FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
      EXCHANGE ACT OF 1934

            For Quarter Ended: MARCH 31, 2005

|_|   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF
      1934

            For the transition period from ______________ to ______________

                         Commission File Number: 0-14786

                                 AUTOINFO, INC.
             (Exact name of Registrant as specified in its charter)

           DELAWARE                                    13-2867481
(State or other jurisdiction of          (I.R.S. Employer Identification number)
 incorporation or organization)

               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 |_|

Indicate  by check mark  whether  the  Registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).

                                 YES |_| NO |X|

Indicate  by check mark  whether  the  Registrant  has filed all  documents  and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.

                                 YES |X| NO |_|

Number of shares  outstanding of the  Registrant's  common stock as of April 30,
2005: 31,367,189 shares of common stock.


                                       1
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                                      INDEX

<TABLE>
<CAPTION>
Part I. Financial Information:

Item 1.      Consolidated Financial Statements:                                             Page
<S>                                                                              <C>
             Balance Sheets
               March 31, 2005 (unaudited) and December 31, 2004 (audited)...................  3

             Statements of Income (unaudited)
               Three months ended March 31, 2005 and 2004...................................  4

             Statements of Cash Flows  (unaudited)
               Three months ended March 31, 2005 and 2004...................................  5

             Notes to Unaudited Consolidated Financial Statements...........................  6

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

Item 3.      Quantitative and Qualitative Disclosures About Market Risk........  Not applicable

Item 4.      Controls and Procedures........................................................ 14

Part II. Other Information.................................................................. 14

Signatures   ............................................................................... 15
</TABLE>


                                       2
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                              March 31,      December 31,
                                                                2005            2004
                                                            ------------     ------------
                                                              Unaudited        Audited
<S>                                                         <C>              <C>
ASSETS

Current assets:
  Cash                                                      $     51,000     $     38,000
  Accounts receivable                                          9,557,000        9,658,000
  Other current assets                                           331,000          679,000
  Deferred income taxes (Note 2)                                 391,000          369,000
                                                            ------------     ------------

        Total current assets                                  10,330,000       10,744,000

Fixed assets, net of accumulated depreciation                    106,000           69,000

Deferred income taxes (Note 2)                                   986,000          952,000

Other assets                                                      90,000           30,000
                                                            ------------     ------------
                                                            $ 11,512,000     $ 11,795,000
                                                            ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Loan payable                                              $  1,753,000     $  1,998,000
  Accounts payable and accrued liabilities                     4,914,000        5,385,000
                                                            ------------     ------------
        Total current liabilities                              6,667,000        7,383,000
                                                            ------------     ------------

Stockholders' Equity
  Preferred stock - authorized 10,000,000 shares
      $.001 par value; issued and outstanding - 0 shares
      as of March 31, 2005 and December 31, 2004                      --               --
  Common stock - authorized 100,000,000 shares
      $.001 par value; issued and outstanding -
      31,367,000 shares as of March 31, 2005 and
      31,218,000 shares as of December 31, 2004                   31,000           31,000
  Other capital                                                  324,000          324,000
  Deferred compensation                                         (260,000)        (277,000)
  Additional paid-in capital                                  19,049,000       19,026,000
  Deficit                                                    (14,299,000)     (14,692,000)
                                                            ------------     ------------
        Total stockholders' equity                             4,845,000        4,412,000
                                                            ------------     ------------
                                                            $ 11,512,000     $ 11,795,000
                                                            ============     ============
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       3
<PAGE>

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

                                                        Three Months Ended
                                                             March 31,
                                                        2005           2004
                                                    ------------   ------------

Gross revenues                                      $ 14,915,000   $  8,159,000
Cost of transportation                                11,848,000      6,681,000
                                                    ------------   ------------

Net revenues                                           3,067,000      1,478,000
                                                    ------------   ------------

Commissions                                            1,900,000        840,000
Operating expenses                                       760,000        449,000
                                                    ------------   ------------
                                                       2,660,000      1,289,000
                                                    ------------   ------------

Income from operations                                   407,000        189,000
Interest expense                                          48,000         14,000
                                                    ------------   ------------

Income before income taxes                               359,000        175,000
Income taxes (benefit)  (Note 2)                         (34,000)        (1,000)
                                                    ------------   ------------

Net income                                          $    393,000   $    176,000
                                                    ============   ============

Basic and diluted net income per share              $        .01   $        .01
                                                    ============   ============

Weighted average number of common shares (basic)      31,338,000     30,172,000
                                                    ------------   ------------
Weighted average number of common shares (diluted)    34,177,000     32,611,000
                                                    ------------   ------------

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       4
<PAGE>

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

                                                          Three Months Ended
                                                               March 31,
                                                          2005          2004
                                                       ----------    ----------
Cash flows from operating activities:
Net income                                             $  393,000    $  176,000
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Change in allowance for doubtful accounts              45,000        13,000
    Depreciation and amortization                          10,000         8,000
    Deferred compensation expense                          17,000         8,000
    Deferred income taxes                                 (56,000)      (11,000)
Changes in assets and liabilities:
    Accounts receivable                                    56,000      (243,000)
    Other current assets                                  348,000        32,000
    Loan receivable                                            --       100,000
    Other assets                                          (60,000)      (23,000)
    Accounts payable and accrued liabilities             (471,000)       59,000
                                                       ----------    ----------

Net cash provided by operating activities                 282,000       119,000
                                                       ----------    ----------

Cash flows from investing activities:
    Capital expenditures                                  (47,000)       (1,000)
                                                       ----------    ----------
Net cash used in investing activities                     (47,000)       (1,000)
                                                       ----------    ----------

Cash flows from financing activities:
    Exercise of stock options                              23,000         5,000
    Decrease in  loan payable, net                       (245,000)     (677,000)
    Sale of common stock                                                442,000
                                                       ----------    ----------
Net cash used in financing activities                    (222,000)     (230,000)
                                                       ----------    ----------

Net change in cash                                         13,000      (112,000)
Cash at beginning of period                                38,000       133,000
                                                       ----------    ----------

Cash at end of period                                  $   51,000    $   21,000
                                                       ==========    ==========

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       5
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
              NOTES 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-KSB for
the year ended  December  31,  2004 as filed with the  Securities  and  Exchange
Commission.

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 though
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 $46.5 million, $8.7 million and $1.5
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).

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  subsidiary  Sunteck  Transport &  Logistics,  Inc.,
collectively (Sunteck).  All significant  intercompany balances and transactions
have been eliminated in consolidation.


                                       6
<PAGE>

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 the pick up 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.

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.

Cash

      From time to time,  the Company has on deposit at  financial  institutions
cash balances which exceed federal deposit  insurance  limitations.  The Company
has not  experienced  any losses in such accounts and believes it is not exposed
to any significant credit risk on cash.

Fixed Assets

      Fixed  assets as of March  31,  2005 and  December  31,  2004,  consisting
predominantly of furniture,  fixtures and equipment, 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.

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 2,839,000 and 2,439,000,  respectively,  for the periods ended
March 31, 2005 and 2004.

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.

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


                                       7
<PAGE>

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.

Stock-Based Compensation

      The Company applies Statement of Financial  Accounting  Standards No. 123,
"Accounting for Stock Based  Compensation" (SFAS 123). As permitted by SFAS 123,
the Company has chosen to continue to apply Accounting  Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees" (APB 25) and, accordingly, no
compensation  cost has been  recognized for stock options issued to employees in
the financial statements.

      The  pro-forma  effect of options  issued to  employees  on net income and
earnings per share, utilizing the Black-Scholes option-pricing model, consistent
with the  method  stipulated  by SFAS 123,  was not  material  to the  Company's
results of operations.

      The Company accounts for stock options issued to  non-employees  using the
fair  value  method  in  accordance  with  SFAS  123.   Deferred   compensation,
representing  the  fair  market  value  of  the  options  issued  utilizing  the
Black-Scholes  option-pricing  model,  is charged to  earnings  over the vesting
period.

Note 2- Income Taxes

      For the periods  ended March 31, 2005 and 2004,  the  provision for income
taxes consisted of the following:

<TABLE>
<CAPTION>
                                                     2005                        2004
                                            ---------------------------------------------------
                                             Current      Deferred       Current      Deferred
                                            ---------------------------------------------------
<S>                                         <C>           <C>           <C>           <C>
      Tax expense before application of
         operating loss carryforwards       $ 143,000     $      --     $  69,000     $      --
      Tax expense (benefit) of operating
         loss carryforwards                  (121,000)      121,000       (59,000)       59,000
      Change in valuation allowance                --      (177,000)           --       (70,000)
                                            ---------------------------------------------------
      Income tax expense (benefit)          $  22,000     $ (56,000)    $  10,000     $ (11,000)
                                            ---------------------------------------------------
</TABLE>


                                       8
<PAGE>

      Deferred  taxes are  comprised  of the  following  at March  31,  2005 and
December 31, 2004:

                                                  March 31,      December 31,
                                                    2005             2004
                                                 -----------     ------------
           Deferred tax assets:
              Net operating loss carryforward    $ 5,469,000     $ 5,590,000
                                                 -----------     -----------
           Gross deferred tax assets               5,469,000       5,590,000
           Less: valuation allowance              (4,092,000)     (4,269,000)
                                                 -----------     -----------

           Deferred tax asset                    $ 1,377,000     $ 1,321,000
                                                 ===========     ===========

      The deferred tax asset  represents  expected future tax savings  resulting
from the Company's net operating loss carryforward. As of December 31, 2004, the
Company has a net operating loss carryforward of approximately $16.5 million for
federal  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.  The Company has established a valuation allowance
for the portion of the possible tax savings not likely to be realized by the end
of the carryforward period.

      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 a portion of
the net operating  loss  carryforward  before its  expiration in 2014.  However,
there can be no assurance that the Company will meet its  expectations of future
income.

   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.  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


                                       9
<PAGE>

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 non-asset  based  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 non-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 transportation services business with revenue, net
revenue and net income of  approximately  $46.5  million,  $8.7 million and $1.5
million, respectively, during our most recently completed fiscal year.

      Our brokerage  services are provided though a network of independent sales
agents  throughout the United States and Canada.  Our services include arranging
for the  transport  of  customers'  freight  from the  shippers  location to the
designated  destination.  We do not  own  any  trucking  equipment  and  rely on
independent  carriers  for  the  movement  of  customers'  freight.  We  seek to
establish  long-term  relationships  with our customers and provide a variety of
logistics  services and solutions to eliminate  inefficiencies in our customers'
supply chain management.

      Our contract carrier services,  which commenced in 2003, are also provided
through a network of independent  sales agents and  independent  owner-operators
throughout  the  United  States.  We do  no  own  any  trucking  equipment;  our
independent  owner-operators  lease onto our  operating  authority and transport
freight under the Sunteck name.

      The most  significant  factor in our growth  during the past two years has
been the expansion of our  brokerage  services  agent network and, in 2003,  the
introduction  and  expansion of our contract  carrier  services  agent and owner
operator network.  This growth is readily measured by the number of transactions
we have processed,  which increased for the respective  three month periods from
8,300 in 2004 to 13,300 is 2005, an increase of 60%. The average revenue dollars
per load in our brokerage division increased by 20% in 2005 as compared to 2004.
This is the  result of  several  factors  including  an  increase  in  truckload
business versus less than truckload at higher per load revenues, the addition of
sales  agents  hauling  heavy  equipment at higher per load  revenues  and, to a
lesser degree, a general increase in prices.  The net revenue  percentage in our
brokerage  division  increased  by 18% in  2005 as  compared  to  2004.  This is
primarily the result of revenue mix and, to a lesser degree,  a general increase
in prices.

Results of operations

For the three months ended March 31, 2005 and 2004

      During the quarter  ended March 31, 2005,  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.


                                       10
<PAGE>

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

                                               2005            2004
                                            ----------      ----------

           Net revenues                       100.0%          100.0%

             Commissions                       61.9%           56.8%
             Operating expenses                24.8%           30.4%
             Interest expense                   1.6%             .9%
             Income taxes (benefit)            (1.1)%           (.1)%

           Net income                          12.8%           11.9%

Revenues

      Gross  revenues,  consisting  of freight fees and other  related  services
revenue,  totaled  $14,915,000 for the quarter ended March 31, 2005, as compared
with $8,159,000 in the prior year period,  an increase of 83%. Net revenues were
$3,067,000 for the quarter ended March 31, 2005, as compared with  $1,478,000 in
the prior year  period,  an  increase of 108%.  Gross  revenues  from  brokerage
services  increased to $12,372,000 from $6,848,000 and net revenues increased to
$2,581,000 from $1,216,000 in the prior year period. This increase is the direct
result of the  continued  expansion of our agent network and customer base which
resulted  in a 51%  increase  in the  number of  transactions  processed  and an
increase of 19% in the average  dollars per load.  Gross  revenues from contract
carrier  services  increased  to  $2,543,000  from  $1,311,000  and net revenues
increased to $486,000 from  $262,000  which is a direct result of a 93% increase
in the number of transactions processed.

Costs and expenses

      Commissions  totaled  $1,900,000  for the quarter ended March 31, 2005, as
compared  with  $840,000 in the prior year  period,  an  increase of 126%.  As a
percentage of net revenues, commissions were 62% for the quarter ended March 31,
2005 as compared with 57% in the prior year period.  This increase is the result
of the higher  commission rates associated with the expansion of the sales agent
base in our brokerage services.

      Operating  expenses totaled $760,000 for the quarter ended March 31, 2005,
as compared  with  $449,000 in the prior year  period,  an increase of 69%. As a
percentage  of net revenues,  operating  expenses were 25% for the quarter ended
March 31, 2005, as compared  with 30% in the prior year period.  During 2005, we
moved our  headquarters  increasing  our  space to 5,300  square  feet.  We have
increased  administrative  staff  commensurate  with the increase in transaction
volume.  We presently  have  adequate  facilities  and  management to handle the
present and anticipated  transaction volume in 2005 without significant increase
in overhead.

      Interest expense,  which includes fees and other bank charges, was $48,000
for the quarter ended March 31, 2005, as compared with $14,000 in the prior year
period.  This increase is primarily the result of increased  borrowings pursuant
to our $2.5  million  line of credit at an interest  rate of prime + 1/2% and an
increase in bank fees as a result of increased transaction volume.

Income tax

      The income tax  benefit of $34,000  for the  quarter  ended March 31, 2005
consisted of $177,000  resulting from the anticipated  future  utilization of an
available federal tax loss carryforward, net of the amortization of deferred tax
benefit of $121,000 and state income taxes of $22,000. The income tax benefit of
$1,000 for the quarter ended March 31, 2004 consisted of $70,000  resulting from
the   anticipated   future   utilization  of  an  available   federal  tax  loss
carryforward, net of


                                       11
<PAGE>

the  amortization  of deferred  tax benefit of $59,000 and state income taxes of
$10,000.  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 a portion of
the net operating loss carryforward before its expiration in 2014.  Accordingly,
as of March 31,  2005,  the  valuation  allowance  was reduced by an  additional
$177,000.

Net income

      Net income  totaled  $393,000  for the quarter  ended March 31,  2005,  as
compared  with  $176,000 in the prior year period.  This  increase is the direct
result of the  increase  in  revenues  due to the  continuing  expansion  of our
operations and the additional recognition on the deferred tax asset of $177,000.

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 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,  in 2003,  the
introduction  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 quarter  ended March 31, 2005,  we increased  gross  revenues from
$8.2  million to $14.9  million and had net income of $393,000 as compared  with
$176,000 in the prior year. As of March 31, 2005, we had an accumulated  deficit
of $14.3  million.  Factors that could  adversely  affect our operating  results
include:

            o     the success of Sunteck in expanding  its business  operations;
                  and

            o     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.

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 lines of credit.

      At  March  31,  2005,  we  had  outstanding  $1,753,000  pursuant  to  our
$2,500,000 line of credit. The line of credit, obtained from a bank in May 2003,
is subject to the  maintenance  of certain  financial  covenants,  is secured by
accounts  receivable and other  operating  assets,  and matures in June 2005. 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  March  31,  2005,  we had  liquid  assets  of  approximately  $51,000.
Available cash is used to reduce borrowings on our line of credit.


                                       12
<PAGE>

      The total  amount of debt  outstanding  as of March 31,  2005 and 2004 was
$1,753,000  and $369,000,  respectively.  The following  table presents our debt
instruments and their weighted  average  interest rates as of March 31, 2005 and
2004, respectively:

                                         Weighted                     Weighted
                          Balance      Average Rate     Balance     Average Rate
                         -------------------------------------------------------
                                    2005                        2004
                         -------------------------------------------------------

      Line of Credit     $1,753,000        6.0%        $ 369,000         4.5%

      Inflation  and changing  prices had no material  impact on our revenues or
the results of operations for the period ended March 31, 2005.

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 of the  Notes  to  Financial  Statements
includes a summary of the  significant  accounting  policies and methods used in
the  preparation of the Company's  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. 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.

Income Taxes

      The deferred tax asset  represents  expected future tax savings  resulting
from our net operating loss carryforward.  As of December 31, 2004, we had a net
operating loss  carryforward of  approximately  $16.5 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,  shareholder  changes,  including  the possible  issuance of  additional
shares in one or more financing or acquisition transactions. We have established
a valuation  allowance  for the portion of possible tax savings not likely to be
realized by the end of the carryforward period.


                                       13
<PAGE>

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.

                             CONTROLS AND PROCEDURES

      The Company's  management,  with the  participation of the Company's Chief
Executive Officer and Chief Financial  Officer,  has evaluated the effectiveness
of the Company's  disclosure controls and procedures (as such term is defined in
Rules  13a-15(e) and  15d-15(e)  under the  Securities  Exchange Act of 1934, as
amended  (the  "Exchange  Act"))  as of the end of the  period  covered  by this
report.  Based on that  evaluation,  the Company's Chief  Executive  Officer and
Chief Financial  Officer have concluded that, as of the end of such period,  the
Company's disclosure controls and procedures are effective.

      There have not been any changes in the  Company's  internal  control  over
financial  reporting  (as such term is defined in Rules  13a-15(f) and 15d-15(f)
under the Exchange  Act) during the  Company's  fiscal  first  quarter that have
materially  affected,  or  are  reasonably  likely  to  materially  affect,  the
Company's internal control over financial reporting.

                                     Part II

                                OTHER INFORMATION

Item 1 - 5: Inapplicable

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.


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<PAGE>

                                   SIGNATURES

Pursuant to the  requirements  of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned  thereunto
authorized.

                                            AUTOINFO, INC.


                                            By: /s/ William Wunderlich
                                                --------------------------------
                                                William Wunderlich
                                                Executive Vice President and
                                                Principal Financial Officer

Date: May 11, 2005


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