<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
   
                                  FORM 10-QSB/A
    

(Mark One)

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

                  For the quarterly period ended January 31, 1997
                                                 ----------------

 [ ]              TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE
                  EXCHANGE ACT

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

                         Commission file number 0-12646


                           ANGSTROM TECHNOLOGIES, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

          Delaware                                            31-1065350
-------------------------------                          -------------------
(State or other jurisdiction of                            (IRS Employer
incorporation or organization)                           Identification No.)


               1895 Airport Exchange Boulevard, Erlanger, KY 41018
               ---------------------------------------------------
                    (Address of principal executive offices)

                                 (606) 282-0020
                           ---------------------------
                           (Issuer's telephone number)


              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes   X   No
                                                               -----    -----

As of February 28, 1997, there were 22,893,178 shares of Common Stock
outstanding.

   
TOTAL PAGES IN THIS REPORT:   12 (excluding cover and exhibits but including
signature page)
    

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                                      INDEX

PART I.       Financial Information                                   Page No.

              Item 1.      Financial Statements

                           Balance Sheets                                2-3

                           Statements of Operations                        4

                           Statements of Cash Flows                        5

                           Notes to Financial Statements                 6-7

              Item 2.      Management's discussion and Analysis
                           of Financial Condition and Results of
                           Operations                                    8-9

PART II.      Other Information

              Item 6.      Exhibits                                       10

SIGNATURES                                                                11

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                           Angstrom Technologies, Inc.
                                  Balance Sheet

                                                         Jan. 31,  Oct. 31, 1996
                                                          1997        (Note)
                                                       (Unaudited)
Assets
Current assets:

   Cash and cash equivalents                            $  127,697    $   24,175
   Short-term investments                                  696,348       816,517
   Accounts receivable                                     132,981       110,940
   Interest receivable                                       4,794         6,093
   Advances to suppliers                                      --            --
   Inventories:
     Finished goods                                         31,054        30,168
     Work in process                                        11,963        12,906
     Raw materials and parts                               521,811       522,931
                                                        ----------    ----------
                                                           564,828       566,005
   Prepaid expenses                                          3,151         1,181
                                                        ----------    ----------
Total current assets                                     1,529,799     1,524,911

Furniture and equipment, at cost                           151,208       141,789
   Less accumulated depreciation                            51,343        46,609
                                                        ----------    ----------
Net furniture and equipment                                 99,865        95,180

Patents, less accumulated amortization of $6,764            96,367        97,877
                                                        ----------    ----------

Total assets                                            $1,726,031    $1,717,968
                                                        ==========    ==========

NOTE: The balance sheet at October 31, 1996 has been derived from the audited
financial statements at that date, but does not include all the information and
footnotes required by generally accepted accounting principles for complete
financial statements. See accompanying notes.

                                      -2-

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                           Angstrom Technologies, Inc.
                            Balance Sheet (continued)

                                                        Jan. 31,   Oct. 31, 1996
                                                         1997          (Note)
                                                      (Unaudited)
Liabilities and capital
Current liabilities:
   Accounts payable                                  $   114,323    $   190,938
   Accrued liabilities                                    66,037         55,520
   Long-term debt due within one year                     26,858         26,068
                                                     -----------    -----------
Total current liabilities                                207,218        272,526

Long-term debt                                            61,367         68,386

Capital:
   Preferred stock, $.01 par value; 5,000,000
     shares authorized, 1,449,595 issued and
     outstanding (liquidation preference of $2.00
     per share)                                        2,385,132      2,439,483
   Common stock, $.01 par value; 45,000,000
     shares authorized, 22,600,698 shares issued
     and outstanding                                     226,007        224,690
   Additional paid in capital                          4,779,120      4,726,086
   Accumulated deficit                                (5,932,813)    (6,013,203)
                                                     -----------    -----------
Net capital                                            1,457,446      1,377,056
                                                     -----------    -----------

Total liabilities and capital                        $ 1,726,031    $ 1,717,968
                                                     ===========    ===========

NOTE: The balance sheet at October 31, 1996 has been derived from the audited
financial statements at that date, but does not include all the information and
footnotes required by generally accepted accounting principles for complete
financial statements. See accompanying notes.

                                      -3-

<PAGE>
                           Angstrom Technologies, Inc.
                            Statements of Operations
                                   (Unaudited)

   
<TABLE>
<CAPTION>
                                                       Three Months Ended
                                                    January 31,     January 31, 
                                                       1997            1996
                                                   ------------    ------------
<S>                                                <C>             <C>
Net sales                                          $    422,796    $    198,499

Cost of Sales                                           119,450         140,157
                                                   ------------    ------------

Gross profit                                            303,346          58,342

Selling, general and
    administrative expenses                             227,365         179,859
Interest expense                                         (2,772)         (3,472)
Interest income                                           7,181          17,510
Gain on security sale                                      --             4,028
                                                   ------------    ------------
                                                        231,774         197,925
                                                   ------------    ------------

Net income (loss)                                        80,390        (103,451)
Less dividend requirement on preferred stock            (54,819)        (66,068)
                                                   ------------    ------------
Net  income (loss) applicable to common stock      $     25,571    $   (169,519)
                                                   ============    ============

Net income (loss) per common share                 $       --      $      (0.01)
                                                   ============    ============

Weight Average Number
of Shares Outstanding                                22,263,100      21,761,000
                                                   ============    ============
</TABLE>
    
                                      -4-

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                           Angstrom Technologies, Inc.
                            Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                        Three Months ended Jan. 31,
                                                            1997        1996
                                                         ---------    ---------
<S>                                                     <C>           <C>
Operating activities
Net income (loss)                                        $  80,390    $(103,451)
Adjustments to reconcile net loss to
   net cash used by operating activities:
     Depreciation and amortization                           6,243        3,672
     Changes in operating assets and liabilities:
       Accounts receivable                                  22,041       60,008
       Interest receivable                                   1,299         --
       Advances to suppliers                                  --           --
       Inventories                                          (1,177)     (49,295)
       Prepaid expenses                                     (1,970)      51,287
       Accounts payable                                    (76,615)     (12,980)
       Accrued liabilities                                  11,308      (26,426)
                                                         ---------    ---------
Net cash provided (used in) operating activities              (209      (77,185)

Investing activities
Purchases of furniture and equipment                        (9,419)     (24,214)
Proceeds from sale of investments                          120,169       66,267
Capitalization of patents                                     --        (15,730)
                                                         ---------    ---------
Net cash provided by investing activities                  110,750       26,323

Financing activities
Proceeds from stock options exercises                         --           --
Principal repayments of long-term debt                      (7,019)      (5,537)
                                                         ---------    ---------
Net cash used by financing activities                       (7,019)      (5,537)
                                                         ---------    ---------

Net increase (decrease) in cash                            103,522      (56,399)
Cash and cash equivalents at beginning of year              24,175      129,308
                                                         ---------    ---------
Cash and cash equivalents at end of year                 $ 127,697    $  72,909
                                                         =========    =========

Supplemental cash flow disclosures
Cash paid for interest                                   $   2,772    $   3,473

                                      -5-

<PAGE>

                           ANGSTROM TECHNOLOGIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note 1   The accompanying financial statements have been prepared in accordance
         with generally accepted accounting principles for interim financial
         information.  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 three month period ended January 31, 1997 is not
         necessarily indicative of the results that may be expected for the year
         ended October 31, 1997.  For further information, refer to the
         financial statements and footnotes thereto included in the Company's
         annual report on Form 10-K for the year ended October 31, 1996.

Note 2   Earnings per common share are calculated based upon a weighted
         average of shares outstanding after giving effect to the preferred
         dividend requirements.

Note 3   The preferred stock issued December 22, 1993 provided for an annual
         cumulative dividend to be paid on November 1, 1995.  Management has
         determined that available funds would be more prudently utilized in its
         ongoing research and development efforts and as a result no accrual or
         payment of dividend will be made until such time as sufficient cash
         flows are generated from operations.  Management intends to hold the
         dividend payable as of November 1, 1996, in arrears.  No dividend was
         accrued for the year ended October 31, 1996.  The amount that would
         have been accrued at October 31, 1996, if a dividend had been recorded,
         would have been $237,206 ($.16 per preferred stock share outstanding at
         November 1, 1996).  No dividend has been accrued for the three month
         period ended January 31, 1997.  The amount that would have been accrued
         at  January 31, 1997,  if a dividend had been recorded, would have been
         approximately $45,984.

Note 4   On December 3, 1993, the shareholders of the Company approved an
         amendment to the Company's certificate of incorporation increasing the
         authorized number of shares of common stock to 45,000,000 from
         25,000,000, increasing the authorized number of preferred stock to
         5,000,000 from 2,000,000 and reducing the par value of the preferred
         stock to $.01 per share from $10.00 per share.

         On December 22, 1993, the Company completed the issuance of 1,725,000
         units of its securities through a public offering, resulting in net
         proceeds of $2,838,454 after offering expenses. Each unit consists of
         one share of the redeemable convertible preferred stock and one Class A
         redeemable common stock purchase warrant. Each share of preferred stock
         is convertible into four shares of the Company's common stock and each
         Class A warrant entitles the holder to purchase one share of the
         Company's common stock for $1.00 and to receive one Class B redeemable
         common stock purchase warrant which entitles the holder to purchase one

         share of the Company's common stock for $1.50.


                                      -6-

<PAGE>


For the three months ended January 31, 1997, preferred stock conversions were as
follows:

     Conversion           Preferred Stock            Common Stock
        Date                 Converted                 Received
    -------------         -----------------        ------------------

      12/24/96                     2,000                    8,000
      12/26/96                     4,780                   19,120
      01/03/97                     2,500                   10,000
      01/20/97                    17,000                   68,000
      01/30/97                     6,660                   26,640
                          -----------------        ------------------
                                  32,940                  131,760
                          =================        ==================


         The preferred stock has a liquidation preference of $2.00 per share, an
         aggregate of $2,899,190.

Note 5   Effective November 1, 1993, the Company adopted Statement of
         Financial Accounting Standards No. 109 "Accounting for Income Taxes."
         The standard requires the use of the liability method to recognize
         deferred income tax assets and liabilities, using expected future tax
         rates.

         The cumulative effect of adopting the standard and the effect of
         applying the standard on the operating statement for the period ended
         January 31, 1994 was zero. The tax effects of the net operating loss
         carryforwards and temporary differences that give rise to deferred
         income tax assets and a corresponding valuation allowance at January
         31, 1997 and October 31, 1996 are presented below:


                                                 January 31,        October 31,
                                                    1997                1996
                                                --------------     ------------
          Deferred tax assets:
               Net operating loss                 $1,466,000        $1,498,000
               Other, net                              6,200             5,000
                                                 -----------       -----------

               Total deferred tax assets           1,472,200         1,503,800
               Less:  valuation allowance         (1,472,200)       (1,503,800)
                                                 -----------       -----------


                    Net Deferred Tax Asset       $       -0-       $       -0-
                                                 ===========       ===========


         The company entered fiscal 1997 with cumulative net operating loss
         carryforwards of approximately $3,800,000 for federal income tax
         purposes which expire in the years 2000 to 2010.

         In the opinion of management, inflation has not had a material effect
         on the operations of the Company.


                                      -7-

<PAGE>
   
Note 6   On March 3, 1997, the Financial Accounting Standards Board (FASB) 
         issued Statement of Financial Accounting Standards No. 128 "Earnings
         Per Share" (SFAS No. 1228).  This pronouncement provides a different
         method of calculating earnings per share than is currently used in
         accordance with Accounting Board Opinion (APS) No. 15, "Earnings Per
         Share."  SFAS 128 provides for the calculation of "Basic" and "Diluted"
         earnings per share.  Basic earnings per share includes no dilution and
         is computed by dividing income available to common shareholders by the
         weighted average number of common shares outstanding for the period. 
         Diluted earnings per share reflects the potential dilution of
         securities that could share in the earnings of an entity, similar to
         fully diluted earnings per share.  The Company will adopt SFAS No. 128
         in 1997 and its implementation is not expected to have a material
         effect on the financial statements.
    

   
Note 7   Patents
    

   
         Included in the other assets section of the balance sheet are certain
         costs associated with patents, which are capitalized and amortized over
         the shorter of their statutory lives or their estimated useful lives
         using the straight-line method. The Company periodically evaluated the
         recoverability of these assets in accordance with statement of
         Financial Accounting Standards No. 121, "Accounting for the Impairment
         of Long-Lived Assets and for Long Lived Assets to be Disposed of ("SFAS
         121").
    

                                        8

<PAGE>

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


Fiscal 1997 First Quarter Compared to Fiscal 1996

        Net sales for the first quarter of Fiscal 1997 were approximately
$422,800, an increase of approximately 113% from the approximately $198,500 in
net sales in the corresponding quarter of fiscal 1996. This increase in sales
was a result of significantly higher sales of chemicals made to the
subcontractor for the U.S. Postal Service on a new order relating to the
Company's prior work on certified mail labels, as well as increased sales of
scanners and chemicals to other clients. Cost of sales decreased materially from
70.6% to 28.3% due to the higher margins associated with the high volume of
first quarter chemical sales, as well as reflecting increased efficiencies in
production methods put in place.

        Selling, general and administrative expenses increased from
approximately $179,900 in the prior year's first quarter to approximately
$227,400 in the first quarter of fiscal 1997. These increases were primarily due
to the increase in sales commissions, which were directly tied into the increase
in sales.

        The Company generated net income of $80,390 before dividend requirements
in the first quarter of Fiscal 1997 as compared with a net loss of $103,451
before dividend requirements in the prior year's comparable period. Continuing
its policy of conserving cash to meet operating requirements, the Company has
declined to accrue a preferred stock dividend for the periods in reference.

        Research and development expenses totaled approximately $93,600 during
the recent quarter, as compared to approximately $90,000 in the prior year's
comparative period, as the Company continued to focus its efforts on sweeping
various electronic functions into a single microprocessor chip of special
design, while continuing its development of additional chemical compounds and
refinements to its existing line of scanners and readers.

Liquidity and Capital Resources

        The Company's primary need for cash is to support its programs and its
ongoing operating activities. The Company's primary sources of liquidity have
historically been cash provided by financing activities. The Company has never
generated significant cash flows from its operations and has depended upon
financing from outside sources to maintain itself.

        The Company had cash and cash equivalents, and investments of $824,045
as at the end of the first quarter Fiscal 1997 as compared with $840,692 as at
the end of Fiscal 1996, reflecting in a decrease in these categories of $16,647.
It experienced a slight increase in trade accounts receivable of $22,041, while
inventory remained at relatively constant levels. As indicated in Note 3 to
these financial statements, no preferred dividend has been accrued for the first
quarter of Fiscal 1997 since management has determined to conserve available
funds and maintain the Company's liquidity in light of its needs to continue
developmental and marketing

                                        9

<PAGE>



expenditures referred to hereinabove. The Company anticipates that existing
funds will enable it to fund its operating and capital needs through at least
October 31, 1997, the end of its current fiscal year, and for some time
thereafter. The Company may require additional financing after such time
depending on the status of its sales efforts and whether sufficient revenues and
contractual commitments have been received from its customers to enable it to
function with sufficient liquidity. The Company is not able at this time to
predict the amount or potential source of such additional funds and has no
commitment to obtain such funds.

 Federal Income Taxes

        Effective November 1, 1993, the Company adopted Statement of Financial 
Accounting Standards No. 109 "Accounting for Income Taxes".  The standard 
requires the use of the liability method to recognize deferred income tax assets
and liabilities, using expected future tax rates.

   
        The tax effects of the net operating loss carry forwards and temporary
differences that give rise to deferred income tax assets and a corresponding
valuation allowance at January 31, 1997 and October 31, 1996 is presented below.
    


Deferred tax assets:                       January 31,    October 31, 
                                              1997           1996
                                           -----------    -----------
        Net Operating Loss                 $ 1,466,000    $ 1,498,000
        Other Net                                6,200          5,800
                                           -----------    -----------

Total deferred tax assets                  $ 1,472,200      1,503,800
        Less:  Valuation allowance          (1,472,200)    (1,503,800)
                                           -----------    -----------

Net deferred tax asset                     $       -0-    $       -0-
                                           ===========    ===========


Other

        In the opinion of management, inflation has not had a material effect on
the operations of the Company.


                                       10

<PAGE>

                                     Part II

Other Information

Item 6.  Exhibits

              (a)    Exhibits

   
                     (i) Exhibit 11 - Calculation of Earnings per Share
                     (ii) Exhibit 27 - Financial Data Schedule
    


                                       11

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                                   SIGNATURES

   
        In accordance with the requirements of the Exchange Act, the registrant
has caused this report on Form 10-QSB/A to be signed on its behalf by the
undersigned, thereunto duly authorized.
    


                                         ANGSTROM TECHNOLOGIES, INC.



DATE: June 19, 1997                      By: s/Daniel A. Marinello
                                             ----------------------------------
                                             Daniel A. Marinello
                                             Chief Executive Officer
                                             and Chief Financial Officer


                                       12

</TABLE>