |   |   |   |   |   |   |
| Research and development       |   | $                                                   | 6,715  |   |   | $      | 7,172 |   |   | $ | (458 | )  |   |   | (6.4 | ) % |
| General and administrative     |   |                                                | 2,324  |   |   |   | 1,291 |   |   |   | 1,034 |   |   |   | 80.1 |   % |
|  Total operating expenses |   |                                                | 9,039  |   |   | $      | 8,463 |   |   |   | 576 |   |   |   | 6.8 |   % |
|                           |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Loss from operations    |   | $                                                   | (9,039 | )      |   | $      | (8,463 | ) |   | $ | (576 | ) |   |   | (6.8 | ) % |
|                           |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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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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