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, 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.

        -----------------------------------------------------------------
        (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 November 10, 2000
(which reflects the two-for-five reverse stock split effective April 19, 1999).


<PAGE>

                      ACORN HOLDING CORP. AND SUBSIDIARIES
                       Consolidated Interim Balance Sheets

                                                 September 30,      December 31,
                                                    2000                1999
                                                 (Unaudited)
                                                -------------       ------------
                                     ASSETS

CURRENT ASSETS
          Cash and cash equivalents              $ 1,050,670         $   956,357
          Investment securities                      205,125             208,601
          Accounts receivable - trade                535,305             355,259
          Current portion of note receivable
            from sale of subsidiary                     -                110,236
          Current portion of note
            receivable - employee                     40,000              40,000
          Inventories                              2,143,910           2,073,308
          Prepaid expenses                            19,531              20,482
          Deferred income tax asset                  121,770             121,770
                                                   ---------           ---------

          Total current assets                     4,116,311           3,886,013
                                                   ---------           ---------

MACHINERY AND EQUIPMENT, net of accumulated
   depreciation of $1,255,029 as of
   September 30, 2000 and $1,016,755
   as of December 31, 1999                         2,069,083           1,832,326
                                                   ---------           ---------

OTHER ASSETS
    Note receivable, less current
      portion - employee                               -                  40,000
    Other assets                                      11,713               9,108
    Goodwill, net of amortization
      of $705,625 as of September 30, 2000
      and $641,477, as of December 31, 1999          149,679             213,827
    Deferred income tax assets                     1,453,214           1,544,542
                                                   ---------           ---------

          Total other assets                       1,614,606           1,807,477
                                                   ---------           ---------
                                                 $ 7,800,000         $ 7,525,816
                                                   =========           =========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Line of credit                               $   250,000         $   150,000
    Current maturities of long-term debt              30,265             121,062
    Accounts payable                                 231,194             138,257
    Accrued expenses
        Salaries and bonuses                         217,770             136,144
        Other                                        175,832              39,820
    Deferred income                                  300,000             300,000
                                                   ---------           ---------

          Total current liabilities                1,205,061             885,283
                                                   ---------           ---------

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

DEFERRED INCOME TAX LIABILITY                        215,038             206,800
                                                   ---------           ---------

STOCKHOLDERS' EQUITY
    Common stock, 20,000,000 shares                   16,274              16,280
      of $.01 per value authorized; 1,627,358
      and 1,628,002 shares issued and
      outstanding as of September 30, 2000 and
      December 31, 1999, respectively

    Additional paid-in capital                    11,847,859          11,847,853
    Accumulated deficit                          (5,465,640)         (5,635,154)
    Accumulated other comprehensive
      income (loss)                                 (18,592)            (20,246)
                                                 -----------        ------------

       Total stockholders' equity                  6,379,901           6,208,733
                                                 -----------         -----------

                                                 $ 7,800,000         $ 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

                                   (Unaudited)

                                  Three Months Ended          Nine Months Ended
                                    September 30,               September 30,
                                 2000          1999         2000           1999
                                ------------------------------------------------

Net sales                  $  1,746,766   $   989,774  $ 5,234,473   $ 2,970,698
                            -----------    ----------   ----------    ----------

Costs and expenses
      Costs of sales          1,310,619       814,828    3,746,249     2,508,816
      Selling, general
        and administrative      442,600       328,801    1,255,310     1,097,902
                            -----------    ----------   ----------    ----------
                              1,753,219     1,143,629    5,001,559     3,606,718

      Operating profit
        (loss)                  (6,453)     (153,855)      232,914     (636,020)
                            -----------   -----------   ----------    ----------

Other income (expense)
      Loss on investment          -          (10,523)         -         (11,277)
      Interest income, net       11,034       (1,853)       54,121        74,896
                            -----------   -----------   ----------    ----------
                                 11,034      (12,376)       54,121        63,619
                            -----------   -----------   ----------    ----------

      Income (loss)
        before income
        taxes (benefit)
        expenses                  4,581     (166,231)      287,035     (572,401)

Income taxes expense              2,845        23,074      117,521       113,250
                            -----------   -----------   ----------    ----------

      Net Income (Loss)        $  1,736    $(189,305)     $169,514   $ (685,651)

Earnings (loss) per share
  (basic and diluted)          $   .001    $    (.12)     $  0.104   $   (0.421)
                            -----------   -----------   ----------    ----------

Weighted average shares
  outstanding                 1,627,358     1,627,358    1,627,358     1,627,358
                            ===========   ===========   ==========    ==========


The accompanying notes are an integral part of these statements.


                                       3
<PAGE>

<TABLE>
<CAPTION>

                                                ACORN HOLDING CORP. AND SUBSIDIARIES
                 Consolidated Interim Statements of Changes in Stockholders' Equity and Comprehensive Income (Loss)
                                                Nine months ended September 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

Cash paid for fractional shares
as a result of 5-for-2 reverse
stock split                                     (6)             6                    -              -             -             -

Comprehensive income (loss)
  Net income (unaudited)                               -              -        169,514              -             -       169,514
  Other comprehensive income
    (loss), net of reclassification
    adjustments and taxes (unaudited)                  -              -              -          1,654             -         1,654
                                                                                                                     ------------
  Total comprehensive income
    (unaudited)                                        -              -              -              -             -       171,168
                                           -------------  -------------  -------------  -------------  ------------  ------------

Balance at September 30, 2000
  (unaudited)                             $       16,274    $11,847,859  $ (5,465,640)    $  (18,592)   $         -    $6,379,901
                                           =============    ===========   ============    ===========  ============   ===========

</TABLE>


<PAGE>




                      ACORN HOLDING CORP. AND SUBSIDIARIES
                  Consolidated Interim Statements of Cash Flows

                         Nine months ended September 30,

                                   (Unaudited)

                                                    2000                1999
                                                -------------       ------------

Cash flows from operating activities
   Net income (loss)                             $   169,514         $ (685,651)
   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities
      Depreciation and amortization                  310,565             288,033
      Deferred income taxes                           99,566              78,875
      (Increase) decrease in assets
          Accounts receivable                      (180,046)           (105,187)
          Inventories                               (70,602)             158,540
          Prepaid expenses                               951             (4,485)
          Other assets                               (2,605)             (3,184)
      Increase (decrease) in liabilities
          Accounts payable                            92,937              67,651
          Accrued expenses                           217,638            (39,251)
          Deferred income                          (225,000)           (225,000)
                                                 -----------          ----------

             Net cash provided by (used in)
               operating Activities                  412,918           (469,659)
                                                 -----------          ----------

Cash flows from investing activites
      Purchase of machinery and equipment          (483,174)           (125,650)
      Proceeds from redemption of investments          5,130             452,552
      Note receivable proceeds                       150,236             150,236
                                                 -----------          ----------

             Net cash (used in) provided
               by investing Activities             (327,808)             477,138
                                                 -----------          ----------

Cash flows from financing activities
      Payment of long-term debt                     (90,797)            (89,796)
      Proceeds from line of credit                  100,000                    -
                                                 -----------          ----------

             Net cash provided by (used in)
               financing Activities                    9,203            (89,796)
                                                 -----------          ----------

             NET INCREASE (DECREASE) IN CASH
             AND CASH EQUIVALENTS                     94,313            (82,317)

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

Cash and cash equivalents at
end of period                                     $1,050,670          $1,044,521
                                                 -----------          ----------


<PAGE>


                      ACORN HOLDING CORP. AND SUBSIDIARIES
               Notes to Consolidated Interim Financial Statements

                               September 30, 2000

                                   (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 its 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, n 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 nine months ended September
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 share outstanding
         for all periods have been changed to reflect the 5-for-2 reverse stock
         split. As a result, fractional shares which would otherwise be
         issuable, will have only the right to receive cash.


<PAGE>


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

     Sales  for the  three-month  period  ended  September  30,  2000  increased
$756,992 from the three-month  period ended September 30, 1999,  while sales for
the nine-month  period ended  September 30, 2000 increased  $2,263,775  from the
nine-month  period ended  September 30, 1999.  The Company had an operating loss
for the three months ended September 30, 2000 of $6,453 and an operating  profit
of  $232,914  for the nine  months  ended  September  30,  2000,  as compared to
operating  losses of $153,855 and $636,020,  respectively,  over the  comparable
prior year periods. The principal reason for the improved financial  performance
was the result of the higher  demand for the  Company's  products.  The  Company
believes, based on its present orders, that the present trend should continue in
the fourth quarter.

         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 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. 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 September 30, 2000.


<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, 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