<PAGE>

                                   FORM 10-QSB
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20429


(Mark One)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 2006

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 0-27227
                       -------

                          ALLERGY RESEARCH GROUP, INC.
                          ----------------------------
             (Exact name of registrant as specified in its charter)


                 Florida                              13-3940486
          ---------------------                 ---------------------
     (State or other jurisdiction of                (IRS Employer
      incorporation or organization)              Identification No.)


                 2300 North Loop Road, Alameda, California 94502
                 -----------------------------------------------
                    (Address of principal executive offices)


                   (Issuer's telephone number) (800) 545-9960.
                                               ---------------

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

Checkmark whether the issuer (1) has filed all reports required to be filed by
Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.  Yes [X]  No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 14,521,605 shares of Issuer's voting
common stock were outstanding on May 8, 2006.




<PAGE>


                          ALLERGY RESEARCH GROUP, INC.
                            INDEX TO QUARTERLY REPORT
                                 ON FORM 10-QSB
                                 MARCH 31, 2006
================================================================================

PART I. FINANCIAL INFORMATION                                               PAGE

ITEM 1. Condensed Consolidated Financial Statements (Unaudited):
           Consolidated Balance Sheets........................................3
           Consolidated Income Statements.....................................4
           Consolidated Statements of Cash Flows..............................5
           Notes to Condensed Consolidated Financial Statements...............6

ITEM 2. Management's Discussion and Analysis.................................10

ITEM 3. Controls and Procedures..............................................17

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings....................................................18
ITEM 2. Changes in Securities and Use of Proceeds............................18
ITEM 3. Defaults Upon Senior Securities......................................18
ITEM 4. Submission of Matters to a Vote of Security Holders..................18
ITEM 5. Other Information....................................................18
ITEM 6. Exhibits.............................................................18

SIGNATURE....................................................................19


                                       2


<PAGE>
<TABLE>

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

In the opinion of management, the accompanying unaudited financial statements
included in this Form 10-QSB reflect all adjustments (consisting only of normal
recurring accruals) necessary for a fair presentation of the results of
operations for the periods presented. The results of operations for the periods
presented are not necessarily indicative of the results to be expected for the
full year.

                                ALLERGY RESEARCH GROUP, INC.
                                 CONSOLIDATED BALANCE SHEETS


                                                                 March 31,     December 31,
                                                                   2006           2005
                                                                (Unaudited)     (Audited)
                                                                -----------    -----------
<S>                                                             <C>            <C>
ASSETS
Current Assets
 Cash and Cash Equivalents                                      $ 2,708,676    $ 2,487,824
 Accounts Receivable                                              1,186,462        954,943
 Inventories                                                      2,751,149      2,573,612
 Prepaid Income Taxes                                                58,693        107,193
 Prepaid Expenses and Other Current Assets                          316,061        169,479
                                                                -----------    -----------
Total Current Assets                                              7,021,041      6,293,051
                                                                -----------    -----------

Property and Equipment, Net                                         545,085        562,928
                                                                -----------    -----------

 Intangible Assets, Net                                              13,180         13,180
                                                                -----------    -----------

Total Assets                                                    $ 7,579,306    $ 6,869,159
                                                                ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 Accounts Payable                                               $   374,379    $   274,642
 Accrued Expenses (Note 4)                                          351,763        207,824
 Deferred Tax Liability                                              23,554         18,704
 Income Taxes Payable                                               170,200         34,262
                                                                -----------    -----------
Total Current Liabilities                                           919,896        535,432
                                                                -----------    -----------

Commitments and Contingencies (Notes 5 & 9)

Stockholders' Equity
 Preferred Stock, $.25 Par Value, Authorized 1,000,000
    Shares, Issued and Outstanding: None                               None           None
 Common Stock, $.001 Par Value, Authorized 100,000,000 Shares
   Issued: 15,105,355, Outstanding: 14,521,605                       15,105         15,105
 Additional Paid In Capital                                       1,150,641      1,150,641
 Retained Earnings                                                5,772,201      5,446,518
 Less: Treasury Stock, at cost (583,750 shares)                    (278,537)      (278,537)
                                                                -----------    -----------
Total Stockholders' Equity                                        6,659,410      6,333,727
                                                                -----------    -----------
Total Liabilities and Stockholders' Equity                      $ 7,579,306    $ 6,869,159
                                                                ===========    ===========


                 See Notes to Condensed Consolidated Financial Statements.


                                             3


<PAGE>


                          ALLERGY RESEARCH GROUP, INC.
                         CONSOLIDATED INCOME STATEMENTS
                                   (UNAUDITED)


                                                          Three Months Ended
                                                               March 31,
                                                          2006          2005
                                                       ----------   ----------

Revenues                                               $4,265,527   $4,111,173
Cost of Sales                                           2,630,510    2,423,385
                                                       ----------   ----------
Gross Profit                                            1,635,017    1,687,788
                                                       ----------   ----------

Operating Expenses
      Selling, General and Administrative               1,039,223    1,109,021
      Research and Development                             72,774       72,814
                                                       ----------   ----------
Operating Expenses                                      1,111,997    1,181,835
                                                       ----------   ----------
Earnings from Operations                                  523,020      505,953
                                                       ----------   ----------
Other Income
      Interest Income                                      26,213        5,780
                                                       ----------   ----------
Net Earnings Before Tax                                   549,233      511,733
Provision for Income Taxes                                223,550      192,200
                                                       ----------   ----------
Net Earnings Available to Common Stockholders          $  325,683   $  319,533
                                                       ==========   ==========
Basic and Diluted Earnings Per Common Share (Note 2)   $     0.02   $     0.02
                                                       ==========   ==========


           See Notes to Condensed Consolidated Financial Statements.


                                       4


<PAGE>


                                      ALLERGY RESEARCH GROUP, INC.
                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                               (UNAUDITED)

                                                                                  Three Months Ended
                                                                                       March 31,
                                                                                 2006           2005
                                                                             -----------    -----------
Cash  Flows From Operating Activities
       Net Earnings                                                          $   325,683    $   319,533
                                                                             -----------    -----------
       Adjustments to Reconcile Net Earnings to Net Cash Provided by
        Operating Activities
           Depreciation and Amortization                                          17,843         22,214
           Change in Deferred Taxes                                                4,850             --
       Changes in Assets and Liabilities
           (Increase) Decrease in Accounts Receivable                           (231,519)      (286,931)
           (Increase) Decrease in Inventory                                     (177,537)       189,268
           (Increase) Decrease in Prepaid Expenses and Other Assets              (98,082)       (47,340)
           Increase (Decrease) in Accounts Payable and Accrued Liabilities       243,676        186,097
           Increase (Decrease) in Income Taxes Payable                           135,938         44,540
                                                                             -----------    -----------
Net Cash Flows Provided By Operating Activities                                  220,852        427,381
                                                                             -----------    -----------
Cash Flows From Investing Activities
       Acquisition of Property and Equipment                                          --       (512,505)
       Repayments From Officers                                                       --          6,485
                                                                             -----------    -----------
Net Cash Flows Used In Investing Activities                                           --       (506,020)
                                                                             -----------    -----------
Cash Flows From Financing Activities                                                  --             --

Increase (Decrease) in Cash and Cash Equivalents                                 220,852        (78,639)
Cash and Cash Equivalents, Beginning of Period                                 2,487,824      2,145,638
                                                                             -----------    -----------
Cash and Cash Equivalents, End of Period                                     $ 2,708,676    $ 2,066,999
                                                                             ===========    ===========


                        See Notes to Condensed Consolidated Financial Statements.

</TABLE>

                                                    5


<PAGE>


                          ALLERGY RESEARCH GROUP, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2006
                                   (UNAUDITED)


Note 1 - Statement of Information Furnished
-------------------------------------------

         The accompanying unaudited Consolidated Financial Statements of Allergy
         Research Group, Inc. ("the Company") have been prepared in accordance
         with generally accepted accounting principles for interim financial
         information and the instructions to Form 10-QSB. Accordingly, they do
         not include all the information and footnotes required by generally
         accepted accounting principles for complete financial statements. In
         the opinion of management, all adjustments (which include only normal
         recurring adjustments) necessary to present fairly the financial
         position, results of operations and cash flows for all periods
         presented have been made. Preparing financial statements requires
         management to make estimates and assumptions that affect the reported
         amounts of assets, liabilities, revenue and expenses. Examples include
         provisions for returns, accounting for income taxes, bad debts, length
         of product life cycles, and property, plant and equipment lives for
         depreciation purposes. Actual results may differ from these estimates.
         The results of operations for the period ended March 31, 2006 are not
         necessarily indicative of the operating results that may be expected
         for the entire year ending December 31, 2006. These financial
         statements should be read in conjunction with the Management's
         Discussion and Analysis included in the Company's financial statements
         and accompanying notes thereto as of and for the year ended December
         31, 2005, filed with the Company's Annual Report on Form 10-KSB.

Note 2 - Recent Accounting Pronouncements
-----------------------------------------

         In December 2004, the FASB issued SFAS No. 123 (Revised 2004),
         "Share-Based Payment" ("SFAS No. 123R"). SFAS No. 123R is a revision of
         FASB SFAS No. 123, "Accounting for Stock-Based Compensation" and
         supersedes APB Opinion No. 25, "Accounting for Stock Issued to
         Employees." SFAS No.123R focuses primarily on accounting for
         transactions in which an entity obtains employee services in
         share-based transactions. SFAS No. 123R requires a public entity to
         measure the cost of employee services received in exchange for an award
         of equity instruments based on the grant-date fair value of the award
         (with limited exceptions). That cost will be recognized over the period
         during which an employee is required to provide service in exchange for
         the award. The provisions of SFAS No. 123R are effective for public
         companies that file as small business issuers as of the beginning of
         the annual reporting period that begins after December 15, 2005. We
         have previously issued employee stock options that are fully vested and
         outstanding for which no expense was recognized.

         In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain
         Hybrid Financial Instruments - an amendment of FASB Statements No. 133
         and 140." SFAS 155 resolves issues addressed in Statement 133
         Implementation Issue No. D1, "Application of Statement 133 to
         Beneficial Interests in Securitized Financial Assets." SFAS is
         effective for all financial instruments acquired, issued, or subject to
         a remeasurement (new basis) event occurring after the beginning of an
         entity's first fiscal year that begins after September 15, 2006. The
         adoption of SFAS No. 155 does not have any impact on the Company's
         financial statements.

         In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing
         of Financial Assets - an amendment of FASB Statement No. 140." SFAS No.
         156 addresses the accounting for separately recognized servicing assets
         and servicing liabilities. SFAS 156 is effective as of the beginning of
         an entity's first fiscal year that begins after September 15, 2006. The
         adoption of SFAS No. 156 does not have any impact on the Company's
         financial statements.

Note 3 - Earnings Per Share
---------------------------

         Basic earnings per share ("EPS") is based on the weighted average
         number of common shares outstanding. Diluted EPS is based on the
         weighted average number of common shares outstanding and dilutive
         common stock equivalents.


                                       6


<PAGE>
<TABLE>

         The computation of basic and diluted earnings per share is as follows:

                                                                    Three Months  Three Months
                                                                        Ended        Ended
                                                                       3/31/06      3/31/05
                                                                    -----------   -----------
         <S>                                                        <C>           <C>
         Numerator-Net Earnings Available to Common Stockholders    $   325,683   $   319,533
                                                                    ===========   ===========
         Denominator:

         Weighted average shares used in computing basic EPS         14,521,605    14,516,605
         Net effect of dilutive common shares                           184,383       197,687
                                                                    -----------   -----------
         Weighted average shares used in computing diluted EPS       14,705,988    14,714,292

         Basic Earnings Per Share                                   $      0.02   $      0.02
                                                                    ===========   ===========
         Diluted Earnings Per Share                                 $      0.02   $      0.02
                                                                    ===========   ===========

</TABLE>

Note 4 - Accrued Expenses
-------------------------

         -----------------------------------------------------------------
         Accrued expenses consist of the following:
         -----------------------------------------------------------------
         Operating expenses                                        137,191
         Vacation and bonus                                        146,000
         Payroll                                                    60,545
         Sales tax                                                   8,027
                                                                ==========
                                                                $  351,763
                                                                ==========

Note 5 - Line of Credit
-----------------------

         The Company has a Merrill Lynch Working Capital Management Account
         (WCMA) which provides for a line of credit up to $1,500,000 bearing
         interest at the London Interbank Offered Rate (LIBOR) plus 2.75%, due
         monthly. The LIBOR plus 2.75% at March 31, 2006 was 7.57%. The note is
         secured by substantially all of the assets of the Company and is
         personally guaranteed by the CEO of the Company. The WCMA account
         immediately pays down the line of credit when deposits are received.
         When checks are issued, the line of credit is utilized if no cash is
         available. If the line of credit has a zero balance, the WCMA account
         pays interest on deposits at Merrill Lynch's money market rate, which
         as of March 31, 2006 was 3.96%. The entire line was available for use
         as of March 31, 2006.

Note 6 - Concentration of Credit Risk
-------------------------------------

         The Company is subject to a wide variety of risks in the ordinary
         course of its business as follows:

                  SALES. Approximately 11% of the Company's total sales in 2006
         and 2005 were attributable to the same single distributor. In the event
         the Company were to lose that account, management anticipates that it
         would be able to convert the business to sales directly to the
         customers of that distributor. As converted sales would be at a higher
         margin, management does not believe the loss of the account would have
         a material negative impact on sales. However, no assurance can be given
         that, if the Company were to lose this distributor, all or any of the
         customers would transfer directly to the Company or that current sales
         from this group would be maintained.

                  PURCHASES. The Company purchases raw materials and uses
         outside vendors for the manufacture of its products. For the three
         months ended March 31, 2006, the Company had a concentration of
         approximately 29% of manufacturing with two separate vendors, who
         individually account for more than ten percent of our purchases. For
         the three months ended March 31, 2005, the Company had a concentration
         of approximately 63% of manufacturing with five separate vendors. Three
         of these vendors individually accounted for more than ten percent and
         two of the vendors accounted for eight percent each. The Company does
         not currently have written contracts with any of its manufacturers, but
         relies on long-term personal and professional relationships. Management
         believes that, due to the large number of businesses performing this
         type of service in the industry, it would have little difficulty in
         finding viable alternatives in the event any one of these vendors
         became unable or determined not to continue manufacturing the Company's
         products. However, there can be no assurance that suitable, alternative


                                       7


<PAGE>


         manufacturers would be available to the Company when needed or that
         such alternative manufacturers would not result in an increase in
         costs.

                  PRODUCT. The Company has one product in both 2006 and 2005
         that individually accounts for more than 10% of its sales dollars.

Note 7 - Related Party Transactions
-----------------------------------

         On January 4, 2005, the Company entered into a lease with AriBen
         Corporation, a related party 100% owned by Susan and Stephen Levine,
         the Company's Vice President and CEO/CFO and collectively, as husband
         and wife, the majority stockholders of the Company, respectively, for
         approximately 29,821 square feet of office and industrial space. The
         lease, which has a term of ten years with options to renew for two
         subsequent periods of ten and five years, respectively, has a base
         monthly rent of $24,000 for the initial period, $30,000 for the first
         option period and $35,000 for the second option period. Rent will be
         adjusted annually during the second five years of each 10-year lease
         period based on the consumer price index, with a minimum increase of
         three percent. Over the course of the initial ten-year lease the
         Company will be obligated to pay $2,880,000. In addition to the monthly
         rent, during the first quarter 2005 the Company reimbursed AriBen
         Corporation for some of the tenant improvements that were built out to
         our specifications in the amount of $350,000. No security deposit was
         required under the lease.

Note 8 - Stock-Based Compensation
---------------------------------

         The Company has authorized 1,000,000 shares of common stock for
         issuance to key employees under the 1998 Stock Option Plan (the
         "plan"). The objectives of the plan include attracting and retaining
         the best personnel, providing for additional performance incentives,
         and promoting the success of the Company by providing key employees the
         opportunity to acquire common stock.

         Options outstanding and exercisable at March 31, 2006 were 333,750
         exercisable at $0.40 per share with an aggregate intrinsic value of
         $153,525. The weighted-average exercise price of options outstanding
         and exercisable at March 31, 2006 was $0.40 per share and the
         weighted-average remaining contractual life was 2.1 years. The options
         vested upon issue on May 12, 2003 and expire five years after said
         date. There were no options granted or exercised during any of the
         periods presented or compensation expense recognized. When options are
         exercised the Company issues treasury shares of which there are 583,750
         on hand.

Note 9 - Asserted and Unasserted Claims
---------------------------------------

         From time to time the Company is subject to certain asserted and
         unasserted claims encountered in the normal course of business. It is
         the Company's belief that the resolution of these matters will not have
         a material adverse effect on our financial position or results of
         operations, however, we cannot provide assurance that damages that
         result in a material adverse effect on our financial position or
         results of operations will not be imposed in these matters. The Company
         accounts for contingent liabilities when it is probable that future
         expenditures will be made and such expenditures can be reasonably
         estimated.

         On July 28, 2005, the Company was served with a 60-day Notice of
         Violation of the California Safe Drinking Water and Toxic Enforcement
         Act of 1986 (the "Enforcement Act"), claiming that certain of its
         products were required to bear California-specific labels regarding the
         health risks of certain ingredients. The California Women's Law Center
         of Los Angeles, California ("CWLC") served the notice. Notice was also
         served on the California Attorney General's Office, the attorney
         generals of the various California counties, the district attorneys and
         the city attorneys of various cities, which had 60 days in which to
         bring a civil action to enjoin the further distribution of any product
         found to be in violation of the Enforcement Act and to request that a
         civil penalty of up to $2,500 per day for each violation be levied
         against the Company. Since no civil action was brought by one of these
         government authorities within the 60-day period following the notice,
         CWLC was able to file a civil action of its own. We have reached an
         agreement with CWLC which is awaiting approval of the court. A loss
         provision of $18,000 has been recorded in the financial statements. We
         have ceased all sales of the products and no longer offer the products
         associated with the notice.

                                       8


<PAGE>

         In March 2006, the Company received a summons from the United States
         District Court for the District of Colorado in an action filed by Pure
         Research Products, LLC, a division of J.A. Sichel & Associates. The
         complaint alleges that the Company violated certain trademarks and
         exclusive license rights held by Pure Research Products, LLC during
         negotiations between the parties and following the dissolution of those
         negotiations. The plaintiff in the action is seeking various forms of
         injunctive relief against the Company as well as damages to be proven
         at trial. The complaint includes a request for treble damages in the
         event the plaintiff is successful. The Company intends to vigorously
         defend itself against the allegations.


                                       9


<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

INTRODUCTION
------------

Management's discussion and analysis of results of operations and financial
condition ("MD&A") is provided as a supplement to the accompanying consolidated
financial statements and footnotes to help provide an understanding of Allergy
Research Group, Inc.'s (the "Company") financial condition, changes in financial
condition and results of operations. The MD&A is organized as follows:

       o      CAUTION CONCERNING FORWARD-LOOKING STATEMENTS AND RISK FACTORS.
              This section discusses how certain forward-looking statements made
              by the Company throughout the MD&A and in the consolidated
              financial statements are based on our present expectations about
              future events and are inherently susceptible to uncertainty and
              changes in circumstances.

       o      OVERVIEW. This section provides a general description of the
              Company's business, as well as recent developments that we believe
              are important in understanding the results of operations and to
              anticipate future trends in those operations.

       o      RESULTS OF OPERATIONS. This section provides an analysis of our
              results of operations for the three-month period ended March 31,
              2006 compared to the same period in 2005. A brief description is
              provided of transactions and events that impact the comparability
              of the results being analyzed.

       o      LIQUIDITY AND CAPITAL RESOURCES. This section provides an analysis
              of our financial condition and cash flows as of and for the three
              months ended March 31, 2006, including related party transactions.

       o      CRITICAL ACCOUNTING POLICIES. This section provides an analysis of
              the significant estimates and judgments that affect the reported
              amounts of assets, liabilities, revenues and expenses, and related
              disclosure of contingent assets and liabilities.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS/RISK FACTORS
----------------------------------------------------------

The following discussion should be read in conjunction with the Company's
financial statements and the notes thereto and the other financial information
appearing elsewhere in this document. In addition to historical information, the
following discussion and other parts of this document contain certain
forward-looking information. When used in this discussion, the words "believes,"
"anticipates," "expects," and similar expressions are intended to identify
forward-looking statements. Such statements are subject to certain risks and
uncertainties, which could cause actual results to differ materially from those
projected due to a number of factors beyond our control. The Company does not
undertake to publicly update or revise any of its forward-looking statements
even if experience or future changes show that the indicated results or events
will not be realized. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. You are also
urged to carefully review and consider our discussions regarding the various
factors that affect our business, included in this section and elsewhere in this
report.

The manufacturing, processing, formulation, packaging, labeling and advertising
of vitamins and other nutritional products are subject to regulation by one or
more federal agencies, including but not limited to the Food and Drug
Administration, the Federal Trade Commission, the United States Environmental
Protection Agency and the Occupational Safety and Health Administration. In July
2005, the international Codex Alimentarius Commission approved guidelines for
the trade of dietary supplements that are more restrictive than U.S. law. We are
unlikely to see any immediate major effect on our domestic supply of vitamins,
herbs, and minerals; however, these restrictions are expected to lower the
dosage of U.S.-manufactured products to standards set by foreign jurisdictions,
enabling foreign manufacturers to better compete with U.S. companies in those
jurisdictions. We are unable to predict the impact of the proposed or any final
Codex guidelines on our sales to foreign markets. In addition, we are unable to
predict how guidelines adopted by Codex would affect the United States market.
Although the FDA has stated that the Codex guidelines will not affect the
availability of supplement products to U.S. consumers, the United States is a
member of the World Trade Organization ("WTO") and a refusal to harmonize U.S.
laws to the guidelines could result in a finding by the WTO dispute resolution
panel that the U.S. is engaging in unfair trade practices. In the event of such
a finding, the United States could become subject to sanctions in the form of
tariffs and pressure will be on Congress to harmonize U.S. standards with those
adopted by the WTO. We are also subject to governmental regulation in the
jurisdictions in which we operate, including certain foreign jurisdictions, such
as New Zealand and the European Economic Community, both of which have adopted
more restrictive regulations on nutritional supplements. These activities are
also regulated by various agencies of the states and localities in which our
products may be sold. We may incur significant costs in complying with these
regulations. In the event we cannot comply with government regulations affecting
our business and products, we may be forced to curtail or cease our business
operations.

                                      10


<PAGE>

We face an inherent risk of exposure to product liability claims in the event
that the use of our products results in injury. Such claims may include, among
others, that our products contain contaminants or include inadequate
instructions as to use or inadequate warnings concerning side effects and
interactions with other substances. We do not anticipate obtaining contractual
indemnification from parties supplying raw materials or marketing our products.
In any event, any such indemnification if obtained would be limited by our terms
and, as a practical matter, to the creditworthiness of the indemnifying party.
In the event that we do not have adequate insurance or contractual
indemnification, product liabilities relating to defective products could have a
material adverse effect on our operations and financial conditions.

Because of our dependence upon consumer perceptions, adverse publicity
associated with illness or other adverse effects resulting from the consumption
of our products or any similar products distributed by other companies could
have a material adverse effect on our operations. Such adverse publicity could
arise even if the adverse effects associated with such products resulted from
consumers' failure to consume such products as directed. In addition, we may not
be able to counter the effects of negative publicity concerning the efficacy of
our products. Any such occurrence could have a negative effect on our
operations.

Other key factors that affect our operating results are as follows:

       o      Overall customer demand for our various products.

       o      Volume of products ordered.

       o      Mix of products purchased by our customers.

       o      Prices at which we sell our products.

       o      Our ability to manage our cost structure for capital expenditures
              and operating expenses such as salaries and benefits, freight and
              royalties.

       o      Our ability to match operating costs to shifting volume levels.

       o      Increases in the cost of raw materials and other supplies.

       o      The impact of competitive products.

       o      Adequacy and availability of insurance coverage.

       o      Limitations on future financing.

       o      Increases in the cost of borrowings and unavailability of debt or
              equity capital.

       o      Our inability to gain and/or hold market share.

       o      Exposure to and expense of resolving and defending product
              liability claims and other litigation.

       o      Consumer acceptance of our products.

       o      Managing and maintaining growth.

       o      Customer demands.

       o      Market and industry conditions including pricing, demand for
              products, levels of trade inventories and raw materials
              availability.

       o      The success of product development and new product introductions
              into the marketplace.

       o      Slow or negative growth in the nutritional supplement industry.

       o      The departure of key members of management.

       o      Our ability to efficiently manufacture our products.

       o      Unexpected customer bankruptcy.

       o      The implementation of SFAS 123R in relation to accounting for
              future stock-based compensation.

                                       11


<PAGE>

OVERVIEW
--------

BUSINESS DESCRIPTION. Allergy Research Group, Inc. (SYMBOL: ALRG) (the "Company"
or "ARG"), together with its wholly-owned subsidiary, Nutricology, Inc., strives
to be an innovative leader in nutraceutical research and product formulation.
Our shares are traded on the Over-The-Counter Bulletin Board. Since 1980, the
Company has produced quality, hypoallergenic nutritional supplements and
currently supplies products to physicians and health care practitioners
worldwide. These professionals recognize the Company for the quality, purity and
efficacy of its targeted nutritional supplement line. Currently, we supply
products to approximately 4,000 physicians and health care practitioners,
including accounts in the United States, Japan, Taiwan, the United Kingdom,
South Korea, Jamaica, New Zealand, Mexico, Turkey, Norway, Sweden, Switzerland,
Italy, Ireland, Philippines, Russia, South Africa and Singapore. We develop,
contract manufacture, market and sell vitamins and nutritional supplements
throughout the world under the NutriCology(R) and Allergy Research Group(R)
labels. Our products are sold both through distributors and directly to medical
and professional accounts, to retailers, and directly to the consumer. We offer
two separate lines of approximately 270 products, including vitamins in both
multivitamin and single-entity formulas, minerals, and herbals. Our products are
manufactured in various forms, including capsules, tablets, softgels, powders
(drink mixes) and liquids. Our principal executive offices are located at 2300
North Loop Road, Alameda, California 94502 and our telephone number is (800)
545-9960.

FUTURE OPERATIONS. The success of our future operations will depend to a great
extent on the operations, financial condition, and management of the Company. We
intend to expand our position in the vitamin and nutritional supplements
markets. Specifically, our strategy continues to be to: (i) develop new brands
and product line extensions, as well as new products, through our commitment to
research and development; (ii) continue the growth of our balanced distribution
network; (iii) build our execution skills through new operations processes and
decision support systems; (iv) achieve cost superiority through formal
productivity benchmarking and continuous improvement programs; and (v) continue
to improve upon our comprehensive e-commerce plan, which includes a more
user-friendly and marketing-driven website that has the ability to accommodate
wholesale orders. We believe that our history and reputation in the field,
multiple distribution channels, broad portfolio of products and packaging and
distribution capabilities position us to be a long-term competitor in the
vitamin and nutritional supplements industries.

We are still collaborating with several entrepreneurs of cutting-edge
science-based products, who have limited resources to bring their products to
market. We look towards working partnerships and/or acquisition of these
businesses to broaden our product line of innovative nutraceuticals. There is
potential for real growth in sales and profit while providing products that
promote general health. The Company's distribution channel to the medical and
professional-practitioners market is key to the successful introduction of
unique products.

We believe that the Company has good relations with all of its current
manufacturers and suppliers. During the three-month period ending March 31,
2006, we experienced a concentration of approximately 29% of manufacturing with
two separate vendors, who individually account for more than ten percent of our
purchases. For the three months ended March 31, 2005, the Company had a
concentration of approximately 63% of manufacturing with five separate vendors.
Three of these vendors individually accounted for more than ten percent and two
of the vendors accounted for eight percent each. We do not currently have
written contracts with any of our manufacturers, but rely on long-term personal
and professional relationships with our vendors. We believe that, due to the
large number of businesses performing this type of service in the industry, the
Company would have little difficulty in finding viable alternatives in the event
any one of these vendors became unable or determined not to continue
manufacturing our products. However, we cannot assure you that, if we were to
lose this distributor, all or any of the customers would transfer directly to us
or that current sales from this group would be maintained.

RESULTS OF OPERATIONS
---------------------

Please refer to the consolidated financial statements, which are a part of this
report, for further information regarding the results of operations of the
Company.

             PERIOD ENDED MARCH 31, 2006 COMPARED TO MARCH 31, 2005
             ------------------------------------------------------

REVENUES. Our revenues have continued to grow at a moderate rate during the
first quarter of 2006. We had net sales of $4,265,527 for the quarter ending
March 31, 2006, compared with $4,111,173 for the same period in 2005. The
increase of $154,354, or 4%, in the first quarter was driven by increased sales
to our distributors, whereas sales to our retail customers and professional
accounts have decreased. We expect to continue to benefit from increased
consumer awareness of the importance of nutritional supplements in one's diet.

                                       12


<PAGE>

COSTS OF SALES. Cost of sales increased $207,125 to $2,630,510 for the three
months ended March 31, 2006, compared to $2,423,385 for the three months ended
March 31, 2005. The increase in cost of sales corresponds with the increase in
sales compounded by increased cost of materials, which we experienced due to the
demand of certain raw ingredients exceeding the supply in the market place and
because of the weakening U.S. dollar. In addition, we have incurred
approximately $17,000 in product testing cost for the three months ending March
31, 2006 compared to approximately $2,000 for the same period last year. We are
making a concerted effort to determine that our manufacturers are maintaining
the high standards we and our customers expect. Gross profit margins decreased
from approximately 41% for the three months ended March 31, 2005 to 38% for the
same period in 2006. The decrease of 3% for the period over period comparison is
a result of increased cost of materials that have not been passed on to our
customers in order to preserve our customer base and to respond to pricing
pressures from competitors. Additionally, high margin sales directly to retail
customers have decreased, whereas lower margin sales to distributors have
increased. Despite these market pressures and after careful consideration of
gross margins by product line, we felt compelled to raise the prices on several
items in January 2006 in order to remain competitive.

OPERATING EXPENSES. Total operating expenses were $1,111,997 for the first
quarter 2006, compared with $1,181,835 for the same period in 2005, a decrease
of $69,838. In 2005 we expensed approximately $100,000 as a result of the
relocation of our corporate office which was offset by a $40,000 reimbursement
for costs associated with a product dispute. Other than the moving expenses and
reimbursement of costs, our general and administrative expenses have generally
remained stable with small increases in credit card fees, legal fees and audit
fees. Payroll expenses have remained relatively stable as well with small
increases in insurance and wages offset by a reduction in staff and a reduced
bonus accrual. We anticipate adding additional staff during 2006. Occupancy
expenses rose slightly due to the timing of the recognition of property tax from
year to year and because of small increases in liability insurance and
utilities. Selling expenses decreased due to the timing of our newsletter and
because we have not printed a new catalog for 2006. Additionally, the cost of
attending conventions has increased.

INTEREST INCOME. Due to our increased cash balance and because we placed excess
cash in short-term certificates of deposits, interest income increased by
approximately $20,000 during the first quarter 2006 compared to the first
quarter 2005.

PROVISION FOR INCOME TAXES. Provision for income taxes as of March 31, 2006
represents federal and state income taxes based on earnings and changes to
deferred taxes.

NET EARNINGS. During the quarter ended March 31, 2006, we recorded net earnings
of $325,683, compared to net earnings of $319,533 for the same period in 2005.
Although we showed increased sales of 4% for the quarter, net earnings increased
only 2% primarily because of the decrease in profit margins.

SEASONALITY. Historically, we have experienced little seasonal fluctuation in
revenues; however, during the spring and fall we traditionally attend two trade
shows geared toward the retail market. Show discounts are offered and the retail
distributors tend to purchase higher quantities due to the discounts. We attend
trade shows geared toward the professional market throughout the year, but the
shows are smaller and tend to not have an immediate effect on sales. These shows
are useful because they provide personal contact with the professional market
and potentially increase sales in the long run.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Current Financial Condition

During the three-month period ended March 31, 2006, our working capital
increased by approximately $343,526 to $6,101,145, compared to a working capital
at December 31, 2005 of $5,757,619. Current assets mainly consist of
approximately $2.71 million in cash, $1.19 million in accounts receivable, and
$2.75 million in inventory. We continue to finance our inventory and accounts
receivable through cash generated by operating activities. We believe that the
Company's operating cash flow, cash and cash equivalents, and borrowing capacity
under committed bank credit agreements is sufficient to fund its capital and
liquidity needs for the next twelve months.

We currently do not utilize any off-balance sheet financing arrangements.

Cash Flows


                                       13


<PAGE>

OPERATING ACTIVITIES. Net cash flows provided by operating activities were
$220,852 and $427,381 for the three months ended March 31, 2006 and 2005,
respectively. Net cash provided by operating activities for both periods
primarily reflects net earnings and net changes in operating assets and
liabilities such as accounts receivable, inventory and accounts payable. Cash
generated by operating activities for 2006 is explained by (i) an increase in
accounts receivable of $231,519 due to increased sales and a few accounts that
are not paying as quickly as they had in previous quarters, and (ii) an increase
in inventory levels of $177,537 due to rising prices and a modest increase in
new products available for sale. Increases in these asset accounts were offset
primarily by (i) an increase in accounts payable and accrued liabilities of
$243,676 because accrued bonuses had been paid by year-end 2005 and increased
purchases of inventory and (ii) increase in income taxes based on taxable
earnings without the offset of any net operating loss carryforwards, which were
mostly utilized during 2005. Cash generated by operating activities for 2005 is
explained by (i) an increase in accounts receivable of $286,931 due to increased
sales and extended collection times resulting from delays in delivery of our
mail after our facility move in mid-February and (ii) reductions in inventory
levels of $189,268 as we sold off inventories built during the prior year's
fourth quarter. Increases in these asset accounts were offset primarily by an
increase in accounts payable and accrued liabilities of $186,097 because accrued
bonuses had been paid by year-end 2004 and increased purchases of inventory.

INVESTING ACTIVITIES. There were no cash flows from investing activities in
2006. Net cash flows used in investing activities for the three months ended
March 31, 2005 was $506,020 and primarily resulted from payments for leasehold
improvements for our new facility, office furniture and computer equipment.

FINANCING ACTIVITIES. There were no cash flows from financing activities in
either period.

CONCENTRATION OF RISK

The Company is subject to a wide variety of risks in the ordinary course of its
business. Some of the more significant of these risks include heavy
concentrations of sales with a few key customers; heavy concentrations of raw
material purchases with a few key suppliers; regulation by various federal,
state and local agencies with regards to the manufacture, handling, storage and
safety of products; and regulation by various agencies with regards to the
labeling and certification of products. The Company is also subject to
competition from other nutritional supplement companies and is dependent on the
continued demand for nutritional supplements by consumers.

          SALES. Approximately 11% of our total sales in 2006 and 2005 were
attributable to the same single distributor. In the event we were to lose that
account, we anticipate that we would be able to convert the business to sales
directly to the customers of that distributor. As converted sales would be at a
higher margin, we do not believe the loss of the account would have a material
negative impact on sales. However, we cannot assure you that, if we were to lose
this distributor, all or any of the customers would transfer directly to us or
that current sales from this group would be maintained.

         PURCHASES. We purchase raw materials and use outside vendors for the
manufacture of our products. For the three months ended March 31, 2006, we had a
concentration of approximately 29% of our manufacturing with two separate
vendors who individually account for more than ten percent of our purchases. For
the three months ended March 31, 2005, the Company had a concentration of
approximately 63% of manufacturing with five separate vendors. Three of these
vendors individually accounted for more than ten percent and two of the vendors
accounted for eight percent each. We do not currently have written contracts
with any of our manufacturers, but rely on long-term personal and professional
relationships. We believe that, due to the large number of businesses performing
this type of service in the industry, we would have little difficulty in finding
viable alternatives in the event any one of these vendors became unable or
determined not to continue manufacturing our products. However, we can give no
assurance that suitable, alternative manufacturers would be available to us when
needed or that such alternative manufacturers would not result in an increase in
costs.

          PRODUCT. We have one product that individually accounts for more than
ten percent of our sales dollars.

                                       14


<PAGE>

CONTRACTUAL OBLIGATIONS. The Company's Contractual Obligations and Commercial
Commitments are detailed below:

<TABLE>

-----------------------------------------------------------------------------------------
                                               Payments Due by Period
------------------------   --------------------------------------------------------------
                                           Less
     Contractual                          Than 1         1-3         4 - 5      After 5
     Obligations              Total        Year         Years        Years       Years
------------------------   ----------   ----------   ----------   ----------   ----------
<S>                        <C>          <C>          <C>          <C>          <C>
Line of Credit (1)                 --           --           --           --           --

Operating Leases (2)       $2,556,000   $  288,000   $  864,000   $  576,000   $  828,000

Purchase Obligations (3)   $1,384,109   $1,384,109           --           --           --

Total Cash Contractual
Obligations                $3,940,109   $1,672,109   $  864,000   $  576,000   $  828,000
-----------------------------------------------------------------------------------------

</TABLE>

       (1)    This represents the Company's borrowings under its line of credit
              with Merrill Lynch, which had a zero balance throughout the three
              months ended March 31, 2006 and through the date of this filing.
              The Merrill Lynch line of credit provides for maximum financing of
              $1,500,000, bearing interest at the London Interbank Offered Rate
              (LIBOR) plus 2.75%, computed on a monthly basis. As of March 31,
              2006, the interest rate on the line of credit was 7.57% per annum.
              Because the line of credit is secured by substantially all of the
              assets of the Company, if the Company were to fall into default
              under the terms of our agreement with Merrill Lynch it could have
              material adverse impact on our business and financial position.
              The CEO of the Company has personally guaranteed the line of
              credit.

       (2)    Represents our building lease with AriBen Corporation, a related
              party. See "Related Party Transactions" below. The current monthly
              obligation for the base rent on the lease is $24,000 for
              approximately 29,821 square feet.

       (3)    Represents outstanding purchase orders for inventory.

RELATED PARTY TRANSACTIONS. Dr. Stephen Levine, the Company's Chief Executive
Officer, Chief Financial Officer and Chairman of the Board of Directors, and
Susan Levine, the Company's Vice President and Secretary, are husband and wife.

On January 4, 2005, we entered into a lease with AriBen Corporation, a related
party 100% owned by Susan and Stephen Levine, for approximately 29,821 square
feet of office and industrial space. The lease, which has a term of ten years
with options to renew for two subsequent periods of ten and five years,
respectively, has a base monthly rent of $24,000 for the initial period, $30,000
for the first option period and $35,000 for the second option period. Rent will
be adjusted annually during the second five years of each 10-year lease period
based on the consumer price index, with a minimum increase of three percent.
During the first quarter 2005 we reimbursed AriBen Corporation for some of the
tenant improvements that were built out to our specifications in the amount of
$350,000. No security deposit is required under the lease.

LIQUIDITY RESOURCES. We have approximately $2.71 million in cash and cash
equivalents as of March 31, 2006, which, based on operating cash flow remaining
constant, we believe to be sufficient to satisfy our cash requirements over the
next twelve months. Our future funding requirements will depend on numerous
factors, some of which are beyond our control. These factors include our ability
to operate profitably, our ability to maintain, recruit and train management and
personnel, and our ability to compete with other, better-capitalized and more
established competitors who offer alternative or similar products. We believe
that, given our positive working capital position, we can satisfy our cash
requirements over the next twelve months from operations if we continue to
operate at a profit. Cash flow from operations is expected to provide us with
our capital resources and liquidity needs.

The Company expects to continue to purchase equipment and hire new employees as
is commensurate with the growth of the business. In addition, we will continue
to invest time and effort in research for product development. We know of no
trends that are expected to affect the cost of labor or materials, and sales are
expected to be stable over the next twelve months. See "CAUTION CONCERNING
FORWARD-LOOKING STATEMENTS/RISK FACTORS" above for some of the variables that
may affect our business and financial results.

                                       15


<PAGE>

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis is based upon our consolidated financial statements,
which have been prepared in accordance with accounting principles generally
accepted in the United States. The preparation of these financial statements
requires us to make estimates and judgments that affect the reported amounts of
assets, liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities. On an on-going basis, we evaluate our estimates,
including those related to bad debts, inventories, intangible assets, income
taxes and contingencies. We base our estimates on historical experience and on
various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates under different
assumptions or conditions.

An accounting policy is deemed to be critical if it requires an accounting
estimate to be made based on assumptions about matters that are highly uncertain
at the time the estimate is made, and if different estimates that reasonably
could have been used or changes in the accounting estimate that are reasonably
likely to occur could materially change the financial statements.

We believe the following critical accounting policies reflect our more
significant estimates and assumptions used in the preparation of our
consolidated financial statements; however, management does not consider any of
the estimates and assumptions to be highly uncertain.

INCOME TAXES

SFAS 109, Accounting for Income Taxes, establishes financial accounting and
reporting standards for the effect of income taxes. The objectives of accounting
for income taxes are to recognize the amount of taxes payable or refundable for
the current year and deferred tax liabilities and assets for the future tax
consequences of events that have been recognized in an entity's financial
statements or tax returns. Judgment is required in assessing the future tax
consequences of events that have been recognized in our financial statements or
tax returns. Variations in the actual outcome of these future tax consequences
could materially impact our financial position or our results of operations.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

We evaluate the collectibility of our trade receivables based on a combination
of factors. We regularly analyze our significant customer accounts, and, when we
become aware of a specific customer's inability to meet its financial
obligations to us, such as in the case of bankruptcy filings or deterioration in
the customer's operating results or financial position, we record a specific
reserve for bad debt to reduce the related receivable to the amount we
reasonably believe is collectible. The allowances are calculated based on
detailed review of certain individual customer accounts, historical rates and an
estimation of the overall economic conditions affecting our customer base. We
review a customer's credit history before extending credit. If the financial
condition of our customers were to deteriorate, resulting in an impairment of
their ability to make payments, additional allowances may be required. In the
event that our trade receivables become uncollectible, we would be forced to
record additional adjustments to receivables to reflect the amounts at net
realizable value. The accounting effect of this entry would be a charge to
income, thereby reducing our net earnings. Although we consider the likelihood
of this occurrence to be remote based on past history and the current status of
our accounts, there is a possibility of this occurrence.

INVENTORY

Our inventory purchases and commitments are made in order to build inventory to
meet future shipment schedules based on forecasted demand for our products. We
perform a detailed assessment of inventory for each period, which includes a
review of, among other factors, demand requirements, product life cycle and
development plans, component cost trends, product pricing and quality issues.
Based on this analysis, we record adjustments to inventory for excess,
obsolescence or impairment, when appropriate, to reflect inventory at net
realizable value. Revisions to our inventory adjustments may be required if
actual demand, component costs or product life cycles differ from our estimates.
In the event we were unable to sell our products, the demand for our products
diminished, other competitors offered similar or better products, and/or the
product life cycles deteriorated causing quality issues, we would be forced to
record an adjustment to inventory for impairment or obsolescence to reflect
inventory at net realizable value. The effect of this entry would be a charge to
income, thereby reducing our net earnings. Although we consider the likelihood
of this occurrence to be remote based on our forecasted demand for our products,
there is a possibility of this occurrence

                                       16


<PAGE>

CONTINGENCIES

The outcomes of potential legal proceedings and claims brought against us are
subject to significant uncertainty. SFAS 5, ACCOUNTING FOR CONTINGENCIES,
requires that an estimated loss from a loss contingency such as a legal
proceeding or claim should be accrued by a charge to income if it is probable
that an asset has been impaired or a liability has been incurred and the amount
of the loss can be reasonably estimated. Disclosure of a contingency is required
if there is at least a reasonable possibility that a loss has been incurred. In
determining whether a loss should be accrued we evaluate, among other factors,
the degree of probability of an unfavorable outcome and the ability to make a
reasonable estimate of the amount of loss. Changes in these factors could
materially impact our financial position or our results of operations.

 On July 28, 2005, the Company was served with a 60-day Notice of Violation of
the California Safe Drinking Water and Toxic Enforcement Act of 1986 (the
"Enforcement Act"), claiming that certain of its products were required to bear
California-specific labels regarding the health risks of certain ingredients.
The California Women's Law Center of Los Angeles, California ("CWLC") served the
notice. Notice was also served on the California Attorney General's Office, the
attorney generals of the various California counties, the district attorneys and
the city attorneys of various cities, which had 60 days in which to bring a
civil action to enjoin the further distribution of any product found to be in
violation of the Enforcement Act and to request that a civil penalty of up to
$2,500 per day for each violation be levied against the Company. Since no civil
action was brought by one of these government authorities within the 60-day
period following the notice, CWLC was able to file a civil action of its own. We
have reached an agreement with CWLC, which is awaiting approval of the court. A
loss provision of $18,000 has been recorded in the financial statements. We have
ceased all sales of the products and no longer offer the products associated
with the notice.

In March 2006, the Company received a summons from the United States District
Court for the District of Colorado in an action filed by Pure Research Products,
LLC, a division of J.A. Sichel & Associates. The complaint alleges that the
Company violated certain trademarks and exclusive license rights held by Pure
Research Products, LLC during negotiations between the parties and following the
dissolution of those negotiations. The plaintiff in the action is seeking
various forms of injunctive relief against the Company as well as damages to be
proven at trial. The complaint includes a request for treble damages in the
event the plaintiff is successful. The Company intends to vigorously defend
itself against the allegations.

ITEM 3. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company carried out an
evaluation of the effectiveness of the design and operation of its disclosure
controls and procedures pursuant to the Exchange Act Rule 13a-15. This
evaluation was done under the supervision and with the participation of the
Company's Chief Executive Officer and Chief Financial Officer, Stephen A.
Levine. Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures were
effective as of the period covered by this report to ensure that information
required to be disclosed by us in the reports that we file under the Exchange
Act is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure.

There were no changes in the Company's internal controls over financial
reporting that occurred during the quarter ended March 31, 2006, that have
materially affected, or are reasonably likely to materially affect, our internal
controls over financial reporting.


                                       17


<PAGE>


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

       On July 28, 2005, the Company was served with a 60-day Notice of
Violation of the California Safe Drinking Water and Toxic Enforcement Act of
1986 (the "Enforcement Act"), claiming that certain of its products were
required to bear California-specific labels regarding the health risks of
certain ingredients. The California Women's Law Center of Los Angeles,
California ("CWLC") served the notice. Notice was also served on the California
Attorney General's Office, the attorney generals of the various California
counties, the district attorneys and the city attorneys of various cities, which
had 60 days in which to bring a civil action to enjoin the further distribution
of any product found to be in violation of the Enforcement Act and to request
that a civil penalty of up to $2,500 per day for each violation be levied
against the Company. Since no civil action was brought by one of these
government authorities within the 60-day period following the notice, CWLC was
able to file a civil action of its own. We have reached an agreement with CWLC
which is awaiting approval of the court. A loss provision of $18,000 has been
recorded in the financial statements. We have ceased all sales of the products
and no longer offer the products associated with the notice.

       In March 2006, the Company received a summons from the United States
District Court for the District of Colorado in an action filed by Pure Research
Products, LLC, a division of J.A. Sichel & Associates. The complaint alleges
that the Company violated certain trademarks and exclusive license rights held
by Pure Research Products, LLC during negotiations between the parties and
following the dissolution of those negotiations. The plaintiff in the action is
seeking various forms of injunctive relief against the Company as well as
damages to be proven at trial. The complaint includes a request for treble
damages in the event the plaintiff is successful. The Company intends to
vigorously defend itself against the allegations.

ITEM   2. CHANGES IN SECURITIES AND USE OF PROCEEDS

       Not Applicable.

ITEM   3. DEFAULTS UPON SENIOR SECURITIES

       Not Applicable.

ITEM   4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

       Not Applicable.

Item   5. OTHER INFORMATION

       Not Applicable.

Item   6. EXHIBITS

(a)    Exhibits

31     Certificate of Stephen A. Levine required by Rule 13a-14(a) or Rule
       15d-14(a) of The Securities Exchange Act of 1934, as adopted pursuant to
       Section 302 of the Sarbanes-Oxley Act of 2002

32     Certificate of Stephen A. Levine Pursuant to 18 U.S.C. Section 1350, as
       adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(b)    Reports on Form 8-K

       None


                                       18


<PAGE>


                          ALLERGY RESEARCH GROUP, INC.
                                    SIGNATURE

       Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                             ALLERGY RESEARCH GROUP, INC.
                                             Registrant



Dated:  May 15, 2006                         By: /s/ Stephen A. Levine
                                             -----------------------------------
                                                 Chief Executive Officer and
                                                 Chief Financial Officer


                                       19