<PAGE>

                                                                  CONFORMED COPY


                                   FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

       For the Quarter Ended December 31, 1999 Commission File No. 0-9996



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

            Minnesota                            41-1387074
            ---------                            ----------
(State or other jurisdiction of                (I.R.S. Employer
 incorporation or organization)               Identification No.)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.

                            YES  X       NO
                                ----        ----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.



       Class                               Outstanding at February 3, 2000
-----------------------                    -------------------------------
Common stock, par value                               4,072,732
 shares
  $ .05 per share


<PAGE>

                                 DOTRONIX, INC.
                                      INDEX

<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION                                                  PAGE(S)
<S>                                                                             <C>

           Item 1.  Financial Statements (Unaudited)

                   Balance Sheets                                               3

                   Statements of Operations                                     4

                   Statements of Cash Flows                                     5

                   Notes to Financial Statements                                6


           Item 2.  Management's Discussion and
                    Analysis of Financial Condition and Results
                    of Operations                                              7-8

PART II - OTHER INFORMATION


           Item 1.  Exhibits and Reports on Form 8-K                    9-10


EXHIBIT 27 - Financial Data Schedule                                            11
</TABLE>


<PAGE>

STATEMENTS OF CASH FLOWS
DOTRONIX INC
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    SIX MONTHS ENDED
                                                                                       DECEMBER 31
                                                                         -----------------------------------------
                                                                             1999                       1998
                                                                         --------------             --------------
CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                                                       <C>                     <C>
              Net earnings                                                $  (502,182)            $  (802,073)
              Adjustment to reconcile net  loss to net cash
              used in operating activities:
               Writedown for inventory obsolescence                            70,000                  79,994
               Depreciation and amortization                                  146,596                 124,097
                Stock compensation                                             29,485
                Amortization of deferred gain on sale of                      (23,806)
                   building
               Change in assets and liabilities:
                      Accounts receivable                                     200,209                 (65,390)
                      Inventories                                              37,726                 671,538
                      Prepaid expenses                                        (54,035)               (122,465)
                      Other assets                                              2,988                  24,147
                      Accounts payable and accrued liabilities               (100,989)                (79,396)

                                                                          -----------             -----------

NET CASH USED IN OPERATING ACTIVITIES                                        (194,008)               (169,548)

CASH FLOWS FROM INVESTING ACTIVITIES:
              Purchase of property, plant and equipment                       (50,452)                (32,034)
                                                                          -----------             -----------

NET CASH USED IN INVESTING ACTIVITIES                                         (50,452)                (32,034)

CASH FLOWS FROM FINANCING ACTIVITIES:
              Borrowings on revolving loan                                  4,589,436               3,921,003
              Repayments on revolving loan                                 (4,585,681)             (3,650,624)
              Payments of capital lease obligations                           (76,762)

                                                                          -----------             -----------

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                          (73,007)                270,379
                                                                          -----------             -----------

NET (DECREASE) INCREASE IN CASH
  AND CASH EQUIVALENTS                                                       (317,467)                 68,797

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF THE PERIOD                                                     621,414                 290,578
                                                                          -----------             -----------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                            $   303,947             $   359,375
                                                                          ===========             ===========
</TABLE>

                    See notes to financial statements.

<PAGE>

STATEMENTS OF CASH FLOWS
DOTRONIX INC
(UNAUDITED)

<TABLE>
<CAPTION>
                                              THREE MONTHS ENDED,                             SIX MONTHS ENDED,

                                                  DECEMBER 31                                   DECEMBER 31

                                         1999                  1998                  1999                  1998
                                         ----                  ----                  ----                  ----
                                   -----------------      ----------------      ----------------      ----------------
<S>                                 <C>                     <C>                     <C>                     <C>
REVENUES                            $ 1,782,896             $ 1,940,993             $ 4,351,844             $ 3,682,725

OPERATING EXPENSES:
      Cost of Sales                   1,371,496               1,347,433               3,156,303               2,551,618

      Selling, general
      and administrative                892,608                 946,008               1,631,369               1,898,892

      Interest                           37,895                  20,115                  66,354                  34,288
                                    -----------             -----------             -----------             -----------

Net (loss)                          $  (519,103)            $  (372,563)            $  (502,182)            $  (802,073)
                                    ===========             ===========             ===========             ===========


Basic and diluted loss
per common share
(Note B)                            $     (0.13)            $     (0.09)            $     (0.12)            $     (0.20)

Average number of common
  shares outstanding                  4,072,978               4,040,666               4,065,290               4,040,134
</TABLE>

                    See notes to financial statements.

<PAGE>

                          PART I. FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS
BALANCE SHEETS, DOTRONIX, INC.
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                     DECEMBER 31                 JUNE 30
ASSETS                                                                  1999                      1999
                                                                 --------------------       -------------------
<S>                                                                 <C>                      <C>
Cash and cash equivalents                                           $    303,947             $    621,414
Accounts receivable, less allowance
for doubtful accounts of $36,588 at both dates                         1,151,856                1,352,065

Inventories:
    Raw materials                                                      1,523,991                1,780,861
    Work-in-process                                                      532,062                  424,463
    Finished goods                                                       229,826                  188,281
                                                                    ------------             ------------
          Total inventories                                            2,285,879                2,393,605
Prepaid expenses                                                          73,007                   18,972
                                                                    ------------             ------------
Total current assets                                                   3,814,689                4,386,056

PROPERTY, PLANT & EQUIPMENT
at cost net of accumulated depreciation
of $5,598,929 and $5,493,332  respectively                             1,250,487                1,305,632

OTHER ASSETS:
Excess of cost over fair value of net assets acquired,
less amortization of $917,971 and $881,972, respectively                 521,983                  557,982
License agreement,  net                                                   20,000                   25,000
Other                                                                      6,704                    9,692
                                                                    ------------             ------------
TOTAL ASSETS                                                        $  5,613,863             $  6,284,362
                                                                    ============             ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving loans                                                     $    401,922             $    398,167
Current maturities-capital lease obligations                              66,049                  110,596
Accounts payable                                                         606,984                  664,106
Salaries, wages and payroll taxes                                         90,741                  157,782
Current portion-deferred gain on sale of building                         47,613                   47,613
Other accrued liabilities                                                177,471                  139,893
                                                                    ------------             ------------
Total current liabilities                                              1,390,780                1,518,157

CAPITAL LEASE OBLIGATIONS                                                      -                   32,215

DEFERRED GAIN ON SALE OF BUILDING                                        396,775                  420,581

STOCKHOLDERS' EQUITY:
Common stock, $.05 par value                                             203,031                  202,880
Additional paid-in capital                                            10,823,483               10,812,928
Unearned compensation                                                    (11,500)                 (15,875)
Accumulated deficit                                                   (7,188,706)              (6,686,524)
                                                                                             ------------
Total stockholders' equity                                             3,826,308                4,313,409
                                                                    ------------             ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                $  5,613,863             $  6,284,362
                                                                    ============             ============
</TABLE>


                       See notes to financial statements.
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS


A. Basis of Presentation

The balance sheet as of December 31, 1999, the statements of operations for the
three and six month periods ended December 31, 1999 and 1998 and the statements
of cash flows for the six month periods ended December 31, 1999 and 1998 have
been prepared by the Company without audit. In the opinion of management, all
adjustments (consisting only of normal recurring accruals) necessary to present
fairly the financial position, results of operations and cash flows at December
31, 1999 and for the three and six months periods ended December 31, 1999 and
1998 presented herein have been made.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these financial statements
be read in conjunction with the Company's financial statements and notes thereto
included in the Annual Report on Form 10-KSB of the Company for the fiscal year
ended June 30, 1999.

B. Earnings per share

The following table reflects the calculation of basic and diluted earnings per
share.

<TABLE>
<CAPTION>
                                            THREE MONTHS     THREE MONTHS       SIX MONTHS         SIX MONTHS
                                            ------------     ------------       ----------         ----------
                                          December 31 (1)  December 31 (1)   December 31 (1)    December 31 (1)
                                                 1999             1998               1999               1998
<S>                                      <C>              <C>                <C>                <C>
Loss per share - basic and diluted
Net loss                                         ($519,103)       ($372,563)         ($502,182)         ($802,073)
Weighted average shares outstanding              4,072,978        4,040,666          4,065,290          4,040,134
Net loss per share - basic                          ($0.13)          ($0.09)            ($0.12)            ($0.20)
                                          ========================================================================
</TABLE>


(1)  The effect of stock options have been excluded from calculation of earnings
     per share for the three months and six months ended December 31, 1999 and
     December 31, 1998 as their effect is antidilutive.


C. Liquidity

The Company has not met the tangible net worth covenant in its revolving credit
agreement since December 1998. On October 1, 1999 the lender under this
agreement notified the Company of its intent to terminate the agreement and to
require repayment of the borrowings thereunder plus an early termination fee of
$30,000 effective December 31, 1999. In a letter dated January 21, 2000, the
lender agreed to advance funds to the Company through February 29, 2000. The
lender will continue to receive all payments made on Company receivables until
all amounts due the lender are paid. The Company expects payments will be
completed by March 31, 2000. At January 21, 2000, borrowing under this agreement
totaled $481,143. Substantially all of the Company's assets, other than its real


<PAGE>

property, are pledged to secure the borrowings under this agreement. When
payment is completed all pledged assets will be released.

The Company's president and major stockholder has agreed to provide up to
$1,000,000 in secured financing to the Company in the form of cash loans or
guarantees on Company borrowings. The terms of the lending agreement will be
consistent with the Company's existing agreement. The proposed interest rate of
3% over the published prime rate of Norwest Bank is lower than the current rate
and lower than competitive rates from an outside lending institution. Loan
origination fees, due diligence costs other than legal fees, and loan
termination fees will be waived.

This agreement expires on September 30, 2000, or upon sale of the Company and
provides for the issuance of warrants to purchase one share of common stock, at
market value at the date of the advance, for each four dollars loaned to the
Company.


                   ITEM2. MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Revenue decreased by $158,000 or 8% for the three months ended December 31,
1999, and increased $669,000, or 18% for the six months ending December 31,
1999, compared to like periods in the prior year. The six month increase in 1999
over 1998 was attributable to demand for the new intelligent monitor products.

The gross margin percentage for the quarter ended December 31, 1999 was 23%,
compared to 31% for the same quarter ended in fiscal 1998. The gross margin
percentage for the six months ended December 31, 1999 was 27%, compared to 31%
for the six months ended December 31, 1998. One time costs associated with the
consolidation of manufacturing at the Eau Claire facility contributed to the
decrease in gross margin percentage. These costs included training costs related
to products formerly manufactured in New Brighton, and cost of moving equipment
and inventory.

Selling, general, and administrative expenses decreased $53,000 or 6% for the
quarter and $268,000 or 14% for the six months ended December 31, 1999, when
compared to the prior year. The decrease was due to reductions in personnel and
the completion of a major product development effort in fiscal 1999. . Interest
expense increased $18,000, or 88% during the quarter and $32,000, or 94% for the
six months ended December 31, 1999 compared to the same period of the prior
year. Increased average borrowings and a higher average interest rate caused the
increase in interest expense.

Starting in October 1999 a cost reduction program was implemented which reduced
payroll and related costs by 10% at December 31, 1999 and an additional 10%
reduction at January 31, 2000.

LIQUIDITY AND CAPITAL RESOURCES

The Company has not met the tangible net worth covenant in its revolving credit
agreement since December 1998. On October 1, 1999 the lender under this
agreement notified the Company of its intent to terminate the agreement and to
require repayment of the borrowings thereunder plus an early termination fee of
$30,000 effective December 31, 1999. In a letter dated January 21, 2000, the
lender


<PAGE>

agreed to advance funds to the Company through February 29, 2000. The lender
will continue to receive all payments made on Company receivables until all
amounts due the lender are paid. The Company expects payments will be completed
by March 31, 2000. At January 21, 2000, borrowing under this agreement totaled
$481,143. Substantially all of the Company's assets, other than its real
property, are pledged to secure the borrowings under this agreement. When
payment is completed all pledged assets will be released.


The Company's president and major stockholder has agreed to provide up to
$1,000,000 in secured financing to the Company in the form of cash loans or
guarantees on Company borrowings. The terms of the lending agreement will be
consistent with the Company's existing agreement. The proposed interest rate of
3% over the published prime rate of Norwest Bank is lower than the current rate
and lower than competitive rates from an outside lending institution. Loan
origination fees, due diligence costs other than legal fees, and loan
termination fees will be waived.

This agreement expires on September 30, 2000, or upon sale of the Company and
provides for the issuance of warrants to purchase one share of common stock, at
market value at the date of the advance, for each four dollars loaned to the
Company.


During the six months ended December 31, 1999, operations consumed $194,000 of
cash. Purchases of property, plant and equipment consumed $50,000 of cash.
Payment of capital lease obligations consumed $77,000 of cash. Increased
borrowings on the working capital loan provided $4,000 of cash to the Company.
The overall result was an decrease in cash of $317,000.


COMMON STOCK LISTING

The Company's Common Stock previously was quoted on the NASDAQ Stock Market
under the symbol "DOTX". Effective August 4, 1999 the Company's Common Stock
transferred to the OTC Bulletin Board.


IMPACT OF THE YEAR 2000 ON THE COMPANY'S INFORMATION TECHNOLOGY SYSTEMS.

The Company's products are not impacted by the year 2000 issue since the
displays/monitors that the Company designs and manufacturers do not contain date
logic as part of their operation.

To comply with the year 2000 issue, the Company purchased year 2000 ready
hardware and software (per vendor readiness documents) in September 1998. Total
estimated cost of the purchase was $433,000 of which $398,000 has been
capitalized.
No additional costs are expected to be incurred after December 31, 1999.

Installation and training have been ongoing since January 15, 1999. Several
pilot runs were completed through August 31, 1999. Final data transfer and
implementation of processes was completed on October 4, 1999, whereupon the
system became operational. The hardware vendor has assured the Company that the
installed hardware is Year 2000 ready. The software vendor has assured the
Company that its software release running as of October 4, 1999 is Year 2000
ready. The hardware


<PAGE>

vendor and the software vendor are both well established companies with a long
history of successful client installations. The Company believes that the
hardware and software vendors will support their products under all
contingencies.

In August 1999 the Company began a written evaluation of its suppliers. Letters
requesting information of Year 2000 readiness were sent or faxed to all key
suppliers. A substantial majority of suppliers responded that they were Year
2000 ready and products and services would not be delayed due to Year 2000
problems. No suppliers responded that they were not Year 2000 ready. The Company
has continued to contact the non-responding suppliers to determine their Year
2000 readiness. For a majority of the Company's critical materials, alternative
suppliers are available if current suppliers experience Year 2000 difficulties.
The Company has a long history of re-engineering products on short notice
because of the unexpected unavailability of parts.


In June 1998, the FASB issued SFAS 133, "Accounting for Derivative Instruments
and Hedging Activities". This Statement requires companies to record derivatives
on the balance sheet as assets and liabilities, measured at fair value. Gains or
losses resulting from changes in the value of those derivatives would be
accounted for depending on the use of the derivatives and whether it qualifies
for hedge accounting. Management has not yet completed an assessment of the
impact of adopting the provisions of SFAS 133 on the Company's financial
statements. This statement is effective for fiscal years beginning after June
15, 2000. The Company will adopt this accounting standard as required in fiscal
2001.


                           PART II - OTHER INFORMATION


Item 4.   Submission Of Matters to a Vote of Securities Holders

At the annual meeting of the shareholders of the Company Held on December 28,
1999 the following items were voted on:

<TABLE>
<CAPTION>

          ELECTION OF DIRECTORS
                                                     VOTES FOR                WITHHELD
                                                     ---------                 ------
<S>                                                  <C>                       <C>
William S. Sadler                                    3,642,328                 92,637
Ray L. Bergeson                                      3,642,328                 92,637
Robert J. Snow                                       3,642,328                 92,637
Edward L. Zeman                                      3,642,328                 92,637
L. Daniel Kuechenmeister


            COMPANY PROPOSALS                        VOTES FOR              WITHHELD            ABSTAIN
                                                     ---------              --------            -------
<C>                                                  <C>                      <C>              <C>
1999 Stock Incentive Plan                            1,992,797                146,770          44,059

1999 Non-employee Director Stock Option
and Stock Grant Plan                                 1,924,576                199,672          49,470
</TABLE>

Both proposals passed.


<PAGE>

Item 6.  Exhibits and reports on Form 8-K

          (a) Exhibit 27........Financial Data Schedule

          (b) No reports on Form 8-K were issued during the quarter.



                                   SIGNATURES

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

Date:  February 14, 2000                       DOTRONIX, INC.


                                          By   /s/ William S. Sadler
                                              --------------------------
                                                   William S. Sadler
                                                   President
                                                   (Principal Executive
                                                   Officer)

                                          By   /s/ Robert V. Kling
                                              --------------------------
                                                   Robert V. Kling
                                                   Chief Financial Officer
                                                   (Principal Financial
                                                   and accounting Officer)