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 September 30, 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 November 19, 1997, 3,492,430 shares of $.001 par value Common Stock of the
registrant were outstanding.

Index schedule found on Page No. 2




                                      - 1 -


<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.
                           -------------------------

                                      INDEX
                                      -----
<TABLE>
<CAPTION>

                                                                            Page No.
                                                                            -------- 
<S>                                                                          <C>

PART I.     FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Balance Sheets - September 30, 1997 and March 31, 1997       3

        Condensed Statements of Operations - Six Months and Three Months
          Ended September 30, 1997 and 1996                                    4

        Condensed Statements of Cash Flows - Six Months Ended September
          30, 1997 and 1996                                                    5

        Notes to Condensed Financial Statements                              6 - 8

Item 2. Management's Discussion and Analysis of Financial 
          Condition and Results of Operations                                9 - 12

Part II.    OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K                                      13

SIGNATURES                                                                    14
</TABLE>
















                                      - 2 -

<PAGE>




PART I.     FINANCIAL INFORMATION

Item 1.     Financial Statements

                           ECOTYRE TECHNOLOGIES, INC.
                            CONDENSED BALANCE SHEETS

                                     ASSETS
<TABLE>
<CAPTION>
                                                                        As of           As of
                                                                 September 30, 1997 March 31, 1997
                                                                     (Unaudited)
                                                                 ------------------ --------------
<S>                                                                  <C>           <C>
ASSETS

Current:

  Cash                                                                $   30,853   $   127,392
  Account receivable net of allowance for
       doubtful accounts of $17,000                                    1,379,679       958,798
  Inventories                                                            944,342       431,561
  Prepaid expenses                                                       446,281       241,087
  Other current assets                                                   106,203       120,999
                                                                      ----------    ----------
       Total current assets                                            2,907,358     1,879,837
Property, plant and equipment, less accum depr.                        2,342,561     2,295,089
Security deposits                                                        232,420       244,815
Other assets                                                             280,545       396,003
                                                                      ----------    ----------
                                                                      $5,762,884    $4,815,744
LIABILITIES AND STOCKHOLDERS' EQUITY

Current:

  Current maturities of long-term debt                                $   74,223    $  115,000
  Accounts payable                                                     1,188,867     1,003,386
  Accrued expenses                                                       230,495       149,687
     Preferred stock dividends payable                                    60,139       120,277
  Current maturities of capitalized leases                                 5,160         7,979
  Current maturities of machinery loan                                   236,144       150,011
                                                                      ----------    ----------
            Total current liabilities                                  1,795,028     1,546,340
  Long-term debt, less current maturities                                132,381       150,000
  Capitalized leases, less current maturities                                  -        16,711
  Machinery loan, less current maturities                                669,559       849,989
  Deferred rent credits                                                  319,799       313,169
                                                                      ----------    ----------
                Total liabilities                                      2,916,767     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;
       494,000 issued and outstanding (liquidation value of $494,756)    494,756             -
  Class B Preferred, $.001 par value, 675,000 shares authorized;
       450,000 issued and outstanding (liquidation value $450,000)        450,000             0
  Common Stock, $.001 par value 30,000,000 shares authorized;
       issued and outstanding - 2,957,752 and 908,143                      2,958           908
  Paid in capital                                                     10,532,577     7,852,407
  Deficit                                                             (8,634,174)   (7,106,870)
                                                                      ----------    ----------
                                                                      $2,846,117    $  746,445
                                                                      ----------    ----------
       Total stockholder's equity                                     $5,762,884    $4,815,744
                                                                      ==========    ==========
<FN>
                 See accompanying notes to financial statements
</FN>
</TABLE>
                                      - 3 -

<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                  For the Six Months Ended              For the Three Months Ended
                                       September 30,                           September 30,
                                -----------------------------           ---------------------------   
                                   1997               1996                 1997             1996
                                   ----               ----                 ----             ---- 
                               (Unaudited)         (Unaudited)          (Unaudited)      (Unaudited)
                                -----------------------------            --------------------------   

<S>                             <C>                 <C>                 <C>              <C>       
Net sales                       $2,137,237          $  801,337          $1,015,976       $  582,535
Cost of sales                    2,212,851           1,688,378           1,108,661        1,047,724
                                ----------          ----------          ----------       ----------
 Gross (loss)                      (75,614)           (887,041)            (92,685)        (465,189)
                                ----------          ----------          ----------       ----------
Operating expenses:
  Selling and shipping             367,610             312,251             205,270          142,559
  General and administrative       575,590             570,987             290,999          287,918
                                ----------          ----------          ----------       ----------
  Total operating expenses         943,200             883,238             496,269          430,477
                                ----------          ----------          ----------       ----------

Loss from Operations            (1,018,814)         (1,770,279)           (588,954)        (895,666)
                                ----------          ----------          ----------       ----------


Other Expenses, income

  Interest expense, net of
       interest income              68,077              14,975              24,795           16,728
  Loss on Marketable
       Securities                   93,783             -                      -                -
                               -----------        ------------           ---------        ---------
  Total Other Expenses             161,860              14,975              24,795           16,728
Loss Before Taxes               (1,180,674)         (1,785,254)           (613,749)        (912,394)
  Income Taxes                      10,355               3,197                (102)            (552)
                               -----------        ------------           ---------        ---------
Net loss                       $(1,191,029)       $ (1,788,451)          $(613,647)       $(911,842)
                               -----------        ------------           --------- 
Preferred stock dividends 
 (Note 3)                          521,198             125,076             184,923           33,062
Net loss attributable to common
 stockholders                  $(1,712,227)       $ (1,913,527)          $(798,570)       $(944,904)
                               ===========        ============           =========        =========
Net loss per share 
  (Notes 3 and 4)              $     (1.09)       $      (4.27)          $   (0.37)       $   (2.10)
                               ===========        ============           =========        =========
<FN>
                 See accompanying notes to financial statements.
</FN>
</TABLE>
















                                      - 4 -

<PAGE>


                           ECOTYRE TECHNOLOGIES, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                            Six Months Ended
                                                              September 30,
                                                       --------------------------
                                                           1997          1996
                                                       --------------------------

<S>                                                    <C>            <C>
Cash flows from operating expenses:
  Net loss                                             $(1,191,029)   $(1,788,451)
  Adjustments to reconcile net loss to net cash used
       in operating activities:
       Depreciation and amortization                       103,330        109,570
       Deferred rent                                         6,630         20,504
       Loss on sale of marketable securities                93,783              -
  Decrease (increase) in assets:
       Accounts receivable                                (420,881)      (132,625)
       Inventory                                          (512,781)      (194,860)

       Other assets                                        (75,822)       (51,766)

  Increase (decrease) in liabilities:
       Accounts payable                                    185,481        192,761
       Accrued expenses                                     80,808        (25,631)
                                                        ----------     ----------
Net cash used in operating activities:                  (1,730,481)    (1,870,498)
                                                        ----------     ----------
Cash flows from investing activities:
  Proceeds from sale of marketable securities:             356,217              -
  Capital expenditures - net                              (150,802)      (550,895)
                                                        ----------     ----------    
Net cash provided by (used in) investing activities        205,415       (550,895)
                                                        ----------     ----------
Cash flows from financing activities:
  Proceeds from sale of capital stock                    1,600,750              -
  Repayment of working capital loan                        (58,396)             -
  Repayment of bank loan                                         -      (200,000)
  Proceeds from bank loan                                        -       396,333
  Repayment of capitalized lease obligations and
       equipment loans                                    (113,827)       (51,311)
  Repayment of IPO expense                                       0         (1,600)
                                                        ----------     ----------    
Net cash provided by financing activities                1,428,527        143,422
                                                        ----------     ----------
Net decrease in cash                                       (96,539)    (2,277,971)
Cash and cash equivalents, beginning of period             127,392      2,782,952
                                                        ----------     ----------
Cash and cash equivalents, end of period                $   30,853     $  504,981
                                                        ==========     ==========
<FN>
                 See accompanying notes to financial statements
</FN>
</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, 1997.

  The  operating  results for the six months  ended  September  30, 1997 are not
necessarily  indicative  of the results to be expected  for the year ended March
31, 1998.

Note 2.     Inventories

     Inventories have been valued at the lower of cost or market. The components
of inventory at September 30, 1997 and March 31, 1997 consist of:
<TABLE>
<CAPTION>

                               September 30,               March 31,
                                   1997                      1997
                               ---------------------------------------

<S>                            <C>                      <C>           
           Raw materials       $    311,616             $      252,221

           Work in process           44,688                      9,765
           Finished goods           588,038                    169,575
                               ------------             --------------

                               $    944,342             $      431,561
                               ============             ==============
</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 preferred dividends. (See Note 4)
















                                      - 6 -


<PAGE>


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


Note 4.     Private Placements

  In July 1997,  the Company  completed a private  placement of its common stock
which  provided  net proceeds of  $1,037,250  by issuing  829,800  shares of its
common stock at a price of $1.25 per share.

  On September 26, 1997, the Company commenced a private placement of its common
stock which provided net proceeds  through  September 1997 of $63,000 by issuing
42,000  shares of its common stock at a price of $1.50 per share.  Subsequent to
September  30,  1997,  the Company  received an  additional  $500,000 by issuing
333,333 shares of its Common Stock in connection with this private placement.

Class A Redeemable Convertible Preferred Stock.

     Effective April 17, 1997, the Certificate of  Incorporation  of the Company
was amended upon approval from its redeemable Convertible Preferred shareholders
to modify their existing stock. The redemption provision has been eliminated and
the conversion rate of Preferred  Stock into Common Stock has been reduced.  The
Class A Convertible Preferred Stock is now convertible by multiplying the number
of  shares to be  converted  by the sum of $1.00  plus all  accrued  and  unpaid
dividends  divided by the lesser of $21.00 per share or 75% of the  closing  bid
price for a five day trading period  immediately  prior to the conversion  date.
Commencing  July 15, 1997,  each holder of Class A Convertible  Preferred  Stock
shall be  entitled  to  convert up to 25% of their  shares  per  month.  Through
September 30, 1997, 830,244 shares have been converted to Common Stock.

     The discount in the conversion rate of the  convertible  preferred stock to
common is required to be  reflected  as  additional  dividends  ratably over the
conversion period. Accordingly,  the Company recorded accredited preferred stock
dividends related to this discount of $521,198 or ($.33) per share (attributable
to the common  stockholders)  for the six months  ended  September  30, 1997 and
$184,923 or ($.09) per share  (attributable to the common  stockholders)  for 
the three months ended September 30, 1997.

Class B Convertible Preferred Stock.

  Effective April 17, 1997, the Certificate of  Incorporation of the Company was
amended upon approval from its Board of Directors to authorize 675,000 shares of
Class B  Convertible  Preferred  Stock,  with a par  value  of $.001  per  share
(liquidation preference $1.00 per share; cumulative dividend of 10%).

  In April 1997, a principal stockholder of the Company purchased 450,000 shares
of Class B Convertible  Preferred  Stock for $450,000.  Such preferred  stock is
convertible  into  common  stock by  multiplying  the  number  of  shares  to be
converted by the sum of $1.00 plus all accrued unpaid dividends divided by $2.45
per share. The holder of the Class B Convertible  Preferred Stock has agreed not
to convert or sell said stock until May 22, 1998.

Reverse Stock Split.

  On  June  2,  1997,  the  Company,  with  the  approval  of its  shareholders,
effectuated  a  one-for-seven  reverse  stock  split.  All  share  and per share
information  in the  financial  statements  reflects  the effects of the reverse
stock split.










                                      - 7 -
<PAGE>

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.

Note 6.     Supplemental Cash Flow Information

  Non-cash  investing  and financing  activities  during the three months period
ending September 30, 1997 was as follows:

<TABLE>

<S>                                                 <C>
  Exchange of Class A Convertible 
    Preferred shares for Common Stock               $       830,244

</TABLE>


                                      - 8 -

<PAGE>


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

General

  The Company operated as a wholesale  distributor of remolded  automobile tires
since its  inception in April 1993. In accordance  with its business  plan,  the
Company has substantially curtailed distribution  operations,  concentrating its
efforts on its manufacturing  operations.  In its distribution  operations,  the
Company  resold its products  primarily to retail tire  replacement  centers and
tire distributors.

  The Company commenced limited manufacturing operations in December 1995 at its
65,000 square foot leased facility in Holtsville, New York. See "Properties". To
commence  manufacturing,  the Company had purchased 20 mold presses,  molds, one
extruder,  one  buffing  machine  and related  ancillary  equipment.  Additional
equipment was purchased in 1996 to increase the  Company's  production  capacity
and limit down time due to  machinery  failures  and  maintenance.  The  Company
ordered  new molds from Italy in  November  1996 to be  utilized  in its current
presses  which should allow the Company to increase  its  production  of popular
high performance and light truck tires with  anticipated  higher profit margins,
decreasing its production of smaller tire sizes which are sold at lower margins.
The molds  have  arrived  at the  Company's  facility  and have  been  placed in
production.  Also, in March 1997, the Company  acquired certain of the assets of
Butler  Retreading,  Inc.,  a private  18 year old high  performance  retreading
Company based in Marietta,  Georgia.  Butler's equipment is expected to increase
the Company's present press capacity and position the Company to increase sales,
with  intended  higher  gross  profit  margins from the new mix of tires it will
produce. The asset acquisition,  which includes Butler's client base, machinery,
equipment  and  inventory,  was  financed  principally  by  the  proceeds  of  a
$1,000,000  loan from  PhoenixCor.  Inc., a wholly owned  subsidiary of Sumitoma
Bank.

On October 22, 1997, the Company entered into an Acquisition Agreement with Tire
Group International,  Inc. ("TGI"), a wholesale tire distributor. The closing of
this  transaction is subject to Board of Directors  approval and the securing of
necessary financing.
                                     - 9 -
<PAGE>

Results of Operations

  Six Months Ended September 30, 1997 Compared to Six Months Ended September 30,
1996.

  Net Sales.  The  Company's  net sales of  $2,137,237  for the six months ended
September 30, 1997 represent an increase of $1,335,900 compared to net sales for
the six months ended  September 30, 1996.  The increase is  attributable  to the
Company's  operations  of its  manufacturing  facility for the entire six months
ending  September  30,  1997 as compared  to limited  operations  during the six
months ending September 30, 1996.

     Cost of  Sales.  The  Company's  cost of  sales  for the six  months  ended
September 30, 1997 was  $2,212,851 as compared to  $1,688,378,  representing  an
increase of $524,473.  This  increase was due primarily as a result of increased
manufacturing  costs to support  the  increase  in sales.  During the six months
ended  September 30, 1996,  the Company was  primarily in its initial  stages of
manufacturing,  operating  at an average  plant  capacity  of 20%.  The  Company
believes that its gross margin will continue to improve with increased sales.

  Gross Loss.  The Company's  gross loss for the six months ended  September 30,
1997 was ($75,614) as compared to a gross loss of ($887,041)  for the six months
ended September 30, 1996. The decrease in gross loss is directly  related to the
Company operating its facility at a higher percentage of capacity during the six
months ended September 30, 1997 than during the six month period ended September
30, 1996.

  Operating  Expenses.  The  Company  incurred  selling,  shipping,  general and
administrative  expenses of $943,200 in the six months ended  September 30, 1997
as compared  to  $883,238  in the six months  ended  September  30,  1996.  Such
expenses  represent 44% and 110% of net sales for the six months ended September
30, 1997 and September 30, 1996, respectively. The decline of such expenses as a
percentage of sales represents the Company's  continuing efforts to contain such
expenses  as it expands its  operations.  The  increase of selling and  shipping
expenses is a result of the  increased  sales and the  additional  selling costs
incurred therein.




                                      - 10 -
<PAGE>
  Other Expenses.  The Company  incurred net interest expense of $68,077 for the
six months ended September 30, 1997 compared to net interest  expense of $14,795
for the six months ended  September 30, 1996.  The increase in interest  expense
for the six months  ending  September  30,  1997 is the result of the  borrowing
principally related to the machinery loan.

     Net Loss.  As a result of the  foregoing  factors,  the  Company's net loss
decreased from ($1,788,451) for the six months ended September 30, 1996 to a net
loss of  ($1,191,029)  for the six months ended September 30, 1997. The net loss
attributable  to common  stockholders  decreased from  ($1,913,527) or $4.27 per
share  (adjusted for reverse  split) to  ($1,712,227)  or $(1.09) per share.  As
further  explained  in Note 4, the  principal  component  of the increase in the
preferred stock dividends relates to preferred dividends accredited of $521,198.

  Three Months Ended September 30, 1997 Compared to Three Months Ended September
30, 1996.

  Net Sales.  The Company's  net sales of $1,015,976  for the three months ended
September 30, 1997 represents an increase of $433,441  compared to net sales for
the three months ended September 30, 1996. The increase was  attributable to the
Company's  operations of its manufacturing  facility for the entire three months
ending  September  30, 1997 as compared to limited  operations  during the three
months ended September 30, 1996.

     Cost of Sales.  The  Company's  cost of sales for the  three  months  ended
September 30, 1997 was  $1,108,661 as compared to  $1,047,724,  representing  an
increase of $60,937.  This increase was due primarily to increased  purchases of
raw materials  required as the result of increased  sales.  The Company believes
that its gross margin will continue to improve with increased sales.

  Gross Loss. The Company's  gross loss for the three months ended September 30,
1997 was  ($92,685)  as  compared  to a gross loss of  ($465,189)  for the three
months ended September 30, 1996, a decrease of ($372,504). The decrease in gross
loss is  directly  related to the  Company  operating  its  facility at a higher
percentage  of capacity  during the three months ended  September  30, 1997 than
during the three months ended September 30, 1996.

  Operating and Other Expenses. The Company incurred selling,  shipping, general
and administrative  expenses of $496,269, and net interest expense of $24,795 in
the three  months ended  September  30, 1997 as compared to $430,477 of selling,
shipping,  general  and  administrative  expenses  and  $16,728 of net  interest
expense in the three months ended  September 30, 1996.  The increase in selling,
shipping,  general and administrative expenses were attributable primarily to an
increase in costs related to the increase in sales during the three months ended
September  30, 1997.  The 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 ($613,647) in the three months
ended  September  30, 1997 as compared to a net loss of  ($911,842) in the three
months ended  September  30, 1996,  a decreased  loss of $298,195.  The net loss
attributable  to common  stockholders  decreased from  ($944,904) or ($2.10) per
share (adjusted for reverse split) to ($798,570) or ($.37) per share.

Liquidity and Capital Resources

  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.










                                     - 11 -
<PAGE>

  The Company used cash in operating  activities in the amount of $1,730,481 for
the six months ended  September 30, 1997 and $1,870,498 for the six months ended
September 30, 1996 which was primarily related to the loss from operations.  The
Company  purchased  machinery  and  equipment  in the  amounts of  $254,132  and
$128,656 for the six months ending  September  30, 1997 and 1996,  respectively.
Financing  provided to fund operating  activities and fixed asset  purchases for
the six months ended  September  30, 1997 was  provided by the  proceeds  from a
private  placement of common stock of  $1,600,750  and proceeds from the sale of
marketable  securities of $356,217.  Operating and investing  activities for the
six months  ended  September  30, 1996 were funded from a bank line of credit of
$396,333.


  Accounts  Receivable  - At  September  30,  1997,  the net account  receivable
balance was  $1,379,679,  an increase of  $420,881.  The  increase is due to the
additional  sales realized during the six month period ended September 30, 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.

  In  connection  with the  acquisition,  the  Company  entered  into a new loan
agreement  with  PhoenixCor,  Inc., a wholly owned  subsidiary of Sumitoma Bank.
PhoenixCor,  Inc.  assumed  the  balance of the  previous  loan in the amount of
$139,589 and provided financing in the amount of $860,411,  for a total new loan
of  $1,000,000.  The loan is payable in 3 monthly  installments  of $11,205 from
April 1997 through June 1997, 3 monthly  installments  of $19,609 from July 1997
through  September  1997 and 42  monthly  installments  of  $28,012  thereafter,
including interest at 11.4% per annum. PhoenixCor,  Inc. has a security interest
in all of the Company's equipment.

     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.  As long as the  Company  is in
substantial  compliance with its obligations  under this Lease, it has 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% of 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. This option
may be exercised at any time up to July 31, 2005.  The Company is utilizing 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,  if any. As of September  30, 1997,  the Company has no  significant
commitments for additional capital  expenditures,  nor has the Company exercised
the purchase option.

  At September 30, 1997,  the Company had cash and cash  equivalents  of $30,853
and working  capital of  $1,112,330.  As further  discussed  in Note 4,  through
September 30, 1997, the Company raised approximately $1,600,750 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 believes that it will be required to
raise  additional  working  capital to meet its continuing  obligations.  If the
Company is unsuccessful  in achieving  positive cash flow from its operations or
generating additional working capital, the Company's business will be materially
and adversely affected.




                                     - 12 -
<PAGE>

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.

     Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this report are
forward-looking   statements  that  involve  certain  risks  and   uncertainties
including but not limited to, risks  associated  with the  uncertainty of future
financial  results,  additional  financing  requirements,   development  of  new
products,  regulatory approval processes,  the impact of competitive products or
pricing,  unpredictability  of patent  protection,  technological  changes,  the
effect of economic conditions and other uncertainties  detailed in the Company's
filings with the Securities and Exchange Commission.
























                                     - 13 -

<PAGE>


PART II.    OTHER INFORMATION

ITEM 6.     Exhibits and Reports on Form 8-K

       (a)  Exhibits
            ---------   

            27 - Financial Data Schedule (for electronic submission only)

       (b)  Reports on Form 8-K
            -------------------

            None














                                      - 14-


<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  :    November 19, 1997        ECOTYRE TECHNOLOGIES, INC.
                                     --------------------------
                                     (Registrant)

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















                             - 15-