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

                                   FORM 10-QSB

(MARK ONE)

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

             For Quarterly Period Ended June 30, 2000


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


                         Commission File Number: 0-26804

<TABLE>
<S>                                                                   <C>
    PLANET POLYMER TECHNOLOGIES, INC.
    ------------------------------------------------------------------------------------------------------
    (Exact name of small business issuer as specified in its character)

    CALIFORNIA                                                        33-0502606
    ------------------------------------------------------------------------------------------------------
    (State or other jurisdiction of incorporation or organization)    (I.R.S. Employer Identification No.)

    9985 Businesspark Avenue, San Diego, California                   92131
    ------------------------------------------------------------------------------------------------------
        (Address of principal executive offices)                      (Zip Code)

    (858) 549-5130
    ------------------------------------------------------------------------------------------------------
    (Issuer's telephone number, including area code)
</TABLE>

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

        [X]  YES                  [ ]   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>
        Class                           Outstanding at June 30, 2000
        -----                           ----------------------------
<S>                                     <C>
        Common Stock, no par value      7,634,947
</TABLE>

<PAGE>   2

                        PLANET POLYMER TECHNOLOGIES, INC.
                          FORM 10-QSB QUARTERLY REPORT
                           QUARTER ENDED JUNE 30, 2000

                                      INDEX

<TABLE>
<CAPTION>
                                                                             PAGE NO.
                                                                             --------
<S>                   <C>                                                    <C>
PART I - FINANCIAL INFORMATION

        Item 1        Balance Sheet (Unaudited)
                      June 30, 2000                                                2

                      Statements of Operations (Unaudited)
                      Three Months Ended June 30, 2000 and 1999                    3

                      Statements of Operations (Unaudited)
                      Six Months Ended June 30, 2000 and 1999                      4

                      Statement of Shareholders' Equity (Unaudited)
                      Six Months Ended June 30, 2000                               5

                      Statements of Cash Flows (Unaudited)
                      Six Months Ended June 30, 2000 and 1999                      6

                      Notes to Unaudited Financial Statements                      7

        Item 2        Management's Discussion and Analysis of
                      Financial Condition and Results of Operations                8

PART II - OTHER INFORMATION

        Item 1        Legal Proceedings                                            12

        Item 2        Changes in Securities                                        12

        Item 3        Defaults upon Senior Securities                              12

        Item 4        Submission of Matters to a Vote of Security Holders          13

        Item 5        Other Information                                            13

        Item 6        Exhibits and Reports on Form 8K                              13

SIGNATURES                                                                         14
</TABLE>

<PAGE>   3

                           PLANET POLYMER TECHNOLOGIES, INC.

                               BALANCE SHEET (UNAUDITED)
                                    ---------------


<TABLE>
<CAPTION>
                                                                         JUNE 30,
                                                                           2000
                                                                      ------------
<S>                                                                   <C>
 ASSETS

Current assets:
    Cash and cash equivalents                                         $  1,051,454
    Accounts receivable                                                    125,360
    Note receivable                                                          7,082
    Inventories, net                                                       146,157
    Prepaid expenses                                                        27,882
                                                                      ------------
           Total current assets                                          1,357,935

Property and equipment, net of accumulated depreciation of $239,647        188,185
Patents and trademarks, net of accumulated amortization of $140,958        374,123
Note receivable, less current portion                                       89,583
Other assets                                                                 6,715
                                                                      ------------
           Total assets                                               $  2,016,541
                                                                      ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                                  $     65,755
    Accrued expenses                                                        60,929
    Current portion of capital lease obligations                             9,200
                                                                      ------------
           Total current liabilities                                       135,884

Capital lease obligations, less current portion                             13,840
Other liabilities                                                          152,886
                                                                      ------------
           Total liabilities                                               302,610
                                                                      ------------

Shareholders' equity:
    Preferred Stock, no par value
       4,250,000 shares authorized
       No shares issued or outstanding                                           -
    Series A Convertible Preferred Stock, no par value
       750,000 shares authorized
       321,500 shares issued and outstanding
       Liquidation preference $643,000                                     517,251
    Common Stock, no par value
       20,000,000 shares authorized
       7,634,947 shares issued and outstanding                          13,279,470
    Accumulated deficit                                                (12,082,790)
                                                                      ------------
           Total shareholders' equity                                    1,713,931
                                                                      ------------
           Total liabilities and shareholders' equity                 $  2,016,541
                                                                      ============
</TABLE>

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


                                       2
<PAGE>   4

                        PLANET POLYMER TECHNOLOGIES, INC.

                      STATEMENTS OF OPERATIONS (UNAUDITED)

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


<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED JUNE 30,
                                                                            ---------------------------
                                                                                2000           1999
                                                                            -----------    -----------
<S>                                                                         <C>            <C>
Sales                                                                       $   240,000    $         -
Cost of sales                                                                   157,066              -
                                                                            -----------    -----------
        Gross profit                                                             82,934              -
                                                                            -----------    -----------
Operating expenses:
     General and administrative                                                 269,210        253,139
     Marketing                                                                   65,887         48,951
     Research and development, net                                               67,367         30,827
                                                                            -----------    -----------
        Total operating expenses                                                402,464        332,917
                                                                            -----------    -----------
        Loss from operations                                                   (319,530)      (332,917)
Other income, net                                                                17,509          3,379
                                                                            -----------    -----------
        Loss from continuing operations before income taxes                    (302,021)      (329,538)
Income tax expense                                                                    -              -
                                                                            -----------    -----------
        Loss from continuing operations                                        (302,021)      (329,538)
Discontinued operations:
        Income from discontinued operations, net of tax expense of $3,110             -         36,256
                                                                            -----------    -----------
        Income from discontinued operations                                           -         36,256
                                                                            -----------    -----------
        Net loss                                                            $  (302,021)   $  (293,282)
                                                                            ===========    ===========
        Loss per share from continuing operations (basic and diluted)       $     (0.04)   $     (0.05)
                                                                            -----------    -----------
        Income per share from discontinued operations (basic and diluted)   $         -    $         -
                                                                            -----------    -----------
        Net loss per share (basic and diluted)                              $     (0.04)   $     (0.05)
                                                                            ===========    ===========
        Shares used in per share computations                                 7,613,439      6,357,334
                                                                            ===========    ===========
</TABLE>


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


                                       3
<PAGE>   5

                        PLANET POLYMER TECHNOLOGIES, INC.

                      STATEMENTS OF OPERATIONS (UNAUDITED)

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


<TABLE>
<CAPTION>
                                                                             SIX MONTHS ENDED JUNE 30,
                                                                            --------------------------
                                                                               2000            1999
                                                                            -----------    -----------
<S>                                                                         <C>            <C>
Sales                                                                       $   401,272    $         -
Cost of sales                                                                   273,629              -
                                                                            -----------    -----------
        Gross profit                                                            127,643              -
                                                                            -----------    -----------
Operating expenses:
     General and administrative                                                 514,784        476,688
     Marketing                                                                  107,869         84,284
     Research and development, net                                              130,377         81,789
                                                                            -----------    -----------
        Total operating expenses                                                753,030        642,761
                                                                            -----------    -----------
        Loss from operations                                                   (625,387)      (642,761)
Other income (expense), net                                                      32,447         (1,446)
                                                                            -----------    -----------
        Loss from continuing operations before income taxes                    (592,940)      (644,207)
Income tax expense                                                                 (800)          (800)
                                                                            -----------    -----------
        Loss from continuing operations                                        (593,740)      (645,007)
Discontinued operations:
        Income from discontinued operations, net of tax expense of $4,582             -         53,418
                                                                            -----------    -----------
        Income from discontinued operations                                           -         53,418
                                                                            -----------    -----------
        Net loss                                                            $  (593,740)   $  (591,589)
                                                                            ===========    ===========
        Loss per share from continuing operations (basic and diluted)       $     (0.08)   $     (0.10)
                                                                            -----------    -----------
        Income per share from discontinued operations (basic and diluted)   $         -    $      0.01
                                                                            -----------    -----------
        Net loss per share (basic and diluted)                              $     (0.08)   $     (0.09)
                                                                            ===========    ===========
        Shares used in per share computations                                 7,374,234      6,289,353
                                                                            ===========    ===========
</TABLE>

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


                                       4
<PAGE>   6

                        PLANET POLYMER TECHNOLOGIES, INC.

                  STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)

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


<TABLE>
<CAPTION>
                                                    SERIES A PREFERRED STOCK      COMMON STOCK
                                                    ------------------------  -----------------------   ACCUMULATED
                                                       SHARES      AMOUNT      SHARES       AMOUNT         DEFICIT        TOTAL
                                                    -----------   ---------   ---------  ------------   ------------   -----------
<S>                                                 <C>           <C>         <C>        <C>            <C>            <C>
Balance at December 31, 1999                            500,000   $ 804,435   6,875,976  $ 12,426,143   $(11,467,470)  $ 1,763,108
Conversion of Series A Preferred Stock into Common
   Stock on January 20, 2000                           (102,000)   (164,105)    119,997       164,105              -             -
Stock Options exercised for cash on February 15, 2000         -           -      10,000        30,250              -        30,250
Stock Options exercised for cash on March 2, 2000             -           -      10,000        30,250              -        30,250
Warrants exercised on March 3, 2000                           -           -     500,000       500,000              -       500,000
Transaction fee to the finder                                 -           -           -       (60,000)             -       (60,000)
Issuance of Warrants to the finder on March 9, 2000           -           -           -         2,500              -         2,500
Issuance of Common Stock as a dividend on
   Convertible Preferred Stock on March 15, 2000              -           -       2,736        11,936        (11,936)            -
Conversion of Series A Preferred Stock into Common
   Stock on March 28, 2000                              (76,500)   (123,079)     89,999       123,079              -             -
Stock Options exercised for cash on June 7, 2000              -           -       2,000         3,625              -         3,625
Stock Options exercised for cash on June 9, 2000              -           -       2,400         4,350              -         4,350
Stock Options exercised for cash on June 12, 2000             -           -       3,000         5,438              -         5,438
Stock Options exercised for cash on June 13, 2000             -           -       4,000         7,250              -         7,250
Stock Options exercised for cash on June 14, 2000             -           -       5,100         9,900              -         9,900
Issuance of Common Stock as a dividend on
   Convertible Preferred Stock on June 15, 2000               -           -       4,239         9,644         (9,644)            -
Stock Options exercised for cash on June 16, 2000             -           -       3,500         7,000              -         7,000
Stock Options exercised for cash on June 21, 2000             -           -       2,000         4,000              -         4,000
Net loss for the six months ended June 30, 2000               -           -           -             -       (593,740)     (593,740)
                                                       --------   ---------   ---------  ------------   ------------   -----------
Balance at June 30, 2000                                321,500   $ 517,251   7,634,947  $ 13,279,470   $(12,082,790)  $ 1,713,931
                                                       ========   =========   =========  ============   ============   ===========
</TABLE>

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


                                       5
<PAGE>   7

                        PLANET POLYMER TECHNOLOGIES, INC.

                      STATEMENTS OF CASH FLOWS (UNAUDITED)

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


<TABLE>
<CAPTION>
                                                                          SIX MONTHS ENDED JUNE 30,
                                                                              2000          1999
                                                                          -----------    -----------
<S>                                                                       <C>            <C>
 Cash flows from operating activities:
      Net loss                                                            $  (593,740)   $  (591,589)
      Adjustments to reconcile net loss to net cash used
         by operating activities:
         Depreciation and amortization                                         38,390         69,487
         Loss on disposal of assets                                                 -          9,994
         Income from discontinued operations                                        -        (53,418)
      Changes in assets and liabilities:
         Accounts receivable                                                    9,557        (61,464)
         Inventories, net                                                       7,278          2,011
         Prepaid expenses and other assets                                     21,773         13,315
         Accounts payable and accrued expenses                                (19,694)      (148,313)
                                                                          -----------    -----------
            Net cash used by continuing operations                           (536,436)      (759,977)
            Net cash provided by discontinued operations                            -        116,705
                                                                          -----------    -----------
            Net cash used by operating activities                            (536,436)      (643,272)
                                                                          -----------    -----------
 Cash flows from investing activities:

      Purchases of property and equipment                                      (3,960)       (87,995)
      Cost of patents and other                                               (61,272)       (33,998)
      Proceeds from the sale of subsidiary                                    814,639              -
      Payments from note receivable                                             3,335              -
                                                                          -----------    -----------
            Net cash provided (used) by investing activities                  752,742       (121,993)
                                                                          -----------    -----------
 Cash flows from financing activities:
      Proceeds from issuance of Common Stock                                        -      1,000,000
      Proceeds from issuance of warrants                                        2,500          2,500
      Proceeds from warrants exercised                                        500,000              -
      Payment of equity issuance costs                                        (60,000)       (73,952)
      Proceeds from stock options exercised                                   102,063          9,375
      Principal payments on borrowings and capital lease obligations           (3,576)      (100,747)
      Advances from related party                                             (61,484)       166,291
      Restricted cash in connection with borrowings                                 -        114,880
                                                                          -----------    -----------
            Net cash provided by financing activities                         479,503      1,118,347
                                                                          -----------    -----------
            Net increase in cash and cash equivalents                         695,809        353,082
 Cash and cash equivalents at beginning of period                             355,645        149,117
                                                                          -----------    -----------
 Cash and cash equivalents at end of period                               $ 1,051,454    $   502,199
                                                                          ===========    ===========

 Supplemental disclosure of non-cash activity:

      Issuance of Common Stock dividends on Preferred Stock               $    21,580    $    30,000
      Issuance of note receivable in connection with sale of subsidiary       100,000              -
      Equipment acquired under capital leases                                   3,813              -
</TABLE>

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


                                       6
<PAGE>   8

                        PLANET POLYMER TECHNOLOGIES, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS


1.  Basis of Presentation

   The accompanying unaudited financial statements of Planet Polymer
Technologies, Inc. ("Planet" or the "Company") have been prepared in accordance
with the interim reporting requirements of Form 10-QSB, pursuant to the rules
and regulations of the Securities and Exchange Commission. However, they do not
include all of the information and footnotes required by accounting principles
generally accepted in the United States for complete financial statements.

   In management's opinion, all adjustments (consisting of only normal recurring
adjustments) considered necessary for a fair presentation have been included.
Operating results for the six months ended June 30, 2000 are not necessarily
indicative of results that may be expected for the year ending December 31,
2000. For additional information, refer to the Company's consolidated financial
statements and notes thereto for the year ended December 31, 1999 contained in
the Company's Form 10-KSB for the fiscal year ended December 31, 1999.

   Certain prior period amounts have been reclassified to conform to the current
period presentation.

2.  Discontinued Operations

   On December 30, 1999, the Company and its wholly owned subsidiary, Deltco of
Wisconsin, Inc. ("Deltco"), entered into a Stock Purchase Agreement (the
"Purchase Agreement") with Daniel B. Mettler and Randy J. Larson (together, the
"Buyers") whereby the Company agreed to sell and the Buyers agreed to purchase
all of the outstanding shares of stock of Deltco for an aggregate purchase price
of $1,000,000. The Buyers are management employees of Deltco.

   The sale of Deltco was finalized on January 7, 2000. The Company received
$900,000 in cash and a secured promissory note in the amount of $100,000. This
note is collateralized by all of the equipment, accounts, inventory, supplies
and personal property now held or hereafter acquired by Deltco.

   The accompanying financial statements present the results of operations of
Deltco as a discontinued operation for the six months ended June 30, 1999.
Accordingly, the Company's continuing operations are now comprised of one
segment, the "Research and Development" business segment.

3.  Shareholders' Equity

   The holder of the Series A Convertible Preferred Stock ("Series A Preferred")
is entitled to receive quarterly dividends at an annual rate of 6% payable in
shares of the Company's Common Stock. Each share of Series A Preferred is
convertible at the option of the holder into shares of Common Stock of the
Company. On June 15, 2000, the Company issued a dividend of 4,239 shares of
Common Stock valued at approximately $9,644.


                                       7
<PAGE>   9

                         PART I - FINANCIAL INFORMATION
           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

                        PLANET POLYMER TECHNOLOGIES, INC.

Except for the historical information contained herein, the discussion in this
report contains forward-looking statements that involve certain risks and
uncertainties. The Company's actual results could differ materially from those
discussed in this report. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed below and in the
Company's Form 10-KSB for the fiscal year ended December 31, 1999.

OVERVIEW

   Since Planet Polymer Technologies, Inc. ("Planet" or the "Company") was
founded in 1991 substantially all of the Company's resources have been devoted
to the development and commercialization of its technologies and products. This
has included the expenditure of funds to develop the Company's corporate
infrastructure, support the Company's marketing efforts and establish a pilot
production facility, in addition to research and development.

   Planet has incurred operating losses since inception and had an accumulated
deficit as of June 30, 2000 of approximately $12.1 million. Pending commercial
deployment of and related volume orders for the Company's products, the Company
expects to incur additional losses.

RESULTS OF OPERATIONS

   On January 7, 2000, the Company sold all of its common stock shares of
Deltco. In accordance with the Purchase Agreement, the Company received total
proceeds of $1,000,000 in the form of $900,000 in cash and $100,000 in a secured
promissory note in consideration of the sale of its Deltco common stock. This
note is collateralized by all of the equipment, accounts, inventory, supplies
and personal property now held or hereafter acquired by Deltco. The accompanying
financial statements present the results of operations of the Company and Deltco
as a discontinued operation. Accordingly, the Company's continuing operations
are now comprised of one segment, the "Research and Development" business
segment. The following discussion of results of operations relates solely to the
Company's continuing operations.

Revenue

   The Company's revenues increased from $0 for the three months ended June 30,
1999 to approximately $240,000 for the same period in 2000 and from $0 for the
six months ended June 30, 1999 to approximately $401,000 for the same period in
2000. These increases were attributable to the commercial deployment of
EnviroPlastic(R) Z.

Cost of Sales

   Cost of sales increased from $0 for the three months ended June 30, 1999 to
approximately $157,000 for the same period in 2000 and from $0 for the six
months ended June 30, 1999 to approximately $274,000 for the same period in
2000. These increases were due to the costs associated with the
commercialization of EnviroPlastic(R) Z.


                                       8
<PAGE>   10

           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                CONDITION AND RESULTS OF OPERATIONS - (CONTINUED)

                        PLANET POLYMER TECHNOLOGIES, INC.


RESULTS OF OPERATIONS, CONTINUED

General and Administrative Expenses

   General and administrative expenses increased from approximately $253,000 for
the three months ended June 30, 1999 to approximately $269,000 for the same
period in 2000 and from approximately $477,000 for the six months ended June 30,
1999 to approximately $515,000 for the same period in 2000. These increases were
primarily attributable to professional fees paid to an independent consultant
for providing investor relation services.

Marketing Expenses

   Marketing expenses increased from approximately $49,000 for the three months
ended June 30, 1999 to approximately $66,000 for the same period in 2000 and
from approximately $84,000 for the six months ended June 30, 1999 to
approximately $108,000 for the same period in 2000. These increases were
primarily attributable to increased costs associated with the promotion of
AQUAMIM(TM) which included professional fees paid to an independent consultant.

Research and Development Expenses, Net

   The Company's net research and development expenses increased from
approximately $31,000 for the three months ended June 30, 1999 to approximately
$67,000 for the same period in 2000 and from approximately $82,000 for the six
months ended June 30, 1999 to approximately $130,000 for the same period in
2000. This increase was primarily due to a reduction in allocated research and
development resources to projects that are reimbursable by Agway under the
Feasibility Agreement. Offsetting reimbursable research and development revenue
from customers other than Agway decreased from approximately $36,000 for the
three months ended June 30, 1999 to approximately $26,000 for the same period in
2000 and from approximately $59,000 for the six months ended June 30, 1999 to
approximately $44,000 for the same period in 2000. Offsetting reimbursable
research and development costs from Agway decreased from approximately $111,000
for the three months ended June 30, 1999 to approximately $41,000 for the same
period in 2000 and from approximately $251,000 for the six months ended June 30,
1999 to approximately $94,000 for the same period in 2000. These decreases were
due to a reduction in the research and development labor rates charged to Agway.


                                       9
<PAGE>   11

           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                CONDITION AND RESULTS OF OPERATIONS - (CONTINUED)

                        PLANET POLYMER TECHNOLOGIES, INC.


LIQUIDITY AND CAPITAL RESOURCES

   In January 1999, with the Company's shareholders' approval, the Company
issued 1,000,000 shares of Common Stock to Agway and received proceeds of
$845,000, net of issuance costs totaling approximately $155,000. In addition,
from January 2000 to June 2000, the Company recorded reimbursable research and
development costs of approximately $94,000 from Agway under the Feasibility
Agreement. The Company anticipates that some of the 2000 research and
development expenditures in the agrotechnology area will be reimbursed by Agway
under the Feasibility Agreement.

   Additionally, in February 1999, the Company received a commitment from Agway
whereby Agway agreed to exercise its Warrant to acquire up to 500,000 shares of
the Company's Common Stock as early as July 1, 1999, at the Company's request,
in the event the Company's cash flows were less than projected and/or
insufficient to fund its operating requirements. On November 5, 1999, at the
Company's request, Agway exercised the Warrant with respect to 500,000 shares of
the Company's Common Stock on the terms, and subject to conditions, set forth in
the Warrant and the Company received $500,000 in connection with such exercise.
On March 3, 2000, Agway exercised a Warrant to purchase an additional 500,000
shares of Common Stock. To date, Agway has exercised warrants to purchase
1,000,000 shares of Common Stock and holds a Warrant to purchase an additional
1,000,000 shares.

   The Company used approximately $536,000 for continuing operations for the six
months ended June 30, 2000. Such funds were used primarily for research and
development activities, marketing efforts and administrative support.

   Net cash provided by investing activities of approximately $753,000 for the
six months ended June 30, 2000 resulted from proceeds from the sale of Deltco of
approximately $818,000, net of Deltco's cash, offset by approximately $65,000
used for the purchase of equipment and for the preparation and filing of
patents.

   Net cash provided by financing activities of approximately $480,000 for the
six months ended June 30, 2000 resulted from net proceeds of approximately
$440,000 from the exercise of warrants, $102,000 from the exercise of stock
options, and $3,000 from the issuance of warrants, offset by a net reduction in
the advance of funds of approximately $61,000 from Agway and $4,000 used for
capital lease obligations.

   The Company believes that its existing sources of liquidity and anticipated
revenue, cash proceeds from the sale of Deltco and proceeds from Agway's warrant
exercise for 500,000 shares of Common Stock on March 3, 2000, will satisfy the
Company's projected working capital and other cash requirements through at least
the next twelve months. There can be no assurance, however, that future revenue
decreases or changes in the Company's plans or other events affecting the
Company's operating expenses will not result in the expenditure of the Company's
resources. The Company expects that it will need to raise substantial additional
funds to continue its current and planned operations. The Company intends to
seek additional funding from existing and potential customers or through public
or private equity or debt financing. There can be no assurance that additional
financing will be available on acceptable terms, or at all.


                                       10
<PAGE>   12

           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                CONDITION AND RESULTS OF OPERATIONS - (CONTINUED)

                        PLANET POLYMER TECHNOLOGIES, INC.


LIQUIDITY AND CAPITAL RESOURCES, CONTINUED

   The Company's ability to raise additional capital may be dependent upon the
stock being quoted on the Nasdaq SmallCap Market. There can be no assurance that
the Company will be able to satisfy the criteria for continued quotation on the
Nasdaq SmallCap Market. For example, one of the criteria for continued quotation
is that the Company will maintain net tangible assets of $2 million (net
tangible assets means total assets, excluding goodwill, minus total
liabilities). As of June 30, 2000, the Company's net tangible assets on this
basis were approximately $1.7 million. Failure to meet the maintenance criteria
in the future may result in the Company's Common Stock not being eligible for
quotation. In such event, an investor may find it more difficult to determine
the market value of the Company's Common Stock and/or make future dispositions
of the Company's Common Stock.


                                       11
<PAGE>   13

                           PART II - OTHER INFORMATION

                        PLANET POLYMER TECHNOLOGIES, INC.


Item 1 -   Legal Proceedings:

        In November 1998, the Company initiated litigation against Brian To, a
former director, officer and consultant of the Company, Tarrenz Inc. and Tarrenz
Management Consultants, Inc., entities owned by Brian To (collectively referred
to as the "defendants"), in the Superior Court of the State of California for
the County of San Diego. The complaint alleges breach of contract, breach of
fiduciary duty and other tort claims arising from services the defendants
performed for or on behalf of the Company. The Company is seeking recovery of
compensation, stock, stock options and expense reimbursements.

        In response to the Complaint, the defendants filed a motion to compel
arbitration. The Court issued an order compelling the case to arbitration on
Friday, March 12, 1999. On April 26, 1999, the defendants answered and denied
the allegations of the complaint and filed a cross-complaint against the Company
alleging breach of contract, misrepresentation, slander, intentional infliction
of emotional distress and fraud. In response to a motion filed by the Company,
the arbitrator issued a ruling on May 1, 2000 disqualifying defendants' counsel
based on a finding that said counsel had previously represented the Company in a
related matter. As a result, the arbitration previously set for February 28,
2000 was rescheduled for September 11, 2000. However, the defendants filed a
motion in San Diego Superior Court to vacate the arbitrator's order granting the
Company's motion to disqualify defendants' counsel. The Court has scheduled a
hearing on this issue for September 22, 2000. The arbitration will be
rescheduled after the Superior Court rules on defendants' motion to vacate.

        In light of the limited discovery allowed in arbitration, it is
difficult to evaluate defendants' claims. However, in the opinion of management,
the ultimate resolution of this litigation is not expected to have a material
adverse effect on the Company's financial position or results of operations.

Item 2 - Changes in Securities:

        None

Item 3 -   Defaults upon Senior Securities:

        None


                                       12
<PAGE>   14

                    PART II - OTHER INFORMATION - (CONTINUED)

                        PLANET POLYMER TECHNOLOGIES, INC.


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

        The Annual Meeting of Shareholders of Planet Polymer Technologies, Inc.
        (the "Annual Meeting") was held on May 1, 2000 in San Diego, California.

        Proposal 1 - Election of Directors

        Each of the candidates listed below were duly elected to the Board of
        Directors at the Annual Meeting by the tally indicated.

<TABLE>
<CAPTION>
        Candidate                        Votes in Favor                  Votes Withheld
        ---------                        --------------                  --------------
<S>                                        <C>                               <C>
        Robert J. Petcavich, Ph.D.         7,063,856                         16,100
        Michael M. Coleman, Ph.D.          7,063,856                         16,100
        H.M. Busby                         7,063,856                         16,100
        Dennis J. LaHood                   7,063,856                         16,100
        Thomas A. Landshof                 7,063,856                         16,100
        Peter J. O'Neill                   7,063,856                         16,100
        Ronald B. Sunderland               7,063,856                         16,100
</TABLE>

        Proposal 2 - Approval of the 2000 Stock Incentive Plan

<TABLE>
<CAPTION>
             Votes in Favor              Votes Against                  Votes Abstained
             --------------              -------------                  ---------------
<S>                                      <C>                            <C>
               3,070,872                     70,088                        2,006,850
</TABLE>

        Proposal 3 - Ratification of Selection of Independent Auditors

<TABLE>
<CAPTION>
             Votes in Favor              Votes Against                  Votes Abstained
             --------------              -------------                  ---------------
<S>                                      <C>                            <C>
               7,055,681                     18,550                          5,725
</TABLE>

Item 5 - Other Information:

        None

Item 6 - Exhibits and Reports on Form 8-K:

        (a) Exhibits:

<TABLE>
<CAPTION>
            Exhibit Number              Description
            --------------              -----------
<S>                                     <C>
                11.1                    Statement of Computation of Common and Common
                                        Equivalent Shares

                27.1                    Financial Data Schedule
</TABLE>

        (b) Reports on Form 8-K:

           None


                                       13
<PAGE>   15

                        PLANET POLYMER TECHNOLOGIES, INC.

                                   SIGNATURES

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

Date:   August 14, 2000                Planet Polymer Technologies, Inc.


                                       /s/ ROBERT J. PETCAVICH
                                       ---------------------------------------
                                       Robert J. Petcavich
                                       Chairman and Chief Executive Officer

                                       (On behalf of Registrant and as
                                       Registrant's Principal Financial and
                                       Accounting Officer)


                                       14