<PAGE>   1

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

                                  FORM 10-QSB

(Mark One)

/X/      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998.

/ /      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 FOR THE TRANSITION FROM ___________ TO __________.


For the transition period from ____________ to _______________

                         COMMISSION FILE NUMBER 0-2686


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


                      NEVADA                               95-4396848
-------------------------------------------------         -----------------
(State or other jurisdiction of incorporation           (I.R.S. Employer
or organization)                                       Identification No.)


   126 West Maple Avenue, Monrovia, California                  91016
-------------------------------------------------         ------------------
(Address of principal executive offices)                    (Zip Code)


Registrant's telephone number, including area code         626-358-5995
                                                        -------------------

                                      N/A
     ---------------------------------------------------------------------
     (Former name, former address and former fiscal year, if changed since
     last report.)

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 / /    No /X/

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: At September 30, 1998, there were
outstanding 18,611,228 shares of the Registrant's Common Stock, $.001 par value.

        Transitional Small Business Disclosure Format:  Yes / /    No /X/
<PAGE>   2
                         [HAROLD Y. SPECTOR LETTERHEAD]







To the Board of Directors
Quadratech, Inc.
Monrovia, California


I have compiled the accompanying consolidated balance sheets of Quadratech, Inc.
(a Nevada corporation) and its wholly-owned subsidiary, Oil Scavenger Absorbent,
Inc. (a California corporation), as of September 30, 1998 and 1997, and the
related consolidated statements of operations and accumulated deficit, and cash
flows for the nine months then ended, in accordance with Statements on Standards
for Accounting and Review Services issued by the American Institute of Certified
Public Accountants.

A compilation is limited to presenting in the form of financial statements
information that is the representation of management. I have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in the Note 10
to the consolidated financial statements, the Company's significant operating
losses, working capital deficiency and deficit in stockholders' equity raise
substantial doubt about their abilities to continue as a going concern. The
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.



/s/ HAROLD Y. SPECTER
---------------------

Pasadena, California
October 26, 1998
<PAGE>   3

                          QUADRATECH, INC. & SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                          September 30, 1998 and 1997
                                   (Unaudited)


                                     ASSETS
<TABLE>
<CAPTION>

                                             1998              1997
                                        ------------       ------------
<S>                                      <C>               <C>
Current Assets
  Cash                                   $    13,863       $     7,045
  Account Receivables, net of allowance
   for bad debt of $0 and $0                  12,760            61,409
  Other Receivables                            2,000            30,599
  Inventories                                  3,838            41,780
  Prepaid Expenses                                 -             5,832
                                        ------------       ------------
    Total Current Assets                      32,461           146,665
                                        ------------       ------------
Property and Equipment
  Furniture and Equipment                     83,153            82,702
  Plant and Equipment                         66,900            71,018
  Motor Vehicles                               8,818            21,531
  Leasehold Improvements                           -            74,401
                                        ------------       ------------
                                             158,871           249,652
  Less: Accumulated Depreciation             (97,789)          (89,595)
                                        ------------       ------------

    Total Property and Equipment              61,082           160,057
                                        ------------       ------------
Other Assets
  Patents, Marks and Copyrights, net of
   accumulated amortization of $2,664
   in 1998 and $1,806 in 1997                 12,881            13,739
  Deposits                                     5,325            26,626
                                        ------------       ------------
    Total Other Assets                        18,206            40,365
                                        ------------       ------------
TOTAL ASSETS                             $   111,749       $   347,087
                                         ===========       ===========
</TABLE>

                 See accompanying notes and accountant's report
                                                                              2
<PAGE>   4

                          QUADRATECH, INC. & SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                             March 31, 1998 and 1997
                                   (Unaudited)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                            1998              1997
                                         -----------       ------------
<S>                                      <C>               <C>
Current Liabilities
  Accounts Payable                       $    11,886       $   138,517
  Accrued Expenses                             8,512            54,524
  Notes Payable, current portion             241,500           307,445
                                         -----------       ------------
    Total Current Liabilities                261,898           500,486
                                         -----------       ------------
Long-Term Debt, net of current                50,500           102,000
                                         -----------       ------------
    Total Liabilities                        312,398           602,486
                                         -----------       ------------
Stockholders' Equity
  Common Stock, $.001 par value,
   50,000,000 shares authorized;
   18,611,228 shares issued and
   outstanding in 1998, and 13,093,974
   shares in 1997                             18,611            13,094
  Paid-in Capital                          2,884,207         2,316,679
  Accumulated Deficit                     (3,103,467)       (2,585,172)
                                         -----------       ------------
    Total Stockholders' Equity (Deficit)    (200,649)         (255,399)
                                         -----------       ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                                  $   111,749       $   347,087
                                         ===========       ===========
</TABLE>
                 See accompanying notes and accountant's report

                                                                              3
<PAGE>   5

                          QUADRATECH, INC. & SUBSIDIARY
         CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICITS
               For Nine Months ended September 30, 1998 and 1997
                                   (Unaudited)

<TABLE>
<CAPTION>
                                             1998              1997
                                         -----------       -----------
<S>                                      <C>               <C>
SALES                                    $    46,557       $    98,925
Less: Discount Taken                            (130)           (1,343)
                                         -----------       -----------
NET SALES                                     46,427            97,582

COST OF SALES - SCHEDULE A                    38,272            75,283
                                         -----------       -----------
GROSS PROFIT                                   8,165            22,299

OPERATING EXPENSES - SCHEDULE B              209,053           289,913
                                         -----------       -----------
INCOME (LOSS) FROM OPERATIONS               (200,898)         (267,614)
                                         -----------       -----------
OTHER INCOME (EXPENSES)
  Interest Income                                 32               227
  Other Income                                   289            73,249
  Gain (Loss) on Disposal of Assets            1,087                 -
  Depreciation and Amortization              (21,498)          (27,411)
  Interest Expenses                          (14,855)          (14,719)
  Penalties and Late Charges                    (210)                -
  Officer's Salaries                         (21,750)          (39,196)
                                         -----------       -----------
    Total Other Income (Expenses)            (56,905)           (7,850)
                                         -----------       -----------
NET INCOME (LOSS) BEFORE TAXES              (257,803)         (275,464)

PROVISION FOR INCOME TAXES                       800               800
                                         -----------       -----------
NET INCOME (LOSS)                           (285,603)         (276,264)

ACCUMULATED DEFICITS
  Beginning Balance                       (2,850,622)       (2,308,908)
  Prior year adjustments                       5,758                 -
                                         -----------       -----------
  Ending Balance                         $(3,103,467)      $(2,585,172)
                                         ===========       ===========
NET (LOSS) PER SHARE                     $(.016)           $(.021)
                                         ======            ======
WEIGHTED AVERAGE SHARES OUTSTANDING      16,541,964        13,093,974
                                         ===========       ===========
</TABLE>

                 See accompanying notes and accountant's report

                                                                             4
<PAGE>   6

                          QUADRATECH, INC. & SUBSIDIARY
                                  COST OF SALES
               For Nine Months ended September 30, 1998 and 1997
                                   (Unaudited)

                                                                      SCHEDULE A
<TABLE>
<CAPTION>

                                            1998              1997
                                          -------          --------
 <S>                                      <C>              <C>
COST OF SALES
  Beginning Inventory                     $ 3,838          $ 41,780
  Purchases                                14,138            25,251
  Production Salaries                      23,070            48,730
  Warehouse Supplies                        1,064               243
  Freight-in                                    0             1,059
                                          -------          --------
                                           42,110           117,063
  Less: Ending Inventory                   (3,838)          (41,780)
                                          -------          --------
    Total Cost of Sales                   $38,272          $ 75,283
                                          =======          ========
</TABLE>

                 See accompanying notes and accountant's report

                                                                             5
<PAGE>   7

                          QUADRATECH, INC. & SUBSIDIARY
                               OPERATING EXPENSES
               For Nine Months ended September 30, 1998 and 1997
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            SCHEDULE A
                                             1998              1997
                                         -----------       ------------
<S>                                      <C>               <C>
OPERATING EXPENSES
  Accounting                             $    21,015       $     5,898
  Advertising                                  2,004            10,567
  Bank and Finance Charges                     1,413             5,803
  Car Allowances and Expenses                  8,505             3,609
  Commissions                                  5,140            22,886
  Consulting                                  67,618                 -
  Contributions                                    -                74
  Customer and Public Relations                   11             6,260
  Directors' Meetings                            630                 -
  Dues and Subscriptions                         245             1,741
  Employee Benefits                                -             1,449
  Entertainment                                1,576             2,794
  Equipment Rental                               265             9,235
  Freight and Postage                            321             2,556
  Insurance                                   16,416             5,841
  Legal and Professional                      10,311            16,517
  Licenses & Permits                             420                 -
  Maintenance                                  3,246            14,562
  Office Supplies                              2,417             7,983
  Operating Supplies                               -               493
  Other Expenses                                 584             1,709
  Outside Services                               110             3,425
  Parking                                         22                 -
  Payroll Service Fees                         1,439                 -
  Payroll Taxes                                6,654             9,652
  Printing and Reproduction                      157                 -
  Rent                                         7,168            68,000
  Research and Development                       600                92
  Salaries and Wages                          22,552            32,616
  Selling Expenses                               443                 -
  Shipping                                     2,048             7,424
  Supplies                                        97               250
  Taxes - Property                             2,523               694
  Telephone                                   11,879            22,975
  Temporary Labor                              1,396                 -
  Trade Shows                                  3,063             6,487
  Travel                                       3,415             1,797
  Utilities                                    3,350            16,524
                                         -----------       ------------
    Total Operating Expenses             $   209,053       $   289,913
                                         ===========       ============
</TABLE>

                 See accompanying notes and accountant's report

                                                                              6
<PAGE>   8

                          QUADRATECH, INC. & SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 Nine Months ended September 30, 1998 and 1997
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                1998            1997
                                            -----------    ------------

<S>                                         <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Income (Loss)                         $  (258,603)    $  (276,264)
  Adjustments to reconcile net loss to net
   cash provided by operating activities
   Depreciation and amortization                 21,498          27,411
   Gain on Disposal of Assets                    (1,087)
   Prior year adjustments                         5,758               -
  (Increase) Decrease in:
      Accounts Receivable                        (7,983)        (39,743)
      Other Receivables                          (2,000)          3,777
      Deposits                                   (1,200)         (1,000)
   Increase (Decrease) in:
      Accounts Payable                          (43,299)         49,185
      Accrued Expenses                           (1,538)        (73,971)
                                             -----------    -----------

NET CASH (USED) BY OPERATING ACTIVITIES        (288,454)       (318,159)
                                             -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of Equipment                            (451)         (6,002)
  Disposal of Equipment                           6,500               -
                                             -----------    -----------
NET CASH PROVIDED BY INVESTING ACTIVITIES         6,049          (6,002)
                                             -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Increase in Paid-in Capital                    28,668         132,500
  Net Proceeds from Notes Payable               218,000         192,183
                                             -----------    -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES       246,668         324,683
                                             -----------    -----------
NET INCREASE (DECREASE) IN CASH                 (35,737)            522

BEGINNING OF PERIOD                              49,600           6,523
                                             -----------    -----------
END OF PERIOD                               $    13,863     $     7,045
                                            ===========     ===========
SUPPLEMENTAL DISCLOSURES:
  Cash Paid During the Period for:
     Interest                               $     3,090     $         0
                                            ===========     ===========
     Income Tax                             $         0     $         0
                                            ===========     ===========

  Schedule of Noncash Investing and Financing Activities:
    In 1998, issuance of stocks for:
      Accounts Payable                                      $    11,475
                                                            ===========
      Notes Payable and Accrued Interest                    $   521,900
                                                            ===========
    Paid-in Capital for accounts payable                    $    11,000
                                                            ===========
</TABLE>

                 See accompanying notes and accountant's report


                                                                             7
<PAGE>   9

                          QUADRATECH, INC. & SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 Nine Months ended September 30, 1998 and 1997


NOTE 1 - GENERAL

Quadratech, Inc. ("the Company") was formed under the laws of Nevada on
February 4, 1994.

Quadratech, Inc., and its wholly-owned subsidiary, Oil Scavenger Absorbent, Inc.
("OSA", a California corporation formed in August, 1993), was established to
offer significant solutions for certain major environmental problems from the
development and manufacturing a range of environmentally safe bio-degradable
products.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company uses the accrual basis of accounting in accordance with generally
accepted accounting principles.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiary, OSA, after elimination of all material
intercompany accounts and transactions.

Use of estimates

The preparation of the accompanying consolidated financial statements in
conformity with generally accepted accounting principles requires management to
make certain estimates and assumptions that directly affect the results of
reported assets, liabilities, revenue, and expenses. Actual results may differ
from these estimates.

Cash Equivalents

The Company considers all highly liquid debt instruments with an original
maturity of three months or less to be cash equivalents. As of September 30,
1998 and 1997, there were no cash equivalents.

The Company prepares its consolidated statements of cash flows using the
indirect method as defined under Financial Accounting Standards Board Statement
No. 95.

Revenue Recognition

Revenue from sales is recognized when products are shipped and accepted by the
customer.

Accounts Receivable

The allowance for bad debts is based on management's evaluation of outstanding
accounts receivable at the end of each month. There was no bad debt expense
neither for 1998 nor 1997.


                                                                             8
<PAGE>   10

                          QUADRATECH, INC. & SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 Nine Months ended September 30, 1998 and 1997


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventories

Costs incurred for materials, technology and shipping are capitalized as
inventories and charged to cost of sales when revenue is recognized.

Inventories consist of finished goods and are stated at the lower of cost or
market, using the first-in, first-out method.

Property and Equipment

Property and Equipment are valued at cost. Maintenance and repair costs are
charged to expenses as incurred. Depreciation is computed on the straight-line
and accelerated methods based on the estimated useful lives of the assets.
Depreciation expense was $20,854 and $26,767 for 1998 and 1997, respectively.

Intangible Assets

Patents, marks and copyrights are capitalized and amortized over eighteen years
using the straight-line method.

Research and Development

Research and development costs are expensed as incurred.

Income Taxes

The Company accounts income taxes in accordance with Financial Accounting
standards Board Statement No. 109.

Reclassification

Certain reclassification have been made to the 1997 consolidated financial
statements to conform with the 1998 consolidated financial statement
presentation. Such reclassification had no effect on net loss as previously
reported.


NOTE 3 - NOTES PAYABLE

<TABLE>
<CAPTION>
                                           1998         1997
                                        ----------   ----------
<S>                                     <C>          <C>
a.) Notes to Caprice Engine, interest
    at 6% to 8% per annum, due on
    demand; unsecured                   $        0   $  165,657

b.) Notes to Bill Synder, including
    $100,000 LOC, interest at 6.75%
    to 10.5% per annum, due on
    demand; unsecured                            0      119,500
</TABLE>


                                                                             9
<PAGE>   11

                          QUADRATECH, INC. & SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 Nine Months ended September 30, 1998 and 1997


NOTE 3 - NOTES PAYABLE (Continued)
<TABLE>
<CAPTION>


                                             1998          1997
                                          ----------   ----------

<S>                                       <C>           <C>
c.)  Note to David Comfort, interest
     at 8 1/2% commencing 8/1/98;
     unsecured; due on demand                      0       17,788

d.)  Note to William Kroes, interest at
     10% per annum due from 3/1/98;
     monthly installments of $420 from
     3/15/98; due 5/31/99; unsecured          50,500      102,000

e.)  Note to Frances Rigney, interest
     only at 8 1/2% commencing 8/1/98;
     unsecured; due on demand                241,500        4,500
                                          ----------   ----------
Total                                     $  292,000   $  409,445

Less current maturities                      241,500      307,445
                                          ----------   ----------
Long-term debt, net                       $   50,500   $  102,000
                                          ==========   ==========
Maturities on notes payable are as follows:

   December 31,
   1998                                   $  241,500
   1999                                       50,500
                                          ----------
                                          $  292,000
                                          ==========
</TABLE>

NOTE 4 - ROYALTIES

The Company has a signed agreement with an officer/stockholder to pay a
royalty of 4% on gross sales of oil absorbent material per year. In exchange for
the royalty, the Company acquired the patent on the oil absorbent material.


NOTE 5 - INCOME TAXES

The Company files consolidated federal and state income tax returns with its
subsidiary.

Provision for income taxes in the consolidated statements of operations for nine
months ended September 30, 1998 and 1997 consist of $800 minimum state income
taxes in each year.

As of December 31, 1997, the Company has federal net operating loss
carryforwards of $2,735,038, and California NOL of $2,615,904 to reduce future
taxable income. To the extent not utilized, both carryforwards will begin to
expire beginning 2000 and 1998 respectively.


                                                                            10
<PAGE>   12

                          QUADRATECH, INC. & SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 Nine Months ended September 30, 1998 and 1997

NOTE 6 - COMMON STOCK TRANSACTIONS

In 1998, the Company issued stocks to reduce accounts payable of $11,475 and
notes payable with accrued interest of $521,900.

NOTE 7 - RELATED PARTY TRANSACTIONS

Notes Payable

As described in Note 3, the Company had various unsecured borrowings from the
stockholders.

Paid-in Capital

$11,000 of accounts payable was paid by a stockholder and credited to paid-in
capital.

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company currently leases its office facilities for $700 per month on a
month-to-month basis. Rent expense totaled $7,168 and $68,000 for 1998 and 1997,
respectively.

In addition, the Company is responsible for its pro rata share of property
taxes.

NOTE 9 - PRIOR YEAR ADJUSTMENTS

Certain errors, resulting in both the overstatement and understatement of
assets and liabilities of 1997 were corrected in 1998. These errors have no
effect on year of 1998. The changes to accumulated deficits as of December 31,
1997 are summarized as follows:

<TABLE>
<S>                                              <C>
As previously reported, December 31, 1997          $(2,850,622)

Adjustments:
   Understatement of Accounts Payable                   (1,179)
   Understatement of Accounts Receivable                 6,937
                                                   -----------
As adjusted                                        $(2,844,864)
                                                   -----------
</TABLE>


                                                                              11
<PAGE>   13

                          QUADRATECH, INC. & SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 Nine Months ended September 30, 1998 and 1997


NOTE 10 - GOING CONCERN

The accompanying consolidated financial statements are presented on the basis
that the Companies are going concerns. Going concern contemplates the
realization of assets and the satisfaction of liabilities in the normal course
of business over a reasonable length of time. As shown in the accompanying
consolidated financial statements, the Company incurred a net loss of $258,603
and $276,264 for nine months ended September 30, 1998 and 1997, respectively,
and as of September 30, 1998, the Company has an accumulated deficit of
$3,103,467, a deficit in stockholders' equity of $200,649 and current
liabilities exceed current assets by $229,437.

Management is currently involved in active negotiations to obtain additional
financing and actively increasing marketing efforts to increase revenues. The
Company's continued existence depends on its ability to meet its financing
requirements and the success of its future operations. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.

                                                                              12
<PAGE>   14
II.  Management's Discussion and Analysis or Plan of Operation

Results of Operation.

     For the current quarter, the Company has continued to focus on marketing
its oil absorbent products.

     The Company has continued to maintain its reduced selling, general and
administrative costs decreased substantially as a result of a reduction in
personnel and decreased marketing costs associated with the sale of products to
its customers.

Liquidity and  Capital Resources.

     The liquidity of the Company and its available capital resources have not
improved.

     The Company believes that internally generated funds and the sale and
issuance of stock for cash or in cancellation of indebtedness may provide
minimum capital resources to finance operations and fund capital expenditures.
The Company's need for funds has been reduced predicated upon the significant
reduction in property rental and maintenance expenses and the reduction of
marketing costs and research activities.

     For the current quarter, the Company had no material commitments to acquire
additional assets.

<PAGE>   15


                                    PART II

                               OTHER INFORMATION

Item 1 - Legal Proceedings.............................................. None

Item 2 - Changes in the Rights of the Company's Security Holders........ None

Item 3 - Defaults by the Company on its Senior Securities............... None

Item 4 - Results of Votes of Security Holders........................... None

Item 5 - Other Information.............................................. None

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

                                   SIGNATURE

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.

Dated: November 24, 1998                          QUADRATECH, INC.
                                                  (Company)

                                              By: /s/ PERRY COPLE
                                                  --------------------------
                                                  Perry Cople
                                                  President