| x QUARTERLY      REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|------------------------------------------------------------------------------------------------|

| o TRANSITION      REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE    ACT |
|----------------------------------------------------------------------------|

| TRUDY      CORPORATION                                      |
|-------------------------------------------------------------|
| (Exact      name of Registrant as specified in its charter) |
|                                                        |   |   |
| Delaware                                                    |   | 06-1007765 |
| (State      or Other Jurisdiction of                        |   | (I.R.S.      Employer Identification No.) |
| incorporation      or organization)                         |   |   |

| (203)      846-2274                                                                          |
|----------------------------------------------------------------------------------------------|
| (Registrant’s      telephone number, including area code)                              |
|                                                                                         |
| N/A                                                                                          |
| (Former      name, former address and former fiscal year, if      changed since last report) |

| Large      accelerated filer o | Accelerated      filer o | Non-accelerated      filer o | Smaller      reporting company x |
|--------------------------------|--------------------------|------------------------------|----------------------------------|

----

----

PART I

Item 1. Financial Statements

----

| INDEX                                                                                                                                 |   | PAGE      NUMBER |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|
|                                                                                                                                  |   |             |
| PART I. FINANCIAL INFORMATION                                                                                                         |   |             |
|                                                                                                                                  |   |             |
| Item 1. Financial Statements                                                                                                          |   |        3    |
|                                                                                                                                  |   |             |
| Consolidated Balance Sheets – December 31, 2009 (unaudited)      and March 31, 2009                                             |   | 5                |
|                                                                                                                                  |   |             |
| Unaudited Consolidated Statements of Operations for the three      and nine months ended December 31, 2009 and December 31,      2008 |   | 6                |
|                                                                                                                                  |   |             |
| Unaudited Consolidated Statement of Shareholders’ Deficit      from March 31, 2009 through December 31, 2009                    |   |        7    |
|                                                                                                                                  |   |             |
| Unaudited Consolidated Statements of Cash Flows for the nine      months ended December 31, 2009 and December 31, 2008                |   | 8                |
|                                                                                                                                  |   |             |
| Notes to Financial Statements (unaudited)                                                                                             |   | 9                |
|                                                                                                                                  |   |             |
| Item 2. Management’s Discussion and    Analysis                                                                                 |   | 16               |
|                                                                                                                                  |   |             |
| Item 3. Quantitative and Qualitative Disclosures about Market      Risk                                                               |   | 24               |
|                                                                                                                                  |   |             |
| Item 4. Controls and Procedures                                                                                                       |   | 24               |
|                                                                                                                                  |   |             |
| PART II. OTHER INFORMATION                                                                                                            |   |             |
|                                                                                                                                  |   |             |
| Item 1. Legal Proceedings                                                                                                             |   | 25               |
|                                                                                                                                  |   |             |
| Item 2. Changes in Securities                                                                                                         |   | 25               |
|                                                                                                                                  |   |             |
| Item 3. Defaults upon Senior Securities                                                                                               |   | 25               |
|                                                                                                                                  |   |             |
| Item 4. Submission of Matters to a Vote of Security      Holders                                                                      |   | 25               |
|                                                                                                                                  |   |             |
| Item 5. Other Information                                                                                                             |   | 26               |
|                                                                                                                                  |   |             |
| Item 6. Exhibits                                                                                                                      |   | 26               |
|                                                                                                                                  |   |             |
| Signatures                                                                                                                            |   |        27   |

----

Balance Sheets

|                                                                                                                                                    |   | December      31, 2009 |       |   | March      31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|---------------------|--------|
|                                                                                                                                                    |   | (Unaudited)            |       |   |                |   |
| Assets                                                                                                                                                  |   |                   |       |   |                |   |
| Current      assets                                                                                                                                     |   |                   |       |   |                |   |
|  Assets      held for sale                                                                                                                         |   |                   |       |   |                |   |
| Cash      and cash equivalents                                                                                                                          |   | $                      | 173,665    |   |                | $      | 122,739 |   |
| Accounts      receivable, net                                                                                                                           |   |                   | 1,409,778  |   |                |   | 1,042,278 |   |
| Inventory,      net                                                                                                                                     |   |                   | 1,368,422  |   |                |   | 1,649,476 |   |
| Prepaid      expenses and other current assets                                                                                                          |   |                   | 111,765    |   |                |   | 172,827 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      current assets                                                                                                                               |   |                   | 3,063,630  |   |                |   | 2,987,320 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
|  Assets      held for sale                                                                                                                         |   |                   |       |   |                |   |   |   |
| Equipment,      net                                                                                                                                     |   |                   | 70,941     |   |                |   | 84,792 |   |
| Royalty      advances, net                                                                                                                              |   |                   | 161,945    |   |                |   | 264,820 |   |
| Prepublication      costs and other assets, net                                                                                                         |   |                   | 436,769    |   |                |   | 484,645 |   |
|  Prepaid      acquisitions                                                                                                                         |   |                   | 327,586    |   |                |   | 386,908 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      other assets                                                                                                                                 |   |                   | 997,241    |   |                |   | 1,221,165 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      assets                                                                                                                                       |   | $                      | 4,060,871  |   |                | $      | 4,208,485 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Current      liabilities                                                                                                                                |   |                   |       |   |                |   |   |   |
|  Current      liabilities associated with assets held for sale                                                                                     |   |                   |       |   |                |   |   |   |
| Notes      payable - bank                                                                                                                               |   | $                      | 520,706    |   |                | $      | 1,045,947 |   |
| Notes      payable - third party                                                                                                                        |   |                   | 421,826    |   |                |   | — |   |
| Notes      payable - related parties                                                                                                                    |   |                   | 2,680,701  |   |                |   | 1,894,959 |   |
| Accounts      payable and accrued expenses                                                                                                              |   |                   | 1,671,478  |   |                |   | 1,766,359 |   |
| Deferred      revenue                                                                                                                                   |   |                   | 163,528    |   |                |   | 280,231 |   |
| Royalties      and commissions payable                                                                                                                  |   |                   | 573,594    |   |                |   | 554,060 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      current liabilities                                                                                                                          |   |                   | 6,031,833  |   |                |   | 5,541,556 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      liabilities                                                                                                                                  |   |                   | 6,031,833  |   |                |   | 5,541,556 |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Commitments                                                                                                                                             |   |                   |       |   |                |   |   |   |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Shareholders’      deficit                                                                                                                        |   |                   |       |   |                |   |   |   |
| Common      stock - $ 0.0001 par value 850,000,000 shares authorized 700,682,912      issued and outstanding at December 31, 2009 and March 31,    2009 |   |                   | 70,087     |   |                |   | 70,087 |   |
| Paid-in      capital                                                                                                                                    |   |                   | 7,140,750  |   |                |   | 7,140,750 |   |
| Accumulated      deficit                                                                                                                                |   |                   | (9,181,799 | )      |                |   | (8,543,908 | ) |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      shareholders’ deficit                                                                                                                  |   |                   | (1,970,962 | )      |                |   | (1,333,071 | ) |
|                                                                                                                                                    |   |                   |       |   |                |   |   |   |
| Total      liabilities and shareholders’ deficit                                                                                                  |   | $                      | 4,060,871  |   |                | $      | 4,208,485 |   |

----

Statements of Operations

|                                               |   | Three      Month Period |        |   | Nine      Month Period  |   |
|----------------------------------------------------|--------|-------------------------|-------------|--------|-------------------------|--------|
|                                               |   | Ended      December 31, |        |   | Ended      December 31, |   |
|                                               |   | 2009                    |        |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
|                                               |   | (unaudited)             |        |   | (unaudited)             |   |   | (unaudited) |   |   | (unaudited) |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |
| Net      product sales                             |   | $                       | —     |   |                    | $      | — |   |   | $ | — |   |   | $ | — |   |
| Royalty      sales                                 |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                     |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                 |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                  |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                           |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative           |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from operations                          |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Other      expense                                 |   |                    | —     |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from continuing operations               |   | $                       | —     |   |                    | $      | — |   |   | $ | — |   |   | $ | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      operations                       |   |                    | (75,549     | )      |                    |   | (4,155 | ) |   |   | (637,891 | ) |   |   | (359,331 | ) |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                      |   | $                       | (75,549     | )      |                    | $      | (4,155 | ) |   | $ | (637,891 | ) |   | $ | (359,331 | ) |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net loss per share          |   | $                       | —     |   |                    | $      | — |   |   | $ | — |   |   | $ | — |   |
|                                               |   |                    |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of shares outstanding |   |                    | 700,862,912 |   |                    |   | 643,760,617 |   |   |   | 700,862,912 |   |   |   | 637,300,231 |   |

----

Statements of Shareholders’ Deficit

|                                          |   | Common      Stock |        |   | Additional      Paid-in |   |    | Accumulated |   |   | Total      Shareholders’ |   |
|-----------------------------------------------|--------|-------------------|-------------|--------|-------------------------|--------|---------|-------------|--------|--------|--------------------------------|--------|
|                                          |   | Shares            |        |   | Amount                  |   |    | Capital     |   |   | Deficit                        |   |   | Deficit |   |
|                                          |   |              |        |   |                    |   |    |        |   |   |                           |   |   |   |   |
| Balance      at March 31, 2009 (audited)      |   |              | 700,862,912 |   |                    | $      | 70,087  |        |   | $      | 7,140,750                      |   |   | $ | (8,543,908 | ) |   | $ | (1,333,071 | ) |
|                                          |   |              |        |   |                    |   |    |        |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net      Loss                                 |   |              | —     |   |                    |   | — |        |   |   | —                        |   |   |   | (637,891 | ) |   |   | (637,891 | ) |
|                                          |   |              |        |   |                    |   |    |        |   |   |                           |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2009 (unaudited) |   |              | 700,862,912 |   |                    | $      | 70,087  |        |   | $      | 7,140,750                      |   |   | $ | (9,181,799 | ) |   | $ | (1,970,962 | ) |

----

Statements of Cash Flows

|                                                                                                |   | Nine      Month Period Ended |     |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                                                |   | December      31,            |     |
|                                                                                                |   | 2009                         |     |   | 2008 |   |
|                                                                                                |   | (unaudited)                  |     |   | (unaudited) |   |
|                                                                                                |   |                         |     |   |   |   |
| Cash      Flows From Operating Activities                                                           |   |                         |     |   |   |   |
| Net      loss - from discontinued operations                                                        |   | $                            | (637,891 | ) |   | $ | (359,331 | ) |
| Adjustments      to reconcile net loss to net cash provided by (used in) operating      activities: |   |                         |     |   |   |   |   |   |
| Depreciation                                                                                        |   |                         | 18,076   |   |   |   | 13,566 |   |
| Amortization      of pre-publication costs                                                          |   |                         | 126,648  |   |   |   | 184,888 |   |
| Amortization      of intangibles                                                                    |   |                         | 59,322   |   |   |   | 41,652 |   |
| Amortization      of royalty advances                                                               |   |                         | 102,875  |   |   |   |   |   |
| Provision      for losses on accounts receivable                                                    |   |                         | 10,000   |   |   |   | 27 |   |
| Provision      for promotional allowance                                                            |   |                         | 17,000   |   |   |   | (27,000 | ) |
| Provision      for slow moving inventory                                                            |   |                         | —  |   |   |   | (108,000 | ) |
| Provision      for sales returns                                                                    |   |                         | —  |   |   |   | (571,114 | ) |
| Board      Compensation                                                                             |   |                         | —  |   |   |   | 11,100 |   |
| Gain      on debt extinguishment                                                                    |   |                         |     |   |   |   | (55,000 | ) |
|                                                                                                |   |                         |     |   |   |   |   |   |
| Changes      in operating assets and liabilities:                                                   |   |                         |     |   |   |   |   |   |
| Change      in accounts receivable                                                                  |   |                         | (394,500 | ) |   |   | 606,362 |   |
| Change      in inventories                                                                          |   |                         | 281,054  |   |   |   | (32,623 | ) |
| Change      in prepaid expenses and other current assets                                            |   |                         | 61,062   |   |   |   | 10,071 |   |
| Change      in accounts payable and accrued expenses                                                |   |                         | (94,881  | ) |   |   | 339,623 |   |
| Change      in deferred revenue                                                                     |   |                         | (116,703 | ) |   |   | 138,241 |   |
| Change      in royalties and commissions payable                                                    |   |                         | 19,534   |   |   |   | 84,260 |   |
| Net      cash (used) / provided by operating activities                                             |   |                         | (548,404 | ) |   |   | 276,722 |   |
|                                                                                                |   |                         |     |   |   |   |   |   |
| Investing      activities:                                                                          |   |                         |     |   |   |   |   |   |
| Purchases      of property and equipment                                                            |   |                         | (4,225   | ) |   |   | (21,170 | ) |
| Pre-publication      and royalty advances                                                           |   |                         | (78,772  | ) |   |   | (231,446 | ) |
| Net      cash (used) / provided by investing activities                                             |   |                         | (82,997  | ) |   |   | (252,616 | ) |
|                                                                                                |   |                         |     |   |   |   |   |   |
| Financing      activities:                                                                          |   |                         |     |   |   |   |   |   |
| Net      change in note payable, bank                                                               |   |                         | (294,000 | ) |   |   | (162,992 | ) |
| Repayments      of long-term debt                                                                   |   |                         | (231,241 | ) |   |   | — |   |
| Repayments      to related parties                                                                  |   |                         | (40,501  | ) |   |   | (44,760 | ) |
| Proceeds      from related parties                                                                  |   |                         | 826,230  |   |   |   | 210,629 |   |
| Proceeds      from third party                                                                      |   |                         | 421,839  |   |   |   | — |   |
| Net      cash provided/(used) by financing activities                                               |   |                         | 682,327  |   |   |   | 2,877 |   |
|                                                                                                |   |                         |     |   |   |   |   |   |
| Net      increase / (decrease) in cash and cash equivalents                                         |   |                         | 50,926   |   |   |   | 26,983 |   |
| Cash      and cash equivalents at beginning of period                                               |   |                         | 122,739  |   |   |   | 21,256 |   |
| Cash      and cash equivalents at end of period                                                     |   | $                            | 173,665  |   |   | $ | 48,239 |   |
|                                                                                                |   |                         |     |   |   |   |   |   |
| Cash      paid for interest                                                                         |   | $                            | 79,111   |   |   | $ | 54,859 |   |
| Cash      paid for income taxes                                                                     |   | $                            | —  |   |   | $ | — |   |

----

NOTES TO FINANCIAL STATEMENTS

| 1. | Description      of Business and Basis of Presentation and Going  Concern |
|----|---------------------------------------------------------------------------|

----

----

| 2. | Discontinued      Operations |
|----|------------------------------|

----

|                                                          |   | December      31, |      |   | March      31, |   |
|---------------------------------------------------------------|--------|-------------------|-----------|--------|----------------|--------|
|                                                          |   | 2009              |      |   | 2009           |   |
|                                                          |   | (unaudited)       |      |   | (audited)      |   |
| ASSETS                                                        |   |              |      |   |           |   |
| Current      Assets                                           |   |              |      |   |           |   |
| Assets      held for sale                                     |   |              |      |   |           |   |
| Cash      and cash equivalents                                |   | $                 | 173,665   |   |           | $      | 122,739 |   |
| Accounts      receivable, net                                 |   |              | 1,409,778 |   |           |   | 1,042,278 |   |
| Inventory,      net                                           |   |              | 1,368,422 |   |           |   | 1,649,476 |   |
| Prepaid      expenses and other current assets                |   |              | 111,765   |   |           |   | 172,827 |   |
|                                                          |   |              |      |   |           |   |   |   |
| Total      current assets                                     |   | $                 | 3,063,630 |   |           | $      | 2,987,320 |   |
|                                                          |   |              |      |   |           |   |   |   |
| Assets      held for sale                                     |   |              |      |   |           |   |   |   |
| Equipment,      net                                           |   | $                 | 70,941    |   |           | $      | 84,792 |   |
| Royalty      advances, net                                    |   |              | 161,945   |   |           |   | 264,820 |   |
| Prepublication      and other assets, net                     |   |              | 436,769   |   |           |   | 484,645 |   |
| Prepaid      acquisitions                                     |   |              | 327,586   |   |           |   | 386,908 |   |
|                                                          |   |              |      |   |           |   |   |   |
| Total      other assets                                       |   | $                 | 997,241   |   |           | $      | 1,221,165 |   |
|                                                          |   |              |      |   |           |   |   |   |
| Total      assets                                             |   | $                 | 4,060,871 |   |           | $      | 4,208,485 |   |
|                                                          |   |              |      |   |           |   |   |   |
| LIABILITIES                                                   |   |              |      |   |           |   |   |   |
| Current      liabilities                                      |   |              |      |   |           |   |   |   |
| Current      liabilities associated with assets held for sale |   |              |      |   |           |   |   |   |
| Notes      payable – Bank                               |   | $                 | 520,706   |   |           | $      | 1,045,947 |   |
| Notes      payable – Third party                        |   |              | 421,826   |   |           |   | 0 |   |
| Notes      payable – Related parties                    |   |              | 2,680,701 |   |           |   | 1,894,959 |   |
| Accounts      Payable and accrued expenses                    |   |              | 1,671,478 |   |           |   | 1,766,359 |   |
| Deferred      Revenue                                         |   |              | 163,528   |   |           |   | 280,231 |   |
| Royalties      and commissions payable                        |   |              | 573,594   |   |           |   | 554,060 |   |
|                                                          |   |              |      |   |           |   |   |   |
| Total      Current Liabilities                                |   | $                 | 6,031,833 |   |           | $      | 5,541,556 |   |

----

|                          |   | December      31, |      |   | March      31, |   |
|-------------------------------|--------|-------------------|-----------|--------|----------------|--------|
|                          |   | 2009              |      |   | 2009           |   |
|                          |   |              |      |   |           |   |
| Raw      Materials            |   | $                 | 32,941    |   |           | $      | 44,066 |   |
| Finished      Goods           |   |              | 1,600,472 |   |           |   | 1,870,401 |   |
| Reserve      for Obsolescence |   |              | (264,991  | )      |           |   | (264,991 | ) |
| Inventory                     |   | $                 | 1,368,422 |   |           | $      | 1,649,476 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | December      31, |      |   | March      31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009              |      |   | 2009           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              |      |   |           |   |
| A      revolving line of credit totaling $850,000. Interest is payable monthly      equal to the Wall Street Journal reported prime rate plus 2.0% with      interest rate not to be less than 7.5%. Borrowings are subject to a      borrowing base equal to 80% of eligible accounts receivable. The note is      also secured by all of the assets of the Company, a mortgage on the      Company’s premises and a personal guarantee of a principal shareholder      (William W. Burnham, Chairman of the Board). |   | $                 | 520,706   |   |           | $      | 814,706 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              |      |   |           |   |   |   |
| Various      notes payable, to principal shareholder (William W. Burnham, Chairman of      the Board) due on demand. Interest is payable monthly at LIBOR +      1.25%.                                                                                                                                                                                                                                                                                                                                                     |   |              | 2,680,701 |   |           |   | 1,894,959 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              |      |   |           |   |   |   |
| Note      payable, bank, payable in monthly installments of $2,713 including      interest at 7%. Balance due in February 2009. The note is secured by all      assets of the Company, a mortgage on the Company’s premises and a personal      guarantee of a principal shareholder, William W. Burnham.                                                                                                                                                                                                             |   |              | —   |   |           |   | 231,241 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              |      |   |           |   |   |   |
| Notes      payable, Third Party due May 31, 2010 or upon termination of the      Asset Purchase Agreement. Interest accrues monthly at 7.0% on any unpaid      principal and accrued interest.                                                                                                                                                                                                                                                                                                                    |   |              | 421,826   |   |           |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              |      |   |           |   |   |   |
|  Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                 | 3,623,233 |   |           | $      | 2,940,906 |   |

----

----

|            |   | Percentage      of net sales for three months ended December 31, |   | Balance      in Accounts Receivable as of |   |
|-----------------|--------|------------------------------------------------------------------|--------|-------------------------------------------|--------|
|            |   | 2009                                                             |   | 2008                                      |   | December      31, 2009 |   |
|            |   |                                                             |   |                                      |   |   |   |   |   |   |
| Customer      1 |   |                                                             | 11%    |                                      |   | 0% |   |   | 10% |   |

|            |   | Percentage      of Accounts Receivable (net) as of |   |
|-----------------|--------|----------------------------------------------------|--------|
|            |   | December      31, 2009                             |   |   | March      31, 2009 |   |
|            |   |                                               |   |   |   |   |
| Customer      1 |   |                                               | 20     | % |   |   | 2 | % |
| Customer      2 |   |                                               | 14     |   |   |   | 12 |   |
| Customer      3 |   |                                               | 13     |   |   |   | 33 |   |
| Customer      4 |   |                                               | 10     |   |   |   | 5 |   |
| Total           |   |                                               | 57     | % |   |   | 52 | % |

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|            |   | Percentage      of net sales for nine months ended December 31, |   |   | Balance      in Accounts Receivable as of |   |
|-----------------|--------|-----------------------------------------------------------------|--------|--------|-------------------------------------------|--------|
|            |   | 2009                                                            |   |   | 2008                                      |   |   | December      31, 2009 |   |
|            |   |                                                            |   |   |                                      |   |   |   |   |
| Customer      1 |   |                                                            | 16     | %      |                                      |   | 10 | % |   |   | 20 | % |
|            |   |                                                            |   |   |                                      |   |   |   |   |   |   |   |
| Total           |   |                                                            | 16     | %      |                                      |   | 10 | % |   |   | 20 | % |

Item 2.     MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF DISCONTINUEDOPERATIONS

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|                                |   | Percentage      of sales from discontinued operations by license and/or product line for      the quarters ended December 31, |   |
|-------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| License/Product      Line           |   | 2009                                                                                                                          |   |   | 2008 |   |
| Disney                              |   |                                                                                                                          | 50.2   | % |   |   | 27.7 | % |
| Music      For Little People (MFLP) |   |                                                                                                                          | 13.4   |   |   |   | 31.9 |   |
| Proprietary                         |   |                                                                                                                          | 9.3    |   |   |   | 16.1 |   |
| Smithsonian                         |   |                                                                                                                          | 3.9    |   |   |   | 22.3 |   |
| Sesame      Workshop                |   |                                                                                                                          | 20.6   |   |   |   | 1.5 |   |
| All      other                      |   |                                                                                                                          | 2.6    |   |   |   | 0.5 |   |
| Total                               |   |                                                                                                                          | 100.0  |   |   |   | 100.0 |   |

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|                                |   | Percentage      of sales from discontinued operations by license and/or product line for      the nine months ended December 31, |   |
|-------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|
| License                             |   | 2009                                                                                                                             |   |   | 2008 |   |
| Disney                              |   |                                                                                                                             | 48.4   | % |   |   | 44.9 | % |
| Music      For Little People (MFLP) |   |                                                                                                                             | 10.0   |   |   |   | 19.1 |   |
| Proprietary                         |   |                                                                                                                             | 7.2    |   |   |   | 11.1 |   |
| Smithsonian                         |   |                                                                                                                             | 19.1   |   |   |   | 22.0 |   |
| Sesame      Workshop                |   |                                                                                                                             | 15.0   |   |   |   | 2.2 |   |
| All      other                      |   |                                                                                                                             | 0.3    |   |   |   | 0.7 |   |
| Total                               |   |                                                                                                                             | 100.0  |   |   |   | 100.0 |   |

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|                                                  |   | For      the Period Ended December 31, 2009 |       |   |  For the Period Ended      March 31, 2009 |   |            | Variance |   |   | %      Change |   |
|-------------------------------------------------------|--------|---------------------------------------------|------------|--------|------------------------------------------------|--------|-----------------|----------|--------|--------|---------------|--------|
|                                                  |   |                                        |       |   |                                           |   |            |     |   |   |          |   |
| Net      assets (deficiency)                          |   | $                                           | (1,970,967 | )      |                                           | $      | (501,331        | )        |   | $      | (1,469,636    | )      |   | NMF |   |
|                                                  |   |                                        |       |   |                                           |   |            |     |   |   |          |   |   |   |   |
| Working      capital (deficiency)                     |   |                                        | (2,968,207 | )      |                                           |   | (1,689,672      | )        |   |   | (1,278,535    | )      |   |   | -75.7 | % |
|                                                  |   |                                        |       |   |                                           |   |            |     |   |   |          |   |   |   |   |   |
| Accounts      receivable, net                         |   |                                        | 1,409,778  |   |                                           |   | 1,534,000       |     |   |   | (124,222      | )      |   |   | -8.1 |   |
|                                                  |   |                                        |       |   |                                           |   |            |     |   |   |          |   |   |   |   |   |
| Accounts      payable and  accrued expenses |   |                                        | 1,658,481  |   |                                           |   |  1,765,002 |     |   |   | (106,521      | )      |   |   | -6.0 |   |
|                                                  |   |                                        |       |   |                                           |   |            |     |   |   |          |   |   |   |   |   |
| Royalties      and commissions payable                |   |                                        | 573,594    |   |                                           |   | 436,658         |     |   |   | (136,936      | )      |   |   | 31.4 |   |

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Item 3.    Quantitative and QualitativeDisclosures about Market Risk

Item 4.    Controls and Procedures

|   | (i)    | The      Company does not have adequate office and financial staffing in place to      effectively control the level of transaction activity and consistently      address the complex accounting matters that arise. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                  |
|   | (ii)   | A      principal shareholder and Director of the Company who is involved in      certain functions of the daily operations of the Company, could in theory      override normal operating procedures.                 |
|   |   |                                                                                                                                                                                                                  |
|   | (iii)  | The      Company currently does not have an Audit  Committee.                                                                                                                                                         |

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PARTII OTHER INFORMATION

Item 1.     LegalProceedings

Item 2.     Changes inSecurities

Item 3.     Defaults upon SeniorSecurities

Item 4.     Submission of Mattersto a Vote of Security Holders

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Item 5.     OtherInformation

Item 6.    Exhibits.

| (a)    |   | Exhibits                                                                                                                                                                                                                                    |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                        |
| 3a.    |   | Certificate      of Incorporation (incorporated by reference to the Company’s registration      statement on Form S-18 (file number 33-14379B)).                                                                                      |
|   |   |                                                                                                                                                                                                                                        |
| 3b.    |   | Certificate      of Amendment of Certificate of Incorporation (incorporated by reference to      the Company’s registration statement on Form S-18 (file number      33-14379B)).                                                     |
|   |   |                                                                                                                                                                                                                                        |
| 3c.    |   | By-laws      of Company (incorporated by reference to the Company’s registration      statement on Form S-18 (file number 33-14379B)).                                                                                                |
|   |   |                                                                                                                                                                                                                                        |
| 3d.    |   | Certificate      of Incorporation of Norwest Manufacturing Company (incorporated by      reference to the Company’s registration statement on Form S-18 (file      number 33-14379B)).                                                |
|   |   |                                                                                                                                                                                                                                        |
| 3e.    |   | Certificate      Amending Certificate of Incorporation of Norwest Manufacturing Company      dated December 5, 1979 (incorporated by reference to the Company’s      registration statement on Form S-18 (file number    33-14379B)). |
|   |   |                                                                                                                                                                                                                                        |
| 3f.    |   | Certificate      Amending Certificate of Incorporation of Trudy Toys Company, Inc. dated      March 27, 1984 (incorporated by reference to the Company’s registration      statement on Form S-18 (file number 33-14379B)).           |
|   |   |                                                                                                                                                                                                                                        |
| 31.1   |   | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                               |
|   |   |                                                                                                                                                                                                                                        |
| 31.2   |   | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                               |
|   |   |                                                                                                                                                                                                                                        |
| 32.1   |   | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                               |
|   |   |                                                                                                                                                                                                                                        |
| 32.2   |   | Certification      of Chief Financial 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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SIGNATURES

|                     | TRUDY      CORPORATION                  |
|--------------------------|-----------------------------------------|
|                     | (REGISTRANT)                            |
|                     |                                    |
| Date:      March 5, 2010 | By:                                     | /s/      Ashley C. Andersen Zantop |
|                     | Ashley      C. Andersen Zantop,         |
|                     | President,      Chief Executive Officer |

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