U.S. SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549

                                  FORM 12b-25

                                                       SEC File Number 01-10076
                                                            CUSIP Number 038229

                             NOTICE OF LATE FILING
                                 (Check One):

[ X ] Form 10-KSB  [ ] Form 11-K  [ ] Form 20-F  [  ] Form 10-QSB  [ ] Form N-
SAR
                       For Period Ended:  May 31, 1996 
_______________________________________________________________________________

If the notification relates to a portion of the filing check above, identify
the Item(s) to which the notification relates:  N/A
_______________________________________________________________________________

PART I--REGISTRANT INFORMATION
_______________________________________________________________________________

     Full Name of Registrant:      APPLIED RESEARCH CORPORATION

     Former Name if Applicable:  

     Address of Principal Executive Office (Street and Number):

                        8201 Corporate Drive, Ste. 1120
                           Landover, Maryland 20785
_______________________________________________________________________________

PART II--RULES 12B-25(B) AND (C)
_______________________________________________________________________________

If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12(b)-25(b), the following
should be completed.   (Check box if appropriate)

[ ]  (a)  The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;

[X]  (b)  The subject annual report or semi-annual report/portion thereof will
be filed on or before the fifteenth calendar day following the prescribed due
date; or the subject quarterly report/portion thereof will be filed on or
before the fifth calendar day following the prescribed due date; and

[ ]  (c)  The accountant's statement or other exhibit required by Rule 12b-
25(c) has been attached if applicable.
_____________________________________________________________________________

PART III--NARRATIVE
______________________________________________________________________________

State below in reasonable detail the reasons why Form 10-KSB, 11-K, 20-F,
10-QSB or N-SAR or portion thereof could not be filed within the prescribed
time period.

     The Registrant is unable to file its Annual Report on Form 10-KSB
     within the prescribed time period because the Company has experienced
     some difficulty in compiling its financial records to complete the
     preparation of the audited financial statements for the relevant
     fiscal year.

_______________________________________________________________________________

PART IV--OTHER INFORMATION
_______________________________________________________________________________

     (1)  Name and telephone number of person to contact in regard to this
notification

                             Nathan L. Stone, Esq.
                               1507 Pine Street
                            Boulder, Colorado 80302
                                (303) 449-2100

     (2)  Have all other period reports required under section 13 or 15(d) of
the Securities Exchange Act of 1934 or section 30 of the Investment Company Act
of 1940 during the preceding 12 months or for such shorter period that the
registrant was required to file such report(s) been filed?  If the answer is
no, identify report(s).
                                                            [ X ] Yes   [  ] No

     (3)  Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report or
portion thereof?
                                                            [  ] Yes   [ X ] No

     If so; attached an explanation of the anticipated change, both narratively
and quantitively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.

                         APPLIED RESEARCH CORPORATION
                 (Name of Registrant as specified in charter)

has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.



Date:             August 28, 1996            By:/s/ S.P.S. Anand               
               ____________________          ________________________________
                                             S.P.S. Anand, President and CEO