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| Delaware                                      |   | 98-0166007                          |
|-----------------------------------------------|--------|-------------------------------------|
| (State or Other Jurisdictionof Incorporation) |   | (I.R.S. EmployerIdentification No.) |

|                                                 |         |                                         |
|------------------------------------------------------|--------------|----------------------------------------------|
| Large accelerated filer    ̈           |    | Accelerated filer    ̈         |
| Non-accelerated filer      ̈ |    | Smaller reporting company   þ |

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|       | PART I – FINANCIAL INFORMATION                                                                 |   |   |   |
|------------|------------------------------------------------------------------------------------------------------|--------|--------|--------|
|       |                                                                                                 |   |   |   |
| Item 1.    | Financial Statements                                                                                 |   |   | 1      |   |
|       |                                                                                                 |   |   |   |   |
|       | Consolidated Balance Sheets March 31, 2010 (Unaudited) and December 31, 2009 (Audited)               |   |   | 1      |   |
|       |                                                                                                 |   |   |   |   |
|       | Consolidated Statements of Operations for the three months ended March 31, 2010 and 2009 (Unaudited) |   |   | 2      |   |
|       |                                                                                                 |   |   |   |   |
|       | Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and 2009 (Unaudited) |   |   | 3      |   |
|       |                                                                                                 |   |   |   |   |
|       | Notes to the Unaudited Consolidated Financial Statements                                             |   |   | 4      |   |
|       |                                                                                                 |   |   |   |   |
| Item 2.    | Management's Discussion and Analysis of Financial Condition and  Results of Operation           |   |   | 7      |   |
|       |                                                                                                 |   |   |   |   |
| Item 4T.   | Controls and Procedures                                                                              |   |   | 10     |   |
|       |                                                                                                 |   |   |   |   |
|       | PART II – OTHER INFORMATION                                                                    |   |   |   |   |
|       |                                                                                                 |   |   |   |   |
| Item 6.    | Exhibits                                                                                             |   |   | 11     |   |
|       |                                                                                                 |   |   |   |   |
| SIGNATURES |                                                                                                 |   |   | 12     |   |

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|                                                                                                                                                                              |   | March 31,   |         |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------------|--------|--------------|--------|
|                                                                                                                                                                              |   | 2010        |         |   | 2009         |   |
|                                                                                                                                                                              |   | (Unaudited) |         |   |         |   |
| ASSETS                                                                                                                                                                            |   |        |         |   |         |   |
| CURRENT ASSETS                                                                                                                                                                    |   |        |         |   |         |   |
|      Cash and  cash equivalents                                                                                                                |   | $           | 834,756      |   |         | $      | 987,010 |   |
|      Accounts receivable                                                                                                                                 |   |        | 56,656       |   |         |   | 1,238,708 |   |
|      Inventory                                                                                                                                           |   |        | 812,129      |   |         |   | 361,201 |   |
|      Prepaid expenses and other current assets                                                                                                           |   |        | 203,820      |   |         |   | 202,568 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
|                Total current assets                                                                    |   |        | 1,907,361    |   |         |   | 2,789,487 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
| Property and equipment, net                                                                                                                                                       |   |        | 687,745      |   |         |   | 603,412 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
|                Total assets                                                                            |   | $           | 2,595,106    |   |         | $      | 3,392,899 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                             |   |        |         |   |         |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                               |   |        |         |   |         |   |   |   |
|      Accounts payable                                                                                                                                    |   | $           | 1,698,125    |   |         | $      | 2,015,771 |   |
|      Accrued expenses and other current liabilities                                                                                                      |   |        | 1,020,037    |   |         |   | 829,041 |   |
|      Deferred revenue                                                                                                                                    |   |        | 56,584       |   |         |   | 158,686 |   |
|      Capital lease obligations, current portion                                                                                                          |   |        | 12,641       |   |         |   | 11,463 |   |
|      Convertible debt, current portion (net of discount of $-0- and $183,609)                                                                            |   |        | -            |   |         |   | 9,816,391 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
|                Total current liabilities                                                               |   |        | 2,787,387    |   |         |   | 12,831,352 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
| NON-CURRENT LIABILITIES                                                                                                                                                           |   |        |         |   |         |   |   |   |
|      Deferred rent                                                                                                                                       |   |        | 141,716      |   |         |   | 84,906 |   |
|      Capital lease obligations, less current portion                                                                                                     |   |        | 7,281        |   |         |   | 11,504 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
|                Total  liabilities                                                            |   |        | 2,936,384    |   |         |   | 12,927,762 |   |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
| STOCKHOLDERS' DEFICIT                                                                                                                                                        |   |        |         |   |         |   |   |   |
|     Common stock, $.001 par value;                                                                                                                            |   |        |         |   |         |   |   |   |
|       2,000,000,000 shares authorized in 2010 and 2009;1,583,075,354 and 899,039,687issued; 1,582,075,354 and 898,039,687 outstanding, respectively |   |        | 1,583,076    |   |         |   | 899,040 |   |
|      Additional paid-in capital                                                                                                                          |   |        | 140,938,925  |   |         |   | 130,008,365 |   |
|      Accumulated deficit                                                                                                                                 |   |        | (142,663,279 | )      |         |   | (140,242,268 | ) |
|       Less: treasury stock; 1,000,000 shares at cost                                                                                                |   |        | (200,000     | )      |         |   | (200,000 | ) |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
|                Total stockholders' deficit                                                        |   |        | (341,278     | )      |         |   | (9,534,863 | ) |
|                                                                                                                                                                              |   |        |         |   |         |   |   |   |
|                Total liabilities and stockholders' deficit                                        |   | $           | 2,595,106    |   |         | $      | 3,392,899 |   |

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| AMBIENT CORPORATION                   |
|---------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS |

|                                                             |   | Three Months Ended |          |
|------------------------------------------------------------------|--------|--------------------|---------------|
|                                                             |   | March 31,          |          |
|                                                             |   | 2010               |          |   | 2009 |   |
|                                                             |   | (Unaudited)        |          |   | (Unaudited) |   |
| Revenues                                                         |   | $                  | 1,683,925     |   |   | $ | 826,593 |   |
|                                                             |   |               |          |   |   |   |   |   |
| Less: Cost of goods sold                                         |   |               | 1,141,038     |   |   |   | 731,236 |   |
|                                                             |   |               |          |   |   |   |   |   |
| Gross profit                                                     |   |               | 542,887       |   |   |   | 95,357 |   |
|                                                             |   |               |          |   |   |   |   |   |
| Expenses                                                         |   |               |          |   |   |   |   |   |
| Research and development                                         |   |               | 1,564,900     |   |   |   | 1,001,709 |   |
| Operating, general and administrative expenses                   |   |               | 1,156,726     |   |   |   | 1,073,294 |   |
| Stock based compensation - operating, general and administrative |   |               | 29,931        |   |   |   | 222,674 |   |
|                                                             |   |               |          |   |   |   |   |   |
| Total expenses                                                   |   |               | 2,751,557     |   |   |   | 2,297,677 |   |
|                                                             |   |               |          |   |   |   |   |   |
|                                                             |   |               |          |   |   |   |   |   |
| Gain on sale property and equipment                              |   |               | -             |   |   |   | 460 |   |
|                                                             |   |               |          |   |   |   |   |   |
| Operating loss                                                   |   |               | (2,208,670    | ) |   |   | (2,201,860 | ) |
|                                                             |   |               |          |   |   |   |   |   |
| Interest and finance expenses                                    |   |               | (212,474      | ) |   |   | (1,864,293 | ) |
| Interest income                                                  |   |               | 134           |   |   |   | 21,715 |   |
|                                                             |   |               |          |   |   |   |   |   |
| Net loss                                                         |   | $                  | (2,421,010    | ) |   | $ | (4,044,438 | ) |
|                                                             |   |               |          |   |   |   |   |   |
| Basic and diluted loss per share:                                |   |               |          |   |   |   |   |   |
|       Net loss                     |   | $                  | 0.00          |   |   | $ | (0.01 | ) |
|                                                             |   |               |          |   |   |   |   |   |
| Weighted average number of shares outstanding                    |   |               | 1,416,201,387 |   |   |   | 719,980,784 |   |

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|                                                                                                                                                              |   | Three Months Ended |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                                                                                                              |   | March 31,          |       |
|                                                                                                                                                              |   | 2010               |       |   | 2009 |   |
|                                                                                                                                                              |   | (Unaudited)        |       |   | (Unaudited) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                                              |   |               |       |   |   |   |
|      Net loss                                                                                                                            |   | $                  | (2,421,010 | ) |   | $ | (4,044,438 | ) |
|      Adjustments to reconcile net loss to net cash used in operating activities:                                                         |   |               |       |   |   |   |   |   |
|          Depreciation and amortization                                                                               |   |               | 85,884     |   |   |   | 64,767 |   |
|          Amortization of beneficial conversion feature of convertible debt                                           |   |               | 183,609    |   |   |   | 1,697,529 |   |
|           Financing, consulting and other expenses paid via the issuance of common stock and warrants |   |               | 29,931     |   |   |   | 222,674 |   |
|          (Gain) on sale of property and equipment                                                                    |   |               | -          |   |   |   | (460 | ) |
|           Changes in operating assets and liabilities                                                           |   |               |       |   |   |   |   |   |
|          (Increase) decrease in operating assets:                                                                    |   |               |       |   |   |   |   |   |
|               Accounts receivables                                                          |   |               | 841,593    |   |   |   | 1,665,911 |   |
|               Inventory                                                                     |   |               | (450,928   | ) |   |   | (314,367 | ) |
|               Prepaid expenses and other current assets                                     |   |               | (1,252     | ) |   |   | 45,105 |   |
|          Increase (decrease) in operating liabilities:                                                               |   |               |       |   |   |   |   |   |
|               Accounts payable                                                              |   |               | 22,811     |   |   |   | (255,930 | ) |
|               Deferred rent                                                                 |   |               | 56,810     |   |   |   | - |   |
|               Accrued expenses and other current liabilities                                |   |               | 190,996    |   |   |   | 96,892 |   |
|               Deferred revenue                                                              |   |               | (102,102   | ) |   |   | (33,930 | ) |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| Net cash used in operating activities                                                                                                                             |   |               | (1,563,658 | ) |   |   | (856,247 | ) |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| CASH FLOWS FROM  INVESTING ACTIVITIES                                                                                                                   |   |               |       |   |   |   |   |   |
|          Redemption of marketable securities                                                                         |   |               | -          |   |   |   | 125,000 |   |
|          Additions to property and equipment                                                                         |   |               | (170,217   | ) |   |   | (15,726 | ) |
|          Proceeds from sale of property and equipment                                                                |   |               | -          |   |   |   | 460 |   |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| Net cash (used in) provided by investing activities                                                                                                               |   |               | (170,217   | ) |   |   | 109,734 |   |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                                              |   |               |       |   |   |   |   |   |
|          Proceeds from issuance of common stock                                                                      |   |               | 1,500,000  |   |   |   | - |   |
|          Proceeds from exercise of warrants                                                                          |   |               | 75,040     |   |   |   | - |   |
|          Proceeds from exercise of options                                                                           |   |               | 9,625      |   |   |   | - |   |
|          Payments of capitalized lease obligations                                                                   |   |               | (3,044     | ) |   |   | (2,762 | ) |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                                                                                               |   |               | 1,581,621  |   |   |   | (2,762 | ) |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| DECREASE IN CASH AND CASH EQUIVALENTS                                                                                                                             |   |               | (152,254   | ) |   |   | (749,275 | ) |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                                                                                                   |   |               | 987,010    |   |   |   | 8,011,764 |   |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - END OF PERIOD                                                                                                                         |   | $                  | 834,756    |   |   | $ | 7,262,489 |   |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| Noncash financing and investing activities:                                                                                                                       |   |               |       |   |   |   |   |   |
|      Issuance of common stock in connection with conversion of debt                                                                      |   | $                  | 10,000,000 |   |   | $ | - |   |
|                                                                                                                                                              |   |               |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                                |   |               |       |   |   |   |   |   |
|     Cash paid during the period for:                                                                                                          |   |               |       |   |   |   |   |   |
|           Interest                                                                                              |   | $                  | 569        |   |   | $ | 185,510 |   |

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|                                                                                                                                                                                                                                                                                                                                  |   | Shares of Common StockIssuable upon Conversion/Exerciseof as March  31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                  |   | 2010                                                                         |       |   | 2009 |   |
| Stock options                                                     |   |                                                                         | 56,137,000 |    |   |   | 59,337,000 |   |
| Warrants                                                                                                                                                                                                                                                                                                                              |   |                                                                         | 91,683,831 |   |   |   | 129,216,664 |   |
| Convertible debentures                                                                                                                                                                                                                                                                                                                |   |                                                                         | ------     |   |   |   | 833,333,333 |   |

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|                  |   | Three Months Ended |      |
|-----------------------|--------|--------------------|-----------|
|                  |   | March 31,2010      |      |   | March 31,2009 |   |
|                  |   | (Unaudited)        |      |
| Products              |   | $                  | 1,665,065 |   |   | $ | 792,663 |   |
| Software and services |   |               | 18,860    |   |   |   | 33,930 |   |
|                  |   | $                  | 1,683,925 |   |   | $ | 826,593 |   |

|           |   | March 31,2010 |    |   | December 31, 2009 |   |
|----------------|--------|---------------|---------|--------|------------------------|--------|
|           |   | (Unaudited)   |    |   | (Audited)              |   |
| Raw materials  |   | $             | 172,874 |   |                   | $      | 137,026 |   |
| Finished goods |   |          | 639,255 |   |                   |   | 224,175 |   |
|           |   | $             | 812,129 |   |                   | $      | 361,201 |   |

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| ExhibitNo. |   | Description                                                                                                                                                                                                                                               |
|------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                      |
| 31         |   | Certification of John J. Joyce, Chief Executive Officer (Principal Executive officer and Principle Financial and Accounting Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.                                  |
| 32         |   | Certification of John J. Joyce, Chief Executive Officer (Principal Executive officer and Principle Financial and Accounting Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. |

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|                                                   |                |                                                                                                |
|--------------------------------------------------------|---------------------|-----------------------------------------------------------------------------------------------------|
|           | AMBIENT CORPORATION |
|                                                   |                |                                                                                           |
|                                                   |                |                                                                                                |
| Dated: May 17, 2010                               | By:       | /s/ John J. Joyce                                                                                   |
|                                                   |                | John J. Joyce                                                                                       |
|                                                   |                | Chief Executive Officer (Principal Executive Officer andPrincipal Financial and Accounting Officer) |

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| ExhibitNo. |   | Description                                                                                                                                                                                                                                               |
|------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                      |
| 31         |   | Certification of John J. Joyce, Chief Executive Officer (Principal Executive officer and Principle Financial and Accounting Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.                                  |
| 32         |   | Certification of John J. Joyce, Chief Executive Officer (Principal Executive officer and Principle Financial and Accounting Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002. |

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