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, 2000
                                               ----------------------

[  ]     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.
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        (Exact name of small business issuer as specified in its charter)

        Delaware                                             59-2332857
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(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
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               (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 August 11, 2000
(which reflects the two-for-five reverse stock split effective April 19, 1999).


<PAGE>
                      Acorn Holding Corp. and Subsidiaries

                       CONSOLIDATED INTERIM BALANCE SHEETS

                                                     June 30,
                ASSETS                                 2000        December 31,
                                                   (unaudited)          1999
                                                   ------------    -------------
CURRENT ASSETS
  Cash and cash equivalents                        $  1,079,872    $    956,357
  Investment securities                                 200,669         208,601
  Accounts receivable - trade                           479,789         355,259
  Current portion of note receivable
    from sale of subsidiary                                --           110,236
  Current portion of note receivable
    - employee                                           40,000          40,000
  Inventories                                         2,324,309       2,073,308
  Prepaid expenses                                       35,566          20,482
  Deferred income tax asset                             121,770         121,770
                                                   ------------    ------------

        Total current assets                          4,281,975       3,886,013
                                                   ------------    ------------

MACHINERY AND EQUIPMENT, net of accumulated
  depreciation of $1,167,165, as of
  June 30, 2000 and $1,016,755, as of
  December 31, 1999                                   2,105,734       1,832,326
                                                   ------------    ------------

OTHER ASSETS

  Note receivable, less current portion
    - employee                                             --            40,000
  Other assets                                           13,319           9,108
  Goodwill, net of amortization of
    $684,242, as of June 30, 2000 and
    $641,477, as of December 31, 1999                   171,062         213,827
  Deferred income tax asset                           1,454,505       1,544,542
                                                   ------------    ------------
                                                      1,638,886       1,807,477
                                                   ------------    ------------
                                                   $  8,026,595    $  7,525,816
                                                   ============    ============
         LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Line of credit                                 $    150,000    $    150,000
    Current maturities of long-term debt                 60,531         121,062
    Accounts payable                                    509,426         138,257
    Accrued expenses
       Salaries and bonuses                             158,595         136,144
       Other                                            182,035          39,820
    Deferred income                                     300,000         300,000
                                                   ------------    ------------

      Total current liabilities                       1,360,587         885,283
                                                   ------------    ------------

DEFERRED INCOME                                          75,000         225,000
                                                   ------------    ------------

DEFERRED INCOME TAX LIABILITY                           216,244         206,800
                                                   ------------    ------------

STOCKHOLDERS' EQUITY
    Common stock                                         16,280          16,280
    Additional paid-in capital                       11,847,853      11,847,853
    Accumulated deficit                              (5,467,376)     (5,635,154)
    Accumulated other comprehensive
     income (loss)                                      (21,993)        (20,246)
                                                   ------------    ------------

      Total stockholders' equity                      6,374,764       6,208,733
                                                   ------------    ------------

                                                   $  8,026,595    $  7,525,816
                                                   ============    ============


The accompanying notes are an integral part of these statements.

                                       2
<PAGE>
                      Acorn Holding Corp. and Subsidiaries

                  CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

                         June 30, 1999 and June 30, 2000

                                   (unaudited)

<TABLE>
<CAPTION>
                               Three Months      Three Months         Six Months          Six Months
                              Ended June 30,    Ended June 30,      Ended June 30,      Ended June 30,
                                   2000             1999                 2000                1999
<S>                             <C>              <C>                 <C>                 <C>

Net Sales                       $1,848,156       $1,103,469          $3,487,707          $1,980,924
                                ----------       ----------          ----------          ----------
Costs and expenses
   Costs of sales                1,248,179          888,870           2,435,630           1,693,988
   Selling, general and
    administrative                 440,043          359,023             812,710             769,101
                                ----------       ----------          ----------          ----------
                                 1,688,222        1,247,893           3,248,340           2,463,089
                                ----------       ----------          ----------          ----------
   Operating profit (loss)         159,934         (144,424)            239,367            (482,165)
                                ----------       ----------          ----------          ----------
Other income (expense)
   Loss on investment                --                --                 --                   (754)
   Interest income, net             32,849           49,805              43,087              62,567
                                ----------       ----------          ----------          ----------
                                    32,849           49,805              43,087              61,813
                                ----------       ----------          ----------          ----------
   Income (loss) before
     income tax expenses           192,783          (94,619)            282,454            (420,352)

Income tax expenses                 71,983          142,800             114,676              75,994
                                ----------       ----------          ----------          ----------

   Net income (loss)               120,800         (237,419)           $167,778           $(496,346)
                                ==========       ==========          ==========          ==========
Earnings (loss) per share           $0.074           (.146)              $0.103            $(0.305)
                                ==========       ==========          ==========          ==========
Weighted average shares
   outstanding                   1,627,362        1,627,362           1,627,362           1,627,362
                                ==========       ==========          ==========          ==========
</TABLE>


The accompanying notes are an integral part of these statements.

                                       3
<PAGE>


                      Acorn Holding Corp. and Subsidiaries

<TABLE>
<CAPTION>
          CONSOLIDATED INTERIM STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS)

                         Six months ended June 30, 2000

                                                                Accumulated
                                           Additional                       other
                                Common      paid-in      Accumulated     comprehensive    Treasury
                                stock       capital       deficit        income (loss)     stock       Total
                               --------    ----------    -----------     -------------    --------   ----------

<S>                            <C>         <C>           <C>              <C>             <C>        <C>
Balance at January 1, 2000      $16,280    $11,847,853   $(5,635,154)     $  (20,246)        --      $6,208,733

Comprehensive income (loss)
  Net income (unaudited)          --            --           167,778            --           --         167,778
  Other comprehensive income
   (loss), net of
   reclassification
   adjustments and taxes
   (unaudited)                    --            --              --            (1,747)        --          (1,747)
                                                                                                     ----------
  Total comprehensive income
   (unaudited)                    --            --              --              --           --         166,031
                                ------     -----------   -----------      ----------      -------    ----------
Balance at June 30, 2000
  (unaudited)                  $16,280     $11,847,853   $(5,467,376)     $  (21,993)     $  --      $6,374,764
                                ======     ===========   ===========      ==========      =======    ==========
</TABLE>


The accompanying  notes are an integral part of this statement.

                                       4
<PAGE>


                      Acorn Holding Corp. and Subsidiaries

                  CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

                            Six months ended June 30,
                                   (unaudited)

                                                  2000            1999
                                              -----------    ------------
Cash flows from operating activities
  Net income (loss)                           $   167,778    $  (496,346)
  Adjustments to reconcile net income
     (loss) to net cash (used in)
      provided by operating activities
    Depreciation and amortization                 201,318        190,990
    Deferred income taxes                          99,481         75,944
    (Increase) decrease in assets
       Accounts receivable                       (124,530)      (180,964)
       Inventories                               (251,001)       199,299
       Prepaid expenses                           (15,084)       (17,431)
       Other assets                                (4,211)         3,185
    Increase (decrease) in liabilities
       Accounts payable - Equip. purchase         299,567           --
       Accounts payable                            71,602         80,548
       Accrued expenses                           164,666        (23,666)
       Deferred income                           (150,000)      (150,000)
                                              -----------    -----------

        Net cash (used in) provided
          by operating activities                 459,586       (318,441)
                                              -----------    -----------

Cash flows from investing activities
    Purchase of machinery and equipment          (431,961)       (87,969)
    Proceeds from redemption of investments         6,185         53,095
    Note receivable proceeds                      150,236        150,236
                                              -----------    -----------

        Net cash provided by (used in)
          investing activities                   (275,540)       115,362
                                              -----------    -----------

Cash flows from financing activities
    Payment of long-term debt                     (60,531)       (60,530)
                                              -----------    -----------

        Net cash provided by (used in)
          financing activities                    (60,531)       (60,530)
                                              -----------    -----------

        NET INCREASE (DECREASE) IN CASH AND
          CASH EQUIVALENTS                        123,515       (263,609)

Cash and cash equivalents at
  beginning of period                             956,357      1,126,838
                                              -----------    -----------

Cash and cash equivalents at
  end of period                               $ 1,079,872    $   863,229
                                              ===========    ===========

The accompanying notes are an integral part of these statements.

                                       5
<PAGE>


                      Acorn Holding Corp. and Subsidiaries

               NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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 its  wholly-owned  subsidiaries,  Automotive
     Industries, Inc. (Automotive) and Recticon Enterprises, Inc. (Recticon).

     Automotive is an inactive subsidiary.

     Recticon  is  organized  to engage in the  business  of  manufacturing  and
     processing of silicon wafers for the semi-conductor industry.

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 1999 balance sheet has been derived from the audited financial
     statements  contained  in the 1999  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 generally accepted accounting principles.  The results
     for the six months ended June 30, 2000 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.

2.   Common Stock

     On April 19, 1999, the Company approved a resolution to amend the Company's
     certificate of incorporation to decrease the issued and outstanding  common
     shares and to effect a 5-for-2  reverse stock split  earnings per share and
     weighted average earnings per shares  outstanding for all periods have been
     changed to reflect the 5-for-2 reverse stock split.

                                       6
<PAGE>


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

     Sales for the  three-month  period ended June 30, 2000  increased  $744,687
from the three-month  period ended June 30, 1999,  while sales for the six-month
period ended June 30, 2000 increased  $1,506,783 from the six-month period ended
June 30, 1999.  The Company had  operating  profits of $159,934 and $239,367 for
the three months and six months ended June 30, 2000,  respectively,  as compared
to operating losses of $144,424 and $482,165,  respectively, over the comparable
prior year periods.  The principal reason for the increase in profitability  was
due to a higher demand for the Company's products.

     Although the business in which the Company is engaged is highly competitive
and cyclical in nature and has been recently  incurring  losses from operations,
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 1.   LEGAL PROCEEDINGS

     On May 14, 1999, the Chapter 7 Trustee in Bankruptcy for ServiceMax  Tire &
Auto Centers of Michigan,  Inc.,  filed an avoidance action in the United States
Bankruptcy  Court for the  Eastern  District  of  Michigan  seeking  to  recover
$1,750,000  from the Company on account of payments  made to the Company and its
subsidiary,  Automotive  Industries,  Inc.  ("AII"),  during 1996 and 1997.  The
Company settled this action,  without  admission of liability,  with the Trustee
for the payment by the  Company of the amount of $10,000 in exchange  for a full
and final  release of all  claims the  Trustee  had or might  have  against  the
Company or AII. An Order  dismissing  the  proceedings  has been  entered in the
Bankruptcy  Court and the  Company  and the Trustee  executed a  Settlement  and
Release Agreement in connection therewith.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

     Exhibit No. 10.1 -  Settlement  and Release  Agreement  between  Michael A.
     Mason,  Chapter 7 Trustee For  ServiceMax  Tire & Auto Centers of Michigan,
     Inc. and Acorn Holding Corp., dated as of June 30, 2000.

     Exhibit No. 27 - Financial Data Schedule

     (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, 2000.

                                       7
<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, 2000
                                Larry V. Unterbrink
                                ----------------------------------
                                Larry V. Unterbrink, Treasurer
                                (Principal Financial and
                                Accounting Officer)



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






                                       8