<PAGE>

                                    FORM 10-Q


                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549

[x] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarterly period ended March 31, 2002 or
                                           --------------

[_] Transition report pursuant to section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from ______ to ______

                                     1-9731
                              (Commission file No.)

                      ARRHYTHMIA RESEARCH TECHNOLOGY, INC.
             (Exact name of registrant as specified in its charter)

           DELAWARE                                       72-0925679
(State or other jurisdiction of             (I.R.S. employer identification no.)
 incorporation or organization)

                                25 Sawyer Passway

                         Fitchburg, Massachusetts 01420

              (Address of principal executive office and zip code)

                                 (978) 345-5000
              (Registrant's telephone number, including area code)

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_____.
   -----

As of May 2, 2002 there were 2,912,076 shares of common stock outstanding.

This report consists of 9 pages.

<PAGE>

                      ARRHYTHMIA RESEARCH TECHNOLOGY, INC.

                                TABLE OF CONTENTS

                                    FORM 10-Q

                                 March 31, 2002

<TABLE>
<S>                                                                                                           <C>
PART I - FINANCIAL INFORMATION .............................................................................  3

   Item 1.  Consolidated Financial Statements ..............................................................  3
   Balance Sheets ..........................................................................................  3
   Statements of Income ....................................................................................  4
   Statements of Changes in Shareholders' Equity ...........................................................  5
   Statements of Cash Flows ................................................................................  6
   Supplemental Notes to Consolidated Financial Statements .................................................  7

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

PART II - OTHER INFORMATION ................................................................................  9

   Item 1.  Legal Proceedings - none .......................................................................  9
   Item 2.  Changes in Securities - none ...................................................................  9
   Item 3.  Defaults Upon Senior Securities - none .........................................................  9
   Item 4.  Submission of Matters to a Vote of Security Holders - none .....................................  9
   Item 5.  Other Information - none .......................................................................  9
   Item 6.  Exhibits and Reports on Form 8-K - none ........................................................  9
   SIGNATURES ..............................................................................................  9
</TABLE>

                                       2

<PAGE>

              ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                               March 31,  December 31,
                                           ASSETS                                               2002          2001
                                                                                            --------------------------
<S>                                                                                         <C>           <C>
Current assets:
  Cash and cash equivalents .............................................................   $ 1,642,808    $ 1,860,822
  Trade and other accounts receivable, net of allowance for doubtful accounts
        of $51,000 ......................................................................       954,245        854,426
  Inventories, net ......................................................................       992,354        897,087
  Deposits, prepaid expenses and other current assets ...................................        22,637         27,887
                                                                                            -----------    -----------
    Total current assets ................................................................     3,612,044      3,640,222

Property and equipment, net of accumulated depreciation of $4,507,230 and $4,358,954 ....     3,339,472      3,272,592
Goodwill, net of accumulated amortization of $1,079,073 and $1,147,326 ..................     1,244,000      1,326,000
Deferred income taxes, net ..............................................................       444,923        444,923
                                                                                            -----------    -----------
    Total assets ........................................................................   $ 8,640,439    $ 8,683,737
                                                                                            ===========    ===========

                            LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Current maturities of 11% bonds payable ...............................................       120,044        113,028
  Accounts payable ......................................................................       178,007        343,010
  Accrued expenses ......................................................................       345,008        314,840
                                                                                            -----------    -----------
    Total current liabilities ...........................................................       643,059        770,878

Shareholders' equity:
  Preferred stock, $1 par value; 2,000,000 shares authorized, none issued ...............             -              -
  Common stock, $.01 par value; 10,000,000 shares authorized;
      3,830,181 and 3,758,181 issued ....................................................        38,302         37,582
  Additional paid-in-capital ............................................................     9,075,361      8,999,581
  Common stock held in treasury, 918,105 and 869,305 shares at cost .....................    (2,494,279)    (2,357,279)
  Retained earnings .....................................................................     1,377,996      1,232,975
                                                                                            -----------    -----------
    Total shareholders' equity ..........................................................     7,997,380      7,912,859
                                                                                            -----------    -----------
    Total liabilities and shareholders' equity ..........................................   $ 8,640,439    $ 8,683,737
                                                                                            ===========    ===========
</TABLE>

The accompanying notes are an integral part of the consolidated financial
                                   statements.

                                       3

<PAGE>

              ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           Three Months Ended Mar. 31,
                                                                           ---------------------------
                                                                              2002            2001
                                                                           ---------------------------
<S>                                                                        <C>            <C>
Revenue ................................................................   $ 1,915,097    $ 1,753,974
Cost of sales ..........................................................     1,282,716      1,249,467
                                                                           -----------    -----------

  Gross profit .........................................................       632,381        504,507
                                                                           -----------    -----------

Selling and marketing ..................................................        13,037         23,738
General and administrative .............................................       316,845        360,042
Research and development ...............................................        23,335         44,129
Amortization of goodwill ...............................................             -         32,472
                                                                           -----------    -----------

  Income from operations ...............................................       279,164         44,126

Other income (expense):
  Interest expense .....................................................        (6,057)        (5,601)
  Other income (expense), net ..........................................        (2,086)         3,527
                                                                           -----------    -----------

Income before income taxes and cumulative effect of change
  in accounting principle ..............................................       271,021         42,052

Income tax provision ...................................................        69,000          8,000
                                                                           -----------    -----------

Income before cumulative effect of change in accounting principle ......       202,021         34,052

Cumulative effect of change in accounting principle, net of tax ........       (57,000)             -
                                                                           -----------    -----------

  Net income ...........................................................   $   145,021    $    34,052
                                                                           ===========    ===========

Net income per share - basic and dilutive ..............................   $      0.05    $      0.01
                                                                           ===========    ===========

Weighted average number of common
  shares outstanding - basic ...........................................     2,920,540      3,111,505
                                                                           ===========    ===========
</TABLE>

   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       4

<PAGE>

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                Common Shares         Additional
                                         --------------------------    Paid-in       Treasury      Retained
                                            Number        Amount       Capital        Stock        Earnings       Total
                                         ------------  ------------  ------------  ------------  ------------  ------------
<S>                                      <C>           <C>           <C>           <C>           <C>           <C>
December 31, 1999  ....................    3,711,883   $    37,119   $ 8,946,293   $(1,151,892)  $   390,219   $ 8,221,739
Issuance of common stock ..............       17,798           178        26,322                                    26,500
Treasury stock purchase of 265,040
   shares .............................                                               (502,772)                   (502,772)
Value of warrants with ................
 bond renewal .........................                                  194,000                                   194,000
Net income ............................                                                              620,127       620,127
                                         ------------  ------------  ------------  ------------  ------------  ------------
December 31, 2000  ....................    3,729,681        37,297     9,166,615    (1,654,664)    1,010,346     8,559,594
Issuance of common stock ..............       28,500           285        29,996                                    30,281
Warrants repurchased ..................                                 (197,030)                                 (197,030)
Treasury stock purchase of 305,859
   shares .............................                                               (702,615)                   (702,615)
Net income ............................                                                              222,629       222,629
                                         ------------  ------------  ------------  ------------  ------------  ------------
December 31, 2001  ....................    3,758,181        37,582     8,999,581    (2,357,279)    1,232,975     7,912,859
Issuance of common stock ..............       72,000           720        75,780                                    76,500
Treasury stock purchase of 48,800
   shares .............................                                               (137,000)                   (137,000)
Net income ............................                                                              145,021       145,021
                                         ------------  ------------  ------------  ------------  ------------  ------------
March 31, 2002 ........................    3,830,181   $    38,302   $ 9,075,361   $(2,494,279)  $ 1,377,996   $ 7,997,380
                                         ============  ============  ============  ============  ============  ============
</TABLE>

    The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                        5

<PAGE>

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                            Three Months Ended March 31,
                                                                                            ----------------------------
                                                                                                2002             2001
                                                                                            ----------------------------
<S>                                                                                         <C>              <C>
Cash flows from operating activities:
  Net income .............................................................................  $   145,021      $    34,052

  Adjustments to reconcile net income to net cash provided by operating activities:
    Cumulative effect of change in accounting principle, net of tax ......................       57,000                -
    Depreciation .........................................................................      148,276          165,730
    Amortization .........................................................................        7,016           60,028
  Changes in assets and liabilities:
    Trade and other accounts receivable ..................................................      (99,819)         312,269
    Inventories ..........................................................................      (95,267)         (74,734)
    Deposits, prepaid expenses and other assets ..........................................        5,250           (6,989)
    Accounts payable, accrued expenses and other  liabilities ............................     (109,835)        (123,082)
                                                                                            -----------      -----------
       Net cash provided by operating activities .........................................       57,642          367,274
                                                                                            -----------      -----------

Cash flows from investing activities:
   Capital expenditures, net of disposals ................................................     (215,156)         (81,549)
                                                                                            -----------      -----------
       Net cash used in investing activities .............................................     (215,156)         (81,549)
                                                                                            -----------      -----------

Cash flows from financing activities:
   Issuance of common stock ..............................................................       76,500                -
   Payments on capital leases ............................................................            -           (5,020)
   Purchase of treasury stock ............................................................     (137,000)        (252,986)
                                                                                            -----------      -----------
       Net cash used in financing activities .............................................      (60,500)        (258,006)
                                                                                            -----------      -----------
Net increase (decrease) in cash and cash equivalents .....................................     (218,014)          27,719
Cash and cash equivalents at beginning of period .........................................    1,860,822        1,999,292
                                                                                            -----------      -----------
Cash and cash equivalents at end of period ...............................................  $ 1,642,808      $ 2,027,011
                                                                                            ===========      ===========
</TABLE>

    The accompanying notes are an integral part of the consolidated financial
                                   statements.

                                        6

<PAGE>

SUPPLEMENTAL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         The unaudited interim consolidated financial statements and related
notes have been prepared pursuant to the rules and regulations of the Securities
and Exchange Commission. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been omitted pursuant to such
rules and regulations. The accompanying unaudited interim consolidated financial
statements and related notes should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's most recent
Form 10-K covering the year ended December 31, 2001.

         The information furnished reflects, in the opinion of the management of
Arrhythmia Research Technology, Inc. ("ART"), all adjustments necessary for a
fair presentation of the financial results for the interim period presented.

         Interim results are subject to year-end adjustments and audit of
year-end results by independent certified public accountants.

Inventories:

         Inventories consist of the following as of:

<TABLE>
<CAPTION>
                                                              March 31,       December 31,
                                                                 2002             2001
                                                            --------------   ---------------
                <S>                                         <C>              <C>
                Raw materials ..........................    $      201,122   $       166,835
                Work-in-process ........................           274,714           318,070
                Finished goods .........................           516,518           412,182
                                                            --------------   ---------------
                     Total .............................    $      992,354   $       897,087
                                                            ==============   ===============
</TABLE>

Goodwill:

         Effective January 1, 2002 the Company adopted FASB Statements No.141,
Business Combinations ("SFAS 141") and No. 142, Goodwill and Other Intangible
Assets ("SFAS 142"). SFAS 141 requires the use of the purchase method of
accounting and prohibits the use of the pooling-of-interest method of accounting
for business combinations initiated after June 30, 2001. SFAS 141 also requires
that the Company recognize acquired intangible assets apart from goodwill if the
acquired intangible assets meet certain criteria. SFAS 141 applies to all
business combinations initiated after June 30, 2001 and for purchase business
combinations completed on or after July 1, 2001. It also requires, upon adoption
of SFAS 142, that the Company reclassify the carrying amounts of intangible
assets and goodwill based on the criteria in SFAS 141.

         SFAS 142 requires, among other things, that companies no longer
amortize goodwill, but instead test goodwill for impairment at least annually.
In addition, SFAS 142, requires that the Company identify reporting units for
the purpose of assessing potential future impairments of goodwill, reassess the
useful lives of other existing recognized intangible assets, and cease
amortization of intangible assets with an indefinite useful life. An intangible
asset with an indefinite useful life should be tested for impairment in
accordance with the guidelines in SFAS 142. SFAS 142 is required to be applied
to all goodwill and other intangible assets regardless of when those assets were
initially recognized.

         As of January 1, 2002, the Company's goodwill of $1,326,000 was
composed of $82,000 associated with attaching machine assets purchased from
Newmark, Inc. in 1997 and $1,244,000 associated with the acquisition of Micron
Products, Inc. in 1992. As a result of the transitional impairment tests, the
goodwill associated with the Newmark agreement was determined to be impaired as
determined by using the present value of future cash flows solely related to
attaching machines. The balance of $82,000 ($57,000 net of tax) is being
reported as the cumulative effect of change in accounting principle for the
three months ended March 31, 2002. The diminishing number of leases and sales of
attaching machines used for the assembly of disposable medical electrodes in
this mature industry lead to the impairment of Newmark goodwill. No adjustment
to the $1,244,000 balance of goodwill associated with the Micron Products
acquisition was deemed necessary as of March 31, 2002.

                                       7

<PAGE>

Goodwill-(continued)

         The effect on reported net income due to the cumulative effect of
change in accounting principle and the discontinuance of goodwill amortization
is as follows:

<TABLE>
<CAPTION>
                                                                          Three months ended March,
                                                                             2002             2001
                                                                        ------------------------------
          <S>                                                           <C>               <C>
          Reported net income                                           $      145,021    $     34,052
          Cumulative effect of change in accounting principle                   57,000               -
          Goodwill amortization                                                      -          32,472
                                                                        ------------------------------
          Adjusted net income before cumulative effect of
          change in accounting principle and discontinuance
          of goodwill amortization                                      $      202,021    $     66,524
                                                                        ==============================

          Earnings per share (basic and dilutive) as reported           $          .05    $        .01
          Cumulative effect of change in accounting principle                      .02               -
          Goodwill amortization                                                      -             .01
                                                                        ------------------------------
          Earnings per share (basic and dilutive) before
          cumulative effect of change in accounting principle
          and discontinuance of goodwill amortization                   $          .07    $        .02
                                                                        ==============================
</TABLE>

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

Liquidity and Capital Resources
-------------------------------

         Working capital was $2,968,985 at March 31, 2002 compared to $2,869,344
at December 31, 2001, an increase of $99,641. Inventory has increased $95,267
since December 31, 2001 of which $37,000 is in preparation for a new supply
agreement for radiotranslucent sensors and snaps in 2002. The balance of the
increase in inventory was due to March 2002 shipments being 30% below forecast
which the Company believes will be realized over the remainder of the year.

         The Company has a $1,000,000 revolving credit line with a bank that was
established in December 1999. However, the Company has never made any borrowings
under the credit line due to sufficient liquidity provided by its operations.
The credit line, which is renewable in June 2002, provides for borrowings to be
collateralized by accounts receivable and inventory.

Results of Operations
---------------------

         Revenue for the first quarter ended March 31, 2002 was $1,915,097 or 9%
higher than those for the quarter ended March 31, 2001, which were $1,753,974.
Sales of Micron's silver plated sensors accounted for the revenue increase in
the first quarter of 2002 in response to an increase in customer orders. No
significant sales of ART's signal-averaging ECG products were recorded in the
first quarter or are forecast for the year 2002.

         Domestic and foreign sales for the first quarter are as follows:

<TABLE>
<CAPTION>
                                                                                       First Quarter
                                                                                       -------------
                                                                        2002          %          2001           %
                                                                   ---------------  ------  ---------------  --------
                       <S>                                         <C>              <C>     <C>              <C>
                       Domestic ..............................     $       331,741      18  $       340,859      19

                       Foreign ...............................           1,583,356      82        1,413,115      81
                                                                   ---------------  ------  ---------------  --------
                       Total .................................     $     1,915,097     100  $     1,753,974     100
                                                                   ===============  ======  ===============  ========
</TABLE>

         Cost of sales was 67% of revenue for the quarter ended March 31, 2002
compared to 71% for the same period in 2001. The change in the first quarter of
2002 was due to an 11% increase in Micron's production of sensors. The increased
volume has reduced the unit cost of sensors by a greater number of pieces
absorbing more of the fixed costs such as payroll, payroll benefits and
depreciation. Material costs have remained stable over 2000, 2001 and early
2002.

                                       8

<PAGE>

         Selling and marketing expense was $10,701 lower in the first quarter of
2002 compared to the first quarter of 2001 as a result of the elimination of a
direct sales staff and marketing support for ART signal-averaging ECG products
in 2001. The Company hopes in 2002 to market ART's software through license or
sales agreements not requiring new sales personnel.

         General and administrative expense was $43,197 lower in the first
quarter of 2002 compared to the first quarter of 2001, reflecting the savings
associated with the closing of the Austin, Texas office in 2001.

         Research and development expense was $20,794 lower in the first quarter
of 2002 compared to the first quarter of 2001 as the conversion and enhancements
to ART's principal product, Predictor(R) 7, have been completed and no
significant work is scheduled for other products in 2002.

         Other income (expense) resulted in lower income of $5,613 in the first
quarter of 2002 compared to the first quarter of 2001. The decrease is
attributed to the drop in market rates ($20,529) on the Company's fixed return
investments. The interest income decrease was partially offset by a $14,456
expense reduction in the amortization of the Bond discount due to the early
retirement of a majority of the 11% Bonds in December 2001.

         Income taxes as a percent of income before income taxes and cumulative
effect of change in accounting principle (net of tax) were 25% and 19% for the
quarters ended March 31, 2002 and 2001, the lower rate reflecting a
non-recurring state tax credit recorded in 2001.

Safe Harbor Under the Private Securities Litigation Reform Act of 1995.
----------------------------------------------------------------------
  Any forward looking statements made herein are based on current expectations
of the Company that involves a number of risks and uncertainties and should not
be considered as guarantees of future performance. These statements are made
under the Safe Harbor Provisions of the Private Securities Litigation Reform Act
of 1995. The factors that could cause actual results to differ materially
include: interruptions or cancellation of existing contracts, impact of
competitive products and pricing, product demand and market acceptance risks,
the presence of competitors with greater financial resources than the Company,
product development and commercialization risks and an inability to arrange
additional debt or equity financing.

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - none

Item 2.  Changes in Securities - none

Item 3.  Defaults Upon Senior Securities - none

Item 4.  Submission of Matters to a Vote of Security Holders - none

Item 5.  Other Information  - none

Item 6.  Exhibits and Reports on Form 8-K - none


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.

                      Arrhythmia Research Technology, Inc.
                      -----------------------------------


                      /s/  James E. Rouse
                      -----------------------------------
                      President and Chief Operating Officer


                      /s/  Richard A. Campbell
                      -----------------------------------
                      Vice President of Finance

May 13, 2002

                                       9