<PAGE>   1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

 (MARK ONE)

  X               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
-----             SECURITIES EXCHANGE ACT OF 1934
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998
                                            OR
-----             TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934

                         COMMISSION FILE NUMBER 0-22291

                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                     ---------------------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


           DELAWARE                                             11-3299195
-------------------------------                             ------------------
(STATE OR OTHER JURISDICTION OF                              (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                             IDENTIFICATION NO.)


   3240 TOWN POINT DRIVE, SUITE 200
          KENNESAW, GEORGIA                                       30144
--------------------------------------                          ---------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)                         (ZIP CODE)


REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:   (770) 422-1518.


     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 (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    .
                                              ---    ---

     The number of shares the common stock outstanding at August 12, 1998 was
11,515,575.

<PAGE>   2


                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                         ( A DEVELOPMENT STAGE COMPANY)

                                    FORM 10-Q

                                      INDEX


<TABLE>
<CAPTION>
                                                                                           PAGE NO.
                                                                                           --------
<S>               <C>                                                                             <C>
PART I .          FINANCIAL INFORMATION  . . . . . . . . . . . . . . . . . . . . . . . . .        3
---------         ---------------------                                                    

Item 1.           Financial Statements (Unaudited)

                  Condensed Balance Sheet -
                           June 30, 1998 and December 31, 1997 . . . . . . . . . . . . . .        3

                  Condensed Statement of Operations Three months ended June 30,
                            1998 and 1997, Six months ended June 30, 1998 and 1997
                            and Cumulative Amounts Since Inception
                            (November 15, 1995) to June 30, 1998  . . . . . . . . . . . . .       5

                  Condensed Statement of Cash Flows Six months ended June 30,
                            1998 and June 30, 1997 and Cumulative Amount Since
                            Inception (November 15, 1995) to June 30, 1998  . . . . . . . .       6

                  Notes to Condensed Financial Statements  . . . . . . . . . . . . . . . .        7

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

PART II.          OTHER INFORMATION  . . . . . . . . . . . . . . . . . . . . . . . . . . .       12
-------           -----------------                                                              
Item 4.           Submission of Matters to a Vote of Security Holders  . . . . . . . . . .       12

Item 6.           Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . .       12

SIGNATURES   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       13
----------                                                                                       
</TABLE>

                                       2

<PAGE>   3


                         PART I - FINANCIAL INFORMATION

ITEM 1:  FINANCIAL STATEMENTS

                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                         ( A DEVELOPMENT STAGE COMPANY)

                             CONDENSED BALANCE SHEET
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)


<TABLE>
<CAPTION>
                                                    JUNE 30,   DECEMBER 31,
              ASSETS                                  1998         1997
                                                    --------   ------------
                                                   (unaudited)
<S>                                                 <C>        <C>         
Current Assets:
        Cash and cash equivalents                   $  1,455   $      4,951
        Notes and advances to related parties            --              17
        Restricted cash                                  210             88
        Inventory                                        550            360
        Prepaid assets and other current assets           17             41
                                                    --------   ------------
               Total Current Assets                    2,232          5,457

Property and equipment, net                            1,342          1,036
Intangible assets, net                                   181            167
                                                    --------   ------------
               Total Assets                         $  3,755   $      6,660
                                                    ========   ============
</TABLE>

                  See notes to condensed financial statements.

                                       3

<PAGE>   4


                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                         ( A DEVELOPMENT STAGE COMPANY)


                      CONDENSED BALANCE SHEET -- (CONT'D)
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)


<TABLE>
<CAPTION>
                                                                             JUNE 30,      DECEMBER 31,
                                                                               1998            1997
                         LIABILITIES AND                                     --------      ------------
                       STOCKHOLDERS' EQUITY
                                                                           (unaudited)
<S>                                                                          <C>           <C>         
Current Liabilities:
        Accounts payable                                                     $     93      $        405
        Accrued liabilities                                                       156               328
        Due to related parties                                                    199               262
        Deposits - Contracts in progress                                          275                --
                                                                             --------      ------------
             Total Current Liabilities                                            723               995

Capital Lease Obligation                                                            9                13

Stockholders' Equity:
        Preferred stock, par value $0.001 per share, 10% non-cumulative,
        5,000,000 shares authorized, 600,000 shares issued and
        outstanding                                                                 1                 1
        Common stock, par value $0.001 per share,
        50,000,000 shares authorized, and
        11,515,575 and 11,503,650 shares
        issued and outstanding, respectively                                       12                11
        Additional paid-in capital                                             11,363            11,638
        Deficit accumulated during development stage                           (8,353)           (5,998)
                                                                             --------      ------------
            Total Stockholders' Equity                                          3,023             5,652
                                                                             --------      ------------
        Total Liabilities and Stockholders' Equity                           $  3,755      $      6,660
                                                                             ========      ============= 
</TABLE>

                  See notes to condensed financial statements.

                                       4

<PAGE>   5
                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                         (A DEVELOPMENT STAGE COMPANY)


                        CONDENSED STATEMENT OF OPERATIONS
            (UNAUDITED - DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)


<TABLE>
<CAPTION>
                                                                                                          CUMULATIVE
                                                                                                         AMOUNT SINCE
                                                                                                           INCEPTION
                                                 THREE MONTHS ENDED           SIX MONTHS ENDED        (NOV. 15, 1995) TO
                                                JUNE 30,     JUNE 30,      JUNE 30,      JUNE 30,          JUNE 30,
                                                  1998         1997          1998          1997              1998
                                                --------     --------      --------      --------     ------------------
<S>                                             <C>          <C>           <C>           <C>               <C>
Costs and expenses:
        Cost of sales                           $    192     $     --      $    501      $     50          $     501
        Research and development                     240          460           369           572              2,222
        General and administrative                   345          569           736           931              2,971
        Depreciation and amortization                 97           66           177           100                429
        Corporate overhead expenses                  158          705           388           705              2,003
        Sales and marketing                          148           51           265            51                546
        Licensing fee                                 --           --            --            --                 50
                                                --------     --------      --------      --------          ---------
                Total costs and expenses           1,179        1,851         2,436         2,409              8,722
                                                --------     --------      --------      --------          ---------
Other income (expense):
        Interest income                               29           99            82            99                376
        Interest expense                              --           (2)           --            (8)               (14)
        Other income                                  --           --            --            --                  8
                                                --------     --------      --------      --------          ---------
Loss before income taxes                          (1,151)      (1,754)       (2,354)       (2,318)            (8,352)

        Income tax expense                            --           --            --            --                 --
                                                --------     --------      --------      --------          ---------
Net loss                                        $ (1,151)    $ (1,754)     $ (2,354)     $ (2,318)         $  (8,352)
                                                ========     ========      ========      ========          =========
Net loss per share                              $   (.10)    $   (.16)     $   (.20)     $   (.22)
                                                ========     ========      ========      ========     
Number of weighted average shares
  outstanding (000's)                             11,516       11,125        11,512        10,643
                                                ========     ========      ========      ========
</TABLE>


                  See notes to condensed financial statements.

                                       5

<PAGE>   6


                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                         ( A DEVELOPMENT STAGE COMPANY)

                        CONDENSED STATEMENT OF CASH FLOWS
            (UNAUDITED - DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
                                                                                                    CUMULATIVE
                                                                                                   AMOUNT SINCE
                                                                                                     INCEPTION
                                                                        SIX MONTHS ENDED         (NOV 15, 1995) TO
                                                                     JUNE 30,      JUNE 30,           JUNE 30,
                                                                       1998          1997              1998
                                                                     --------      ---------     -----------------
<S>                                                                  <C>           <C>             <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net loss                                                            $ (2,354)     $  (2,318)      $    (8,352)
 Adjustments to reconcile net loss to net cash used in
 operating activities:
     Depreciation and amortization                                        177            100               429
     Issuance of common stock                                              25             --                35
     Changes in assets and liabilities:
           Accounts payable                                              (312)           228                93
           Accrued liabilities                                           (171)            24               156
           Deposits - contracts in progress                               275             --               275
           Restricted cash                                               (122)            --              (210)
           Inventory                                                     (190)            --              (550)
           Accounts receivable                                             --              1                --
           Receivables from related party                                  17            (12)               --
           Other assets                                                    24            184               (17)
                                                                     --------      ---------       -----------
           Net cash used in operating activities                       (2,631)        (1,793)           (8,141)
                                                                     --------      ---------       -----------
CASH FLOW  FROM INVESTING ACTIVITIES:
    Purchase and construction of equipment                               (475)          (761)           (1,761)
    Acquisition of intangible assets                                      (23)           (36)             (191)
                                                                     --------      ---------       -----------
           Net cash used in investing activities:                        (498)          (797)           (1,952)
                                                                     --------      ---------       -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from sale of common stock and warrants                       --          6,109             6,109
     Proceeds from sale of preferred stock and warrants                    --          4,978             4,978
     Preferred stock dividend                                            (300)          (138)             (738)
     Borrowings (repayments) from/to stockholder                          (63)           417               199
     Collection of subscription receivable                                 --             --                15
     Contributed capital                                                   --             --               976
     Increase(decrease) in capital lease obligation                        (4)            18                 9
                                                                     --------      ---------       -----------
            Net cash provided by (used in) financing activities          (367)        11,384            11,548
                                                                     --------      ---------       -----------
Increase (decrease) in cash                                            (3,496)         8,794             1,455
     Cash at beginning of period                                        4,951             99                --
                                                                     --------      ---------       -----------
Cash, end of period                                                  $  1,455      $   8,893       $     1,455
                                                                     ========      =========       ===========
</TABLE>
                  See notes to condensed financial statements.

                                       6

<PAGE>   7

                     COMMODORE SEPARATION TECHNOLOGIES, INC.
                         ( A DEVELOPMENT STAGE COMPANY)

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                  (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

                                  JUNE 30, 1998

Note A - Basis of Presentation

         The accompanying unaudited condensed financial statements for Commodore
Separation Technologies, Inc. (a development stage company) ("the Company") have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. The financial statement information was derived from
unaudited financial statements unless indicated otherwise. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements.

         In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the six month period ended June 30, 1998 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 1998.

         The accompanying unaudited condensed financial statements should be
read in conjunction with the Company's audited financial statements included in
the Company's Transition Report on Form 10-K for the period ended December 31,
1997.

         The Company was incorporated on November 15, 1995, under the laws of
the state of Delaware. Effective February 29, 1996, the Company acquired the
rights to its proprietary separation technology and entered into a royalty
agreement with the inventor of the technology. Pursuant to these agreements, the
Company caused its then parent, Commodore Environmental Services, Inc.
("Environmental"), to issue 200,000 shares of Environmental common stock to the
inventor of the technology.

         The Company is a process technology company which has developed and
intends to commercialize its separation technology and recovery system, known as
SLiM(TM). The Company believes SLiM(TM) is capable of effectively separating and
extracting various solubilized materials. The Company has not commenced planned
principal operations. As such, the Company is considered a development stage
company as defined in SFAS No. 7.

         Effective December 2, 1996, Environmental transferred 100% of the
capital stock of the Company and notes receivable from the Company which
aggregated $976 to its then 65.9% owned subsidiary, Commodore Applied
Technologies, Inc. ("Applied") in exchange for cash and a warrant to purchase
shares of Applied common stock. Concurrent with this transaction, Applied
contributed the notes receivable from the Company as a capital contribution. The
transfer has been accounted for as a transaction between entities under common
control. Accordingly, the historical basis of Environmental's investment and the
net assets of the Company were not adjusted.

         In April 1997, the Company completed an initial public offering of its
equity securities from which it received net proceeds of approximately $11.1
million. These funds were recorded as additional paid-in-capital by the Company.
This offering reduced Applied's equity ownership in the Company from 100 percent
to 87 percent.


                                       7

<PAGE>   8


         On July 28, 1997, the Company changed its fiscal year from a
twelve-month period ending June 30 to a twelve-month period ending December 31,
effective January 1, 1998. Consequently, the three-month period ending June 30,
1998, to which this quarterly report relates, represents the Company's second
fiscal quarter of 1998.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATION

GENERAL

         The Company, organized in November 1995, has not generated material
revenues or profits to date, but will soon initiate commercial operations at two
locations. Since its inception, the Company has (1) developed a strategic
operating plan, (2) hired personnel to implement its operating plan, (3)
engineered and built commercial-scale, supported liquid membrane processing
units, (4) conducted on-site demonstrations for potential customers, and (5) has
entered into contracts for the lease of its products and technology.

         The Company is beginning to develop an operating history, but
operations have been limited to demonstrations at customers' facilities and
pilot-scale testing at the Company's Kennesaw facility. Until commercial
operations have been established, the Company is subject to all of the business
risks associated with a new enterprise, such as the risks of unforeseen capital
requirements, market acceptance, and competitive disadvantages against larger
and more established companies. During the period from November 15, 1995 (date
of inception) to June 30, 1998, the Company has incurred a net loss of $8,352
and anticipates that it may continue to incur significant losses for the
foreseeable future. There is no assurance as to whether or when the Company will
generate material revenues or profits.

        CONTRACTS. The Company was awarded its first commercial contract
(Hawkins Point) by Maryland Environmental Service in November 1997. In February
1998, the Company was awarded its second commercial (Dundalk Marine Terminal)
contract by Maryland Environmental Service. These two contracts have created a
$600 backlog, which the Company will recognize as revenue in 1998. The Company
has completed the installation of equipment at Hawkins Point and is presently
waiting on Maryland Environmental Service to complete its construction work at
the site and to finish permit modifications before the equipment can go into
full commercial operation. The equipment for Dundalk Marine Terminal has been
constructed and the Company is waiting for Maryland Environmental Service to
complete its construction work before installation can proceed.

         MARKETING & SALES. The Company's marketing and sales force continues
to focus much of its effort on metal plating and finishing companies,
environmental remediation sites where heavy metals pose a hazard, and at
mines for resource recovery (e.g. copper, zinc). The Company is also pursuing
work to separate radionuclides (e.g. strontium) from contaminated ground water
and from other mixed wastes at various U.S. Department of Energy sites.
Additionally, efforts are underway to explore the use of SLiM(TM) in the
specialty chemical and pharmaceutical industries where the value of recoverable
products is significantly higher. The Company continues to work with customers
to characterize their waste streams and determine the best means to integrate
SLiM(TM) into their plants treatment facilities.

         RESEARCH & DEVELOPMENT. The Company's R&D effort focuses on (1)
increasing membrane efficiency, (2) increasing the number of substances that can
be extracted to expand application of the SLiM(TM) technology (e.g. specialty
chemicals, pharmaceuticals), and (3) characterizing customer waste
streams to validate legitimate sales targets.

         OPERATIONS. The Company works with outside vendors to supply and
manufacture the SLiM(TM) equipment. Equipment is engineered, constructed, and
tested under the Company's supervision. The Company has excellent relations with
its vendors and foresees no supply problems. The installation effort at
Hawkins Point went smoothly and the company anticipates no unusual problems
during the commissioning stage.


                                       8

<PAGE>   9


RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 1998 Compared to Three and Six Months Ended
June 30, 1997

         In the first and second quarters of 1998, the Company incurred $192 and
$501 of cost of sales relating to the Port of Baltimore contracts. These costs
include labor and fringes, subcontractor costs, travel costs and material
purchases in connection with the start up operations of the contracts. The
Company has considered these costs to be non-recoverable and therefore has
recorded them in the quarter incurred.

         For the three and six months ended June 30, 1998, the Company incurred
$240 and $369 of research and development costs as compared to $460 and $572 for
the three and six months ended June 30, 1997. The decrease is due to efforts to
commercialize the Company's technology. Research and development costs include
salaries, wages and other related costs of personnel engaged in research and
development activities, as well as contract services and equipment used in
research and development activities. Research and development costs are expensed
when incurred.

         General and administrative expenses for the three and six months ended
June 30, 1998 were $345 and $736, as compared to $569 and $931 for the three and
six months ended June 30, 1997. The decrease was primarily due to certain costs
incurred by the Company in conjunction with its IPO in April, 1997 and
relocation costs for employees not duplicated in 1998.

         Sales and marketing expenses for the three and six months ended June
30, 1998 were $148 and $265, as compared to $51 and $51 for the three and six
months ended June 30, 1997. The increase is due to the Company's efforts to
introduce its technology into the marketplace.

         For the three and six months ended June 30, 1998, the Company was
charged $158 and $388 by Applied as a management fee, as compared to $705 and
$705 for the three and six months ended June 30, 1997. This fee represents the
Company's pro rata portion of expenses related to wages and salaries, rent, and
other administrative expenses related to its executive offices in New York and
its marketing office in Virginia. The decrease resulted from lower allocated
overhead expenses from Applied to the Company pursuant to a change in the
intercorporate services agreement between Applied and the Company.

         Interest income was $29 and $82 for the three and six months ended June
30, 1998, as compared to $99 and $99 for the three and six months ended June 30,
1997. The decrease resulted from the continued use of the proceeds of the
Company's initial public offering since April 1997.

         The Company has sustained losses of $1,151 and $2,354 for the three and
six months ended June 30, 1998, as compared to $1,754 and $2,318 for the three
and six months ended June 30, 1997. Substantially all of the Company's losses
are attributable to the prior emphasis on research and development activities
and the recent efforts to commercialize the Company's technology.

                                        9

<PAGE>   10


LIQUIDITY AND CAPITAL RESOURCES

         At June 30, 1998, the Company had working capital of $1,509, as
compared to $4,462 as of December 31, 1997. The decrease in working capital is
primarily the result of the six month loss of $2,354, purchase of equipment of
$475 and the payment of $300 in dividends on its preferred stock. This working
capital should fund the Company's operations through December 31, 1998. Before
that date, the Company will have to complete a financing to obtain the funds
necessary to reach commercial operating status. The Company is currently
evaluating various financing options.

         The Company believes it has adequate capital resources to sustain its
operations into the third quarter of 1998, subject to factors which cannot be
predicted at this time and which may not be within the Company's control. While
the Company believes its capital requirements for the remainder of 1998 will be
met through the development of its business, the Company may be required to
obtain financing through external sources. There can be no assurance that such
financing will be available, or if available, that it will be on terms
satisfactory to the Company. In the event such external financing is not
available on terms acceptable to the Company, the Company may be able to obtain
interim financing from Applied, the owner of 87% of the outstanding shares of
Common Stock. There can be no assurance, however, that the Company will be able
to obtain any financing from Applied.


NET OPERATING LOSSES

         The Company has net operating loss carryforwards which expire in the
years 2000 through 2011. The amount of and ultimate realization of benefit from
the net operating loss for income tax purposes is dependent, in part, upon the
tax laws in effect, future earnings of the Company, and other future events, the
effects of which cannot be determined. A change in ownership of the Company may
reduce the amount of loss allowable. 

         A full valuation allowance has been established because of the
uncertainty about whether the Company will realize the benefit of net operating
losses.

                                       10

<PAGE>   11


FORWARD LOOKING STATEMENTS

         The Company, or its executive officers and directors on behalf of the
Company, may from time to time make "forward-looking statements" within the
meaning of the Securities Act of 1933, as amended (the "Securities Act") and the
Securities Exchange Act of 1934, as amended (the "Exchange Act" and together
with the Securities Act, the "Acts"). The Company is filing this Quarterly
Report on Form 10-Q to avail itself of the safe harbor provided in the Acts with
respect to any such (i) forward-looking statements that may be contained in the
Company's reports and other documents filed with the Securities and Exchange
Commission under sections 13 or 15(d) of the Exchange Act and (ii) oral
forward-looking statements made by the Company's executive officers and
directors on behalf of the Company to the press, potential investors, securities
analysts and others. Such forward-looking statements could involve, among other
things, statements regarding the Company's intent, belief or expectation with
respect to (i) the Company's results of operations and financial condition, (ii)
the consummation of acquisition and financing transactions and the effect
thereof on the Company's business, and (iii) the Company's plans and objectives
for future operations and expansion. Any such forward-looking statements would
be subject to the risks and uncertainties that could cause actual results of
operations, financial condition, acquisitions, financing transactions,
operations, expansion and other events to differ materially from those expressed
or implied in such forward-looking statements. Any such forward-looking
statements would be subject to a number of assumptions and would be based on
facts and conditions as they exist at the time such statements are made.
Further, the Company's business is subject to a number of risks that would
affect any such forward-looking statements. These risks and uncertainties
include, but are not limited to, the ability of the Company to commercialize its
technology; foreign and domestic competition; product demand and industry
pricing; cost of compliance with environmental regulations; and management's
estimates of niche market data. These risks and uncertainties could cause actual
results of the Company to differ materially from those projected or implied by
such forward-looking statements.

                                       11

<PAGE>   12


                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

                  There have been no material legal proceedings to which the
Company is a party which have not been disclosed in previous filings with the
Securities and Exchange Commission. There are no material developments to be
reported in any previously reported legal proceedings.

ITEM 2.  CHANGE IN SECURITIES

         Not applicable.

ITEM 3.  DEFAULTS AMONG SENIOR SECURITIES

         Not applicable.

ITEM 4.  SUBMISSION OF  MATTERS TO A VOTE OF SECURITY HOLDERS

         On June 3, 1998, the Company conducted its 1998 Annual Meeting of
Stockholders (the "Annual Meeting"). As of the record date of April 27, 1998,
there were 11,515,575 shares of Company Common Stock eligible to vote. Of these
shares, 11,114,475, (96.5%) were represented either in person or by proxy at the
Annual Meeting. The following matters were submitted to a vote at the Annual
Meeting with the following results:

(a)  Election of Directors: Each of the following nominees for election to the
     Board of Directors of the Company were elected by an affirmative vote of
     11,110,175 shares, or 96.5% of all eligible shares: Paul E. Hannesson,
     Bentley J. Blum, Kenneth L. Adelman, Ph.D., Herbert A. Cohen, David L.
     Mitchell, and William R. Toller. 1,000 shares were "withheld" with respect
     to each of the foregoing nominees; 3,300 shares "abstained;" and no shares
     were represented as "broker non-votes."

(b)  Ratification of Independent Auditors: By an affirmative vote of 11,113,475
     shares, 96.5% of all eligible shares, the stockholders of the Company
     ratified the appointment of PricewaterhouseCoopers LLP as the Company's
     independent auditors for the fiscal year ending December 31, 1998. No
     shares were voted "against" approval of this proposal; 1,000 shares
     "abstained;" and no shares were represented as "broker non-votes."


ITEM 5.  OTHER EVENTS

         Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits - none

         (b)      Reports on Form 8-K  -

                  The Company filed a Current Report on Form 8-K, dated May 27,
                  1998, regarding the death of the Company's president, Mr.
                  Kenneth J. Houle, and the announcement of the interim
                  president, Mr. Carl O. Magnell.

                                       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.




DATE:    AUGUST 13, 1998          COMMODORE SEPARATION TECHNOLOGIES, INC.
                            (REGISTRANT)


                            BY       /s/ WILLIAM E. INGRAM
                              -----------------------------------------------
                              WILLIAM E. INGRAM - VICE PRESIDENT AND CONTROLLER,
                              (AS BOTH A DULY AUTHORIZED OFFICER OF THE
                              REGISTRANT AND THE PRINCIPAL FINANCIAL
                              OFFICER OR CHIEF ACCOUNTING OFFICER OF THE
                              REGISTRANT)

                                       13
<PAGE>   14

                                 EXHIBIT INDEX
                                 -------------

Exhibit 27               Financial Data Schedule