| UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549  |
|----------------------------------------------------------------------------------------|
| FORM 10-Q                                                                         |

| Commission File Number 001-12396                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                |   |
| THE BEARD COMPANY                                                                                                                                                   |
| (Exact name of registrant as specified in its charter)                                                                                                              |
|                                                                                                                                                                |   |
| Oklahoma                                                                                                                                                            | 73-0970298 |
| (State or other jurisdiction of incorporation or organization)                                                                                                      | (I.R.S. Employer Identification No.) |
|                                                                                                                                                                |   |
| Harvey Parkway301 N.W. 63rd Street, Suite 400Oklahoma City, Oklahoma               73116 |
| (Address of principal executive offices)   (Zip Code)                                                                                                |
|                                                                                                                                                                |   |
| Registrant's telephone number, including area code: (405) 842-2333                                                                                                  |

| Large accelerated filer  [  ] | Accelerated filer  [  ] |
|---------------------------------------------------|---------------------------------------------|
| Non-accelerated filer  [  ]   | Smaller reporting company  [X]    |

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|                                                                                                                                                                       | Page   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I. FINANCIAL INFORMATION                                                                                                                                              |   |
|                                                                                                                                                                       |   |
| Item 1.             Financial Statements                                                                  | 3      |
|                                                                                                                                                                       |   |
| Balance Sheets – March 31, 2010 (Unaudited) and December 31, 2009                                                                                                    | 3      |
|                                                                                                                                                                       |   |
| Statements of Operations - Three Months ended March 31, 2010 and 2009 (Unaudited)                                                                                          | 4      |
|                                                                                                                                                                       |   |
| Statements of Shareholders’ Equity (Deficiency) - Year ended December 31, 2009and Three Months ended March 31, 2010 (Unaudited)                                      | 5      |
|                                                                                                                                                                       |   |
| Statements of Cash Flows – Three Months ended March 31, 2010 and 2009 (Unaudited)                                                                                    | 6      |
|                                                                                                                                                                       |   |
| Notes to Financial Statements (Unaudited)                                                                                                                                  | 7      |
|                                                                                                                                                                       |   |
| 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.             (Removed and Reserved)                                                                | 21     |
|                                                                                                                                                                       |   |
| Item 5.             Other Information                                                                     | 21     |
|                                                                                                                                                                       |   |
| Item 6.             Exhibits                                                                              | 21     |
|                                                                                                                                                                       |   |
| Signatures                                                                                                                                                                 | 22     |

----

| PART I  FINANCIAL INFORMATION.                        |                                                                                       |                                                                                               |                                                                               |
|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Item 1.  Financial Statements                         |                                                                                       |                                                                                               |                                                                               |
| THE BEARD COMPANY AND SUBSIDIARIES                              |
| Balance Sheets                                                  |
| March 31, 2010 (Unaudited) and December 31, 2009                |
|                                                            |                                                                                       |                                                                                               | March 31,                                                                          |   | December 31, |
|                                                            |                                                                                       | Assets                                                                                             | 2010                                                                               |   | 2009 |
| Current assets:                                                 |                                                                                       |                                                                                               |                                                                               |
|                                                            | Cash and cash equivalents                                                                  | $               358,000 |                                                                               | $                629,000 |
|                                                            | Accounts receivable, less allowance for doubtful                                           |                                                                                               |                                                                               |   |
|                                                            |    receivables of $48,000 in 2010 and $31,000 in 2009                       | 1,226,000                                                                                          |                                                                               | 1,044,000 |
|                                                            | Inventories                                                                                | 48,000                                                                                             |                                                                               | 48,000 |
|                                                            | Prepaid expenses and other assets                                                          | 123,000                                                                                            |                                                                               | 139,000 |
|                                                            | Assets to be disposed                                                                      | 882,000                                                                                            |                                                                               | 885,000 |
|                                                            |                                                                                       | Total current assets                                                                               | 2,637,000                                                                          |   | 2,745,000 |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Restricted certificate of deposit                               | 50,000                                                                                     |                                                                                               | 50,000                                                                             |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Note and other long-term receivables                            | 291,000                                                                                    |                                                                                               | 300,000                                                                            |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Investments and other assets                                    | 190,000                                                                                    |                                                                                               | 299,000                                                                            |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Property, plant and equipment, at cost, based on the successful |                                                                                       |                                                                                               |
|                                                            | efforts method of accounting for oil and gas properties                                    | 1,399,000                                                                                          |                                                                               | 1,364,000 |
|                                                            | Less accumulated depreciation, depletion and amortization                                  | 359,000                                                                                            |                                                                               | 346,000 |
|                                                            |                                                                                       | Net property, plant and equipment                                                                  | 1,040,000                                                                          |   | 1,018,000 |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Intangible assets, at cost                                      | 24,000                                                                                     |                                                                                               | 75,000                                                                             |
|                                                            | Less accumulated amortization                                                              | 16,000                                                                                             |                                                                               | 72,000 |
|                                                            |                                                                                       | Net intangible assets                                                                              | 8,000                                                                              |   | 3,000 |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
|                                                            |                                                                                       |                                                                                               | $            4,216,000 |   | $             4,415,000 |
|                                                            |                                                                                       | Liabilities and Shareholders' Equity (Deficiency)                                                  |                                                                               |   |   |
| Current liabilities:                                            |                                                                                       |                                                                                               |                                                                               |
|                                                            | Trade accounts payable                                                                     | $            1,432,000                 |                                                                               | $             1,015,000 |
|                                                            | Accrued expenses                                                                           | 247,000                                                                                            |                                                                               | 273,000 |
|                                                            | Short-term debt                                                                            | 191,000                                                                                            |                                                                               | - |
|                                                            | Current maturities of long-term debt                                                       | 51,000                                                                                             |                                                                               | 32,000 |
|                                                            | Liabilities to be disposed                                                                 | 511,000                                                                                            |                                                                               | 542,000 |
|                                                            |                                                                                       | Total current liabilities                                                                          | 2,432,000                                                                          |   | 1,862,000 |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Long-term debt less current maturities                          | 290,000                                                                                    |                                                                                               | 304,000                                                                            |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Long-term debt - related entities                               | 1,987,000                                                                                  |                                                                                               | 1,971,000                                                                          |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Other long-term liabilities                                     | 304,000                                                                                    |                                                                                               | 302,000                                                                            |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Shareholders' equity (deficiency):                              |                                                                                       |                                                                                               |                                                                               |
|                                                            | Convertible preferred stock of $100 stated value;                                          |                                                                                               |                                                                               |   |
|                                                            |    5,000,000 shares authorized; 27,838 shares issued                        |                                                                                               |                                                                               |   |
|                                                            |    and outstanding                                                          | 889,000                                                                                            |                                                                               | 889,000 |
|                                                            | Common stock of $.00033325 par value per share;                                            |                                                                                               |                                                                               |   |
|                                                            |     30,000,000 authorized;  19,971,622 and 19,661,172 shares |                                                                                               |                                                                               |
|                                                            |     issued and outstanding in 2010 and 2009, respectively              | 7,000                                                                                              |                                                                               | 7,000 |
|                                                            | Capital in excess of par value                                                             | 42,811,000                                                                                         |                                                                               | 42,780,000 |
|                                                            | Accumulated deficit                                                                        | (41,877,000)                                                                                       |                                                                               | (41,073,000) |
|                                                            | Accumulated other comprehensive income                                                     | 24,000                                                                                             |                                                                               | 24,000 |
|                                                            |                                                                                       | Total shareholders' equity (deficiency) attributable to The Beard Company                          | 1,854,000                                                                          |   | 2,627,000 |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
|                                                            | Noncontrolling interests                                                                   | (2,651,000)                                                                                        |                                                                               | (2,651,000) |
|                                                            |                                                                                       | Total shareholders' equity (deficiency)                                                            | (797,000)                                                                          |   | (24,000) |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
| Commitments and contingencies (note 8)                          |                                                                                       |                                                                                               |                                                                               |
|                                                            |                                                                                       |                                                                                               | $            4,216,000 |   | $             4,415,000 |
|                                                            |                                                                                       |                                                                                               |                                                                               |   |   |
|  See accompanying notes to financial statements.           |

----

| THE BEARD COMPANY AND SUBSIDIARIES                  |
|-----------------------------------------------------|
| Statements of Operations                            |
| (Unaudited)                                         |
|                                                |   |   |   |   |   |   For the Three Months Ended |
|                                                |   |   |   |   |   | March 31, 2010 |   | March 31, 2009 |
| Revenues:                                           |   |   |   |   |   |   |   |
|                                                | Carbon dioxide |   |   |   |   | $                  6,000 |   | $              280,000 |
|                                                | e-Commerce |   |   |   |   | 1,000 |   | 3,000 |
|                                                | Oil & gas |   |   |   |   | 133,000 |   | 23,000 |
|                                                |   |   |   |   |   | 140,000 |   | 306,000 |
| Expenses:                                           |   |   |   |   |   |   |   |
|                                                | Carbon dioxide |   |   |   |   | 4,000 |   | 27,000 |
|                                                | e-Commerce |   |   |   |   | - |   | 28,000 |
|                                                | Oil & gas |   |   |   |   | 166,000 |   | 17,000 |
|                                                | Selling, general and administrative |   |   |   |   | 477,000 |   | 271,000 |
|                                                | Depreciation, depletion and amortization |   |   |   |   | 16,000 |   | 15,000 |
|                                                |   |   |   |   |   | 663,000 |   | 358,000 |
| Operating profit (loss):                            |   |   |   |   |   |   |   |
|                                                | Carbon dioxide |   |   |   |   | 2,000 |   | 246,000 |
|                                                | e-Commerce |   |   |   |   | 1,000 |   | (25,000) |
|                                                | Oil & gas |   |   |   |   | (43,000) |   | 2,000 |
|                                                | Other, primarily corporate |   |   |   |   | (483,000) |   | (275,000) |
|                                                |   |   |   |   |   | (523,000) |   | (52,000) |
| Other income (expense):                             |   |   |   |   |   |   |   |
|                                                | Interest income |   |   |   |   | 7,000 |   | 3,000 |
|                                                | Interest expense |   |   |   |   | (58,000) |   | (89,000) |
|                                                | Equity in net earnings of unconsolidated affiliates |   |   |   | (64,000) |   | - |
|                                                | Gain on sale of assets |   |   |   |   | - |   | 1,000 |
|                                                | Other |   |   |   |   | - |   | 1,000 |
|                                                |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes |   |   |   | (638,000) |   | (136,000) |
|                                                |   |   |   |   |   |   |   |   |
| Income tax benefit (expense) (note 6)               |   |   |   |   | (28,000) |   | - |
|                                                |   |   |   |   |   |   |   |   |
| Loss from continuing operations                     |   |   |   |   | (666,000) |   | (136,000) |
|                                                |   |   |   |   |   |   |   |   |
| Loss from discontinued operations (note 3)          |   |   |   |   | (138,000) |   | (137,000) |
|                                                |   |   |   |   |   |   |   |   |
| Net loss                                            |   |   |   |   | (804,000) |   | (273,000) |
|                                                |   |   |   |   |   |   |   |   |
| Less: Loss attributable to noncontrolling interests |   |   |   |   |   |   |   |
|                                                | Loss from continuing operations |   |   |   |   | - |   | 7,000 |
|                                                |   |   |   |   |   |   |   |   |
| Net loss attributable to                            |   |   |   |   |   |   |   |
|                                                | The Beard Company common shareholders |   |   |   |   | $            (804,000) |   | $            (266,000) |
|                                                |   |   |   |   |   |   |   |   |
| Net loss per average common share outstanding:      |   |   |   |   |   |   |   |
|                                                | Basic |   |   |   |   |   |   |   |
|                                                |    Loss from continuing operations |   |   |   |   | $                  (0.03) |   | $                  (0.01) |
|                                                |    Loss from discontinued operations |   |   |   |   | (0.01) |   | (0.00) |
|                                                |    Net loss |   |   |   |   | $                  (0.04) |   | $                  (0.01) |
|                                                |   |   |   |   |   |   |   |   |
| Net loss per average common share outstanding:      |   |   |   |   |   |   |   |
|                                                | Diluted |   |   |   |   |   |   |   |
|                                                |    Loss from continuing operations |   |   |   |   | $                  (0.03) |   | $                  (0.01) |
|                                                |    Loss from discontinued operations |   |   |   |   | (0.01) |   | (0.00) |
|                                                |    Net loss |   |   |   |   | $                  (0.04) |   | $                  (0.01) |
|                                                |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:         |   |   |   |   |   |   |   |
|                                                | Basic |   |   |   |   | 20,104,000 |   | 19,800,000 |
|                                                | Diluted |   |   |   |   | 20,104,000 |   | 19,800,000 |
| See accompanying notes to financial statements.     |   |   |   |   |   |   |   |

----

| THE BEARD COMPANY AND SUBSIDIARIES              |
|-------------------------------------------------|
| Statements of Shareholders' Equity (Deficiency) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   Total |
|                                            |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   | Common |
|                                            |   |   |   |   |   |   |   | Capital in |   |   |   | Other |   |   |   |   Non- |   | Shareholders' |
|                                            |   | Preferred |   | Common |   | Excess of |   | Accumulated |   | Comprehensive |   | Treasury |   | controlling |   | Equity |
|                                            |   | Shares | Stock |   | Shares | Stock |   | Par Value |   | Deficit |   | Income (loss) |   | Stock |   | Interests |   | (Deficiency) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                      | 27,838 | $   889,000 |   | 19,661,172 | $      7,000 |   | $ 42,655,000 |   | $( 43,936,000) |   | $      25,000 |   | $                - |   | $( 2,652,000) |   | $(  3,012,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |    Net earnings (loss) | - | - |   | - | - |   | - |   | 2,863,000 |   | - |   | - |   | 8,000 |   | 2,871,000 |
|                                            |    Comprehensive income (loss): |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      Foreign currency translation |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      adjustment | - | - |   | - | - |   | - |   | - |   | (1,000) |   | - |   | - |   | (1,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Total comprehensive eanings (loss) | - | - |   | - | - |   | - |   | - |   | - |   | - |   | - |   | 2,870,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Share-based compensation related to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      employee stock options and bonuses | - | - |   | - | - |   | 50,000 |   | - |   | - |   | - |   | - |   | 50,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Distribution of settlement proceeds | - | - |   | - | - |   | - |   | - |   | - |   | - |   | (7,000) |   | (7,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Purchase of treasury stock | - | - |   | (20,000) | - |   | - |   | - |   | - |   | (35,000) |   | - |   | (35,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Issuance of warrants | - | - |   | - | - |   | 4,000 |   | - |   | - |   | - |   | - |   | 4,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Issuance of stock for warrants exercised | - | - |   | 172,382 | - |   | 51,000 |   | - |   | - |   | 35,000 |   | - |   | 86,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Issuance of stock for options exercised | - | - |   | 25,800 | - |   | 20,000 |   | - |   | - |   | - |   | - |   | 20,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Issuance of shares pursuant to deferred |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      compensation plan | - | - |   | 132,268 | - |   | - |   | - |   | - |   | - |   | - |   | - |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                      |        27,838 |      889,000 |   | 19,971,622 |         7,000 |   |    42,780,000 |   | ( 41,073,000) |   |                24,000 |   | $                - |   | ( 2,651,000) |   | (24,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |    Net earnings (unaudited) | - | - |   | - | - |   | - |   | (804,000) |   | - |   | - |   | - |   | (804,000) |
|                                            |    Comprehensive income (unaudited): |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      Foreign currency translation |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      adjustment (unaudited) | - | - |   | - | - |   | - |   | - |   | - |   | - |   |   |   | - |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Total comprehensive income (unaudited) | - | - |   | - | - |   | - |   | - |   | - |   | - |   | - |   | (804,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Issuance of warrants (unaudited) | - | - |   | - | - |   | 9,000 |   | - |   | - |   | - |   | - |   | 9,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | Share-based compensation related to |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |      employee stock options (unaudited) | - | - |   | - | - |   | 22,000 |   | - |   | - |   | - |   | - |   | 22,000 |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, March 31, 2010 (unaudited)             | 27,838 | $   889,000 |   | 19,971,622 | $      7,000 |   | $ 42,811,000 |   | $( 41,877,000) |   | $      24,000 |   | $           - |   | $( 2,651,000) |   | $     (797,000) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements. |

----

| THE BEARD COMPANY AND SUBSIDIARIES                 |                                                                                             |                                                                                                                                        |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| Statements of Cash Flows                           |                                                                                             |                                                                                                                                        |
|   (Unaudited)                                 |                                                                                             |                                                                                                                                        |
|                                               |                                                                                             |                                                                                                                                        |   | For the Three Months Ended |   |   |
|                                               |                                                                                             |                                                                                                                                        |   | March 31, 2010 |   | March 31, 2009 |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Net loss                                           |                                                                                             | $                  (804,000)                      |   | $                  (273,000) |   |   |
| Adjustments to reconcile net loss to net cash |                                                                                             |                                                                                                                                        |   |   |   |   |
|   used in operating activities:          |                                                                                             |                                                                                                                                        |   |   |   |   |
|                                               | Depreciation, depletion and amortization                                                         |                                                                                                                                        |                         17,000 |   |                         15,000 |   |   |
|                                               | Depreciation, depletion and amortization of discontinued operations                              |                                                                                                                                        |                           7,000 |   |                           7,000 |   |   |
|                                               | Gain on sale of assets                                                                           |                                                                                                                                        |                               - |   |                         (1,000) |   |   |
|                                               | Equity in net loss of unconsolidated affiliates                                                  |                                                                                                                                        |                         64,000 |   |                              - |   |   |
|                                               | Non cash compensation expense and stock warrants                                                 |                                                                                                                                        |                         22,000 |   |                              - |   |   |
|                                               | Non cash interest expense                                                                        |                                                                                                                                        |                               - |   |                           4,000 |   |   |
|                                               | Imputed interest income on long-term accounts receivable                                         |                                                                                                                                        |                         (5,000) |   |                              - |   |   |
|                                               | Imputed interest expense on note payable                                                         |                                                                                                                                        |                         22,000 |   |                              - |   |   |
|                                               | Accretion of asset retirement obligation liability                                               |                                                                                                                                        |                           2,000 |   |                              - |   |   |
|                                               | Net change in assets and liabilities of discontinued operations                                  |                                                                                                                                        |                       (24,000) |   |                           9,000 |   |   |
|                                               | Increase (decrease) in accounts receivable, other                                                |                                                                                                                                        |   |   |   |   |   |
|                                               |   receivables, prepaid expenses and other current assets                               |                                                                                                                                        |                     (107,000) |   |                         18,000 |   |   |
|                                               | Increase (decrease) in trade accounts payable,  accrued expenses and other liabilities |                       382,000 |   |                       (33,000) |   |   |
|                                               | Net cash used in operating activities                                                            |                                                                                                                                        |                     (424,000) |   |                     (254,000) |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Investing activities:                              |                                                                                             |                                                                                                                                        |   |   |   |   |
|                                               | Acquisition of property, plant and equipment                                                     |                                                                                                                                        |                       (35,000) |   |                         (6,000) |   |   |
|                                               | Acquisition of property, plant and equipment of discontinued operations                          |                                                                                                                                        |                         (1,000) |   |                         (1,000) |   |   |
|                                               | Proceeds from sale of assets                                                                     |                                                                                                                                        |                               - |   |                              - |   |   |
|                                               | Investments in unconsolidated affiliates                                                         |                                                                                                                                        |                               - |   |                       (13,000) |   |   |
|                                               | Distributions from unconsolidated affiliate                                                      |                                                                                                                                        |                               - |   |                         10,000 |   |   |
|                                               |      Net cash used in investing activities                              |                                                                                                                                        |                       (36,000) |   |                       (10,000) |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Financing activities:                              |                                                                                             |                                                                                                                                        |   |   |   |   |
|                                               | Proceeds from line of credit and term notes                                                      |                                                                                                                                        |                       191,000 |   |                       245,000 |   |   |
|                                               | Proceeds from related party debt                                                                 |                                                                                                                                        |                               - |   |                         23,000 |   |   |
|                                               | Payments on line of credit and term notes                                                        |                                                                                                                                        |                       (11,000) |   |                       (61,000) |   |   |
|                                               | Payments on related party debt                                                                   |                                                                                                                                        |                               - |   |                         (1,000) |   |   |
|                                               | Proceeds from exercise of stock options and warrants                                             |                                                                                                                                        |                           9,000 |   |                         13,000 |   |   |
|                                               |      Net cash provided by financing activities                          |                                                                                                                                        |                       189,000 |   |                       219,000 |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents          |                                                                                             |                     (271,000)           |   |                       (45,000) |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year     |                                                                                             |                       629,000 |   |                       109,000 |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Cash and cash equivalents at end of year           |                                                                                             | $                    358,000            |   | $                    64,000 |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information: |                                                                                             |                                                                                                                                        |   |   |   |   |
|                                               | Interest paid                                                                                    |                                                                                                                                        | $                      40,000 |   | $                  122,000 |   |   |
|                                               | Income taxes paid                                                                                |                                                                                                                                        | $                      30,000 |   | $                              - |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| Noncash investing and financing activities:        |                                                                                             |                                                                                                                                        |   |   |   |   |
|                                               | Purchase of property, plant and equipment through issuance of debt obligations                   |                                                                                                                                        | $                                - |   | $                    12,000 |   |   |
|                                               |                                                                                             |                                                                                                                                        |   |   |   |   |   |   |
| See accompanying notes to financial statements.    |                                                                                             |                                                                                                                                        |   |   |   |   |

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| Stock Split                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------|
| All share and per share numbers have been adjusted to reflect the 2-for-1 split of the Company’s common stock effected as of November 2, 2009. |

----

|                          | May 2006Options | May 2009Options | August 17,2009Options | August 31,2009Options | October 19,2009Options |
|-------------------------------|-----------------|-----------------|-----------------------|-----------------------|------------------------|
|                          |            |            |                  |                  |                   |
| Expected volatility           | 264.71%         | 368.70%         | 324.51%               | 317.48%               | 315.24%                |
| Expected risk term (in years) | 4.75            | 3.5             | 3.5                   | 3.5                   | 3.5                    |
| Risk-free interest rate       | 4.84%           | 2.50%           | 2.50%                 | 2.50%                 | 2.50%                  |
| Expected dividend yield       | 0%              | 0%              | 0%                    | 0%                    | 0%                     |

|                                                         | Shares                  | WeightedAverageExercise Price | WeightedAverageRemainingContractualTerm(Years) | AverageIntrinsicValue |
|--------------------------------------------------------------|-------------------------|-------------------------------|------------------------------------------------|-----------------------|
|                                                         |                    |                          |                                           |                  |
| Options outstanding at December 31, 2009:                    | 190,200                 | $2.178                        | 9.46                                           | -                     |
| Granted                                                      | -                       | -                             | -                                              | -                     |
| Exercised                                                    | -                       | -                             | -                                              | -                     |
| Canceled                                                     | -                       | -                             | -                                              | -                     |
| Options outstanding at March 31, 2010                        | 190,200                 | $2.178                        | 9.21                                           | -                     |
| Options exercisable at March 31, 2010                        |    4,200 | $0.765                        | 6.08                                           | -                     |
| Options vested and options expected tovest at March 31, 2010 | 190,200                 | $2.178                        | 9.21                                           | -                     |

----

|                               | Total                                  |   | Quoted Pricesin ActiveMarkets for Identical Assets(Level 1) |   | Significant OtherObservable Inputs(Level 2)                                            |   | Significant UnobservableInputs(Level 3)                                    |
|------------------------------------|----------------------------------------|--------|-------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|
|                               |                                   |   |                                                        |   |                                                                                   |   |                                                                       |
| Cash and cash equivalents          | $     448,000 |   | $     448,000                      |   | $              - |   | $            - |
| Restricted certificates of deposit | 50,000                                 |   | -                                                           |   | 50,000                                                                                 |   | -                                                                          |
| Total                              | $     498,000 |   | $     448,000                      |   | $     50,000                                                  |   | $            - |

----

| · | In April 2009, the Company entered into an agreement to sell its remaining interests in the McElmo Dome Field for $5,200,000.  The sale generated a gain of $4,888,000.  The proceeds of the sale were used, among other things, to pay off outstanding debt, provide capital for additional investments, and increase working capital. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | In June 2009, the Company received $825,000 as its share of a settlement in its lawsuit related to its e-Commerce segment, and reported a gain in the 2nd quarter.  The proceeds of this settlement enabled the Company to increase its working capital. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5)  Earnings (Loss) Per Share |
|--------|------------------------------------------|

----

|                                                                                                  | For the Three Months Ended |
|-------------------------------------------------------------------------------------------------------|----------------------------|
|                                                                                                  | March 31,2010              | March 31,2009 |
|                                                                                                  |                       |   |
| Basic EPS:                                                                                            |                       |   |
| Weighted average of common shares outstanding                                                         | 19,971,622                 | 19,797,360 |
| Weighted average shares in deferred stock compensation plans treated as common stock equivalents | 132,268                    | 2,180 |
|                                                                                                  |                       |   |
|                                                                                                  | 20,103,890                 | 19,799,540 |
| Diluted EPS:                                                                                          |                       |   |
| Weighted average of common shares outstanding                                                         | 19,971,622                 | 19,797,360 |
| Weighted average shares in deferred stock compensation plans treated as common stock equivalents | 132,268                    | 2,180 |
|                                                                                                  |                       |   |
|                                                                                                  | 20,103,890                 | 19,799,540 |

|   | (6)  Income Taxes |
|--------|-----------------------------|

|                                             | ExpirationDate | Amount                               |
|--------------------------------------------------|----------------|--------------------------------------|
|                                             |           |                                 |
| Federal regular tax operating loss carryforwards | 2021-2030      | $     3,685 |
| Tax depletion carryforward                       | Indefinite     | $     3,450 |

| Investments and other assets consisted of the following: | For the Periods Ended                 |
|----------------------------------------------------------|---------------------------------------|
|                                                     | March 31, 2010                        |   | March 31, 2009 |
|                                                     |                                  |   |   |
| Investment in real estate limited partnership            | $     13,000 |   | $     13,000 |
| Investment in Beard Dilworth, LLC                        | -                                     |   | 37,000 |
| Investment in and Advances to Geohedral, LLC             | 157,000                               |   | - |
| Other assets                                             | 20,000                                |   | 11,000 |
|                                                     | $   190,000            |   | $     61,000 |

----

|   | (9)  Business Segment Information |
|--------|---------------------------------------------|

----

|                              | Carbon Dioxide                         | e-Commerce                                   | Oil & Gas                                       | Totals                                   |
|-----------------------------------|----------------------------------------|----------------------------------------------|-----------------------------------------------------|------------------------------------------|
|                              |                                   |                                         |                                                |                                     |
| Three months ended March 31, 2010 |                                   |                                         |                                                |                                     |
| Revenues from external customers  | $      - | $      -  | $     133             | $     133  |
| Segment profit (loss)             | -                                      | -                                       | (46)                                                | (46)                                     |
| Segment assets                    | -                                      | -                                       | 2,877                                          | 2,877                               |
|                              |                                   |                                         |                                                |                                     |
| Three months ended March 31, 2009 |                                   |                                         |                                                |                                     |
| Revenues from external customers  | $ 280                             | $     3        | $       23  | $     306  |
| Segment profit (loss)             | 246                                    | (25)                                         | 5                                              | 226                                 |
| Segment assets                    | 344                                    | 7                                       | 297                                            | 648                                 |

|                                                                              | 2010                          |   | 2009                               |
|-----------------------------------------------------------------------------------|-------------------------------|--------|------------------------------------|
|                                                                              |                          |   |                               |
| Total earnings for reportable segments                                            | $    (46) |   | $    226  |
| Net corporate earnings (costs) not allocated to segments                          | (592)                         |   | (362)                              |
| Total consolidated earnings (loss) from continuing operations before income taxes | $  (638)            |   | $  (136)                 |

|   | (10)  Subsequent Events |
|--------|-----------------------------------|

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

----

----

|                      | March 31,2010              |   | December 31,2009           |   | Increase(Decrease)     |
|---------------------------|----------------------------|--------|----------------------------|--------|------------------------|
|                      |                       |   |                       |   |                   |
| Cash and cash equivalents | $   358,000 |   | $   629,000 |   | $  (271,000) |
|                      |                       |   |                       |   |                   |
| Working capital           | $   205,000 |   | $   883,000 |   | $  (678,000) |
|                      |                       |   |                       |   |                   |
| Current ratio             | 1.08 to 1                  |   | 1.47 to 1                  |   |                   |

----

|                     | 2010                   | 2009                  |
|--------------------------|------------------------|-----------------------|
|                     |                   |                  |
| Operating profit (loss): |                   |                  |
| Carbon dioxide           | 2,000             | 246,000          |
| e-Commerce               | 1,000             | (25,000)              |
| Oil & gas            | (43,000)               | 2,000            |
| Subtotal                 | (40,000)               | 223,000          |
| Other                    | (483,000)              | (275,000)             |
|                     | $  (523,000) | $  (52,000) |

----

----

----

| 4      | Instruments defining the rights of security holders:                                |
|--------|-------------------------------------------------------------------------------------|
|   |                                                                                |
| 4.1    | Form of Registrant’s 10% Promissory Note (6-Month Term).                      |
|   |                                                                                |
| 4.2    | Form of Registrant’s 2010 Warrant (issued with 10% Promissory Notes).         |
|   |                                                                                |
| 31     | Rule 13a-14(a)/15d-14(a) Certifications:                                            |
|   |                                                                                |
| 31.1   | Chief Executive Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a). |
|   |                                                                                |
| 31.2   | Chief Financial Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a). |
|   |                                                                                |

----

| 32     | Section 1350 Certifications:                                                                                                                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                     |
| 32.1   | Chief Executive Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. |
|   |                                                                                                                                                     |
| 32.2   | Chief Financial Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. |

|                           | (Registrant)   THE BEARD COMPANY          |
|--------------------------------|----------------------------------------------------------|
|                           |                                                     |
|                           | /s/  Herb Mee, Jr.                             |
| (Date)  May 24, 2010 | Herb Mee, Jr., President and Chief Financial Officer     |
|                           |                                                     |
|                           | /s/  Jack A. Martine                           |
| (Date)  May 24, 2010 | Jack A. Martine, Controller and Chief Accounting Officer |

| INDEX TO EXHIBITS |
|-------------------|
|              |   |   |
| Exhibit No.       | Description | Method of Filing |
|              |   |   |
| 4.1               | Form of Registrant’s 10% Promissory Note (6-Month Term). | Filed herewith electronically |
|              |   |   |
| 4.2               | Form of Registrant’s 2010 Warrant (issued with 10% Promissory Notes). | Filed herewith electronically |
|              |   |   |
| 31.1              | Chief Executive Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a). | Filed herewith electronically |
|              |   |   |
| 31.2              | Chief Financial Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a). | Filed herewith electronically |
|              |   |   |
| 32.1              | Chief Executive Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. | Filed herewith electronically |
|              |   |   |
| 32.2              | Chief Financial Officer Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code. | Filed herewith electronically |

----