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 1934

            For the quarterly period ended: JUNE 30, 2006

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

            For 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          (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 a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

Large accelerated filer |_|   Accelerated filer |_|    Non-accelerated filer |X|

Indicate by check mark whether the  Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

                                 YES |_| NO |X|

Number of shares  outstanding  of the  Registrant's  common stock as of July 31,
2006: 31,935,000 shares of common stock.

<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                                      INDEX

Part I. Financial Information:

Item 1.   Consolidated Financial Statements:                                Page

          Balance Sheets
            June 30, 2006 (unaudited) and December 31, 2005 (audited) ....   3

          Statements of Income (unaudited)
            Three and six months ended June 30, 2006 and 2005 ............   4

          Statements of Cash Flows  (unaudited)
            Six months ended June 30, 2006 and 2005 ......................   5

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

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

Item 3.   Quantitative and Qualitative Disclosures About Market Risk .....  15

Item 4.   Controls and Procedures ........................................  15

Part II. Other Information ...............................................  15

Signatures ...............................................................  17


                                       2
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                             June 30,       December 31,
                                                               2006             2005
                                                           ------------     ------------
                                                            Unaudited         Audited
<S>                                                        <C>              <C>
ASSETS

Current assets:
   Cash                                                    $    145,000     $    419,000
   Acounts receivable, net of allowance for doubtful
     accounts of $285,000 and $201,000 as of June 30,
     2006 and December 31, 2005, respectively                14,179,000       12,735,000
   Deferred income taxes (Note 2)                               905,000          860,000
   Other current assets                                         414,000          255,000
                                                           ------------     ------------

        Total current assets                                 15,643,000       14,269,000

Fixed assets, net of accumulated depreciation                   278,000          292,000

Deferred income taxes (Note 2)                                2,865,000        2,047,000

Other assets                                                    319,000           38,000
                                                           ------------     ------------

                                                           $ 19,105,000     $ 16,646,000
                                                           ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Loan payable                                          $  1,162,000     $  1,280,000
     Accounts payable and accrued liabilities                 7,521,000        7,235,000
                                                           ------------     ------------
         Total current liabilities                            8,683,000        8,515,000
                                                           ------------     ------------

Stockholders' Equity
   Preferred stock - authorized 10,000,000 shares
     $.001 par value; issued and outstanding - 0 shares
     as of June 30, 2006 and December 31, 2005                       --               --
   Common stock - authorized 100,000,000 shares
     $.001 par value; issued and outstanding -
     31,843,000 shares as of June 30, 2006 and
     31,624,000 shares as of December 31, 2005                   32,000           32,000
   Other capital                                              1,219,000          549,000
   Deferred compensation                                     (1,029,000)        (413,000)
    Additional paid-in capital                               19,085,000       19,047,000
    Deficit                                                  (8,885,000)     (11,084,000)
                                                           ------------     ------------
        Total stockholders' equity                           10,422,000        8,131,000
                                                           ------------     ------------

                                                           $ 19,105,000     $ 16,646,000
                                                           ============     ============
</TABLE>

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


                                       3
<PAGE>

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

<TABLE>
<CAPTION>
                                                   Six Months Ended                  Three Months Ended
                                                       June 30,                           June 30,
                                             -----------------------------     -----------------------------
                                                 2006             2005             2006             2005
                                             ------------     ------------     ------------     ------------
<S>                                          <C>              <C>              <C>              <C>
Gross revenues                               $ 38,954,000     $ 30,392,000     $ 20,858,000     $ 15,477,000
Cost of transportation                         30,507,000       24,410,000       16,399,000       12,562,000
                                             ------------     ------------     ------------     ------------

Net revenues                                    8,447,000        5,982,000        4,459,000        2,915,000
                                             ------------     ------------     ------------     ------------

Commissions                                     5,207,000        3,639,000        2,729,000        1,739,000
Operating expenses                              1,799,000        1,537,000          911,000          757,000
                                             ------------     ------------     ------------     ------------
                                                7,006,000        5,176,000        3,640,000        2,496,000
                                             ------------     ------------     ------------     ------------

Income from operations                          1,441,000          806,000          819,000          419,000
Interest expense                                   24,000           39,000           18,000           11,000
                                             ------------     ------------     ------------     ------------

Income before income taxes                      1,417,000          767,000          801,000          408,000
Income taxes (benefit) (Note 2)                  (782,000)         (67,000)        (243,000)         (33,000)
                                             ------------     ------------     ------------     ------------

Net income                                   $  2,199,000     $    834,000     $  1,044,000     $    441,000
                                             ============     ============     ============     ============

Net income per share:
     Basic                                   $        .07     $        .03     $        .03     $        .01
     Diluted                                 $        .06     $        .02     $        .03     $        .01

Weighted average number of common shares:
     Basic                                     31,786,000       31,408,000       31,821,000       31,479,000
     Diluted                                   35,448,000       34,024,000       36,390,000       33,872,000
</TABLE>

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


                                       4
<PAGE>

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

<TABLE>
<CAPTION>
                                                             Six Months Ended
                                                                 June 30,
                                                           2006            2005
                                                       -----------     -----------
<S>                                                    <C>             <C>
Cash flows from operating activities:
Net income                                             $ 2,199,000     $   834,000
Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
     Change in allowance for doubtful accounts              84,000          71,000
     Depreciation and amortization                          50,000          36,000
     Deferred compensation expense                          60,000          47,000
     Deferred income taxes                                (863,000)       (112,000)
Changes in assets and liabilities:
     Accounts receivable                                (1,528,000)        944,000
     Other current assets                                 (159,000)        400,000
     Other assets                                         (281,000)         30,000
     Accounts payable and accrued liabilities              286,000          24,000
                                                       -----------     -----------

Net cash provided by (used in) operating activities       (152,000)      2,274,000
                                                       -----------     -----------

Cash flows from investing activities:
     Capital expenditures                                  (37,000)       (186,000)
                                                       -----------     -----------
Net cash used in investing activities                      (37,000)       (186,000)
                                                       -----------     -----------

Cash flows from financing activities:
    Exercise of stock options                               33,000          48,000
    Decrease in  loan payable, net                        (118,000)     (1,998,000)
                                                       -----------     -----------
Net cash used in financing activities                      (85,000)     (1,950,000)
                                                       -----------     -----------

Net change in cash                                        (274,000)        138,000
Cash at beginning of period                                419,000          38,000
                                                       -----------     -----------

Cash at end of period                                  $   145,000     $   176,000
                                                       ===========     ===========
</TABLE>

              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-K for
the year ended  December  31,  2005 as filed with the  Securities  and  Exchange
Commission.  We  undertake  no  obligation  to  revise or  update  publicly  any
forward-looking statements for any reason.

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  $68.0  million,  $13.6
million and $3.6 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 three and six months ended June 30,
2006 and 2005 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


                                       6
<PAGE>

with GAAP have been omitted from these  statements.  The consolidated  financial
statements and notes thereto  should be read in  conjunction  with the financial
statements  and notes  included  in our Annual  Report on Form 10-K for the year
ended December 31, 2005.

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.

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 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.

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 June  30,  2006 and  December  31,  2005,  consisting
predominantly of furniture,  fixtures, 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.

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 4,569,000 and 2,393,000,  and 3,662,000 and 2,616,000,  for the
three and six month periods ended June 30, 2006 and 2005, respectively.


                                       7
<PAGE>

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  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

      On January 1, 2006, the Company adopted Statement of Financial  Accounting
Standards No. 123R,  "Share-Based  Payment"  (SFAS 123R)  utilizing the modified
prospective  transition method.  SFAS 123R requires employee stock options to be
valued  at fair  value on the date of grant  and  charged  to  expense  over the
applicable vesting period. Under the modified  prospective method,  compensation
expense is recognized for all share based payments issued on or after January 1,
2006 and for all share  payments  issued to  employees  prior to January 1, 2006
that remain unvested.

      The Company's results of operations for the six months ended June 30, 2006
include an  additional  $6,000 in operating  expense  related to the adoption of
SFAS 123R. In accordance with the modified  prospective method, the consolidated
financial statements for prior periods have not been restated to reflect, and do
not include, the impact of SFAS 123R.

      Adoption of SFAS 123R did not change the  Company's  accounting  for share
based payments issued to non-employees.

Note 2- Income Taxes

      For the three and six month  periods  ended  June 30,  2006 and 2005,  the
provision for income taxes consisted of the following:

<TABLE>
<CAPTION>
                                                             Six Months Ended June 30,
                                            -----------------------------------------------------------
                                                        2006                            2005
                                            -----------------------------------------------------------
                                              Current         Deferred        Current         Deferred
                                            -----------------------------------------------------------
<S>                                         <C>             <C>             <C>             <C>
      Tax expense before application of
           operating loss carryforwards     $   556,000     $        --     $   307,000     $        --
      Tax expense (benefit) of operating
           loss carryforwards                  (475,000)        475,000        (262,000)        262,000
      Change in valuation allowance                  --      (1,338,000)             --        (374,000)
                                            -----------------------------------------------------------

      Income tax expense (benefit)          $    81,000     $  (863,000)    $    45,000     $  (112,000)
                                            -----------------------------------------------------------
</TABLE>


                                       8
<PAGE>

<TABLE>
<CAPTION>
                                                            Three Months Ended June 30,
                                            -----------------------------------------------------------
                                                        2006                            2005
                                            -----------------------------------------------------------
                                              Current         Deferred        Current         Deferred
                                            -----------------------------------------------------------
<S>                                         <C>             <C>             <C>             <C>
      Tax expense before application of
           operating loss carryforwards     $   312,000     $        --     $   164,000     $        --
      Tax expense (benefit) of operating
           loss carryforwards                  (266,000)        266,000        (141,000)        141,000
      Change in valuation allowance                  --        (555,000)             --        (197,000)
                                            -----------------------------------------------------------

      Income tax expense (benefit)          $    46,000     $  (289,000)    $    23,000     $   (56,000)
                                            -----------------------------------------------------------
</TABLE>

      Deferred  taxes  are  comprised  of the  following  at June  30,  2006 and
December 31, 2005:

                                                      June 30,      December 31,
                                                        2006            2005
                                                     -----------    ------------
             Deferred tax assets:
                  Net operating loss carryforward    $ 4,397,000    $ 4,872,000
                                                     -----------    -----------

             Gross  deferred tax assets                4,397,000      4,872,000
             Less: valuation allowance                  (627,000)    (1,965,000)
                                                     -----------    -----------

             Deferred tax asset                      $ 3,770,000    $ 2,907,000
                                                     ===========    ===========

      The deferred tax asset  represents  expected future tax savings  resulting
from the Company's net operating loss carryforward. As of December 31, 2005, the
Company has a net operating loss carryforward of approximately $14.3 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.


                                       9
<PAGE>

   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 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  $68.0 million,  $13.6 million and $3.6 million,
respectively,  during our most recently  completed fiscal year and approximately
$39.0  million,  $8.5  million and $2.2  million,  respectively,  during the six
months ended June 30, 2006.

      Our brokerage services are provided through 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 not  own  any  trucking  equipment;  our
independent  owner-operators  lease onto our  operating  authority and transport
freight under the Sunteck name.

      During the six months ended June 30, 2006 compared to 2005,  the growth of
our  business  is readily  measured  by (i) the number of  transactions  we have
processed,  which  increased for the respective six month periods from 26,300 in
2005 to 28,600 in 2006, an increase of 9%, and (ii) the average  revenue dollars
per load, which increased by 18% in 2006


                                       10
<PAGE>

as compared to 2005. 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  increased by 10% in 2006 as compared to 2005.  This is primarily the
result of revenue mix and, to a lesser degree, a general increase in prices.

      During the three months ended June 30, 2006  compared to 2005,  the growth
of our business is readily  measured by (i) the number of  transactions  we have
processed, which increased for the respective three month periods from 13,000 in
2005 to 14,850 in 2006, an increase of 14%, and (ii) the average revenue dollars
per load, which increased by 18% in 2006 as compared to 2005. 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  increased  by 14% in 2006 as
compared to 2005.  This is primarily  the result of revenue mix and, to a lesser
degree, a general increase in prices.

      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.

Results of operations

For the three and six months ended June 30, 2006 and 2005

      During the three and six month  periods  ended June 30, 2006, 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         Six Months Ended
                                      June 30,                  June 30,
                                 2006         2005         2006         2005
                               --------     --------     --------     --------

      Net revenues                100.0%       100.0%       100.0%       100.0%
                               --------     --------     --------     --------

         Commissions               61.2%        59.6%        61.6%        60.8%
         Operating expenses        20.4%        26.0%        21.3%        25.7%
         Interest expense            .4%          .4%          .3%          .7%
         Income taxes              (5.4%)       (1.1%)       (9.2%)       (1.1%)
                               --------     --------     --------     --------

      Net income                   23.4%        15.1%        26.0%        13.9%
                               --------     --------     --------     --------


                                       11
<PAGE>

Revenues

Three Months Ended June 30, 2006 Compared to 2005

      For the three months ended June 30, 2006,  gross  revenues,  consisting of
freight fees and other related services revenue, totaled $20,858,000 as compared
with $15,477,000 in the prior year period, an increase of 35%. Net revenues were
$4,459,000 as compared with $2,915,000 in the prior year period,  an increase of
53%.

      Gross  revenues from  brokerage  services  increased to  $17,433,000  from
$13,139,000  and net revenues  increased to  $3,923,000  from  $2,502,000 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 14% increase in the
number of  transactions  processed and an increase of 17% in the average dollars
per load.

      Gross revenues from contract carrier services increased to $3,425,000 from
$2,338,000  and net revenues  increased  to $536,000  from  $413,000  which is a
direct result of a 17% decrease in the number of transactions  processed  offset
by an increase of 25% in the average dollars per load.

Six Months Ended June 30, 2006 Compared to 2005

      For the six months  ended June 30, 2006,  gross  revenues,  consisting  of
freight fees and other related services revenue, totaled $38,954,000 as compared
with $30,392,000 in the prior year period, an increase of 28%. Net revenues were
$8,447,000 as compared with $5,982,000 in the prior year period,  an increase of
41%.

      Gross  revenues from  brokerage  services  increased to  $32,849,000  from
$25,511,000  and net revenues  increased to  $7,464,000  from  $5,084,000 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 10% increase in the
number of  transactions  processed and an increase of 18% in the average dollars
per load.

      Gross revenues from contract carrier services increased to $6,105,000 from
$4,881,000  and net revenues  increased  to $983,000  from  $898,000  which is a
direct  result of a 6% increase in the number of  transactions  processed and an
increase of 18% in the average dollars per load.

Costs and expenses

Commissions

      For the three months ended June 30, 2006,  commissions  totaled $2,729,000
as compared  with  $1,739,000  in the prior year period.  As a percentage of net
revenues,  commissions  were 61% as compared  with 60% in the prior year period.
For the six months  ended  June 30,  2006,  commissions  totaled  $5,207,000  as
compared  with  $3,639,000  in the prior year  period.  As a  percentage  of net
revenues,  commissions  were 62% as compared  with 61% in the prior year period.
These increases are the result of the higher  commission  rates  associated with
the expansion of the sales agent base in our brokerage services.

Operating expenses

      For the three  months  ended June 30,  2006,  operating  expenses  totaled
$911,000 as compared with $757,000 in the prior year period.  As a percentage of
net revenues, operating expenses were 20% as compared with 26% in the prior year
period.  For the six months  ended June 30,  2006,  operating  expenses  totaled
$1,799,000 as compared with $1,537,000 in the prior year period. As a percentage
of net revenues,  operating  expenses were 21% as compared with 26% in the prior
year period.  These decreases are the direct result of  management's  ability to
leverage selling, general and administrative


                                       12
<PAGE>

expenses in  connection  with  business  expansion.  During  2006,  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 2006  without  a  significant  increase  in
overhead.

Interest Expense

      For the three months ended June 30, 2006, interest expense totaled $18,000
as compared  with $11,000 in the prior year period.  This  increase is primarily
the result of increased  borrowings  pursuant to our $2.5 million line of credit
and an  increase  in the average  interest  rate during the period.  For the six
months ended June 30, 2006,  interest  expense  totaled $24,000 as compared with
$39,000 in the prior year  period.  This  decrease  is  primarily  the result of
reduced  borrowings  during  the  first  quarter  of 2006 as  compared  with the
corresponding 2005 period.

Income tax

      The income tax benefit of  $243,000  for the three  months  ended June 30,
2006 consisted of $555,000  resulting from the anticipated future utilization of
an available federal tax loss carryforward,  net of the amortization of deferred
tax  benefit of  $266,000  and state  income  taxes of  $46,000.  The income tax
benefit  of  $33,000  for the three  months  ended June 30,  2005  consisted  of
$197,000  resulting  from the  anticipated  future  utilization  of an available
federal tax loss  carryforward,  net of the amortization of deferred tax benefit
of $141,000 and state income taxes of $23,000.

      The income tax benefit of $782,000  for the six months ended June 30, 2006
consisted of $1,338,000  resulting from the anticipated future utilization of an
available federal tax loss carryforward, net of the amortization of deferred tax
benefit of $475,000 and state income taxes of $81,000. The income tax benefit of
$67,000 for the six months ended June 30, 2005  consisted of $374,000  resulting
from  the  anticipated  future  utilization  of an  available  federal  tax loss
carryforward,  net of the  amortization  of deferred tax benefit of $262,000 and
state income taxes of $45,000.

      Based upon  available  objective  evidence,  including our  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,  the valuation allowance was reduced
by an  additional  $555,000 and $783,000 for the three and six months ended June
30, 2006, respectively.

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  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, 2006, we increased  gross  revenues from
$30.4 million to $39.0 million and had net income of $2,199,000 as compared with
$834,000 in the prior year. As of June 30, 2006, we had an  accumulated  deficit
of $8.9  million.  Factors that could  adversely  affect our  operating  results
include:

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


                                       13
<PAGE>

            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 June 30, 2006, we had borrowings of $1,162,000  outstanding 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 September
2006. 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,  2006,  we had  liquid  assets  of  approximately  $145,000.
Available cash is used to reduce borrowings on our line of credit.

      The total  amount  of debt  outstanding  as of June 30,  2006 and 2005 was
$1,162,000 and $1,280,000,  respectively.  The following table presents our debt
instruments  and their weighted  average  interest rates as of June 30, 2006 and
2005, respectively:

<TABLE>
<CAPTION>
                                           Weighted                      Weighted
                              Balance    Average Rate      Balance     Average Rate
                           --------------------------------------------------------
                                      2006                           2005
                           --------------------------------------------------------
<S>                        <C>               <C>         <C>                <C>
       Line of Credit      $ 1,162,000       8.78%       $ 1,280,000        6.5%
</TABLE>

      Inflation  and changing  prices had no material  impact on our revenues or
the results of operations for the period ended June 30, 2006.

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  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.


                                       14
<PAGE>

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 carryforward.  As of December 31, 2005, 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.

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.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      None.

                             CONTROLS AND PROCEDURES

      Our management,  with the participation of our Chief Executive Officer and
Chief  Financial  Officer,  has evaluated the  effectiveness  of our  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,  our Chief  Executive  Officer  and  Chief  Financial  Officer  have
concluded  that,  as of the end of such  period,  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 is recorded,
processed,  summarized  and reported,  within the time periods  specified in the
SEC's rules and forms. Information required to be disclosed by us in the reports
we file or submit under the  Exchange Act is  accumulated  and  communicated  to
management,  including our principal executive and principal financial officers,
as appropriate to allow timely decisions regarding required disclosure.


                                       15
<PAGE>

      There have not been any changes in our  internal  control  over  financial
reporting (as such term is defined in Rules  13a-15(f)  and 15d-15(f)  under the
Exchange Act) that occurred  during the 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 - 4: Inapplicable.

Item 5:     Other information.

            In June 2006, the our board of directors approved the AutoInfo, Inc.
2006  Independent  Sales Agents' Stock Option Plan providing for the granting of
non-qualified  stock  options for the purchase of up to 7,000,000  shares of our
common stock to our  independent  sales agents,  on the terms and conditions set
forth  therein.  Further,  in June 2006,  our board of  directors  approved  the
AutoInfo,  Inc.  2006 Stock Option Plan  providing for the granting of qualified
and  non-qualified  stock options for the purchase of up to 3,000,000  shares of
our common stock to our officers, directors,  employees, agents and consultants,
on the terms and  conditions  set forth  therein.  The 2006 Stock Option Plan is
subject to stockholder approval.

Item 6:     Exhibits.

4A          2006 Independent Sales Agents' Stock Option Plan.*

4B          2006 Stock Option Plan.*

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.


                                       16
<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/ Harry Wachtel
                                         ---------------------------------------
                                         Harry Wachtel
                                         President and Chief Executive Officer

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

Date: August 1, 2006


                                       17