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|   (Mark One) |   |                                                                                         |
|-------------------|--------|----------------------------------------------------------------------------------------------|
| þ            |   | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

| o |   | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|--------|-----------------------------------------------------------------------------------------------|

|  SPATIALIZER AUDIO LABORATORIES, INC.             |
|--------------------------------------------------------|
| (Exact name of Registrant as specified in its charter) |

| Delaware                                                      |   | 95-4484725                             |
|---------------------------------------------------------------|--------|----------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (IRS EmployerIdentification No.)  |

| 410 Park Avenue--15th Floor   New York, New York 10022 |
|-----------------------------------------------------------------------|
| (Address of principal corporate offices)                              |

| Telephone Number: (212)  231-8359                     |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

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

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| PART I. FINANCIAL INFORMATION |
|-------------------------------|
|                          |   |
| Item 1.                  | FINANCIAL STATEMENTS | 3 |
|                          |   |   |
| Item 2.                  | MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS | 10 |
|                          |   |   |
| Item 3.                  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 13 |
|                          |   |   |
| Item 4T.                 | CONTROLS AND PROCEDURES |   |
|                          |   |   |
| PART II. OTHER INFORMATION    |
|                          |   |
| Item 1.                  | LEGAL PROCEEDINGS | 14 |
|                          |   |   |
| Item 1A.                 | RISK FACTORS | 14 |
|                          |   |   |
| Item 2.                  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 14 |
|                          |   |   |
| Item 3.                  | DEFAULTS UPON SENIOR SECURITIES | 14 |
|                          |   |   |
| Item 4.                  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 14 |
|                          |   |   |
| Item 5.                  | OTHER INFORMATION | 14 |
|                          |   |   |
| Item 6.                  | EXHIBITS | 14 |
|                          |   |   |
| SIGNATURES                    | 15 |
|                          |   |
| EXHIBIT 31.1                  |   |   |
|                          |   |   |
| EXHIBIT 31.2                  |   |   |
|                          |   |   |
| EXHIBIT 32.1                  |   |
|                          |   |
| EXHIBIT 32.1                  |   |

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|                                                                                                                                                                                                                                                                                                                        |   | March 31, 2010 |        |   | December 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                      |   |           |        |   |              |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |
| Current Assets:                                                                                                                                                                                                                                                                                                             |   |           |        |   |              |   |
| Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                   |   | $              | 9,561       |   |              | $      | 1,792 |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Total Current Assets                                                                                                                                                                                                                                                                                                        |   |           | 9,561       |   |              |   | 1,792 |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Total Assets                                                                                                                                                                                                                                                                                                                |   | $              | 9,561       |   |              | $      | 1,792 |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                  |   |           |        |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Current Liabilities:                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Accounts Payable                                                                                                                                                                                                                                                                                                            |   | $              | 2,974       |   |              | $      | 11,867 |   |
| Loan from Shareholders                                                                                                                                                                                                                                                                                                      |   |           | 32,500      |   |              |   | 0 |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Total Current Liabilities                                                                                                                                                                                                                                                                                                   |   |           | 35,474      |   |              |   | 11,867 |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Commitments and Contingencies                                                                                                                                                                                                                                                                                               |   |           |        |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Stockholders’ Equity (Deficit):                                                                                                                                                                                                                                                                                       |   |           |        |   |              |   |   |   |
| Preferred shares, $.01 par value, 1,000,000 shares authorized,none issued and outstanding              Common shares, $.01 par value, 300,000,000 shares authorized,6,500,000 and 6,500,000 shares issued and outstanding  in 2010and 2009. |   |           | 65,000      |   |              |   | 65,000 |   |
| Additional Paid-In Capital                                                                                                                                                                                                                                                                                                  |   |           | 47,219,856  |   |              |   | 47,219,856 |   |
| Accumulated Deficit                                                                                                                                                                                                                                                                                                         |   |           | (47,310,769 | )      |              |   | (47,294,931 | ) |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Total Shareholders’ Equity                                                                                                                                                                                                                                                                                            |   |           | (25,913     | )      |              |   | (10,075 | ) |
|                                                                                                                                                                                                                                                                                                                        |   |           |        |   |              |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                                                                                                                                                            |   | $              | 9,561       |   |              | $      | 1,792 |   |

----

|                                              |   | For the Three Month Period Ended |      |
|---------------------------------------------------|--------|----------------------------------|-----------|
|                                              |   | Mar 31,2010                 |      |   | Mar 31,2009 |   |
| Revenues :                                        |   |                             |      |   |   |   |   |   |
| rrrRoyalty Revenues                               |   | $                                | 0         |   |   | $ | 0 |   |
| C Cost of Revenues                                |   |                             | 0         |   |   |   | 0 |   |
| G Gross Profit                                    |   |                             | 0         |   |   |   | 0 |   |
| O Operating Expenses :                            |   |                             |      |   |   |   |   |   |
| G General and Administrative                      |   |                             | 14,388    |   |   |   | 16,691 |   |
| R Research and Development                        |   |                             | 0         |   |   |   | 0 |   |
| Sales and Marketing                               |   |                             | 0         |   |   |   | 0 |   |
|                                              |   |                             | 14,388    |   |   |   | 16,691 |   |
| O Operating Income (Loss)                         |   |                             | (14,388   | ) |   |   | (16,691 | )  |
| In Interest and Other Income                      |   |                             | 0         |   |   |   | 0 |   |
| In Interest and Other Expense                     |   |                             | 0         |   |   |   | 0 |   |
|                                              |   |                             | 0         |   |   |   | 0 |   |
| In Income (Loss) Before Income Taxes              |   |                             | (14,388   | ) |   |   | (16,691 | ) |
| In Income Taxes                                   |   |                             | 1,450     |   |   |   | 5,025 |   |
|                                              |   |                             |      |   |   |   |
| N  Net Income (Loss)                    |   | $                                | (15,838   | ) |   | $ | (21,716 | )  |
| B  Basic and Diluted Earnings Per Share |   | $                                | (0.00     | ) |   | $ | (0.00 | )  |
| W Weighted Average Shares Outstanding             |   |                             | 6,500,000 |   |   |   | 6,500,000 |   |

----

|                                                                             |   | Three Months Ended |
|----------------------------------------------------------------------------------|--------|--------------------|
|                                                                             |   | March 31,          |
|                                                                             |   | 2010               |   | 2009 |
| Cash Flows from Operating Activities:                                            |   |               |   |   |   |   |   |   |
| Net Loss                                                                         |   | $                  | (15,838 | ) |   | $ | (21,716 | )  |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |               |   |   |   |   |   |   |
|                                                                             |   |               |   |   |   |   |   |   |
| Net Change in Assets and Liabilities:                                            |   |               |   |   |   |   |   |   |
|                                                                             |   |               |   |   |   |   |   |   |
| Prepaid Expenses and Deposits                                                    |   |               | - |   |   |   | 2,842 |   |
| Accounts Payable                                                                 |   |               | (8,893 | ) |   |   | 2,261 |   |
|                                                                             |   |               |   |   |   |   |   |   |
| Accrued Expenses                                                                 |   |               | - |   |   |   | (14,375 | )  |
|                                                                             |   |               |   |   |   |   |   |   |
| Net Cash Used In Operating Activities                                            |   |               | 24,731 |   |   |   | (30,988 | ) |
|                                                                             |   |               |   |   |   |   |   |   |
| Cash Flows from Financing activities                                        |   |               |   |   |   |   |   |   |
| Loans from Officers                                                         |   |               | 32.500 |   |   |   |   - |   |
| Increase (Decrease) in Cash and Cash Equivalents                                 |   |               | 7,769 |   |   |   | (30,988 | ) |
|                                                                             |   |               |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period                                   |   |               | 1,792 |   |   |   | 66,833 |   |
| Cash and Cash Equivalents, End of Period                                         |   | $                  | 9,561 |   |   | $ | 35,845 |   |
| Supplemental Disclosure of Cash Flow Information:                                |   |               |   |   |   |   |   |   |
| Cash paid during the period for:                                                 |   |               |   |   |   |   |   |   |
| Interest                                                                         |   | $                  | 0 |   |   | $ | 0 |   |
| Income Taxes                                                                     |   |               | 1,450 |   |   |   | 5,025 |   |

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| (1) |   | Ability to Continue as a Going Concern, Sale of All or Substantially All of the Assets of Spatializer Audio Laboratories, Inc. |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------|

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|                                          |   |        |    |   | Weighted Average |   |
|-----------------------------------------------|--------|-------------|---------|--------|------------------|--------|
|                                          |   | Exercisable |    |   | Number           |   |   | Exercise Price |   |
| 2007                                          |   |        |    |   |             |   |   |   |   |
| Options outstanding at December 31, 2007 |   |        | 115,000 |   |             |   | 115,000 |   |   | $ | .80 |   |
|                                          |   |        |    |   |             |   |   |   |   |   |   |   |
| 2008                                          |   |        |    |   |             |   |   |   |   |   |   |   |
| Options granted                               |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options exercised                             |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options forfeited/expired                     |   |        | (55,000 | )      |             |   | (55,000 | ) |   | $ | .60 |   |
| Options outstanding at December 31, 2008 |   |        | 60,000  |   |             |   | 60,000 |   |   | $ | .98 |   |
|                                          |   |        |    |   |             |   |   |   |   |   |   |   |
| 2009                                          |   |        |    |   |             |   |   |   |   |   |   |   |
| Options granted                               |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options exercised                             |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options forfeited/expired                     |   |        | (10,000 | )      |             |   | (10,000 | ) |   | $ | .60 |   |
| Options outstanding at December 31, 2009 |   |        | 50,000  |   |             |   | 50,000 |   |   | $ | 1.00 |   |
|                                          |   |        |    |   |             |   |   |   |   |   |   |   |
| 2010                                          |   |        |    |   |             |   |   |   |   |   |   |   |
| Options granted                               |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options exercised                             |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options forfeited/expired                     |   |        | 0       |   |             |   | 0 |   |   | $ | -- |   |
| Options outstanding at March 31, 2010    |   |        | 50,000  |   |             |   | 50,000 |   |   | $ | 1.00 |   |
|                                          |   |        |    |   |             |   |   |   |   |   |   |   |

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|     ·       | To provide a narrative explanation of a company’s financial statements “in plain English” that enables the average investor to see the company through the eyes of management. |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | To enhance the overall financial disclosure and provide the context within which financial information should be analyzed; and |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|

|     ·       | To provide information about the quality of, and potential variability of, a company’s earnings and cash flow, so that investors can ascertain the likelihood and relationship of past performance being indicative of future performance. |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | An understanding of our operating environment and its risks (see below and Item 1A of Part II of this Form 10-Q) |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|

|     ·       | An outline of critical accounting policies |
|--------------------------------------------------------------------|--------------------------------------------|

|     ·       | A review of our corporate governance structure |
|--------------------------------------------------------------------|------------------------------------------------|

|     ·       | A review of the key components of the financial statements and our cash position and capital resources |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|

|     ·       | A review of the important trends in the financial statements and our cash flow |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------|

|     ·       | Disclosure on our internal controls and procedures |
|--------------------------------------------------------------------|----------------------------------------------------|

|     ·       | The market for our stock may not remain liquid and the stock price may be subject to volatility |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|

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| 31     |   | Rule 13a-14(a)/15d-14(a) Certification |
|--------|--------|---------------------------------------------|
|   |   |                                        |
| 32     |   | Section 1350 Certification             |

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|   | SPATIALIZER AUDIO LABORATORIES, INC.(Registrant)                                       |   |
|--------|----------------------------------------------------------------------------------------|--------|
|   |                                                                                   |   |
|   | /s/ Jay Gottlieb                                                                       |   |
|   | Jay Gottlieb                                                                           |   |
|   | Chairman of the Board, President, Secretary, Treasurer and Principal Executive Officer |   |
|   |
|   | /s/ GREGGORY SCHNEIDER                                                                 |   |
|   | Greggory Schneider                                                                     |   |
|   | Director, Chief Financial and Principal Financial Officer                              |   |

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