U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
---------------------------------------

FORM 10-QSB

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

For the quarterly period ended September 30, 2005
Commission File No. 2-67918

Mikros Systems Corporation
--------------------------
(Exact Name of Small Business Issuer as Specified
 in its Charter)

Delaware				14-1598200
--------				----------
(State of Other Jurisdiction         (I.R.S. Employer
 of Incorporation or Organization)   Identification No.)

707 Alexander Road, Building Two, Suite 208,
Princeton, New Jersey 08540
-------------------------------------------
(Address of Principal Executive Offices)

609-987-1513
------------
(Issuer's Telephone Number, Including Area Code)

-------------------------------------------------
(Former Address, If Changed Since Last Report)

Check whether the Issuer: (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
past 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:_______

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).

Yes ________      No:____X____

State the number of shares outstanding of each of the Issuer's
classes of common stock, as of November 5, 2005:

Class                           Number of Shares
-----                           ----------------
Common Stock, Par Value $.01      31,766,753

Transitional Small Business Disclosure Format (check one):

Yes:___  ___        No:__X____






TABLE OF CONTENTS
						     PAGE #
PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements                  3

	CONDENSED BALANCE SHEET
	As of September 30, 2005                          4

    	CONDENSED STATEMENTS OF INCOME
	For the Three Months Ended and Nine Months Ended
                   September 30, 2005 and 2004                 5

	CONDENSED STATEMENTS OF CASH FLOWS
	For the Nine Months Ended September
                        30,   2005 and 2004                              6

	NOTES TO THE CONDENSED FINANCIAL
                   STATEMENTS                                             7

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

         Overview                                11

	  Results of Operations                                        13

	  Liquidity and Capital Resources                      14

 Item 3. Controls and Procedures                                        15

PART II.  OTHER INFORMATION

	   Item 6.  Exhibits                                                         16

	   SIGNATURES                                                            17



































PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements.

Certain information and footnote disclosures required
under accounting principles generally accepted in the
United States of America have been condensed or
omitted from the following financial statements
pursuant to the rules and regulations of the Securities and
Exchange Commission, although Mikros Systems Corporation
(the "Company") believes that such financial disclosures are
adequate to assure that the information presented is not
misleading in any material respect.  The following financial
statements should be read in conjunction with the year-end
financial statements and notes thereto included in the
Company's Annual Report on Form 10-KSB for the fiscal year
ended December 31, 2004.

The results of operations for the interim periods presented
herein are not necessarily indicative of the results to be
expected for the entire fiscal year.










MIKROS SYSTEMS CORPORATION
CONDENSED BALANCE SHEET
(UNAUDITED)

			        September 30,
ASSETS			          2005
------ 			         --------

CURRENT ASSETS

  Cash					$  85,432
  Receivable on Government
      Contracts                 	  236,157
  Other Current Assets                   22,627
					  --------
  TOTAL CURRENT ASSETS		          344,216
   					  -------

FIXED ASSETS

  EQUIPMENT				     4,383
    Less: Accumulated Depreciation       (1,950)
					  --------
FIXED ASSETS, NET                         2,433
				         --------
TOTAL ASSETS		  	 	$ 346,649
                                       =========

  See Accompanying Notes to Condensed Financial Statements.







MIKROS SYSTEMS CORPORATION
CONDENSED BALANCE SHEET
(UNAUDITED)


                                                September 30,
LIABILITIES AND SHAREHOLDERS' EQUITY                 2005
						     ----------
CURRENT LIABILITIES

  Accrued Payroll and Payroll Taxes		      $ 46,579
  Accrued Expenses				         5,243
  Accounts Payable				       149,335
                                                  ----------
TOTAL CURRENT LIABILITIES                          $201,157
                                                  ----------

REDEEMABLE SERIES C PREFERRED STOCK
  par value $.01 per share, authorized 150,000
  shares, issued and outstanding 5,000 shares       80,450
  		                                   --------

SHAREHOLDERS' EQUITY

  Preferred Stock, convertible,
  par value $.01 per share, authorized 2,000,000
  shares, issued and outstanding 255,000 shares     2,550

  Preferred Stock, Series B convertible, par value
  $.01 per share, authorized 1,200,000 shares, issued
  and outstanding 1,102,433 shares                  11,024

  Preferred Stock, Series D, par value $.01 per
  share, 690,000 shares authorized, issued and
  outstanding                                        6,900

  Common Stock, par value $.01 per share,
  authorized 60,000,000 shares, issued and
  outstanding 31,766,753                           317,668

  Capital in excess of par                      11,422,976
  Accumulated deficit                          (11,696,076)
                                                -----------
TOTAL SHAREHOLDERS' EQUITY                          65,042
                                                -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $  346,649
                                               ============

See Accompanying Notes to Condensed Financial Statements.










MIKROS SYSTEMS CORPORATION
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)


			           Three Months Ended,	      Nine Months Ended,

-------------   --------------   -------------   -------------

Revenues:

  Contract Revenue	      $	   444,970  $	217,750		$ 1,236,679	 $ 724,820

Cost of Sales	    		   276,114 	148,055		    748,759       468,262
  --------------  --------------    ------------    ------------
Gross Margin	   	  	   168,856	 69,695		    487,920       256,558
       --------------  --------------    ----------    -----------

Expenses:

  Engineering		           44,530      34,473		     92,663	     69,713
  General & Administrative        96,710     49,238		    293,363	    129,630
 --------------  --------------    -----------     -------------
Total Expenses                   141,240     83,711		    386,026	    199,343
 --------------  --------------    -----------     -------------

Operating Income (Loss)	    27,616    (14,016)            101,894         57,215

   Other Income		         0     67,298		          0         67,298

---------------  -------------    -----------     -------------

Net Income                 $     27,616   $  53,282		$   101,894      $  124,513
=============  ==============    ============      ==========

Basic and diluted
 earnings per share	     $       0.00   $   0.00		$      0.00	  $    0.00
===========

Weighted average number
   31,766,753	 31,766,753
==============  ==============    ============     ============


See Accompanying Notes to Condensed Financial Statements.










MIKROS SYSTEMS CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

                                     The Nine Months Ended
                         September 30, 2005  September 30, 2004
                          ------------------   ------------------


Cash Flow From Operating Activities:
   Net Income                            $   101,894 	   $  124,513
   Adjustments to reconcile Net Income
   to net cash provided by
   Operating Activities:
   Depreciation       			          1,013               3,608
   Net Changes in Operating Assets and
   Liabilities
   Increase in:
   Accounts Receivable			        (64,016)	      (58,891)
   Other Current Assets			(18,546)                (175)

   Increase (Decrease) in:
   Accounts Payable  			         68,406                3,012
   Accrued Payroll and Payroll Taxes	           (447)             (11,499)
   Other Accrued Expenses	       	        (93,554)   	       (15,405)
                                             ---------            ---------
Net Cash provided by (used in)
    Operations                                 (5,250)              45,163
                                             ---------	      ---------
Cash Flow from Investing Activities
    Purchase of Equipment                      (3,041)                  -
                                             ---------            ----------

Net Cash used in Investing Activities          (3,041)                  -
                                             ---------            ----------

Net Increase (Decrease) in Cash                (8,291)              45,163
Cash, beginning of the period                  93,723                8,828
                                             ---------             ---------
Cash, end of period           	    $     85,432 	   $    53,991
                                             ========= 	       =========



See Accompanying Notes to Condensed Financial Statements.







MIKROS SYSTEMS CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
 September 30, 2005
(UNAUDITED)


Note 1  Basis of Presentation:

The financial statements included herein have been prepared by
the Company, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission.  Certain information and
footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted
pursuant to such rules and regulations.  These financial statements
should be read in conjunction with the financial statements
and notes thereto included in the Company's Annual Report on Form
10-KSB for the year ended December 31, 2004.

In the opinion of the Company's management, the accompanying
unaudited financial statements contain all adjustments,
consisting solely of those which are of a normal recurring
nature, necessary to present fairly its financial position as
of September 30, 2005 and the results of its operations and
its cash flows for the three months and nine months ended
September 30, 2005.

Interim results are not necessarily indicative of results
for the full fiscal year.

The Company's financial statements have been prepared
assuming that the Company will be able to continue as
a going concern.  The Company has sustained substantial
operating losses in recent years.  In addition, the Company
has used substantial amounts of working capital in its
operations.  These conditions raise substantial doubt
about the Company's ability to continue as a going
concern.  Management's plans and intentions on
the going concern issue are discussed below.  These financial
statements do not include any adjustments that would be
required if the Company were unable to continue as a going
concern.

The Company's ability to continue as a going concern is dependent
upon its ability to generate sufficient cash flows to meet its
obligations as they come due. Management has pursued Small Business
Innovative Research (SBIR) contracts in order to generate cash flow,
while also allowing development of new potential products.
The Company was awarded an SBIR Phase I firm-fixed
price contract from the Office of Naval Research (ONR) for approximately
$100,000. In September 2004, the Company was awarded an SBIR Phase
III contract from the Naval Surface Weapons Center  Dahlgren, VA
valued at approximately $2,400,000. The contract is to complete the
development and to begin initial production of an intelligent test
tool for Navy radars.  The Multi Function Distributed
Analysis Tool (MFDAT) has been designed by the Company under a $1,000,000
SBIR Phase II contract, which began in August 2003.

If cash flows are insufficient, there would be a material adverse
effect on the Company's financial position and operations and
its ability to continue as a going concern.  This would force
the Company to further reduce its expenditures, reduce its workforce,
sell certain assets or possibly explore additional alternatives,
including seeking bankruptcy protection.

In view of these matters, realization of a major portion of the assets
in the accompanying balance sheet is dependent upon continued operations
of the Company, which in turn is dependent on the Company being able to
sustain sufficient cash flow to support further development of its new
products and for continuing operations.  Management believes that
actions presently being taken to sustain the Company's operating and
financial requirements will allow it to continue as a going concern.


Note 2  Shareholder's Equity:


CONVERTIBLE PREFERRED STOCK
---------------------------

Each share of the convertible preferred stock can be redeemed at the
Company's option for $1.00 per share or can be converted into shares of
the Company's common stock.  Each share of preferred stock is
convertible into one share of common stock.  This conversion rate is
subject to adjustment in certain circumstances.  Upon any liquidation,
dissolution or winding up of the Company, each holder will be entitled
to their redemption price once shareholders of Series B and Series C
preferred stock have been fully paid.


SERIES B CONVERTIBLE PREFERRED STOCK
------------------------------------

Each share of Series B Preferred Stock is convertible into three
shares of the Company's common stock at a price of $0.33 per share
of common stock to be received upon conversion and entitles the
holder thereof to cast three votes on all matters to be voted
on by the Company's stockholders.  Upon any liquidation,
dissolution, or winding up of the Company, each holder of
Series B Preferred Stock will be entitled to be paid, after
all distributions of payments are made upon the Series C
Preferred Stock and before any payment is made upon the
Company's Convertible Preferred Stock, an amount in cash equal
to $1.00 for each share of Series B Preferred Stock held,
and such holders will not be entitled to any further payment.

MANDATORILY REDEEMABLE SERIES C PREFERRED STOCK
-----------------------------------------------

The Series C Preferred Stock is not convertible into any
other class of the Company's stock and is subject to redemption
at the Company's option at any time and redemption is mandatory if
certain events occur, such as capital reorganizations, consolidations,
mergers, or sale of all or substantially all of the Company's assets.
Upon any liquidation, dissolution or winding up of the Company, each
holder of Series C Preferred Stock will be entitled to be paid, before
any distribution or payment is made upon any other class of stock of
the Company, an amount in cash equal to the then effective redemption
price for each share of Series C Preferred Stock held by such holder,
and the holders of Series C Preferred Stock will not be entitled to any
further payment.

SERIES D PREFERRED STOCK
------------------------

The Series D Preferred Stock provides for an annual cumulative
dividend of $0.10 per share.  The shares are not convertible into
any other class of stock and are subject to redemption at the
Company's option at any time at a redemption price of $1.00
per share plus all unpaid cumulative dividends.  Upon liquidation,
dissolution or winding up of the Corporation, each holder of Series
D Preferred Stock will be entitled to be paid, after all distributions
or payments are made upon the Corporation's Convertible Preferred
Stock, Series B Preferred Stock, and Series C Preferred Stock, an
amount in cash equal to the Redemption Price for each share of
Series D Preferred Stock held by such holder. The holders of
Series D Preferred Stock will not be entitled to any further payment.

As of September 30, 2005, there were dividends in arrears
on shares of Series D Preferred Stock of approximately $810,750.



Note 3  Earnings Per Share

The Company's calculation of earnings per share
is as follows for the periods presented:




	The Three Months Ended     The Nine Months Ended
              Sept. 30, 2005 Sept. 30, 2004 Sept. 30, 2005   Sept. 30, 2004
528:   ------------- -------------  --------------  ----------------

Net Income Applicable to
 Common Stockholders	    $  27,616      $   53,282	      $	 101,894	 $  124,513
==========      ============      ============

Average Basic Shares
 Outstanding       31,766,753    31,766,753        31,766,753       31,766,753

Assumed conversion of
preferred stock	      3,562,299     3,562,299         3,562,299        3,562,299

Effect of dilutive
options and warrants	         58,947             -		    46,666                -
 ------------     ------------
Average dilutive shares
35,387,999    35,329,052        35,375,718        35,329,052
 =============    =============

Net Earnings Per Common
0.00     $     0.00      $       0.00     $        0.00
=============    =============


A total of 5,570,818 common stock options and warrants were not
included in the computation of diluted earnings per share because of
their anti-dilutive effect for the quarter ended September 30, 2005.

A total of 5,855,737 common stock options and warrants were not included
in the computation of diluted earnings per share because of
their anti-dilutive effect for the nine months ended
September 30, 2004.


Note 4 - New Accounting Pronouncements

In December 2004, the Financial Accounting Standards Board (FASB) issued
Statement No. 123(R), "Share-Based Payment."  Statement No. 123(R) replaces
Statement No. 123, "Accounting for Stock-Based Compensation," and supersedes
APB Opinion No. 25, "Accounting for Stock Issued to Employees."  Statement No.
123(R) requires compensation costs related to share-based payment transactions
to be recognized in the financial statements over the period that an employee
provides service in exchange for the award.  Public companies are required to
adopt the new standard using a modified prospective method and may elect to
restate prior periods using the modified retrospective method.  Under the
modified prospective method, companies are required to record compensation cost
for new and modified awards over the related vesting period of such awards
prospectively and record compensation cost prospectively for the unvested
        portion,
at the date of adoption, of previously issued and outstanding awards over the
remaining vesting period of such awards.  No change to prior periods presented
is permitted under the modified prospective method.  Under the modified
retrospective method, companies record compensation costs for prior periods
retroactively through restatement of such periods using the exact pro forma
amounts disclosed in the companies' footnotes.  Also, in the period of adoption
and after, companies record compensation cost based on the modified prospective
method.

On April 14, 2005, the Securities and Exchange Commission ("SEC") adopted a
new rule that amends the compliance dates for Financial Accounting Standards
Board's Statement of Financial Accounting Standards No. 123 (revised 2004),
"Share-Based Payment" ("SFAS No. 123R"). Under the new rule, the Company is
required to adopt SFAS No. 123R in the first annual period beginning after
December 15, 2005 for SB issuers. The Company has not yet determined the
method of adoption or the effect of adopting SFAS No. 123R.

In May 2005, FASB issued SFAS 154, "Accounting Changes and Error Corrections".
The Statement requires retroactive application of a voluntary change in
accounting principle to prior period financial statements unless it is
impracticable. SFAS 154 also requires that a change in method of depreciation,
amortization, or depletion for long-lived, non-financial assets be accounted
for as a change in accounting estimate that is affected by a change in
accounting principle.  SFAS 154 replaces APB Opinion 20, "Accounting Changes",
and SFAS 3, "Reporting Accounting Changes in Interim Financial Statements".
SFAS 154 will be effective for accounting changes and corrections of errors
made in fiscal years beginning after December 15, 2005.  Management currently
believes that adoption of the provisions of SFAS 154 will not have a material
impact on the Company's condensed financial statements.

In June 2005, FASB's Emerging Issues Task Force (EITF) reached a consensus
on Issue No. 607:     05-6, "Determining the Amortization Period of Leasehold
Improvements Purchased after  Lease Inception or Acquired in a Business
Combination" ("EITF 05-6").  This guidance requires that leasehold
improvements acquired in a business combination or purchased
612:subsequent  to the inception of  a lease be amortized over the shorter
613:of the useful life of   the assets or a term that  includes required lease
        periods and renewals that are reasonably assured at the  date of the
        business combination or purchase.  This guidance is  applicable only
        to leasehold improvements that are purchased or acquired in reporting
        periods beginning after June 29, 2005.  The Company
is evaluating the impact,  if any, of   EITF 05-6 on its financial statements.

In July 2005, FASB issued a proposed interpretation of FAS 109, "Accounting
for Income  Taxes", to clarify certain aspects of accounting for uncertain tax
positions, including  issues related to the recognition and measurement of
those tax positions.  If adopted as  proposed, the interpretation would be
effective in the fourth quarter of 2005, and any  adjustments required to be
recorded as a result of adopting the interpretation would be reflected as a
cumulative effect from a change in accounting principle.  We are currently
in the process of determining the impact of adoption of the interpretation as
proposed on  our financial position or results of operations.




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



OVERVIEW
--------

Mikros Systems Corporation ("Mikros") is an advanced
technology company specializing in the research and development of
electronic systems technology primarily for military applications.
Classified by the U.S. Department of Defense (DoD) as a small business,
our capabilities include technology management, electronic systems
engineering and integration, radar systems engineering, combat/Command,
Control, Communications, Computers & Intelligence (C4I) systems
engineering, and communications engineering. Our headquarters are
located at 707 Alexander Road, Suite 208, in Princeton, New Jersey.
References to "we", "us", "our" or the "Company" refer to Mikros unless
the context requires otherwise.

In May 2002, the U.S. Navy's Dahlgren Division, Naval Surface Warfare Center
(NSWCDD) awarded us a $100,000 Phase I SBIR contract to investigate the
 feasibility of a Multi-Function Distributed Analysis Tool, or MFDAT.  As
 envisioned, the  MFDAT was to be a semi-automated, intelligent test tool
 designed to support U.S. Navy technical personnel in the maintenance,
 alignment and diagnosis of  complex electronic systems.  The overall objectives
 of the MFDAT program  were to:

-    achieve higher readiness through reduced maintenance downtime and
     better system assurance;

-    increase system reliability by supporting predictive failure analysis
     and proactive remediation; and

-    promote more effective use of technicians through increased automation,
     distance support and interactive training.

The completed Phase I program produced an operational, proof-of-concept,
software demonstration/simulation model of the MFDAT system.

In August 2003, we were awarded a $750,000 Phase II SBIR contract from NSWCDD
to continue our development of the MFDAT system.  The Phase II program produced
a prototype system capable of performing alignment and maintenance procedures
on the Aegis AN/SPY-1A radar system.  This MFDAT prototype system proved the
viability of incorporating the functionality of multiple electronic test
        equipment  into a single, programmable system.

In general, the MFDAT technology that has been developed enables common testing
processes, training, and equipment for electronic system support thereby
providing a viable path toward meeting the Navy's readiness goals while reducing
the dependency on manpower, manpower training, and discrete test equipment.
The success of our MFDAT Phase II program prompted the Navy to award an
additional $250,000 enhancement to the Phase II contract to accelerate
the transitioning, or "commercializing" in SBIR parlance, of the technology
into a product suitable for naval shipboard use.

In September 2004, we received another award from NSWCDD valued at
approximately $2,400,000 to commercialize our MFDAT technology into a
fully-integrated, man-portable test tool qualified for U.S. Navy fleet use.
This contract is referred to as an SBIR Phase III contract, and it secures
our SBIR data rights in the MFDAT technology for a period of five years
beyond the last delivery under the contract.  We have named the resulting
product ADEPTTM, an acronym for the Adaptive Diagnostic Electronic Portable
Testset. The initial application for ADEPTTM will be as a computer-aided
alignment  and maintenance tool for the AN/SPY-1 radar system, which is the
primary air  and surface radar for the Aegis Combat System installed on the
Ticonderoga (CG-47) and Arleigh Burke (DDG-51) class warships.

Also in 2004, we began work on another independent SBIR subject area.
In June 2004, the Office of Naval Research  awarded us a $100,000 SBIR
Phase I contract to analyze the potential for interference between
emerging Wireless Local Area Network systems (WLANs) and DoD radar systems,
and to evaluate and quantify the potential improvements which may be
afforded by selected mitigation techniques.  This Radar Wireless
Spectral Efficiency (RWSE) SBIR Phase I program was completed in
January 2005. We concluded that the potential exists for mutual
interference between WLANs and DoD radars, particularly during land-based,
littoral and harbor navigation operation of DoD radars.  We recommended
that further study of the identified mutual interference mechanisms
was warranted, including empirical testing to characterize
the effects of the interference and the potential mitigation techniques
identified during the Phase I program.  Mikros is pursuing multiple SBIR
       Phase II programs to continue this research for the U.S. Navy.

In April 2005, under the MFDAT Phase III program, we subcontracted
the manufacturing of the ADEPTTM equipment to DRS Laurel Technologies in
Johnstown, Pennsylvania.  A contract for $876,000 has been awarded
by Mikros to DRS Laurel Technologies. This new equipment is to be
marketed under the ADEPT product name and is planned for installation
in the US Navy's Aegis Cruisers.

In May 2005, under the MFDAT Phase III program, we subcontracted to In-Phase
Technologies, Inc. of Clarksburg, New Jersey to assist in ADEPTTM
software development, integration and qualification.  A contract for
$299,000 has been awarded by Mikros to In-Phase Technologies, Inc.

In July 2005, we awarded a subcontract to Lockheed Martin Corporation
in Moorestown, New Jersey to provide engineering technical services in
support of the ADEPT Phase III SBIR production
        and qualification contract.  As the  design agent of the AN/SPY-1 radar
system, Lockheed Martin will be providing expertise to assist us in the
verification and  qualification of ADEPT  as a SPY-1 maintenance and
alignment tool.  The total value of this time and  materials subcontract
        is expected to be  approximately $100,000.

Mikros has received the first production ADEPTTM enclosure.  The new
enclosure was exhibited at the Autotestcon 2005 trade show in September
2005. Currently, the ADEPTTM  unit is undergoing functional and
environmental  testing in preparation for field testing.   Mikros is in
contract negotiations with the U.S. Navy to continue the development
        and field testing  of ADEPT. A photo of the new ADEPT production
        unit may be seen  on the  Mikros website.  In conjunction with ongoing
        research and projects,  Mikros has filed  several patents with the U.S.
        Patent and Trademark Office  (USPTO).

Mikros continues to pursue several SBIR projects with Homeland Security,
        the U.S. Navy,  and other government agencies.

Statements contained or incorporated by reference in this
Quarterly Report on Form 10-QSB that are not based on historical
facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.  These forward-looking
statements regarding future events and our future results are based
on current expectations, estimates, forecasts, and projections
and the beliefs and assumptions of our management including, without
limitation, our expectations regarding results of operations, selling,
general and administrative expenses, research and development expenses
and the sufficiency of our cash for future operations.  Forward-looking
statements may be identified by the use of forward-looking terminology
such as "may," "will," "expect," "estimate," "anticipate," "continue,"
or similar terms, variations of such terms or the negative of those terms.
Such forward-looking statements include, without limitation,
statements regarding technology under development,
strategies and objectives.  The forward-looking
statements include risks and uncertainties, including,
but not limited to, the Company's ability to
continue as a going concern, the anticipated size of
and growth in the markets for the Company's products, the
trends favoring the use of the Company's proposed
commercial products, the anticipated demand for the
Company's new products, the timing of development and
implementation of the Company's new product offerings,
the utilization of such products by the Company's clients
and trends in future operating performance, and other
factors not within the Company's control.  The factors
discussed herein and expressed from time to time in the
Company's filings with the SEC could cause actual results
and development to be materially different from those
expressed in or implied by such statements.
The forward-looking statements made herein are only made as
of the date of this report and the Company undertakes no
obligation to publicly update such forward-looking statements
to reflect subsequent events or circumstances.

The discussion and analysis of the Company's financial condition
and results of operations are based upon the Company's condensed
financial statements, which have been prepared in
accordance with accounting principles generally accepted in the
United States.  The preparation of these financial
statements requires management of the Company to make
estimates and assumptions that affect the reported amounts
of assets and liabilities as of the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting periods.  Actual results could differ
materially from these estimates.  For a more detailed
explanation of judgments made in these areas, refer to
our Annual Report on Form 10-KSB for the year ended
December 31, 2004.

Changes to Accounting Policies and Estimates
--------------------------------------------

The Company's critical accounting policies and estimates are
set forth in the Company's Annual Report on Form 10-KSB for
the fiscal year ended December 31, 2004.  As of September 30, 2005,
there have been no changes to such critical accounting policies
and estimates.

Compliance with Sarbanes-Oxley Requirements
-------------------------------------------

Section 404 of the Sarbanes-Oxley Act of 2002 requires management
to perform an evaluation of its internal control over financial
reporting and have our independent auditors attest to such evaluation
as of December 31, 2007.  We have been actively preparing for the
implementation of this requirement by, among other things, establishing
an ongoing program to document, evaluate and test the systems and
processes necessary for compliance.  While we anticipate that we will
be able to comply on a timely basis with these requirements, unforeseen
delays may occur which could prevent us from achieving timely compliance.
If we fail to complete our evaluation on a timely basis and in a
satisfactory manner, or if our external auditors are unable to attest
on a timely basis to the adequacy of our internal controls, we may be
subject to additional scrutiny surrounding our internal controls
over financial reporting.

Results of Operations
---------------------

Three Months Ended September 30, 2005 and 2004

There were revenues of $444,970 for the third quarter ended
September 30, 2005 compared to $217,750 for the same period in 2004 and
there were cost of sales of $276,114 for the quarter ended
September 30, 2005 compared to $148,055 for the same period in 2004.
These increases are primarily attributable to the SBIR Phase
III contract awarded during September 2004.

Engineering costs for the quarter ended September 30, 2005
were $44,530 compared to $34,473 in the quarter ended September 30, 2004.
There were higher engineering costs for the quarter ended
September 30, 2005 due to the SBIR Phase III contract awarded during
September 2004.

General and administrative expenses for the quarter ended
September 30, 2005 were $96,710 compared to $49,238 in the quarter
ended September 30, 2004 due to higher costs incurred for
administrative and bid and proposal salaries and related costs. There
was no provision for income taxes during the three months ended
September 30, 2005 and 2004 due to the utilization of net operating
loss carryforwards.

Net income for the three months ended September 30, 2005  was
$27,616 compared to net income of $53,282 for the same period
in 2004. Net income for the three months ended September 30, 2004
included the write-off of certain of our obligations valued at
approximately $67,000. Such write-offs were classified as "Other Income"
for such period.

Nine Months Ended September 30, 2005 and 2004

There were revenues of $1,236,679 for the nine months ended September 30,
2005 compared to $724,820 for the same period in 2004 and there
were cost of sales of $748,759 for the nine months ended September 30, 2005
compared to $468,262 for the same period in 2004.  These increases are
primarily attributable to the SBIR Phase III contract awarded during
September 2004.

Engineering costs for the nine months ended September 30, 2005 were
$92,663 compared to $69,713 for the same period in 2004. These
increases are primarily attributable to the SBIR Phase III
contract awarded during September 2004.

General and Administrative expenses for the nine months ended
September 30, 2005 were $293,363 compared to $129,630 in the
nine months ended September 30, 2004.  These increases are primarily
attributable to the SBIR Phase III contract awarded during
September 2004. There was no provision for income taxes for the nine
months ended September 30, 2005 and 2004 due to the utilization of net
operating loss carryforwards.

Net income for the nine months ended September 30, 2005 was $101,894
versus $124,513 for the same period in 2004. Net income for the nine
months ended September 30, 2004 included the write-off of certain
of our obligations valued at approximately $67,000.  Such write-offs
were classified as "Other Income" for such period.


Liquidity and Capital Resources
-------------------------------

Since its inception, the Company has financed its operations
through debt, private and public offerings of equity
securities and cash generated by operations.

In September 2004, the Company was awarded an SBIR Phase III contract from the
Naval Surface Weapons Center  Dahlgren, Virginia valued at
approximately $2,400,000. The contract is to complete the
development and to begin initial production of an intelligent
test tool for Navy radars.  The MFDAT has been designed by the
Company under a $1,000,000 SBIR Phase II contract, which began in August 2003.

We maintain a line of credit facility for maximum
borrowings of up to $34,000.  There were no amounts outstanding
under this line at September 30, 2005.

Our financial statements have been prepared on the basis
that we will continue as a going concern, which
contemplates the realization of assets and satisfaction of
liabilities and commitments in the normal course of business.
For the nine months ended at September 30, 2005, we
had net income of $101,894 and working capital of $143,059.
However, we still had an accumulated deficit of $11,696,076.
Thus, there is substantial doubt about our ability to continue
as a going concern.

We intend to continue the development and marketing of our
commercial applications of our wireless communications technology
both directly and through third parties.  In order to continue
such development and marketing, we will be required to raise
additional funds.  We intend to consider the sale of additional
debt and equity securities under appropriate market conditions,
alliances or other partnership agreements with entities interested
in supporting our commercial programs, or other business transactions
which would generate resources sufficient to assure continuation of
our operations and research programs.  There can be no assurance,
assuming we successfully raise additional funds or enter into business
alliances, that we will achieve profitability or positive cash flow.
If we are unable to obtain additional adequate financing or enter
into such business alliances, management will be required to sharply
curtail our operations.  Failure to obtain such additional financing
on terms acceptable to us may materially adversely affect our ability
to continue as a going concern.



Contractual Obligations
-----------------------

Our significant outstanding contractual obligations relate to the
lease for our office space that is leased on a month-to-month basis
for $800 per month for the Princeton, New Jersey location. On  August 8,
2005, Mikros also executed a new lease for engineering office space
located in Fort Washington,  Pennsylvania that commenced on September
1, 2005 and continues for 63 months.  The first  payment of $5,181.00 is
due on January 1, 2006 and the terms of the lease include an annual
        rate increase  through the end of the lease.





Item 3.	Controls and Procedures.

Based on his evaluation of the Company's disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934) as of September 30, 2005, the Company's president
(principal executive officer and principal financial officer) has
concluded that the Company's disclosure controls and procedures are
designed to ensure that information required to be disclosed by the
Company in the reports that it files or submits under the Exchange Act
is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms and are operating in an effective
manner.

There were no changes in the Company's internal controls or in other
factors that could significantly affect these controls during the quarter
ended September 30, 2005.




PART II.  OTHER INFORMATION


Item 6.	Exhibits


Exhibit 31.1   Certification of principal executive officer and principal
financial  officer pursuant to Section 302 of the Sarbanes-Oxley Act
        of 2002.

Exhibit 32.1   Certification of principal executive officer and principal
financial  officer pursuant to Section 906 of the Sarbanes-Oxley Act
       of  2002, 18  U.S.C. 1350.





SIGNATURES

In accordance with the requirements of the Securities
Exchange Act of 1934, the registrant caused this report
to be signed on its behalf by the undersigned, thereunto
duly authorized.

			       MIKROS SYSTEMS CORPORATION


DATE: November 14, 2005   By:/s/Thomas J. Meaney
			       ----------------------
			       President
			       (Chief Executive Officer and
                          Chief Financial Officer)





										Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas J. Meaney, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Mikros Systems
           Corporation;

2. Based on my knowledge, this report does not contain any untrue statement
of a  material fact or omit to state a material fact necessary to make the
 statements made, in light of the circumstances under which such
 statements  were made,  not misleading with respect to the period
            covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the small
          business  issuer as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for
the small business issuer and have:

a)	designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under my supervision,  to ensure that
material information relating to the small business issuer, including its
consolidated subsidiaries, is made known to me by others within those
entities, particularly during the period in which this report is being
prepared;

b)	[Paragraph omitted in accordance with SEC transition instructions
    contained in SEC Release 34-47986]

c)	evaluated the effectiveness of the small business issuer's disclosure
    controls and procedures and presented in this report our conclusions
    about the effectiveness of the disclosure controls and procedures,
    as of the end of the period covered by this report based on such
    evaluation; and

d)	disclosed in this report any change in the small business issuer's
    internal control over financial reporting that occurred during the
    small business issuer's most recent fiscal quarter that has materially
    affected, or is reasonably likely to materially affect, the small
    business issuer's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal
   control over financial reporting, to the small business issuer's auditors
              and  the audit  committee of the small business issuer's board of
             directors (or persons performing the equivalent functions):

a)	all significant deficiencies and material weaknesses in the design
    or operation of internal control over financial reporting which are
    reasonably likely to adversely affect the small business issuer's
    ability to record, process, summarize and report financial information;
    and

b)any fraud, whether or not material, that involves management or
          other  employees  who have a significant role in the small business
          issuer's internal control over financial reporting.



					/s/ Thomas J. Meaney ___________________
Dated:	November 14, 2005             Thomas J. Meaney, President, Chief
					Executive Officer and Chief Financial Officer
					(Principal Executive Officer and
					Principal Financial Officer)


				EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


	In connection with the Quarterly Report on Form 10-QSB of Mikros
Systems Corporation (the "Company") for the quarter ended September 30, 2005
as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), the undersigned, Thomas J. Meaney, President of the
Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.

					/s/ Thomas J. Meaney*
Dated:	November 14, 2005	       Thomas J. Meaney,
President, Chief Executive Officer and Chief
Financial Officer
(Principal Executive Officer and Principal Financial
Officer)


*A signed original of this written statement required by Section
           906 has been provided to the Company and will be retained by
           the Company and furnished to the Securities and Exchange
           Commission or its staff upon request.