SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                   FORM 10-QSB



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




                         For Quarter Ended June 30, 2000

                           Commission File No. 0-16056



                                TRUDY CORPORATION
                                 353 Main Avenue
                              Norwalk, Conn. 06851



                      Incorporated in the State of DELAWARE
                      Federal Identification No. 06-1007765


                            Telephone: (203) 846-2274


Trudy Corporation has filed all reports required to be filed by section 13 or 15
(d) of the  Securities  Act of 1934 during the  preceding  twelve months and has
been subject to such filing requirements for the past year.

                              SHARES OUTSTANDING AT
                                  June 30, 2000
               Common Stock, $.0001 par value: 350,187,249 shares

<PAGE>

INDEX                                                                PAGE NUMBER
-----                                                                -----------
                  PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets - June 30, 2000 (unaudited) and March 31, 2000                  3

Statements of Operations (unaudited) for the three months ended
                  June 30, 2000 and June 30, 1999                              4

Statements of Cash Flows (unaudited) for the three months ended
                  June 30, 2000 and June 30, 1999                              5

Statement of Shareholders' Deficit from April 1, 2000 through
                  June 30, 2000                                                6

Notes to Financial Statements (unaudited)                                      7

Item 2. Management's Discussion and Analysis                                  10


                  PART II.  OTHER INFORMATION

Item 1. Legal Proceedings                                                     12

Item 2. Changes in Securities                                                 12

Item 3. Defaults Upon Senior Securities                                       12

Item 4. Submission of Matters to a Vote of Security Holders                   12

Item 5. Other Information                                                     12

Item 6. Exhibits and Reports on Form 8-K                                      12



                                       2
<PAGE>
<TABLE>
<CAPTION>

                                Trudy Corporation

                                 Balance Sheets

                                                           June 30,         March 31,
                                                             2000             2000
                                                       --------------   --------------
                                                         (Unaudited)
Assets
Current assets:
<S>                                                      <C>             <C>
Cash and cash equivalents                                $     24,878    $     20,638
Accounts receivable, net of allowance for
 doubtful accounts of *$16,959*                               656,971         533,759
and $30,000 at March 31 and June 30, 2000
 respectively
Inventories, net                                            1,028,706       1,213,813
Prepaid expenses and other current assets                      38,260          10,920
                                                         ------------    ------------
Total current assets                                        1,748,815       1,779,130

Equipment, net                                                 87,222          93,043
Pre-publication costs and royalty advances                    205,479         204,530
                                                         ------------    ------------
Total assets                                             $  2,041,516    $  2,076,703
                                                         ============    ============

Liabilities and shareholders' equity (deficit)
Current liabilities:

       Accounts payable and accrued expenses                  907,592         918,431
       Advances from Futech Interactive Products, Inc.        541,143         541,143
       Notes payable to shareholder - officer               1,671,323       1,356,322
       Notes payable - related party                          230,000         230,000
                                                         ------------    ------------
Total current liabilities                                   3,350,058       3,045,896

Notes payable to related parties                              186,200         183,305

Shareholders' equity (deficit):
       Common stock: $.0001 par value:
            Authorized shares - 850,000,000
            Issued and outstanding shares -
             350,187,249 at March 31 and June 30, 2000         35,019          35,019
       Additional paid-in capital                           4,073,772       4,073,772
       Accumulated deficit                                 (5,603,533)     (5,261,289)
                                                         ------------    ------------
Total shareholders' equity (deficit)                       (1,494,742)     (1,152,498)
                                                         ------------    ------------
Total liabilities and shareholders' equity (deficit)     $  2,041,516    $  2,076,703
                                                         ============    ============
</TABLE>

See  accompanying   summary  of  accounting  policies  and  notes  to  financial
statements.

                                       3

<PAGE>

                                Trudy Corporation

                            Statements of Operations

                                               Three Month Period Ended June 30,
                                             -----------------------------------
                                                      2000                1999
                                             ---------------   -----------------
                                                   (Unaudited)      (Unaudited)

Net sales                                        $     291,335    $     422,292
         Cost of sales                                 227,847          295,984
         Inventory writedown                           152,000               --
                                                 -------------    -------------
 Gross profit (loss)                                   (88,512)         126,308

 Operating expenses:
         Selling, general and administrative           218,223          372,172
         Depreciation and amortization                   5,821            8,019
                                                 -------------    -------------
 Income (loss) from operations                        (312,556)        (253,883)
 Other income (expense):
         Interest expense                              (40,388)         (29,413)
         Other income                                   10,700           58,369
                                                 -------------    -------------
 Net loss before income taxes                         (342,244)        (224,928)
 Income tax benefit (provision)                             --               --
                                                 -------------    -------------
                                                 -------------    -------------
 Net loss                                        $    (342,244)   $    (224,928)
                                                 =============    =============

 Net loss per share:
                                                 -------------    -------------
 Basic and diluted                               $       (0.00)   $       (0.00)
                                                 =============    =============

 Weighted average shares used in computation:

                                                 -------------    -------------
 Basic and diluted                                 350,187,249      331,222,249
                                                 =============    =============



See accompanying summary of accounting policies and notes to financial
statements.

                                       4
<PAGE>

                                Trudy Corporation

                            Statements of Cash Flows

                                               Three Month Period Ended June 30,

                                               ---------------------------------
                                                          2000        1999
                                                  --------------  ------------
                                                      (Unaudited)  (Unaudited)
OPERATING ACTIVITIES

Net loss                                                (342,244)   ($224,928)
Adjustments to reconcile net income (loss)
  to net cash used in operating activities:
Depreciation                                               5,821        8,019
Amortization of pre-publication costs                     22,500       32,700
Loss on write down of pre-publication costs
 and royalty advances                                         --           --
Provision for losses on accounts receivable               13,023        3,500
Provision for slow moving inventory                      152,000           --
Changes in operating assets and liabilities:
Accounts receivable                                     (136,235)      72,993
Inventories                                               33,107       31,366
Prepaid expenses and other current assets                (27,340)    (102,516)
Accounts payable and accrued expenses                    (10,839)     226,309
                                                       ---------    ---------
Net cash (used in)/provided by operating
 activities                                             (290,207)      47,443

INVESTING ACTIVITIES

Purchases of property and equipment                           --       (1,770)
Pre-publication and royalty advances, net                (23,449)     (62,211)
                                                       ---------    ---------
Net cash used in investing activities                    (23,449)     (63,981)

FINANCING ACTIVITIES

Net proceeds on short-term borrowings                         --      140,000
Proceeds from issuance of  loans - long-term               2,895           --
Repayment of loans - long-term                                --      (84,481)
Proceeds from loans by shareholder - officer             315,001           --
Advances from Futech Interactive Products, Inc.               --       10,000
                                                       ---------    ---------
Net cash provided by financing activities                317,896       65,519
                                                       ---------    ---------
Net increase (decrease) in cash and cash equivalents       4,240       48,981
Cash and cash equivalents at beginning of period          20,638          624
                                                       ---------    ---------
Cash and cash equivalents at end of period             $  24,878    $  49,605
                                                       =========    =========


See accompanying summary of accounting policies and notes to financial
statements.

                                       5
<PAGE>
<TABLE>
<CAPTION>

                                Trudy Corporation

                       Statement of Shareholders' Deficit



                                  Common Stock         Additional                      Total
                           --------------------------    Paid-In      Accumulated  Shareholders'
                              Shares        Amount       Capital        Deficit       Deficit
                           -------------  -----------  ------------  ------------   ------------
<S>                         <C>           <C>           <C>           <C>            <C>
Balance at March 31, 2000   350,187,249   $    35,019   $ 4,073,772   $(5,261,289)   $(1,152,498)

Net loss (unaudited)                 --            --            --      (342,244)   $  (342,244)

                            -----------   -----------   -----------   -----------    -----------
Balance at June 30, 2000    350,187,249        35,019     4,073,772    (5,603,533)    (1,494,742)
                            ===========   ===========   ===========   ===========    ===========
</TABLE>


See accompanying summary of accounting policies and notes to financial
statements.

                                       6
<PAGE>

                                TRUDY CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)



1.        Description of Business and Basis of Presentation

Trudy  Corporation  (Company)  designs,  manufactures  and markets plush stuffed
animals  and  publishes  children's  books and  audiocassettes  for sale to both
retail and wholesale  customers,  both  domestically  and  internationally.  All
Company product is sold under the trade name of Soundprints.

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles and with the instructions to Form
10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of
the  information  and  footnotes  required  by  generally  accepted   accounting
principles for complete financial statements. In the opinion of management,  all
adjustments  (including normal recurring  accruals)  considered  necessary for a
fair  presentation  have been included.  Operating  results for the three months
ended June 30, 2000 are not  necessarily  indicative  of the results that may be
expected for the year ending March 31, 2001. For further  information,  refer to
the financial  statements and footnotes thereto included in the Company's annual
report on Form 10-KSB for the year ended March 31, 2000.

The Company has incurred  significant  operating  losses in the past three years
and has a deficiency in working capital, and a deficiency in net assets, and has
continued to  experience a significant  decline in revenues  from  $4,977,599 in
1998 to $3,390,884 in 1999 and  $2,476,252 in 2000.  The Company has been funded
by a principal shareholder - officer and another shareholder and had been funded
in 2000 by Futech Interactive Products, Inc.

The Company's  ultimate ability to continue as a going concern is dependent upon
the market  acceptance  of its  products,  an increase in revenues  coupled with
continuing  license  agreements  and positive  cash flow.  The Company will also
require additional financial sources to provide near term operating cash to move
toward  profitability.  The Company believes that improvement in sales and, or a
future merger  partner and its ability to borrow money,  albeit maybe not at the
past levels,  from its  shareholders  will be sufficient to allow the Company to
continue in operation.

                                       7
<PAGE>
2. Inventories

Inventories consist of the following:

                                                                        June 30,
                                                                         2000
                                                              ------------------

Raw materials                                                         $   53,501
Finished goods                                                         1,632,205
                                                                      ----------
                                                                       1,685,706

Reserve for slow-moving inventory                                        657,000
                                                                      ----------
                                                                      $1,028,706
                                                                      ==========

The changes in the Company's reserve for slow-moving inventory is as follows:

Balance at April 1, 2000                                              $ 505,000
Reduction in reserve                                                     (5,059)
Additions                                                               146,941
                                                                      ---------
Balance at June 30, 2000                                              $ 657,000
                                                                      =========


3.   Transactions and Balances with Futech Interactive Products Inc.

(a)  The Company  was a party to a global  merger  agreement  dated June 4, 1999
     with  Futech  Interactive  Products,  Inc.  ("Futech")  and  certain  other
     companies  and  shareholders  thereof.  In  addition  to  other  provisions
     included  in the terms of the  merger,  Futech  agreed to  provide  working
     capital  advances to the Company,  additional  amounts  necessary to assure
     that the Company was not in default under any of its loan  agreements,  and
     to  reimburse  the Company for  certain of its legal and  accounting  fees.
     However,  management  had no  assurances  that  Futech  had  the  financial
     resources  to honor this  agreement.  Futech also  agreed to repay  certain
     loans and interest payable to the Company's  president and his family.  The
     merger was subject to closing conditions,  including  shareholder approval.
     The Company was  depending  upon  additional  financial  resources  that it
     expected to receive from Futech.

     In a letter  agreement  dated March 3, 1999 certain terms,  detailed below,
     subsequently  became an integral part of the  aforementioned  Agreement and
     Plan of Merger  between Futech and the Company.  These terms  explained the
     timetable  for  financing  the  merger  and  Futech's  assistance  with the
     Company's  working  capital needs in the event of a delay in the closing of
     the merger:

         o     The proxy solicitation materials and registration statement
               prepared for use in connection with Trudy's meeting of
               shareholders will be filed as promptly as practical with the SEC,
               which filing will not be later than April 13, 1999. Futech would
               retain and compensate counsel of its own choosing to prepare,
               these documents subject to the review of the Company's (Trudy)
               counsel, compensation for

                                       8
<PAGE>

               which would be pre-agreed.

         o     If the effective date of the merger had not occurred by June 1,
               1999, Futech would assist in providing the working capital needs
               of Trudy, if needed, to maintain sales momentum until the closing
               and to assure that it is not in default under any of its loan
               agreements including its borrowings from First Union.

Subsequently,  Trudy  replaced the First Union loan with another bank.  Such new
bank loan was replaced by the shareholder-officer on February 8, 2000.

         o     The Global merger agreement was terminated, effective December 1,
               1999.

(b)  In connection with the above and other transactions with Futech, the
     following balances are reflected as of June 30, 2000.

     Included in accounts receivable:

          Trade receivables from sales of inventory to Futech at
            reduced prices                                              $268,953
          Reimbursable expenses related to merger                        235,219
                                                                        --------
              Total included in accounts receivable                      504,172

          Included in accounts payable for inventory purchases
            from Futech                                                   27,069
          Advances from Futech Interactive Products, Inc.                541,143
                                                                        --------
             Total obligations                                           568,212
                                                                        ========
                                                                        --------
                Net                                                     $ 64,040
                                                                        ========


(c)  On June 22, 2000, Futech filed for protection under chapter 11 of the
     Bankruptcy Code.

4.   Engagement of Financial Advisors

As previously  announced,  the Company retained  Financial  Technology  Research
Corporation   ("FINTEK")  to  perform  certain  financial  services,   including
assisting with the development of a business plan, designing and implementing an
investor  relations  program,  and  improving  the  Company's  access to capital
markets. The Company agreed to grant to FINTEK upon the signing of the agreement
5,252,809  shares,  or 1.5%,  of the  Company's  outstanding  Common  Stock  and
warrants to purchase additional shares of Common Stock at subsequent dates. This
agreement was  subsequently  voided  without any transfer of shares or warrants.
Also,  as  previously  report,  on June 19,  2000,  the Company paid $10,000 and
agreed with a third party to provide  introductions to investment  bankers,  and
other third party  professionals  for the purpose of permitting  Trudy to assess
whether it wishes to enter into a long-term  relationship  with the third party.
This relationship is continuing without further obligation to the Company.


                                       9
<PAGE>

5.   Related Party Transaction

Since April 1, 2000 William W. Burnham, the Chairman and Chief Executive Officer
of the Company,  has loaned the Company  $315,000 to meet  immediate cash needs.
The notes bear an interest rate of 8% and are due on October 1, 2000.

Item 2.                    MANAGEMENT'S DISCUSSION AND ANALYSIS

RESULTS OF OPERATIONS

Trudy  Corporation's  revenues  of  $291,335  for the first  three  months  were
$130,957  below  sales for the same  period  last year.  From June 1999  through
mid-May  2000,  the Company  sold its products to Futech  Interactive  Products,
Inc., which acted as the Company's distributor for the majority of its sales. As
previously  reported,  a merger between Futech and the Company was not completed
in late 1999 and a  subsequent  agreement  with  Janex  International,  Inc.,  a
company  related to Futech,  was also not consummated in April 2000. The Company
regained control of its sales and  distribution  function in May and has resumed
shipping its product to its traditional customer base since then.

A net loss of $342,244 for the first three months of the year compares to a loss
of $224,928  for the same  period  last year.  At the gross  margin  level,  the
Company experienced a loss of $88,512 compared with a profit of $126,308 for the
same  period  last year.  The  Company  recorded a  $152,000  write-down  of its
inventory  for the quarter ended June 30, 2000 versus no write down of inventory
for the  quarter  ended June 30,  1999.  However,  at March 31, 2000 the Company
provided an additional  $250,000  reserve for slow moving items. As a percentage
of sales, cost of sales, net of the inventory  writedown,  increased to 78% from
70% in the same period last year.  The increase  resulted from certain labor and
product  development  costs not being  reduced in  proportion  to the decline in
sales.

Selling,  general,  and  administrative  expenses of $218,223  were reduced from
$372,172 last year, as the Company has taken measures to reduce spending in such
areas catalog expense,  salaries, and other discretionary  spending.  Commission
and royalty  expenses  also were lower as a result of lower  revenues.  Interest
expense increased from $29,413 to $40,388,  as the Company's  borrowing from the
Burnham Family has increased to cover operating  costs.  Other income  decreased
from  $58,369  to $10,700  due to lower  royalty  income  from the  granting  of
sub-rights.

LIQUIDITY AND CAPITAL RESOURCES

         The Company continues to experience a severe working capital deficiency
and negative cash flow. The Company has had limited receipts from sale of its
product and is unable to fully meet its financial obligations as they become
due. As of July 31, 2000, the Company's


                                       10
<PAGE>

indebtedness to its vendors was approximately $635,000. The Company has been
funded by a principal shareholder-officer.

         The Company's ultimate ability to continue as a going concern is
dependent upon the market acceptance of its products, an increase in revenues
coupled with continuing license agreements and positive cash flow. The Company
will also require additional financial sources to provide near term operating
cash to move toward profitability. The Company believes that improvement in
sales, a future merger partner, and its ability to borrow money, albeit not at
past levels, from its shareholders will be sufficient to allow the Company to
continue in operation.

FORWARD-LOOKING STATEMENTS

We have made  forward-looking  statements  in this  report that are subject to a
number of risks and uncertainties, including without limitation, those described
in our Annual  Report on Form 10-KSB for the year ended March 31, 2000 and other
risks and uncertainties indicated from time to time in our filings with the SEC.
These forward-looking statements are made pursuant to the safe harbor provisions
of  the  Private  Securities  Litigation  Reform  Act of  1995.  Forward-looking
statements include the information concerning possible or assumed future results
of  operations.   Also,  when  we  use  words  such  as  "believes,"  "expects,"
"anticipates" or similar expressions,  we are making forward-looking statements.
Readers should understand that the following  important factors,  in addition to
those discussed in the referenced SEC filings, could affect our future financial
results,  and could  cause  actual  results  to  differ  materially  from  those
expressed in our forward-looking statements:

o   the identification of a merger partner;
o   the implementation of the Company's strategy;
o   the availability of additional capital;
o   variations in stock prices and interest rates; and
o   fluctuations in quarterly operating results;

We make no commitment to disclose any revisions to forward-looking statements,
or any facts,  events or circumstances  after the date hereof that may bear upon
forward-looking statements.


                                       11
<PAGE>



         PART II  OTHER INFORMATION
         -------


Item 1.           Legal Proceedings

The Company is not a party to any material legal proceedings.

Item 2.           Changes in Securities

None

Item 3.           Defaults Upon Senior Securities

None

Item 4.           Submission of Matters to a Vote of Security Holders

None

Item 5.           Other Information

None

Item 6.           Exhibits and Reports on Form 8-K.

(a)      Exhibits -

         27.  Financial Data Schedule (electronic filing only)

(b)      Reports on Form 8-K

         None


                                       12
<PAGE>
                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                        TRUDY CORPORATION
                                        (REGISTRANT)


Date: August 10, 2000          By: /s/  WILLIAM W. BURNHAM
      ---------------              ------------------------------------
                                        William W. Burnham,
                                        Chairman and Chief Executive Officer

Date: August 10, 2000          By:  /s/ WILLIAM T. CARNEY
      ---------------               -------------------------------------
                                        William T. Carney
                                        Chief Financial Officer and Secretary
                                        (Chief Accounting Officer)