UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION

                               Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)
                  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
     (X)              OF THE SECURITIES EXCHANGE ACT OF 1934


                 For the Quarterly Period Ended June 30, 1999

                                        OR

                 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
     (  )              OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                to

Commission File Number                  0-13084

                               WARRANTECH CORPORATION
               (Exact name of registrant as specified in its charter)

                  Delaware                           13-3178732
     (State or other jurisdiction of              (I.R.S. Employer
      incorporation or organization)              Identification No.)

      300 Atlantic Street, Stamford, CT                 06901
  (Address of principal executive offices)            (Zip Code)

Registrant's telephone number, including area code   (203) 975-1100


(Former name,former address and former fiscal year, if changed since last year)

    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.     Yes  X       No

   Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

             Class                          Outstanding at June 30, 1999
Common stock, par value $.007 per share            15,222,861 shares


                         1

<PAGE>


PART I.  FINANCIAL INFORMATION


        Warrantech  Corporation (the "Company")  announced on July 15, 1999 that
it is reviewing its accounting policy with respect to revenue  recognition.  For
the past eight years, the Company has recognized  revenue  immediately in direct
proportion  to costs  incurred.  The review was  undertaken  after the Company's
independent  auditor,  Ernst & Young,  raised the issue concerning the Company's
revenue  recognition policy shortly before the due date for filing the Company's
Annual Report on Form 10-K for its 1999 fiscal year.

        Prior to adopting its revenue  recognition  policy in 1991,  the Company
had its  revenue  recognition  policy  reviewed  with the  Financial  Accounting
Standards Board ("FASB") and the Securities and Exchange Commission (the "SEC").
Both FASB and the SEC concurred with the Company's  revenue  recognition  policy
and, as a result of their affirmation, for the past eight years, the Company has
recognized   revenue   immediately  in  direct  proportion  to  costs  incurred.
Furthermore, the Company has consistently received unqualified opinions from its
independent auditors.

        In view of the issues raised by Ernst & Young,  the Company will shortly
again request the views of FASB with respect to the revenue recognition issue to
confirm  that its  current  manner of  presentation  of its  results is still in
conformity  with  generally  accepted  accounting   principles.   It  should  be
emphasized that the issue concerning the Company's  revenue  recognition  policy
does not involve any accounting irregularities;  it only involves a disagreement
with the  Company's  new auditors as to whether an  accounting  policy which the
Company  has been  following  for the past eight  years  should  continue  to be
followed.

     Because  of  the  unresolved  issues  regarding  the  Company's   financial
statements,  the Company  was unable to file its Annual  Report on Form 10-K for
the fiscal  year  ending  March 31,  1999.  As a  consequence  of the  Company's
inability  to file its Form 10-K,  the Company has  received  notice from Nasdaq
that the  Company's  common stock is subject to being  delisted  from the Nasdaq
Stock  Market.  The  Company  has  informed  Nasdaq  that it is  appealing  such
delisting and a formal hearing with respect to such delisting has been scheduled
for August 27, 1999.  Pending the outcome of this hearing,  the Company's common
stock will continue to trade on the Nasdaq system under the symbol  "WTECE".  In
light of the Nasdaq  action,  and the recent  weakness in the  Company's  common
stock, the Company recently filed its Form 10-K, omitting those portions of Part
II thereof relating to its financial statements. The Company is filing this Form
10-Q for the three months ended June 30, 1999 on the same basis. The information
required to be provided in the Form 10-Q with respect to the Company's financial
statements and management's discussion and analysis of results of operations and
financial  condition  will  be  promptly  filed  supplementally   following  the
resolution of the issue regarding revenue  recognition and the completion of the
audit of the  Company's  financial  statements.  For a discussion of the revenue
recognition  policy issues under review at this time,  please see Part II of the
Company's Form 10-K for the year ended March 31, 1999.



<PAGE>


PART II. Other Information

Item 1.       Legal Proceedings

              Not applicable

Item 2.       Changes in Securities

              Not applicable.

Item 3.       Defaults Upon Senior Securities

              Not applicable.

Item 4.       Submission of Matters to Vote of Security Holders

              Not applicable.

Item 5.       Other Information

              Not applicable.

Item 6 (a)                 Exhibits

              (27) Financial Data Schedule*


Item 6        Reports on Form 8-K

              Report on Form 8-K reporting item 5 dated July 30, 1999 filed
              July 30, 1999



*  To be filed as amendment.


<PAGE>

                                                         SIGNATURES


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                   WARRANTECH CORPORATION


                                            /s/ Joel San Antonio
                                    ----------------------------------
                                   Joel San Antonio - Chairman of the Board
                                   (Chief Executive Officer)


Date:  August 16, 1999

                                             /s/  Richard F. Gavino
                                    -----------------------------------
                                   Richard F. Gavino - Executive Vice President
                                   and Chief Financial Officer


Date:  August 16, 1999