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

                                   FORM 10-QSB

(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, 1996

[ ]  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 13, 1997, 5,115,000 shares of $.001 par value Common Stock of the
registrant were outstanding.

Index schedule found on Page No. 2

Page 1 of 12 pages


                                      - 1 -


<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.

                                      INDEX

                                                                     Page No.

PART I.     FINANCIAL INFORMATION

Item 1.     Financial Statements

  Condensed Balance Sheets - December 31, 1996 and March 31, 1996         3

  Condensed Statements of Operations - Nine Months and Three Months
       Ended December 31, 1996 and 1995                                   4

  Condensed Statements of Cash Flows - Nine Months Ended December
       31, 1996 and 1995                                                  5

  Notes to Condensed Financial Statements                             6 - 7

Item 2.    Management's Discussion and Analysis of 
           Financial Condition and Results of Operations             7 - 10

Part II.    OTHER INFORMATION

Item 6.     Exhibits and Reports on Form 8-K                             11

SIGNATURES                                                               12
















                             - 2 -

<PAGE>




PART I.     FINANCIAL INFORMATION

Item 1.     Financial Statements

                           ECOTYRE TECHNOLOGIES, INC.
                            CONDENSED BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                       As of            As of
                                                 December 31, 1996   March 31, 1996
                                                 -----------------   -------------- 
                                                    ( Unaudited )
<S>                                                <C>             <C> 

Current Assets:
  Cash and cash  equivalents                       $   832,576      $  2,782,952
  Accounts receivable, net of allowance for 
       doubtful accounts of $17,000 and $11,000        610,351            65,174
  Inventories (Note 2)                                 486,564           340,449
  Prepaid expenses and other current assets            185,174           160,806
                                                   -----------      ------------        
       Total current assets                          2,114,665         3,349,381
                                                   -----------      ------------
  Property, plant and equipment, less 
       accumulated depreciation                      1,661,010         1,258,008
  Other assets                                         117,816            97,471
                                                   -----------      ------------        
                                                   $ 3,893,491       $ 4,704,860
                                                   ===========      ============       

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Notes payable - bank                             $   396,333       $   200,000
  Current maturities of long term debt                 225,000           150,000
  Accounts payable and accrued expenses              1,013,404           500,946
  Current maturity of capitalized leases 
        and equipment loans                            116,713           106,771
                                                    -----------     ------------        
       Total current liabilities                     1,751,450           957,717
  Long-term debt                                          -               75,000
  Capitalized leases and equipment loans, 
       less current maturities                          58,270           146,782
  Deferred rent credits                                302,917           272,160
                                                   -----------      ------------        
       Total liabilities                             2,112,637         1,451,659
                                                   -----------      ------------        
  Class A Redeemable Convertible Preferred 
       Stock, 2,000,000  shares authorized; 
       issued and outstanding - 1,202,775
       (redemption amount of $1,202,775)             1,191,590         1,125,182
                                                   -----------      ------------          
  Stockholders' Equity (Note 4)
       Preferred Stock, $.001 par value 
       2,000,000 shares authorized; none issued           -                -
       Common Stock, $.001 par value 20,000,000 
       shares authorized, issued and 
       outstanding - 5,115,000 and 3,115,000             5,115             3,115
       Paid in capital                               7,189,700         5,820,031
       Deficit                                      (6,605,551)       (3,695,127)
                                                   -----------      ------------        
            Total stockholders' equity                 589,264         2,128,019
                                                   -----------      ------------        
                                                  $  3,893,491      $  4,704,860
                                                   ===========      ============        
</TABLE>
                 See accompanying notes to financial statements

                                      - 3 -


<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.
                       CONDENSED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                For the Nine Months Ended       For the Three Months Ended
                                        December 31,                     December 31,
                                --------------------------      ----------------------------

                                   1996             1995                 1996            1995
                                   ----             ----                 ----            ----  
                                (Unaudited)      (Unaudited)          (Unaudited)     (Unaudited)
<S>                             <C>               <C>                <C>              <C> 

Net Sales                       $1,598,351        $  218,583           $  797,013       $   58,402

Cost of sales                    3,121,370           237,827            1,432,992           85,100
                                ----------        ----------           ----------       ----------        
Gross profit (loss)             (1,523,019)          (19,244)            (635,979)         (26,698)
                                ----------        ----------           ----------       ----------      

Operating and other expenses:

  Selling, shipping and 
  general and administrative     1,365,421         1,138,180              479,183          466,169
                                ----------        ----------           ----------       ----------      
  Interest, net of interest 
  income                            17,741           403,152                5,766          213,609

  Private placement 
  financing costs                     -              389,216                 -             389,216
                                ----------        ----------           ----------       ----------      
Total operating and other
  expenses                       1,383,162         1,930,548              484,949        1,068,994
                                ----------        ----------           ----------       ----------      
 Loss before taxes              (2,906,181)       (1,949,792)          (1,120,928)      (1,095,692)

 Provision for taxes 
    (Note 5)                         4,243            22,231                1,046           12,052
                                ----------        ----------           ----------       ---------- 

 Net loss                      $(2,910,424)      $(1,972,023)         $(1,121,974)     $(1,107,744)
                                ----------        ----------           ----------       ----------      
 Preferred stock dividends         186,686           127,422               61,609           60,379
  (Note 3)

 Net loss attributable to
  common shareholders          $(3,097,110)      $(2,099,445)        $(1,183,583)     $(1,168,123)
                               ===========       ===========         ============     ============      
 Net loss per share (Note 3)         $(.83)           $(1.39)              $(.24)           $(.67)


                 See accompanying notes to financial statements

</TABLE>

                                      - 4 -


<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                  Nine Months Ended
                                                    December 31,
                                                  1996           1995
                                                  ----           ----
                                              (Unaudited)     (Unaudited)
<S>                                            <C>            <C>

Cash flows from operating activities:
  Net loss                                     $(2,910,424)    $(1,972,023)
  Adjustments to reconcile net loss to net
       cash used in operating activities:
       Depreciation and amortization               168,799           9,130
       Deferred rent                                30,757         177,443
       Allowance for possible losses on
            accounts receivable                     6,000            8,000
  Amortization of original issue discount            -             672,544
  Decrease (increase) in assets:
       Accounts receivable                       (551,177)         170,907
       Inventory                                 (146,115)          62,953
       Other assets                               (44,713)          23,556
  Increase (decrease) in liabilities:
       Accounts payable and accrued expenses      392,181         (135,809)
                                              -----------      -----------        
  Net cash used in operating activities:       (3,054,692)        (983,299)
                                              -----------      -----------        
Cash flows from investing activities:
       Capital expenditures - net                (571,801)        (341,819)
                                              -----------      -----------        
  Net cash used in investing activities          (571,801)        (341,819)
                                              -----------      -----------        
Cash flow from financing activities:
       Proceeds from sale of stock              1,558,354        5,329,404
       Proceeds from bank loan                    396,333             -
       Repayment of bank loan                    (200,000)            -
       Proceeds from working capital loans           -             100,000
       Repayment of working capital loans            -            (100,000)
       Proceeds from long term notes                 -             225,000
       Net proceeds from bridge financing            -             807,940
       Repayment of bridge financing                 -          (1,075,000)
       Repayment of capitalized lease obligations
          and equipment loans                     (78,570)         (73,059)
       Dividends paid                                -             (60,000)
                                              -----------      -----------        
  Net cash provided by financing activities     1,676,117        5,154,285
                                              -----------      -----------        
  Net increase (decrease) in cash              (1,950,376)       3,829,167
  Cash and cash equivalents, beginning 
       of period                                2,782,952           49,386
                                              -----------      -----------        
  Cash and cash equivalents, end of period    $   832,576      $ 3,878,553
                                              ===========      ===========        

                 See accompanying notes to financial statements

</TABLE>





                                  - 5 -


<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1.     Basis of Presentation

  The accompanying unaudited condensed financial statements included herein have
been prepared in accordance with generally  accepted  accounting  principles for
interim period  reporting in conjunction  with the  instructions to Form 10-QSB.
Accordingly,  these statements do not include all of the information required by
generally accepted accounting  principles for annual financial  statements,  and
are subject to year-end  adjustments.  In the opinion of  management,  all known
adjustments  (consisting of normal  accruals and reserves)  necessary to present
fairly the interim  financial  results for the period have been included.  It is
suggested  that  these  interim  statements  be read  in  conjunction  with  the
financial  statements and related notes included in the Company's 10-KSB for the
year ended March 31, 1996.

  The  operating  results for the nine and three months ended  December 31, 1996
are not necessarily  indicative of the results to be expected for the year ended
March 31, 1997.

Note 2.     Inventories

     Inventories have been valued at the lower of cost or market. The components
of inventory at December 31, 1996 and March 31, 1996 consist of:

<TABLE>
<CAPTION>

                                      December 30,           March 31,
                                          1996                 1996
                                      -------------        -------------
<S>                                   <C>                  <C>  
 
                 Raw materials        $   242,336          $   207,280

                 Work in process           18,508                4,052

                 Finished goods           225,720              129,117
                                      -----------          -----------      
                                      $   486,564          $   340,449
                                      ===========          ===========      
</TABLE>

Note 3.     Net Loss Per Share

  Net loss per share is based on the  weighted  average  number of Common  Stock
outstanding  during each period.  Common Stock equivalents and other potentially
dilutive  securities are antidilutive.  Net loss has been adjusted for accretion
of and preferred dividends.


                                  - 6 -


<PAGE>




                           ECOTYRE TECHNOLOGIES, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                                   (Continued)


Note 4.     Initial Public Offering

  In  December,  1995,  the  Company  completed  an initial  public  offering of
1,725,000  units.  Each unit  consisted  of one  share of  Common  Stock and one
redeemable Common Stock purchase warrant. Following the initial public offering,
3,115,000  shares of Common Stock and warrants to purchase  1,725,000  shares of
Common Stock were outstanding.  The warrants are exercisable at $5.00 per share,
subject to  adjustment,  and expire on December  12,  1998.  The Company has the
right to redeem any or all of the warrants at a price of $.01 per warrant,  upon
giving 30 to 60 days' notice,  after a period during which the closing bid price
for the Company's Common Stock for a period of twenty  consecutive  trading days
ending three days prior to the date of the notice of  redemption  has equaled or
exceeded $6.50 per share.

Note 5.     Income Taxes

  Income taxes are based on  annualized  statutory  federal and state income tax
rates.  The provision for income taxes exclude a benefit for net operating  loss
carryforwards.

Item 2.     Management's Discussion and Analysis of Financial Condition 
            and Results of Operation

General

  The Company had  operated as a wholesale  distributor  of remolded  automobile
tires since its inception in April, 1993 through  December,  1995. In accordance
with  its  business  plan,  the  Company  substantially  curtailed  distribution
operations concentrating its efforts on commencing manufacturing  operations. In
its distribution operations,  the Company resold its product primarily to retail
tire replacement centers and tire distributors.  In the Company's  manufacturing
operations,  remolded  tires are created by  remanufacturing  a previously  used
high-quality passenger automobile tire casing and attaching rubber from sidewall
to sidewall.

  93.5% of the  Company's  revenues for the nine months ended  December 31, 1996
was derived from the Company's  limited  manufacturing  operations.  100% of the
revenues  for the nine months  ended  December  31,  1995 was  derived  from the
distribution of remolded tires manufactured by third parties.

Results of Operations

  Nine Months Ended December 31, 1996 Compared to Nine Months Ended December 31,
1995.

  Net Sales.  The Company's  net sales of  $1,598,351  for the nine months ended
December 31, 1996 represent an increase of $1,379,768  compared to net sales for
the nine months ended December 31, 1995. The increase  resulted from the Company
commencing the  manufacture of its own tires and curtailing the  distribution of
tires manufactured by third parties.

  Cost of Sales.  The Company's cost of sales for the nine months ended December
31, 1996 was  $3,121,370  as compared to $237,827,  representing  an increase of
$2,883,543.  This increase was primarily due to  substantial  costs  incurred to
operate its  manufacturing  facility at an increased  capacity as well as in the
third  quarter,  to prepare to operate at maximum  capacity,  which costs become
disproportionate to net sales until such time as full capacity is achieved.  The
Company's  manufacturing facility is currently operating at approximately 40% of
its full capacity. For the nine month period, the Company operated at an average
plant  capacity  of  approximately   30%,  after  taking  into  account  limited
production  for the first few months of this  period.  Such  limited  production
resulted,  in part, from unanticipated  repair and maintenance and a higher than
anticipated turn-over rate for factory trained employees, which rate the Company
believes is now  stabilizing.  The Company  anticipates that certain fixed costs
and expenses (approximating  $600,000),  such as rent, utilities,  insurance and
depreciation, will substantially decrease on a per unit basis as production


                                  - 7 -

<PAGE>

increases,  as will the per unit cost of labor.  The increased cost of sales
was also  attributable  to the  incurrence  of  certain  non-recurring  expenses
necessary to commence  manufacturing  operations,  including  personnel training
(approx. $200,000), raw material product testing (approx. $200,000),  consulting
expenses (approx. $60,000) and electrical repairs (approx. $50,000).

     Gross Profit  (Loss).  The  Company's  gross loss for the nine months ended
December 31, 1996 was  ($1,523,019) as compared to a gross loss of ($19,244) for
the nine months  ended  December  31,  1995,  an increase  of  $1,503,775.  This
increase was directly caused by the  manufacturing and training costs associated
with the initial  commencement  of its own  manufacturing  of remolded  tires as
compared  to no  manufacturing  and  training  costs in the  prior  period.  The
Company's direct overhead expenses also increased due to the initial start-up of
its  manufacturing  operations in 1996. The Company's  gross loss also increased
due to substantially  reduced selling prices to a large customer (accounting for
approximately  $125,000  of Net  Sales)  to  replace  third  party  manufactured
unacceptable tires previously  delivered to the customer by the Company when the
Company was solely a distributor.  The Company anticipates an increase in profit
margins upon the sale of higher margin light truck tires.

  Operating and Other Expenses. The Company incurred selling,  shipping, general
and  administrative  expenses of $1,365,421,  and interest expense of $17,741 in
the nine months ended  December 31, 1996 as compared to  $1,138,180  of selling,
shipping,  general and administrative  expenses and $403,152 of interest expense
and  $389,216 of private  placement  financing  costs in the nine  months  ended
December  31,  1995.   The   increases   in  selling,   shipping,   general  and
administrative  expenses  were  primarily  attributable  to  increased  salaries
(approx.  $300,000).  The decrease in interest expense is primarily attributable
to interest on long term notes  during the nine months  ended  December 31, 1995
that were paid by the end of fiscal 1996. In addition,  private  placement costs
were  incurred  during the nine months ended  December 31, 1995 (and paid by the
end of fiscal 1996) and no such costs were incurred during fiscal 1997.

  Net loss. The Company  sustained a net loss of ($2,910,424) in the nine months
ended  December 31, 1996 as compared to a net loss of  ($1,972,023)  in the nine
months ended December 31, 1995, an increased loss of $938,401.  The increase was
primarily  attributable to the diverting of its resources from the  distribution
business  to  the  commencement  of   manufacturing.   The  net  loss  was  also
attributable  to the  increased  rent  expense  ($163,643  or  198%)  at the new
manufacturing  facility,  consulting expenses ($109,778 or 515%),  non-recurring
initial start-up expenses and marketing and sales expenses,  all relating to its
manufacturing operations.

  Three Months Ended  December 31, 1996 Compared to Three Months Ended  December
31, 1995.

  Net Sales.  The  Company's  net sales of $797,013  for the three  months ended
December 31, 1996  represent  an increase of $738,611  compared to net sales for
the three  months ended  December 31, 1995.  The increase was due to the Company
commencing the  manufacture of its own tires and curtailing the  distribution of
tires manufactured by third parties.

  Cost of Sales. The Company's cost of sales for the three months ended December
31, 1996 was  $1,432,992  as compared  to $85,100,  representing  an increase of
$1,347,892.  This increase was primarily due to  substantial  costs  incurred to
prepare  to operate  the  facility  at  maximum  capacity,  which  costs  become
disproportionate to net sales until such time as full capacity is achieved.  The
Company's  manufacturing facility is currently operating at approximately 40% of
its full  capacity.  The  Company  anticipates  that  certain  fixed  costs  and
expenses, such as rent, utilities, insurance and depreciation will substantially
decrease on a per unit basis as production increases,  as will the per unit cost
of labor. The increase cost of sales for the quarter ended December 31, 1996 was
also attributable to the incurrence of certain non-recurring  expenses necessary
to commence  manufacturing  operations,  including  personnel  training (approx.
$75,000),  raw material product testing (approx.  $75,000),  consulting expenses
(approx. $10,000) and electrical repairs (approx. $25,000).

  Gross  Profit  (Loss).  The  Company's  gross loss for the three  months ended
December 31, 1996 was  ($635,979)  as compared to a gross loss of ($26,698)  for
the three months ended December 31, 1995, an increase of $609,281. This increase
was directly caused by the  manufacturing and training costs associated with the
initial  commencement of its own  manufacturing of remolded tires as compared to
no  manufacturing  costs in the prior  period.  The  Company's  direct  overhead
expenses  also  increased  due  to the  initial  start-up  of its  manufacturing
operations.  The Company anticipates an increase in profit margins upon the sale
of higher margin light truck tires.

                                  - 8 -
<PAGE>


  Operating and Other Expenses. The Company incurred selling,  shipping, general
and administrative  expenses of $479,183,  and interest expense of $5,766 in the
three  months  ended  December  31,  1996 as  compared  to  $466,169 of selling,
shipping,  general and administrative  expenses and $213,609 of interest expense
and  $389,216 in private  placement  financing  costs in the three  months ended
December  31,  1995.  Selling,  shipping,  general  and  administrative  expense
remained  basically steady for the periods.  The decrease in interest expense is
primarily  attributable  to interest on long term notes  during the three months
ended  December 31, 1995 that were paid by the end of fiscal 1996.  In addition,
private placement costs were incurred during the three months ended December 31,
1995 (and paid by the end of fiscal 1996) and no such costs were incurred during
fiscal 1997.

  Net loss. The Company sustained a net loss of ($1,121,974) in the three months
ended December 31, 1996 as compared to a net loss of  ($1,107,744)  in the three
months ended December 31, 1995, an increased  loss of $14,230.  The increase was
primarily  attributable to the diverting of its resources from the  distribution
business to the commencement of manufacturing.

Liquidity and Capital Resources

  The Company used cash in operating  activities in the amount of $3,054,692 for
the nine months  ended  December 31, 1996 and $983,299 for the nine months ended
December 31, 1995 which was primarily related to the loss from operations.  Cash
used in  investing  activities  in the amounts of $571,801  and $341,819 for the
nine months ended December 31, 1996 and 1995, respectively,  was principally for
the  purchase  of  machinery  and  equipment  to  commence   operations  of  its
manufacturing  facility.  Financing  provided to fund  operating  and  investing
activities  for the nine months  ended  December 31, 1996 was provided by a bank
line of credit of $396,333  and proceeds of  $1,558,354  from the sale of stock.
Financing  used to fund  operating and investing  activities for the nine months
ended December 31, 1995 was received from bridge financing and long term debt in
the amounts of $1,000,000 and $225,000,  respectively  and  $5,329,404  from the
Company's Initial Public Offering.

  In October,  1996, the Company  received gross proceeds of $2,000,000 from the
private sale of its common stock.  2,000,000 shares were sold at $1.00 per share
to an  aggregate  of 10 foreign  investors.  The sales were made  pursuant to an
exemption from the  registration  requirements of the Securities Act of 1933, as
amended,  under  Regulation  S  promulgated  thereunder.  The  net  proceeds  of
approximately  $1,558,354 received from this sale have been utilized for working
capital.

  In June, 1995, the holders of $1,092,929  principal amount of loans, notes and
debentures,  together with other  purchasers  of similar  notes and  debentures,
exchanged  them,  together  with  accrued and unpaid  interest  thereon,  for an
aggregate of 1,202,755 shares of Class A Redeemable  Convertible Preferred Stock
of the  Company.  The  Company  may  redeem the Class A  Redeemable  Convertible
Preferred  Stock at a  redemption  price of $1.00 per share on 60 days notice at
any time,  provided,  that prior to  January,  1997,  the Company may redeem the
Class A  Redeemable  Convertible  Preferred  Stock only if the Common  Stock has
closed above $7.50 per share for 20 consecutive trading days, whereupon a holder
can either convert the Class A Redeemable Convertible Preferred Stock or receive
the redemption  price for his Class A Redeemable  Convertible  Preferred  Stock.
Pursuant  to the terms  thereof,  the  holders of these  shares can  require the
Company to redeem  these  shares on or after  December  18, 1997 at a redemption
price of $1.00 per share and, in any event,  these shares are  redeemable  on or
after December 18, 1997 at the same redemption price.  Accordingly,  the Company
could be required to pay up to $1,202,775 in cash upon such redemption.

  The Company may need  financing to redeem its Class A  Redeemable  Convertible
Preferred Stock and to expand its manufacturing operations, if required.


  In May, 1995, the Company  purchased 20 mold presses,  molds,  an extruder,  a
building machine,  a buffing machine and related ancillary  equipment for use in
its new manufacturing  facility for an aggregate purchase price of approximately
$530,000 from a financial  institution  which had foreclosed on such  equipment.
After paying a portion of this purchase price,  the Company has agreed with this
financial  institution  to pay the remaining  $300,000  balance in equal monthly
installments of approximately  $10,000 per month over a three-year  period at an
interest  rate of 13.25%  per  annum.  This  financial  institution  has a first
priority security interest in such equipment collaterizing this loan.


                                  - 9 -


<PAGE>

  The  Company  has  entered  into a 10-year,  9-month  lease with one five year
renewal option for approximately 65,000 square feet of manufacturing,  warehouse
and office space in Holtsville,  New York during fiscal 1995, which provides for
minimum annual rental obligations of approximately  $282,750, plus utilities and
maintenance, subject to 5% annual increases. Commencing October 1, 1995, so long
as the Company is in  substantial  compliance  with its  obligations  under this
Lease,  the  Company  will  have  an  option  to  purchase  these  premises  for
$2,500,000.  If this  option has not been  exercised  by  October  1, 1997,  the
purchase price will increase by 5% at that date and on each anniversary  thereof
up to and  including  October 1, 2004. If the Company  elects to purchase  these
premises,  it will be required to tender a deposit  equal to 10% of the purchase
price and consummate the purchase within sixty (60) days  thereafter,  whereupon
the  balance  of the  purchase  price will be due.  The  Company  utilizes  this
facility  for its  manufacturing  operations,  as well  as for  warehousing  its
inventory and as its corporate offices.  The Company's capital  requirements may
change  depending upon numerous  factors and the Company may require  additional
financing  from  time to time,  particularly  in order to  effectuate  expansion
activities.

Seasonality

  While there is a year round demand for automobile tires, automobile tire sales
in the Northeastern  United States are generally strongest during the second and
third  calendar  quarters  of the  year.  Seasonality  may have an impact on the
Company's  operations including cash flow, insofar as the Company is required to
control inventory levels to reflect projected  quarterly sales.  However,  since
the  Company  anticipates  that  approximately  50% of its sales  will be in the
Western United States and other regions where all purpose  automobile  tires are
used year  round,  it does not  believe  that  seasonality  will have a material
adverse impact on its operations.



                                 - 10 -

<PAGE>


PART II.    OTHER INFORMATION

ITEM 6.     Exhibits and Reports on Form 8-K

       (a)  Exhibits

            None

       (b)  Reports on Form 8-K

            None






                                 - 11 -



<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 18, 1997             ECOTYRE TECHNOLOGIES, INC.
                                     (Registrant)

                                     By:  /s/ Vito F. Alongi
                                          Vito F.  Alongi,
                                          President, Treasurer and Principal    
                                          Financial Officer



                                  - 12 -

<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 18, 1997             ECOTYRE TECHNOLOGIES, INC.
                                     (Registrant)

                                     By:  __________________________________
                                          Vito F.  Alongi,
                                          President, Treasurer and Principal
                                          Financial Officer













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