<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: April 30, 1998

[ ] 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 June 8, 1998, 23,588,158 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

Part I.  Financial Information
<TABLE>
<CAPTION>

                  Item 1.  Financial Statements:                                        Page
                                                                                        ----

<S>                                                                                      <C>
                                    Balance Sheets as of  April 30, 1998                 3-4
                                    and October 31, 1997

                                    Statements of Operations for the Three Months          5
                                    Ended April 30, 1998 and April 30, 1997 and
                                    Six Months ended April 30, 1998 and April 30,
                                    1997

                                    Statements of Cash Flows for the Six Months            6
                                    Ended April 30, 1998 and April 30, 1997

                                    Notes to Financial Statements                        7-9

                  Item 2.  Management's Discussion and Analysis of                        10
                  Financial Condition and Results of Operations

Part II. Other Information                                                                  

                  Item 6.  Exhibits and Reports on Form 8-K                               11

                  SIGNATURES                                                              12

</TABLE>


                                       2
<PAGE>   3
                           Angstrom Technologies, Inc.
                           ---------------------------
                                  Balance Sheet
                                  -------------
<TABLE>
<CAPTION>

                                                                          APR. 30,            OCT. 31, 1997
                                                                          --------            -------------
                                                                            1998                 (NOTE)
                                                                            ----
                                                                        (UNAUDITED)
<S>                                                               <C>                         <C>        
ASSETS
Current assets:
   Cash and cash equivalents                                      $       45,698              $    73,112
   Short-term investments                                                273,162                  613,380
   Accounts receivable, less allowances of $12,549                       485,419                  133,596
   Interest receivable                                                       761                    1,207
   Advances to suppliers                                                 107,657                       --
   Inventories:
     Finished goods                                                      123,516                   97,389
     Work in process                                                       2,098                    1,506
     Raw materials and parts                                             601,601                  538,141
                                                                  ---------------------------------------------
                                                                         727,215                  637,036
   Prepaid expenses                                                       34,766                   41,268
                                                                  ---------------------------------------------
Total current assets                                                   1,674,678                1,499,599

Furniture and equipment, at cost                                         165,393                  159,665
   Less accumulated depreciation                                         103,644                   84,633
                                                                  ---------------------------------------------
Net furniture and equipment                                               61,749                   75,032

Patents, less accumulated amortization of $12,056                        125,511                  127,098
                                                                  ---------------------------------------------

Total assets                                                          $1,861,938               $1,701,729
                                                                  =============================================
</TABLE>


NOTE: The balance sheet at October 31, 1997 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>

                                                                         APR. 30, 1998     OCT. 31, 1997
                                                                         -------------     -------------
                                                                          (UNAUDITED)         (NOTE)
<S>                                                                     <C>              <C>       
LIABILITIES AND CAPITAL
Current liabilities:
   Accounts payable                                                     $       66,151     $     85,992
   Accrued liabilities                                                          76,854           69,943
   Long-term debt due within one year                                           29,375           29,375
                                                                        -----------------------------------
Total current liabilities                                                      172,380          185,310

Long-term debt                                                                  24,762           39,011

Capital:
   Preferred stock, $.01 par value; 5,000,000 shares 
     authorized, 1,319,490 issued and outstanding 
     (liquidation preference of $2.00 per share)                             2,159,816        2,197,684
   Common stock, $.01 par value; 45,000,000 shares authorized,
     23,496,918 shares issued and outstanding                                  234,969          232,552
   Additional paid in capital                                                5,021,973        4,973,523
   Accumulated deficit                                                      (5,751,962)      (5,926,351)
                                                                        -----------------------------------
Net capital                                                                  1,664,796        1,477,408
                                                                        -----------------------------------

Total liabilities and capital                                               $1,861,938       $1,701,729
                                                                        ===================================
</TABLE>


NOTE: The balance sheet at October 31, 1997 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                    SIX MONTHS ENDED
                                              ------------------                    ----------------
                                          APRIL 30,         APRIL 30,         APRIL 30,          APRIL 30,
                                          ---------         ---------         ---------          ---------
                                            1998              1997               1998               1997
                                            ----              ----               ----               ----

<S>                                      <C>                <C>            <C>                   <C>        
Net sales                                $   672,358        $  433,183     $     869,232         $   855,979

Cost of Sales                                201,729           129,293           307,430             248,743
                                         ------------       ----------     --------------        -----------

Gross profit                                 470,629           303,890           561,802             607,236

Selling, general and
    administrative expenses                  227,473           225,463           396,146             452,828
                                             -------           -------           -------             -------
                                             243,156            78,427           165,656             154,408
Other income (expense):
Interest expense                              (1,769)           (2,583)           (3,751)             (5,355)
Interest income                                4,750            12,595            12,674              19,776
Loss on security sale                           (190)               --              (190)                 --
                                         ------------       ----------     --------------        -----------
                                               2,791            10,012             8,733              14,421
                                         ------------       ----------     --------------        -----------

Net income                                   245,947            88,439           174,389             168,829
                                         ------------       ----------     --------------        -----------

Less dividend requirement on
   preferred stock                           (52,119)          (54,819)         (105,559)           (109,600)
                                         ------------       ----------     --------------        -----------

Net income applicable to common
   stock                                 $   193,828       $    33,620       $    68,830         $    59,229
                                         ===========       ===========       ===========         ===========

Net income per common share
                                         $       .01       $       --        $        --         $        --
                                         ===========       ===========       ===========         ===========

Weight Average Number
of Shares Outstanding                     23,292,651        22,537,466        23,282,856          22,512,045
                                         ===========       ===========       ===========         ===========
</TABLE>

                                      -5-
<PAGE>   6


                           Angstrom Technologies, Inc.
                            Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                           SIX MONTHS ENDED APR. 30,
                                                                       -----------------------------------
                                                                              1998             1997
                                                                       -----------------------------------
<S>                                                                      <C>            <C>      
OPERATING ACTIVITIES
Net income                                                               $  174,389        $ 168,828
Adjustments to reconcile net income to net cash used in operating
   activities:
     Depreciation and amortization                                           23,016           10,204
     Changes in operating assets and liabilities:
       Accounts receivable                                                 (351,823)          13,238
       Interest receivable                                                      446               90
       Advances to suppliers                                               (107,657)         (19,148)
       Inventories                                                          (90,179)        (148,111)
       Prepaid expenses                                                       6,502          (11,578)
       Accounts payable                                                     (19,842)         (52,110)
       Accrued liabilities                                                    6,911           28,556
                                                                       -----------------------------------
Net cash used in operating activities                                      (358,237)         (10,031)

INVESTING ACTIVITIES
Purchases of furniture and equipment                                         (5,728)         (12,585)
Proceeds from sale of investments                                           340,218          195,048
Capitalization of patents                                                    (2,418)         (16,643)
                                                                       -----------------------------------
Net cash provided by investing activities                                   332,072          165,820

FINANCING ACTIVITIES
Proceeds from stock option exercises                                         13,000           12,500
Principal repayments of long-term debt                                      (14,249)         (14,250)
                                                                       -----------------------------------
Net cash used by financing activities                                        (1,249)          (1,750)
                                                                       -----------------------------------

Net (decrease) increase in cash                                             (27,414)         154,039
Cash and cash equivalents at beginning of year                               73,112           24,175
                                                                       -----------------------------------
Cash and cash equivalents at end of year                                $    45,698        $ 178,214
                                                                       ===================================

SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash paid for interest                                                  $     3,751      $     5,355
</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 three month period ended April 30, 1998 are
         not necessarily indicative of the results that may be expected for the
         year ended October 31, 1998. 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, 1997.

Note 2   Net income per common share is calculated based upon a weighted
         average number 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, 1997. The amount that would have
         been accrued at October 31, 1997, if a dividend had been recorded,
         would have been $213,758 ($.16 per preferred stock share outstanding at
         November 1, 1996). No dividend has been accrued for the three-month
         period ended April 30, 1998. The amount that would have been accrued at
         April 30, 1998, if a dividend had been recorded, would have been
         approximately $105,559.

Note 4   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 excludes any dilutive
         effects of stock options and convertible securities. Diluted earnings
         per share are 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 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 shares 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.

                                      -7-

<PAGE>   8


For the three months ended April 30, 1998, preferred stock conversions were as
follows:

<TABLE>
<CAPTION>

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

<S>                 <C>                          <C>                     <C>   
                    04/02/98                     5,000                   20,000
                    04/17/98                     3,000                   12,000
                    04/23/98                     6,500                   26,000
                    04/30/98                     2,000                    8,000
                                                 -----                   ------

                                                16,500                   66,000
                                                ======                  =======
</TABLE>

         The preferred stock has a liquidation preference of $2.00 per share, an
         aggregate of $2,638,980.

Note 6   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
         April 30, 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 April 30,
         1998 and October 31, 1997 are presented below:

<TABLE>
<CAPTION>

                                                                  April 30,              October 31, 1997
                                                                    1998
                                                                --------------           ------------------

<S>                                                                <C>                       <C>       
          Deferred tax assets:
               Net operating loss                                  $ 1,394,000               $1,468,000
               Other, net                                                8,700                    7,100
                                                                  ------------              -----------

               Total deferred tax assets                             1,402,700                1,475,100
               Less:  valuation allowance                           (1,402,700)              (1,475,100)
                                                                    -----------              ----------

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

         The company entered fiscal 1998 with cumulative net operating loss
         carryforwards of approximately $3,700,000 for federal income tax
         purposes, which expire in the years 2000 to 2010.

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
         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.

                                      -8-
<PAGE>   9


Note 8 The computation of basic and diluted earnings per share is shown below:
<TABLE>
<CAPTION>

                                                                      Six Months Ended
                                                                         April 30,
                                                                   1998             1997
                                                              ---------------------------------
Numerator:

<S>                                                                  <C>               <C>    
Net income                                                           $174,389          168,829
Preferred stock dividend requirement                                 (105,559)        (109,600)
                                                              ---------------------------------

Numerator for basic earnings per share - net income
   applicable to common stock                                          68,830           59,229

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

Numerator for diluted earnings per share - net income
   applicable to common stock after assumed conversion                $68,830          $59,229
                                                              =================================

Denominator:

Denominator for basic earnings per share - weighted
   average shares outstanding                                      23,282,856       22,512,045

Effect of dilutive securities:
   Convertible preferred stock
                                                                           --               --
   Assumed issuance of stock under stock
      plans based on treasury stock method                          2,894,173        3,516,173
                                                              ---------------------------------

Denominator for diluted earnings per share -
   weighted average shares outstanding and
   impact of dilutive securities                                   26,177,029       26,028,218
                                                              =================================


Earnings per common share
                                                                           --               --
                                                              =================================

Fully diluted earnings per common share
                                                                           --               --
                                                              =================================
</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 antidilutive are as follows: convertible
preferred stock (5,277,960 and 5,481,900 shares at April 30, 1998 and 1997,
respectively).

                                      -9-
<PAGE>   10

           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.

SIX MONTHS ENDED APRIL 30, 1998 COMPARED TO SIX MONTHS ENDED APRIL 30, 1997.

         Net sales for the first six months of fiscal 1998 were $869,232, an
increase of approximately 1.5% from the approximately $855,979 in net sales in
the corresponding period of fiscal 1997. This increase was primarily a result of
significant sales of compounds for government security application to a
subcontractor of the United States Government in the second quarter of fiscal
1998, which offset significantly lower net sales in the first quarter of fiscal
1998 compared to the first quarter of fiscal 1997. The Company expects to
receive orders from this customer on an on-going basis. However, there can be no
assurance that such orders will be forthcoming. Net sales in the second quarter
of fiscal 1998 exceed net sales in any quarter since the Company's inception and
increased approximately 55.2% from the second quarter of fiscal 1997.

         Cost of sales for the first six months of fiscal 1998 as a percentage
of overall sales increased to 35.4% from 29.1% for the first six months of
fiscal 1997. This increase was primarily due to the concentration of sales to
one customer in the second quarter of fiscal 1998.

         Selling, general and administrative expenses decreased 12.5% from
$452,828 in the first six months of fiscal 1997 to $396,146 in the corresponding
period of fiscal 1998. This decrease was primarily due to the reduction of
research and development expenditures as the Company approaches completion of
development of certain of its products.

         Due to the foregoing, the Company experienced a net income of $174,389
before dividend requirements in the first six months of fiscal 1998 as compared
with net income of $168,829 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.

                                       10

<PAGE>   11


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 $318,860
at the end of the second quarter of fiscal 1998 as compared with $686,492 as at
the end of fiscal 1997, reflecting a decrease in these categories of $367,632,
or 53.6%. This decrease is primarily a result of the Company building up its
inventory to enable it to fulfill future orders by the subcontractor of the
United States government and making advances to suppliers of components. There
can be no assurance that such orders will be forthcoming. The Company
experienced an increase in trade accounts receivable of $351,823, or 263.3%, due
to significant sales on account of compounds to a United States Government
subcontractor in the second quarter of fiscal 1998. The Company's inventories
increased at the end of the second quarter by $90,179 or 14.2% as compared to
the end of fiscal 1997 for the reason described above. As indicated in Note 3 to
these financial statements, no preferred dividend has been accrued for the first
two quarters of fiscal 1998 since management has determined to conserve
available funds and maintain the Company's liquidity in light of its need 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, 1998, 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.

                                     PART II

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

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

         27       Financial Data Schedule

         (b)      Reports on Form 8-K

                  None




<PAGE>   12


                                    SIGNATURE

         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/ Daniel A. Marinello
                                           -------------------------------------
                                            Daniel A. Marinello, Chief Executive
                                            Officer and Chief Financial Officer


Dated: June 10, 1998

                                       12