Table        of contents

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**Form      10-Q**

**0-13763**

**TECHNOLOGY RESEARCH CORPORATION**

| **FLORIDA**                                                                                | **59-2095002**                                                   |
|--------------------------------------------------------------------------------------------|------------------------------------------------------------------|
| *(State              or other jurisdiction of incorporation or              organization)* | *(I.R.S.              employer identification              no.)* |

**5250-140th      Avenue      North Clearwater, Florida 33760**

**(727)      535-0572**

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**TECHNOLOGY            RESEARCH CORPORATION**

| PART              I — FINANCIAL INFORMATION                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                             |
|                                                                                                                                                                             | Item              1.  Financial Statements |
|                                                                                                                                                                             |    Condensed              Consolidated Balance Sheets |
|                                                                                                                                                                             |    Condensed              Consolidated Statements of              Operations |
|                                                                                                                                                                             |    Condensed              Consolidated Statements of Cash              Flows |
|                                                                                                                                                                             |    Notes              to the Condensed Consolidated Financial              Statements |
|                                                                                                                                                                             | Item              2.  Management’s Discussion and Analysis of              Financial Condition and Results of Operations |
|                                                                                                                                                                             | Item              3.  Quantitative and Qualitative Disclosures              About Market Risk  |
|                                                                                                                                                                             | Item              4.  Controls and              Procedures |
|                                                                                                                                                                             |
| PART              II — OTHER INFORMATION                                                                                                                                   |
|                                                                                                                                                                             |
|                                                                                                                                                                             | Item              1.  Legal Proceedings |
|                                                                                                                                                                             | Item              1A.  Risk Factors  |
|                                                                                                                                                                             | Item              2.  Unregistered Sales of Equity Securities and              Use of Proceeds |
|                                                                                                                                                                             | Item              3.  Defaults Upon Senior              Securities |
|                                                                                                                                                                             | Item              4.  Submission of Matters to a Vote of Security              Holders |
|                                                                                                                                                                             | Item              5.  Other Information |
|                                                                                                                                                                             | Item              6.  Exhibits |
|                                                                                                                                                                             |   |
| SIGNATURES                                                                                                                                                                  |
|                                                                                                                                                                             |
| Exhibit              31.1 — Certification of Chief              Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act              of              2002 |
|                                                                                                                                                                             |
| Exhibit              31.2 — Certification of Chief              Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act              of              2002 |
|                                                                                                                                                                             |
| Exhibit              32.1 — Certification of Chief              Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act              of              2002 |
|                                                                                                                                                                             |
| Exhibit              32.2 — Certification of Chief              Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act              of              2002 |
|                                                                                                                                                                             |
|                                                                                                                                                                             |

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**P**
**ART        I — FINANCIAL        INFORMATION**

**Item      1.  Financial Statements**

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

|                                                                                                             | **December 31,                  2005** |   | **                       March 31, 2005** |
|------------------------------------------------------------------------------------------------------------------|---------------------------------------------|--------|-------------------------------------------------------------------------|
|                  **ASSETS** |                                        |   |                                                                    |
| Current                assets:                                                                                   |                                        |   |                                                                    |   |   |   |   |   |  |
|    Cash                and cash equivalents                                                       |                                        |   | $                                                                       | 1,216,631 |   |   |  | 815,411 |   |
|                   Short-term investments                                                               |                                        |   |                                                                    | 498,127 |   |   |   | 487,072 |   |
|    Trade                and other accounts receivable, net of allowance for                       |                                        |   |
|         doubtful                accounts of $97,000 and $171,725    |                                        |   |                                                                    | 9,013,913 |   |   |   | 13,114,548 |   |
|    Inventories                                                                                    |                                        |   |                                                                    | 11,131,614 |   |   |   | 11,460,302 |   |
|                   Deferred income taxes                                                                |                                        |   |                                                                    | 461,161 |   |   |   | 488,413 |   |
|    Prepaid                expenses and other current assets                                       |                                        |   |                                                                    | 318,235 |   |   |   | 514,922 |   |
|                                                                                                             |                                             |   |                                                                         |
|      Total                current assets                                                |                                        |   |                                                                    | 22,639,681 |   |   |   | 26,880,668 |   |
|                                                                                                             |
| Property                and equipment, net of accumulated depreciation of                                        |                                        |   |
|    $9,019,506 and                $8,089,950                                                  |                                        |   |                                                                    | 5,133,789 |   |   |   | 5,470,156 |   |
| Other                assets                                                                                      |                                        |   |                                                                    | 64,658 |   |   |   | 96,004 |   |
|                                                                                                             |                                             |   |                                                                         |
|                       Total assets                                                 |                                        |   | $                                                                       | 27,838,128 |   |   |  | 32,446,828 |   |
|                                                                                                             |                                             |   |                                                                         |

| **                LIABILITIES                AND                SHAREHOLDERS' EQUITY** |   |   |   |       |    |   |   |             |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------|---------|--------|--------|------------------|---------|
| Current              liabilities:                                                                                                                                      |   |   |   |       |    |   |   |             |    |
|                 Current portion of long-term debt                                                                                                       |   |   | $      | 1,000,000  |    |   |   | 3,000,000        |    |
|    Trade              accounts payable                                                                                                                  |   |   |   | 5,488,280  |    |   |   | 7,970,920        |    |
|                 Accrued expenses                                                                                                                             |   |   |   | 906,035    |    |   |   | 1,327,944        |    |
|    Accrued              dividends                                                                                                                       |   |   |   | 100,461    |    |   |   | 100,175          |    |
|                 Income taxes payable                                                                                                                         |   |   |   | 115,312    |    |   |   | 112,239          |    |
|                                                                                                                                                                   |        |   |        |
|      Total              current liabilities                                                                                                   |   |   |   | 7,610,088  |    |   |   | 12,511,278       |    |
|                                                                                                                                                                   |   |   |   |       |    |   |   |             |    |
| Long-term debt,              less current portion                                                                                                                 |   |   |   | 2,000,000  |    |   |   | 2,350,000        |    |
| Deferred              income taxes                                                                                                                                     |   |   |   | 337,956    |    |   |   | 378,143          |    |
|                                                                                                                                                                   |   |   |   |       |    |
|                     Total liabilities                                                                                                    |   |   |   | 9,948,044  |    |   |   | 15,239,421       |    |
|                                                                                                                                                                   |
| Shareholders'              equity:                                                                                                                                |
|                 Common stock $0.51 par value; 10,000,000 shares authorized, 5,797,375              shares and                                                |   |   |
|                     5,795,375 shares issued and 5,786,125 shares and 5,773,875 shares              outstanding                           |   |   |   | 2,961,889  |    |   |   | 2,955,641        |    |
|                 Additional paid-in capital                                                                                                                   |   |   |   | 8,545,458  |    |   |   | 8,483,237        |    |
|                 Retained earnings                                                                                                                            |   |   |   | 6,422,882  |    |   |   | 5,808,674        |    |
|                 Common stock held in treasury, 21,500 shares, at cost                                                                                        |   |   |   | (40,145    | )  |   |   | (40,145          | )  |
|                                                                                                                                                                   |        |   |        |
|    Total              shareholders' equity                                                                                                              |   |   |   | 17,890,084 |    |   |   | 17,207,407       |    |
|                                                                                                                                                                   |   |   |   |       |    |
|     Total              liabilities and shareholders' equity                                                                                   |   |   | $      | 27,838,128 |    |   |   |  32,446,828 |    |
|                                                                                                                                                                   |        |   |        |

**The      accompanying notes are an integral part of the condensed      consolidated financial statements.**

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**TECHNOLOGY        RESEARCH CORPORATION AND        SUBSIDIARY**

|                                                                                                 |                  |       | **Three                Months Ended December                31,**  |      |   | **Nine Months                Ended December                31,**  |    |
|------------------------------------------------------------------------------------------------------|-----------------------|------------|-------------------------------------------------------------------------|-----------|--------|-----------------------------------------------------------------------------|---------|
|                                                                                                 |                  |       | **2005**                                                                |      |   | **2004**                                                                    |    |   | **2005** |   |   | **2004** |   |
| Revenues:                                                                                            |                  |       |                                                                    |      |   |                                                                        |    |   |   |   |   |   |   |
|                 Commercial                                                                 | $                     |       | 7,858,376                                                               |      |   | 6,822,319                                                                   |         |   | 21,324,243 |   |   | 14,830,849 |   |
|    Military                                                                           |                  |       | 3,495,926                                                               |      |   | 2,879,845                                                                   |    |   | 9,268,494 |   |   | 9,014,404 |   |
|                 Royalties                                                                  |                  |       | -                                                                       |      |   | 2,631                                                                       |    |   | - |   |   | 60,013 |   |
|        Total                revenues                              |                  | 11,354,302 |                                                                    | 9,704,795 |   | 30,592,737                                                                  |    | 23,905,266 |   |
| Cost              of sales                                                                 |                  |       | 8,501,716                                                               |      |   | 7,652,981                                                                   |    |   | 23,668,111 |   |   | 17,088,245 |   |
|                          Gross profit              |                  | 2,852,586  |                                                                    | 2,051,814 |   | 6,924,626                                                                   |    | 6,817,021 |   |
|                                                                                                 |                  |            |                                                                    |           |   |                                                                             |    |  |   |
| Operating              expenses:                                                                     |                  |       |                                                                    |      |   |                                                                        |    |   |   |   |   |   |   |
|                 Selling and marketing                                                      |                  |       | 643,633                                                                 |      |   | 655,771                                                                     |    |   | 1,850,510 |   |   | 1,836,786 |   |
|                 General and administrative                                                 |                  |       | 707,483                                                                 |      |   | 667,165                                                                     |    |   | 2,392,680 |   |   | 1,817,162 |   |
|                 Research and development                                                   |                  |       | 418,827                                                                 |      |   | 565,433                                                                     |    |   | 1,444,250 |   |   | 1,533,327 |   |
|                       Total operating expenses                    |                  | 1,769,943  |                                                                    | 1,888,369 |   | 5,687,440                                                                   |    | 5,187,275 |   |
|                           Income from operations   |                  | 1,082,643  |                                                                    | 163,445   |   | 1,237,186                                                                   |    | 1,629,746 |   |
|  Other                income (expense):                                                         |                  |            |                                                                    |           |   |                                                                             |    |  |   |
|                   Other income, net                                                        |                  |       | 4,093                                                                   |      |   | 6,595                                                                       |    |   | 24,134 |   |   | 21,208 |   |
|                 Interest expense                                                           |                  |       | (54,026                                                                 | )         |   | (742                                                                        | )  |   | (168,495 | )  |   | (1,485 | )  |
|           Other              income (expense), net |                       | (49,933    | )                                                                       | 5,853     |        | (144,361                                                                    | )       | 19,723 |   |
|  Income                before income taxes                                                 |                  | 1,032,710  |                                                                    | 169,298   |   | 1,092,825                                                                   |    | 1,649,469 |   |
| Income              tax expense                                                                      |                  |       | 206,542                                                                 |      |   | 6,385                                                                       |    |   | 218,565 |   |   | 494,841 |   |
|                    Net income                                                    |                $ | 826,168    |                                                                    | 162,913   |   | 874,260                                                                     |    | 1,154,628 |   |
|                                                                                                 |                  |            |                                                                    |           |   |                                                                             |    |  |   |
| Earnings              per share - basic                                                              | $                     |       | 0.14                                                                    |      |   | 0.03                                                                        |    |   | 0.15 |   |   | 0.20 |   |
|                                                                                                 |                  |       |                                                                    |      |   |                                                                        |    |   |   |   |   |  |   |
| Earnings              per share - diluted                                                            | $                     |       | 0.14                                                                    |      |   | 0.03                                                                        |    |   | 0.15 |   |   | 0.19 |   |
|                                                                                                 |                  |       |                                                                         |      |   |                                                                             |    |   |  |   |   |  |   |
| Shares              outstanding - basic                                                              |                  |       | 5,783,500                                                               |      |   | 5,756,292                                                                   |    |   | 5,778,325 |   |   | 5,752,015 |   |
|                                                                                                 |                  |       |                                                                         |      |   |                                                                             |    |   |   |   |   |   |   |
| Shares              outstanding - diluted                                                            |                  |       | 5,811,161                                                               |      |   | 5,913,005                                                                   |    |   | 5,828,818 |   |   | 5,955,391 |   |
|                                                                                                 |                  |       |                                                                    |      |   |                                                                        |    |   |   |   |   |   |   |
| Dividends              declared per share                                                       | $                |       | 0.015                                                              |      |   | 0.015                                                                  |    |   | 0.045  |   |   | 0.045  |   |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

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**TECHNOLOGY        RESEARCH CORPORATION AND        SUBSIDIARY**

|                                                                                                                                 | **Nine Months                Ended December 31,** |
|--------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                                                                                                 | **2005**                                                         | **2004** |
| Cash              flows from operating activities:                                                                                   |                                                             |   |   |   |   |   |   |   |   |
|    Net              income                                                                                            |                                                             |   | $ | 874,260 |   |   |   | 1,154,628 |   |
|                 Adjustments to reconcile net income to net cash provided (used) by              operating activities: |                                                             |   |
|                 Tax benefit of stock options exercised                                                                     |                                                             |   |   | 8,427 |   |   |   | 8,612 |   |
|                 Gain on disposal of assets                                                                                 |                                                             |   |   | - |  |   |   | 1,390 |   |
|    Stock compensation expense                                                                                              |                                                             |   |   | 38,400 |   |   |   | - |   |
|    Depreciation                                                                                                       |                                                             |   |   | 932,353 |   |   |   | 677,115 |   |
|    Accretion              of interest on short-term investments                                                  |                                                             |   |   | (4,911 | )  |   |   | (3,879 | )  |
|    Changes              in operating assets and liabilities:                                                          |                                                             |   |
|       Trade              and other accounts receivable, net                                            |                                                             |   |   | 4,100,635 |   |   |   | (3,139,649 | )  |
|                    Income taxes receivable                                                                  |                                                             |   |   | - |   |   |   | (8,951 | )  |
|                    Inventories                                                                              |                                                             |   |   | 328,688 |   |   |   | (4,563,113 | )  |
|                    Deferred income taxes                                                                    |                                                             |   |   | (12,935 | )  |   |   | (15,628 | )  |
|                    Prepaid expenses and other current assets                                                |                                                             |   |   | 196,687 |   |   |   | (283,901 | )  |
|                    Other assets                                                                             |                                                             |   |   | 31,346 |   |   |   | (52,158 | )  |
|       Trade              accounts payable                                                              |                                                             |   |   | (2,482,640 | ) |   |   | 3,941,132 |   |
|       Accrued              expenses                                                                    |                                                             |   |   | (421,909 | ) |   |   | 31,701 |   |
|       Income              taxes payable                                                                |                                                             |   |   | 3,073 |   |   |   | (431,093 | )  |
|                    Deferred revenue                                                                              |                                                             |   |   | - |   |   |   | (7,893 | )  |
|                                                                                                                                 |                                                                  |   |  |
|         Net              cash provided (used) by operating activities                   |                                                             |   |   | 3,591,474 |   |   |   | (2,691,687 | )  |
|                                                                                                                                 |                                                                  |   |  |
| Cash              flows from investing activities:                                                                                   |                                                             |   |
|    Purchase of short-term              investments                                                          |                                                             |   |   | (6,144 | )  |   |   | (480,000 | )  |
|    Capital              expenditures                                                                                  |                                                             |   |   | (595,986 | )  |   |   | (3,292,439 | )  |
|                                                                                                                                 |                                                                  |   |  |
|         Net              cash used by investing activities                              |                                                             |   |   | (602,130 | )  |   |   | (3,772,439 | )  |
|                                                                                                                                 |                                                                  |   |  |
| Cash              flows from financing activities:                                                                                   |                                                             |   |
|                 Borrowings under revolving credit agreement                                                 |                                                             |   |   | 10,200 |   |   |   | 2,000,000 |   |
|                 Repayments under revolving credit agreement                                                                |                                                             |   |   | (2,360,200 | )  |   |   | - |   |
|    Proceeds              from the exercise of stock options                                                           |                                                             |   |   | 21,642 |   |   |   | 49,248 |   |
|    Cash              dividends paid                                                                                   |                                                             |   |   | (259,766 | )  |   |   | (258,423 | )  |
|                                                                                                                                 |                                                                  |   |  |
|         Net              cash (used) provided by financing activities              |                                                             |   |   | (2,588,124 | ) |   |   | 1,790,825 |   |
|                                                                                                                                 |                                                                  |   |  |
| Net              increase (decrease) in cash and cash equivalents                                                                    |                                                             |   |   | 401,220 |   |   |   | (4,673,301 | )  |
| Cash              and cash equivalents at beginning of period                                                                        |                                                             |   |   | 815,411 |   |   |   | 5,968,122 |   |
|                                                                                                                                 |                                                                  |   |  |
| Cash              and cash equivalents at end of period                                                                              |                                                             |   | $ | 1,216,631 |   |   |   | 1,294,821 |   |
|                                                                                                                                 |                                                                  |   |  |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

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****Notes        to        the Consolidated Financial        Statements****

Form      10-KSB

*2.  Earnings      per share:*

|                                                                        | **Three                months ended December                31,** | **Nine months                ended December                31,** |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                                        | **2005**                                                               | **2004**                                                                   | **2005** | **2004** |
| Net              income                                                     |                                                                   |                                                                       | $ | 826,168 |   |   | 162,913 |   |   | 874,260 |   |   | 1,154,628 |   |
|                                                                        |                                                                   |                                                                       |   | ** **  |   |   | ** **  |   |   | ** **  |   |   | ** ** |   |
| Weighted              average shares outstanding - basic                    |                                                                   |                                                                       |   | 5,783,500 |   |   | 5,756,292 |   |   | 5,778,325 |   |   | 5,752,015 |  |
| Dilutive              common shares issuable upon exercise of stock options |                                                                   |                                                                       |   | 27,661 |   |   | 156,713 |   |   | 50,493 |   |   | 203,376 |   |
|                                                                        |                                                                   |                                                                       |   |    |   |   |    |   |   |    |   |   |    |   |
| Weighted              average shares outstanding - diluted                  |                                                                   |                                                                       |   | 5,811,161 |   |   | 5,913,005 |   |   | 5,828,818 |   |   | 5,955,391 |   |
|                                                                        |                                                                   |                                                                       |   |    |   |   |    |   |   |    |   |   |    |   |
| Earnings per share:                                                         |                                                                   |                                                                       |
| Basic                                                                       |                                                                   |                                                                       | $ | 0.14 |   |   | 0.03 |   |   | 0.15 |   |   | 0.20 |   |
| Diluted                                                                     |                                                                   |                                                                       | $ | 0.14 |   |   | 0.03 |   |   | 0.15 |   |   | 0.19 |   |

*3.  Short-term investments: *

*held-to-maturity*

*4.       Inventories:*

|                        | **December 31,                2005** | ** ** | **March 31,                2005** |
|-----------------------------|-------------------------------------------|------------|----------------------------------------|
|                        |                                      |       |                                   |
| Raw              materials  |                                      |       | $                                      | 7,651,520 |   |   |   | 8,669,678 |   |
| Work-in-process             |                                      |       |                                   | 496,155 |   |   |   | 628,622 |   |
| Finished              goods |                                      |       |                                   | 2,983,939 |   |   |   | 2,162,002 |   |
|                        |                                           |       |                                        |
| Total                       |                                      |       | $                                      | 11,131,614 |   |   |   | 11,460,302 |   |
|                        |                                           |       |                                        |

----

*5.          Warranty: *

|                                             |    | **Three                months ended**      |    |  N**ine                months ended** |    |
|--------------------------------------------------|---------|--------------------------------------------|---------|--------------------------------------------|---------|
|                                             |    |  **December                31, 2005** |    |  **December                31, 2004** |    |  **December                31, 2005** |   |  **December                31, 2004** |   |
|                                             |    |                                       |    |                                       |    |   |   |   |   |
| Beginning              balance                   |  $ |  270,462                              |    |  40,219                               |    | 310,447 |   |  20,000 |   |
|                  Warranty expense |    | 80,087                                     |    |  47,741                               |    | 402,626 |   |  70,908 |   |
|                  Warranty claims  |    |  (213,770                             | )  |  (6,349                               | )  | (576,294 | )  |  (9,297 | )  |
|  Ending                balance              |  $ | 136,779                                    |    | 81,611                                     |    | 136,779 |   | 81,611 |   |
|                                             |    |                                            |    |                                            |    |  |   |  |   |

*6.  Debt: *

|                                                                                                                   | **Three                months ended December 31,** | **Nine                months ended December 31,** |
|------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------|
|                                                                                                                   | **2005**                                                | **2004**                                               | **2005** | **2004** |
| Net              income - as reported                                                                                  |                                                    |                                                   | $ | 826,168 |   |   | 162,913 |   |   | 874,260 |   |   | 1,154,628 |   |
| Deduct:               Total stock-based compensation                                                              |                                                    |                                                   |
|                           expense determined under fair    |                                                    |
|                           value based method, net of taxes |                                                    |                                                   |   | (646 | )  |   | (189,956 | ) |   | (1,344,887 | ) |   | (575,634 | ) |
| Add:                Stock compensation expense, net of taxes                                                 |                                                    |                                                   |   | - |   |   | - |   |   | 30,720 |   |   | - |   |
|                                                                                                                   |                                                    |                                                   |   |    |   |    |   |    |   |    |
| Net              income (loss) - pro forma                                                                             |                                                    |                                                   | $ | 825,522 |   |   | (27,043 | )  |   | (439,907 | )  |   | 578,994 |   |
|                                                                                                                   |                                                    |                                                   |   |    |   |    |   |    |   |    |
| Basic              earnings (loss) per share:                                                                          |                                                    |                                                   |
|          As              reported                                         |                                                    |                                                   | $ | 0.14 |   |   | 0.03 |   |   | 0.15 |   |   | 0.20 |   |
|                                                                                                                   |                                                    |                                                   |   |    |   |    |   |    |   |    |
|          Pro              forma                                           |                                                    |                                                   | $ | 0.14 |   |   | 0.00 |   |   | (0.08 | ) |   | 0.10 |   |
|                                                                                                                   |                                                    |                                                   |   |    |   |    |   |    |   |    |
| Diluted              earnings (loss) per share                                                                         |                                                    |                                                   |
|          As              reported                                         |                                                    |                                                   | $ | 0.14 |   |   | 0.03 |   |   | 0.15 |   |   | 0.19 |   |
|                                                                                                                   |                                                    |                                                   |   |    |   |    |   |    |   |    |
|          Pro              forma                                           |                                                    |                                                   | $ | 0.14 |   |   | 0.00 |   |   | (0.08 | )  |   | 0.10 |   |
|                                                                                                                   |                                                    |                                                   |   |    |   |    |   |    |   |    |

----

*Share-Based Payment*

*Separation from Service Agreement*

****Item        2.  Management’s Discussion and Analysis        of Financial Condition and Results of        Operations.****

*we*
*our*
*us*

**FORWARD-LOOKING      STATEMENTS**

*Risk Factors*
Form      10-KSB

***OVERVIEW***

*Fire          Shield*
*Surge Guard Plus*
*Fire Shield*

----

      -  to increase              profitability by improving operating efficiencies; 
      -  to              strengthen and expand its markets and distribution channels; 
      -  to              broaden the applications within target markets for its existing              products; 
      -  to              expand the scope of its product content; 
      -  to              expand its manufacturing capabilities; 
      -  to              maintain a conservative capital structure; and 
      -  to              pursue strategic acquisitions to the extent favorable opportunities              are              presented. 

*Risk      Factors*

**RESULTS OF        OPERATIONS**

***    Revenues***

***    Gross          profit***

----

***    Selling            and            marketing***

***    General            and            administrative***

***    Research                and                development***

***    Other income      (expense)***

***    Income      tax      expense***
* *

***Net income***

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**LIQUIDITY AND          CAPITAL RESOURCES**

**OFF-BALANCE        SHEET ARRANGEMENTS**

----

***NEW          ACCOUNTING STANDARDS***

*Inventory Costs*
*Restatement and Revision of Accounting Research Bulletins*

*Accounting for Stock-Based      Compensation*
*Accounting for Stock issued to      Employees*

***CRITICAL        ACCOUNTING POLICIES***

*Forward-Looking Statements*
*Risk Factors*

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***    Revenue          Recognition.***

***Allowance              for Doubtful Accounts.***

***    Income            Taxes*.**

***    Warranty*.**

***Inventories.***

***    Impairment                of                Long-Lived Assets.***
*Accounting for Impairment or Disposal of Long-Lived Assets*

****Item                  3.  Quantitative** and Qualitative                  Disclosures About Market Risk.**

****Item                4.  Controls and                Procedures**.**

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**PART            II — OTHER            INFORMATION**

**Item      1.  Legal Proceedings.**

*Fire Shield*

**Item 1A.  Risk Factors.**

      -  Failure              to achieve our operating strategy 
      -  Access              to capital to fund growth 
      -  Availability              and cost increases in raw materials and components 
      -  The              loss of or significant decrease in sales to large customers 
      -  Adverse              changes in the operations of global manufacturing facilities 
      -  Interruptions in              manufacturing operations 
      -  Infringement              or loss of proprietary rights 
      -  Seasonality 
      -  Competition from              larger companies that produce similar products 
      -  Newly              acquired businesses or product lines 
      -  Government              regulations could adversely impact our operations 

*Fire Shield*

****Item      2.  Unregistered Sales of Equity Securities and      Use of Proceeds.****

****Item      3.  Defaults Upon Senior      Securities.****

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

****Item      5.  Other      information.****

*Change of Control Agreement*
Exhibit      10.1

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********Item      6. Exhibits.********

|   | Exhibits: |                                                                                                                                                                   |   |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |
|   |      | Exhibit              10.1 —  Change of              Control Agreement with Barry H. Black, VP of Finance and CFO, dated              January 23, 2006. |
|   |
|   |      | Exhibit              31.1 — Certification of the CEO pursuant to Rule 13a-14(a) or Rule              15(d)-14(a).                                                |
|   |
|   |      | Exhibit              31.2 — Certification of the CFO pursuant to Rule 13a-14(a) or Rule              15(d)-14(a).                                                |
|   |
|   |      | Exhibit              32.1 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to              Section 906 of the Sarbanes-Oxley Act of 2002.    |
|   |
|   |      | Exhibit              32.2 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to              Section 906 of the Sarbanes-Oxley Act of 2002.    |
|   |
|   |      |                                                                                                                                                                   |
|   |      |                                                                                                                                                                   |
|   |      |                                                                                                                                                                   |

**SIGNATURES**

|                                      | TECHNOLOGY              RESEARCH CORPORATION                                                                                                                                                                                                                                                                             |
|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      |
| February 14,              2006  | By:                    /s/ Robert S.              Wiggins                                                                  |
|                                      |              Robert              S. Wiggins                                                                                                                                                                                                             |
|                                      |                           Chairman, President and Chief Executive Officer                                                                                                                                                                                    |
|                                      |                           (Principal Executive Officer)                                                                                                                                                                                                      |
|                                      |
|                                      |
| February 14,              2006  | By:                    /s/ Barry              H. Black                                                 |
|                                      |              Barry              H. Black                                                                                                                                                                                                                |
|                                      |                           Chief Financial Officer                                                                                                                                                                                                            |
|                                      |                           (Principal Financial and Accounting              Officer)                                                                                                                                                                          |

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