<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      August 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 October 5, 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 August 31, 1998.......................................  1

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

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

                  Cohesant Technologies Inc. Condensed Consolidated
                           Statements of Cash Flows for the Nine Months Ended
                           August 31, 1998 and August 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
                  --------  -----------------

                    Item 1.  Legal Proceedings....................................................... 13

                    Item 4.  Submission of Matters to a Vote of Security Holders..................... 13

                    Item 5.  Other Information....................................................... 14

                    Item 6.  Exhibits and Reports on Form 8-K........................................ 14



                    Signatures....................................................................... 15
</TABLE>


<PAGE>   3





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

                           COHESANT TECHNOLOGIES INC.

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                     August 31,1998
                                                                     --------------
<S>                                                                   <C>        
ASSETS:
     Cash and cash equivalents                                        $   170,804
     Accounts receivable, net of allowance
          for doubtful accounts of $93,344                              2,121,218
     Inventory                                                          3,171,237
     Prepaid expenses                                                     182,066
     Deferred tax asset                                                   165,600
     Current assets - discontinued operations                              10,057
                                                                      -----------
               Total Current Assets                                     5,820,982

     Restricted, temporary investment                                     213,178
     Property, plant and equipment, net                                   629,235
     Investment and advances in unconsolidated affiliate                   97,975
     Patents and other intangibles, net                                   131,306
     Goodwill, net                                                        548,899
     Other noncurrent assets                                                6,220
     Noncurrent assets - discontinued operations                          339,673
                                                                      -----------
               Total Assets                                           $ 7,787,468
                                                                      ===========

LIABILITIES AND SHAREHOLDERS' EQUITY:
     Revolving line of credit                                         $   802,280
     Current maturities of  other noncurrent liabilities                   56,308
     Accounts payable                                                     913,221
     Accrued wages and benefits                                           110,699
     Accrued liabilities related to discontinued operations               154,324
     Other current liabilities                                            409,261
                                                                      -----------
               Total Current Liabilities                                2,446,093

     Other noncurrent liabilities                                         193,428
                                                                      -----------
               Total Liabilities                                        2,639,521

     Commitments and contingencies (Note 7)

     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                                             (1,305,101)
                                                                      -----------
                    Total Shareholders' Equity                          5,147,947
                                                                      -----------

                    Total Liabilities and Shareholders' Equity        $ 7,787,468
                                                                      ===========
</TABLE>



                  See Notes to Condensed Financial Statements.


                                        1

<PAGE>   4


                           COHESANT TECHNOLOGIES INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                 For the Three Months Ended
                                             August 31,1998     August 31,1997
                                             --------------     --------------

<S>                                           <C>                 <C>        
NET SALES                                     $ 3,053,923         $ 2,839,903
COST OF SALES                                   1,683,152           1,543,424
                                              -----------         -----------
     Gross profit                               1,370,771           1,296,479

RESEARCH, DEVELOPMENT AND
    ENGINEERING EXPENSES                          219,823             218,032
SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES                      927,637             842,971
                                              -----------         -----------

    Income from operations                        223,311             235,476

OTHER INCOME (EXPENSE):
     Interest expense                             (19,989)            (23,993)
     Interest income                                2,495               2,549
     Equity in income of
          unconsolidated affiliate                 11,315                 129
     Other income, net                             33,509               1,819
                                              -----------         -----------

INCOME FROM CONTINUING OPERATIONS
     BEFORE INCOME TAXES                          250,641             215,980

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

INCOME FROM CONTINUING OPERATIONS                 250,641             215,980

DISCONTINUED OPERATIONS:
     Loss from discontinued operations                  -          (1,511,156)
                                              -----------         -----------

NET INCOME (LOSS)                             $   250,641         $(1,295,176)
                                              ===========         ===========

NET INCOME (LOSS) PER SHARE
     CONTINUING OPERATIONS
                                              $      0.09         $      0.08
     DISCONTINUED OPERATIONS                            -               (0.56)
                                              -----------         -----------

 BASIC AND DILUTED EARNINGS (LOSS) PER
 COMMON SHARE  (Note 3)                       $      0.09         $     (0.48)
                                              ===========         ===========

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

                  See Notes to Condensed Financial Statements.

                                        2


<PAGE>   5


                           COHESANT TECHNOLOGIES INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                 For the Nine Months Ended
                                             August 31,1998     August 31,1997
                                             --------------     --------------

<S>                                           <C>                 <C>        
NET SALES                                     $ 8,838,730         $ 7,420,540
COST OF SALES                                   4,957,880           4,195,110
                                              -----------         -----------
     Gross profit                               3,880,850           3,225,430

RESEARCH, DEVELOPMENT AND
    ENGINEERING EXPENSES                          630,006             710,968
SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES                    2,700,069           2,279,971
                                              -----------         -----------

    Income  from operations                       550,775             234,491

OTHER INCOME (EXPENSE):
     Interest expense                             (77,373)            (53,623)
     Interest income                                7,387               9,209
     Equity in income of
          unconsolidated affiliate                 31,684              34,672
     Other income, net                             85,405               5,411
                                              -----------         -----------

INCOME FROM CONTINUING OPERATIONS
     BEFORE INCOME TAXES                          597,878             230,160

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

INCOME FROM CONTINUING OPERATIONS                 597,878             230,160

DISCONTINUED OPERATIONS:
     Loss from discontinued operations                  -          (1,654,341)
                                              -----------         -----------

NET INCOME (LOSS)                             $   597,878         $(1,424,181)
                                              ===========         ===========

NET INCOME (LOSS) PER SHARE
     CONTINUING OPERATIONS                    $      0.22         $      0.09
     DISCONTINUED OPERATIONS                            -               (0.62)
                                              -----------         -----------

 BASIC AND DILUTED EARNINGS (LOSS) PER
 COMMON SHARE  (Note 3)                       $      0.22         $     (0.53)
                                              ===========         ===========

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

                  See Notes to Condensed Financial Statements.

                                        3

<PAGE>   6


                           COHESANT TECHNOLOGIES INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                     For the Nine Months Ended
                                                                August 31, 1998      August 31, 1997
                                                                ---------------      ---------------

<S>                                                        <C>                 <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                               $   597,878         $(1,424,181)
  Adjustments to reconcile net income (loss) to net
     cash used in continuing operations -
     Loss from discontinued operations                                      -           1,654,341
     Depreciation and amortization                                    188,284             160,736
     Provision for doubtful accounts                                   39,300              25,871
     Equity in income of unconsolidated subsidiary                    (31,684)            (34,672)
     Net change in current assets and
      current liabilities-
       Accounts and notes receivable                                 (627,391)           (503,977)
       Inventories                                                     (8,663)           (593,013)
       Prepaid expenses                                               (77,382)            (15,369)
       Accounts payable                                              (654,211)            158,243
       Other current liabilities                                     (413,778)          1,331,676
       Other noncurrent assets                                             23             (27,134)
       Other noncurrent liabilities                                   130,755              (9,014)
                                                                  -----------         -----------
       Net cash used in continuing operations                        (856,869)            723,507
       Net cash used in discontinued operations                             -          (1,440,757)
       Change in current assets of discontinued operations          1,764,713                   -
                                                                  -----------         -----------
       Net cash provided by (used in) operating activities            907,844            (717,250)

CASH FLOWS FROM INVESTING ACTIVITIES:
   Property and equipment additions                                  (136,114)            (98,007)
   Property and equipment additions of discontinued
     operations                                                             -            (296,079)
   Change in noncurrent assets of discontinued
        operations                                                     50,000                   -
   Payments from unconsolidated affiliate                              39,211              35,244
                                                                  -----------         -----------
       Net cash provided by (used in) investing activities             46,903            (358,842)
                                                                  -----------         -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings  (payments) under revolving
         line of credit                                              (750,000)            802,280
                                                                  -----------         -----------
       Net cash provided by (used in) financing activities           (750,000)            802,280
                                                                  -----------         -----------
NET INCREASE (DECREASE) IN CASH
  AND CASH EQUIVALENTS                                                110,941            (273,812)
CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                                  59,863             446,299
                                                                  -----------         -----------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                                   $   170,804         $   172,487
                                                                  ===========         ===========
</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 August 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 August 31, 1998, the Company is in
         compliance with these financial covenants. As of August 31, 1998, the
         outstanding balance under this agreement was $802,280.


         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 valuation
         allowance accordingly. Prior thereto, the tax benefit of these
         carryforward amounts will be recognized only to the extent income is
         generated. During the first nine months of 1998, the Company reduced
         the valuation allowance to reflect the expected use of approximately
         $221,000 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 Segment of a Business, and Extraordinary, Unusual and
         Infrequently Occurring Events and Transactions."




                                        6

<PAGE>   9


                           COHESANT TECHNOLOGIES INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


         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. The operating activity performed during the first nine
         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 $4,215,762 during the first nine months of 1998 and 1997,
         respectively. Total operating losses from the discontinued operation
         were $321,303 and $1,654,341 during the first nine 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. 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 includes a
         $300,000 promissory note 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. Subsequent to the Balance
         Sheet date the Company settled the promissory note for $250,000 cash,
         which was the carrying value of the note.


         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



                                        7


<PAGE>   10


                           COHESANT TECHNOLOGIES INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)



         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 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 Missouri Department
         of Natural Resources has also requested a groundwater contamination
         investigation plan be submitted for the site to fully define the extent
         of groundwater contamination. Based on current information, 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, based on
         current information, has been accrued.







                                        8


<PAGE>   11


                           COHESANT TECHNOLOGIES INC.

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

         RESULTS OF OPERATIONS
         ---------------------

         For the three months ended August 31, 1998, net sales increased
         $214,020, or 7.5%. Of this amount, $253,999 represented increased
         equipment and parts sales offset by a $39,979 decrease of specialty
         grout and epoxy products. The increase of equipment and parts sales
         were attributable to a 20.6% increase in domestic sales, and a slight
         increase in foreign sales over the 1997 period. Increased sales to
         Europe offset slight decreases in sales to South America and the Asian
         market.

         The Company's gross margin increased to $1,370,771, or 44.9% of net
         sales, in the current quarter from $1,296,479, or 45.7% of net sales,
         in the 1997 period. The slight decline in gross profit percentage was
         attributable to changes in product mix.

         Operating expenses were up $86,457, or 8%, in the third 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 third quarter of 1998, other income, net of other expenses,
         increased from the prior period by approximately $46,800, due
         principally to income derived from amortization of the noncompetition
         agreement arising from the sale of ACC' s adhesive, private label and
         toll manufacturing business ("the discontinued operation"), an increase
         in income derived from the unconsolidated affiliate and decreased
         interest expense.

                        NINE MONTHS ENDED AUGUST 31, 1998
                COMPARED TO THE NINE MONTHS ENDED AUGUST 31, 1997

         RESULTS OF OPERATIONS
         ---------------------

         For the nine months ended August 31, 1998, net sales increased
         $1,418,190, or 19.1%. Of this amount, $834,677 represented increased
         specialty grout and epoxy products. This increase was primarily
         attributable to increasing acceptance and specification of AquataPoxy
         and Raven products. Equipment and parts sales increased $583,513
         compared to the 1997 period. The increase was attributable to a 19%
         increase in domestic sales offset by a slight 1% decrease in foreign
         sales. The decrease in foreign sales was primarily due to a 21% drop in
         sales to the Asian/Pacific region offset entirely by increased sales in
         Europe and South America.



                                        9


<PAGE>   12


                           COHESANT TECHNOLOGIES INC.

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


         The Company's 1998 year to date gross margin increased to $3,880,850,
         or 43.9% of net sales, from $3,225,430, or 43.5% of net sales, in the
         1997 period, reflective of the increased sales volume.

         Operating expenses were up $339,136, or 11%, 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 nine months of 1998, other income, net of other
         expenses, increased from the same period in the prior year by
         approximately $51,400, due principally to income derived from
         amortization of the noncompetition 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 of ACC's adhesive, private label and
         toll manufacturing business (the "discontinued operation") and
         management decided to discontinue this business. The operating activity
         performed during the first nine 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 $4,215,762 during the
         first nine months of 1998 and 1997, respectively. Total operating
         losses from the discontinued operation were $321,303 and $1,654,341
         during the first nine 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.

         On January 14, 1998, the Company completed the sale of certain of the
         assets of the discontinued operation and signed a three-year agreement
         not to compete in this business. The purchase price was approximately
         $1,350,000, including $350,000 for the non- compete agreement. 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





                                       10

<PAGE>   13



                           COHESANT TECHNOLOGIES INC.

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

         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. Subsequent to
         the Balance Sheet date the Company settled the promissory note for
         $250,000 cash, which was the carrying value of the note.


         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 August 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 August 31, 1998, the Company is in
         compliance with these financial covenants. As of August 31, 1998, the
         outstanding balance under this agreement was $802,280.

         For the nine months ended August 31, 1998, the Company's working
         capital increased $874,738, from $2,500,151 at November 30, 1997 to
         $3,374,889 at August 31, 1998. This increase was due primarily to a
         $188,323 increase in cash and prepaid expenses. $588,091 increase in
         accounts receivable, $750,000 of repayments under the Company's line of
         credit, a $654,211 decrease in accounts payable, $406,447 decrease in
         accrued wages and benefits and accrued liabilities related to the
         discontinued operation, offset by a $1,708,990 decrease in current
         assets held from the discontinued operation.


         YEAR 2000
         ---------

         The "Year 2000 Issue" refers to the inability of computers and
         applications to correctly interpret and process Year 2000 dated
         transactions. The software problem results from a memory-saving
         practice of using two digits instead of four to denote years in a
         program. Computer systems that are not Year 2000 compliant may not be
         able to be relied upon to process data accurately for transactions
         dated after the year 1999.





                                       11


<PAGE>   14


                           COHESANT TECHNOLOGIES INC.

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



         The Company has developed a plan to address possible exposures related
         to the impact of the Year 2000 Issue. Possible exposures include the
         Company's ability to procure and manage inventory, ship product and
         bill and collect from customers. The Company has tested and confirmed
         the readiness of its mainframe computer system and has identified other
         software and systems with potential Year 2000 problems. The Company
         estimates that costs associated with making internal information
         systems Year 2000 compliant will not be material, and thus will not
         have a material impact on the Company's financial position.

         In addition, the Company has identified and is assessing the readiness
         of third parties, primary suppliers and customers. There is no
         guarantee that the systems of these third parties will be timely
         converted, however, the Company plans to devote the necessary resources
         to resolve any potentially significant Year 2000 issues facing it,
         whether from within its operations or as a result of its interaction
         with these third parties, in a timely manner.

         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.








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<PAGE>   15



                           COHESANT TECHNOLOGIES INC.

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

         ITEM 1.  LEGAL PROCEEDINGS

                  With the sale of the product lines and inventories of the
         Company's American Chemical Corp. subsidiary ("ACC"), the Company is
         proceeding to investigate and remediate the environmental condition of
         the ACC property in St. Louis in order that the property can be
         marketed and sold. The work includes soil remediation required by the
         Missouri Department of Natural Resources ("DNR") in connection with the
         closure of underground storage tanks. The DNR has also requested a
         groundwater contamination investigation plan to be submitted for the
         site to fully define the extent of groundwater contamination. Based on
         current information, the Company does not expect the cost of the
         investigation and remediation to have a material adverse effect on the
         Company's financial position or results of operations. The Company has
         established a reserve, based on current information, of an estimate of
         the costs expected to be incurred for the environmental matters.

         ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                a)  The Company's annual meeting of stockholders was held on 
                    June 24, 1998.

                b)  At the annual meeting, the Company's stockholders elected
                    Morton A. Cohen, Dwight D. Goodman, Michael L. Boeckman,
                    Richard L. Immerman and Morris H. Wheeler as Directors for a
                    term that expires at the annual meeting of stockholders in
                    1999.

                c)  At the annual meeting, the Company's stockholders ratified
                    the appointment of Arthur Andersen, LLP as auditors of the
                    Company for fiscal 1998. The holders of 2,270,118 shares of
                    Common Stock voted to ratify the appointment, the holders of
                    13,700 shares voted against the ratification, and the
                    holders of 1,450 shares abstained.

                           The following tabulation represents voting for the
                           Directors:

<TABLE>
<CAPTION>
                                                                        For                         Withheld Authority
                                                             ---------------------------         --------------------------

<S>                                                                  <C>                                  <C>   
                             Morten A. Cohen                         2,267,218                            18,050
                             Dwight D. Goodman                       2,267,218                            18,050
                             Michael L.  Boeckman                    2,267,218                            18,050
                             Richard L. Immerman                     2,267,218                            18,050
                             Morris H. Wheeler                       2,267,218                            18,050
</TABLE>



                                       13

<PAGE>   16


                           COHESANT TECHNOLOGIES INC.

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


         ITEM 5.  OTHER INFORMATION

                The Company's Glas-Craft subsidiary has recently signed an $1.8
         million agreement with Burtin Urethane Corp. of Santa Ana, California.
         Under the agreement, Glas-Craft will sell Burtin at least 200
         two-component spray finishing and coating applications systems.
         Delivery of the systems has commenced and are expected to continue thru
         1999 year-end. Disclosure of the foregoing shall not imply that the
         agreement is a "material contract" within the definition of Item
         601(b)(10), Regulation S-K.

         ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

             Exhibit 27 -  Financial Data Schedule






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<PAGE>   17


                                    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:            October 9, 1998


                                                 COHESANT TECHNOLOGIES INC.



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












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