<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

         [X] Quarterly Report under Section 13 or 15(d) of the Securities
             Exchange Act of 1934

         For the quarterly period ended   May 31, 1998
                                        ----------------------------------------

                                       or

         [ ] 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:  1-13484
                                  ----------------------------------------------


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


            DELAWARE                                        34-1775913
--------------------------------------------------------------------------------
    (State or other jurisdiction of                         (I.R.S. Employer
     Incorporation or organization)                         Identification No.)

    5845 West 82nd Street, Suite 102, Indianapolis, Indiana    46278
------------------------------------------------------------------------
    (Address of principal executive offices)                (Zip Code)

         Issuer's telephone number, including area code    317-875-5592
                                                        ------------------------

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

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. 

                                                             YES X   NO
                                                                ---    ---

As of July 6, 1998, the Company has 2,688,343 shares of Common Stock, $.001 par
value, outstanding.

Transitional Small Business Disclosure Format (check one) 
                                                             YES     NO X
                                                                ---    ---

<PAGE>   2







                           COHESANT TECHNOLOGIES INC.

                                      INDEX

<TABLE>
<CAPTION>

         Part I.  Financial Information                                                  PAGE
         ------------------------------                                                  ----

                <S>                                                                      <C>   
                  Cohesant Technologies Inc. Condensed Consolidated
                           Balance Sheet as of May 31, 1998.............................. 1

                  Cohesant Technologies Inc. Condensed Consolidated
                           Statements of Operations for the Three Months Ended
                           May 31, 1998 and May 31, 1997................................. 2

                  Cohesant Technologies Inc. Condensed Consolidated
                           Statements of Operations for the Six Months Ended
                           May 31, 1998 and May 31, 1997................................. 3

                  Cohesant Technologies Inc. Condensed Consolidated
                           Statements of Cash Flows for the Six Months Ended
                           May 31, 1998 and May 31, 1997................................. 4

                  Notes to Condensed Financial Statements................................ 5

                  Management's Discussion and Analysis of Financial Condition
                           and Results of Operations..................................... 9



                  Part II.
                  Other Information...................................................... 13


                  Signatures............................................................. 14

</TABLE>


<PAGE>   3
<TABLE>
<CAPTION>







                          PART I. FINANCIAL INFORMATION
                          -----------------------------

                           COHESANT TECHNOLOGIES INC.

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
                                                                                                      May 31,1998
                                                                                                ---------------------
<S>                                                                                                       <C>       
ASSETS:
     Cash and cash equivalents                                                                            $   54,135
     Accounts receivable, net of allowance
          for doubtful accounts of $99,711                                                                 2,184,206
     Inventory                                                                                             2,983,195
     Prepaid expenses                                                                                        183,699
     Deferred tax asset                                                                                      165,600
     Current assets - discontinued operations                                                                216,234
                                                                                                ---------------------
               Total Current Assets                                                                        5,787,069

     Restricted, temporary investment                                                                        210,683
     Property, plant and equipment, net                                                                      619,233
     Investment and advances in unconsolidated affiliate                                                      88,679
     Patents and other intangibles, net                                                                      133,426
     Goodwill, net                                                                                           558,118
     Other noncurrent assets                                                                                   6,901
     Noncurrent assets - discontinued operations                                                             355,249
                                                                                                ---------------------
               Total Assets                                                                               $7,759,358
                                                                                                =====================


LIABILITIES AND SHAREHOLDERS' EQUITY:
     Revolving line of credit                                                                         $    1,002,280
     Current maturities of  other noncurrent liabilities                                                      65,654
     Accounts payable                                                                                        794,722
     Accrued wages and benefits                                                                               35,264
     Accrued liabilities related to discontinued operations                                                  339,227
     Other current liabilities                                                                               398,887
                                                                                                ---------------------
               Total Current Liabilities                                                                   2,636,034

     Commitments and contingencies (Note 7)

     Other noncurrent liabilities                                                                            226,018
                                                                                                ---------------------
               Total Liabilities                                                                           2,862,052

     Shareholders' Equity:
          Common stock ($.001 par value, 10,000,000
               shares authorized, 2,688,343 issued and
               outstanding)                                                                                    2,688
          Additional paid-in capital                                                                       6,450,360
          Retained deficit                                                                                (1,555,742)
                                                                                                ---------------------
                    Total Shareholders' Equity                                                             4,897,306
                                                                                                ---------------------

                    Total Liabilities and Shareholders' Equity                                           $ 7,759,358
                                                                                                =====================

</TABLE>



                  See Notes to Condensed Financial Statements.


                                        1
<PAGE>   4
<TABLE>
<CAPTION>


                                                   COHESANT TECHNOLOGIES INC.

                                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                           (UNAUDITED)

                                                                           For the Three Months Ended
                                                                     May 31, 1998                May 31, 1997
                                                                -------------------          -------------------

<S>                                                                    <C>                          <C>        
NET SALES                                                              $ 3,181,190                  $ 2,441,739
COST OF SALES                                                            1,819,387                    1,385,148
                                                                -------------------          -------------------
     Gross profit                                                        1,361,803                    1,056,591

RESEARCH, DEVELOPMENT AND
    ENGINEERING EXPENSES                                                   194,178                      260,424
SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES                                             1,004,593                      791,203
                                                                -------------------          -------------------

    Income from operations                                                 163,032                        4,964

OTHER INCOME (EXPENSE):
     Interest expense                                                      (26,914)                     (19,107)
     Interest income                                                         2,402                        2,354
     Equity in income of
          unconsolidated affiliate                                           8,092                       18,075
     Other income, net                                                      30,919                          612
                                                                -------------------          -------------------

INCOME FROM CONTINUING OPERATIONS
     BEFORE INCOME TAXES                                                   177,531                        6,898

PROVISION FOR INCOME TAXES (Note 5)                                          -                              -
                                                                -------------------          -------------------

INCOME FROM CONTINUING OPERATIONS                                          177,531                        6,898

DISCONTINUED OPERATIONS:
     Loss from discontinued operations                                       -                          (43,495)
                                                                -------------------          -------------------

NET INCOME (LOSS)                                                       $  177,531                  $   (36,597)
                                                                ===================          ===================

NET INCOME (LOSS) PER SHARE
     CONTINUING OPERATIONS                                              $     0.07                  $       -
     DISCONTINUED OPERATIONS                                                 -                            (0.02)
                                                                -------------------          -------------------

 BASIC AND DILUTED EARNINGS (LOSS) PER
 COMMON SHARE  (Note 3)                                                 $     0.07                  $     (0.02)
                                                                ===================          ===================

 AVERAGE SHARES OF COMMON STOCK
  OUTSTANDING                                                            2,688,343                    2,688,343
                                                                ===================          ===================
</TABLE>

                  See Notes to Condensed Financial Statements.

                                        2
<PAGE>   5
<TABLE>
<CAPTION>

                                                   COHESANT TECHNOLOGIES INC.

                                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                           (UNAUDITED)

                                                                                   For the Six Months Ended
                                                                       May 31, 1998                       May 31, 1997
                                                                  ---------------------             ---------------------
                                                                                                    
<S>                                                                        <C>                               <C>        
NET SALES                                                                  $ 5,784,807                       $ 4,580,637
COST OF SALES                                                                3,274,728                         2,651,686
                                                                  ---------------------             ---------------------
     Gross profit                                                            2,510,079                         1,928,951
                                                                                                    
RESEARCH, DEVELOPMENT AND                                                                           
    ENGINEERING EXPENSES                                                       410,183                           492,936
SELLING, GENERAL AND                                                                                
     ADMINISTRATIVE EXPENSES                                                 1,772,432                         1,437,000
                                                                  ---------------------             ---------------------
                                                                                                    
    Income (loss) from operations                                              327,464                              (985)
                                                                                                    
OTHER INCOME (EXPENSE):                                                                             
     Interest expense                                                          (57,384)                          (29,630)
     Interest income                                                             4,892                             6,660
     Equity in income of                                                                            
          unconsolidated affiliate                                              20,369                            34,543
     Other income, net                                                          51,896                             3,592
                                                                  ---------------------             ---------------------
                                                                                                    
INCOME FROM CONTINUING OPERATIONS                                                                   
     BEFORE INCOME TAXES                                                       347,237                            14,180
                                                                                                    
PROVISION FOR INCOME TAXES (Note 5)                                              -                                 -
                                                                  ---------------------             ---------------------
                                                                                                    
INCOME FROM CONTINUING OPERATIONS                                              347,237                            14,180
                                                                                                    
DISCONTINUED OPERATIONS:                                                                            
     Loss from discontinued operations                                           -                              (143,185)
                                                                  ---------------------             ---------------------
                                                                                                    
NET INCOME (LOSS)                                                           $  347,237                       $  (129,005)
                                                                  =====================             =====================
                                                                                                    
NET INCOME (LOSS) PER SHARE                                                                         
     CONTINUING OPERATIONS                                                  $     0.13                       $     -
     DISCONTINUED OPERATIONS                                                     -                                 (0.05)
                                                                  ---------------------             ---------------------
                                                                                                    
 BASIC AND DILUTED EARNINGS (LOSS) PER                                                              
 COMMON SHARE  (Note 3)                                                     $     0.13                       $     (0.05)
                                                                  =====================             =====================
                                                                                                    
 AVERAGE SHARES OF COMMON STOCK                                                                     
  OUTSTANDING                                                                2,688,343                         2,688,343
                                                                  =====================             =====================
</TABLE>

                  See Notes to Condensed Financial Statements.

                                        3
<PAGE>   6
<TABLE>
<CAPTION>

                           COHESANT TECHNOLOGIES INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


                                                                                                For the Six Months Ended      
                                                                                      May 31, 1998            May 31, 1997    
                                                                                ---------------------      -----------------  
                                                                                                                              
CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                         
<S>                                                                                    <C>                     <C>            
  Net income (loss)                                                                    $  347,237                $ (129,005)   
  Adjustments to reconcile net income (loss) to net                                                                           
     cash used in continuing operations -                                                                                     
     Loss from discontinued operations                                                       -                      143,185   
     Depreciation and amortization                                                        126,723                   110,300   
     Provision for doubtful accounts                                                       27,000                    22,871   
     Equity in income of unconsolidated subsidiary                                        (20,369)                  (34,543)   
     Net change in current assets and                                                                                         
      current liabilities-                                                                                                    
       Accounts and notes receivable                                                     (678,079)                 (515,202)   
       Inventories                                                                        186,702                  (312,296)   
       Prepaid expenses                                                                   (79,015)                  (36,393)   
       Accounts payable                                                                  (772,710)                  420,820   
       Other current liabilities                                                         (305,338)                    9,860   
       Other noncurrent assets                                                              1,840                   (12,477)   
       Other noncurrent liabilities                                                       163,345                     4,362   
                                                                                ------------------         -----------------  
       Net cash used in continuing operations                                          (1,002,664)                 (328,518)   
       Net cash used in discontinued operations                                              -                     (377,480)   
       Change in current assets of discontinued                                                                               
            operations                                                                  1,542,960                    -         
                                                                                ------------------         -----------------  
       Net cash provided by (used in) operating activities                                540,296                  (705,998)   
                                                                                                                              
                                                                                                                              
CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                         
   Property and equipment additions                                                       (83,216)                  (74,746)   
   Property and equipment additions of discontinued                                                                           
     operations                                                                              -                     (278,332)   
   Change in noncurrent assets of discontinued                                                                                
        operations                                                                         50,000                    -        
   Payments from unconsolidated affiliate                                                  37,192                    20,458   
                                                                                ------------------         -----------------  
       Net cash provided by (used in) investing activities                                  3,976                  (332,620)   
                                                                                ------------------         -----------------  
                                                                                                                              
CASH FLOWS PROVIDED BY FINANCING                                                                                              
  ACTIVITIES:                                                                                                                 
   Borrowings  (payments) under revolving                                                                                     
         line of credit                                                                  (550,000)                  927,280   
                                                                                ------------------         -----------------  
       Net cash provided by (used in) financing activities                               (550,000)                  927,280 
                                                                                ------------------         -----------------  
NET DECREASE IN CASH                                                                                                          
  AND CASH EQUIVALENTS                                                                     (5,728)                 (111,338)   
CASH AND CASH EQUIVALENTS AT                                                                                                  
  BEGINNING OF PERIOD                                                                      59,863                   446,299   
                                                                                ------------------         -----------------  
CASH AND CASH EQUIVALENTS AT                                                                                                  
  END OF PERIOD                                                                         $  54,135                $  334,961   
                                                                                ==================         =================  
</TABLE>

                                                                                
                  See Notes to Condensed Financial Statements.

                                        4
<PAGE>   7




                           COHESANT TECHNOLOGIES INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BACKGROUND

Cohesant Technologies Inc. ("Company") designs, develops and manufactures plural
component dispensing systems, specialized spray finishing and coating
application equipment and specialty two component epoxy coating and grout
products through two wholly owned subsidiaries--Glas-Craft, Inc. ("GCI") and
Raven Lining Systems, Inc. ("Raven").


NOTE 2 - BASIS OF PRESENTATION

The interim condensed consolidated financial statements included herein have
been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission for certain small business
issuers. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. However, in the opinion of management of the Company, the interim
condensed consolidated financial statements include all adjustments, which
consist only of normal recurring accruals, necessary to present fairly the
financial information for such periods.

These interim condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and the notes thereto
included in the Company's November 30, 1997 Annual Report to Shareholders on
Form 10-KSB.

The accompanying condensed consolidated financial statements include the
accounts of the Company and its direct wholly owned subsidiaries. The Company's
noncontrolling investment in an affiliate is accounted for under the equity
method. All significant intercompany amounts have been eliminated.

NOTE 3 - EARNINGS PER SHARE

In February 1997, Statement of Financial Accounting Standards No. 128, "Earnings
Per Share", was issued. The new standard simplifies the computation of earnings
per share, and requires the presentation of two new amounts, basic and diluted
earnings per share. The Company adopted this standard as of December 1, 1997,
and has restated its computation of earnings per share for each period
presented. Financial instruments considered in the computation of diluted
earnings per share included only the Company's outstanding stock options as the
outstanding warrants are antidilutive.


                                        5
<PAGE>   8

                           COHESANT TECHNOLOGIES INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)



NOTE 4 - REVOLVING LINE OF CREDIT FACILITY

On May 15, 1998, the Company entered into a revolving line of credit agreement
with a bank. This $3,500,000 credit facility is subject to a borrowing base and
accrues interest at the bank's prime lending rate (8.5% as of May 31, 1998). The
credit facility is fully secured by a lien on all the assets of the Company and
its operating subsidiaries. The credit facility expires on May 1, 1999.

This agreement requires that the Company meets certain covenants including
financial ratios. As of May 31, 1998, the Company is in compliance with these
financial covenants. As of May 31, 1998, the outstanding balance under this
agreement was $1,002,280.

The Company's previous credit facility expired on May 1, 1998, and had an
outstanding balance at May 31, 1997, of $770,000.

NOTE 5- INCOME TAXES

The Company has not recorded a provision for income taxes for the quarter in
light of the Company's net operating loss carryforwards for which a full
valuation allowance had been established in prior years due to uncertainty as to
the future use of these amounts. At year end the Company will assess the
realization of the deferred tax asset attributable to its loss carryforwards and
adjust its evaluation allowance accordingly. Prior thereto, the tax benefit of
these carryforward amounts will be recognized only to the extent income is
generated. During the first six months of 1998, the Company reduced the
valuation allowance to reflect the expected use of approximately $128,500 of net
operating loss carryforwards to reduce current income taxes.

NOTE 6- DISCONTINUED OPERATIONS

On November 30, 1997, the Company's Board of Directors signed an agreement to
sell certain assets of American Chemical Company's ("ACC") adhesive, private
label and toll manufacturing business and decided to account for such business
as a discontinued operation for all periods presented in accordance with
Accounting Principles Board No. 30, "Reporting the Results of Operations -
Reporting the Effects of a Disposal of a




                                        6
<PAGE>   9

                           COHESANT TECHNOLOGIES INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions."

Accounts receivable, inventory and other current assets of the adhesives,
private label, and toll manufacturing business have been segregated in the
accompanying Consolidated Balance Sheet as Current Assets - Discontinued
Operations. Net property, plant and equipment and other noncurrent assets of the
adhesives, private label, and toll manufacturing segment have been segregated in
the accompanying Consolidated Balance Sheet as Noncurrent Assets - Discontinued
Operations. During the first six months of 1998, the Company's adhesives,
private label and toll manufacturing business has incurred operating losses
totaling $184,550 that have been reflected as a reduction to the Accrued
Liabilities Related to Discontinued Operations in the accompanying Condensed
Consolidated Balance Sheet. Operating results for this business are consistent
with the Company's prior estimate of these amounts.

On January 14, 1998 the Company, ACC and a third party completed the sale of
certain assets (inventory and certain intangibles) of the discontinued business
and executed a three-year non-compete agreement. The consideration received of
approximately $1,350,000, which is subject to post closing adjustments, includes
a $300,000 promissory note bearing 8% interest and due in three years and
$350,000, for a three-year non-compete agreement with the buyer. The cash
consideration received in connection with the sale of inventory is reflected in
the accompanying Condensed Consolidated Statement of Cash Flows as a Change in
Current Assets of Discontinued Operations. The $350,000 non-compete agreement is
presented on the accompanying Condensed Consolidated Balance Sheet as an Other
Current and Non-current Liability. The non-compete agreement is being amortized
to income over the three-year contract period. The Company anticipates selling
or otherwise disposing of the remaining assets of this business by November 30,
1998.


NOTE 7- COMMITMENTS AND CONTINGENCIES

King Adhesives Corporation, a predecessor company to ACC, has been named by the
United States Environmental Protection Agency ("EPA") as a potentially
responsible party ("PRP") for clean-up costs associated with hazardous
substances transshipped from the Enviro-Chem Site to the Great Lakes Asphalt
Site. In January, 1995, the Company received notice from a PRP group negotiating
with the EPA that liabilities regarding the



                                       7
<PAGE>   10

                           COHESANT TECHNOLOGIES INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Great Lakes Asphalt Site had been settled with the EPA and that no further
assessments are expected. In addition, the Company had previously received from
such group notice of its potential liability with regard to hazardous substances
shipped to the Third Site/Enviro-Chem Site. Management cannot currently predict
the ultimate outcome of these matters; however, management believes the outcome
will not materially affect the Company's financial position and its results of
operations. In the past King Adhesives Corporation had settled its alleged
liability with regard to hazardous substances shipped to the Wastex Research,
Inc. facility and the original Enviro-Chem Site. Management believes that it is
unlikely that any further liability will result with regard to these two sites;
however, no assurance can be given that the EPA or any other party will not
pursue any additional or ancillary claims in the future.

In another environmental matter, with the sale of ACC's product lines and
inventories, the Company is proceeding to investigate and remediate the
environmental condition of its St. Louis property in order that the property can
be marketed and sold. The work includes soil remediation required by the
Missouri Department of Natural Resources in connection with the closure of
underground storage tanks. The Company does not expect the cost of the
investigation and any remediation of the St. Louis property to have a material
adverse effect on the Company's financial position or results of operations. An
estimate of costs expected to be incurred for environmental matters has been
accrued.






                                        8
<PAGE>   11


                           COHESANT TECHNOLOGIES INC.

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS SECOND QUARTER ENDED MAY 31, 1998

RESULTS OF OPERATIONS

For the three months ended May 31, 1998, net sales increased $739,451, or 30.3%.
Of this amount, $389,322 represented increased specialty grout and epoxy
products. This increase was primarily attributable to increasing acceptance and
specification of AquataPoxy and Raven products, including sales for
infrastructure projects in Houston and Austin, Texas and Birmingham, Alabama.
Equipment and parts sales increased by $350,129 to $2,578,263, compared to the
1997 quarter. Foreign and domestic sales increased 18.4% and 13.2%,
respectively, over the 1997 period. Sales to South America and Europe were
primarily attributable for the increase in foreign sales, offset by a decrease
in sales to the Asian market.

The Company's gross margin increased to $1,361,803, or 42.8% of net sales, in
the current quarter from $1,056,591, or 43.3% of net sales, in the 1997 period.
The increase of $305,212 was primarily attributable to increased sales volume.
The slight decline in gross profit percentage was attributable to changes in
product mix.

Operating expenses were up $147,144, or 14%, in the second quarter of 1998 over
the 1997 period. This increase was principally due to additional marketing
expenses at both GCI and Raven. The increased marketing expenses were
attributable to the increased sales volume, additional staffing and increased
advertising.

During the second quarter of 1998, other income, net of other expenses,
increased from the prior period by approximately $12,500, due principally to
income derived from amortization of the not to compete agreement arising from
the sale of ACC' s adhesive, private label and toll manufacturing business ("the
discontinued operation"), offset by increased interest expense and a decrease in
income derived from the unconsolidated affiliate.

                          SIX MONTHS ENDED MAY 31, 1998
                  COMPARED TO THE SIX MONTHS ENDED MAY 31, 1997

RESULTS OF OPERATIONS

For the six months ended May 31, 1998, net sales increased $1,204,170, or 26.3%.
Of this amount, $874,656 represented increased specialty grout and epoxy
products. This increase was primarily attributable to increasing acceptance and
specification of



                                        9
<PAGE>   12

                           COHESANT TECHNOLOGIES INC.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS


AquataPoxy and Raven products, including sales for infrastructure projects in
Chicago, Illinois, Houston and Austin, Texas and Birmingham, Alabama. Equipment
and parts sales increased $329,514 compared to the 1997 period. The increase was
attributable to an 18% increase in domestic sales offset by a slight 1% decrease
in foreign sales. The decrease in foreign sales was primarily due to a 29.5%
drop in sales to the Asian/Pacific region offset almost entirely by increased
sales in Europe and South America.

The Company's 1998 year to date gross margin increased to $2,510,079, or 43.4%
of net sales, from $1,928,951, or 42.1% of net sales, in the 1997 period. The
increases of $581,128 and 1.3% were primarily attributable to increased sales
volume of specialty grout and epoxy products which generally have a higher
margin than the equipment group.

Operating expenses were up $252,679, or 13%, over the 1997 comparable period.
This increase was principally due to additional marketing expenses at both GCI
and Raven. The increased marketing expenses were attributable to the increased
sales volume, additional staffing and increased advertising, offset by an
adjustment of $45,000 as a result of a final negotiated payment for previously
accrued professional services.

During the first six months of 1998, other income, net of other expenses,
increased from the same period in the prior year by approximately $4,600, due
principally to income derived from amortization of the not to compete agreement
arising from the sale of the discontinued operation, offset by increased
interest expense and a decrease in income derived from the unconsolidated
affiliate.

DISCONTINUED OPERATIONS

On November 30, 1997, the Company's Board of Directors signed an agreement to
sell certain assets and management decided to discontinue this business. The
operating activity performed during the first six months of 1998 includes sales
through the closing and tolling activities for the buyer thereafter. Such
tolling activity expired in the second quarter. The discontinued operation
recorded sales totaling $722,879 and $2,741,886 during the first six months of
1998 and 1997, respectively. Total operating losses from the discontinued
operations were $184,550 and $143,185 during the first six months of 1998 and
1997, respectively. The 1998 losses have been reflected as a reduction to the
Accrued Liabilities Related to Discontinued Operations in the accompanying
Condensed Consolidated Balance Sheet.



                                       10
<PAGE>   13

                           COHESANT TECHNOLOGIES INC.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS



On January 14, 1998, the Company completed the sale of certain of the assets of
the discontinued business and signed a three-year agreement not to compete in
this business. The purchase price estimated at $1,350,000 is subject to a final
closing settlement. The purchase price was paid in cash except for a $300,000
promissory note bearing 8% interest and due in three years. The $350,000
non-compete agreement is being amortized to income over the three-year contract
period. The Company anticipates selling or otherwise disposing of the remaining
assets of this business by November 30, 1998.

LIQUIDITY AND CAPITAL RESOURCES

On May 15, 1998, the Company entered into a revolving line of credit agreement
with a bank. This $3,500,000 credit facility is subject to a borrowing base and
accrues interest at the bank's prime lending rate (8.5% as of May 31, 1998). The
credit facility is fully secured by a lien on all the assets of the Company and
its operating subsidiaries. The credit facility expires on May 1, 1999.

This agreement requires that the Company meets certain covenants including
financial ratios. As of May 31, 1998, the Company is in compliance with these
financial covenants. As of May 31, 1998, the outstanding balance under this
agreement was $1,002,280.

The Company's previous credit facility expired on May 1, 1998, and had an
outstanding balance at May 31, 1997, of $770,000.

For the six months ended May 31, 1998, the Company's working capital increased
$650,884, from $2,500,151 at November 30, 1997 to $3,151,035 at May 31, 1998.
This increase was due primarily to a $651,079 increase in accounts receivable,
$550,000 of repayments under the Company's line of credit, a $772,710 decrease
in accounts payable, $333,997 decrease in accrued wages and benefits and accrued
liabilities related to the discontinued operation, offset by a $198,717 decrease
in inventory and a decrease in current assets held from the discontinued
operation of $1,502,813.








                                       11
<PAGE>   14

                           COHESANT TECHNOLOGIES INC.

FORWARD LOOKING STATEMENTS

Certain statements contained in this report that are not historical facts are
forward looking statements that are subject to certain risks and uncertainties
that could cause actual results to differ materially from those set forth in the
forward looking statement. These risks and uncertainties include, but are not
limited to, a slow-down in domestic and foreign markets for plural component
dispensing systems and a reduction in growth of markets for the Company's epoxy
coating systems.














                                       12
<PAGE>   15

                           COHESANT TECHNOLOGIES INC.

PART II. OTHER INFORMATION
--------------------------

ITEM 1.   Legal Proceedings

There are no pending legal proceedings to which the Company is subject, nor to
the knowledge of the Company are any legal proceedings threatened, other than
for ordinary, routine proceedings incidental to its business, except as follows:

King Adhesives Corporation, a predecessor company to ACC, has been named by the
United States Environmental Protection Agency ("EPA") as a potentially
responsible party ("PRP") for clean-up costs associated with hazardous
substances transshipped from the Enviro-Chem Site to the Great Lakes Asphalt
Site. In January, 1995, the Company received notice from a PRP group negotiating
with the EPA that liabilities regarding the Great Lakes Asphalt Site had been
settled with the EPA and that no further assessments are expected. In addition,
the Company had previously received from such group notice of its potential
liability with regard to hazardous substances shipped to the Third
Site/Enviro-Chem Site. Management cannot currently predict the ultimate outcome
of these matters; however, management believes the outcome will not materially
affect the Company's financial position and its results of operations. In the
past King Adhesives Corporation had settled its alleged liability with regard to
hazardous substances shipped to the Wastex Research, Inc. facility and the
original Enviro-Chem Site. Management believes that it is unlikely that any
further liability will result with regard to these two sites; however, no
assurance can be given that the EPA or any other party will not pursue any
additional or ancillary claims in the future.

In another environmental matter, with the sale of ACC's product lines and
inventories, the Company is proceeding to investigate and remediate the
environmental condition of its St. Louis property in order that the property can
be marketed and sold. The work includes soil remediation required by the
Missouri Department of Natural Resources in connection with the closure of
underground storage tanks. The Company does not expect the cost of the
investigation and any remediation of the St. Louis property to have a material
adverse effect on the Company's financial position or results of operations. An
estimate of costs expected to be incurred for environmental matters, has been
accrued.

ITEM 6.   Exhibits and reports on Form 8-K

  (a)     Exhibits

  4.1     Credit and Security Agreement, Date May 15, 1998 by and between
          Cohesant Technologies, Inc. and NBD Bank, N.A.
  27      Financial Data Schedule

  (b)     Reports on Form 8-K - none

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                                    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.

Dated:            July 6, 1998


                                              COHESANT TECHNOLOGIES INC.



                                              BY:  /s/ Robert W. Pawlak
                                                   ---------------------------
                                                   Robert W. Pawlak
                                                   Chief Financial Officer











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