----

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

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|                                      |                                                                                                           |   |
|-------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|
|                                      | Page No.                                                                                                  |
| PART I – FINANCIAL INFORMATION |                                                                                                           |
|                                      |                                                                                                           |   |
| Item 1                               | Financial Statements                                                                                           | 1      |
|                                      |                                                                                                           |   |
|                                      | Condensed Consolidated Balance Sheets as of March 31, 2010 (unaudited) and December 31, 2009                   | 1      |
|                                      |                                                                                                           |   |
|                                      | Condensed Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2010 and 2009 | 2      |
|                                      |                                                                                                           |   |
|                                      | Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2010 and 2009 | 3      |
|                                      |                                                                                                           |   |
|                                      | Notes to Condensed Consolidated Financial Statements (unaudited)                                               | 4      |
|                                      |                                                                                                           |   |
| Item 2                               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                    | 11     |
|                                      |                                                                                                           |   |
| Item 3                               | Quantitative and Qualitative Disclosures about Market Risk                                                     | 16     |
|                                      |                                                                                                           |   |
| Item 4                               | Controls and Procedures                                                                                        | 16     |
|                                      |                                                                                                           |
| PART II – OTHER INFORMATION         |                                                                                                           |
|                                      |                                                                                                           |   |
| Item 1                               | Legal Proceedings                                                                                              | 17     |
|                                      |                                                                                                           |   |
| Item 1A                              | Risk Factors                                                                                                   | 17     |
|                                      |                                                                                                           |   |
| Item 2                               | Unregistered Sales of Equity Securities and Use of Proceeds                                                    | 17     |
|                                      |                                                                                                           |   |
| Item 3                               | Defaults Upon Senior Securities                                                                                | 17     |
|                                      |                                                                                                           |   |
| Item 4                               | Submission of Matters to a Vote of Security Holders                                                            | 17     |
|                                      |                                                                                                           |   |
| Item 5                               | Other Information                                                                                              | 17     |
|                                      |                                                                                                           |   |
| Item 6                               | Exhibits                                                                                                       | 18     |
|                                      |                                                                                                           |
| Signatures                                | 19                                                                                                             |

----

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

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

| PHARMOS CORPORATION                                                                       |   |          |         |   |              |   |
|-------------------------------------------------------------------------------------------|--------|---------------|--------------|--------|-------------------|--------|
| Condensed Consolidated Balance Sheets                                                     |   |          |         |   |              |   |
|                                                                                      |   | March 31,2010 |         |   | December 31, 2009 |   |
| Assets                                                                                    |   | (Unaudited)   |         |   |              |   |
| Cash and cash equivalents                                                                 |   | $             | 3,884,487    |   |              | $      | 4,629,486 |   |
| Prepaid expenses and other current assets                                                 |   |          | 108,189      |   |              |   | 25,678 |   |
| Total current assets                                                                      |   |          | 3,992,676    |   |              |   | 4,655,164 |   |
|                                                                                      |   |          |         |   |              |   |   |   |
| Fixed assets, net                                                                         |   |          | 914          |   |              |   | 1,379 |   |
| Other assets                                                                              |   |          | 29,105       |   |              |   | 32,479 |   |
|                                                                                      |   |          |         |   |              |   |   |   |
| Total assets                                                                              |   | $             | 4,022,695    |   |              | $      | 4,689,022 |   |
|                                                                                      |   |          |         |   |              |   |   |   |
| Liabilities and Shareholders’ Equity                                                |   |          |         |   |              |   |   |   |
| Accounts payable                                                                          |   | $             | 76,989       |   |              | $      | 73,717 |   |
| Accrued expenses                                                                          |   |          | 68,704       |   |              |   | 148,414 |   |
| Accrued wages and other compensation                                                      |   |          | -            |   |              |   | 195,000 |   |
| Total current liabilities                                                                 |   |          | 145,693      |   |              |   | 417,131 |   |
|                                                                                      |   |          |         |   |              |   |   |   |
| Convertible debentures                                                                    |   |          | 1,000,000    |   |              |   | 1,000,000 |   |
| Total liabilities                                                                         |   |          | 1,145,693    |   |              |   | 1,417,131 |   |
|                                                                                      |   |          |         |   |              |   |   |   |
|                                                                                      |   |          |         |   |              |   |   |   |
| Shareholders’ Equity                                                                |   |          |         |   |              |   |   |   |
| Preferred stock, $.03 par value, 1,250,000 shares authorized, none issued and outstanding |   |          | -            |   |              |   | - |   |
| Common stock, $.03 par value; 120,000,000 shares                                          |   |          |         |   |              |   |   |   |
| authorized, 59,438,214 and 59,291,154 issued and outstanding as of                        |   |          |         |   |              |   |   |   |
| March 31, 2010 and December 31, 2009, respectively                                        |   |          | 1,783,147    |   |              |   | 1,778,735 |   |
| Paid-in capital in excess of par                                                          |   |          | 211,393,751  |   |              |   | 211,301,675 |   |
| Accumulated deficit                                                                       |   |          | (210,299,470 | )      |              |   | (209,808,093 | ) |
| Treasury stock, at cost, 2,838 shares                                                     |   |          | (426         | )      |              |   | (426 | ) |
| Total shareholders' equity                                                                |   |          | 2,877,002    |   |              |   | 3,271,891 |   |
|                                                                                      |   |          |         |   |              |   |   |   |
| Total liabilities and shareholders' equity                                                |   | $             | 4,022,695    |   |              | $      | 4,689,022 |   |

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

----

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

|                                                |   | Three months endedMarch 31, |       |
|-----------------------------------------------------|--------|-----------------------------|------------|
|                                                |   |                        |       |
|                                                |   | 2010                        |       |   | 2009 |   |
| Expenses                                            |   |                        |       |   |   |   |
| Research and development                            |   | $                           | 122,995    |   |   | $ | 2,014,420 |   |
| In–process research and development milestone |   |                        | -          |   |   |   | 1,180,000 |   |
| General and administrative                          |   |                        | 339,314    |   |   |   | 334,749 |   |
| Depreciation and amortization                       |   |                        | 465        |   |   |   | 2,126 |   |
| Total operating expenses                            |   |                        | 462,774    |   |   |   | 3,531,295 |   |
|                                                |   |                        |       |   |   |   |   |   |
| Loss from operations                                |   |                        | (462,774   | ) |   |   | (3,531,295 | ) |
|                                                |   |                        |       |   |   |   |   |   |
| Other (expense) income                              |   |                        |       |   |   |   |   |   |
| Interest income                                     |   |                        | 287        |   |   |   | 5,286 |   |
| Interest expense                                    |   |                        | (28,374    | )  |   |   | (119,838 | )  |
| Other income (expense)                              |   |                        | (516       | ) |   |   | (32,605 | ) |
| Other expense                                       |   |                        | (28,603    | ) |   |   | (147,157 | )  |
|                                                |   |                        |       |   |   |   |   |   |
| Net loss                                            |   | $                           | (491,377   | ) |   | $ | (3,678,452 | ) |
|                                                |   |                        |       |   |   |   |   |   |
| Net loss per share                                  |   |                        |       |   |   |   |   |   |
| - basic and diluted                                 |   | $                           | (0.01      | ) |   | $ | (0.14 | ) |
|                                                |   |                        |       |   |   |   |   |   |
| Weighted average shares outstanding                 |   |                        |       |   |   |   |   |   |
| - basic and diluted                                 |   |                        | 58,210,866 |   |   |   | 26,697,649 |   |

----

Condensed 

|                                                                              |   | Three months ended March 31, |      |
|-----------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                              |   | 2010                         |      |   | 2009 |   |
| Cash flows from operating activities                                              |   |                         |      |   |   |   |
| Net loss                                                                          |   | $                            | (491,377  | ) |   | $ | (3,678,452 | ) |
|                                                                              |   |                         |      |   |   |   |   |   |
|  Adjustments to reconcile net loss to net cash used in operating activities: |   |                         |      |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                         | 465       |   |   |   | 2,126 |   |
| Stock based compensation                                                          |   |                         | 46,487    |   |   |   | 26,977 |   |
| Changes in operating assets and liabilities:                                      |   |                         |      |   |   |   |   |   |
| Prepaid expenses and other current assets                                         |   |                         | (82,511   | ) |   |   | 13,973 |   |
| Other assets                                                                      |   |                         | 3,374     |   |   |   | 12,825 |   |
| Accounts payable                                                                  |   |                         | 3,273     |   |   |   | 250,981 |   |
| Accrued expenses                                                                  |   |                         | (29,710   | ) |   |   | 290,390 |   |
| Accrued wages and other compensation                                              |   |                         | (195,000  | ) |   |   | (69,000 | ) |
| Milestone payable                                                                 |   |                         | -         |   |   |   | 1,000,000 |   |
| Other liabilities                                                                 |   |                         | -         |   |   |   | (11,071 | ) |
|                                                                              |   |                         |      |   |   |   |   |   |
| Net cash used in operating activities                                             |   |                         | (744,999  | ) |   |   | (2,161,251 | ) |
|                                                                              |   |                         |      |   |   |   |   |   |
| Cash flows from investing activities                                              |   |                         |      |   |   |   |   |   |
| Proceeds from disposition of fixed assets                                         |   |                         | -         |   |   |   | 367,994 |   |
|                                                                              |   |                         |      |   |   |   |   |   |
| Net cash provided by investing activities                                         |   |                         | -         |   |   |   | 367,994 |   |
|                                                                              |   |                         |      |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                         |   |                         | (744,999  | ) |   |   | (1,793,257 | ) |
|                                                                              |   |                         |      |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                    |   |                         | 4,629,486 |   |   |   | 4,730,282 |   |
|                                                                              |   |                         |      |   |   |   |   |   |
| Cash and cash equivalents at end of period                                        |   | $                            | 3,884,487 |   |   | $ | 2,937,025 |   |
|                                                                              |   |                         |      |   |   |   |   |   |
| Supplemental disclosure of non-cash investing and financing activities:           |   |                         |      |   |   |   |   |   |
| Common shares issued for accrued interest                                         |   | $                            | 50,000    |   |   | $ | 201,667 |   |

----

Notes 

----

----

----

| Period Ended   |   | Grants Issued |   |   | Weighted Average Exercise Price |   |   | Weighted AverageFair Value |   |
|----------------|--------|---------------|--------|--------|---------------------------------|--------|--------|----------------------------|--------|
|           |   |          |   |   |                            |   |   |                       |   |
| March 31, 2010 |   |          |   | 70,000 |                            |   | $      | 0.08                       |   |   | $ | 0.07 |   |
| March 31, 2009 |   |          |   | 65,000 |                            |   | $      | 0.14                       |   |   | $ | 0.10 |   |

----

----

|                                                               |   | March 31,  |
|--------------------------------------------------------------------|--------|-----------------|
|                                                               |   | 2010            |   | 2009 |
|                                                               |   |            |   |   |
| Stock options                                                      |   |            | 3,579,155 |   | 2,678,555 |
| Convertible debentures                                             |   |            | 1,428,571 |   | 5,714,286 |
| Restricted stock                                                   |   |            | 1,200,000 |   | - |
| Warrants                                                           |   |            | 18,000,000 |   | - |
|                                                               |   |            |   |   |   |
| Total potential dilutive securities not included in loss per share |   |            | 24,207,726 |   | 8,392,841 |

----

|                      |   | Three months ended March 31, |     |
|---------------------------|--------|------------------------------|----------|
|                      |   | 2010                         |     |   | 2009 |   |
| Net (loss) income         |   |                         |     |   |   |   |
|   United States |   | $                            | (490,861 | ) |   | $ | (3,612,693 | ) |
|   Israel        |   |                         | (516     | ) |   |   | (65,759 | ) |
|                      |   | $                            | (491,377 | ) |   | $ | (3,678,452 | ) |
|                      |   |                         |     |   |   |   |   |   |
| Capital Expenditures      |   |                         |     |   |   |   |   |   |
|   United States |   | $                            | -        |   |   | $ | - |   |
|   Israel        |   |                         | -        |   |   |   | - |   |
|                      |   | $                            | -        |   |   | $ | - |   |

| Total Assets           |   | March 31, 2010 |      |   | December 31, 2009 |   |
|------------------------|--------|----------------|-----------|--------|-------------------|--------|
| United States          |   | $              | 4,003,870 |   |              | $      | 4,669,681 |   |
| Israel                 |   |           | 18,825    |   |              |   | 19,341 |   |
|                   |   | $              | 4,022,695 |   |              | $      | 4,689,022 |   |
|                   |   |           |      |   |              |   |   |   |
| Long Lived Assets, net |   |           |      |   |              |   |   |   |
| United States          |   | $              | 914       |   |              | $      | 1,379 |   |
| Israel                 |   |           | -         |   |              |   | - |   |
|                   |   | $              | 914       |   |              | $      | 1,379 |   |

----

Item 

----

----

----

|                                   |   | March 31, 2010 |      |   | December 31, 2009 |   |
|----------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                   |   |           |      |   |              |   |
| Working capital                        |   | $              | 3,846,983 |   |              | $      | 4,238,033 |   |
|                                   |   |           |      |   |              |   |   |   |
| Cash and cash equivalents              |   | $              | 3,884,487 |   |              | $      | 4,629,486 |   |
|                                   |   |           |      |   |              |   |   |   |
| Convertible Debenture – due 2012 |   | $              | 1,000,000 |   |              | $      | 1,000,000 |   |
|                                   |   |           |      |   |              |   |   |   |

----

|                           |   |   Total |      |   | Less than1 Year |   |    | 1 - 3Years |   |   | 3 - 5Years |   |   | Undetermined |   |
|--------------------------------|--------|--------------|-----------|--------|-----------------|--------|---------|------------|--------|--------|------------|--------|--------|--------------|--------|
| Operating leases               |   | $            | 21,600    |   |            | $      | 21,600  |       |   | $      | -          |   |   | $            | -      |   |   | $ | - |   |
| Convertible debenture          |   |         | 1,000,000 |   |            |   | -       |       |   |   | 1,000,000  |   |   |         | -      |   |   |   | - |   |
| Convertible debenture interest |   |         | 258,333   |   |            |   | 100,000 |       |   |   | 158,333    |   |   |         | -      |   |   |   | - |   |
| Total                          |   | $            | 1,279,933 |   |            | $      | 121,600 |       |   | $      | 1,158,333  |   |   | $            | -      |   |   | $ | - |   |

----

Item 

Item 

----

Part 

| Item 1 | Legal Proceedings | NONE |
|--------|-------------------|------|

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

| Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | NONE |
|--------|-------------------------------------------------------------|------|

| Item 3 | Defaults upon Senior Securities | NONE |
|--------|---------------------------------|------|

| Item 4 | Submission of Matters to Vote of Security Holders | NONE |
|--------|---------------------------------------------------|------|

| Item 5 | Other Information | NONE |
|--------|-------------------|------|

----

Item 

| Number |   | Exhibit                                                                                                                                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1    |   | Restated Articles of Incorporation (Incorporated by reference to Appendix E to the Joint Proxy Statement/Prospectus included in the Form S-4 Registration Statement of the Company dated September 28, 1992 (No. 33-52398)        |
|   |   |                                                                                                                                                                                                                              |
| 3.2    |   | Certificate of Amendment of Restated Articles of Incorporation dated January 30, 1995 (Incorporated by reference to Annual Report on Form 10-K for the year ended December 31, 1994).                                             |
|   |   |                                                                                                                                                                                                                              |
| 3.3    |   | Certificate of Amendment of Restated Articles of Incorporation dated January 16, 1998 (Incorporated by reference to the Company’s Current Report on Form 8-K, dated February 6, 1998).                                      |
|   |   |                                                                                                                                                                                                                              |
| 3.4    |   | Certificate of Amendment of Restated Articles of Incorporation dated October 21, 1999 (Incorporated by reference to exhibit 4(e) to the Form S-3 Registration Statement of the Company filed September 28, 2000 (No. 333-46818)). |
|   |   |                                                                                                                                                                                                                              |
| 3.5    |   | Certificate of Amendment of Restated Articles of Incorporation dated July 19, 2002 (Incorporated by reference to Exhibit 3 to the Company’s Report on Form 10-Q for the quarter ended June 30, 2002).                       |
|   |   |                                                                                                                                                                                                                              |
| 3.6    |   | Certificate of Amendment of Restated Articles of Incorporation dated July 7, 2004 (Incorporated by reference to Exhibit 3.1 to the Company’s Report on Form 10-Q for the quarter ended June 30, 2004).                      |
|   |   |                                                                                                                                                                                                                              |
| 3.7    |   | Certificate of Amendment to Articles of Incorporation dated September 23, 2005 (Incorporated by reference to exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005).          |
|   |   |                                                                                                                                                                                                                              |
| 3.8    |   | Certificate of Amendment to Articles of Incorporation dated August 5, 2009 (Incorporated by reference to exhibit 3.8 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009).                   |
|   |   |                                                                                                                                                                                                                              |
| 3.9    |   | Amended and Restated By-Laws (Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007).                                                            |
|   |   |                                                                                                                                                                                                                              |
| 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, 2010 |   |                                                          |               |   |
|               |   | by:                                                           | /s/ S. Colin Neill |   |
|               |   |                                                          |               |   |
|               |   | S. Colin Neill                                                |               |
|               |   | President, Chief Financial Officer, Secretary & Treasurer |               |
|               |   | (Principal Accounting and Financial Officer)                  |               |

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