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 June 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 Securities Exchange
Act of 1934 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:_______

State the number of shares outstanding of each of the Issuer's
classes of common stock, as of August 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 June 30, 2005                         4

    	CONDENSED STATEMENTS OF INCOME
	For the Three Months Ended and Six Months Ended
        June 30, 2005 and 2004                            5

	CONDENSED STATEMENTS OF CASH FLOWS
	For the Six Months Ended June 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                                                      10

	  Results of Operations                    11

	  Liquidity and Capital Resources  11

 Item 3. Controls and Procedures                     12

PART II  OTHER INFORMATION

	   Item 6.  Exhibits                               13

	   SIGNATURES                                  14

          CERTIFICATIONS                                     15



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)

				        June 30,
ASSETS				          2005
------ 			                --------

CURRENT ASSETS

  Cash					$  117,970
  Receivable on Government
      Contracts                 	   141,409
  Other Current Assets		           12,793
					  --------
  TOTAL CURRENT ASSETS		          272,172
   					  -------

FIXED ASSETS

  EQUIPMENT				     4,383
    Less: Accumulated Depreciation       (1,644)
					  --------
FIXED ASSETS, NET			    2,739
				         --------
TOTAL ASSETS		  	 	$ 274,911
                                       =========

  See Accompanying Notes to Condensed Financial Statements.







MIKROS SYSTEMS CORPORATION
CONDENSED BALANCE SHEET
(UNAUDITED)


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

  Accrued Payroll and Payroll Taxes		      $ 47,416
  Accrued Expenses				        52,297
  Accounts Payable				        57,322
                                                  ----------
TOTAL CURRENT LIABILITIES                          $157,035
                                                  ----------

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                          (11,723,692)
                                                -----------
TOTAL SHAREHOLDERS' EQUITY                          37,426
                                                -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $  274,911
                                               ============

See Accompanying Notes to Condensed Financial Statements.










MIKROS SYSTEMS CORPORATION
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)


			           Three Months Ended,	      Six Months Ended,

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

Revenues:

  Contract Revenue	      $	   436,356  $	288,629		$ 791,769	 $ 507,070

Cost of Sales	    		   266,215 	186,769		  472,645	   320,206
248:  --------------  --------------    ------------    ------------
Gross Margin	   	  	   170,141	101,860		  319,124	   186,864
250:   --------------  --------------    ----------    -----------

Expenses:

  Engineering		           26,677      20,567		   48,132	     35,240
  General & Administrative        99,939     38,667		  196,653	     80,393
-------------
Total Expenses                   126,616     59,233		  244,785	    115,633
-------------

Net Income                 $      43,525 $  42,627		   74,339           71,231
 ==========

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

Weighted average number
268: of share outstanding   31,766,753   31,766,753   31,766,753   31,766,753
============


See Accompanying Notes to Condensed Financial Statements.










MIKROS SYSTEMS CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

                                                The Six Months Ended
                                           June 30, 2005        June 30, 2004
                                        ------------------   ------------------
Cash Flow From Operating Activities:
   Net Income                            $    74,339		   $   71,231
Adjustments to reconcile Net Income
   to net cash provided by
   Operating Activities:
   Depreciation and Amortization	            707               2,116
   Net Changes in Operating Assets and
   Liabilities
   (Increase) Decrease in:
   Accounts Receivable			         30,732	      (34,982)
   Other Current Assets			 (8,712)                (843)

Increase (Decrease) in:
   Accounts Payable  			        (23,607)              (4,701)
   Accrued Payroll and Payroll Taxes	            390                1,087
   Other Accrued Expenses	       	        (46,500)  	   	17,726
                                            ---------            ---------
 Net Cash provided by
    Operations                                27,349               51,634
                                            ---------	     ---------
Cash Flow from Investing Activities:
    Purchase of Equipment			  (3,102)		    -
                                            ---------            ---------
Net Cash used in Investing Activities          (3,102)                  -
                                            ----------           ----------

Net Increase in Cash           	         24,247                51,634
 Cash, beginning of the period                 93,723                8,828
                                             ---------             ---------
Cash, end of period           	 $      117,970  	   $    60,462
                                             ========= 	       =========



See Accompanying Notes to Condensed Financial Statements.







MIKROS SYSTEMS CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
 June 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 June 30, 2005 and the results of its operations and
its cash flows for the six months ended June 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 June 30, 2005, there were dividends in arrears
on shares of Series D Preferred Stock of approximately $793,500.



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 Six Months Ended
June 30, 2005  June 30, 2004  June 30, 2005    June 30, 2004
484:
Net Income Applicable to
 Common Stockholders	    $  43,525      $   42,627      $	 74,339	 $ 71,231
==========      ============      ============

Average Basic Shares
   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 86,452           -		    56,000	           -
 ------------     ------------
Average dilutive shares
     35,415,504    35,329,052        35,385,052        35,329,052
 =============    =============

Net Earnings Per Common
0.00     $     0.00      $       0.00     $        0.00
505: ===========   ============  =============    =============


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 June 30, 2005. A
total of 10,000 shares of common stock options were not included in the
above calculation due to expiration.

A total of 5,850,623 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 June 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
533:    portion, at the date of adoption, of previously issued and outstanding
533:  awards  over the remaining vesting period of such awards.  No change to
534::  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.




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;

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

-    To 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 ADEPT, an acronym for the Adaptive Diagnostic Electronic Portable
629:    Testset. The initial application for ADEPT will be as a computer-aided
alignment  and maintenance tool for the AN/SPY-1 radar system, which
631:    is the primary air  and surface radar for the Aegis Combat System
632:    installed on the Ticonderoga (CG-47) and Arleigh Burke (DDG-51)
633:    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.

In April 2005, under the MFDAT Phase III program, we subcontracted
the manufacturing of the ADEPT 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
665:    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.

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 Securities and Exchange Commission
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 June 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, 2006.  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 June 30, 2005 and 2004

There were revenues of $436,356 for the second quarter ended June
30, 2005 compared to $288,629 for the same period in 2004 and
there were cost of sales of $266,215 for the quarter ended
June 30, 2005 compared to $186,769 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 June 30, 2005
were $26,677 compared to $20,567 in the quarter ended June 30, 2004.
There were higher engineering costs for the quarter ended
June 30, 2005 due to the SBIR Phase III contract awarded during
September 2004.

General and administrative expenses for the quarter ended
June 30, 2005 were $99,939 compared to $38,667 in the quarter
ended June 30, 2004 due to higher costs incurred for
administrative and bid and proposal salaries and related costs.

Net income for the three months ended June 30, 2005  was
$43,525 compared to net income of $42,627 for the same period
in 2004.

Six Months Ended June 30, 2005 and 2004

There were revenues of $791,769 for the six months ended June 30,
2005 versus $507,070 for the same period in 2004 and there
were cost of sales of $472,645 for the six months ended June 30, 2005
compared to $320,206 for the same period in 2004.

Engineering costs for the six months ended June 30, 2005 were
$48,132 versus $35,240 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 six months ended
June 30, 2005 were $196,653 compared to $80,393 in the
six months ended June 30, 2004.  These increases are primarily
attributable to the SBIR Phase III contract awarded during
September 2004.

Net income for the six months ended June 30, 2005 was $74,339
versus $71,231 for the same period in 2004.


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 a Small Business
Innovation Research (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.


The Company maintains a line of credit facility for maximum
borrowings of up to $34,000.  There were no amounts outstanding
under this line at June 30, 2005.

Our financial statements have been prepared on the basis
that the Company 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 six months ended at June 30, 2005, we
had net income of $74,339 and working capital of $115,137.
However, we still had an accumulated deficit of $11,723,692.
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 major outstanding contractual obligations relate to the
leases for our office space and engineering office that are
leased on a month-to-month basis for $800 per month and $3,000
per month until September 2005.








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 June 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 June 30, 2005.




PART II.  OTHER INFORMATION

Item 6.	Exhibits


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

Exhibit 32.1Certification 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: August 8, 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:

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

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

939: 3. Based on my knowledge, the financial statements, and other financial
940: information included in this report, fairly present in all material
941: respects  the financial condition, results of operations and cash
942: flows of the small  business issuer as of, and for, the periods
943: 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
955:    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:	August 8, 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 June 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:	August 8, 2005  	        Thomas J. Meaney,
 President, Chief Executive Officer and Chief
Financial Officer
(Principal Executive Officer and Principal Financial
Officer)


1022:  *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.