<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 JULY 31, 2002

         [ ]      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)


                  100 W. BONANZA ROAD, LAS VEGAS, NEVADA 89106
                  --------------------------------------------
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                                 (702) 382-3385
                                 --------------
                           (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: 27,695,788
         SHARES.

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



<PAGE>

                             POWER TECHNOLOGY, INC.
                                      INDEX

<Table>
<S>                                                                          <C>
PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements:

Consolidated Balance Sheets ................................................   3

Consolidated Statements of Operations for the three
months and six months ended July 31, 2002, and 2001 ........................   4

Consolidated Statements of Cash Flows for the six
months ended July 31, 2002, and 2001 .......................................   5

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

Item 2. Management's Discussion and Analysis or Plan of Operations .........   7

PART II. OTHER INFORMATION

Item 1. Legal Proceedings ..................................................   8

Item 2. Changes in Securities ..............................................   8

Item 3. Defaults on Senior Securities ......................................   8

Item 4. Submission of Matters to a Vote of Security Holders ................   9

Item 5. Other Information ..................................................   9

Item 6. Exhibits and Reports on Form 8-K ...................................   9

Signatures .................................................................   9
</Table>



                                       2
<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                             POWER TECHNOLOGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                           CONSOLIDATED BALANCE SHEETS

<Table>
<Caption>
                                                            July 31, 2002      January 31, 2002
                                                            -------------      ----------------
                                                             (Unaudited)
<S>                                                         <C>                <C>
                          ASSETS
CURRENT ASSETS:
Cash and cash equivalents .............................     $      65,300      $         27,500
Employee advances .....................................             1,000                 1,000
Due from related party ................................           127,000               127,000
                                                            -------------      ----------------
TOTAL CURRENT ASSETS ..................................           193,300               155,543

FIXED ASSETS, NET .....................................            10,203                12,283

OTHER ASSETS:
Prepaid expenses ......................................            56,225                56,225
Patents ...............................................            78,500                78,500
                                                            -------------      ----------------
                                                            $     338,228      $        302,551
                                                            =============      ================

          LIABILITIES AND STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES:
Accounts payable ......................................     $      56,660      $         56,660
Advances from MikroDri ................................            25,000                25,000
Loans payable - related party .........................           817,090               850,343
                                                            -------------      ----------------
TOTAL CURRENT LIABILITIES .............................           898,750               932,003
                                                            -------------      ----------------
Convertible Notes .....................................           154,903                80,270
                                                            -------------      ----------------
                                                                1,053,653             1,012,273
                                                            -------------      ----------------

STOCKHOLDERS' (DEFICIT)
Common stock, $0.001 par value, 100,000,000 shares
authorized, 27,010,788 and 23,328 shares issued and
outstanding as of 7/31/02 and 1/31/02 .................            27,001                23,329
Additional paid-in capital ............................         7,083,533             5,719,651
(Deficit) accumulated during development stage ........        (7,825,969)           (6,452,702)
                                                            -------------      ----------------
                                                                 (715,425)             (709,722)
                                                            -------------      ----------------
                                                            $     338,228      $        302,551
                                                            =============      ================
</Table>



                                       3
<PAGE>

                             POWER TECHNOLOGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<Table>
<Caption>
                                                Three months ended    Three months ended    Six months ended    Six months ended
                                                  July 31, 2002         July 31, 2001        July 31, 2002       July 31, 2001
                                                ------------------    ------------------    ----------------    ----------------
<S>                                             <C>                   <C>                   <C>                 <C>
REVENUE .....................................   $              -0-    $              -0-    $            -0-    $            -0-

EXPENSES:
General administrative expenses .............               70,552                53,174             119,240             142,457
Research and development ....................               22,866                49,299              90,482              99,677
Consulting fees - related party .............              348,644               661,663           1,171,137           1,190,436
Depreciation and amortization ...............                1,040                 1,040               2,080               3,119
                                                ------------------    ------------------    ----------------    ----------------

OTHER INCOME (EXPENSES):
Interest expense ............................                 (327)                  -0-                (327)                -0-
Interest income .............................                  -0-                    73                 -0-                 583
Loss on foreign currency ....................                  -0-                   -0-                 -0-                 -0-
                                                ------------------    ------------------    ----------------    ----------------
NET (LOSS) ..................................   $         (443,429)   $         (765,103)   $     (1,383,266)   $     (1,435,106)
                                                ==================    ==================    ================    ================
Weighted average number of common shares
outstanding - basic and fully diluted .......           25,156,309            19,935,490          25,156,309    $     19,935,490
                                                ==================    ==================    ================    ================
NET (LOSS) PER SHARE - BASIC
AND FULLY DILUTED ...........................                (0.02)                (0.04)              (0.05)              (0.07)
                                                ==================    ==================    ================    ================
</Table>



                                       4
<PAGE>

                             POWER TECHNOLOGY, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<Table>
<Caption>
                                                                                                       June 3, 1996
                                                               Six months ended   Six months ended    (inception) to
                                                                July 31, 2002      July 31, 2001       July 31, 2002
                                                               ----------------   ----------------    --------------
<S>                                                            <C>                <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES

NET (LOSS) .................................................   $     (1,383,266)  $     (1,435,106)   $   (7,825,969)
Depreciation expense .......................................              2,080              3,119            15,717
Stock issued for consulting services - related party .......          1,135,474          1,190,436         3,456,955
Stock issued for interest expense ..........................                -0-                -0-            60,123
Stock issued to acquire patents ............................                -0-                -0-           (20,000)

ADJUSTMENTS TO RECONCILE NET (LOSS) TO NET CASH
(Used) by operating activities:
(Increase) in employee advances ............................                -0-             (1,000)           (1,000)
(Increase) decrease in due from related party ..............                -0-           (127,000)         (127,000)
(Increase) decrease in accounts receivable .................                -0-              4,801               -0-
(Increase) in prepaid expense ..............................                -0-                -0-           (56,225)
Increase in accounts payable ...............................                -0-            (11,382)           56,660
(Decrease) in accrued expenses .............................                -0-            (10,200)              -0-
                                                               ----------------   ----------------    --------------
NET CASH USED BY OPERATING ACTIVITIES ......................           (245,712)          (386,332)       (4,440,739
                                                               ----------------   ----------------    --------------

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from loans - related parties ......................                -0-            127,982           850,343
Principal payments to related parties ......................            (33,253)               -0-           (33,253)
Transfer (to) from MikroDri ................................                -0-              4,721            25,000
Purchase of equipment ......................................                -0-             (2,353)          (21,667)
Patent acquisition .........................................                -0-                -0-           (58,500)
                                                               ----------------   ----------------    --------------
NET CASH USED BY INVESTING ACTIVITIES ......................            (33,253)           130,350           761,923
                                                               ----------------   ----------------    --------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible debentures .......................             74,633                -0-           154,903
Issuance of common stock ...................................            242,089            238,650         3,589,213
                                                               ----------------   ----------------    --------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ..................            316,722            238,650         3,744,116
                                                               ----------------   ----------------    --------------
NET INCREASE IN CASH .......................................             37,757            (17,332)           65,300

Cash and equivalents - beginning ...........................             27,543             25,301               -0-
                                                               ----------------   ----------------    --------------
Cash and equivalents - ending ..............................   $         65,300   $          7,969    $       65,300
                                                               ================   ================    ==============

SUPPLEMENTAL DISCLOSURES:
Interest paid ..............................................                -0-                -0-               -0-
                                                               ================   ================    ==============
Income taxes paid ..........................................                -0-                -0-               -0-
                                                               ================   ================    ==============
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Number of shares issued for services .......................          3,708,958          1,778,745         8,321,788
                                                               ================   ================    ==============
Number of shares issued for debt conversion ................                -0-                -0-         2,084,000
                                                               ================   ================    ==============
Number of shares issued for interest expense ...............                -0-                -0-           171,780
                                                               ================   ================    ==============
Number of shares issued to acquire patents .................                -0-                -0-           200,000
                                                               ================   ================    ==============
</Table>



                                       5
<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
audited financial statements of the Company for the year ended January 31, 2002
and notes thereto included in the Company's Form 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 $7,825,969 during the period June 3,
1996 to July 31, 2002. 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 six months ended July 31, 2002 is $2,080.

NOTE 3 - RELATED PARTY TRANSACTIONS

         The Company had $25,000 of research and development fees advanced by
MikroDri, L.P., a related entity with common shareholders and management, as of
July 31, 2002. The Company will continue to perform research and development
procedures, which will be invoiced against the fee advancements.

         The Company rents a facility in Las Vegas, Nevada from Bonanza West
Properties, a partnership 50% owned by Alvin A. Snaper, a director and Vice
President of the Company. Rents for the six months ended July 31, 2002 totaled
approximately $12,000.

NOTE 4 - STOCKHOLDERS' EQUITY

      During the six months ended July 31, 2002, the Company issued 3,708,958
shares of its $0.001 par value common stock to various Company shareholders and
other individuals related to the Company for consulting services valued at
$1,135,474, the fair market value of the underlying shares on the date of
issuance.



                                       6
<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 (unaudited) sets forth certain operating
information regarding the Company:

<Table>
<Caption>
                                               SIX MONTHS ENDED JULY 31,            THREE MONTHS ENDED JULY 31,
                                             ------------------------------       ------------------------------
                                                     2002              2001               2002              2001
                                             ------------      ------------       ------------      ------------
<S>                                          <C>               <C>                <C>               <C>
Revenues ...............................     $          0      $          0       $          0      $          0
General and administrative expenses ....     $    119,240      $    142,457       $     70,552      $     53,174
Research and development ...............     $     90,482      $     99,667       $     22,866      $     49,299
Net income (loss) ......................     $ (1,383,266)     $ (1,435,106)      $   (443,429)     $   (765,103)
Net income (loss) per share ............     $       (.05)     $       (.07)
</Table>

SIX MONTHS ENDED JULY 31, 2002 COMPARED WITH SIX MONTHS ENDED JULY 31, 2001

         REVENUES. The Company had no revenues during the first six months of
2002 and 2001, and is in the development stage.

         GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative
expenses decreased approximately 16.3% to $119,240 in the six month period ended
July 31, 2002, from $142,457 in 2001. This decrease is principally attributable
to reduced activity in its research and development activities.

         RESEARCH AND DEVELOPMENT COSTS. Research and development costs
decreased approximately 9.2% during the six months period ended July 31, 2002,
to $90,482 compared to $99,677 during the first six months of 2001.

         RESULTS OF OPERATIONS. The net loss of the Company decreased to
$(1,383,266) during the six month period ended July 31, 2002, as compared with a
loss of $(1,435,106) during the same period of 2001, a decrease of approximately
3.6%, and was due primarily to the increase in the costs of consulting services
regarding its research and development activities and other consulting services.

THREE MONTHS ENDED JULY 31, 2002 COMPARED WITH THREE MONTHS ENDED JULY 31, 2001

         REVENUES. The Company had no revenues during the three months ended
July 31, 2002 and 2001, and is in the development stage.

         GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative
expenses increased approximately 32.7% to $70,552 in the three month period
ended July 31, 2002 from $53,174 in 2001. This increase is principally
attributable to an increase in its finance activities.

         RESEARCH AND DEVELOPMENT COSTS. Research and development costs
decreased approximately 46.4% during the three month period ended July 31,
2002, to $22,866 compared to $49,299 during 2001.

         RESULTS OF OPERATIONS. The net loss of the Company decreased to
$(443,429) during the three month period ended July 31, 2002, as compared with
a loss of $(765,103) during the same period of 2001, a decrease of
approximately 42%, and was due primarily to the decrease in the costs of
consulting services regarding its research and development activities and
other consulting services.



                                       7
<PAGE>

      CAPITAL EXPENDITURES, CAPITAL RESOURCES AND LIQUIDITY. The following
summary table (unaudited) presents comparative cash flows of the Company for the
periods indicated.

<Table>
<Caption>
                                                    SIX MONTHS ENDED JULY 31,
                                                  ------------------------------
                                                      2002              2001
                                                  ------------      ------------
<S>                                               <C>               <C>
Net cash used in operating activities .......     $   (245,712)     $   (386,332)
Net cash used in investing activities .......     $    (33,253)     $    130,350
Net cash provided by financing activities ...     $     37,757      $    (17,332)
</Table>

         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 of the
Company, and by short term loans.

         At July 31, 2002, the Company had current assets of $193,300 and
current liabilities of $898,750, resulting in a working capital deficit of
$705,450, as compared to a working capital deficit of $776,460 at January 31,
2002.

         Net cash used in operating activities decreased to $(245,712) for the
six months ended July 31, 2002, from $(386,332) for the six months ended July
31, 2001, a difference of $140,620. The 36.4% decrease in net cash used in
operating activities was primarily attributable to an increase in the costs for
consulting services regarding its research and development regarding its battery
and other services.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

         None.

ITEM 2. CHANGES IN SECURITIES

         The following sets forth a description of all sales and issuances of
the Company's securities during the period covered by this report. With respect
to each issuance, the Company relied upon one or more exemptions from
registration under the Securities Act of 1933, including Section 4(2) of the
Securities Act of 1933 and Regulation S with respect to certain sales to
non-U.S. persons, as defined by Regulation S.

         During February 2002, the Company issued 108,000 shares of its Common
Stock to Gist Inc for its consulting services in reliance upon Section 4(2)
under the Securities Act of 1933.

         During March 2002, the Company issued 165,500 shares of its Common
Stock to Dorotea Kleva regarding the conversion of a convertible note in
reliance upon Regulation S under the Securities Act of 1933.

         During April 2002, the Company issued 43,000 shares of its Common Stock
to IC Capital and 200,000 shares to Wolf Meyerfeld for consulting services in
reliance upon Section 4(2) under the Securities Act of 1933.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         None.



                                       8
<PAGE>

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

         (a) EXHIBITS

         10.      Material Contracts

                  10.1     Agreement with the Swedish Consortium dated August
                           26, 2002.

                  99.1     Certification pursuant to 18 U.S.C. Section 1350

         (b) REPORTS ON FORM 8-K

             No reports on Form 8-K were filed by the Company during the fiscal
quarter ended July 31, 2002.



                                   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: September 16, 2002                    By: /s/ Lee A. Balak
                                               ---------------------------------
                                            Lee A. Balak, President, Chief
                                            Financial Officer, and Principal
                                            Accounting Officer



                                       9
<PAGE>

                                INDEX TO EXHIBITS

<Table>
<Caption>
                EXHIBIT
                NUMBER     DESCRIPTION
                ------     -----------
<S>                        <C>
                  10.1     Agreement with the Swedish Consortium dated August
                           26, 2002.

                  99.1     Certification pursuant to 18 U.S.C. Section 1350
</Table>