UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 FORM
10-Q x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF
 THE SECURITIES EXCHANGE ACT OF 1934For the quarterly
 period ended:          JUNE
 30, 2008o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 THE SECURITIES ACT OF 1934For the transition
 period from ______________ to ____________________ Commission File
Number: 001-11497 AUTOINFO, INC.(Exact name of
 Registrant as specified in its charter)DELAWARE
13-2867481(State or other jurisdiction of incorporation
 or organization)
(I.R.S. Employer
 Identification number)6413 Congress Ave.,
 Suite 260, Boca Raton, FL 33487(Address of principal
 executive office)(561) 988-9456(Registrants telephone
 number, including area code) 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 o Indicate by check mark whether the Registrant is a
large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act. (Check one): LARGE ACCELERATED FILER o

ACCELERATED FILER oNON-ACCELERATED FILER o

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 o     NO x The number of shares outstanding of the Registrants
common stock as of August 29, 2008: 32,826,000 shares of common stock.    AUTOINFO,
INC. AND SUBSIDIARIES

INDEX

PagePart I. Financial Information:Item 1.
Consolidated Financial Statements:Balance SheetsJune 30, 2008
 (unaudited) and December 31, 2007 (audited)

3Statements of Income (unaudited)Three
 and Six months ended June 30, 2008 and 2007

4Statements of Cash Flows (unaudited)
 Six months ended June 30, 2008 and 2007

5Notes to Unaudited Consolidated
 Financial Statements

6Item 2.
Managements Discussion and Analysis
 of Financial
 Condition and Results of Operations

10Item 3.
Quantitative and Qualitative
 Disclosures About Market Risk

15Item 4T.
Controls and Procedures

15Part II. Other InformationItem 2.
Unregistered Sales of Equity
 Securities and Use of Proceeds

15Item 6.
Exhibits

15Signatures


162

PART I - FINANCIAL
INFORMATION

AUTOINFO, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June
 30,
 2008

December
 31,
 2007Unaudited

AuditedASSETSCurrent assets:Cash and cash
equivalents

$
156,000

$
270,000Accounts
receivable, net of allowance for doubtful accounts of
 $425,000 and $326,000 as of June 30, 2008 and December 31, 2007, respectively


32,079,000


24,224,000Deferred income
taxes (Note 2)


1,248,000


1,000,000Current portion
of advances and other assets


2,091,000


1,583,000Total current
assets


35,574,000


27,077,000Fixed assets, net of accumulated
depreciation


572,000


477,000Deferred income taxes (Note
2)


1,165,000


2,037,000Advances and other assets, net
of current portion


5,353,000


3,599,000$
42,664,000

$
33,190,000LIABILITIES AND
STOCKHOLDERS EQUITYCurrent liabilitiesAccounts
payable and accrued liabilities

$
15,404,000

$
10,584,000Total current
liabilities


15,404,000


10,584,000Loan payable


12,196,000


8,790,000Stockholders
EquityCommon stock -
authorized 100,000,000 shares $.001 par value; issued
 and outstanding - 32,826,000 shares as of June 30, 2008 and 32,586,000 as of
 December 31, 2007


33,000


33,000Additional
paid-in capital


19,797,000


19,635,000Deficit


(4,766,000
)

(5,852,000
)Total
stockholders equity


15,064,000


13,816,000$
42,664,000

$
33,190,000The accompanying notes are an integral part
of these consolidated financial statements.

3

AUTOINFO, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME(Unaudited)

Six
 Months Ended
 June 30,

Three
 Months Ended
 June 30,2008

2007

2008

2007Gross revenues

$
81,796,000

$
48,278,000

$
45,234,000

$
26,224,000Cost of transportation


67,514,000


38,277,000


37,699,000


21,078,000Net revenues


14,282,000


10,001,000


7,535,000


5,146,000Commissions


9,111,000


6,385,000


4,740,000


3,260,000Operating expenses


3,143,000


2,290,000


1,705,000


1,175,00012,254,000


8,675,000


6,445,000


4,435,000Income from operations


2,028,000


1,326,000


1,090,000


711,000Interest expense


211,000


101,000


108,000


55,000Income before income
taxes


1,817,000


1,225,000


982,000


656,000Income taxes (Note 2)


731,000


516,000


386,000


273,000Net income

$
1,086,000

$
709,000

$
596,000

$
383,000Net income per share:Basic

$
.03

$
.02

$
.02

$
.01Diluted

$
.03

$
.02

$
.02

$
.01Weighted average number of
common shares:Basic


32,625,000


32,539,000


32,665,000


32,813,000Diluted


34,907,000


36,240,000


34,868,000


36,112,000The accompanying notes are an integral part
of these consolidated financial statements.

4

AUTOINFO, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

Six
 Months Ended
 June 30,2008

2007Cash flows from operating
activities:Net income

$
1,086,000

$
709,000Adjustments to reconcile net
income to net cash used in operating
 activities:Change in
allowance for doubtful accounts


99,000


52,000Depreciation
and amortization


78,000


57,000Stock-based
compensation expense


126,000


147,000Deferred income
taxes


624,000


441,000Changes in assets and
liabilities:Accounts
receivable


(7,953,000
)

(1,959,000
)Advances and
other assets


(2,262,000
)

(860,000
)Accounts
payable and accrued liabilities


4,819,000


1,338,000Net cash used in operating
activities


(3,383,000
)

(75,000
)Cash flows from investing
activities:Capital
expenditures


(173,000
)

(170,000
)Net cash used in investing
activities


(173,000
)

(170,000
)Cash flows from financing
activities:Exercise of
stock options


36,000


250,000Increase
(decrease) in loan payable, net


3,406,000


(88,000
)Net cash provided by financing
activities


3,442,000


162,000Net change in cash and cash
equivalents


(114,000
)

(83,000
)Cash and cash equivalents,
beginning of period


270,000


146,000Cash and cash equivalents, end
of period

$
156,000

$
63,000The accompanying notes are an integral part
of these consolidated financial statements.

5

AUTOINFO, INC. AND SUBSIDIARIESNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Forward Looking Statements

Certain statements made in this Quarterly Report on Form 10-Q
are
forward-looking statements regarding the plans and objectives of management for
future operations. Such statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The forward-looking statements included herein are
based on current expectations that involve numerous risks and uncertainties.
Our plans and objectives are based, in part, on assumptions involving judgments
with respect to, among other things, future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that our assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove inaccurate and,
therefore, there can be no assurance that the forward-looking statements
included in this report will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein
particularly in view of the current state of our operations, the inclusion of
such information should not be regarded as a statement by us or any other person
that our objectives and plans will be achieved. Factors that could cause actual
results to differ materially from those expressed or implied by forward-looking
statements include, but are not limited to, the factors set forth under the
headings Business,andRisk Factors in our Annual Report on Form 10-K for the year ended
December 31, 2007 as filed with the Securities and Exchange Commission (SEC).

Note 1. - Business and Summary of Significant
Accounting Policies

Business

The
Company, through its wholly-owned subsidiary, Sunteck Transport Co., Inc.
(Sunteck), is a non-asset based transportation services company. As a non-asset
based provider of brokerage and contract carrier transportation services, the
Company does not own any equipment and its services are provided through its
strategic alliances with less than truckload, truckload, air, rail, ocean
common carriers and independent owner-operators to service customers needs.
The Companys brokerage and contract carrier services are provided through a
network of independent sales agents throughout the United States and Canada.
During its most recently completed fiscal year, the Company generated revenue,
net revenue and net income of approximately $110.3 million, $21.3 million and
$1.6 million, respectively.

Summary of Significant Accounting Policies

Basis of Presentation

The
financial statements of the Company have been prepared using the accrual basis
of accounting under accounting principles generally accepted in the United States
of America (GAAP).

The
consolidated financial statements, which are unaudited, have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
(SEC). In managements opinion, these financial statements include all
adjustments (consisting only of normal recurring adjustments) necessary for a
fair presentation of the results of operations for the interim periods
presented. The results of operations for the six months ended June 30, 2008 and
2007 are not necessarily indicative of results to be expected for the entire
year. Pursuant to SEC rules and regulations, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with GAAP have been omitted from these statements. The consolidated financial
statements and notes thereto should be read in

6

conjunction
with the financial statements and notes included in our Annual Report on Form
10-K for the year ended December 31, 2007.

Principles of Consolidation

The
consolidated financial statements include the accounts of the AutoInfo, Inc.
(the Company), its wholly-owned subsidiary Sunteck Transport Co., Inc. and its
wholly-owned subsidiaries Sunteck Transport Carriers, Inc., and Eleets Logistics,
Inc. (collectively, Sunteck). All significant intercompany balances and
transactions have been eliminated in consolidation.

Use of Estimates

The
preparation of these financial statements in conformity with GAAP requires
management to make certain estimates and assumptions. These estimates and
assumptions affect the reported amounts of assets, liabilities and contingent
liabilities at the date of the financial statements and the reported amounts of
revenue and expenses during the periods presented. The Company believes that
all such assumptions are reasonable and that all estimates are adequate,
however, actual results could differ from those estimates.

Revenue
Recognition

As
a third party transportation logistics provider, the Company acts as the shippers
agent and arranges for a carrier to handle the freight. Gross revenues consist
of the total dollar value of services purchased by shippers. Revenue is
recognized upon delivery of freight, at which time the related transportation
cost, including commission, is also recognized. At that time, the Companys
obligations are completed and collection of receivables is reasonably assured.

Emerging
Issues Task Force No. 99-19, Reporting Revenues Gross as a Principal Versus
Net as an Agent (EITF 99-19), establishes criteria for recognizing revenues on
a gross or net basis. The Company is the primary obligor in its transactions,
has all credit risk, maintains substantially all risk and rewards, has
discretion in selecting the supplier, and has latitude in pricing decisions.
Accordingly, the Company records all transactions at the gross amount,
consistent with the provisions of EITF 99-19.

Cash
and cash equivalents

Cash
and cash equivalents consist of cash in banks.

Provision
For Doubtful Accounts

The
Company continuously monitors the creditworthiness of its customers and has
established an allowance for amounts that may become uncollectible in the
future based on current economic trends, its historical payment and bad debt
write-off experience, and any specific customer related collection issues.

Fixed Assets

Fixed
assets as of June 30, 2008 and December 31, 2007, consisting primarily of
furniture, fixtures and equipment and computer system development costs, were
carried at cost net of accumulated depreciation. Depreciation of fixed assets
was provided on the straight-line method over the estimated useful lives of the
related assets which range from three to five years.

7

Income Per Share

Basic
income per share is based on net income divided by the weighted average number
of common shares outstanding. Common stock equivalents outstanding were
2,203,000 and 3,299,000, and 2,282,000 and 3,701,000, respectively, for the
three and six month periods ended June 30, 2008 and 2007, respectively.

Income Taxes

The
Company
utilizes the asset and liability method for accounting for income taxes. Under
the asset and liability method, deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases and future benefits to be recognized upon the
utilization of certain operating loss carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. The
effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date.

Note 2- Income Taxes

For the
three and six month periods ended June 30, 2008 and 2007, respectively, the
provision for income taxes consisted of the following:

Three Months Ended June 30,2008

2007Current

Deferred

Current

DeferredTax expense before application
of operating
 loss carryforwards

$
386,000




$
273,000

$
Tax expense (benefit) of
operating loss
 carryforwards


(329,000
)

329,000


(233,000
)

233,000Income tax expense

$
57,000

$
329,000

$
40,000

$
233,000Six Months Ended June 30,2008

2007Current

Deferred

Current

DeferredTax expense before application
of operating
 loss carryforwards

$
731,000




$
516,000

$
Tax expense (benefit) of
operating loss
 carryforwards


(624,000
)

624,000


(441,000
)

441,000Income tax expense

$
107,000

$
624,000

$
75,000

$
441,000The
deferred tax asset of $2,413,000 and $3,037,000 at June 30, 2008 and December
31, 2007, respectively, represents expected future tax savings resulting from
the Companys utilization of its net operating loss carryforwards. As of
December 31, 2007, the Company had net operating loss carryforwards of
approximately $8.9 million for federal

8

income
tax purposes which expire through 2014. Utilization of this benefit is
primarily subject to the extent of future earning of the Company, and may be
limited by, among other things, shareholder changes, including the possible
issuance by the Company of additional shares in one or more financing or
acquisition transactions.

Based
upon
available objective evidence, including the Companys post-merger history of
profitability, management believes it is more likely than not that forecasted
taxable income will be sufficient to utilize all of the net operating loss
carryforwards before its expiration in 2014.

9

MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary statement identifying important
factors that could cause our actual results to differ from those projected in
forward looking statements.

Readers
of this report are advised that this document contains both statements of
historical facts and forward looking statements. Forward looking statements are
subject to certain risks and uncertainties, which could cause actual results to
differ materially from those indicated by the forward looking statements. We
undertake no obligation to revise or update publicly any forward looking
statements for any reason. Examples of forward looking statements include, but
are not limited to (i) projections of revenues, income or loss, earnings per
share, capital expenditures, dividends, capital structure and other financial
items, (ii) statements of our plans and objectives with respect to business
transactions and enhancement of shareholder value, (iii) statements of future
economic performance, and (iv) statements of assumptions underlying other
statements and statements about our business prospects.

The
following Managements Discussion and Analysis of Financial Condition and
Results of Operations should be read in conjunction with our financial
statements and the notes thereto appearing elsewhere in this report.

Overview

Through our
wholly-owned subsidiary, Sunteck Transport Co., Inc. (Sunteck), we are a
non-asset based transportation services company, providing transportation
capacity and related transportation services to shippers throughout the United
States, and to a lesser extent, Canada. As a non-asset based provider of brokerage
and contract carrier transportation services, we do not own any equipment and
our services are provided through our strategic alliances with less than
truckload, truckload, air, rail, ocean common carriers and independent
owner-operators to service our customers needs. Our services include
ground transportation coast to coast, local pick up and delivery, air freight
and ocean freight. We have strategic alliances with less than truckload,
truckload, air, rail and ocean common carriers to service our customers needs.
Our business services emphasize safety, information coordination and customer
service and are delivered through a network of independent commissioned sales
agents and third party capacity providers coordinated by us. The independent
commissioned sales agents typically enter into exclusive contractual arrangements
with Sunteck and are responsible for locating freight and coordinating the
transportation of the freight with customers and capacity providers. The third
party capacity providers consist of independent contractors who provide truck
capacity to us, including owner-operators who operate under our contract
carrier license, air cargo carriers and railroads. Through this network of
agents and capacity providers, Sunteck operates a non-asset based
transportation services business with revenue, net revenue and net income of approximately $110.3 million, $21.3
million and $1.6 million, respectively, during our most recently
completed fiscal year and approximately
$81.8 million, $14.3 million and $1.1 million, respectively, during the
six months ended June 30, 2008.

During
the
six months ended June 30, 2008, the increase in gross revenue and net revenue
is readily measured by the number of transactions we have processed, which
increased for the respective six month periods from 37,000 in 2007 to 60,000 in
2008, an increase of 62%. This is the direct result of the expansion of our
agent network. Gross revenue increased by 69% and net revenue increased by 43%
over the prior year period as compared to an increase of 62% in the number of
transactions processed. We experienced a decrease in net revenue percentage of
3.3% from the corresponding period in 2007. This is the result of higher
transportation costs and reflects the increase in fuel costs as well as other
factors.

During
the next twelve months, we plan to continue to offer our brokerage and contract
carrier transportation services and expand our agent network. We are presently
profitable and have adequate available lines of credit to satisfy our working
capital requirements during the next twelve months.

10

Results of operations

For the three and six months ended June 30,
2008 and 2007

During
the quarter ended June 30, 2008, we continued to implement our strategic growth
business plan consisting primarily of the expansion of client services, the
opening of regional operations centers in key geographical markets, and the
addition of independent sales agents providing brokerage and contract carrier
services. Our net revenues (gross revenues less cost of transportation) are the
primary indicator of our ability to source, add value and resell service that
are provided by third parties and are considered to be the primary measurement
of growth. Therefore, the discussion of the results of operations below focuses
on the changes in our net revenues. The increases in net revenues and all
related cost and expense categories are the direct result of our business
expansion.

The following table represents certain statement of operation data as a
percentage of net revenues:

Three Months Ended
 June 30,

Six Months Ended
 June 30,2008

2007

2008

2007Net revenues



100.0
%



100.0
%



100.0
%



100.0
%Commissions



62.9
%



63.4
%



63.8
%



63.8
%Operating expenses



22.6
%



22.8
%



22.0
%



22.9
%Interest expense



1.5
%



1.1
%



1.5
%



1.0
%Income taxes



5.1
%



5.3
%



5.1
%



5.2
%Net income



7.9
%



7.4
%



7.6
%



7.1
%Revenues

Gross
revenues, consisting of freight fees and other related services revenue,
totaled $45,234,000 for the three months ended June 30, 2008 as compared with
$26,224,000 in the same period of the prior year, an increase of 73%. Net
revenues were $7,535,000 for the three months ended June 30, 2008, as compared
with $5,146,000 in the same period of the prior year, an increase of 46%. This
increase is the direct result of the continued expansion of our agent network
and customer base which resulted in a 64% increase in the number of
transactions processed. The increase in net revenue of 46% as compared to the
increase in gross revenue of 73% is the result of revenue mix and increased
direct freight costs relating to competition, the increase in fuel costs, and
the availability of equipment.

Gross
revenues, consisting of freight fees and other related services revenue,
totaled $81,796,000 for the six months ended June 30, 2008, as compared with
$48,278,000 in the same period of the prior year, an increase of 69%. Net
revenues were $14,282,000 for the six months ended June 30, 2008, as compared
with $10,001,000 in the same period of the prior year, an increase of 43%. This
increase is the direct result of the continued expansion of our agent network
and customer base which resulted in a 31% increase in the number of
transactions processed. The increase in net revenue of 43% as compared to the
increase in gross revenue of 69% is the result of revenue mix and increased
direct freight costs, the increase in fuel costs, and the availability of
equipment.

Costs and expenses

Commissions

11

For the
three months ended June 30, 2008, commissions totaled $4,740,000 as compared
with $3,260,000 in the same period of the prior year. This increase is the
result of the increase in net revenues. As a percentage of net revenues,
commissions were 63% as compared with 63% in the same period of the prior year.

For
the six
months ended June 30, 2008, commissions totaled $9,111,000 as compared with
$6,385,000 in the same period of the prior year. This increase is the result of
the increase in net revenues. As a percentage of net revenues, commissions were
64% as compared with 64% in the same period of the prior year.

Operating expenses

For the
three months ended June 30, 2008, operating expenses totaled $1,705,000 as
compared with $1,175,000 in the same period of the prior year. As a percentage
of net revenues, operating expenses were 23% as compared with 23% in the prior
year period.

For
the six
months ended June 30, 2008, operating expenses totaled $3,143,000 as compared
with $2,290,000 in the same period of the prior year. As a percentage of net
revenues, operating expenses were 22% as compared with 23% in the same period
of the prior year.

These
increases are the direct result of the increase in selling, general and
administrative expenses in connection with our business expansion. We presently
have adequate facilities and management to handle the present and anticipated
transaction volume in 2008 without a significant increase in overhead.

Interest Expense

For the
three months ended June 30, 2008, interest expense totaled $108,000 as compared
with $55,000 in the same period of the prior year.

For
the six
months ended June 30, 2008, interest expense totaled $211,000 as compared with $101,000
in the same period of the prior year.

These
increases are primarily the result of increased borrowings pursuant to our
$20.0 million line of credit.

Income tax

Income
tax
expense for the three months ended June 30, 2008 of $386,000 consisted of the
utilization of the deferred tax benefit of $329,000 and state income taxes of
$57,000 as compared with $273,000 for the three months ended June 30, 2007
which consisted of the utilization of the deferred tax benefit of $233,000 and state
income taxes of $40,000.

Income
tax
expense for the six months ended June 30, 2008 of $731,000 consisted of the
utilization of the deferred tax benefit of $624,000 and state income taxes of
$107,000 as compared with $516,000 for the six months ended June 30, 2008 which
consisted of the utilization of the deferred tax benefit of $441,000 and state
income taxes of $75,000.

The
increase in income taxes is directly related to higher pre-tax income.

Trends and
uncertainties

The transportation industry is highly
competitive and highly fragmented. Our primary competitors are other non-asset
based as well as asset based third party logistics companies, freight brokers,
carriers offering logistics services and freight forwarders. We also compete
with customers and shippers internal traffic and transportation departments
as well as carriers internal sales and marketing departments directly seeking
shippers freight. We anticipate that competition for our services will
continue to increase. Many of our competitors have substantially greater
capital resources, sales and

12

marketing resources and experience. We cannot
assure you that we will be able to effectively compete with our competitors in
effecting our business expansion plans. The most significant trend contributing
to our growth during the past four years has been the expansion of our
brokerage services agent network and expansion of our contract carrier agent
and owner operator network. Sales agents are independent contractors and, as
such, there are no assurances that we can either maintain our existing agent
network or continue to expand this network.

For
the six
months ended June 30, 2008, our gross revenues increased to $81.8 million from
$48.3 million in the prior year period. As of June 30, 2008, we had an
accumulated deficit of $4.8 million. Factors that could adversely affect our
operating results include:


the success
 of Sunteck in expanding its business operations; and
changes in
 general economic conditions.Depending
on our ability to generate revenues, we may require additional funds to expand
Suntecks business operations and for working capital and general corporate
purposes. Any additional equity financing may be dilutive to stockholders, and
debt financings may involve restrictive covenants that further limit our
ability to make decisions that we believe will be in our best interests. In the
event we cannot obtain additional financing on terms acceptable to us when
required, our ability to expand Suntecks operations may be materially
adversely affected.

Inflation
and changing prices had no material impact on our revenues or the results of
operations for the period ended June 30, 2008. During the three months ended June
30, 2008, however, rapidly rising fuel prices, among other factors, contributed
to higher transportation costs and resulted in a decline in the net revenue
percentage.

Liquidity and capital
resources

During
the
past two years, our sources for cash have been the cash flow generated from
operations and available borrowings under our line of credit.

At
June 30,
2008, we had an outstanding balance of $12,196,000 under our $20,000,000 line
of credit. In May, 2008, we increased our line of credit from 10.5 million to
20.0 million and extended the maturity date from June 2009 to June, 2010. The
line of credit facility is at an interest rate of LIBOR plus 1 1⁄4 %, is subject
to the maintenance of certain financial covenants, and is secured by accounts
receivable and other operating assets. We believe that we have sufficient
working capital to meet our short-term operating needs and that we will be able
to increase, extend or replace the line of credit on terms acceptable to us.

At
June 30,
2008, we had liquid assets of approximately $156,000. Available cash is used to
reduce borrowings on our line of credit.

The
total
amount of debt outstanding as of June 30, 2008 and 2007 was $12,196,000 and
$3,363,000, respectively. The following table presents our debt instruments and
their weighted average interest rates as of June 30, 2008 and 2007,
respectively:

Balance

Weighted
Average Rate

Balance

Weighted 
Average Rate2008

2007Line of
 Credit


12,196,000



3.7
%


3,363,000



7.3
%13
Critical accounting policies

Preparation
of our financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Note 1 to the notes to the financial statements included in
this report includes a summary of the significant accounting policies and
methods used in the preparation of our financial statements. The most
significant areas involving management estimates and assumptions are described
below. Actual results could differ materially from managements estimates under
different assumptions or conditions.

Revenue
Recognition

As
a third party transportation logistics provider, we act as the shippers agent
and arrange for a carrier to handle the freight. Gross revenues consist of the
total dollar value of services purchased by shippers. Revenue is recognized
upon the delivery of freight, at which time the related transportation cost,
including commission, is also recognized. At that time, our obligations are
completed and collection of receivables is reasonably assured.

Emerging
Issues Task Force No. 99-19, Reporting Revenues Gross as a Principal Versus
Net as an Agent (EITF 99-19), establishes criteria for recognizing revenues on
a gross or net basis. We are the primary obligor in our transactions, have all
credit risk, maintain substantially all risk and rewards, have discretion in
selecting the supplier, and have latitude in pricing decisions. Accordingly, we
record all transactions at the gross amount, consistent with the provisions of
EITF 99-19.

Income Taxes

The
deferred tax asset represents expected future tax savings resulting from our
net operating loss carryforwards. As of December 31, 2007, we had net operating
loss carryforwards of approximately $8.9 million for federal income tax
purposes which expire through 2014. Utilization of this benefit is primarily
subject to the extent of our future earnings, and may be limited by, among
other things, stockholder changes, including the possible issuance of
additional shares in one or more financing or acquisition transactions. As of
December 2006, we eliminated any valuation allowance for the future tax savings
as management believes it is more likely than not that they will be realized by
the end of the carryforward period.

Provision For
Doubtful Accounts

We
continuously monitor the creditworthiness of our customers and have established
an allowance for amounts that may become uncollectible in the future based on
current economic trends, our historical payment and bad debt write-off
experience, and any specific customer related collection issues.

Off-balance sheet arrangements

We do not have
any off-balance sheet arrangements.

14

QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

A
smaller reporting company is not required to provide the information required
by this Item.

CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls
and Procedures

Our
management, with the participation of our president and chief financial
officer, carried out an evaluation of the effectiveness of our disclosure
controls and procedures (as defined in the Securities Exchange Act of 1934
(the Exchange Act) Rules 13a-15(e) and 15-d-15(e)) as of the end of the
period covered by this report (the Evaluation Date). Based upon that
evaluation, the president and chief financial officer concluded that as of the
Evaluation Date, our disclosure controls and procedures are effective to ensure
that information required to be disclosed by us in the reports that we file or
submit under the Exchange Act (i) is recorded, processed, summarized and
reported, within the time periods specified in the SECs rules and forms and
(ii) is accumulated and communicated to our management, including our president
and chief financial officer, as appropriate to allow timely decisions regarding
required disclosure.

(b) Changes in Internal
Control over Financial Reporting

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

Part II - OTHER INFORMATION

Item 2.
Unregistered Sales of
 Equity Securities and Use of ProceedsDuring the quarter ended
June 30, 2008, we issued 240,000 shares of Common Stock upon the exercise of
options by a consultant. The issuance of these shares was pursuant to an
exemption from registration provided under section 4(2) of the Securities Act
of 1933, as amended (the Act). All of the stock certificates issued for the
shares were imprinted with a legend restricting transfer unless
pursuant to an effective registration statement or an available exemption under
the Act.

Part II - OTHER INFORMATION

Item 6.
EXHIBITS.31A
Certification of Chief Executive Officer Pursuant to
Section 302 of
 the Sarbanes-Oxley Act of 2002.*31B
Certification of Chief Financial Officer Pursuant to
Section 302 of
 the Sarbanes-Oxley Act of 2002.*32A
Certification of Chief Executive Officer Pursuant to
18 U.S.C.
 Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
 2002.*32B
Certification of Chief Financial Officer Pursuant to
18 U.S.C.
 Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
 2002.**Filed as an
 exhibit hereto.15

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.

AUTOINFO, INC.

/s/ Harry
 WachtelHarry
 WachtelPresident
 and Chief Executive Officer(Principal Executive Officer)/s/ William
 WunderlichWilliam
 WunderlichChief
 Financial Officer(Principal
 Financial Officer)Date: August
 29, 200816