<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2004

             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

            FOR THE TRANSITION PERIOD FROM ___________ TO ___________

            COMMISSION FILE NUMBER: 0-24857

                             POWER TECHNOLOGY, INC.
                     (EXACT NAME OF SMALL BUSINESS ISSUER AS
                            SPECIFIED IN ITS CHARTER)

            NEVADA                                      88-0395816
            ------                                      ----------
(STATE OR OTHER JURISDICTION OF            (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)

               15 OCEAN VIEW ROAD, LIONS BAY, B.C. V0N 2E0, CANADA
               ---------------------------------------------------
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                                 (604) 925-0716
                                 --------------
                           (ISSUER'S TELEPHONE NUMBER)

                                 NOT APPLICABLE
              ----------------------------------------------------
              (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
                          IF CHANGED SINCE LAST REPORT)

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

         CHECK WHETHER THE REGISTRANT FILED ALL DOCUMENTS AND REPORTS REQUIRED
TO BE FILED BY SECTION 12, 13 OR 15(D) OF THE EXCHANGE ACT AFTER THE
DISTRIBUTION OF SECURITIES UNDER A PLAN CONFIRMED BY A COURT. YES [ ] NO [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         STATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES
OF COMMON EQUITY, AS OF THE LAST PRACTICABLE DATE: __________ SHARES AS OF JUNE
13, 2004.

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES [ ] NO [X]



<PAGE>

                             POWER TECHNOLOGY, INC.

                                      INDEX

PART I.   Financial Information

Item 1.   Consolidated Financial Statements

          Consolidated Balance Sheet as of April 30, 2004..................... 3

          Consolidated Statements of Operations for the three
          months ended April 30, 2004 and 2003................................ 4

          Consolidated Statement of Cash Flows for the three
          months ended April 30, 2004 and 2003................................ 5

          Notes to the Consolidated Financial Statements...................... 6

Item 2.   Management's Discussion and Analysis or Plan of Operation........... 8

Item 3.   Controls and Procedures.............................................10

PART II.  Other Information...................................................10

Item 1.   Legal Proceedings...................................................10

Item 2.   Changes in Securities...............................................10

Item 3.   Defaults on Senior Securities.......................................10

Item 4.   Submission of Matters to a Vote of Security Holders.................10

Item 5.   Other Information...................................................10

Item 6.   Exhibits and Reports on Form 8-K....................................11

          Signatures..........................................................11

                                       2



<PAGE>

                                     PART I
                              FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements

                             POWER TECHNOLOGY, INC.
                          (a Development Stage Company)
                           Consolidated Balance Sheet
                                   (Unaudited)

                                                                      APRIL 30,
                                                                        2004
                                                                    ------------
Assets

Current assets:
    Cash and equivalents                                            $        58
    Employee advances                                                     1,000
                                                                    ------------
      Total current assets                                                1,058

Fixed assets, net                                                         3,963

Other assets:
    Patents                                                              78,500

                                                                    ------------
                                                                    $    83,521
                                                                    ============

LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current liabilities:
    Accounts payable                                                $    58,273
    Loans payable                                                        79,108
    Loans payable - related party                                       200,810
                                                                    ------------
      Total current liabilities                                         338,191
                                                                    ------------

                                                                        338,191
                                                                    ------------

Stockholders' (deficit):
    Preferred stock, $0.01 par value, 1,000,000 shares
      authorized, none issued or outstanding                                 --
    Common stock, $0.001 par value, 100,000,000 shares
      authorized, 51,424,488 shares issued and outstanding               51,425
    Additional paid-in capital                                        8,934,796
    (Deficit) accumulated during development stage                   (9,240,891)
                                                                    ------------
                                                                       (254,671)
                                                                    ------------

                                                                    $    83,521
                                                                    ============

   The accompanying notes are an integral part of these financial statements.

                                       2


<PAGE>
<TABLE>

                                        POWER TECHNOLOGY, INC.
                                     (a Development Stage Company)
                                 Consolidated Statement of Operations
                          for the three months ended April 30, 2004 and 2003
                    and for the period June 3, 1996 (inception) to April 30, 2004
                                              (Unaudited)
<CAPTION>

                                                           FOR THE THREE MONTHS ENDED    JUNE 3, 1996
                                                                   APRIL 30,            (INCEPTION) TO
                                                         -----------------------------     APRIL 30,
                                                             2004            2003            2004
                                                         -------------   -------------   -------------
<S>                                                      <C>             <C>             <C>

Consulting Revenue                                       $         --    $         --    $     26,663
                                                         -------------   -------------   -------------

Expenses:
   General administrative expenses                             40,095          11,343       2,732,398
   Research & development - related party                          --              --       1,350,083
   Consulting fees                                             97,500              --         254,000
   Consulting fees - related party                             22,500          95,200       4,687,522
   Loss from impairment of related party advances                  --              --         127,000
   Depreciation and amortization                                1,040           1,040          21,957
                                                         -------------   -------------   -------------
                                                              161,135         107,583       9,172,960

Other income (expense):
   Interest expense                                            (6,258)             --         (87,199)
   Interest income                                                 --               1             779
   Loss on foreign currency                                        --              --          (1,916)
                                                         -------------   -------------   -------------

Net (loss)                                               $   (167,393)   $   (107,582)   $ (9,234,633)
                                                         =============   =============   =============

Weighted average number of
   common shares outstanding - basic and fully diluted     49,424,488      37,980,988
                                                         =============   =============

Net (loss) per share - basic and fully diluted           $      (0.00)   $      (0.00)
                                                         =============   =============

              The accompanying notes are an integral part of these financial statements.

                                                  3
</TABLE>



<PAGE>
<TABLE>

                                         POWER TECHNOLOGY, INC.
                                     (a Development Stage Company)
                                 Consolidated Statements of Cash Flows
                           for the three months ended April 30, 2004 and 2003
                     and for the period June 3, 1996 (inception) to April 30, 2004
                                              (Unaudited)
<CAPTION>

                                                            FOR THE THREE MONTHS ENDED    JUNE 3, 1996
                                                          -----------------------------    TO APRIL 30,
                                                              2004            2003            2004
                                                          -------------   -------------   -------------
<S>                                                       <C>             <C>             <C>
Cash flows from operating activities
Net (loss)                                                $   (167,393)   $   (107,582)   $ (9,234,633)
Adjustments to reconcile net (loss) to net cash
   (used) by operating activities:
   Depreciation expense                                          1,040           1,040          21,957
   Loss from impairment of related party advances                   --              --         127,000
   Stock issued for consulting services                         97,500              --         254,000
   Stock issued for consulting services - related party         22,500          95,200       4,680,121
   Stock issued for interest expense                                --              --          60,123
   Stock issued to acquire patents                                  --              --         (20,000)
   Increase (decrease) in accounts payable                          --          (1,365)         58,273
                                                          -------------   -------------   -------------
Net cash (used) by operating activities                        (46,353)        (12,707)     (4,053,159)
                                                          -------------   -------------   -------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Checks issued in excess of funds available                       --             731              --
   Proceeds from loans                                              --          10,359         780,086
   Proceeds (payments) on loans - related party                 46,198           1,500         200,810
   Purchase of equipment                                            --              --         (21,667)
   Patent acquisition                                               --              --         (58,500)
                                                          -------------   -------------   -------------
Net cash provided by investing activities                       46,198          12,590         900,729
                                                          -------------   -------------   -------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from convertible debentures                             --              --         175,010
   Issuance of common stock                                         --              --       2,977,478
                                                          -------------   -------------   -------------
Net cash provided by financing activities                           --              --       3,152,488
                                                          -------------   -------------   -------------
Net increase (decrease) in cash                                   (155)           (117)             58

Cash and equivalents - beginning                                   213             153              --
                                                          -------------   -------------   -------------
Cash and equivalents - ending                             $         58    $         36    $         58
                                                          =============   =============   =============

Supplemental disclosures:
   Interest paid                                          $         --    $         --    $         --
                                                          =============   =============   =============
   Income taxes paid                                      $         --    $         --    $         --
                                                          =============   =============   =============
   Non-cash investing and financing activities:
     Number of shares issued for services                    4,000,000       2,286,500      21,165,250
                                                          =============   =============   =============
     Number of shares issued for debt conversion                    --              --      12,377,958
                                                          =============   =============   =============
     Number of shares issued for interest expense                   --              --         171,780
                                                          =============   =============   =============
     Number of shares issued to acquire patents                     --              --         200,000
                                                          =============   =============   =============

               The accompanying notes are an integral part of these financial statements.

                                                   4
</TABLE>



<PAGE>

                             POWER TECHNOLOGY, INC.
                          (A Development Stage Company)
                                      NOTES

NOTE 1 - Basis of Presentation and Ability to Continue as a Going Concern

The consolidated interim financial statements included herein, presented in
accordance with United States generally accepted accounting principles and
stated in US dollars, 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.

These statements reflect all adjustments, consisting of normal recurring
adjustments, which, in the opinion of management, are necessary for fair
presentation of the information contained therein. It is suggested that these
consolidated interim financial statements be read in conjunction with the
financial statements of the Company for the year ended January 31, 2004 and
notes thereto included in the Company's 10-KSB annual report. The Company
follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual
results.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern which contemplates the recoverability
of assets and the satisfaction of liabilities in the normal course of business.
As noted above, the Company is in the development stage and, accordingly, has
not yet generated revenues from operations. Since its inception, the Company has
been engaged substantially in financing activities and developing its product
line, incurring substantial costs and expenses. As a result, the Company
incurred net losses of $9,240,891 during the period June 3, 1996 to April 30,
2004. In addition, the Company's development activities since inception have
been financially sustained by debt and capital contributions from its affiliates
and others.

The ability of the Company to continue as a going concern is dependent upon its
ability to raise additional capital from the sale of common stock and,
ultimately, the achievement of significant operating revenues. The accompanying
financial statements do not include any adjustments that might be required
should the Company be unable to recover the value of its assets or satisfy its
liabilities.

NOTE 2 - FIXED ASSETS

Depreciation expense for the three months ended April 30, 2004 is $1,040.

NOTE 3 - RELATED PARTY TRANSACTIONS

The Company was loaned $46,198 by its Chief Executive Officer and largest
shareholder, Lee A. Balak, during the three months ended April 30, 2004. The
loan is non-interest bearing and due on demand.

The Company accrued $35,700 in salary expense to its Chief Executive Officer
during the three months ended April 30, 2004.

                                       6



<PAGE>

NOTE 4 - STOCKHOLDERS' EQUITY

During the three months ended April 30, 2004, the Company issued 3,250,000
shares of its $0.001 par value common stock to various individuals for
consulting services valued at $97,500.

During the three months ended April 30, 2003, the Company issued 750,000 shares
of its $0.001 par value common stock to a shareholder for legal services valued
at $22,500.

NOTE 5 - SUBSEQUENT EVENTS

On May 11, 2004, the Company's Board of Directors ratified and approved the
following:

1.       All previous loans and advances to the Company during the fiscal year
         ended January 31, 2004 from Lee A. Balak, a director and Company
         president, to be evidenced by a promissory note to be dated December
         31, 2003, in the amount of $65,423 with interest a the rate of 8% and
         due upon demand.

2.       That the officers of the Company are authorized and directed to issue
         to Lee A. Balak 4,037,485 restricted shares of the Company's $0.001 par
         value common stock as payment for the promissory note in the amount of
         $65,423 plus interest of $5,233.

3.       That the officers of the Company are directed to issue Lee A. Balak
         10,676,570 restricted shares of the Company's $0.001 par value common
         stock as payment for previous loans to the Company in the principal
         amount of $173,000 plus interest of $13,840.

4.       All previous loans and advances to the Company during fiscal year ended
         January 31, 2004 from Global Alliance Partners Ltd., to be evidenced by
         a promissory note to be dated December 31, 2003, in the amount of
         $78,394 and non-interest bearing.

5.       That the officers of the Company are authorized and directed to issue
         to Global Alliance Partners Ltd. 4,479,657 restricted shares of $0.001
         par value common stock as payment for the promissory note in the amount
         of $78,394.

6.       That the officers of the Company are directed to issue to Lee A. Balak
         8,571,428 restricted shares of the Company's $0.001 par value common
         stock in payment of his annual salary for fiscal year ended January 31,
         2004 in the amount of $150,000.

                                       7



<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

GENERAL

         Power Technology, Inc. (the "Company), a Nevada corporation, was
incorporated on June 3, 1996. However the Company did not conduct any
significant operations until March 1998 when it acquired all of the issued and
outstanding capital stock and assets of PowerTek Technology Corporation, Inc.
(formerly called Power Technology, Inc.) which is presently a wholly-owned
subsidiary of the Company. The Company changed its corporate name from "Zepplin
Production Corporation" to Power Technology, Inc. during March 1998 to reflect
the change in the purposes and nature of its business.

         The Company is a research and development company. It is presently
engaged in research and development activities regarding: (1) batteries for the
automotive and electric car industries, (2) electronic sensors, and (3) pipeline
connection technology.

RESULTS OF OPERATIONS

         The following table sets forth certain operating information regarding
the Company:

                                                    THREE MONTHS ENDED
                                                         APRIL 30
                                                 -------------------------
                                                    2004           2003
                                                 ----------     ----------
                                                        (unaudited)

         Revenues                                $     -0-      $     -0-

         General and administrative expenses     $  40,095      $  11,343

         Research and Development                $     -0-      $     -0-

         Consulting Fees                         $  97,500      $     -0-

         Consulting Fees - Related Party         $  22,500      $  95,200

         Net income (loss)                       $(167,393)     $(107,582)

         Net income (loss) per share             $   (0.00)     $   (0.00)

Three months ended April 30, 2004 compared with three months ended April 30,
----------------------------------------------------------------------------
2003
----

         REVENUES. The Company had no revenues during the first three months of
2004 and 2003, and is in the development stage.

         GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative
expenses increased approximately 350% to $40,095 in the three month period ended
April 30, 2004, from $11,343 in 2003. This increase is principally attributable
to the accrual of salary due to Lee A. Balak, the President of the Company.

         RESEARCH AND DEVELOPMENT COSTS. Research and development costs were
negligible during the first three months of fiscal 2004 and during the first
three months of 2003 because research and development was suspended due to lack
of capital.

                                       8



<PAGE>

         RESULTS OF OPERATIONS. The net loss of the Company increased to
$167,393 during the three month period ended April 30, 2004, as compared with a
loss of $107,512 during the same period of 2003, an increase of approximately
64.2%, and was due primarily to the increase in general and administrative
expenses and consulting fees and lack of revenues.

CAPITAL EXPENDITURES, CAPITAL RESOURCES AND LIQUIDITY

         The following summary table (unaudited) presents comparative cash flows
of the Company for the periods indicated.

                                                         THREE MONTHS ENDED
                                                              APRIL 30
                                                      -------------------------
                                                         2004           2003
                                                      ----------     ----------
                                                             (Unaudited)

Net cash used in operating activities                 $ (46,353)     $ (12,707)

Net cash provided in investing activities             $ (46,198)     $  12,590

Net cash provided by financing activities             $    (155)     $    (117)

         CAPITAL EXPENDITURES. The Company did not incur any material capital
expenditures for office equipment, office furniture or other fixed assets during
the three month periods ended April 30, 2004 and 2003, respectively.

         LIQUIDITY AND CAPITAL RESOURCES. The Company's capital resources have
historically been provided by the sale of its Common Stock, the exercise of
warrants and options, conversion of convertible debt into common stock, and by
short term loans.

         The Company intends to raise additional capital and reduce debt through
the sale or exchange of its Common Stock or other securities to provide
additional working capital to fund future operations.

         The Company will require substantial additional financing to complete
the capitalization of its business plan. The additional financing will be used
primarily for payment of liabilities and for expansion of further research and
development and marketing. The Company can give no assurance that it will
successfully negotiate or obtain additional financing, or that it will obtain
financing on terms favorable or acceptable to it. The Company's ability to
obtain additional capital depends on market conditions, the global economy and
other factors outside its control If the Company does not obtain adequate
financing, or such financing is not available on acceptable terms, the Company's
ability to satisfy its liabilities, finance its expansion, develop or enhance
its products, services, or respond to competitive pressures would be
significantly limited. The Company's failure to secure necessary financing could
have a material adverse effect on its business, prospects, financial condition,
and results of operations.

         At April 30, 2004, the Company had current assets of $1,058 and current
liabilities of $338,191, resulting in a working capital deficit of $337,133, as
compared to a working capital deficit of $290,780 at January 31, 2004.

         Net cash used in operating activities increased to $46,198 for the
three months ended April 30, 2004, from $12,590 for the three months ended April
30, 2003, a difference of $33,608. The 367% increase in net cash used in
operating activities was primarily attributable to the increase in general
administrative expenses and consulting fees.

                                       9



<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES

         EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Company's Chief
Executive Officer and principal financial officer, after evaluation the
effectiveness of disclosure controls and procedures of the Company [as defined
in the Securities Exchange Act of 1934 Rule 13a-14(c) and 15d-14(c)] as of the
date within 90 days of the filing date of this report on Form 10-QSB for its
fiscal year ended January 31, 2004, have concluded that as of the evaluation
date, the Company's disclosure controls and procedures were adequate and
effective to ensure that material information relating to the Company and the
Company's consolidated subsidiary would be made known to him by others within
those entities, particularly during the period in which this quarterly report on
Form 10-QSB was being prepared.

         CHANGES IN INTERNAL CONTROLS. There were no significant changes in the
Company's internal controls or in other factors that could significantly affect
its disclosure controls and procedures subsequent to the evaluation date, nor
any significant deficiencies or material weaknesses in such disclosure controls
and procedures requiring corrective actions. As a result, no corrective actions
were taken.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The Company filed a civil action against Mr. Alvin A. Snaper, a former
director and officer of the Company, and against Neo-Dyne Research, Inc.
("Neo-Dyne"), his research and development company, based upon allegations of
breach of fiduciary relationship and breach of contract, and seeking an
injunction, declaratory relief and the turnover of Company property. Mr. Snaper
and Neo-Dyne filed an answer and asserted counterclaims alleging fraud and
misrepresentation, breach of contract, and intentional interference with
prospective economic advantage, and seeking an injunction and declaratory
relief. The litigation involves the ownership and rights to the battery
technology and patent rights of the Company. Because the principal business
operations of the Company has involved research and development of its battery
technology, the rights to continue its research and development activities
regarding batteries and its rights to license and market such technology is
significantly important to the Company and its future business operations. The
litigation is in the discovery stage and it is not reasonably possible to fully
evaluate and predict the outcome of such litigation.

ITEM 2.  CHANGES IN SECURITIES

         The Company did not issue any shares of restricted common stock during
the period covered by this report.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None

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

         None

ITEM 5.  OTHER INFORMATION

         Not applicable.

                                       10



<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)      Exhibits.
                  ---------

                  Exhibit  10.1   Consulting Agreement dated April 15, 2004 with
                                  Tim J. Connolly

                  Exhibit  99.1   Certification Pursuant to 18 U.S.C. ss.1350 as
                                  Adopted Pursuant to Section 906 of the
                                  Sarbanes-Oxley Act of 2002

                  Exhibit  99.2   Certification

         (b)      Reports on Form 8-K.
                  --------------------

                  No reports on Form 8-K were filed by the Company during the
fiscal quarter ended April 30, 2003.

                                   SIGNATURES

         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.

                                           POWER TECHNOLOGY, INC.

Date:    June 14, 2004                     By:  /s/ Lee A. Balak
                                              ----------------------------------
                                                    Lee A. Balak, President,
                                                    Chief Financial Officer, and
                                                    Principal Accounting Officer

                                       11