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            June 30, 2001
                                                   ----------------------

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

    For the transition period from                            to
                                   ---------                     ---------

                          Commission File No. 811-08469

                               ACORN HOLDING CORP.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

        Delaware                                             59-2332857

--------------------------------------------------------------------------------
(State  or  other  jurisdiction  of                  (IRS  Employer  Identifi-
incorporation  or organization)                             cation No.)

     1251 Avenue of the Americas, 45th Floor, New York, New York 10020-1104
--------------------------------------------------------------------------------
       (Address of principal executive offices)                    (Zip code)

Issuer's telephone number, including area code        (212) 536-4089
                                                            --------------------
                                       N/A
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Former  name,  former  address and former  fiscal  year,  if changed  since last
report.

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

APPLICABLE ONLY TO CORPORATE ISSUERS:  State the number of shares outstanding of
each of the  issuer's  classes of common  equity,  as of the latest  practicable
date:  1,595,746  shares of common stock,  $.01 par value, as of August 10, 2001
(which reflects the two-for-five reverse stock split effective April 19, 1999).



<PAGE>

<TABLE>
                                      Acorn Holding Corp. and Subsidiaries

                                       CONSOLIDATED INTERIM BALANCE SHEETS
<CAPTION>


                                                                           June 30,
                                                                             2001         December 31,
ASSETS                                                                   (unaudited)          2000
                                                                         -----------     -------------
<S>                                                                      <C>             <C>
CURRENT ASSETS
Cash and cash equivalents                                                $ 1,394,249     $ 1,012,124
Investment securities                                                        213,732         212,952
Accounts receivable - trade                                                  305,411         357,502
Current portion of note receivable - employee                                      -          40,000
Inventories                                                                2,229,453       2,454,583
Prepaid expenses                                                              63,747          18,396
Deferred income tax asset                                                     30,443          91,328
                                                                         -----------     -----------
Total current assets                                                       4,237,035       4,186,885
                                                                         -----------     -----------

MACHINERY AND EQUIPMENT, net of accumulated depreciation
of  $1,518,281 as of June 30, 2001 and $1,338,591
as of December 31, 2000                                                    2,118,270       2,012,537
                                                                         -----------     -----------
OTHER ASSETS
Deposits                                                                           -          61,200
Other investments                                                              9,108           9,108
Goodwill, net of accumulated amortization of $769,771                         85,533         128,297
 as of June 30, 2001 and $727,007 as of December 31, 2000
Deferred income tax asset                                                  1,226,297       1,224,374
                                                                         -----------     -----------
                                                                           1,320,938       1,422,979
                                                                         -----------     -----------
                                                                         $ 7,676,243     $ 7,622,401
                                                                         ===========     ===========
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable                                                             181,418         245,457
Accrued expenses
Salaries and bonuses                                                         400,701         277,396
Other                                                                        210,830         155,790
Deferred income                                                               75,000         225,000
                                                                         -----------     -----------
Total current liabilities                                                    867,949         903,643
                                                                         -----------     -----------
STOCKHOLDERS' EQUITY
Common stock                                                                  16,273          16,273
Additional paid-in capital                                                11,847,860      11,847,860
Accumulated deficit                                                       (5,009,507)     (5,116,950)
Accumulated other comprehensive income                                         1,022              75
Treasury stock                                                               (47,354)        (28,500)
                                                                         -----------     -----------
Total stockholder' equity                                                  6,808,294       6,718,758
                                                                         -----------     -----------
                                                                         $ 7,676,243      $7,622,401
                                                                         ===========     ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                                  2
<PAGE>


<TABLE>
                                        Acorn Holding Corp. and Subsidiaries

                                    CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
                                                     (unaudited)
<CAPTION>


                                                       Three Months Ended             Six Months Ended
                                                            June 30,                      June 30,
                                                      2001            2000           2001           2000
                                                      ----            ----           ----           ----

Net sales                                           $ 1,551,326    $ 1,848,156    $ 3,685,920    $ 3,487,707
                                                    -----------    -----------    -----------    -----------
<S>                                                 <C>            <C>            <C>            <C>
Costs and expenses
Cost of sales                                        1,171,106       1,248,179      2,647,844      2,435,630
Selling, general and administrative                    415,427         440,043        876,842        812,710
                                                    -----------    -----------    -----------    -----------
                                                     1,586,533       1,688,222      3,524,686      3,248,340
                                                    -----------    -----------    -----------    -----------

Operating profit (loss)                               (35,207)         159,934        161,234        239,367
                                                    -----------    -----------    -----------    -----------
Other income

Interest income                                        13,995          32,849         27,549         43,087
                                                    -----------    -----------    -----------    -----------
                                                       13,995          32,849         27,549         43,087
                                                    -----------    -----------    -----------    -----------

Income (loss) before income tax expense               (21,212)        192,783        188,783        282,454

Income tax expense (benefit)                           (9,589)         71,983         81,340        114,676
                                                    -----------    -----------    -----------    -----------

Net income (loss)                                    $ (11,623)    $  120,800      $ 107,443     $  167,778
                                                    -----------    -----------    -----------    -----------

Earnings (loss) per share (basic and diluted)        $   (0.01)        $ 0.07         $ 0.07         $ 0.10
                                                    -----------    -----------    -----------    -----------

Weighted average shares outstanding - basic           1,595,746      1,627,362     1,600,669      1,627,362
                                                     ===========   ============   ==========     ==========

Weighted average shares outstanding - diluted         1,595,946      1,627,362     1,601,066      1,627,362

                                                     ===========   ============   ==========     ==========
</TABLE>
The accompanying notes are an integral part of these statements.

                                                  3
<PAGE>

<TABLE>
                           Acorn Holding Corp. and Subsidiaries

      CONSOLIDATED INTERIM STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME

                    From January 1, 2001 to June 30, 2001 (unaudited)
<CAPTION>


                                                                                      Accumulated
                                                      Additional                         other
                                            Common     paid-in       Accumulated     comprehensive     Treasury
                                            stock      capital         deficit           income         stock          Total
                                          ---------   -----------    ------------    -------------    ---------     ----------
<S>                                       <C>         <C>            <C>             <C>              <C>           <C>
Balance at January 1, 2001                $ 16,273    $11,847,860    $(5,116,950)    $        75      $ (28,500)    $ 6,718,758

Comprehensive income (loss)
Net income                                       -               -       107,443             -             -            107,443
Net unrealized gain on investments
in securities available-for-sale                 -               -               -           947             -              947
Total comprehensive income                                                                                              108,390
Treasury shares purchased                        -               -               -             -        (18,854)        (18,854)
                                          ---------    -----------   ------------    -------------    ---------     -----------

Balance at June 30, 2001                  $ 16,273     $11,847,860   $(5,009,507)    $     1,022     $ (47,354)     $ 6,808,294
                                          ========     ===========   ===========     ===========     ==========     ===========
</TABLE>
The accompanying notes are an integral part of these statements.

                                                  4

<PAGE>

<TABLE>
                                  Acorn Holding Corp. and Subsidiaries

                              CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

                                        Six months ended June 30,
                                              (unaudited)
<CAPTION>
                                                                              2001                  2000
                                                                              ----                  ----
<S>                                                                      <C>                    <C>
Cash flows from operating activities
 Net income                                                              $   107,443            $  167,778
 Adjustments to reconcile net income to net cash
    used in operating activities
  Depreciation and amortization                                              222,454               201,318
  Deferred income taxes                                                       58,962                99,481
  (Increase) decrease in assets
    Accounts receivable                                                       52,091              (124,530)
    Inventories                                                              225,130              (251,001)
    Prepaid expenses and other assets                                        (45,351)              (19,295)
  Increase (decrease) in liabilities
    Accounts payable                                                         (64,039)              371,169
    Accrued expenses                                                         178,345               164,666
    Deferred income                                                          150,000)             (150,000)
                                                                         -----------            ----------
      Net cash provided by operating activities                              585,035               459,586

Cash flows from investing activities
 Purchase of machinery and equipment, including deposits                    (224,223)             (431,961)
 Proceeds from redemption of investments                                        167                  6,185
 Note receivable payments received                                            40,000               150,236
                                                                         -----------            ----------

      Net cash used in investing activities                                 (184,056)             (275,540)

Cash flows from financing activities
 Payment of long-term debt                                                        -                (60,531)
 Purchase of treasury stock                                                 (18,854)                  -
                                                                         -----------            ----------

      Net cash used in financing activities                                 (18,854)               (60,531)
                                                                         -----------            ----------

      NET INCREASE IN CASH AND
       CASH EQUIVALENTS                                                      382,125               123,515

Cash and cash equivalents at beginning of period                           1,012,124               956,357
                                                                         -----------            ----------

Cash and cash equivalents at end of period                               $ 1,394,249            $1,079,872
                                                                         ===========            ==========

</TABLE>

The accompanying notes are an integral part of these statements.

                                                  5


<PAGE>


                      ACORN HOLDING CORP. AND SUBSIDIARIES
             Notes to the Consolidated Interim Financial Statements
                                  June 30, 2001
                                   (Unaudited)


NOTE A - ORGANIZATION AND PURPOSE

Acorn  Holding  Corp.  (Acorn) was  incorporated  under the laws of the State of
Delaware on September 8, 1983. Acorn is a holding company for it's  wholly-owned
subsidiaries,  Recticon Enterprises,  Inc. (Recticon) and Automotive Industries,
Inc.  (Automotive).   Recticon  is  organized  to  engage  in  the  business  of
manufacturing and processing of silicon wafers for the semi-conductor  industry.
Automotive is an inactive subsidiary.

NOTE B - BASIS OF PRESENTATION

Interim financial  statements  reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for the periods. The
2000  balance  sheet has been  derived  from the  audited  financial  statements
contained in the 2000 Annual Report to  Stockholders.  These  interim  financial
statements  conform with the requirements for interim  financial  statements and
consequently do not include all the disclosures  normally required by accounting
principles  generally  accepted  in the United  States.  The results for the six
months ended June 30, 2001 are not  necessarily  indicative of the results to be
expected  for the full year.  Reporting  developments  have been  updated  where
appropriate.   In  this  connection,   there  are  no  significant   changes  in
disclosures, except for the following:

1.    Reclassifications

      Certain  prior  period  financial  information  has been  reclassified  to
conform to current period presentation

NOTE C - COMMON STOCK

At December 31, 2000 and June 30,  2001,  the Company had  20,000,000  shares of
$0.01 par value common stock authorized. At December 31, 2000 and June 30, 2001,
1,627,362 shares were issued. At December 31, 2000 and June 30, 2001,  1,608,362
shares and 1,595,746 shares were outstanding respectively.

NOTE D - RECENT ACCOUNTING PRONOUNCEMENTS

On June 29, 2001, the Financial  Accounting  Standards Board (FASB) approved for
issuance  Statement  of  Financial  Accounting  Standards  (SFAS) 141,  Business
Combinations,  and SFAS 142, Goodwill and Intangible Assets. Major provisions of
these Statements are as follows: all business combinations  initiated after June
30, 2001 must use the  purchase  method of  accounting;  the pooling of interest
method of accounting is prohibited except for transactions initiated before July
1, 2001;  intangible  assets  acquired in a business  combination  must recorded
separately from goodwill if they arise from contractual or other legal rights or
are separable from the acquired entity and can be sold,  transferred,  licensed,
rented or exchanged, either individually or as part of a related contract, asset
or  liability;  goodwill and  intangible  assets with  indefinite  lives are not
amortized   but  are  tested  for   impairment   annually,   except  in  certain
circumstances,  and  whenever  there is an  impairment  indicator;  all acquired
goodwill must be assigned to reporting units for purposes of impairment  testing
and segment  reporting;  effective  January 1, 2002,  goodwill will no longer be

                                       6
<PAGE>

subject to amortization.  Although it is still reviewing the provisions of these
Statements,  management's  preliminary  assessment is that these Statements will
not have a material  impact on the  Company's  financial  position or results of
operations.

NOTE E - STOCK OPTION PLANS

On June 4, 2001, the Board of Directors adopted the 2001 Performance Equity Plan
and the 2001 Directors' Stock Plan.


                                       7
<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

      Sales for the  three-month  period ended June 30, 2001 decreased  $296,830
from the three-month  period ended June 30, 2000,  while sales for the six-month
period ended June 30, 2001  increased  $198,213 from the six-month  period ended
June 30, 2000. The Company had an operating loss of $35,207 for the three months
ended June 30, 2001 and an operating profit of $161,234 for the six months ended
June 30,  2001,  as compared to  operating  profits of  $159,934  and  $239,367,
respectively, over the comparable prior year periods.

      The  principal  reason  for the  decrease  in  profitability  was due to a
decreased demand for the Company's products. Due to the economic slowdown in the
industry, the outlook for the next several months is uncertain.

      Although   the  business  in  which  the  Company  is  engaged  is  highly
competitive and cyclical in nature,  the Company believes that it has sufficient
short-term and long-term liquidity either from cash on hand, credit arrangements
or cash flow from operations.

      From  time to time in both  written  reports  and oral  statements  by the
Company's senior  management,  we may express our expectations  regarding future
performance by the Company.  These  "forward-looking  statements" are inherently
uncertain,  and investors  must recognize that events could turn out to be other
than what senior management expected.

                                     PART II
                                OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

  (a) Exhibits

      10.1     Acorn Holding Corp. 2001 Performance Equity Plan

      10.2     Acorn Holding Corp. 2001 Directors Stock Option Plan

  (b) Reports on Form 8-K:

         There were no reports on Form 8-K filed by the Company filed during the
quarter ended June 30, 2001.

                                       8
<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.


                                              ACORN HOLDING CORP.



Date: August 14, 2001
                                              /s/ Larry V. Unterbrink
                                              ----------------------------------
                                              Larry V. Unterbrink, Treasurer
                                              (Principal Financial and
                                              Accounting Officer)



                                              /s/ Stephen A. Ollendorff
                                              ----------------------------------
                                              Stephen A. Ollendorff,
                                              Chairman, Chief Executive Officer,
                                              and Secretary



                                       9