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, 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:  1,627,358 shares of common stock, $.01 par value, as of November 13, 2001
(which reflects the two-for-five reverse stock split effective April 19, 1999).

<PAGE>

                      Acorn Holding Corp. and Subsidiaries

                       CONSOLIDATED INTERIM BALANCE SHEETS
<TABLE>
<CAPTION>
                                                       September 30,      December 31,
                                                           2001              2000
                                                       ------------       ------------
                                                       (unaudited)
CURRENT ASSETS
<S>                                                   <C>               <C>
   Cash and cash equivalents                          $  1,573,797      $  1,012,124
   Investment securities                                    18,841           212,952
   Accounts receivable - trade                             151,031           357,502
   Current portion of note receivable - employee                --            40,000
   Inventories                                           2,078,701         2,454,583
   Prepaid expenses                                         44,619            18,396
   Deferred income tax asset                                    --            91,328
                                                        ----------        ----------
       Total current assets                              3,866,989         4,186,885
                                                         ---------         ---------

MACHINERY AND EQUIPMENT, net of accumulated depreciation
   of $1,610,509 as of September 30, 2001 and $1,338,591
   as of December 31, 2000                               2,026,042         2,012,537
                                                         ---------         ---------

OTHER ASSETS
   Deposits                                                     --            61,200
   Other investments                                         9,108             9,108
   Goodwill, net of accumulated amortization
     of $791,156 as of September 30, 2001
     and $727,007 as of December 31, 2000                   64,148           128,297
   Deferred income tax asset                             1,231,403         1,224,374
                                                         ---------         ---------
                                                         1,304,659         1,422,979
                                                         ---------         ---------

                                                      $  7,197,690      $  7,622,401
                                                      ============      ============
       LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable                                   $     55,331      $    245,457
   Accrued expenses
     Salaries and bonuses                                  462,355           277,396
     Other                                                 162,804           155,790
   Deferred income                                              --           225,000
                                                         ---------         ---------
       Total current liabilities                           680,490           903,643
                                                         ---------         ---------
STOCKHOLDERS' EQUITY
   Common stock                                             16,273            16,273
   Additional paid-in capital                           11,847,860        11,847,860
   Accumulated deficit                                  (5,303,421)       (5,116,950)
   Accumulated other comprehensive income                    3,842                75
   Treasury stock                                          (47,354)          (28,500)
                                                         ---------         ---------
       Total stockholders' equity                        6,517,200         6,718,758
                                                         ---------         ---------
                                                      $  7,197,690      $  7,622,401
                                                         =========         =========
</TABLE>
The accompanying notes are an integral part of these statements.

                                       2
<PAGE>

                      Acorn Holding Corp. and Subsidiaries

                  CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                         Three months ended               Nine months ended
                                                         ------------------               -----------------
                                                            September 30,                    September 30,
                                                        2001             2000             2001            2000
                                                       ------           ------           ------          ------

<S>                                                 <C>              <C>              <C>             <C>
Net sales                                           $   988,802      $ 1,746,766      $ 4,674,722     $ 5,234,473
                                                     ----------       ----------       ----------      ----------

Costs and expenses
Cost of sales                                           906,006        1,310,619        3,553,850       3,746,249
Selling, general and administrative                     372,653          442,600        1,249,495       1,255,310
                                                      1,278,659        1,753,219        4,803,345       5,001,559
                                                     ----------       ----------       ----------      ----------

Operating profit (loss)                                (289,857)          (6,453)        (128,623)        232,914
                                                     ----------       ----------       ----------      ----------
Other income
Interest income                                          14,027           11,034           41,576          54,121
                                                     ----------       ----------       ----------      ----------
                                                         14,027           11,034           41,576          54,121
                                                     ----------       ----------       ----------      ----------

Income (loss) before income tax expense                (275,830)           4,581          (87,047)        287,035

Income tax expense (benefit)                             18,084            2,845           99,424         117,521
                                                     ----------       ----------       ----------      ----------

Net income (loss)                                   $  (293,914)     $     1,736      $  (186,471)     $  169,514
                                                     ==========       ==========       ==========       =========

Earnings (loss) per share (basic and diluted)       $     (0.18)     $      0.00      $     (0.12)     $     0.10
                                                     ==========       ==========       ==========       =========

Weighted average shares outstanding - basic           1,595,742        1,627,358        1,599,009       1,627,358
                                                     ==========       ==========       ==========       =========

Weighted average shares outstanding - diluted         1,595,742        1,627,358        1,599,009       1,627,358
                                                     ==========       ==========       ==========       =========
</TABLE>

The accompanying notes are an integral part of these statements.

                                       3
<PAGE>

                      Acorn Holding Corp. and Subsidiaries

        CONSOLIDATED INTERIM STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

                Nine months ended September 30, 2001 (unaudited)

<TABLE>
<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 loss                                          -              -      (186,471)              -               -      (186,471)
   Net unrealized gain on investments
      in securities available-for-sale               -              -             -           3,767               -         3,767
                                                                                                                        ----------
   Total comprehensive loss                                                                                              (182,704)
                                                                                                                        ----------
Treasury shares purchased                            -              -             -               -         (18,854)      (18,854)
                                             ---------     ----------    -----------      ---------       ----------    ----------

Balance at September 30, 2001               $   16,273    $11,847,860   $(5,303,421)     $    3,842      $  (47,354)   $6,517,200
                                             =========     ==========    ===========      =========       ==========    ==========
</TABLE>

         The accompanying notes are an integral part of this statement.

                                       4
<PAGE>

                      Acorn Holding Corp. and Subsidiaries

                  CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

                         Nine months ended September 30,
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                 2001        2000
                                                             -----------  ----------
<S>                                                          <C>          <C>
Cash flows from operating activities
   Net income (loss)                                         $ (186,471)  $  169,514
   Adjustments to reconcile net income to net cash
       Provided by operating activities
     Depreciation and amortization                              336,069      310,565
     Deferred income taxes                                       84,299       99,566
     (Increase) decrease in assets
       Accounts receivable                                      206,471     (180,046)
       Inventories                                              375,882      (70,602)
       Prepaid expenses and other assets                        (26,223)         951
       Other assets                                                   -       (2,605)
     Increase (decrease) in liabilities
       Accounts payable                                        (190,126)      92,937
       Accrued expenses                                         191,973      217,638
       Deferred income                                         (225,000)    (225,000)
                                                             -----------   ----------

         Net cash provided by operating activities              566,874      412,918
                                                             -----------   ----------
Cash flows from investing activities
   Purchase of machinery and equipment, including deposits     (224,225)    (483,174)
   Proceeds from redemption of investments                      197,878        5,130
   Note receivable payments received                             40,000      150,236
                                                             -----------   ----------

         Net cash provided by (used in) investing activities     13,653      (327,808)
                                                             -----------   ----------
Cash flows from financing activities
   Payment of long-term debt                                          -      (90,797)
   Proceeds from line of credit                                       -       100,000
   Purchase of treasury stock                                   (18,854)           -
                                                             -----------   ----------

         Net cash provided by (used in) financing activities    (18,854)       9,203
                                                             -----------   ----------
         NET INCREASE IN CASH AND
            CASH EQUIVALENTS                                    561,673       94,313

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

Cash and cash equivalents at end of period                  $ 1,573,797   $ 1,050,670
                                                             ==========    ==========
</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

                               September 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
   semiconductor 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 nine months ended  September 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:

   Reclassifications
   -----------------

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

NOTE C - COMMON STOCK

   At December  31, 2000 and  September  30,  2001,  the Company had  20,000,000
   shares of $0.01 par value common stock  authorized.  At December 31, 2000 and
   September 30, 2001,  1,627,362  shares were issued.  At December 31, 2000 and
   September 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 be 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

                                       6
<PAGE>

   purposes of impairment  testing and segment  reporting;  effective January 1,
   2002, goodwill will no longer be subject to amortization. Management is still
   reviewing the provisions of these Statements, and the impact on the Company's
   financial position or results of operations is not determinable.

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, subject to stockholder approval.

                                       7
<PAGE>

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

      Sales for the  three-month  period  ended  September  30,  2001  decreased
$757,964 from the three-month  period ended September 30, 2000,  while sales for
the  nine-month  period ended  September  30, 2001  decreased  $559,751 from the
nine-month period ended September 30, 2000. The Company had an operating loss of
$289,857 for the three-months  ended September 30, 2001 and an operating loss of
$128,623  for the  nine-months  ended  September  30,  2001,  as  compared to an
operating loss of $6,453 and an operating profit of $232,914, 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

      None

     (b)  Reports on Form 8-K:

      There were no reports on Form 8-K filed by the  Company  filed  during the
quarter ended September 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: November 13, 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