<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended: July 31, 1999

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

             For the transition period from _________ to __________

                         Commission file number: 0-12646

                           ANGSTROM TECHNOLOGIES, INC.
                 ----------------------------------------------
                 (Name of small business issuer in its charter)

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

               1895 Airport Exchange Boulevard, Erlanger, Kentucky
               ---------------------------------------------------
                 41018 (Address of principal executive offices,
                               including zip code)

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

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 September 9, 1999, 23,794,598 shares of common stock, no par value per
share, were outstanding.

Transitional Small Business Disclosure Format:    Yes        No  X
                                                     ---        ---
<PAGE>   2
                           ANGSTROM TECHNOLOGIES, INC.

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Part I.  Financial Information
         Item 1.           Financial Statements:                                                         Page
                                                                                                         ----
<S>                      <C>                                                                          <C>

                           Balance Sheets as of July 31, 1999                                             3-4
                           and October 31, 1998

                           Statements of Operations for the Three Months                                    5
                           Ended July 31, 1999 and July 31, 1998 and
                           Nine Months ended July 31, 1999 and July 31,
                           1998

                           Statements of Cash Flows for the Nine Months                                     6
                           Ended July 31, 1999 and July 31, 1998

                           Notes to Financial Statements                                                 7-10

         Item 2.           Management's Discussion and Analysis of                                      11-14
                           Financial Condition and Results of Operations

Part II. Other Information

         Item 6.           Exhibits and Reports on Form 8-K                                                15

SIGNATURES                                                                                                 16
</TABLE>

                                        2

<PAGE>   3
                           Angstrom Technologies, Inc.
                           ---------------------------
                                  Balance Sheet
                                  -------------
<TABLE>
<CAPTION>
                                                    JUL. 31, 1999 OCT. 31, 1998
                                                    ------------- -------------
                                                     (UNAUDITED)      (NOTE)
<S>                                                <C>          <C>
ASSETS
Current assets:
   Cash and cash equivalents                         $  427,099   $  809,268
   Short-term investments                               504,815         --
   Accounts receivable, less allowances of $ 4,615       55,473      209,448
   Inventories:
     Finished goods                                     116,576      111,596
     Work in process                                        713        9,119
     Raw materials and parts                            669,726      719,370
                                                     ----------   ----------
                                                        787,015      840,085
   Prepaid expenses                                      22,655       22,588
                                                     ----------   ----------
Total current assets                                  1,797,057    1,881,389

Furniture and equipment, at cost                        176,454      173,820
   Less accumulated depreciation                        153,282      125,217
                                                     ----------   ----------
Net furniture and equipment                              23,172       48,603

Patents, less accumulated amortization of $23,461       128,203      125,672

                                                     ----------   ----------
Total assets                                         $1,948,432   $2,055,664
                                                     ==========   ==========
</TABLE>

NOTE:  The balance sheet at October 31, 1998 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>   4

                           Angstrom Technologies, Inc.
                           ---------------------------
                            Balance Sheet (continued)
                            -------------------------
<TABLE>
<CAPTION>
                                                                JUL. 31, 1999  OCT. 31, 1998
                                                                -------------  -------------
                                                                 (UNAUDITED)      (NOTE)
<S>                                                            <C>            <C>
LIABILITIES AND CAPITAL
Current liabilities:
   Accounts payable                                              $    16,829    $    43,185
   Accrued liabilities                                                51,075         71,427
   Long-term debt due within one year                                 14,560         33,100
                                                                 -----------    -----------
Total current liabilities                                             82,464        147,712

Long-term debt                                                          --            5,911

Capital:
     Preferred stock, $.01 par value; 5,000,000 shares
     authorized, 1,198,380 issued and outstanding (liquidation
     preference of $2.00 per share)                                1,970,627      2,128,780
     Common stock, $.01 par value; 45,000,000 shares
     authorized, 24,065,558 shares issued and outstanding            240,656        236,372
     Additional paid in capital                                    5,219,226      5,059,732
     Accumulated deficit                                          (5,564,541)    (5,522,843)
                                                                 -----------    -----------
Net capital                                                        1,865,968      1,902,041
                                                                 -----------    -----------
Total liabilities and capital                                    $ 1,948,432    $ 2,055,664
                                                                 ===========    ===========
</TABLE>


NOTE:  The balance sheet at October 31, 1998 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.

                                        4

<PAGE>   5
                           Angstrom Technologies, Inc.
                           ---------------------------
                            Statements of Operations
                            ------------------------
                                   (Unaudited)
                                   -----------
<TABLE>
<CAPTION>
                                            THREE MONTHS ENDED             NINE MONTHS ENDED
                                            ------------------             -----------------
                                      JULY 31, 1999   JULY 31, 1998   JULY 31, 1999  JULY 31, 1998
                                      -------------   -------------   -------------  -------------
<S>                                 <C>             <C>             <C>             <C>
Net sales                             $    131,146    $    693,636    $    699,743    $  1,562,868


Cost of sales                              142,441         227,543         352,352         534,973
                                      ------------    ------------    ------------    ------------

Gross profit                               (11,295)        466,093         347,391       1,027,895

   Selling, general and
       administrative expenses             101,965         255,770         418,387         651,916
                                      ------------    ------------    ------------    ------------

Operating income (loss)                   (113,260)        210,323         (70,996)        375,979

Other income (expense)
Interest expense                              (605)         (1,550)         (2,549)         (5,301)
Interest income                              5,006           5,553          27,032          18,227
Dividend income                              4,815            --             4,815            --
Gain on security sale                         --              --              --              (190)
                                      ------------    ------------    ------------    ------------
                                             9,216           4,003          29,298          12,736
                                      ------------    ------------    ------------    ------------

   Net income (loss)                      (104,044)         14,326         (41,698)        388,715
                                      ------------    ------------    ------------    ------------

   Less dividend requirement on
   preferred stock                         (36,616)        (50,523)       (138,766)       (156,082)
                                      ------------    ------------    ------------    ------------

   Net  income (loss) applicable to
   common stock                       $   (140,660)   $    163,803    $   (180,464)   $    232,633
                                      ============    ============    ============    ============



   Net  income (loss) per common
   share                              $       (.01)   $        .01    $       (.01)   $        .01
                                      ============    ============    ============    ============

Weight Average Number
of Shares Outstanding                   24,052,373      23,594,395      23,796,942      23,388,049
                                      ============    ============    ============    ============
</TABLE>

                                        5

<PAGE>   6
                           Angstrom Technologies, Inc.
                           ---------------------------
                            Statements of Cash Flows
                            ------------------------
                                   (Unaudited)
                                   -----------

<TABLE>
<CAPTION>
                                                           NINE MONTHS ENDED JULY 31,
                                                           --------------------------
                                                              1999         1998
                                                            ---------    ---------
<S>                                                       <C>          <C>
OPERATING ACTIVITIES
Net income (loss)                                           $ (41,698)   $ 388,715
   Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
     Depreciation and amortization                             34,293       33,103
     Dividends received                                        (4,815)        --
     Changes in operating assets and liabilities:
       Accounts receivable                                    153,975     (314,477)
       Interest receivable                                       --          1,207
       Advances to suppliers                                     --         (3,585)
       Inventories                                             53,070     (270,344)
       Prepaid expenses                                           (67)       7,267
       Accounts payable                                       (26,356)     (33,488)
       Accrued liabilities                                    (20,352)      55,216
                                                            ---------    ---------
Net cash provided by (used in) operating activities           148,050     (136,386)

INVESTING ACTIVITIES
Purchases of furniture and equipment                           (2,634)     (10,113)
Proceeds from sale of investments                                --        613,380
Purchase of investments                                      (500,000)        --
Capitalization of patents                                      (8,759)      (4,042)
                                                            ---------    ---------
Net cash provided by (used in) investing activities          (511,393)     599,225

FINANCING ACTIVITIES
Proceeds from stock options exercises                           5,625       20,500
Principal repayments of long-term debt                        (24,451)     (21,700)
                                                            ---------    ---------
Net cash used by financing activities                         (18,826)      (1,200)
                                                            ---------    ---------

Net increase (decrease) in cash                              (382,169)     461,639
Cash and cash equivalents at beginning of year                809,268       73,112
                                                            ---------    ---------
Cash and cash equivalents at end of year                    $ 427,099    $ 534,751
                                                            =========    =========

SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash paid for interest                                      $   2,549    $   5,301
</TABLE>

                                        6

<PAGE>   7
                           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 nine month period ended July 31, 1999 is not
         necessarily indicative of the results that may be expected for the year
         ended October 31, 1999. 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, 1998.


Note 2   In February 1997, the Financial Accounting Standards Board ("FASB")
         issued Statement No. 128, "Earnings per Share." Statement No. 128
         replaced the previously reported primary and fully diluted earnings per
         share with basic and diluted earnings per share. Unlike primary
         earnings per share, basic earnings per share exclude any dilutive
         effects of stock options and convertible securities. Diluted earnings
         per share is very similar to the previously reported fully diluted
         earnings per share. All earnings per share amounts for all periods have
         been presented, and where necessary, restated to conform to Statement
         No. 128 requirements.

Note 3   Earnings per common share are calculated based upon a weighted
         average of shares outstanding after giving effect to the preferred
         dividend requirements.

Note 4   The preferred stock issued December 22, 1993 provided for an annual
         cumulative dividend to be paid on November 1st each year. 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 October 31, 1998 ($924,193) and 1997 ($717,116),
         in arrears. No dividend was accrued for the years ended October 31,
         1998 and 1997. The amount that would have been accrued at October 31,
         1998 and 1997, if a dividend had been recorded, would have been
         $207,077 and $213,758, respectively. ($.16 per preferred stock share
         outstanding at November 1, 1998 and 1997). No dividend has been accrued
         for the nine month period ended July 31, 1999. The amount that would
         have been accrued at July 31, 1999 and 1998, if a dividend had been
         recorded, would have been $143,806 and $156,082, respectively.

Note 5   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.

                                        7

<PAGE>   8
                           ANGSTROM TECHNOLOGIES, INC.
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                   (UNAUDITED)
                                   -----------


Note 5  (continued)

         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. The
         Class A purchase warrants expired on December 12, 1998.

         For the nine months ended July 31, 1999, preferred stock conversions
         were as follows:

<TABLE>
<CAPTION>
         Conversion                 Preferred                   Common Stock
         Date                       Stock                       Received
                                    Converted
         -------------------        ----------------            ---------------------

<S>                                 <C>                             <C>
         02/03/99                              3,500                           14,000
         02/09/99                              2,000                            8,000
         02/11/99                              6,850                           27,400
         02/17/99                              5,000                           20,000
         05/06/99                             30,000                          120,000
         05/06/99                              4,000                           16,000
         05/12/99                             37,740                          150,960
         05/13/99                              6,760                           27,040
                                              ------                          -------

                                              95,850                          383,400
                                              ======                          =======
</TABLE>

         The preferred stock has a liquidation preference of $2.00 per share, an
         aggregate of $2,396,760.

Note 6   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 July 31, 1999 and October 31, 1998
         are presented below:


<TABLE>
<CAPTION>
                                                                    July 31, 1999          October 31, 1998
                                                                  ------------------       ---------------------
<S>                                                             <C>                      <C>
          Deferred tax assets:
               Net operating loss                                 $       1,311,900        $          1,291,700
               Other, net                                                    10,700                       9,700
                                                                  ------------------       ---------------------

               Total deferred tax assets                                  1,322,600                   1,301,400
               Less:  valuation allowance                                (1,322,600)                 (1,301,400)
                                                                  ------------------       ---------------------

                    Net Deferred Tax Asset                        $             -0-        $                -0-
                                                                  ==================       =====================
</TABLE>

         The company entered fiscal 1999 with cumulative net operating loss
         carryforwards of approximately $3,270,000 for federal income tax
         purposes, which expire in the years 2000 to 2010.

                                        8

<PAGE>   9
                          ANGSTROM TECHNOLOGIES, INC.
                          ---------------------------
                         NOTES TO FINANCIAL STATEMENTS
                         -----------------------------
                                  (UNAUDITED)
                                  -----------



Note 7   The computation of basic and diluted earnings (loss) per share is
         shown below:

<TABLE>
<CAPTION>
                                                                      Nine Months Ended July 31,

                                                                          1999           1998
                                                                     ------------    ------------
         <S>                                                       <C>             <C>
         Numerator:

         Net income (loss)                                           $    (41,698)   $    388,715
         Preferred stock dividend requirement                            (143,806)       (156,082)
                                                                     ------------    ------------

         Numerator for basic earnings per share - net income
            (loss) applicable to common stock                            (185,504)        232,633

         Effect of dilutive securities - preferred stock dividends
            and adjustments resulting from assumed conversion                --              --

                                                                     ------------    ------------
         Numerator for diluted earnings per share - net income
            (loss) applicable to common stock after assumed          $   (180,504)   $    232,633
                                                                     ============    ============
         Denominator:

         Denominator for basic earnings per share - weighted
            average shares outstanding                                 23,783,403      23,388,049

         Effect of dilutive securities:
            Convertible preferred stock
            Assumed issuance of stock under stock option
               plans based on treasury stock method                       694,342       2,499,787
                                                                     ------------    ------------

         Denominator for diluted earnings per share -
            weighted average shares outstanding and
            impact of dilutive securities                              24,477,745      25,887,836
                                                                     ============    ============

         Basic earnings (loss) per share                             $       (.01)   $        .01
                                                                     ============    ============

         Fully diluted earnings (loss) per common share              $       (.01)   $        .01
                                                                     ============    ============
</TABLE>

         Securities that could potentially dilute basic earnings per share in
         the future that were not included in the computation of diluted
         earnings per share above because to do so would have been antidulitive
         are as follows: (convertible preferred stock 4,793,520 and 5,202,720
         shares at July 31, 1999 and 1998 respectively).

                                        9

<PAGE>   10
                           ANGSTROM TECHNOLOGIES, INC.
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                   (UNAUDITED)
                                   -----------



Note 8   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
         evaluates the recoverability of these assets in accordance with
         Statement of Financial Standards No. 121, "Accounting for the
         Impairment of Long-Lived Assets and for Long-Lived Assets to be
         Disposed of (SFAS #121)."

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

Note 9   As part of finalizing the Company's third quarter financial
         statements, management undertook a review of the salability of various
         hardware components included in inventory at historical cost. Based
         upon this review, an inventory write down of $86,930 was booked and is
         included in cost of sales in the quarter ended July 31, 1999.



                                       10

<PAGE>   11
           SPECIAL CAUTIONARY NOTICE REGARD FORWARD-LOOKING STATEMENTS

Certain of the matters discussed under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations" may constitute
forward-looking statements for purposes of the Securities Act of 1933 and the
Securities Exchange Act of 1934, as amended, and as such may involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from future results, performance or achievements expressed or implied by such
forward-looking statements. The words "expect," "estimate," "anticipate,"
"predict," "may," "should," and similar expressions are intended to identify
forward-looking statements. All written or oral forward-looking statements
attributable to the Company are expressly qualified as set forth herein.


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

NINE MONTHS ENDED JULY 31, 1999 COMPARED TO NINE MONTHS ENDED JULY 31, 1998.

     Net sales for the first nine months of fiscal 1999 were $699,743, a
decrease of approximately 55.2% from the approximately $1,562,868 in net sales
in the corresponding period of fiscal 1998. This decrease in sales was primarily
a result of the loss of one of the Company's significant customers and the
absence of a major sales order from a contractor for the U.S. Postal Service
which was expected in the third quarter of fiscal 1999, especially in light of
the significant sales of compounds for government security applications to a
subcontractor of the United States Government in the second and third quarters
of fiscal 1998.

     Cost of sales for the first nine months of fiscal 1999 as a percentage of
overall sales increased to 50.4% from 34.2% for the first nine months of fiscal
1998. This increase was primarily due to an inventory write down of $86,930 in
the third quarter of fiscal 1999 upon management's evaluation of the
unsalability of a portion of the finished goods and raw materials and parts
inventory of scanners.

     Selling, general and administrative expenses decreased 35.8% from $651,916
in the first nine months of fiscal 1998 to $418,387 in the corresponding period
of fiscal 1999. This decrease was primarily due to reduced expenditures for
employee compensation as a result of terminations, reduced work schedules and
reduced commissions to executive officers as a result of lower sales.

     Interest expense decreased 51.9% from $5,301 in the first nine months of
1998 to $2,549 in the corresponding period of fiscal 1999. Interest income
increased 48.3% from $18,227 in the first nine months of 1998 to $27,032 in the
corresponding period of fiscal 1999. The changes in interest expense, which
include service fees on cash accounts, and interest

                                       11

<PAGE>   12



income were primarily a result of the Company moving a portion of its cash
balances into higher yielding short-term investments with lower fees in the
third quarter of fiscal 1999.

     Due to the foregoing, the Company experienced a net loss of $41,698 before
dividend requirements in the first nine months of fiscal 1999 as compared with
net income of $388,715 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.

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
historically has not 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 of $427,099 at the end of the
third quarter of fiscal 1999 as compared with $809,268 as at the end of fiscal
1998, reflecting a decrease in these categories of $382,169, or 47.2%. This
decrease was primarily a result of the Company moving a portion of its cash
balances into higher yielding short-term investments in the third quarter of
1999, which at the end of the third quarter of fiscal 1999 totaled $504,815.
The Company experienced a decrease in trade accounts receivable of $153,975,
or 73.5%, due to reduced sales. While the Company's inventory of chemicals is
increasing, total inventories decreased by $53,070, or 6.9%. This reduction
was primarily the result of the Company writing down unsaleable finished goods
and raw materials and parts inventory of scanners by $5,248 and $81,682,
respectively.
The Company expects to see a continued build up in chemicals due to the loss of
a significant customer for chemicals. Work in process inventory decreased 92.2%
from $9,119 at the end of fiscal 1998 to $713 at the end of the third quarter of
fiscal 1999. This significant decrease was a result of the Company not
manufacturing scanners during this period. The Company experienced a decrease in
accounts payable of $26,356, or 61.0%, as a result of reduced purchases due to
lower sales.

     As indicated in Note 4 to these financial statements, no preferred dividend
has been accrued for the first three quarters of fiscal 1999 since management
has determined to conserve available funds and maintain the Company's liquidity
in light of its needs to continue developmental and marketing expenditures. The
Company anticipates that existing funds will enable it to fund its operating and
capital needs through at least October 31, 1999, 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.


                                       12

<PAGE>   13



YEAR 2000 ISSUES

     The following is a discussion of the Year 2000 date issue ("Year 2000
issue") as it affects the Company. The Year 2000 issue arises from the fact that
many computer programs and embedded chips in other forms of technology use only
the last two digits to identify a year in a date field.

The Company's State of Readiness

     The Company currently believes its potential exposure to problems arising
from the Year 2000 issue lies primarily in two areas: the Company's internal
operating systems which include both information technology ("IT") and non-IT
components (such as computer chips imbedded in hardware) and Year 2000
compliance by third parties with whom the Company has a material relationship.

     Internal operating systems. The Company has completed an assessment of its
Year 2000 compliance for its products and critical internal systems and
identified no major issues. The Company purchased its internal computer system
from IBM in 1996 and IBM documented that the system is Year 2000 compliant. If
the Company experiences Year 2000 issues, the Company intends to manually
maintain the Company's internal records until such issues are resolved.

     Third party relationships. Ultimately, the potential impact of the Year
2000 issue will depend not only on the actions taken by the Company, but also
how the Year 2000 issue is addressed by customers, vendors, service providers,
utilities, governmental agencies and other entities with which the Company does
business. Although the Company is rarely dependent on a single source of supply
for its components, and purchases most of them off the shelf, it has
communicated with the most significant of these third parties regarding their
Year 2000 readiness, and believes they are Year 2000 compliant. If the Company
determines it may experience a shortage of supply, the Company has capacity to
maintain additional inventory. The Year 2000 efforts of third parties are not
within the Company's control, however, their failure to respond to Year 2000
issues successfully could result in business disruption and increased operating
costs for the Company.

Costs to Address the Company's Year 2000 Issues

     To date, the Company has incurred costs of approximately $30,000 in
identifying or remedying Year 2000 issues. The Company cannot reasonably
estimate costs which may be required for remediation or for implementation of
contingency plans with respect to third party relationships. There can be no
assurance that if additional Year 2000 issues are raised, the Company's costs to
remediate such issues will be consistent with its historical costs.


                                       13

<PAGE>   14



Risks of the Company's Year 2000 Issues

     The Company believes the most reasonably likely worst case Year 2000
scenario would include a combination of some or all of the following:

-    Non-IT components in HVAC, lighting, telephone, security and similar
     systems might fail.

-    Communications with customers and vendors may fail or give erroneous
     information. These types of problems could result in such difficulties
     as the inability to receive or process customer orders, or shipping delays.

-    The unavailability of product as a result of Year 2000 problems
     experienced by one or more vendors of the Company.

The Company's Contingency Plans

     The Company does not believe it will incur a material financial impact from
the risk of failure, or from the costs associated with assessing the risks of
failure, arising from the Year 2000 issue. Consequently, the Company does not
intend to create a contingency plan other than as set forth above.

     The foregoing discussion regarding the Year 2000 project's timing,
effectiveness, implementation, and cost contains forward-looking statements
which are based on management's best estimates derived using assumptions. These
forward-looking statements involve inherent risks and uncertainties, and actual
results could differ materially from those contemplated by such statements.
Factors that might cause material differences include, but are not limited to,
the readiness of third parties and the Company's ability to respond to
unforeseen Year 2000 complications. Such material differences could result in,
among other things, business disruptions, operational problems, financial loss
and similar risks.


                                       14

<PAGE>   15
                                     PART II

ITEM 6.             EXHIBITS AND REPORTS ON FORM 8-K

       (a)          Exhibits
                    --------

       27           Financial Data Schedule


       (b)          Reports on Form 8-K

                  On August 6, 1999, the Company filed a report on Form 8-K
dated August 2, 1999 reporting the resignation of Daniel A. Marinello as the
President, Chief Executive Officer and Chief Financial Officer of the Company
and the appointment of Louis Liang as the Interim President and Chief Executive
Officer and William Ryan as the Interim Chief Financial Officer.




                                       15

<PAGE>   16


                                   SIGNATURES

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

                           ANGSTROM TECHNOLOGIES, INC.


                       By: /s/ Louis Liang
                           ----------------------------
                           Louis Liang, Interim Chief
                                Executive Officer


                       By: /s/ William Ryan
                           ----------------------------
                           William Ryan, Interim Chief
                                Financial Officer


Dated: September 13, 1999

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