UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB/A

                               AMENDMENT NO. 1
                               ------------------
(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the quarterly period December 31, 1997

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

For the transition period from ___________ to __________.

                         Commission file number 0-27240

                           ECOTYRE TECHNOLOGIES, INC.
                           --------------------------   
       (Exact name of small business issuer as specified in its charter)

          Delaware                                     11-3234026
(State of other jurisdiction of                     (I.R.S. Employer
 incorporation or organization)                    Identification No.)

                 895 Waverly Avenue, Holtsville, New York 11742
                 ----------------------------------------------
                    (Address of principal executive offices)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 of 15 (d) of the  Exchange Act during the past 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
                                -----     -----

     As of February 23, 1998,  3,148,311  shares of $.001 par value Common Stock
of the registrant were outstanding.

     Index schedule found on Page No. 2







<PAGE>
PART I.     FINANCIAL INFORMATION
Item 1.     Financial Statements
                           ECOTYRE TECHNOLOGIES, INC.
                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                     ASSETS
                                                           As of                   As of
                                                     December 31, 1997       March 31, 1997
                                                        (Unaudited)
                                                     -----------------       --------------
<S>                                                  <C>                 <C>
ASSETS

Current:

  Cash                                               $       25,191      $      127,392
  Account receivable net of allowance for
       doubtful accounts of $25,000 and $17,000             709,403             958,798
  Inventories (Note 2)                                      478,916             431,561
  Prepaid expenses                                          446,281             241,087
  Other current assets                                      166,436             120,999
                                                     --------------      --------------        
       Total current assets                               1,826,227           1,879,837
Property, plant and equipment, less accum depr.           2,384,269           2,295,089
Security deposits                                           232,420             244,815
Other assets                                                250,000             396,003
                                                     --------------      --------------  
  Total Assets                                       $    4,692,916      $    4,815,744
                                                     ==============      ==============  
LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Current maturities of long-term debt               $         -        $       115,000
  Notes  payable                                            141,550                -
  Accounts payable                                          870,439           1,003,386
  Accrued expenses                                          196,364             149,687
  Preferred stock dividends payable                            -                120,277
  Current maturities of capitalized leases                    3,896               7,979
  Current maturities of machinery loan                      336,144             150,011
                                                     --------------     --------------- 
            Total current liabilities                     1,548,393           1,546,340
  Long-term debt, less current maturities                   150,000             150,000
  Capitalized leases, less current maturities                  -                 16,711
  Machinery loan, less current maturities                   534,993             849,989
  Deferred rent credits                                     319,799             313,169
                                                     --------------     ---------------
               Total liabilities                          2,553,185           2,876,209
                                                     --------------     ---------------  
Class A Redeemable Convertible Preferred - 
       2,000,000 shares authorized; 
       issued and outstanding - 1,202,775 
       (redemption amount of $1,202,775)                       -              1,193,090
                                                     --------------      --------------  
Stockholders' equity (Note 4):
  Serial Preferred Stock,  $.001 par value,  
  1,325,000 shares  authorized;  none issued                   -                   -
  Class A Preferred Stock, $.001 par value, 
       2,000,000 authorized; 252,114 issued and 
       outstanding (liquidation value of $252,114)          252,114                -
  Class B Preferred, $.001 par value, 675,000 
       shares authorized; 450,000 issued and outstanding 
       (liquidation value $450,000)                         450,000                -
  Common Stock, $.001 par value 30,000,000 shares 
       authorized; issued and outstanding - 
       3,121,134 and 908,143                                  3,121                 908
  Paid in capital                                        11,886,121           7,852,407
  Deficit                                               (10,451,625)         (7,106,870)
                                                     --------------    ----------------    
                                                     $    2,139,731    $        746,445
                                                     --------------    ----------------  
       Total stockholder's equity                    $    4,692,916    $      4,815,744
                                                     ==============    ================  
<FN>
                 See accompanying notes to financial statements
</FN>
</TABLE>
<PAGE>
     Operating/Other Expenses. The Company incurred selling,  shipping,  general
and administrative  expenses of $444,999, and net interest expense of $26,669 in
the three  months  ended  December  31, 1997 as compared to $479,183 of selling,
shipping, general and administrative expenses and $5,766 of net interest expense
in the three months ended December 31, 1996. The decrease in selling,  shipping,
general and administrative  expenses were attributable primarily to the decrease
in costs related to the decrease in sales during the three months ended December
31, 1997.  The increase in interest  expenses is primarily  due to the Company's
higher outstanding borrowing principally related to the machinery loan.

     Net Loss.  The Company  sustained a net loss of  ($1,600,126)  in the three
months ended December 31, 1997 as compared to a net loss of  ($1,121,974) in the
three months ended  December 31, 1996,  an increased  loss of $478,152.  The net
loss attributable to common stockholders  increased from ($1,183,583) or ($1.68)
per share (adjusted for reverse split) to ($1,817,451) or ($.58) per share.

Liquidity and Capital Resources

     At December 31, 1997, the Company had cash and cash  equivalents of $25,191
and  working  capital of  $277,834.  As  further  discussed  in Note 4,  through
December 31, 1997, the Company raised approximately  $2,100,750 from the private
placement  of  common  stock and has  effectuated  an  amendment  to its Class A
Convertible  Preferred  stock  removing  the  requirement  to pay  approximately
$1,325,000 on January 15, 1998. The Company will be required to raise additional
working  capital  to  meet  its  continuing  obligations.   If  the  Company  is
unsuccessful in generating  additional  working capital,  the Company's business
will be materially and adversely affected.

     As indicated in the Company's  annual report on Form 10-KSB,  the Company's
financial  statements have been prepared assuming that the Company will continue
operating as a going concern.  The Company has sustained  losses since inception
and requires  additional working capital.  These factors raise substantial doubt
about the  Company's  ability to  continue  as a going  concern.  The  financial
statements do not include any adjustments  that might result from the outcome of
this uncertainty.

     The Company used cash in operating  activities  in the amount of $2,269,439
for the nine months ended  December 31, 1997 and  $3,054,692 for the nine months
ended December 31, 1996 which was primarily related to the loss from operations.
The Company  purchased  machinery  and  equipment in the amounts of $251,622 and
$571,801 for the nine months  ending  December 31, 1997 and 1996,  respectively.
Financing  provided to fund operating  activities and fixed asset  purchases for
the nine months ended  December  31, 1997 was  provided by the  proceeds  from a
private  placement of common stock of  $2,100,750  and proceeds from the sale of
marketable  securities of $356,217.  Operating and investing  activities for the
nine months  ended  December  31, 1996 were funded from a bank line of credit of
$396,333.

     Accounts  Receivable  - At December 31,  1997,  the net account  receivable
balance was $709,403, a decrease of $249,395. The decrease is due to the reduced
sales realized  during the three month period ended  December 31, 1997.  Payment
terms range from cash payment to various net terms in  accordance  with industry
practice.  During the current  fiscal  year,  the Company has not  incurred  any
significant write-offs.

     On  March  21,  1997,  the  Company   acquired  certain  assets  of  Butler
Retreading,  Inc.  The  aggregate  purchase  price  was  approximately  $939,000
consisting of $750,000 in cash provided by long term financing and 42,857 shares
of common  stock of the  Company  valued at  $189,000,  or $4.41 per share,  the
quoted  market  price of the  Company's  shares  as of March  21,  1997.  During
September,  1997, the Company received and installed substantially all equipment
purchased from Butler.
<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.

Dated  :    February 24, 1998             ECOTYRE TECHNOLOGIES, INC.
                                          (Registrant)

                                          By:  /s/ Lawrence Dobroff
                                              -------------------------
                                              Lawrence Dobroff,
                                              Chief  Financial Officer