<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q/A
                         (AMENDMENT NO. 2 TO FORM 10-Q)

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

                  For the quarterly period ended June 30, 1996.

                                       OR

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

                    For the transition period from       to
                                                   -----    -----

                         Commission file number 0-21042
                                                -------

                         MOLTEN METAL TECHNOLOGY, INC. 
             (Exact name of registrant as specified in its charter)

               DELAWARE                                 52-1659959
    (State or other jurisdiction of         (I.R.S. Employer Identification No.)
     incorporation or organization)

         400-2 Totten Pond Road
              WALTHAM, MA                                 02154
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code:   (617) 487-9700

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, and (2) has been subject to such filing requirements
for the past 90 days.

                                  YES  X   NO
                                      ---     ---

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

<TABLE>
<CAPTION>
    COMMON STOCK, $.01 PAR VALUE                     23,487,252
    ----------------------------            ------------------------------
    <S>                                     <C> 
             Class                          Outstanding at August 12, 1996
</TABLE>

<PAGE>   2
                          MOLTEN METAL TECHNOLOGY, INC.
                                      INDEX
<TABLE>
<CAPTION>
                                                                               PAGE NO.
                                                                               --------
<S>                                                                            <C>
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

       Consolidated Balance Sheet - June 30, 1996 and December 31, 1995              3

       Consolidated Statement of Operations for the quarters ended
       June 30, 1996 and 1995 and for the six months ended
       June 30, 1996 and 1995                                                        4

       Consolidated Statement of Cash Flows for the six months ended
       June 30, 1996 and 1995                                                        5

       Notes to Consolidated Financial Statements                                  6-8

Item 2. Management's Discussion and Analysis of Results of Operations and
        Financial Condition                                                       9-11
1

PART II - OTHER INFORMATION

       Item 1. Legal Proceedings                                                     *
       Item 2. Changes in Securities                                                 *
       Item 3. Defaults Upon Senior Securities                                       *
       Item 4. Submission of Matters to a Vote of Security Holders                   *
       Item 5. Other Information                                                     *
       Item 6. Exhibits and Reports on Form 8-K                                     12

SIGNATURES                                                                          13
</TABLE>


          * No information provided due to the inapplicability of item.


                                       2
<PAGE>   3
                 MOLTEN METAL TECHNOLOGY, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                                                                           JUNE 30,       DECEMBER 31,
                                                                             1996*           1995
                                                                             -----           ----
<S>                                                                     <C>              <C>
ASSETS

Current assets:
  Cash and cash equivalents                                             $  66,595,865    $   6,644,856
  Short-term investments                                                  129,686,444       79,631,394
  Accounts receivable                                                       4,932,092        1,917,858
  Accounts receivable from affiliate                                       26,035,808       15,412,196
  Prepaid expenses and other current assets                                 5,592,865        2,309,398
                                                                        -------------    -------------
          Total current assets                                            232,843,074      105,915,702

Restricted cash and investments                                             5,762,234        7,432,817
Fixed assets, net                                                          45,394,739       34,679,390
Intangible assets, net                                                      4,440,476        3,501,680
Investment in affiliate                                                    13,281,417          834,794
Other assets                                                                5,695,976          971,618
                                                                        -------------    -------------
                                                                        $ 307,417,916    $ 153,336,001
                                                                        =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Current portion of long-term debt                                     $     194,321    $     195,043
  Accounts payable                                                          7,474,143        9,827,490
  Accrued expenses                                                          2,988,663        1,713,557
  Accrued interest                                                          2,107,154          789,455
  Deferred revenue from affiliate                                             583,333        4,083,334
                                                                        -------------    -------------
          Total current liabilities                                        13,347,614       16,608,879
                                                                        -------------    -------------

Long-term debt                                                            166,539,092       22,883,962
                                                                        -------------    -------------
Due to related parties                                                      1,385,889        1,474,586
                                                                        -------------    -------------
Deferred income from affiliate                                              4,604,793        2,459,918
                                                                        -------------    -------------

Stockholders' equity:
  Preferred stock, $.01 par value, 3,000 shares authorized, no shares
     issued or outstanding                                                       --               --
  Common stock, $.01 par value, 100,000,000 shares authorized;
     shares issued and outstanding: 23,467,466 at June 30, 1996 and
      22,746,854 at December 31, 1995                                         234,675          227,469
  Additional paid-in capital                                              158,974,939      146,631,297
  Valuation allowance for short-term investments                             (737,071)        (311,163)
  Accumulated deficit                                                     (36,932,015)     (36,638,947)
                                                                        -------------    -------------
          Total stockholders' equity                                      121,540,528      109,908,656
                                                                        -------------    -------------
                                                                        $ 307,417,916    $ 153,336,001
                                                                        =============    =============
</TABLE>

* Restated - See Note 6.


                       See notes to financial statements.


                                       3
<PAGE>   4
                 MOLTEN METAL TECHNOLOGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                                           QUARTER ENDED JUNE 30,        SIX MONTHS ENDED JUNE 30,
                                                                       ----------------------------    ----------------------------
                                                                           1996*            1995           1996*            1995
                                                                           -----            ----           -----            ----
<S>                                                                    <C>             <C>             <C>             <C> 
Revenue:
    Research and development ("R&D")                                   $  3,785,488    $  4,034,471    $  5,043,297    $  6,676,665
    Construction, R&D and consulting from affiliate                      10,318,596       1,687,071      27,684,332       1,920,574
    Technology transfer and success fees from affiliate                   3,750,000       1,750,000       7,500,000       3,500,000
                                                                       ------------    ------------    ------------    ------------
                                                                         17,854,084       7,471,542      40,227,629      12,097,239
Operating expenses:
    Cost of revenue - R&D                                                 3,724,952       4,034,472       4,903,283       6,676,665
    Cost of revenue - construction, R&D and consulting from affiliate    10,669,969       1,589,023      25,814,910       1,840,497
    R&D                                                                   4,618,838       2,206,398       9,327,001       5,893,853
    Selling, general and administrative ("SG&A")                          2,210,886       1,136,581       4,629,218       3,078,102
                                                                       ------------    ------------    ------------    ------------
                                                                         21,224,645       8,966,474      44,674,412      17,489,117
Equity income from affiliate                                              2,306,724         183,378       2,676,036         183,378
                                                                       ------------    ------------    ------------    ------------
Loss from operations                                                     (1,063,837)     (1,311,554)     (1,770,747)     (5,208,500)

Other income (expense):
    Interest income                                                       2,230,649       1,380,013       3,585,378       2,752,287
    Interest expense                                                     (1,675,308)       (436,169)     (2,107,699)       (915,289)
                                                                       ------------    ------------    ------------    ------------
Net loss                                                               $   (508,496)   $   (367,710)   $   (293,068)   $ (3,371,502)
                                                                       ============    ============    ============    ============


Net loss per share                                                     $      (0.02)   $      (0.02)   $      (0.01)   $      (0.15)
                                                                       ============    ============    ============    ============

Weighted average common and common equivalent
 shares outstanding                                                      23,336,091      22,250,060      23,098,323      22,225,888
                                                                       ============    ============    ============    ============
</TABLE>

* Restated - See Note 6.


                       See notes to financial statements.


                                       4
<PAGE>   5
                 MOLTEN METAL TECHNOLOGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                 SIX MONTHS ENDED JUNE 30,
                                                                              -------------------------------
                                                                                   1996*            1995     
                                                                                   -----            ----
<S>                                                                           <C>              <C>
Cash flows from operating activities:
 Net loss                                                                     $    (293,068)   $  (3,371,502)
Adjustments to reconcile net loss to net cash used in operating activities:
   Depreciation and amortization                                                  2,750,868        2,368,763
   Equity income from affiliate                                                  (2,676,036)        (183,378)
   Compensation expense related to common stock options                             120,903           31,248
   Increase in accounts receivable                                               (3,014,234)        (759,110)
   Increase in accounts receivable from affiliate                               (10,623,612)      (1,401,609)
   Increase in prepaid expenses and other current assets                         (3,283,467)      (1,507,386)
   Decrease (increase) in other assets                                             (411,846)          65,589
   Increase (decrease) in accounts payable                                       (2,353,347)       1,162,936
   Increase in accrued expenses                                                   1,275,106        1,842,320
   Increase (decrease) in accrued interest                                        1,317,699           (6,365)
   Decrease in deferred revenue                                                  (3,500,001)      (3,657,189)
   Increase in deferred income from affiliate                                     2,144,875          135,048
                                                                              -------------    -------------
       Net cash used in operating activities                                    (18,546,160)      (5,280,635)
                                                                              -------------    -------------

Cash flows from investing activities:
  Purchase of fixed assets                                                      (13,251,320)      (6,173,189)
  Purchase of intangible assets                                                  (1,055,031)        (404,467)
  Redemption (purchase) of short-term investments, net                          (50,480,958)      19,607,650
  Decrease in restricted cash                                                     1,670,583        1,574,068
                                                                              -------------    -------------
      Net cash provided by (used in) investing activities                       (63,116,726)      14,604,062
                                                                              -------------    -------------

Cash flows from financing activities:
  Proceeds from issuances of common stock                                         2,459,358          621,660
  Net proceeds from issuance of long-term debt                                  139,338,826               --
  Payments to related parties                                                       (88,697)              --
  Principal repayments of long-term debt                                            (95,592)        (192,731)
                                                                              -------------    -------------
      Net cash provided by financing activities                                 141,613,895          428,929
                                                                              -------------    -------------
Increase in cash and cash equivalents                                            59,951,009        9,752,356
Cash and cash equivalents at beginning of period                                  6,644,856       12,063,883
                                                                              -------------    -------------
Cash and cash equivalents at end of period                                    $  66,595,865    $  21,816,239
                                                                              =============    =============

Additional disclosure of non-cash investing and financing activities:
Issuance of common stock in exchange for investment in affiliate              $   9,770,587    $          --
                                                                              =============    =============
</TABLE>

* Restated - See Note 6.


                       See notes to financial statements.


                                       5
<PAGE>   6
                 MOLTEN METAL TECHNOLOGY, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. BASIS OF PRESENTATION

Molten Metal Technology, Inc. (the "Company") is an environmental technology
company commercializing pollution prevention and waste recycling methods that
are broadly applicable to a wide variety of hazardous, non-hazardous and
radioactive wastes. The Company developed its core technology, Catalytic
Extraction Processing ("CEP"), to dissolve waste compounds to their constituent
elements in a molten metal bath and reconfigure the elements into useful raw
materials.

The consolidated financial statements include the accounts of the Company and
its wholly owned subsidiaries. All significant intercompany balances and
transactions have been eliminated in consolidation.

Net loss per share is determined by dividing net loss by the weighted average
number of common shares outstanding during the period. Common share equivalents
which consist of common stock which may be issuable upon exercise of outstanding
stock options and warrants have been excluded from the weighted average number
of common shares outstanding in all periods presented since their effect is
anti-dilutive.

Certain reclassifications have been made for consistent presentation. The
reclassifications have no effect on the net loss for the periods ending June 30,
1995.

The information furnished is unaudited and reflects all adjustments (consisting
of only normal recurring adjustments) which, in the opinion of management, are
necessary for a fair presentation of the financial position and results of
operations for the interim periods. The accompanying financial statements should
be read in conjunction with the Company's audited financial statements and
related footnotes for the year ended December 31, 1995 which are included in the
Company's annual report on Form 10-K for the year ended December 31, 1995. The
results of operations for the periods ended June 30, 1996 are not necessarily
indicative of the results to be expected for the full year.

NOTE 2. EQUITY TRANSACTIONS

During the quarter ended June 30, 1996, 94,351 shares of common stock were
issued upon the exercise of options.

In April 1996, the Company and Lockheed Martin Corporation ("LMC") closed an
agreement to expand their partnership (M4 Environmental L.P. or "M4") through
the acquisition by M4 of the Retech division of Lockheed Environmental Systems &
Technologies Co., an indirect wholly-owned subsidiary of LMC. The Retech
division designs and manufactures metallurgical equipment and waste processing
systems that 


                                       6
<PAGE>   7
utilize a plasma technology. Under this agreement, LMC contributed approximately
half of the assets of the Retech division to M4, and the Company purchased
substantially all of the remaining assets of the Retech division for 307,735
shares of its common stock, and then immediately contributed these assets to M4.
Pursuant to the agreement, the number of shares issued to LMC will be adjusted
when the value of net contributions from LMC to Retech is determined.

NOTE 3. CONVERTIBLE DEBT

In May 1996, the Company issued $143,750,000 of Convertible Subordinated Notes
Due 2006 (the "Notes"). The Notes have a term of ten years and are payable in
full on May 1, 2006. The Notes bear interest at the rate of 5.50% per year
payable semi-annually. The Notes are convertible into shares of the Company's
common stock at a conversion price of $38.75 per share.

NOTE 4. INVESTMENT IN M4

The Company accounts for its investment in M4 using the equity method. The
Company recognized equity income from M4 of $2,307,000 and $2,676,000 for the
three months and six months ended June 30, 1996, respectively, reflecting the
Company's share of revenue and other income earned by M4. Under the M4 limited
partnership agreement, the Company and LMC share equally in M4's revenues and
other income and all expenses are allocated to LMC until the capital accounts of
the Company and LMC are equal. Thereafter, as long as the capital accounts of
the Company and LMC are equal, the Company and LMC will share equally in the
profits or losses of M4.

Summarized income statement information of M4 for the periods ended June 30,
1996 is presented below:

<TABLE>
<CAPTION>
                                               Quarter ended     Six months ended
                                               June 30, 1996      June 30, 1996
                                               -------------      -------------
<S>                                             <C>                <C>         
Revenue                                         $  4,409,000       $  4,809,000
Other income                                         251,000            597,000
                                                ------------       ------------
  Total revenue and other income                $  4,660,000       $  5,406,000
Expenses                                        $(15,369,000)      $(20,731,000)
                                                ------------       ------------
Net loss                                        $(10,709,000)      $(15,325,000)
                                                ============       ============
The Company's share of M4's
  total revenue and other income                $  2,307,000       $  2,676,000
</TABLE>

NOTE 5. NEW ACCOUNTING PRONOUNCEMENT

Effective January 1, 1996, the Company adopted Statement of Financial Accounting
Standards No. 121, `Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of' ("FAS 121"). In accordance with this
standard, the


                                       7
<PAGE>   8
Company periodically assesses whether any events or changes in circumstances
have occurred that would indicate that the carrying amount of a long-lived asset
may not be recoverable. If such an event or change in circumstance occurs, the
Company will evaluate whether the carrying amount of such assets is recoverable
by comparing the net book value of the assets to estimated future undiscounted
cash flows, excluding interest charges, attributable to such assets. If it is
determined that the carrying amount is not recoverable, the Company will
recognize an impairment loss equal to the excess of the carrying amount of the
asset over its fair value. Adoption of FAS 121 did not have an impact on the
Company's financial statements.

NOTE 6. RESTATEMENT

Certain billings by the Company to M4 for engineering and construction, research
and development and consulting services were disputed by M4 and were not paid by
M4. The Company has investigated the circumstances of these disputes and has
determined that the Company's quarterly results of operations should be restated
for the periods ended June 30, 1996. Revenue of $2.593 million has been reversed
in the quarter ended June 30, 1996 because of a dispute regarding the obligation
underlying billings in that amount for that quarter. The Company is not pursuing
collection of these disputed amounts. In the opinion of management, all
adjustments necessary to revise the quarterly financial statements have been
recorded. Following is a summary of the unaudited quarterly results of
operations for the quarter ended June 30, 1996:

<TABLE>
<CAPTION>
                                              Quarter Ended
As Previously Reported:                       June 30, 1996
                                              -------------   
<S>                                           <C>        
Revenue                                         $20,447,000
Income (loss) from operations                     1,529,000
Net income (loss)                                 2,084,000
Net income (loss) per share                     $      0.08
</TABLE>

<TABLE>
<CAPTION>
                                              Quarter Ended
As Restated:                                  June 30, 1996
                                              -------------
<S>                                           <C>         
Revenue                                        $ 17,854,000
Loss from operations                             (1,064,000)
Net loss                                           (509,000)
Net loss per share                             $      (0.02)
</TABLE>

                                                                                
                                       8
<PAGE>   9
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION


RESULTS OF OPERATIONS

Revenues for the second quarter of 1996 increased to $17,854,000 from $7,472,000
in the second quarter of 1995 and increased to $40,228,000 for the first half of
1996 from $12,097,000 for the first half of 1995. The following table compares
sources of revenue for the periods ended June 30, 1996 and 1995:

<TABLE>
<CAPTION>
                                                       Quarter ended June 30,
                                                       ----------------------
                                                       1996              1995
                                                       ----              ----
<S>                                                 <C>              <C>        
Engineering and construction                        $ 9,241,000      $ 1,537,000
R&D and consulting                                    4,863,000        4,185,000
Technology transfer and success fees                  3,750,000        1,750,000
                                                    -----------      -----------
                                                    $17,854,000      $ 7,472,000
                                                    ===========      ===========
</TABLE>

<TABLE>
<CAPTION>
                                                      Six Months ended June 30,
                                                      -------------------------
                                                      1996                 1995
                                                      ----                 ----
<S>                                                 <C>              <C>        
Engineering and construction                        $25,725,000      $ 1,620,000
R&D and consulting                                    7,003,000        6,977,000
Technology transfer and success fees                  7,500,000        3,500,000
                                                    -----------      -----------
                                                    $40,228,000      $12,097,000
                                                    ===========      ===========
</TABLE>


The increases in engineering and construction revenue are due to the development
of CEP systems for M4 as the Company continues to escalate commercial
activities. R&D and consulting revenue increased from 1995 due to billings under
various development contracts with M4. Technology transfer and success fees
increased in 1996 as a result of the recognition of plant start-up fees from M4.
Under the terms of the partnership agreement with M4, the Company was entitled
to a fee of $2,000,000 upon the start-up of each of the first three CEP plants
developed by M4. As of June 30, 1996, the Company has earned each of these three
start-up fees. The existence and timing of the Company's commercial sales and
operations and related revenue will depend on a number of factors, including the
ability of the Company and its affiliates to successfully market, permit and
build CEP systems on a timely basis for their target markets, and no assurances
can be made in this regard.

Certain billings by the Company to M4 for engineering and construction, research
and development and consulting services were disputed by M4 and were not paid by
M4. The Company has investigated the circumstances of these disputes and has
determined that the Company's quarterly results of operations should be restated
for the periods ended June 30, 1996. Revenue of $2.593 million has been reversed
in the quarter ended June 30, 1996 because of a dispute regarding the obligation
underlying billings in that amount for that quarter. The Company is not pursuing
collection of these disputed amounts. In the opinion of management, all
adjustments necessary to revise the quarterly financial statements have been
recorded. Following is a summary of the unaudited quarterly results of
operations for the quarter ended June 30, 1996:

<TABLE>
<CAPTION>
                                              Quarter Ended
As Previously Reported:                       June 30, 1996
                                              -------------   
<S>                                           <C>        
Revenue                                         $20,447,000
Income (loss) from operations                     1,529,000
Net income (loss)                                 2,084,000
Net income (loss) per share                     $      0.08
</TABLE>

<TABLE>
<CAPTION>
                                              Quarter Ended
As Restated:                                  June 30, 1996
                                              -------------
<S>                                           <C>         
Revenue                                        $ 17,854,000
Loss from operations                             (1,064,000)
Net loss                                           (509,000)
Net loss per share                             $      (0.02)
</TABLE>

                                                                                
Cost of revenues for the second quarter of 1996 increased to $14,395,000 from
$5,623,000 in the second quarter of 1995 and increased to $30,718,000 for the
first half of 1996 from $8,517,000 for the first half of 1995. The increases are
primarily attributable to an increase in engineering and construction activities
in connection with the development of CEP systems for M4.


                                       9
<PAGE>   10
R&D expenses for the second quarter of 1996 increased to $4,619,000 from
$2,206,000 in the second quarter of 1995 and increased to $9,327,000 for the
first half of 1996 from $5,894,000 for the first half of 1995. The increases
reflect an increase in costs associated with the continued development of CEP
and the performance of internally funded CEP demonstrations. SG&A expenses for
the second quarter of 1996 increased to $2,211,000 from $1,137,000 in the second
quarter of 1995 and increased to $4,629,000 for the first half of 1996 from
$3,078,000 for the first half of 1995. The increase reflects the hiring of
additional personnel and the expansion of corporate infrastructure. The Company
anticipates that total expenses will continue to increase as commercial
activities escalate. The classification of expenses between cost of revenue, R&D
and SG&A will depend on the number and amount of future cost reimbursement
contracts and the related absorption of R&D and SG&A expenses into cost of
revenue.

The Company accounts for its investment in M4 using the equity method. Equity
income from M4 for the second quarter of 1996 increased to $2,307,000 from
$183,000 in the second quarter of 1995 and increased to $2,676,000 for the first
half of 1996 from $183,000 for the first half of 1995 reflecting the Company's
share of revenue earned by M4. The increases in 1996 are due to an increase in
M4 revenue resulting from the inclusion of the Retech division's operations
subsequent to the contribution of Retech's net assets in April 1996. Under the
partnership agreement, the Company and LMC share equally in M4's revenues and
all expenses are allocated to LMC until the capital accounts of the Company and
LMC are equal. Thereafter, the Company and LMC will share equally in the
profits or losses of M4. The Company anticipates that its capital account will
become equal to LMC's capital account within one year. The related effect on
the Company's equity in earnings of M4 could have a material adverse effect on
future results of operations.

Interest income for the second quarter of 1996 increased to $2,231,000 from
$1,380,000 in the second quarter of 1995 and increased to $3,585,000 for the
first half of 1996 from $2,752,000 for the first half of 1995. The increases are
due to interest earned on the net proceeds from the issuance of convertible debt
in May 1996. Interest expense for the second quarter of 1996 increased to
$1,675,000 from $436,000 in the second quarter of 1995 and increased to
$2,108,000 for the first half of 1996 from $915,000 for the first half of 1995.
The increases are due to interest on the convertible debt issued in May 1996.

FINANCIAL CONDITION

As of June 30, 1996, the Company's cash, cash equivalents and short-term
investments increased by approximately $110,006,000 from December 31, 1995. The
increase was primarily a result of the net proceeds from the issuance of
convertible debt. The increase was offset by cash used in operations and for the
acquisition of fixed assets. For the remainder of 1996, the Company expects to
incur significant additional expenditures related to the engineering,
construction and start-up of commercial CEP


                                       10
<PAGE>   11
systems owned by itself and through joint ventures. The Company intends to seek
debt financing to finance or re-finance a substantial portion of these
expenditures. The amount, timing and effect on liquidity of capital
expenditures, including equity contributions to joint ventures, to be made by
the Company in connection with the development of commercial CEP systems will
depend on a number of factors, including the number of systems to be developed,
the timing of the development of such CEP systems, the terms of the development
arrangements with the Company's customers and partners and the extent to which
the Company is able to obtain financing for such CEP systems.

As of June 30, 1996, accounts receivable and accounts receivable from affiliate
increased by approximately $13,638,000 from December 31, 1995 due to amounts
earned under contracts with M4 and the United States Department of Energy. As of
June 30, 1996, total accounts receivable were $30,968,000. Of this amount,
$14,708,000 was unbilled at June 30, 1996.

During 1996, the Company earned revenue from M4 relating to services provided
for the engineering and construction of CEP systems and from fees earned for the
successful start-up of CEP systems. For items that are capitalized by M4, the
portion of the gross profit representing the Company's ownership interest
related to such revenue has been deferred, and will be recognized over the
period that the related assets are depreciated by M4. As of June 30, 1996, the
related deferred income increased by $2,145,000 from December 31, 1995 due to
billings under construction contracts with M4.

Certain statements contained in this Form 10-Q regarding future events or the
future financial performance of the Company are forward-looking statements
within the meaning of the federal securities laws. These statements are only
predictions and actual events or results may differ materially as a result of
various factors, including compliance with regulatory requirements, obtaining
required permits, customer acceptance of the Company's technology, successful
negotiation of customer contracts, obtaining required funding, and competition.
Additional factors which may cause actual results to differ are described in the
Company's filings with the Securities and Exchange Commission, including the
Form 8-K filed by the Company on July 3, 1996.


                                       11
<PAGE>   12
PART II - OTHER INFORMATION

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits

         10.1 - Sales Representative and Master Services Agreement dated as of 
                February 29, 1996 between the Company and Uhde GmbH*+

         10.2 - Partnership Restructuring Agreement dated as of March 15, 1996 
                between the Company and Lockheed Martin Corporation*+

         10.3 - Purchase Agreement dated as of April 25, 1996 between the 
                Company and Lazard Freres & Co. LLC+ 

         10.4 - Indenture dated as of May 1, 1996 between the Company and The 
                Bank of New York, as Trustee+ 

           11 - Computation of Primary and Fully-Diluted Net Income (Loss) Per 
                Share+ 

           27 - Financial Data Schedule

     (b) Reports on Form 8-K - None.


















----------
* Confidential treatment has been requested for portions of this Exhibit.
+ Filed previously.

                                       12
<PAGE>   13
                                   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.



                                            MOLTEN METAL TECHNOLOGY, INC.



Date: August 6, 1997                    By: /s/ Benjamin T. Downs
                                            ------------------------------------
                                            Benjamin T. Downs
                                            Executive Vice President of Finance
                                            and Administration, Treasurer
                                            (Principal Financial Officer and
                                            Authorized Signatory)