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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 KJ4nTswcMxWo+IvVnPqAccKz/wfW0kWsc4AiQz85zahqClXCKhEtkzsiVtSM6j2N
 /TcTP3MIXD0oDoeQn3p4DA==

<SEC-DOCUMENT>0001013816-05-000052.txt : 20050131
<SEC-HEADER>0001013816-05-000052.hdr.sgml : 20050131
<ACCEPTANCE-DATETIME>20050131161320
ACCESSION NUMBER:		0001013816-05-000052
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050127
FILED AS OF DATE:		20050131
DATE AS OF CHANGE:		20050131

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GRAPHON CORP/DE
		CENTRAL INDEX KEY:			0001021435
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				133899021
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3130 WINKLE AVENUE
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95065
		BUSINESS PHONE:		8004727466

	MAIL ADDRESS:	
		STREET 1:		3130 WINKLE AVENUE
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95065

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNITY FIRST ACQUISITION CORP
		DATE OF NAME CHANGE:	19960823

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WATSON GORDON
		CENTRAL INDEX KEY:			0001176239

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21683
		FILM NUMBER:		05561999

	BUSINESS ADDRESS:	
		STREET 1:		6732 SHIRE CIRCLE
		CITY:			HUNTINGTON
		STATE:			CA
		ZIP:			926481400
		BUSINESS PHONE:		7148439687

	MAIL ADDRESS:	
		STREET 1:		6732 SHIRE CIRCLE
		CITY:			HUNGINTON BEACH
		STATE:			CA
		ZIP:			926481500
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_watson-13105ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-01-27</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001021435</issuerCik>
        <issuerName>GRAPHON CORP/DE</issuerName>
        <issuerTradingSymbol>GOJO.OB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001176239</rptOwnerCik>
            <rptOwnerName>WATSON GORDON</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>6732 SHIRE CIRCLE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HUNTINGTON</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>926481400</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.43</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-01-27</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>160000</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>.43</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-01-27</value>
            </exerciseDate>
            <expirationDate>
                <value>2015-01-27</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>160000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>160000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The option is immediately exercisable, subject to the repurchase of the option shares by the issuer at the exercise price
upon the Reporting Person's termination of service prior to full vesting. The repurchase right lapses and the option
vests in 33 equal monthly installments beginning on April 27, 2005.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Gordon Watson</signatureName>
        <signatureDate>2005-01-31</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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