FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15 (d)
                   Of the Securities and Exchange act of 1934


For Quarter Ended   June 30, 1998

Commission file number   0-14119-NY

                        Polymer Research Corp. of America
             (Exact name of registrant as specified in its charter)

            New York                                             11-2023495     
(State or other jurisdiction of                               (I.R.S Employer   
 incorporation or organization)                              Identification No.)

                   2186 Mill Avenue, Brooklyn, New York 11234
                    (Address of principal executive offices)
                                   (Zip code)

                                 (718) 444-4300
               (Registrants telephone number, including area code)

                                 Not Applicable
             (Former name, former address and former fiscal year, if
                           changed since last report)

     Indicate by check mark whether the registrant (1) has filed all reports
     required to be filed by Section 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 ___


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer's classes
     of common stock, as of the latest practicable date.

     July 31, 1998                           1,593,947



<PAGE>


                        POLYMER RESEARCH CORP. OF AMERICA

                                      INDEX


                                                                         Page
                                                                         Number
Part I - FINANCIAL INFORMATION:                                          ------

          ITEM I - FINANCIAL STATEMENTS

          Balance Sheets:
          June 30, 1998 (Unaudited) and
               December 31, 1997                                            1

          Statements of Operations:
          Three months and six months ended
          June 30, 1998 and 1997 (Unaudited)                                3

          Statements of Cash Flows:
          Three months and six months ended
          June 30, 1998 and 1997 (Unaudited)                                4

          Notes to Financial Statements                                    5-8

          ITEM 2 - MANAGEMENT`S DISCUSSION AND ANALYSIS 
                   OF FINANCIAL CONDITION AND RESULTS 
                   OF OPERATIONS                                           9-10


PART II - OTHER INFORMATION                                                 11



<PAGE>


PART I - FINANCIAL INFORMATION
------------------------------
POLYMER RESEARCH CORP. OF AMERICA
BALANCE SHEETS JUNE 30, 1998 AND DECEMBER 31, 1997
--------------------------------------------------------------------------------

                                                    June 30,       December 31,
ASSETS                                               1998             1997
------                                            ----------       ------------
                                                  (Unaudited)       (Note 1)
CURRENT ASSETS: 
Cash                                              $1,963,905       $1,367,008
Investment - certificates of deposit                 158,356          155,308
Investment securities available
  for sale                                           384,389          482,940
Accounts receivable,less allowances
  of $0 and $4,000                                   120,112          137,827
Inventories                                           74,912           99,654
Prepaid expenses and other                            73,643           17,504
                                                  ----------       ----------
Total current assets                               2,775,317        2,260,241
                                                  ----------       ----------
Land, Property, and Equipment-net                  2,821,363        2,863,416
                                                  ----------       ----------
Deferred financing costs and other                    10,984           11,450
                                                  ----------       ----------
Total other assets                                    10,984           11,450
                                                  ----------       ----------
TOTAL                                             $5,607,664       $5,135,107
                                                  ==========       ==========



The accompanying notes are an integral part of these
financial statements. 
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<PAGE>


PART I - FINANCIAL INFORMATION
------------------------------
POLYMER RESEARCH CORP. OF AMERICA
BALANCE SHEETS JUNE 30, 1998 AND DECEMBER 31, 1997
--------------------------------------------------------------------------------

                                                     June 30,       December 31,
                                                       1998             1997
                                                   -----------      -----------
                                                   (Unaudited)        (Note 1)


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Current portion of long-term debt                  $    33,438      $    31,244
Accounts payable                                        30,238           75,548
Accrued expenses and other
  current liabilities                                  249,350          349,802
Income taxes payable                                   238,849           56,100
Deferred revenue                                       202,450          252,450
                                                   -----------      -----------
Total current liabilities                              754,325          765,144
                                                   -----------      -----------

LONG-TERM DEBT  (NOTE 2)                             1,434,365        1,451,770
                                                   -----------      -----------

STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per
  share, authorized 4,000,000 shares,
  issued 1,685,784 and 1,685,784
  shares respectively                                   16,857           15,805
Capital in excess of par value                       3,120,117        2,850,332
Retained earnings                                      339,765          111,029
Unrealized holding losses                               (1,028)          (2,236)
Less: Treasury stock, at cost
  91,837 shares in 1998 and
  91,837 shares in 1997                                (56,737)         (56,737)
                                                   -----------      -----------
Total Stockholders' Equity                           3,418,974        2,918,193
                                                   -----------      -----------

TOTAL                                              $ 5,607,664      $ 5,135,107
                                                   ===========      ===========



The accompanying notes are an integral part of these
financial statements. 
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<PAGE>


POLYMER RESEARCH CORP. OF AMERICA
STATEMENTS OF OPERATIONS FOR THE
THREE MONTHS ENDED JUNE 30, 1998 AND 1997 (UNAUDITED) AND
THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997 (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                             Three Months Ended                 Six Months Ended
                                                  June 30,                           June 30,
                                        --------------------------         --------------------------
                                             1998           1997                1998           1997
<S>                                     <C>            <C>                 <C>            <C>        
Net revenues:
  Product sales                         $   127,759    $   320,399         $   549,419    $   553,079
  Research                                1,234,326      1,129,601           3,000,842      2,277,901
                                        -----------    -----------         -----------    -----------
  Total                                   1,362,085      1,450,000           3,550,261      2,830,980
                                        -----------    -----------         -----------    -----------
Cost of Revenues                                                           
  Product sales                             183,718        258,758             553,151        489,889
  Research                                  253,405        233,608             542,708        495,260
                                        -----------    -----------         -----------    -----------
  Total                                     437,123        492,366           1,095,859        985,149
                                        -----------    -----------         -----------    -----------
Gross Profit on Revenues                    924,962        957,634           2,454,402      1,845,831
                                                                           
Selling, General, and                                                      
 Administrative Expenses                    813,865        746,822           1,641,796      1,407,179
                                        -----------    -----------         -----------    -----------
Income from Operations                      111,097        210,812             812,606        438,652
                                        -----------    -----------         -----------    -----------
Other Revenues (Expenses):                                                 
  Interest income                            28,501         16,952              44,750         34,068
  Interest expense (See note 2)             (38,665)       (39,518)            (77,529)       (79,017)
                                        -----------    -----------         -----------    -----------
  Total                                     (10,164)       (22,566)            (32,779)       (44,949)
                                        -----------    -----------         -----------    -----------
Income before income taxes                  100,933        188,246             779,827        393,703
Provision for income taxes                  (43,500)       (89,499)           (365,000)      (188,000)
                                        -----------    -----------         -----------    -----------
Net Income                              $    57,433    $    98,747         $   414,827    $   205,703
                                        ===========    ===========         ===========    ===========
Basic earnings per Share                $      0.04    $      0.06*        $      0.26    $      0.13
                                        ===========    ===========         ===========    ===========
Weighted average number of shares                                          
  outstanding during the period           1,593,947      1,593,947*          1,593,947      1,593,947
                                        ===========    ===========         ===========    ===========
</TABLE>
                                                                       
* Restated for 1998 5% stock dividend



The accompanying notes are an integral part of these financial statements.

--------------------------------------------------------------------------------
                                                                               3


<PAGE>


POLYMER RESEARCH CORP. OF AMERICA
---------------------------------
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997 
(UNAUDITED)
--------------------------------------------------------------------------------


OPERATIONS:                                             1998              1997
                                                        ----              ----

Net Income                                           $ 414,827        $ 205,703
Charge not affecting funds -
    Issuance of incentive stock                         28,439
    Unrealized holding losses                            1,208            5,428
    Depreciation and amortization                       49,998           48,978
                                                     ---------        ---------
Funds Provided by operations                           494,472          260,109
                                                     ---------        ---------
    Asset and liability management:
    Accounts receivable                                 17,715           (6,637)
    Inventories                                         24,742            3,258
    Other current assets                               (56,139)          75,225
    Other assets                                           466              214
    Accounts payable                                   (45,310)          (8,794)
    Accrued expenses and other                        (100,452)        (114,401)
    Income taxes  payable                              182,749
    Deferred revenue                                   (50,000)        (368,300)
                                                     ---------        ---------
    Other current liabilities
Increase (Decrease) in net
    operating assets                                   (26,229)        (419,435)
                                                     ---------        ---------
Total                                                  468,243         (159,326)
                                                     ---------        ---------

FUNDS USED BY
 FINANCING
Certificates of deposit                                 (3,048)         (15,953)
Investment securities                                   98,551            1,168
Issuance of stock                                       56,309           20,000
Payments on long term debt                             (15,211)         (13,770)
                                                     ---------        ---------
Total                                                  136,601           (8,555)
                                                     ---------        ---------

INVESTMENT IN LAND, PROPERTY,
 AND EQUIPMENT                                          (7,376)
                                                     --------- 

INCREASE (DECREASE) IN CASH                          $ 597,468        $(167,881)
                                                     =========        =========


The accompanying notes are an integral part of these
financial statements. 
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<PAGE>


                        POLYMER RESEARCH CORP. OF AMERICA
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - Financial statements

In the opinion of the management of Polymer Research Corp. of America (the
Company), the accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-QSB and do not include all of the
information and footnotes required by generally accepted accounting principles.
Management believes that the results herein reflect all adjustments which are in
the opinion of management necessary to fairly state the results and current
financial condition of the Company for the respective periods. These statements
should be read in conjunction with the financial statements and notes thereto
included in the Company's report filed under cover of Form 10-KSB.

The results of operations for the six month period is not necessarily indicative
of the results for an entire year.

The balance sheet at December 31, 1997 has been taken from the audited financial
statements as of that date.

NOTE 2 - Summary of Significant Accounting Policies

Business Activity

The Company is engaged in the research and development of the applications of
chemical grafting and sells products resulting from such research.

Credit Risk

Financial Instruments that potentially subject the company to credit risk
include investments in United States Treasury bills notes and other certificates
of deposit, government agencies' securities and U.S. Government and New York
State mutual bond funds. Future Changes in economic conditions may make the
investment less valuable.

In addition, financial instruments that potentially subject the Company to
credit risk also include accounts receivable. Accounts receivable resulting from
research or product sales are not collateralized.

The Company maintains deposits with financial institutions in excess of amounts
insured by the FDIC.


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<PAGE>



Pervasiveness of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates

Revenue Recognition

Revenue from research contracts is recognized upon two criteria: first, client
approval of performance of a specific stage of the contract and, second,
collection of the resulting revenue is assured. Revenue from production is
recognized when products are shipped for sale to customers.

Inventories

Inventories are valued at the lower of cost or market, with cost determined
using the first-in, first-out method and with market defined as the lower of
replacement cost or realizable value.

Investment Securities

The Company determines the appropriate classification of securities at the time
of purchase. If the Company has the intent and the ability at the time of
purchase to hold securities until maturity or on a long-term basis, they are
classified as investments and carried at amortized historical cost. Securities
to be held for indefinite periods of time and not intended to be held to
maturity or on a long-term basis are classified as available for sale and
carried at face value. Securities held for indefinite periods of time include
securities that management intends to use as part of its asset and liability
management strategy and that may be sold in response to changes in interest
rates, resultant prepayment risk and other factors related to interest rate and
resultant prepayment risk changes.

Realized gains and losses on dispositions are based on the net proceeds and the
adjusted book value of the securities sold, using the specific identification
method. Unrealized gains and losses on investment securities available for sale
are based on the difference between book value and fair value of each security.
These gains and losses are credited or charged to shareholders' equity, whereas
realized gains and losses flow through the Company's operations.


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<PAGE>


Property and Equipment

Property and equipment is stated at cost. The costs of additions and betterments
are capitalized and expenditures for repairs and maintenance are expensed in the
period incurred. When items of property and equipment are sold or retired, the
related costs and accumulated depreciation are removed from the accounts and any
gain or loss is included in income.

The company capitalizes leased equipment where the terms of the lease result in
the transfer to the Company of substantially all of the benefits and risks of
ownership of the equipment.

Depreciation and amortization of property and equipment is provided utilizing
the straight-line method over the estimated useful lives of the respective
assets as follows: 
Transportation equipment                     3 to 5 years
Machinery and equipment                           5 years
Furniture and fixtures                      5 to 10 years
Building and improvements                        40 years
Office equipment under capital leases             5 years
                                       
Deferred Financing Costs

Costs incurred in obtaining the mortgage discussed below have been capitalized
and are being amortized over the term of the related obligation utilizing the
straight-line method.

Income Taxes

The Company accounts for its income taxes utilizing Statement of Financial
Accounting Standards ("SFAS") No. 109 "Accounting for Income Taxes" which
requires that the Company follow the liability method of accounting for income
taxes.

The liability method provides that deferred tax assets and liabilities are
recorded based on the difference between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes, referred to as
"temporary differences." The adoption of the new statement did not have a
material impact on the Company's financial position or results of operations.

Net Earnings Per Share

Earnings per share are computed based upon the weighted
average number of common shares outstanding during each year. 


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<PAGE>



Profit Sharing Plan

Effective January 1, 1990, the Company adopted a qualified non-contributory
profit sharing plan. The plan provides its eligible employees with a source of
retirement income, as well as provide assistance in other circumstances such as
death or disability. Eligible employees must meet two requirements to become
participants; attainment of age 21 and completion of one year of service with
the Company. Employer contributions are determined, if any, at the Board of
director's discretion. A percentage of the benefits vest after three years of
qualifying service. Since inception the company has contributed $100,000 each
year.

NOTE 3 - Provision for Income Taxes  (First six months)

                                             1998                 1997
                                             ----                 ----
Federal                                    $218,000            $112,000
State and local                             147,000              76,000
                                           --------            --------
Total                                      $365,000            $188,000
                                           ========            ========

NOTE 4 - Mortgage Liability

In September of 1996 the Company prepaid $800,000 due under a mortgage on the
Company's building and modified its payment schedule. As modified, the Company
is obligated to pay the mortgage note in equal monthly instalments of $15,457
including interest at 10.5% per annum through June, 2000, secured by the related
building. Such mortgage is being amortized using a 25 year amortization. The
entire unpaid principal balance is due in a balloon payment of $1,398,330 on
June 1, 2000. In connection with the modification, the company paid the
Mortgagee $45,000.

NOTE - 5 - Restricted Stock Issuance

On April 2, 1998 the Company authorized the issuance of 30,800 restrictive
shares of its common stock as incentive to approximately 35 employees. The
Company has valued the shares at $2.77 per share and will recognize compensation
expense for $85,316 rateably throughout the year.

NOTE - 6 - Stock Dividend

On March 2, 1998 the Company declared a 5% stock dividend to shareholders, paid
April 2, 1998. The transaction was valued based upon the closing market price of
the Company's stock on March 2, 1998, which was $2.50 per share. Retained
earnings has been charged for $ 186,090 as a result of the issuance of 74,436
shares which was credited to common stock and Capital in excess of par value.


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<PAGE>


                        POLYMER RESEARCH CORP. OF AMERICA

            ITEM 2 - MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

CAPITAL RESOURCES AND LIQUIDITY

Cash, Investments, and Investment securities have increased collectively by
$501,394 since December 31, 1997. The increase is principally due to net income
of the fist six months.

Cash is generated by and used by the Company through its operations. Neither the
issuance of stock nor the acquisition of debt was in 1997, nor expected to be in
1998, significant sources of cash for use in operations.

The rate of current assets to current liabilities at June 30, 1998 increased to
3.68 to 1.0 as compared to 2.95 to 1.0 at December 31, 1997. The increase is a
result of net earnings in 1998 and the decrease in deferred revenue.

Based on the above, the Company's cash, investment, and investment securities
position at June 30, 1998 is deemed sufficient to cover any unforeseen sales
downturn in the short term as it is equal to approximately nine months selling,
general, and administrative expenses. Over both the long and short term,
liquidity will be a direct result of sales and related net earnings. The company
expects to use its available cash to satisfy the mortgage on its building when
it becomes due in June 2000.

B.   RESULTS OF OPERATIONS

Three months ended June 30, 1998 v. 1997

Net revenues for the second quarter of 1998 were $ 1,362,085, a decrease of
$87,915 (7%) from the second quarter of 1997. Research sales increased $104,725
(1%) in the second quarter of 1998 over 1997. Product sales decreased $192,640
(60%) in the second quarter of 1998 from 1997. Product sales decreased as many
large customers bought large quantities in the first quarter of 1998 and are
still using their inventory.

The cost of revenues in research decreased from 24% in the second quarter of
1997 to 21% in the same quarter of 1998 due to reductions in staff and in
repairs and maintenance expenses.

Costs of product sales increased from 81% in the second quarter of 1997 to 144%
in the same quarter of 1998


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<PAGE>


principally as a result of decreased volume while utilizing the same staff.
Product sales, while not always profitable are very useful in helping to obtain
research contracts as clients are aware that the company is able to produce the
results of research findings.

Selling, general, and administrative expenses increased as a percentage of sales
to 60% for the second quarter of 1998 from 52% for the comparable quarter of
1997 as a result of increased salaries, legal, insurance, and travel expenses.

Net income decreased from $ 98,747 (7% of sales) in 1997 to $ 57,433 (4% of
sales) in 1998, principally as the result of decreased revenues coupled with
increased Selling, General, and Administrative expenses.

Six months ended June 30, 1998 v. 1997

Net revenues for the first six months of 1998 were $ 3,550,261 an increase of
$719,281 (25%) over the first six months of 1997. Research sales increased
$722,941 (32%) in the first six months of 1998 over 1997 primarily as a result
of the increasing reputation of the company research results triggering further
demand for research work. Product sales decreased $ 3,660 (1%) in the first six
months of 1998 over 1997.

The cost of revenues in research decreased from 22% in the first six months of
1997 to 18% in the same period of 1998 due to increased volume without increases
in staff size.

Costs of product sales increased from 89% in the first six months of 1997 to
101% in the same period of 1998 principally as a result of decreased sales as
well as the same staff level with decreased sales.

Selling, general, and administrative expenses decreased as a percentage of sales
to 46% from 50% for the first six months of 1998 as compared to the first six
months of 1997 as a result of increased salaries, legal, insurance, and travel
expenses.

Net income increased from $ 205,703 (7% of sales) in 1997 to $414,827 (12% of
sales) in 1997, principally as the result of increased revenues and improved
gross margins.


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<PAGE>


PART II - OTHER INFORMATION

ITEM 1 - Legal Proceedings:

The Company is party to various lawsuits arising in the ordinary course of
business. The Company's financial statements include reserves for legal expenses
and any unfavorable outcomes in amounts management believes to be reasonable. In
the opinion of management, such lawsuits should not have a material adverse
effect on the Company's financial condition.

ITEM 2 - Changes in Securities:

On April 2, 1998 the Company authorized the issuance of 30,800 restrictive
shares of its common stock as incentive to approximately 35 employees to act as
incentive compensation. The Company has valued the shares at $2.77 per share and
will recognize compensation expense for $85,316 rateably throughout the year.

On March 2, 1998 the Company declared a 5% stock dividend to shareholders, paid
April 2, 1998. The transaction was valued based upon the closing market price of
the Company's stock on March 2, 1998, which was $2.50 per share. Retained
earnings has been charged for $ 186,090 as a result of the issuance of 74,436
shares.

ITEM 3 - Defaults Upon Senior Securities: None

ITEM 4 - Submission of Matters to a Vote of Security Holders:

The Company held its annual meeting on May 19, 1998. At such meeting the
following persons were elected directors:

Director and votes for:
         Carl Horowitz         1,181,724
         Irene Horowitz        1,181,724
         John Ryan             1,181,724
         Alice Ryan            1,181,724
         Boris Jody            1,181,724
         Mohan Sanduja         1,181,724
         Terry J. Wolfgang     1,181,724

ITEM 5 - Other Information: None

ITEM 6 - Exhibits and Reports on Form 8-k: None


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<PAGE>



                                    FORM 10-Q

                                   SIGNATURES



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.


                                       POLYMER RESEARCH CORP. OF AMERICA,
                                                  (REGISTRANT)


Date July 29, 98                       /s/ CARL HOROWITZ
                                       ----------------------------------
                                       Carl Horowitz, President and Chief
                                           Accounting Officer


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