UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

               QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(D) OF

                       THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended: March 31, 2000           Commission file number: 33-23617

                           MATERIAL TECHNOLOGIES, INC.
                         - ---------------------------
             (Exact name of registrant as specified in its charter)



                  DELAWARE                                      95-4622822
                  --------                                      ----------
(State or other jurisdiction of incorporation                 (IRS Employer
              or organization)                               identification No.)


                           11661 San Vicente Boulevard
                                    Suite 707
                         LOS ANGELES, CALIFORNIA 90049
                         -----------------------------
                    (address of principal executive offices)
                                (Zip Code) 90064


                                 (310) 208-5589
                                 --------------
               (Registrant's telephone number including area code)

           Securities Registered pursuant to Section 12(g) of the Act:

                                     COMMON
                                     ------

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/ No / /

         Indicate by check mark if disclosure of delinquent  filers  pursuant to
Item 405 or Regulation S-K is not contained  herein,  and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment of this form 10-K. [ ]

         The aggregate  market value of the voting stock held by  Non-affiliates
of the registrant at April 24, 2000 was $2,749,322.

         Documents incorporated by reference-None.



                                        1

<PAGE>

                                      INDEX

                                                                          PAGE
                                                                         -----
Part 1. Financial Statements

         Balance Sheets                                                  3 - 4

         Statements of  Operations  -
            First Quarter Ended March 31, 1999 and 2000
            and from the Company's inception (October
            21, 1983) through March 31, 2000                               5


         Statements of Cash Flows

            First Quarter Ended March 31, 1999 and 2000
            and from the Company's inception (October
            21, 1983) through March 31, 2000                             6 - 7


         Notes to Financial Statements                                     8


         Management's Discussion and Analysis                              9



Part 2.  Other Information                                                10









                                        2


<PAGE>

<TABLE>

MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
BALANCE SHEETS

ASSETS
<CAPTION>

                                                    December 31,       March 31,
                                                            1999           2000
--------------------------------------------------------------------------------
<S>                                                     <C>             <C>
CURRENT ASSETS

  Cash and Cash Equivalents ....................        $ 62,904        $216,212
  Accounts Receivable ..........................         144,796          73,950
  Receivable from Officer ......................            --               169
  Employee Advance .............................           1,500           1,500
                                                        --------        --------
    TOTAL CURRENT ASSETS .......................         209,200         291,831
                                                        --------        --------
FIXED ASSETS

  Property and Equipment, Net
      of Accumulated Depreciation ..............           3,949           3,709
                                                        --------        --------
OTHER ASSETS

  Intangible Assets, Net of
      Accumulated Amortization .................          14,701          14,204
  Investments ..................................          20,055          20,055
  Refundable Deposit ...........................           2,136           2,136
                                                        --------        --------
    TOTAL OTHER ASSETS .........................          36,892          36,395
                                                        --------        --------
    TOTAL ASSETS ...............................        $250,041        $331,935
                                                        ========        ========

</TABLE>




                             See accompanying Notes

                                        3


<PAGE>

<TABLE>

MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
BALANCE SHEETS

<CAPTION>
                                                                   December 31,      March 31,
                                                                           1999           2000
                                                                                    (Unaudited)
----------------------------------------------------------------------------------------------
<S>                                                                 <C>            <C>
LIABILITIES AND STOCKHOLDERS'  (DEFICIT)

CURRENT LIABILITIES
  Legal Fees Payable ............................................   $   145,900    $   152,658
  Fees Payable to R&D Subcontractor .............................       101,322           --
  Consulting Fees Payable .......................................       159,000        159,202
  Accounting Fees Payable .......................................        24,153         31,293
  Other Accounts Payable ........................................        18,122          6,804
  Accrued Expenses ..............................................        24,269         24,269
  Notes Payable - Current Portion ...............................        84,007         84,818
  Loan Payable - Officer ........................................        10,270           --
                                                                    -----------    -----------
    TOTAL CURRENT LIABILITIES ...................................       567,043        459,044

  Payable on Research and
     Development Sponsorship ....................................       303,543        317,203
                                                                    -----------    -----------
    TOTAL LIABILITIES ...........................................       870,586        776,247
                                                                    -----------    -----------

STOCKHOLDERS' EQUITY (DEFICIT)
  Class A Common Stock, $.001 Par Value, Authorized 100,000,000
     Shares, Outstanding 14,597,435 at December 31, 1999, and
     15,101,796 shares at March 31, 2000 ........................        14,597         15,101
  Class B Common Stock, $.001 Par Value, Authorized 100,000
     Shares, Outstanding 60,000 Shares at December 31, 1999, and
     100, 000 Shares at March 31, 2000 ..........................            60            100
   Class A Preferred, $.001 Par Value, Authorized  900,000 Shares
     Outstanding 350,000 Shares .................................           350            350
  Additional Paid in Capital ....................................     3,455,004      3,503,410
  Less Notes Receivable - Common Stock ..........................       (39,694)       (40,648)
  Deficit Accumulated During the Development Stage ..............    (4,052,917)    (3,924,680)
  Unrealized Holding Gain on Investment Securities ..............         2,055          2,055
                                                                    -----------    -----------
  TOTAL STOCKHOLDERS' (DEFICIT) .................................      (620,545)      (444,312)
                                                                    -----------    -----------
    TOTAL LIABILITIES AND STOCKHOLDERS'
       (DEFICIT) ................................................   $   250,041    $   331,935
                                                                    ===========    ===========
</TABLE>




                              See accompanying Notes

                                        4


<PAGE>

<TABLE>


MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS

<CAPTION>

                                                                              From Inception
                                                 For the Three Months Ended     (October 21,
                                                          March 31,            1983) Through
                                                    1999            2000      March 31, 2000
                                                ------------    ------------  --------------
                                                 (Unaudited)     (Unaudited)     (Unaudited)
<S>                                             <C>            <C>              <C>
REVENUES
  Sale of Fatigue Fuses .....................   $       --      $       --      $     64,505
  Sale of Royalty Interests .................           --              --           198,750
  Research and Development Revenue ..........        198,860         180,847       2,528,645
  Test Services .............................           --              --            10,870
                                                ------------    ------------    ------------
    TOTAL REVENUES ..........................        198,860         180,847       2,802,770
                                                ------------    ------------    ------------

COSTS AND EXPENSES
  Research and Development ..................          8,077          90,617       2,465,816
  General and Administrative ................        192,373         198,809       4,367,973
                                                ------------    ------------    ------------
    TOTAL COSTS AND EXPENSES ................        200,450         289,426       6,833,789
                                                ------------    ------------    ------------
    INCOME (LOSS) FROM OPERATIONS ...........         (1,590)       (108,579)     (4,031,019)
                                                ------------    ------------    ------------

OTHER INCOME (EXPENSE)
  Expense Reimbursed ........................           --              --             4,510
  Interest Income ...........................             66           1,038          43,154
  Interest Expense ..........................           --           (15,220)       (200,105)
  Gain on Sale of  Stock ....................          4,396         251,798         459,295
  Miscellaneous Income ......................           --              --            25,145
  Loss on Sale of Equipment .................           --              --           (12,780)
  Gain on Foreclosure .......................           --              --            18,697
  Modification of Royalty Agreement .........           --              --            (7,332)
  Settlement of Teaming .....................           --              --            50,000
  Litigation Settlement .....................           --              --            18,095
                                                ------------    ------------    ------------
    TOTAL OTHER INCOME ......................          4,462         237,616         398,679
                                                ------------    ------------    ------------

NET INCOME (LOSS) BEFORE EXTRAORDINARY
  ITEMS AND PROVISION FOR INCOME TAXES ......          2,872         129,037      (3,632,340)
PROVISION FOR INCOME TAXES ..................           (800)           (800)         (9,400)
                                                ------------    ------------    ------------
NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS           2,072         128,237      (3,641,740)
EXTRAORDINARY ITEMS
  Forgiveness of Debt .......................           --              --          (289,940)
  Utilization of Operating Loss Carry forward           --              --             7,000
                                                ------------    ------------    ------------
    NET INCOME (LOSS) .......................   $      2,072    $    128,237    $ (3,924,680)
                                                ============    ============    ============

PER SHARE DATA
  Basic Income (Loss) Before Extraordinary
    Item ....................................   $     0.0002    $     0.0087

  Basic Extraordinary Items .................           --              --
                                                ------------    ------------
  BASIC NET INCOME (LOSS) PER SHARE .........   $     0.0002    $     0.0087
                                                ============    ============
  WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      10,236,897      14,791,730
                                                ============    ============
</TABLE>



                              See accompanying Notes

                                        5

<PAGE>

<TABLE>

MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS

<CAPTION>

                                                                                From Inception
                                                                                  (October 21,
                                                    For the Three Months Ended   1983) Through
                                                             March 31,               March 31,
                                                       1999            2000            2000
                                                   -----------     -----------    ------------
                                                    (Unaudited)     (Unaudited)     (Unaudited)

<S>                                                <C>             <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss) ...........................    $     2,072     $   128,237     $(3,897,113)
                                                   -----------     -----------     -----------
  Adjustments to Reconcile Net Income
    (Loss) to Net Cash Provided
    (Used) by Operating Activities
  Depreciation and Amortization ...............          1,222             737         172,362
  Interest Income Accrued on Stock Subscription
    Receivable ................................           --              (954)         (2,386)
  Bad Debts ...................................           --              --            50,000
  Gain on Sale of Securities ..................         (4,396)       (251,798)       (459,295)
  Charge off of Deferred Offering Costs .......           --              --            36,480
  Charge off of Long-lived Assets due to
    Impairmant ................................           --              --            92,919
  Modification of Royalty Agreement ...........           --              --             7,332
  Gain on Foreclosure .........................           --              --           (18,697)
  (Increase) Decrease in Accounts Receivable ..         39,768          70,846        (125,450)
  (Increase) Decrease in Prepaid Expense ......           --              --                53
  Loss on Sale of Equipment ...................           --              --            12,780
  Issuance of Common  Stock for Services ......           --            48,950         554,647
  Issuance of Stock for Agreement Modification            --              --               152
  Forgiveness of Indebtedness .................           --              --           165,000
  Increase (Decrease) in Accounts
    Payable and Accrued Expenses ..............        (18,321)        (98,540)        812,891
  Interest Accrued on Note Payable ............         12,661          14,532         162,507
  Increase in Research and Development
     Sponsorship Payable ......................           --              --           218,000
  (Increase) in Note for Litigation Settlement            --              --           (25,753)
  (Increase) in Deposits ......................           --              --            (2,189)
                                                   -----------     -----------     -----------
    TOTAL ADJUSTMENTS .........................         30,934        (216,227)      1,651,353
                                                   -----------     -----------     -----------
  NET CASH PROVIDED (USED) BY
   OPERATING ACTIVITIES .......................         33,006         (87,990)     (2,245,760)
                                                   -----------     -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds From Sale of Equipment .............           --              --            10,250
  Purchase of Property and Equipment ..........           --              --          (230,903)
  Proceeds from Sale of Securities ............          4,396         251,798         535,394
  Purchase of Securirties .....................           --              --           (90,000)
  Proceeds from Foreclosure ...................           --              --            44,450
  Investment in Joint Venture .................           --              --           (87,069)
  Payment for License Agreement ...............           --              --            (6,250)
                                                   -----------     -----------     -----------
  NET CASH PROVIDED (USED) BY
   INVESTING ACTIVITIES .......................          4,396         251,798         175,872
                                                   -----------     -----------     -----------

</TABLE>

                             See accompanying Notes

                                       6

<PAGE>

<TABLE>

MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS

<CAPTION>

                                                                                From Inception
                                                                                  (October 21,
                                                    For the Three Months Ended   1983) Through
                                                             March 31,               March 31,
                                                       1999            2000            2000
                                                   -----------     -----------    ------------
                                                    (Unaudited)     (Unaudited)     (Unaudited)

<S>                                                <C>             <C>             <C>
CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of Common Stock Net
    of Offering Costs .........................    $      --       $      --       $ 1,121,220
  Costs incurred in Offering ..................           --              --           (31,480)
  Sale of Common Stock Warrants ...............           --              --            18,250
  Sale of Preferred Stock .....................           --              --           258,500
  Sale of Redeemable Preferred Stock ..........           --              --           150,000
  Capital Contributions .......................           --              --           301,068
  Payment on Proposed Reorganization ..........           --              --            (5,000)
  Loans  From  Officers .......................         50,000            --           728,005
  Repayments to Officer .......................        (16,000)        (10,500)       (426,532)
  Increase in Loan Payable-Others .............           --              --           172,069
                                                   -----------     -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES: .........         34,000         (10,500)      2,286,100
                                                   -----------     -----------     -----------
NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS .................................         71,402         153,308         216,212
BEGINNING BALANCE CASH AND CASH EQUIVALENTS ...             20          62,904            --
                                                   -----------     -----------     -----------
ENDING BALANCE CASH AND CASH EQUIVALENTS ......    $    71,422     $   216,212     $   216,212
                                                   ===========     ===========     ===========

</TABLE>




                             See accompanying Notes

                                        7





<PAGE>


                           MATERIAL TECHNOLOGIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS



NOTE 1.      In  the  opinion  of the  Company's  management,  the  accompanying
             unaudited financial statements contain all adjustments  (consisting
             of normal  recurring  accruals)  necessary  to  present  fairly the
             financial  position of the Company as of March 31, 2000,  and 1999,
             and the  results of  operations  and cash flows for the three month
             periods  then  ended.  The  operating  results of the  Company on a
             quarterly basis may not be indicative of operating  results for the
             full year.

                                        8


<PAGE>



                           MATERIAL TECHNOLOGIES, INC.
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITIONS AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
------------------------------------------------------------------------

    During the three month period ended March 31,  2000,  the Company  generated
    approximately  $180,847  under its  research  and  development  contracts as
    compared to $198,860 generated during the three-month period ended March 31,
    1999.

    During the three month  periods  ended March 31, 2000 and 1999,  the Company
    incurred  approximately  $90,617, and $8,077,  respectively,  in development
    costs all of which related to the above indicated contracts.

    General and administration costs were $198,809, and $192,373,  respectively,
    for the  three-month  periods  ended  March  31,  2000 and  1999.  The major
    expenses  incurred  during 2000,  consisted of  consulting  fees of $64,521,
    professional fees of $46,333,  officer's  compensation of $30,000,  interest
    expense of $15,230,  travel expenses of $14,800,  rent expense of $6,033 and
    office expense of $8,285. The major expenses incurred during 1999, consisted
    of  Officer's   compensation   of  $50,000,   consulting  fees  of  $42,050,
    professional fees of $26,827, travel expense of $14,663, interest expense of
    $13,347, telephone expense of $4,015, and rent expense of $7,544.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Cash and cash  equivalents  as of March  31,  2000 and 1999  were  $216,212  and
$71,422, respectively.  During the first quarter of 2000, the Company received a
total of $503,491, which consisted of $251,693 from its research and development
contracts,  and a net proceeds from the sale of investment  securities  totaling
$251,798. Of the $503,491 received,  $339,683 was used in operations and $10,500
was repaid to the Company's President.

During the first  quarter of 1999,  the  Company  received a total of  $293,024,
which consisted of $238,628 from its research and development contracts, $50,000
in loans from its President,  and $4,396 from the sale of investment securities.
Of the $293,024 received, $205,622 was used in operations and $16,000 was repaid
to its President.

                                        9


<PAGE>


         PART II. OTHER INFORMATION

         ITEM 2. CHANGES IN SECURITIES

                  Through a reserve  established  by the Company to issue shares
                  of its Common  Stock to  individuals  who were  defrauded by a
                  former  consultant of the Company,  the Company  issued 48,223
                  shares in January  2000,  4,944 shares if February  2000,  and
                  1,694 shares in March 2000.

                  In  January  2000,  the Company  issued  50,000  shares of its
                  common stock to a member of its advisory committee.

                  In  February  2000,  the  Company   increased  its  number  of
                  authorized  shares of its Class A Common Stock to  100,000,000
                  shares and its Class B Common Stock to 100,000 shares.

                  On  February  2000, the Company issued 214,500  to consultants
                  for services rendered.

                  In   March   2000,   the  Company  issued  225,000  shares  to
                  consultants for services rendered.

                  In March 2000, the Company's President cancelled 40,000 shares
                  of  Class A common  stock in  exchange  for  receiving  40,000
                  shares of Class B Common Stock.

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

                           MATERIAL TECHNOLOGIES, INC.
                                   Registrant



                            /S/ ROBERT M. BERNSTEIN
                            -----------------------

                    Robert M. Bernstein, President and Chief
                                Financial Officer

                                       10