----

----

|   | Nevada                                                              |   | 36-3207413                  |   |
|--------|---------------------------------------------------------------------|--------|-----------------------------|--------|
|   | (State      or other jurisdiction of incorporation or organization) |   | (IRS      Employer Id. No.) |   |

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

----

|                                           |                                                                                                                          |   |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                           | Page No.                                                                                                                 |
| PART I      – FINANCIAL INFORMATION |                                                                                                                          |
|                                           |                                                                                                                          |   |
| Item 1                                    | Financial Statements                                                                                                          | 3      |
|                                           |                                                                                                                          |   |
|                                           | Consolidated Balance Sheets as of March 31, 2009      (unaudited) and December 31, 2008                                       | 3      |
|                                           |                                                                                                                          |   |
|                                           | Consolidated Statements of Operations (unaudited)      for the three months ended March 31, 2009 and      2008 | 4      |
|                                           |                                                                                                                          |   |
|                                           | Consolidated Statements of Cash Flows (unaudited) for the      three months ended March 31, 2009 and 2008                | 5      |
|                                           |                                                                                                                          |   |
|                                           | Notes to the Consolidated Financial Statements      (unaudited)                                                          | 6      |
|                                           |                                                                                                                          |   |
| Item 2                                    | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                              | 15     |
|                                           |                                                                                                                          |   |
| 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                                                                                               | 21     |
|                                           |                                                                                                                          |   |
| Item 4                                    | Submission of Matters to a Vote of Security      Holders                                                                      | 21     |
|                                           |                                                                                                                          |   |
| Item 5                                    | Other Information                                                                                                             | 22     |
|                                           |                                                                                                                          |   |
| Item 6                                    | Exhibits                                                                                                                      | 22     |
|                                           |                                                                                                                          |
| Signatures                                     | 23                                                                                                                            |

----

| Part      I. | Financial      Information |
|--------------|----------------------------|

| Item 1 | Financial      Statements |
|--------|---------------------------|

| PHARMOS      CORPORATION                                                                                                     |   |               |         |    |                   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------------|---------|------------------------|--------|
| (Unaudited)                                                                                                                  |   |               |         |    |                   |   |
| Consolidated Balance Sheets                                                                                                  |   |               |         |    |                   |   |
|                                                                                                                         |   | March      31,2009 |         |    | December      31, 2008 |   |
| Assets                                                                                                                       |   |               |         |    |                   |   |
| Cash      and cash equivalents                                                                                               |   | $                  | 2,937,025    |    |                   | $      | 4,730,282 |   |
| Restricted      cash                                                                                                         |   |               | 38,998       |    |                   |   | 38,998 |   |
| Prepaid      expenses and other current assets                                                                               |   |               | 667,931      |    |                   |   | 1,049,898 |   |
| Total      current assets                                                                                                    |   |               | 3,643,954    |    |                   |   | 5,819,178 |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
| Fixed      assets, net                                                                                                       |   |               | 7,566        |    |                   |   | 9,692 |   |
| Other      assets                                                                                                            |   |               | 130,469      |    |                   |   | 143,294 |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
| Total      assets                                                                                                            |   | $                  | 3,781,989    |    |                   | $      | 5,972,164 |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
| Liabilities      and Shareholders’ Equity                                                                              |   |               |         |    |                   |   |   |   |
| Accounts      payable                                                                                                        |   | $                  | 1,134,946    |    |                   | $      | 883,966 |   |
| Accrued      expenses                                                                                                        |   |               | 704,386      |    |                   |   | 615,663 |   |
| Accrued      wages and other compensation                                                                                    |   |               | 18,000       |    |                   |   | 87,000 |   |
| Total      current liabilities                                                                                               |   |               | 1,857,332    |    |                   |   | 1,586,629 |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
| Other      liabilities                                                                                                       |   |               | 33,245       |    |                   |   | 44,316 |   |
| Milestone      payable                                                                                                       |   |               | 1,000,000    |    |                   |   | - |   |
| Convertible      debentures                                                                                                  |   |               | 4,000,000    |    |                   |   | 4,000,000 |   |
| Total      liabilities                                                                                                       |   |               | 6,890,577    |    |                   |   | 5,630,945 |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
| Shareholders’      Equity                                                                                              |   |               |         |    |                   |   |   |   |
| Preferred      stock, $.03 par value, 1,250,000 shares authorized, none issued and      outstanding                          |   |               | -            |    |                   |   | - |   |
|     Common      stock, $.03 par value; 60,000,000 shares authorized, 26,798,526 and      26,210,290      |   |               |         |    |                   |   |   |   |
|     Issued      and outstanding as of  March 31, 2009 and December 31, 2008,      respectively |   |               | 803,956      |    |                   |   | 786,307 |   |
| Paid-in      capital in excess of par                                                                                        |   |               | 206,520,092  |    |                   |   | 206,309,096 |   |
| Accumulated      deficit                                                                                                     |   |               | (210,432,210 | )       |                   |   | (206,753,758 | ) |
| Treasury      stock, at cost, 2,838 shares                                                                                   |   |               | (426         | )       |                   |   | (426 | ) |
| Total      shareholders' equity                                                                                              |   |               | (3,108,588   | )  |                   |   | 341,219 |   |
|                                                                                                                         |   |               |         |    |                   |   |   |   |
| Total      liabilities and shareholders' equity                                                                              |   | $                  | 3,781,989    |    |                   | $      | 5,972,164 |   |

| The      accompanying notes are an integral part of these unaudited interim      consolidated financial statements. |
|---------------------------------------------------------------------------------------------------------------------|

----

| PHARMOS      CORPORATION(Unaudited)Consolidated Statements of  Operations |
|---------------------------------------------------------------------------|

|                                                          |   | Three      months endedMarch      31, |       |
|---------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                          |   |                                  |       |
|                                                          |   | 2009                                  |       |   | 2008 |   |
| Expenses                                                      |   |                                  |       |   |   |   |
| Research      and development                                 |   | $                                     | 2,014,420  |   |   | $ | 2,778,234 |   |
| In–process      research and development Vela milestone |   |                                  | 1,180,000  |   |   |   | - |   |
| General      and administrative                               |   |                                  | 334,749    |   |   |   | 796,924 |   |
| Depreciation      and amortization                            |   |                                  | 2,126      |   |   |   | 34,552 |   |
| Total      operating expenses                                 |   |                                  | 3,531,295  |   |   |   | 3,609,710 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Loss      from operations                                     |   |                                  | (3,531,295 | ) |   |   | (3,609,710 | ) |
|                                                          |   |                                  |       |   |   |   |   |   |
| Other      (expense) income                                   |   |                                  |       |   |   |   |   |   |
| Interest      income                                          |   |                                  | 5,286      |   |   |   | 130,700 |   |
| Interest      expense                                         |   |                                  | (119,838   | )  |   |   | (122,862 | )  |
| Other      income (expense)                                   |   |                                  | (32,605    | ) |   |   | 6,989 |   |
| Other      income (expense), net                              |   |                                  | (147,157   | ) |   |   | 14,827 |   |
|                                                          |   |                                  |       |   |   |   |   |   |
| Net      loss                                                 |   | $                                     | (3,678,452 | ) |   | $ | (3,594,883 | ) |
|                                                          |   |                                  |       |   |   |   |   |   |
| Net      loss per share                                       |   |                                  |       |   |   |   |   |   |
| -      basic and diluted                                      |   | $                                     | (0.14      | ) |   | $ | (0.14 | ) |
|                                                          |   |                                  |       |   |   |   |   |   |
| Weighted      average shares outstanding                      |   |                                  |       |   |   |   |   |   |
| -      basic and diluted                                      |   |                                  | 26,697,649 |   |   |   | 25,739,855 |   |

----

Consolidated 

|                                                                                        | Three      months ended March 31, |   |
|---------------------------------------------------------------------------------------------|-----------------------------------|--------|
|                                                                                        | 2009                              |   |   | 2008 |   |
| Cash      flows from operating activities                                                   |                              |   |   |   |   |
| Net      loss                                                                               |                              | $      | (3,678,452 | ) |   | $ | (3,594,883 | ) |
|                                                                                        |                              |   |   |   |   |   |   |   |
|  Adjustments      to reconcile net loss to net cash used in operating      activities: |                              |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                          |                              |   | 2,126 |   |   |   | 34,552 |   |
| Provision      for severance pay                                                            |                              |   | - |   |   |   | (113,243 | ) |
| Stock      based compensation                                                               |                              |   | 26,977 |   |   |   | 159,748 |   |
| Debenture      interest paid in common stock                                                |                              |   | 201,667 |   |   |   | - |   |
|     Loss      on disposition of fixed assets                            |                              |   | - |   |   |   | 26,429 |   |
| Changes      in operating assets and liabilities:                                           |                              |   |   |   |   |   |   |   |
| Research      and development grants receivable                                             |                              |   | - |   |   |   | 3,859 |   |
| Prepaid      expenses and other current assets                                              |                              |   | 381,967 |   |   |   | (392,689 | ) |
| Other      assets                                                                           |                              |   | 12,825 |   |   |   | (74,481 | )  |
| Accounts      payable                                                                       |                              |   | 250,981 |   |   |   | 545,157 |   |
| Accrued      expenses                                                                       |                              |   | 88,723 |   |   |   | 47,863 |   |
| Accrued      wages and other compensation                                                   |                              |   | (69,000 | ) |   |   | (572,035 | ) |
| Milestone      payable                                                                      |                              |   | 1,000,000 |   |   |   |   |   |
| Other      liabilities                                                                      |                              |   | (11,071 | ) |   |   | (11,072 | ) |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Net      cash used in operating activities                                                  |                              |   | (1,793,257 | ) |   |   | (3,940,795 | ) |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Cash      flows from investing activities                                                   |                              |   |   |   |   |   |   |   |
|     Purchases      of fixed assets                                      |                              |   | - |   |   |   | (445 | )  |
| Proceeds      from disposition of fixed assets                                              |                              |   | - |   |   |   | 42,626 |   |
| Proceeds      from sale of short-term investments                                           |                              |   | - |   |   |   | 3,686,568 |   |
| Severance      pay funding                                                                  |                              |   | - |   |   |   | 58,417 |   |
| Increase      in restricted cash                                                            |                              |   | - |   |   |   | (864 | )  |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Net      cash provided by investing activities                                              |                              |   | - |   |   |   | 3,786,302 |   |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Cash      flows from financing activities                                                   |                              |   |   |   |   |   |   |   |
| Proceeds      from issuance of convertible debentures                                       |                              |   | - |   |   |   | 4,000,000 |   |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                                   |                              |   | (1,793,257 | ) |   |   | 3,845,507 |   |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of year                                         |                              |   | 4,730,282 |   |   |   | 7,481,741 |   |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                             |                              | $      | 2,937,025 |   |   | $ | 11,327,248 |   |
|                                                                                        |                              |   |   |   |   |   |   |   |
| Supplementary      information on financing activity not involving cashflows:               |                              |   |   |   |   |   |   |   |
|     Interest      paid in common stock                                  |                              |   | 201,667 |   |   |   | - |   |
|                                                                                        |                              |   |   |   |   |   |   |   |

----

Notes 

----

----

----

----

----

| Period      Ended   |   | Grants      Issued |   |   | Weighted      Average Exercise Price |   |   | Weighted      AverageFair      Value |   |
|---------------------|--------|--------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
|                |   |               |   |   |                                 |   |   |                                 |   |
| March      31, 2009 |   |               |   |   | 65,000                               |   |   | $                                    | 0.14   |   |   | $ | 0.10 |   |
| March      31, 2008 |   |               |   |   | 744,000                              |   |   | $                                    | 0.35   |   |   | $ | 0.24 |   |

----

| ·   | $2      million cash + 2.25 million shares: Successful completion of Phase 2b(1) |
|--------------------|----------------------------------------------------------------------------------|

| ·   | $2      million + 2 million shares: NDAsubmission |
|--------------------|---------------------------------------------------|

| ·   | $2      million cash +2.25 million shares: FDAapproval |
|--------------------|--------------------------------------------------------|

| ·   | 1      million shares: Approval to market in Europe or  Japan |
|--------------------|---------------------------------------------------------------|

| ·   | 4      million shares: $100 million sales of dextofisopam, when and if approved,      in any 12-month period |
|--------------------|--------------------------------------------------------------------------------------------------------------|

|                                                                       |   | March      31, |
|----------------------------------------------------------------------------|--------|----------------|
|                                                                       |   | 2009           |   | 2008 |
|                                                                       |   |           |   |   |
| Stock      options                                                         |   |           | 2,678,555 |   | 2,885,034 |
| Warrants                                                                   |   |           | - |   | 263,529 |
|                                                                       |   |           |   |   |   |
| Total      potential dilutive securities not included in loss per    share |   |           | 2,678,555 |   | 3,148,563 |

----

|                            |   | Three months ended March31, |       |
|---------------------------------|--------|-----------------------------|------------|
|                            |   | 2009                        |       |   | 2008 |   |
| Net      (loss) income          |   |                        |       |   |   |   |
|   United      States  |   | $                           | (3,612,693 | ) |   | $ | (3,558,109 | ) |
|   Israel              |   |                        | (65,759    | ) |   |   | (36,774 | ) |
|                            |   | $                           | (3,678,452 | ) |   | $ | (3,594,883 | ) |
|                            |   |                        |       |   |   |   |   |   |
|  Capital      Expenditures |   |                        |       |   |   |   |   |   |
|   United      States  |   | $                           | -          |   |   | $ | - |   |
|   Israel              |   |                        | -          |   |   |   | 445 |   |
|                            |   | $                           | -          |   |   | $ | 445 |   |

| Total      Assets              |   | March 31, 2009 |      |   | December 31, 2008 |   |
|--------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|   United      States |   | $              | 3,617,196 |   |              | $      | 5,417,338 |   |
|   Israel             |   |           | 164,793   |   |              |   | 554,826 |   |
|                           |   | $              | 3,781,989 |   |              | $      | 5,972,164 |   |
|                           |   |           |      |   |              |   |   |   |
| Long      Lived Assets, net    |   |           |      |   |              |   |   |   |
|   United      States |   | $              | 7,566     |   |              | $      | 9,692 |   |
|   Israel             |   |           |      |   |              |   | - |   |
|                           |   | $              | 7,566     |   |              | $      | 9,692 |   |

----

----

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

----

----

|                                 |   | March      31, 2009 |      |   | December      31, 2008 |   |
|--------------------------------------|--------|---------------------|-----------|--------|------------------------|--------|
|                                 |   |                |      |   |                   |   |
| Working      capital                 |   | $                   | 1,786,622 |   |                   | $      | 4,232,549 |   |
|                                 |   |                |      |   |                   |   |   |   |
| Cash      and cash equivalents       |   | $                   | 2,937,025 |   |                   | $      | 4,730,282 |   |
|                                 |   |                |      |   |                   |   |   |   |
| Total      cash and cash equivalents |   | $                   | 2,937,025 |   |                   | $      | 4,730,282 |   |

----

----

|                                |   | Total  |      |   | Less      than1      Year |   |      | 1 -      3Years |   |   | 3 -      5Years |   |   | Undetermined |       |
|-------------------------------------|--------|--------|-----------|--------|---------------------------|--------|-----------|-----------------|--------|--------|-----------------|--------|--------|--------------|------------|
| Operating      leases               |   | $      | 173,330   |   |                      | $      | 173,330   |            |   | $      | -               |   |   | $            | -          |   |   | $ | - |   |
| ICON      CRO Vendor                |   |   | 532,000   |   |                      |   | 532,000   |            |   |   | -               |   |   |         | -          |   |   |   | - |   |
| Essential      CRO Vendor           |   |   | 478,454   |   |                      |   | 478,454   |            |   |   | -               |   |   |         | -          |   |   |   | - |   |
| Vela      Milestone                 |   |   | 1,000,000 |   |                      |   |      |            |   |   | 1,000,000       |   |   |         |       |   |   |   |   |   |
| Convertible      debenture          |   |   | 4,000,000 |   |                      |   | -         |            |   |   | -               |   |   |         | 4,000,000  |   |   |   | - |   |
| Convertible      debenture interest |   |   | 1,433,333 |   |                      |   | 400,000   |            |   |   | 800,000         |   |   |         | 233,333    |   |   |   | - |   |
| Total                               |   | $      | 7,617,117 |   |                      | $      | 1,583,784 |            |   | $      | 1,800,000       |   |   | $            | 4,233,3333 |   |   | $ | - |   |

| ·   | $2      million cash + 2.25 million shares: Successful completion of Phase 2b(1) |
|--------------------|----------------------------------------------------------------------------------|

| ·   | $2      million + 2 million shares: NDAsubmission |
|--------------------|---------------------------------------------------|

| ·   | $2      million cash +2.25 million shares: FDAapproval |
|--------------------|--------------------------------------------------------|

| ·   | 1      million shares: Approval to market in Europe or  Japan |
|--------------------|---------------------------------------------------------------|

| ·   | 4      million shares: $100 million sales of dextofisopam, when and if approved,      in any 12-month period |
|--------------------|--------------------------------------------------------------------------------------------------------------|

----

|   | Item 3. | Quantitative      and Qualitative Disclosures About MarketRisk |
|--------|---------|----------------------------------------------------------------|

|   | Item 4. | Controls      and Procedures |
|--------|---------|------------------------------|

----

Item 1

| Item 1A | Risk      Factors |
|---------|-------------------|

| Item 2 | Unregistered      Sales of Equity Securities and Use ofProceeds |
|--------|-----------------------------------------------------------------|

Item3

Item4

----

Item5

Item6

| Number |   | Exhibit                                                                                                                                                                                                                                                   |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                      |
| 4.1    |   | Form      of waiver, dated January 15, 2009, under Pharmos Corporation 10%      Convertible Debentures Due November 1, 2012 (incorporated by reference to      exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 22,      2009) |
|   |   |                                                                                                                                                                                                                                                      |
| 10.1   |   | Asset      Purchase Agreement, dated as of February 11, 2009, by and between Pharmos      Corporation, Pharmos Ltd. and Reperio Pharmaceuticals Ltd.                                                                                                 |
|   |
| 31.1   |   | Certification      of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a)      and 15(d)-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002.                                                                  |
|   |   |                                                                                                                                                                                                                                                      |
| 31.2   |   | Certification      of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and      15(d)-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.                                                                      |
|   |   |                                                                                                                                                                                                                                                      |
| 32.1   |   | Certification      of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                            |
|   |   |                                                                                                                                                                                                                                                      |
| 32.2   |   | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                |

|   |   |
|--------|--------|

----

SIGNATURE

|                    |   | PHARMOS      CORPORATION                                           |                    |
|-------------------------|--------|--------------------------------------------------------------------|-------------------------|
|                    |   |                                                               |                    |   |
|                    |   |                                                               |                    |   |
| Date:      May 12, 2009 |   |                                                               |                    |   |
|                    |   | by:                                                                | /s/      S. Colin Neill |   |
|                    |   |                                                               |                    |   |
|                    |   | S.      Colin Neill                                                |                    |
|                    |   | President,      Chief Financial Officer, Secretary & Treasurer |                    |
|                    |   | (Principal      Accounting and Financial Officer)                  |                    |

----