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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2012

or

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

For the transition period from _______________ to
_______________

Commission File Number 333-181259

AUTO TOOL TECHNOLOGIES INC.(Exact name of registrant as specified in its charter)

|Nevada                                                               | N/A                              
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification No.)
|                                                                     |                                  
|101 1⁄2 Mary Street West Whitby, ON, Canada                            | L1N 2R4                          
|(Address of principal executive offices)                             | (Zip Code)                       

(905) 430-6433(Registrants telephone
number, including area code)

N/A(Former name, former address and
former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).[   ] YES     [X] NO

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

Large accelerated filer [   ]
    
    Accelerated
      filer                  
      [   ]Non-accelerated filer   [   ]
    (Do not check if a smaller reporting company)
    Smaller reporting company [X]


Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act [   ]
YES     [X] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act
after the distribution of securities under a plan confirmed by a
court.[   ] YES     [   ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date.
35,000,001 common shares issued and outstanding as of December 19,
2012.

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TABLE OF CONTENTS

|PART I  FINANCIAL INFORMATION | 3                                                                                          
|------------------------------ | -------------------------------------------------------------------------------------------
|                               |                                                                                            
|Item 1.                        | Financial Statements                                                                       
|                               |                                                                                            
|Item 2.                        | Managements Discussion and Analysis of Financial Condition
      and Results of Operations
|                               |                                                                                            
|Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                 
|                               |                                                                                            
|Item 4.                        | Controls and Procedures                                                                    
|                               |                                                                                            
|PART II  OTHER INFORMATION    | 9                                                                                          
|                               |                                                                                            
|Item 1.                        | Legal Proceedings                                                                          
|                               |                                                                                            
|Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                
|                               |                                                                                            
|Item 3.                        | Defaults Upon Senior Securities                                                            
|                               |                                                                                            
|Item 4.                        | Mine Safety Disclosures                                                                    
|                               |                                                                                            
|Item 5.                        | Other Information                                                                          
|                               |                                                                                            
|Item 6.                        | Exhibits                                                                                   
|                               |                                                                                            
|SIGNATURES                     | 11                                                                                         

2

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PART I  FINANCIAL INFORMATION

Item 1.        Financial
Statements

Our unaudited consolidated interim financial statements for the
three and nine month periods ended September 30, 2012 and 2011 form part of this
quarterly report. Unless otherwise specified our financial statements are
expressed in United States Dollars (US$) and are prepared in accordance with
United States generally accepted accounting principles.

3

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Auto Tool Technologies Inc.

September 30, 2012



|                                                     | Index
|---------------------------------------------------- | -----
|                                                     |      
|Consolidated Balance
      Sheets                    | F1  
|                                                     |      
|Consolidated Statements
      of Operations          | F2  
|                                                     |      
|Consolidated Statements
      of Cash Flows          | F3  
|                                                     |      
|Notes to the Consolidated
      Financial Statements | F4  

4

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Auto Tool Technologies Inc. Consolidated Balance Sheets

  (Expressed in US dollars)

|                                                                                                              |   | September 30, |   |   | December 31, |  
|------------------------------------------------------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                                                                              |   | 2012          |   |   | 2011         |  
|                                                                                                              |   | (Unaudited)   |   |   |              |  
|ASSETS                                                                                                        |   |               |   |   |              |  
|                                                                                                              |   |               |   |   |              |  
|Current Assets                                                                                                |   |               |   |   |              |  
|                                                                                                              |   |               |   |   |              |  
|Cash                                                                                                          | $ | 856           |   | $ | 19,215       |  
|Accounts receivable                                                                                           |   | 130,445       |   |   | 99,119       |  
|Other receivable                                                                                              |   |              |   |   | 10,296       |  
|Inventory                                                                                                     |   | 65,175        |   |   | 84,960       |  
|Prepaid expenses                                                                                              |   | 3,102         |   |   | 2,999        |  
|Due
      from related parties, short-term (Note 5)                                                           |   | 90,000        |   |   |             |  
|                                                                                                              |   |               |   |   |              |  
|Total Current Assets                                                                                          |   | 289,578       |   |   | 216,589      |  
|                                                                                                              |   |               |   |   |              |  
|Due from related parties, long-term (Note 5)                                                                  |   | 334,479       |   |   | 411,974      |  
|Property and equipment, net of accumulated depreciation of
      $21,424 (2011  $19,985) (Note 3)            |   | 2,433         |   |   | 3,079        |  
|                                                                                                              |   |               |   |   |              |  
|Total Assets                                                                                                  | $ | 626,490       |   | $ | 631,642      |  
|                                                                                                              |   |               |   |   |              |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                          |   |               |   |   |              |  
|                                                                                                              |   |               |   |   |              |  
|Current Liabilities                                                                                           |   |               |   |   |              |  
|                                                                                                              |   |               |   |   |              |  
|Checks written in excess of
      funds on deposit                                                            | $ | 54,558        |   | $ |             |  
|Accounts payable                                                                                              |   | 163,564       |   |   | 277,055      |  
|Accrued liabilities                                                                                           |   | 5,195         |   |   | 28,953       |  
|Due to related party (Note 5)                                                                                 |   | 8,607         |   |   | 16,000       |  
|Line of credit (Note 4)                                                                                       |   | 174,530       |   |   | 108,140      |  
|                                                                                                              |   |               |   |   |              |  
|Total Liabilities                                                                                             |   | 406,454       |   |   | 430,148      |  
|                                                                                                              |   |               |   |   |              |  
|Commitments and Contingencies (Note 1)                                                                        |   |               |   |   |              |  
|                                                                                                              |   |               |   |   |              |  
|Stockholders Equity                                                                                          |   |               |   |   |              |  
|                                                                                                              |   |               |   |   |              |  
|Preferred stock, $0.001 par value,
      50,000,000 shares authorized, no shares issued and outstanding       |   |              |   |   |             |  
|                                                                                                              |   |               |   |   |              |  
|Common stock, $0.001 par value, 200,000,000
      shares authorized, 35,000,001 shares issued and outstanding |   | 35,000        |   |   | 35,000       |  
|                                                                                                              |   |               |   |   |              |  
|Additional paid in capital (discount)                                                                         |   | (3,495        | ) |   | (3,495       | )
|                                                                                                              |   |               |   |   |              |  
|Retained earnings                                                                                             |   | 137,801       |   |   | 126,974      |  
|                                                                                                              |   |               |   |   |              |  
|Accumulated other comprehensive income                                                                        |   | 50,730        |   |   | 43,015       |  
|                                                                                                              |   |               |   |   |              |  
|Total Stockholders Equity                                                                                    |   | 220,036       |   |   | 201,494      |  
|                                                                                                              |   |               |   |   |              |  
|Total Liabilities and Stockholders Equity                                                                    | $ | 626,490       |   | $ | 631,642      |  

(The accompanying notes are an integral part of these unaudited
consolidated financial statements)

F-1

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Auto Tool Technologies Inc. Consolidated Statements of
Operations (Expressed in US dollars) 
  (Unaudited)

|                                                |   | Nine Months Ended |   |   | Three Months Ended |  
|----------------------------------------------- | - | ----------------- | - | - | ------------------ | -
|                                                |   | September 30,     |   |   | September 30,      |  
|                                                |   | 2012              |   |   | 2011               |  
|                                                |   |                   |   |   |                    |  
|Revenue                                         | $ | 640,697           |   | $ | 619,296            |  
|                                                |   |                   |   |   |                    |  
|Cost of Sales                                   |   | 401,486           |   |   | 393,773            |  
|                                                |   |                   |   |   |                    |  
|Gross Profit                                    |   | 239,211           |   |   | 225,523            |  
|                                                |   |                   |   |   |                    |  
|Expenses                                        |   |                   |   |   |                    |  
|                                                |   |                   |   |   |                    |  
|Bank charges and interest                       |   | 11,552            |   |   | 9,270              |  
|Selling, marketing and administrative           |   | 235,682           |   |   | 227,996            |  
|                                                |   |                   |   |   |                    |  
|Total Operating Expenses                        |   | 247,234           |   |   | 237,266            |  
|                                                |   |                   |   |   |                    |  
|Loss Before Other Income (Expense)              |   | (8,023            | ) |   | (11,743            | )
|                                                |   |                   |   |   |                    |  
|Other Income (Expense)                          |   |                   |   |   |                    |  
|                                                |   |                   |   |   |                    |  
|Gain (Loss) on foreign exchange                 |   | 7,260             |   |   | (14,254            | )
|Interest income (Note 5)                        |   | 11,590            |   |   | 11,877             |  
|                                                |   |                   |   |   |                    |  
|Income (Loss) before taxes                      |   | 10,827            |   |   | (14,120            | )
|                                                |   |                   |   |   |                    |  
|Income taxes                                    |   |                  |   |   |                   |  
|                                                |   |                   |   |   |                    |  
|Net Income (Loss)                               |   | 10,827            |   |   | (14,120            | )
|                                                |   |                   |   |   |                    |  
|Foreign currency translation adjustments        |   | 7,715             |   |   | (11,172            | )
|                                                |   |                   |   |   |                    |  
|Comprehensive Income (Loss)                     | $ | 18,542            |   | $ | (25,292            | )
|                                                |   |                   |   |   |                    |  
|Net Income (Loss) Per Share  Basic and Diluted | $ | 0.00              |   | $ | 0.00               |  
|                                                |   |                   |   |   |                    |  
|Weighted Average Shares Outstanding             |   | 35,000,001        |   |   | 30,000,000         |  

(The accompanying notes are an integral part of these unaudited
consolidated financial statements)

F-2

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Auto Tool Technologies Inc. Consolidated Statements of Cash
Flows (Expressed in US dollars) 
  (Unaudited)

|                                                                                |   | Nine Months Ended |  
|------------------------------------------------------------------------------- | - | ----------------- | -
|                                                                                |   | September 30,     |  
|                                                                                |   | 2012              |  
|Operating Activities                                                            |   |                   |  
|Net Income (Loss)                                                               | $ | 10,827            |  
|Adjustments to reconcile net income
      to cash used in operating activities: |   |                   |  
|Depreciation
      expense                                                      |   | 737               |  
|Changes in operating assets and liabilities:                                    |   |                   |  
|Prepaid
      expenses                                                          |   |                  |  
|Inventories                                                                     |   | 22,272            |  
|Accrued
      interest receivable                                               |   | (11,590           | )
|Accounts receivable                                                             |   | (27,387           | )
|Accounts payable and
      accrued liabilities                                  |   | (144,637          | )
|Net Cash Used in Operating
      Activities                                     |   | (149,778          | )
|Investing Activities                                                            |   |                   |  
|Repayment of related party loan                                                 |   | 44,897            |  
|Loans to related parties                                                        |   | (28,602           | )
|Net Cash Provided
      in Investing Activities                                 |   | 16,295            |  
|Financing Activities                                                            |   |                   |  
|Bank overdraft                                                                  |   | 53,518            |  
|Net change in line of credit                                                    |   | 61,477            |  
|Net Cash Provided
      By Financing Activities                                 |   | 114,995           |  
|Effect of Exchange Rate Changes on Cash                                         |   | 129               |  
|Decrease In Cash                                                                |   | (18,359           | )
|Cash - Beginning of Period                                                      |   | 19,215            |  
|Cash - End of Period                                                            | $ | 856               |  
|Supplemental Disclosures                                                        |   |                   |  
|Interest paid                                                                   | $ | 9,303             |  
|Income taxes paid                                                               | $ |                  |  

(The accompanying notes are an integral part of these unaudited
consolidated financial statements)

F-3

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Auto Tool Technologies Inc.Notes to the Consolidated
Financial Statements September 30, 2012 (Expressed in US dollars)

  (Unaudited)

|1. | Nature of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Auto Tool Technologies Inc. (the Company) was
      incorporated under the laws of the State of Nevada on May 10, 2011. Upon
      completion of an acquisition agreement, as described below, the Company
      acquired the business of DSL Products Limited. The Company is engaged in
      the sales and distribution of hand tools in Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | On December 30, 2011, the Company closed an acquisition
      agreement with Rossland Asset Management Ltd. (Rossland) in which the
      Company acquired DSL Products Limited (DSL), a private company fully
      owned by Rossland, in exchange for the issuance of 30,000,000 shares of
      common stock to Rossland.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2. | Basis of Presentation and Principles of
    Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The unaudited interim consolidated financial statements
      have been prepared in accordance with accounting principles generally
      accepted in the United States for interim financial information and with
      the Securities and Exchange Commission (SEC) instructions for companies
      filing Form 10-Q. In the opinion of management, the unaudited interim
      consolidated financial statements have been prepared on the same basis as
      the annual consolidated financial statements and reflect all adjustments,
      which include only normal recurring adjustments, necessary to present
      fairly the financial position as of September 30, 2012, and the results of
      operations and cash flows for the period then ended. The financial data
      and other information disclosed in the notes to the interim consolidated
      financial statements related to this period are unaudited. The results for
      the nine-month period ended September 30, 2012 are not necessarily
      indicative of the results to be expected for any subsequent quarter or the
      entire year ending December 31, 2012. The unaudited interim consolidated
      financial statements have been condensed pursuant to the Securities and
      Exchange Commission's rules and regulations and do not include all of the
      information and footnotes required by generally accepted accounting
      principles for complete financial statements. Therefore, these unaudited
      interim consolidated financial statements should be read in conjunction
      with the Companys annual audited consolidated financial statements and
      notes thereto for the year ended December 31, 2011, included in the
      Companys Registration Statement on Form S-1 filed on May 9, 2012 with the
      SEC.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | These financial statements and related notes are
      expressed in US dollars. The consolidated financial statements include the
      accounts of the Company and its wholly-owned subsidiary, DSL Products
      Limited. All inter- company accounts and transactions have been
      eliminated. The Companys fiscal year-end is December 31. The net assets
      and operations of DSL Products Limited are deemed to be the continuing
      entity for accounting purposes under the terms of the acquisition
      described in Note 3 of the December 31, 2011 financial statements included
      in the S-1 filed with the SEC on May 9, 2012. Accordingly, DSL Products
      Limited is deemed to have acquired the net assets and operations of Auto
      Tool Technologies Inc. on December 30, 2011. The comparative figures as of
      and for the three month and nine month periods ended September 30, 2011
      are those of DSL Products Limited alone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

F-4

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Auto Tool Technologies Inc.Notes to the Consolidated
Financial Statements September 30, 2012 (Expressed in US dollars)

  (Unaudited)

|3. | Property and Equipment
|-- | ----------------------

| |                                      |   | September 30, |   |   | December 31, |  
| | ------------------------------------ | - | ------------- | - | - | ------------ | -
| |                                      |   | 2012          |   |   | 2011         |  
| | Furniture and Fixtures               | $ | 13,376        |   | $ | 12,931       |  
| | Computer Equipment                   |   | 10,481        |   |   | 10,133       |  
| |                                      |   | 23,857        |   |   | 23,064       |  
| | Less: Accumulated
      Depreciation |   | (21,424       | ) |   | (19,985      | )
| |                                      | $ | 2,433         |   | $ | 3,079        |  

|4. | Line of Credit
|-- | --------------

| |                                                                                                                              |   | September 30, |  |   | December 31, | 
| | ---------------------------------------------------------------------------------------------------------------------------- | - | ------------- |  | - | ------------ | 
| |                                                                                                                              |   | 2012          |  |   | 2011         | 
| | Line of credit payable to bank, interest imputed at prime rate
      plus 1.55% per annum, secured by assets of the Company. | $ | 174,530       |  | $ | 108,140      | 
| |                                                                                                                              | $ | 174,530       |  | $ | 108,140      | 

|5. | Related Party Transactions                                                                                                                      
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                 
|   | a)                                                                                                                                              
|   |                                                                                                                                                 
|   | b)                                                                                                                                              
|   |                                                                                                                                                 
|6. | Subsequent Events                                                                                                                               
|   |                                                                                                                                                 
|   | Management has evaluated subsequent events pursuant to
      ASC Topic 855, and has determined there are no subsequent events to
      disclose.

F-5

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Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations

Forward-Looking Statements

This quarterly report contains forward-looking statements.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
may, should, expects, plans, anticipates, believes, estimates,
predicts, potential or continue or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors that may cause our or our
industrys actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by
applicable law including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results.

Unless otherwise specified our financial statements are
expressed in United States Dollars (US$) and are prepared in accordance with
United States generally accepted accounting principles.

In this quarterly report, unless otherwise specified, all
dollar amounts are expressed in United States dollars and all references to
common shares refer to the common shares in our capital stock.

As used in this current report and unless otherwise indicated,
the terms we, us, our and our company mean Auto Tool Technologies Inc.,
and our wholly-owned subsidiary, DSL Products Limited, an Ontario company,
unless otherwise indicated.

General Overview

We were incorporated under the laws of the state of Nevada on
May 10, 2011 and are engaged in the distribution of hand tools throughout
Canada. Our fiscal year end is December 31. We have one subsidiary, DSL Products
Limited, which we acquired via a share exchange on December 30, 2011 in exchange
for 30,000,000 shares of our common stock, and which operates our hand tool
distribution business. Our business offices are currently located at 101 1⁄2 Mary
Street West, Whitby, Ontario, Canada, L1N 2R4. The address of agent for service
in Nevada and registered corporate office is c/o National Registered Agents,
Inc. of Nevada, 100 East William Street, Suite 204, Carson City, NV, 89701. Our
telephone number is (905) 430-6533.

Our Current Business

We import and market hand tools, automotive accessories, lawn
and garden products, home products, accessories and attachments for power tools,
plumbing products, consumer mechanics tools, cargo control systems and
accessories and fasteners. These products are sold to professional end users,
distributors, and consumers, and are primarily distributed through retailers
(including auto parts stores, home centers, mass merchants, hardware stores, and
retail lumber yards).

Hand tools include measuring and levelling tools, hex key sets,
hammers, demolition tools, knives and blades, screwdrivers, saws, chisels,
clamps and clamping systems and consumer tackers. Automotive accessories include
fuses and fuse sets, o-rings sets, specialty tools, tune-up kits, tire repair
kits, electrical test kits, jumper cable sets, and mechanic gloves. Electric
power tools equipment includes drill bits, grinders, various saws, polisher
pads, routers bits, laser products. Lawn and garden products include work
gloves, pruners, shears, and related accessories. Home products are comprised of
cable ties, scissors, calculators, magnifying glasses, flexible flashlights,
paint tools and cleaning brushes. Accessories and attachments for power tools
include drill bits, hammer bits, router bits, hacksaws and blades, circular saw
blades, jig and reciprocating saw blades, diamond blades, screwdriver bits and
quick-change systems, and worksite tool belts and bags. Consumer mechanics tools
include wrenches and sockets sets. Cargo control systems include ratchet
tie-down straps, cambuckle sets, tow ropes, bungee cord sets and cargo nets.

5

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Our products are sold throughout Canada. We have engaged the
services of a national manufacturers agency who call on current and prospective
customers. Our website is located at www.toolcachecanada.com.The sales agency is
fully trained in product knowledge and our sales policies. We also sell our
products via our website which has online ordering capability and is secure and
individualized to the respective customer.

Cash Requirements

Based on our planned expenditures, we will require
approximately $300,000 over the next 12 months, which will be funded from our
operations.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

Critical Accounting Policies

Basis of Presentation and Principles of Consolidation

The unaudited interim consolidated financial statements have
been prepared in accordance with accounting principles generally accepted in the
United States for interim financial information and with the Securities and
Exchange Commission (SEC) instructions for companies filing Form 10-Q. In the
opinion of management, the unaudited interim consolidated financial statements
have been prepared on the same basis as the annual consolidated financial
statements and reflect all adjustments, which include only normal recurring
adjustments, necessary to present fairly the financial position as of September
30, 2012, and the results of operations and cash flows for the period then
ended. The financial data and other information disclosed in the notes to the
interim consolidated financial statements related to this period are unaudited.
The results for the nine-month period ended September 30, 2012 are not
necessarily indicative of the results to be expected for any subsequent quarter
or the entire year ending December 31, 2012. The unaudited interim consolidated
financial statements have been condensed pursuant to the Securities and Exchange
Commission's rules and regulations and do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. Therefore, these unaudited interim consolidated financial
statements should be read in conjunction with our companys annual audited
consolidated financial statements and notes thereto for the year ended December
31, 2011, included in our companys Prospectus on Form 424B3 filed on November
19, 2012 with the SEC.

These financial statements and related notes are expressed in
US dollars. The consolidated financial statements include the accounts of our
company and its wholly-owned subsidiary, DSL Products Limited. All inter-company
accounts and transactions have been eliminated. Our companys fiscal year-end is
December 31. The net assets and operations of DSL Products Limited are deemed to
be the continuing entity for accounting purposes under the terms of the
acquisition described in Note 3 of the December 31, 2011 financial statements
included in our companys Prospectus on Form 424B3 filed on November 19, 2012
with the SEC. Accordingly, DSL Products Limited is deemed to have acquired the
net assets and operations of Auto Tool Technologies Inc. on December 30, 2011.
The comparative figures as of and for the three month and nine month periods
ended September 30, 2011 are those of DSL Products Limited alone.

Results of Operations

Three Months Ended September 30, 2012 and September 30,
2011

The following summary of our results of operations should be
read in conjunction with our financial statements for the quarter ended
September 30, 2012, which are included herein.

Our operating results for the three months ended September 30,
2012 and September 30, 2011 are summarized as follows:

6

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Three Months
    
    
    Three MonthsEnded
    
    
    EndedSeptember 30,
    
    
    September 30,2012
    
    
    2011Revenue
    $
    219,815
    
    $
    175,678Cost of sales
    $
    138,734
    
    $
    106,011Bank charges and interest
    $
    3,596
    
    $
    4,159Selling, marketing and administrative
    $
    87,693
    
    $
    67,709Loss (gain) on foreign exchange
    $
    (10,045
    )
    $
    18,415Interest expense (income)
    $
    (3,889
    )
    $
    (3,948
    )Net Income (Loss)
    $
    3,726
    
    $
    (16,668
    )


Our financial statements report a net income of $3,726 for the
three month period ended September 30, 2012 compared to a net loss of $16,668
for the three month period ended September 30, 2011. Our losses have decreased
primarily as a result of increased gain on foreign exchange.

Nine Months Ended September 30, 2012 and September 30,
2011

Our operating results for the nine months ended September 30,
2012 and September 30, 2011 are summarized as follows:

Nine Months
    
    
    Nine MonthsEnded
    
    
    EndedSeptember 30,
    
    
    September 30,2012
    
    
    2011Revenue
    $
    640,697
    
    $
    619,296Cost of sales
    $
    401,486
    
    $
    393,773Bank charges and interest
    $
    11,552
    
    $
    9,270Selling, marketing and administrative
    $
    235,682
    
    $
    227,996Loss (gain) on foreign exchange
    $
    (7,260
    )
    $
    14,254Interest expense (income)
    $
    (11,590
    )
    $
    (11,877
    )Net Income (Loss)
    $
    10,827
    
    $
    (14,120
    )


Our financial statements report a net income of $10,827 for the
nine month period ended September 30, 2012 compared to a net loss of $14,120 for
the nine month period ended September 30, 2011. Our losses have decreased
primarily as a result of increased gain on foreign exchange.

Liquidity and Financial Condition

Working Capital

|                          |  |   | At            |   |  |   | At           |  
|------------------------- |  | - | ------------- | - |  | - | ------------ | -
|                          |  |   | September 30, |   |  |   | December 31, |  
|                          |  |   | 2012          |   |  |   | 2011         |  
|Current assets            |  | $ | 289,578       |   |  | $ | 216,589      |  
|Current liabilities       |  | $ | 406,454       |   |  | $ | 430,148      |  
|Working capital (deficit) |  | $ | (116,876      | ) |  | $ | (213,559     | )

Our total current liabilities as of September 30, 2012 were
$406,454 as compared to total current liabilities of $216,589 as of December 31,
2011. The decrease was primarily due to decreases in accounts payable, accrued
liabilities and amounts due to related parties.

7

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|Cash Flows                                                |  |   |               |   |  |   |               |  
|--------------------------------------------------------- |  | - | ------------- | - |  | - | ------------- | -
|                                                          |  |   |               |   |  |   |               |  
|                                                          |  |   | At            |   |  |   | At            |  
|                                                          |  |   | September 30, |   |  |   | September 30, |  
|                                                          |  |   | 2012          |   |  |   | 2011          |  
|Net cash provided by (used in) operating
      activities |  | $ | (149,778      | ) |  | $ | (190,736      | )
|Net cash provided by (used in) investing
      activities |  | $ | 16,295        |   |  | $ | (67,880       | )
|Net cash provided by (used in) financing
      activities |  | $ | 114,995       |   |  | $ | 231,274       |  
|Net increase (decrease) in cash during
      period       |  | $ | (18,359       | ) |  | $ | (27,260       | )

Operating Activities

Net cash used by operating activities was $149,778 in the nine
months ended September 30, 2012 compared with net cash used by operating
activities of $190,736 in the nine months ended September 30, 2011. The decrease
in use of cash of $40,958 in operating activities is mainly attributed to
greater net income and inventories.

Investing Activities

Net cash provided by investing activities was $16,295 in the
nine months ended September 30, 2012 compared to net cash used in investing
activities of $67,880 in the nine months ended September 30, 2011. The increase
in net cash provided by investing activities was due to a decrease in loans to
related parties.

Financing Activities

Net cash provided by financing activities was $114,995 in the
nine months ended September 30, 2012 compared to $231,274 provided by financing
activities in the nine months ended September 30, 2011. The decrease in cash
provided by financing activities was due to a decrease in our companys
utilization of our operating line of credit.

Item 3. Quantitative and Qualitative Disclosures About
Market Risk

As a smaller reporting company, we are not required to
provide the information required by this Item.

Item 4. Controls and Procedures

Managements Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, including our chief executive
officer and chief financial officer (our principal executive officer, principal
financial officer and principle accounting officer) to allow for timely
decisions regarding required disclosure.

As of the end of our quarter covered by this report, we carried
out an evaluation, under the supervision and with the participation of our chief
executive officer and chief financial officer (our principal executive officer,
principal financial officer and principle accounting officer), of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based on the foregoing, our chief executive officer and chief
financial officer (our principal executive officer, principal financial officer
and principle accounting officer) concluded that our disclosure controls and
procedures were effective as of the end of the period covered by this quarterly
report.

8

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Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial
reporting during the quarterly period covered by this report that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

PART II  OTHER INFORMATION

Item 1.        Legal
Proceedings

We know of no material, existing or pending legal proceedings
against us, nor are we involved as a plaintiff in any material proceeding or
pending litigation. There are no proceedings in which any of our directors,
officers or affiliates, or any registered or beneficial shareholder, is an
adverse party or has a material interest adverse to our company.

Item 2.       
Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.        Defaults
Upon Senior Securities

None.

Item 4.        Mine
Safety Disclosures

Not applicable.

Item 5.        Other
Information

None.

Item 6.        Exhibits

|Exhibit | Description                                                                                                                                                                                                     
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |                                                                                                                                                                                                                 
|        |                                                                                                                                                                                                                 
|(3)     | Articles of Incorporation and Bylaws                                                                                                                                                                            
|        |                                                                                                                                                                                                                 
|3.1     | Articles of Incorporation (incorporated by reference from
      our Registration Statement on Form S-1 filed on May 9, 2012)                                                                                    
|        |                                                                                                                                                                                                                 
|3.2     | By-laws (incorporated by reference from our Registration
      Statement on Form S-1 filed on May 9, 2012)                                                                                                      
|        |                                                                                                                                                                                                                 
|(10)    | Material Contracts                                                                                                                                                                                              
|        |                                                                                                                                                                                                                 
|10.1    | Consulting Agreement dated December 30, 2011 between our
      company and Cindy Kelly & Associates (incorporated by reference from
      our Registration Statement on Form S-1 filed on May 9, 2012)          
|        |                                                                                                                                                                                                                 
|10.2    | Share Purchase Agreement dated December 30, 2011 between
      our company and Rossland Asset Management Ltd. (incorporated by reference
      from our Registration Statement on Form S-1 filed on May 9, 2012)
|        |                                                                                                                                                                                                                 
|(21)    | Subsidiaries of the Registrant                                                                                                                                                                                  
|        |                                                                                                                                                                                                                 
|21.1    | DSL Products Limited, a wholly-owned Ontario corporation                                                                                                                                                        
|        |                                                                                                                                                                                                                 
|(31)    | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                                                         

9

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|Exhibit | Description                                                                                                                                                                            
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |                                                                                                                                                                                        
|        |                                                                                                                                                                                        
|31.1*   | Section 302
        Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive
        Officer, Principal Financial Officer and Principal Accounting Officer        
|        |                                                                                                                                                                                        
|(32)    | Section 1350
        Certifications                                                                                                                                                    
|        |                                                                                                                                                                                        
|32.1*   | Section
        906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal
        Executive Officer, Principal Financial Officer and Principal Accounting
        Officer
|        |                                                                                                                                                                                        
|101**   | Interactive
        Data File                                                                                                                                                          
|        |                                                                                                                                                                                        
|101.INS | XBRL Instance
        Document                                                                                                                                                         
|101.SCH | XBRL Taxonomy Extension Schema
        Document                                                                                                                                        
|101.CAL | XBRL Taxonomy
        Extension Calculation Linkbase Document                                                                                                                          
|101.DEF | XBRL Taxonomy Extension Definition
        Linkbase Document                                                                                                                           
|101.LAB | XBRL Taxonomy
        Extension Label Linkbase Document                                                                                                                                
|101.PRE | XBRL Taxonomy Extension Presentation
        Linkbase Document                                                                                                                         

|*  | Filed herewith.                 
|-- | --------------------------------
|   |                                 
|** | XBRL will be filed by
amendment.

10

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

|                         |     | AUTO TOOL TECHNOLOGIES
      INC.                              
|------------------------ | --- | ---------------------------------------------------------------
|                         |     | (Registrant)                                                   
|                         |     |                                                                
|                         |     |                                                                
|Dated: December 19, 2012 | By: | /s/ Cindy Lee Kelly                                            
|                         |     | Cindy Lee Kelly                                                
|                         |     | President, Chief Executive
      Officer, Chief Financial      
|                         |     | Officer, Secretary, Treasurer and
      Director               
|                         |     | (Principal Executive Officer,
      Principal Financial Officer
|                         |     | and Principal Accounting Officer                               

11

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