----

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|   | x | 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 |
|--------|---|------------------------------------------------------------------------------------------|

| Utah                                                  | 87-0454148                           |
|-------------------------------------------------------|--------------------------------------|
|  ( State or other jurisdiction of incorporation) | (IRS Employer Identification Number) |

----

| PART I.  FINANCIAL INFORMATION                                                                       |   |
|----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   |
| Item 1.  Financial Statements                                                                             |   |
|                                                                                                           |   |
| Condensed Consolidated Balance Sheets as of March 31, 2010 (unaudited) and December 31, 2009                   | 3      |
|                                                                                                           |   |
| Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2010 and 2009 (unaudited) | 4      |
|                                                                                                           |   |
| Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2010 and 2009 (unaudited) | 5      |
|                                                                                                           |   |
| Notes to Condensed Consolidated Financial Statements                                                           | 6      |
|                                                                                                           |   |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations      | 12     |
|                                                                                                           |   |
| Item 4.  Controls and Procedures                                                                          | 14     |
|                                                                                                           |   |
| PART II.  OTHER INFORMATION                                                                          |   |
|                                                                                                           |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                      | 15     |
|                                                                                                           |   |
| Item 4.  Submission of Matters to a Vote of Security Holders                                              | 15     |
|                                                                                                           |   |
| Item 6.  Exhibits                                                                                         | 16     |
|                                                                                                           |   |
| SIGNATURES                                                                                                     | 17     |

----

|                                                                                                          |   | March 31,   |   |   | December 31, |                |
|---------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|--------------|---------------------|
|                                                                                                          |   | 2010        |   |   | 2009         |                |
|                                                                                                          |   | (unaudited) |   |   |         | *    |   |
| Assets                                                                                                        |   |        |   |   |         |                |   |
| Current assets:                                                                                               |   |        |   |   |         |                |   |
| Cash and equivalents                                                                                          |   | $           | 11,406 |   |         | $                   | 11,785 |   |
| Accounts receivable – trade, net                                                                        |   |        | 527    |   |         |                | 476 |   |
| Inventory, net                                                                                                |   |        | 948    |   |         |                | 1,019 |   |
| Other current assets                                                                                          |   |        | 49     |   |         |                | 36 |   |
| Total current assets                                                                                          |   |        | 12,930 |   |         |                | 13,316 |   |
|                                                                                                          |   |        |   |   |         |                |   |   |
| Property and equipment, net                                                                                   |   |        | 366    |   |         |                | 358 |   |
|                                                                                                          |   |        |   |   |         |                |   |   |
| Other assets:                                                                                                 |   |        |   |   |         |                |   |   |
| Intangible assets, net                                                                                        |   |        | 121    |   |         |                | 122 |   |
| Deposits                                                                                                      |   |        | 126    |   |         |                | 52 |   |
| Total assets                                                                                                  |   | $           | 13,543 |   |         | $                   | 13,848 |   |
|                                                                                                          |   |        |   |   |         |                |   |   |
| Liabilities and stockholders’ equity                                                                    |   |        |   |   |         |                |   |   |
| Current liabilities:                                                                                          |   |        |   |   |         |                |   |   |
| Accounts payable                                                                                              |   | $           | 505    |   |         | $                   | 504 |   |
| Accrued expenses                                                                                              |   |        | 479    |   |         |                | 518 |   |
| Current portion of capital lease obligations                                                                  |   |        | 112    |   |         |                | 110 |   |
| Total current liabilities                                                                                     |   |        | 1,096  |   |         |                | 1,132 |   |
|                                                                                                          |   |        |   |   |         |                |   |   |
| Capital lease obligations, less current portion                                                               |   |        | 1      |   |         |                | 13 |   |
| Total liabilities                                                                                             |   |        | 1,097  |   |         |                | 1,145 |   |
|                                                                                                          |   |        |   |   |         |                |   |   |
| Stockholders’ equity:                                                                                   |   |        |   |   |         |                |   |   |
| Preferred stock, $.001 par value, 2,000,000 authorized, none issued and outstanding                           |   |        | -      |   |         |                | - |   |
| Common stock, $.0005 par value, 250,000,000 authorized, 3,091,000 outstanding in 2010 and 2009, respectively. |   |        | 2      |   |         |                | 2 |   |
| Additional paid-in capital                                                                                    |   |        | 20,775 |   |         |                | 20,767 |   |
| Accumulated deficit                                                                                           |   |        | (8,331 | )      |         |                | (8,066 | ) |
| Total stockholders’ equity                                                                              |   |        | 12,446 |   |         |                | 12,703 |   |
| Total liabilities and stockholders’ equity                                                              |   | $           | 13,543 |   |         | $                   | 13,848 |   |

----

|                                                                         |   | Three Months Ended March 31, |      |
|------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                         |   | 2010                         |      |   | 2009 |   |
|                                                                         |   |                         |      |   |   |   |
| Sales, net                                                                   |   | $                            | 1,142     |   |   | $ | 1,087 |   |
| Cost of sales                                                                |   |                         | 845       |   |   |   | 650 |   |
|       Gross profit                             |   |                         | 297       |   |   |   | 437 |   |
|                                                                         |   |                         |      |   |   |   |   |   |
| Operating expenses:                                                          |   |                         |      |   |   |   |   |   |
|    Selling, general and administrative expenses               |   |                         | 572       |   |   |   | 741 |   |
|       Operating loss                           |   |                         | (275      | ) |   |   | (304 | ) |
|                                                                         |   |                         |      |   |   |   |   |   |
| Other income:                                                                |   |                         |      |   |   |   |   |   |
| Interest expense                                                             |   |                         | (1        | ) |   |   | (3 | ) |
| Other income                                                                 |   |                         | 11        |   |   |   | 33 |   |
|      Total other income                             |   |                         | 10        |   |   |   | 30 |   |
|                                                                         |   |                         |      |   |   |   |   |   |
| Loss from continuing operations                                              |   |                         | (265      | ) |   |   | (274 | ) |
|                                                                         |   |                         |      |   |   |   |   |   |
| Loss from discontinued operations                                            |   |                         | -         |   |   |   | (12 | ) |
| Net loss                                                                     |   | $                            | (265      | ) |   | $ | (286 | ) |
|                                                                         |   |                         |      |   |   |   |   |   |
| Net loss per share – continuing operations – Basic and Diluted   |   | $                            | (0.09     | ) |   | $ | (0.08 | ) |
| Net loss per share – discontinued operations – Basic and Diluted |   | $                            | -         |   |   | $ | (0.01 | ) |
| Net loss per share – Basic and Diluted                                 |   | $                            | (0.09     | ) |   | $ | (0.09 | ) |
| Weighted average shares – Basic and Diluted                            |   |                         | 3,091,000 |   |   |   | 3,091,000 |   |

----

|                                                                                               |   | Three Months Ended March 31, |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                               |   | 2010                         |   |   | 2009 |   |
| Operating activities                                                                               |   |                         |   |   |   |   |
| Loss from continuing operations                                                                    |   | $                            | (265   | ) |   | $ | (274 | ) |
| Adjustments to reconcile loss from continuing operations to net cash used in operating activities: |   |                         |   |   |   |   |   |   |
|   Depreciation and amortization                                                          |   |                         | 48     |   |   |   | 51 |   |
|   Non-cash expense for issuance of stock and options                                     |   |                         | 8      |   |   |   | 8 |   |
|   Changes in operating assets and liabilities:                                           |   |                         |   |   |   |   |   |   |
|      Accounts receivable, trade                                           |   |                         | (51    | ) |   |   | 275 |   |
|      Inventory                                                            |   |                         | 71     |   |   |   | 80 |   |
|      Prepaids and other current assets                                    |   |                         | (13    | ) |   |   | (67 | ) |
|      Other assets                                                         |   |                         | (74    | ) |   |   | (20 | ) |
|      Accounts payable and accrued expenses                                |   |                         | (48    | ) |   |   | (822 | ) |
| Net cash used in continuing operations                                                             |   |                         | (324   | ) |   |   | (769 | ) |
| Net cash used in discontinued operations                                                           |   |                         | -      |   |   |   | (7 | ) |
| Net cash used in operating activities                                                              |   |                         | (324   | ) |   |   | (776 | ) |
|                                                                                               |   |                         |   |   |   |   |   |   |
| Investing activities                                                                               |   |                         |   |   |   |   |   |   |
| Patent acquisition costs                                                                           |   |                         | (2     | ) |   |   | (2 | ) |
| Purchase of plant and equipment                                                                    |   |                         | (53    | ) |   |   | (2 | ) |
|                                                                                               |   |                         |   |   |   |   |   |   |
| Net cash used in investing activities, continuing operations                                       |   |                         | (55    | ) |   |   | (4 | ) |
| Net cash used in investing activities, discontinued operations                                     |   |                         | -      |   |   |   | - |   |
| Net cash used in investing activities                                                              |   |                         | (55    | ) |   |   | (4 | ) |
|                                                                                               |   |                         |   |   |   |   |   |   |
| Financing activities                                                                               |   |                         |   |   |   |   |   |   |
| Net repayment of line of credit and capital lease obligations                                      |   |                         | -      |   |   |   | (4 | ) |
| Net cash used in financing activities, continuing operations                                       |   |                         | -      |   |   |   | (4 | ) |
| Net cash used in financing activities, discontinued operations                                     |   |                         | -      |   |   |   | - |   |
| Net cash used in financing activities                                                              |   |                         | -      |   |   |   | (4 | ) |
|                                                                                               |   |                         |   |   |   |   |   |   |
| Net decrease in cash                                                                               |   |                         | (379   | ) |   |   | (784 | ) |
| Cash and cash equivalents, beginning of year                                                       |   |                         | 11,785 |   |   |   | 12,943 |   |
| Cash and cash equivalents, end of year                                                             |   | $                            | 11,406 |   |   | $ | 12,159 |   |
| Supplemental cash flow information:                                                                |   |                         |   |   |   |   |   |   |
| Cash paid for interest, continuing operations                                                      |   | $                            | -      |   |   | $ | 3 |   |

----

----

----

| Sales, net                                                       |   | $      | 1      |   |
|------------------------------------------------------------------|--------|--------|--------|--------|
|   Total revenue                                        |   |   | 1      |   |
|                                                             |   |   |   |   |
| Cost of sales                                                    |   |   | 13     |   |
|   Total cost of goods sold                             |   |   | 13     |   |
|                                                             |   |   |   |   |
|       Gross Loss                   |   |   | (12    | )      |
|                                                             |   |   |   |   |
| Operating expenses:                                              |   |   |   |   |
| Selling, general and administrative expenses                     |   |   | -      |   |
|       Loss from operations         |   |   | (12    | )      |
|                                                             |   |   |   |   |
| Other income (expense):                                          |   |   |   |   |
| Interest expense, net                                            |   |   | -      |   |
| Other income                                                     |   |   | -      |   |
|       Total other income (expense) |   |   | -      |   |
| Loss before income taxes                                         |   |   | (12    | )      |
| Provision for income taxes                                       |   |   | -      |   |
| Net loss                                                         |   | $      | (12    | )      |

----

|                                   |   | Three Months Ended |   |
|----------------------------------------|--------|--------------------|--------|
|                                   |   | March 31, 2010     |   |   | March 31, 2009 |   |
| Stock options                          |   | $                  | 8      |   |   | $ | 8 |   |
| Total share-based compensation expense |   | $                  | 8      |   |   | $ | 8 |   |

|                       |   | Number ofShares |   |   | Weighted AverageExercise Price ($) |   |
|----------------------------|--------|-----------------|--------|--------|------------------------------------|--------|
|                       |   |            |   |   |                               |   |
| Balance at January 1, 2010 |   |            | 40,000 |   |                               | $      | 5.40 |   |
| Granted                    |   |            | -      |   |                               |   | - |   |
| Exercised                  |   |            | -      |   |                               |   | - |   |
| Forfeited or expired       |   |            | -      |   |                               |   | - |   |
| Balance at March 31, 2010  |   |            | 40,000 |   |                               | $      | 5.40 |   |

| Weighted average contractual remaining term - options outstanding | 7.48 years |
|-------------------------------------------------------------------|------------|
| Aggregate intrinsic value - options outstanding                   | -          |
| Options exercisable                                               | 24,000     |
| Weighted average exercise price – options exercisable       | $5.40      |
| Aggregate intrinsic value - options exercisable                   | -          |
| Weighted average contractual remaining term - options exercisable | 7.48 years |

----

|                          |   | For the Three Months Ended March 31, |   |
|-------------------------------|--------|--------------------------------------|--------|
|                          |   | 2010                                 |   |   | 2009 |   |
|                          |   | Net Loss Attributed to Common Stock  |   |   | Weighted-Average Shares |   |   | Per Share Loss |   |   | Net Loss Attributed to Common Stock |   |   | Weighted-Average Shares |   |   | Per Share Loss |   |
| Basic EPS:                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing          |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                    |   | $                                    | (265   | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |   | $ | (274 | ) |   |   | 3,091 |   |   | $ | (0.08 | ) |
| Effect of dilutive securities |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options        |   |                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted loss per share        |   | $                                    | (265   | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |   | $ | (274 | ) |   |   | 3,091 |   |   | $ | (0.08 | ) |
|                          |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from discontinued        |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                    |   | $                                    | -      |   |   |   | 3,091 |   |   | $ | - |   |   | $ | (12 | ) |   |   | 3,091 |   |   | $ | (0.01 | ) |
| Effect of dilutive securities |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options        |   |                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted loss per share        |   | $                                    | -      |   |   |   | 3,091 |   |   | $ | - |   |   | $ | (12 | ) |   |   | 3,091 |   |   | $ | (0.01 | ) |
|                          |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                      |   | $                                    | (265   | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |   | $ | (286 | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |
| Effect of dilutive securities |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options        |   |                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Diluted loss per share        |   | $                                    | (265   | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |   | $ | (286 | ) |   |   | 3,091 |   |   | $ | (0.09 | ) |

|             |   | March 31, |   |   | December 31, |   |
|------------------|--------|-----------|--------|--------|--------------|--------|
|             |   | 2010      |   |   | 2009         |   |
| Raw materials    |   | $         | 380    |   |         | $      | 315 |   |
| Work in progress |   |      | -      |   |         |   | - |   |
| Finished goods   |   |      | 568    |   |         |   | 704 |   |
| Net inventory    |   | $         | 948    |   |         | $      | 1,019 |   |

----

----

----

----

|                        |   | March 31,  |   |   | December 31, |   |
|-----------------------------|--------|------------|--------|--------|--------------|--------|
| (Thousands of dollars)      |   | 2010       |   |   | 2009         |   |
|                        |   |       |   |   |         |   |
| Current ratio (1)           |   | 11.80 to 1 |   |   | 11.76 to 1   |   |
|                        |   |       |   |   |         |   |
| Working capital (2)         |   | $          | 11,834 |   |         | $      | 12,184 |   |
|                        |   |       |   |   |         |   |   |   |
| Total debt                  |   | $          | -      |   |         | $      | - |   |
|                        |   |       |   |   |         |   |   |   |
| Total cash less debt        |   | $          | 11,406 |   |         | $      | 11,785 |   |
|                        |   |       |   |   |         |   |   |   |
| Stockholders' equity        |   | $          | 12,446 |   |         | $      | 12,703 |   |
|                        |   |       |   |   |         |   |   |   |
| Total liabilities to equity |   | 0.09 to 1  |   |   | 0.09 to 1    |   |

----

----

| Exhibit Number |   | Description                                                                                                                        |
|----------------|--------|------------------------------------------------------------------------------------------------------------------------------------|
| 3.1            |   | Amended and Restated Articles of Incorporation dated October 11, 2000 (1)                                                          |
| 3.2            |   | Bylaws of the Company as amended and restated on March 25, 1998 (2)                                                                |
|           |   |                                                                                                                               |
| 10.2           |   | Stock Purchase Agreement, by and among Bluecoral limited, Winncom Technologies Corp. and the Company dated as of July 28, 2006 (3) |
| 10.3           |   | Escrow Agreement, dated July 28, 2006, by and among the Company, Bluecoral Limited and Consumer Title Services, LLC (3)            |
| 10.4           |   | Employment Agreement effective January 31, 2008 between the Company and Randall P. Marx (4)                                        |
| 10.5           |   | Employment Agreement effective November 1, 2007 between the Company and Monty R. Lamirato (5)                                      |
| 10.6           |   | Employment Agreement effective November 1, 2007 between the Company and Steve C. Olson (5)                                         |
| 10.7           |   | Employment Agreement effective November 1, 2007 between the Company and Richard L. Anderson (5)                                    |
|           |   |                                                                                                                               |
| 31.1 *         |   | Officers’ Certifications of Periodic Report pursuant to Section 302 of Sarbanes-Oxley Act of 2002                            |
| 31.2 *         |   | Officers’ Certifications of Periodic Report pursuant to Section 302 of Sarbanes-Oxley Act of 2002                            |
| 32.1 *         |   | Officers’ Certifications of Periodic Report pursuant to Section 906 of Sarbanes-Oxley Act of 2002                            |

| (1)   | Incorporated by reference from the Company’s Form 10-KSB for December 31, 2000 filed on April 2, 2001. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (2)   | Incorporated by reference from the Company’s Form 10-KSB for December 31, 1997 filed on March 31, 1998. |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (3)   | Incorporated by reference from the Company’s Form 8-K/A filed on August 2, 2006. |
|-----------------|----------------------------------------------------------------------------------------|

| (4)   | Incorporated by reference from the Company’s Form 8-K filed on February 7, 2008. |
|-----------------|----------------------------------------------------------------------------------------|

| (5)   | Incorporated by reference from the Company’s Form 8-K filed on November 8, 2007. |
|-----------------|----------------------------------------------------------------------------------------|

----

|                                 | ARC WIRELESS SOLUTIONS, INC. |                    |
|--------------------------------------|------------------------------|-------------------------|
|                                 |                         |                    |   |
| Date: May 17, 2010    | By:                          | /s/ Jason Young    |   |
|                                 |                         | Jason Young             |   |
|                                 |                         | Chief Executive Officer |   |
|                                 |                         |                    |   |

| Date: May 17, 2010   | By:    | /s/ Steve Olson                     |   |
|--------------------------------|--------|------------------------------------------|--------|
|                           |   | Steve Olson                              |   |
|                           |   | Chief Technology Officer and             |   |
|                           |   |  Acting Principal Financial Officer |   |