<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q

(X)      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934, for the Quarter Ended September 30, 2000.

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 1-9748

                        AMERICAN FILM TECHNOLOGIES, INC.
--------------------------------------------------------------------------------
               (Exact name of registrant as specified its charter)


           Delaware                                     23-2359277
--------------------------------------------------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporated or organization)


                 300 Park Avenue, 17th Floor, New York, NY 10022
                 -----------------------------------------------
                    (Address of principal executive offices)

Registrant's telephone number including area code: (212) 572-6370

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 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

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS. Indicate by check mark whether the registrant has filed
all documents and reports required to be filed by Section 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court. Yes No X

APPLICABLE ONLY TO CORPORATE ISSUERS.  As of September 30, 2000,
there were 150,333,048 shares of common stock outstanding.
<PAGE>   2
                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

                        American Film Technologies, Inc.
                      Condensed Consolidated Balance Sheet



<TABLE>
<CAPTION>
                                                   September 30,
                                                       2000          June 30,
                                                    (Unaudited)         2000
                                                   ------------    ------------
<S>                                                <C>             <C>
Assets
Current Assets:
    Cash                                           $     43,785    $      2,704
    Other current assets
                                                        160,000         160,000
                                                   ------------    ------------
Total current assets                                    203,785         162,704

Equipment and software, at cost, net
                                                         63,310          69,630
                                                   ------------    ------------
                                                   $    267,095    $    232,334
                                                   ------------    ------------

Liabilities and stockholders' equity (deficit)
Current Liabilities:
    Notes payable: current portion                 $  2,636,770    $  2,636,770
    Accounts payable and accrued expenses
                                                        902,571         935,050
                                                   ------------    ------------
Total current liabilities
                                                      3,539,341       3,571,820
                                                   ------------    ------------

Stockholders' Equity (Deficit)
    Common stock, $.002 par value:
    Authorized shares - 225,000,000; issued
    and outstanding shares 150,333,048
    and 142,719,437 at September 30, 2000 and
    June 30, 2000, respectively
    Capital in excess of par value                      300,666         285,439
                                                     17,725,049      17,583,649
    Deferred compensation                              (562,000)       (622,000)
    Accumulated deficit                             (20,735,961)    (20,586,574)
                                                   ------------    ------------
Total stockholders' equity (deficit)                 (3,272,246)     (3,339,486)
                                                   $    267,095    $    232,334
                                                   ============    ============
</TABLE>

See accompanying notes to financial statements.
<PAGE>   3
                        AMERICAN FILM TECHNOLOGIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                        September 30,    September 30,
                                                                            2000              1999
                                                                        -------------    -------------

<S>                                                                     <C>              <C>
Revenues:                                                               $        --      $        --

Expenses:

   Compensation and benefits - administrative
     and officers                                                              60,000           60,000
   Selling, general and administrative                                         60,256          340,271
   Interest expense                                                            22,740           22,703
   Depreciation and amortization                                                6,320           23,427
   Change of control expense                                                     --            750,000
                                                                        -------------    -------------
                                                                              149,316        1,196,401
                                                                        -------------    -------------

Net loss                                                                $    (149,316)   $  (1,196,401)
                                                                             (149,316)      (1,196,401)

                                                                        =============    =============


Net loss per share- basic                                               $       (0.00)   $       (0.01)

Net loss per share - diluted                                            $       (0.00)   $       (0.01)

Shares used in the calculation of net income (loss) per common share:
      Basic                                                               147,019,437      141,469,437
      Diluted                                                             217,608,410      184,516,147
</TABLE>






See accompanying notes to financial statements.
<PAGE>   4
                        AMERICAN FILM TECHNOLOGIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                    (UNAUDITED)


<TABLE>
<CAPTION>
                                                    September 30,  September 30,
                                                         2000          1999
                                                     -----------    -----------
<S>                                                  <C>            <C>
Cash Flows From Operating Activities:
Net loss                                             $  (149,316)   $(1,196,401)

Adjustments to reconcile net (loss) to net cash
(used) by operating activities:
    Depreciation and Amortization                          6,320         23,427
    Amortization of Deferred Compensation                 60,000         60,000
    Changes in Assets and liabilities:
      Other long-term assets                                --         (160,000)
      Accounts payable and accrued expenses              (32,550)       243,950
      Issuance of senior secured debt                       --          750,000
                                                     -----------    -----------

Net cash used by operating activities                   (115,546)      (279,024)
                                                     -----------    -----------

Cash Flows From Financing Activities:
    Principal payments on notes payable - other             --          (57,000)
    Proceeds from sale of common stock                   156,627        497,000
    Proceeds from sale of convertible debentures            --           50,000
                                                     -----------    -----------

Net cash provided by financing activities                156,627        490,000
                                                     -----------    -----------

Net increase (decrease) in cash                           41,081        210,976

Cash - beginning of period                                 2,704         27,528
                                                     -----------    -----------

Cash - end of period                                 $    43,785    $   238,504
                                                     ===========    ===========


Supplemental disclosures of cash flow information:
    Cash paid during the period for interest         $      --      $      --
</TABLE>



See accompanying notes to financial statements.
<PAGE>   5
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


1. The 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. 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, although the Company believes that the disclosures are
adequate to make the information presented not misleading. It is suggested that
these consolidated financial statements be read in conjunction with the
consolidated financial statements and the notes thereto included in the
Company's latest annual report on Form 10-K.

The accompanying unaudited consolidated financial statements contain all
adjustments (consisting of only normal recurring items) necessary to present
fairly the financial position as of September 30, 2000 and June 30, 2000, and
the results of operations and cash flows for the three months ended September
30, 2000 and 1999. The results of operations for the three months ended
September 30, 2000 and 1999, are not necessarily indicative of the results to be
expected for the full year.


2. REORGANIZATION UNDER CHAPTER 11

On October 16, 1993, the Company filed for protection from its creditors under
Chapter 11 of the United States Bankruptcy Code. The Chapter 11 filing was the
result of continuing defaults related to the Company's loans, recurring
operating losses and cash flow problems. The filing of a Chapter 11 petition
operates as a stay of, among other actions, the commencement or continuation of
a judicial administrative or other action or proceeding against a debtor that
was or could have been initiated before the commencement of a Chapter 11 case or
the enforcement against the debtor or against the property of the estate or a
judgment obtained before the commencement of the case. Under Chapter 11,
substantially all prepetition liabilities of debtors are subject to settlement
under a plan of reorganization. The consummation of a plan of reorganization is
dependent upon the satisfaction of numerous conditions, including, among other
things, the acceptance by several classes of interests and confirmation by the
Bankruptcy Court.

The Company's Plan of Reorganization (the "Plan") was approved by the Bankruptcy
Court on October 6, 1995, and became effective October 17, 1995.
<PAGE>   6
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

The Company's business is the production of color versions of motion pictures
and television programs originally produced in black and white. The Company has
produced colorized films for its own library and owns the copyrights on eleven
such films. These films are available for sale and or distribution.

Consolidation

The consolidated financial statements include the accounts of Midtech de Mexico,
S.A., the Company's wholly-owned, inactive, Mexican subsidiary. All intercompany
transactions have been eliminated in consolidation.


Depreciation and Amortization

Depreciation and amortization are provided over the estimated useful lives of
the underlying assets using primarily the straight-line method over a five-year
period. The Film Library is being amortized over a three-year period. Leasehold
improvements are amortized over the life of the lease or the estimated useful
life of the assets.

Loss per Share

In 1997, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings per Share". SFAS 128 replaced
the previously reported primary and fully diluted earnings per share with basic
and diluted earnings per share. Basic earnings per share are calculated
utilizing weighted average shares outstanding and exclude any dilutive effects
of options, warrants and convertible securities. Diluted earnings per share
include the effect of dilutive securities outstanding. All earnings per share
amounts for all period presented, where necessary, have been restated to conform
to the SFAS 128 requirements.

Stock Options

The Company has elected to follow Accounting Principles Board Opinion No. 25,
Accounting for Stock Issued to Employees (APB 25) and related interpretations in
accounting for its employee stock options. Under APB 25, for those Company
employee stock options issued with an exercise price not less than the market
price of the underlying stock on the date of grant, no compensation expense is
recognized.
<PAGE>   7
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                  (UNAUDITED)

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


This discussion should be read in conjunction with the consolidated financial
statements, related notes and management's discussion and analysis of financial
conditions and results of operations included in the Company's annual report on
Form 10-K for the year ended June 30, 2000.

Overview and Reorganization.

As stated previously, the Company's Plan of Reorganization (the "Plan") was
approved by the Bankruptcy Court and became effective October 17, 1995. Success
of the Company will, among other things, depend upon the resumption of
production in Mexico. That will require reemployment of selected former Mexican
employees. Since the Mexican operation was suspended in October 1993, the
Company believes most of the former employees have found other jobs. If the
Company is unable to rehire certain former employees, it will have to recruit
and train a new work force. That would delay the resumption of production and
increase the cost of production. As such, it could have a materially adverse
effect on the Company. Although the Company expects to benefit from the
devaluation of the peso, there is no assurance of how long those expected
benefits will last.

Since emerging from bankruptcy, the Company has actively pursued new product
development and opportunities, as well as strategic alliances, partners and
other sources of financing. The Company is in discussions with other potential
investors regarding the purchase of equity securities or other investments in
the Company, however, there can be no assurance that any transaction can be
negotiated or, if negotiated, that such a transaction can be consummated.

Results of Operations.

The financial results of the Company for each of the periods addressed by this
report do not reflect the earnings capacity of the Company. The financial data
for the periods ending September 30, 2000 and 1999 reflects the adoption of
Fresh Start Accounting. As such, the financial data is considered that of a
Successor Company and is not comparable to prior periods.
<PAGE>   8
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                  (UNAUDITED)

Since the filing under Chapter 11 in October, 1993, the Company has not
generated any income from film colorization, animation or fee for service
orders. For the quarter ended September 30, 2000 the Company recorded net
interest expense of approximately $23,000 as compared to $23,000 for the period
ended September 30, 1999.

For the quarters ended September 30, 2000 and 1999 the Company recorded
compensation and benefits for its administration and officers of approximately
$60,000 and $60,000 respectively.

For the quarters ended September 30, 2000 and 1999, the Company recorded
selling, general and administrative expenses of approximately $60,256 and
$340,000 respectively.

For the quarters ended September 30, 2000 and 1999, the Company recorded
depreciation and amortization expense of approximately $6,300 and $23,000
respectively.

For the quarters ended September 30, 2000 and 1999, the Company had a net loss
of approximately $149,000 and $1,200,000 respectively, or less than $0.01 cent
per share for each period.

Liquidity and Capital Resources.

During fiscal 2000, the Company's operations were financed almost entirely by
remaining working capital and proceeds from private placements of its securities
and purchases and option exercises. During this period $156,627 in stock was
issued in a private placement.

The Company is continuing to experience cash flow difficulties. The Company was
required to make a payment in October 1998 of approximately $405,000 plus
interest to unsecured creditors in connection with its 1995 bankruptcy
reorganization but has not made such payment. No creditor has filed a complaint
or objection or instituted any legal action to date because of such failure. To
the extent outside financing is not obtained in the immediate future, the
Company may be liquidated or it may seek further relief in the previously
instituted bankruptcy preceding. In the event of liquidation the shareholders in
all likelihood will receive nothing in respect of their stock.
<PAGE>   9
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


In addition, the Company needs funding sufficient to enable it to become
operational again, although, the amount of funding required is contingent on a
number of variables such as the speed of the start up and initial production
capacity required; the Company believes that the minimum amount of funding
required (including working capital) would be approximately $4,000,000.
<PAGE>   10
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


                           PART II: OTHER INFORMATION

Item 1. Legal Proceedings

         On December 6, 1999, a Judgment was entered against the Company in the
amount of $45,724.46. The Company has paid $22,399.76 of this amount and will
attempt to negotiate a settlement of the balance of this Judgment and to arrange
for a reasonable payout.

         In addition, an arbitration award was granted against the Company in
the amount of $36,693.41 in January, 2000. A judgement was entered in New York
State for the amount of the award. That judgement was satisfied.

         Grant & Eisenhofer, PA ("Grant") claim that the Company owes them $298,
225.06 for legal services performed on behalf of AFT. In September 2000, the
Board of Directors initially agreed to issue 3,313,611 shares of the Company's
common stock to Grant in settlement of this matter. A shareholder of the Company
has questioned the authority of the Board of Directors to issue shares of stock
under such circumstances. This issue is presently under review and no shares
have been issued by the Company.
<PAGE>   11
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


Item 2. Changes In Securities and Use of Proceeds

Sale of Unregistered Securities - Between July 1, 2000 and November 14, 2000
4,300,000 shares of common stock were issued in a private placement for proceeds
in the amount of $150,000. The common stock was issued without the benefit of an
effective registration statement under the Securities Act of 1933, as amended
(the "Act") in reliance upon the private placement exemptions under Section 4(2)
of the Act.

Item 3. Defaults Upon Senior Securities

None.

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

None.

Item 5. Other Information

As a result of the Plan, as of the Effective Date of the Plan, the Company
adopted "fresh start" accounting, which reflects the payment or discharge of
certain debts in accordance with the plan. "Fresh start accounting" allows a
reorganized entity to reflect its reorganization value, which approximates its
fair value at the date of reorganization. In addition, the accumulated deficit
of the Company is eliminated and its capital structure is recast in conformity
with the Plan.

The Company continues to be in default under the terms of the Settlement
Agreement, dated December 31, 1999, between the Company, Gerald Wetzler and
certain other individuals. Representatives of the Company are engaged in
discussions with Mr. Wetzler in an attempt to resolve the Company's default
under the Settlement Agreement. There can be no assurance that a solution will
be reached. In the event that a resolution is not reached, Mr. Wetzler will
attempt to seize the assets of the Company or to have the Company transfer all
of his assets to him. The Company, or unsecured creditors of the Company, may
attempt to resist these efforts, however, this will negatively impact the
ability of the Company to obtain necessary financing. The Board of Directors has
authorized the Company to engage the firm of GTH Capital to assist in
discussions with Mr. Wetzler.

The Board of Directors has accepted the resignations of Jeffrey Yapp, Chairman
and Chief Executive Officer of the Company, and Barry Sandrew, President and
Chief Operating Officer of the Company. Subsequently, Messrs. Anthony Chan and
Jack Hoagland have resigned as directors of the Company. Porter Bibb remains as
the sole director of the Company.
<PAGE>   12
                        AMERICAN FILM TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


Item 6. Exhibits and Reports on Form 8-K

None.
<PAGE>   13

                                   SIGNATURES

In accordance with 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.

AMERICAN FILM TECHNOLOGIES, INC.

Date: November 15,  2000



By:    /s/ Porter Bibb                                         November 15, 2000
      -----------------
      Porter Bibb
      Director