|                                                                               
|-------------------------------------------------------------------------------
|UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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:         SEPTEMBER 30, 2007                              
|                                  |                                                                                         
|o                                 | 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 incorporation |  | (I.R.S. Employer Identification number)
|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.
      YESxNOo
      Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definitionof accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

|Large accelerated filero | Accelerated filero | Non-accelerated filerx
|------------------------ | ------------------ | ----------------------
|                         |                    |                       

|                                                                                                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).
YESoNOx
Number of shares outstanding of the Registrants common stock as of November 8, 2007: 33,001,000
shares of common stock.

|
|



|AUTOINFO, INC. AND SUBSIDIARIES
    INDEX
|-----------------------------------------
|                                         

|Part I.   Financial Information: |  |                                                                                         |         
|-------------------------------- |  | --------------------------------------------------------------------------------------- | --------
|                                 |  |                                                                                         |         
|Item 1.                          |  | Consolidated Financial
      Statements:                                                | Page****
|                                 |  |                                                                                         |         
|                                 |  | Balance SheetsSeptember 30, 2007 (unaudited) and December 31, 2006 (audited)            | 3       
|                                 |  |                                                                                         |         
|                                 |  | Statements of Income (unaudited)Three and nine months ended September 30, 2007 and 2006 | 4       
|                                 |  |                                                                                         |         
|                                 |  | Statements of Cash Flows (unaudited)Nine months ended September 30, 2007 and 2006       | 5       
|                                 |  |                                                                                         |         
|                                 |  | Notes to Unaudited Consolidated Financial Statements                                    | 6       
|                                 |  |                                                                                         |         
|Item 2.                          |  | Managements Discussion and Analysis of FinancialCondition 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     |  |                                                                                         |         
|                                 |  |                                                                                         |         
|Item 6.                          |  | Exhibits                                                                                | 16      
|                                 |  |                                                                                         |         
|Signatures                       |  |                                                                                         | 17      

|2
|-



|PART I - FINANCIAL INFORMATION
AUTOINFO, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
|-----------------------------------------------------------------------------------------
|                                                                                         

|                                                                                                                                                                                                    | September 30,
      2007 |            | December 31,
      2006 |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | ---------- | ----------------------- | -
|                                                                                                                                                                                                    |                          |            |                         |  
|                                                                                                                                                                                                    | ***Unaudited***          |            | ***Audited***           |  
|**ASSETS**                                                                                                                                                                                          |                          |            |                         |  
|                                                                                                                                                                                                   
|Current assets:                                                                                                                                                                                     |                          |            |                         |  
|Cash and cash equivalents                                                                                                                                                                           | $                        | 132,000    |                         | $
|Accounts receivable, net of allowance for doubtful
       accounts of $317,000 and $249,000 as of September
       30, 2007 and December 31, 2006, respectively                                     |                          | 20,427,000 |                         |  
|Deferred income taxes (Note 2)                                                                                                                                                                      |                          | 1,445,000  |                         |  
|Other current assets                                                                                                                                                                                |                          | 750,000    |                         |  
|                                                                                                                                                                                                    |                          |            |                         |  
|                                                                                                                                                                                                   
|Total current assets                                                                                                                                                                                |                          | 22,754,000 |                         |  
|                                                                                                                                                                                                   
|Fixed assets, net of accumulated depreciation                                                                                                                                                       |                          | 450,000    |                         |  
|Deferred income taxes (Note 2)                                                                                                                                                                      |                          | 1,811,000  |                         |  
|Advances and other assets                                                                                                                                                                           |                          | 3,441,000  |                         |  
|                                                                                                                                                                                                    |                          |            |                         |  
|                                                                                                                                                                                                   
|                                                                                                                                                                                                    | $                        | 28,456,000 |                         | $
|                                                                                                                                                                                                    |                          |            |                         |  
|**LIABILITIES AND STOCKHOLDERS EQUITY**                                                                                                                                                            |                          |            |                         |  
|                                                                                                                                                                                                   
|Current liabilities:                                                                                                                                                                                |                          |            |                         |  
|Loan payable (Note 3)                                                                                                                                                                               | $                        |           |                         | $
|Accounts payable and accrued liabilities                                                                                                                                                            |                          | 10,540,000 |                         |  
|                                                                                                                                                                                                    |                          |            |                         |  
|Total current liabilities                                                                                                                                                                           |                          | 10,540,000 |                         |  
|                                                                                                                                                                                                    |                          |            |                         |  
|                                                                                                                                                                                                   
|Loan payable (Note 3)                                                                                                                                                                               |                          | 4,330,000  |                         |  
|                                                                                                                                                                                                   
|Stockholders equity:
    Preferred stock  authorized 10,000,000 shares
        $.001 par value; issued and outstanding  0 shares
        as of September 30, 2007 and December 31, 2006          |                          |           |                         |  
|Common stock - authorized 100,000,000 shares
       $.001 par value; issued and outstanding -
      33,001,000 shares as of September 30, 2007 and
       32,102,000 shares as of December 31, 2006 |                          | 33,000     |                         |  
|Additional paid-in capital                                                                                                                                                                          |                          | 19,797,000 |                         |  
|Deficit                                                                                                                                                                                             |                          | (6,244,000 | )                       |  
|                                                                                                                                                                                                    |                          |            |                         |  
|Total stockholders equity                                                                                                                                                                          |                          | 13,586,000 |                         |  
|                                                                                                                                                                                                    |                          |            |                         |  
|                                                                                                                                                                                                   
|                                                                                                                                                                                                    | $                        | 28,456,000 |                         | $
|                                                                                                                                                                                                    |                          |            |                         |  

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

|3
|-



|AUTOINFO, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(Unaudited)
|---------------------------------------------------------------------------
|                                                                           

|                                                 | Nine Months Ended
      September 30, |            | Three Months Ended
      September 30, |  
|------------------------------------------------ | ------------------------------------- | ---------- | -------------------------------------- | -
|
|
|                                                 |                                       |            |                                       
|                                                
|Gross revenues                                   | $                                     | 77,357,000 |                                        | $
|Cost of transportation                           |                                       | 61,825,000 |                                        |  
|                                                 |                                       |            |                                       
|                                                
|Net revenues                                     |                                       | 15,532,000 |                                        |  
|                                                 |                                       |            |                                       
|                                                
|Commissions                                      |                                       | 9,896,000  |                                        |  
|Operating expenses                               |                                       | 3,443,000  |                                        |  
|                                                 |                                       |            |                                       
|                                                 |                                       | 13,339,000 |                                        |  
|                                                 |                                       |            |                                       
|                                                
|Income from operations                           |                                       | 2,193,000  |                                        |  
|Interest expense                                 |                                       | 172,000    |                                        |  
|                                                 |                                       |            |                                       
|                                                
|Income before income taxes                       |                                       | 2,021,000  |                                        |  
|Income taxes (benefit) (Note 2)                  |                                       | 809,000    |                                        |  
|                                                 |                                       |            |                                       
|                                                
|Net income                                       | $                                     | 1,212,000  |                                        | $
|                                                 |                                       |            |                                       
|                                                
|Net income per share:                            |                                       |            |                                        |  
|Basic                                            | $                                     | .04        |                                        | $
|Diluted                                          | $                                     | .03        |                                        | $
|                                                
|Weighted average number of 
      common shares: |                                       |            |                                        |  
|Basic                                            |                                       | 32,693,000 |                                        |  
|Diluted                                          |                                       | 35,947,000 |                                        |  

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

|4
|-



|AUTOINFO, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
|-------------------------------------------------------------------------------
|                                                                               

|                                                                                 | Nine Months Ended
      September 30, |           
|-------------------------------------------------------------------------------- | ------------------------------------- | ----------
|
|                                                                                 |                                       |           
|Cash flows from operating activities:                                            |                                       |           
|Net income                                                                       | $                                     | 1,212,000 
|Adjustments to reconcile net income to net cash
   used in operating activities: |                                       |           
|Change in allowance for doubtful accounts                                        |                                       | 68,000    
|Depreciation and amortization                                                    |                                       | 86,000    
|Stock-based compensation expense                                                 |                                       | 129,000   
|Deferred income taxes (benefit)                                                  |                                       | 691,000   
|Changes in assets and liabilities:                                               |                                       |           
|Accounts receivable                                                              |                                       | (3,528,000
|Other current assets                                                             |                                       | (388,000  
|Advances and other assets                                                        |                                       | (1,366,000
|Accounts payable and accrued liabilities                                         |                                       | 2,165,000 
|                                                                                 |                                       |           
|                                                                                
|Net cash used in operating activities                                            |                                       | (931,000  
|                                                                                 |                                       |           
|                                                                                
|Cash flows from investing activities:                                            |                                       |           
|Capital expenditures                                                             |                                       | (212,000  
|                                                                                 |                                       |           
|Net cash used in investing activities                                            |                                       | (212,000  
|                                                                                 |                                       |           
|                                                                                
|Cash flows from financing activities:                                            |                                       |           
|Exercise of stock options                                                        |                                       | 250,000   
|Increase in loan payable, net                                                    |                                       | 880,000   
|                                                                                 |                                       |           
|Net cash provided by financing activities                                        |                                       | 1,129,000 
|                                                                                 |                                       |           
|                                                                                
|Net change in cash and cash equivalents                                          |                                       | (14,000   
|Cash and cash equivalents, beginning of period                                   |                                       | 146,000   
|                                                                                 |                                       |           
|                                                                                
|Cash and cash equivalents, end of period                                         | $                                     | 132,000   
|                                                                                 |                                       |           

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

|5
|-



|AUTOINFO, INC. AND SUBSIDIARIESNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Forward Looking Statements
Certain statements made in this Quarterly Report on Form 10-Q are forward-looking statements
regarding the plans and objectives of management for future operations. Such statements involve known
and unknown risks, uncertainties and other factors that may cause our actual results, performance
or achievements of the Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. The forward-looking statements
included herein are based on current expectations that involve numerous risks and uncertainties.
Our plans and objectives are based, in part, on assumptions involving judgments with respect
to, among other things, future economic, competitive and market conditions and future business decisions,
all of which are difficult or impossible to predict accurately and many of which are beyond our control.
Although we believe that our assumptions underlying the forward-looking statements are reasonable,
any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the
forward-looking statements included in this report will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein particularly in view of
the current state of our operations, the inclusion of such information should not be regarded as
a statement by us or any other person that our objectives and plans will be achieved. Factors that
could cause actual results to differ materially from those expressed or implied by forward-looking
statements include, but are not limited to, the factors set forth under the headings Business,andRisk Factors in our Annual Report on Form 10-K for the year ended December 31,
2006 as filed with the United States Securities and Exchange Commission (SEC).
Note 1. - Business and Summary of Significant Accounting Policies
Business
AutoInfo, Inc (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 $84.1 million,
$17.7 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 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 nine months ended September 30, 2007 and 2006 are not necessarily indicative of results to be
expected for the entire year. Pursuant to SEC rules and regulations, certain information and footnote
disclosures normally included in financial statements prepared in accordance with GAAP have been omitted
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6
|-



|from these statements. The consolidated financial statements and notes thereto should be read in conjunction
with the financial statements and notes included in the Companys Annual Report on Form 10-K
for the year ended December 31, 2006.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiary
Sunteck and its wholly-owned subsidiary Sunteck Transport Carriers, Inc. 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 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 and Cash Equivalents
Cash and cash equivalents consist of cash in banks. 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 September 30, 2007 and December 31, 2006, consisting predominantly of furniture,
fixtures and equipment and computer system development costs, were carried at cost net of accumulated
depreciation. Depreciation of fixed assets was provided on the straight-line method over the estimated
useful lives of the related assets which range from three to five years.
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 2,361,000 and 4,735,000, and 3,254,000 and
4,020,000, respectively, for the three and nine month periods ended September 30, 2007 and 2006,
respectively.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7
|-



|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. 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 nine month periods ended September 30, 2007 and 2006, respectively, the provision
for income taxes consisted of the following:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

| |                                                                     | Three Months Ended September 30, |         
| | ------------------------------------------------------------------- | -------------------------------- | --------
|
|
|
| |                                                                     |                                  |         
| | Tax expense before application of
     operating loss carryforwards | $                                | 293,000 
| | Tax expense (benefit) of operating
     loss carryforwards          |                                  | (250,000
| | Change in valuation allowance                                       |                                  |         
|
|
| | Income tax expense (benefit)                                        | $                                | 43,000  
|

|8
|-



| |                                                                     | Nine Months Ended September 30, |         
| | ------------------------------------------------------------------- | ------------------------------- | --------
|
|
|
| |                                                                     |                                 |         
| | Tax expense before application of
     operating loss carryforwards | $                               | 809,000 
| | Tax expense (benefit) of operating
     loss carryforwards          |                                 | (691,000
| | Change in valuation allowance                                       |                                 |         
| |                                                                     |                                 |         
|
| | Income tax expense (benefit)                                        | $                               | 118,000 
| |                                                                     |                                 |         

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The
deferred tax asset, $3,256,000 and $3,947,000 at September 30, 2007 and December 31, 2006, respectively,
represents expected future tax savings resulting from the Companys utilization of its net operating
loss carryforwards. As of December 31, 2006, the Company has net operating loss carryforwards of
approximately $11.6 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. Based upon available objective evidence,
including the Companys post-merger history of profitability, management believes it is more
likely than not that forecasted taxable income will be sufficient to utilize all of the net operating
loss carryforwards before its expiration in 2014.
Note 3  Loan payable
At September 30, 2007, the Company had outstanding $4,330,000 under a $9,000,000 line of credit. The
line of credit facility, obtained from a bank in May 2003, is at an interest rate of LIBOR plus 1.25%
and is subject to the maintenance of certain financial covenants, is secured by accounts receivable
and other operating assets, and matures in June 2009. On August 3, 2007, this facility was increased
from $4,000,000 to $9,000,000.

|9
|-



|MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary statement identifying important factors that could cause our actual results to differ from
those projected in forward looking statements.
Readers of this report are advised that this document contains both statements of historical facts
and forward looking statements. Forward looking statements are subject to certain risks and uncertainties,
which could cause actual results to differ materially from those indicated by the forward looking
statements. We undertake no obligation to revise or update publicly any forward looking statements
for any reason. Examples of forward looking statements include, but are not limited to (i) projections
of revenues, income or loss, earnings per share, capital expenditures, dividends, capital structure
and other financial items, (ii) statements of our plans and objectives with respect to business transactions
and enhancement of shareholder value, (iii) statements of future economic performance, and (iv) statements
of assumptions underlying other statements and statements about our business prospects.
The following Managements Discussion and Analysis of Financial Condition and Results of Operations
should be read in conjunction with our financial statements and the notes thereto appearing elsewhere
in this report.
Overview
Through our wholly-owned subsidiary, Sunteck Transport Co., Inc. (Sunteck), we are a non-asset
based transportation services company, providing transportation capacity and related transportation
services to shippers throughout the United States, and to a lesser extent, Canada. As a non-asset
based provider of brokerage and contract carrier transportation services, we do not own any equipment
and our services are provided through our strategic alliances with less than truckload, truckload,
air, rail, ocean common carriers and independent owner-operators to service our customers needs.
Our services include ground transportation coast to coast, local pick up and delivery, air freight
and ocean freight. We have strategic alliances with less than truckload, truckload, air, rail and
ocean common carriers to service our customers needs. Our business services emphasize safety,
information coordination and customer service and are delivered through a network of independent
commissioned sales agents and third party capacity providers coordinated by us. The independent commissioned
sales agents typically enter into exclusive contractual arrangements with Sunteck and are responsible
for locating freight and coordinating the transportation of the freight with customers and capacity
providers. The third party capacity providers consist of independent contractors who provide truck
capacity to us, including owner-operators who operate under our contract carrier license, air cargo
carriers and railroads. Through this network of agents and capacity providers, Sunteck operates a
non-asset based transportation services business with revenues, net revenues and net income of approximately
$84.1 million, $17.7 million and $3.6 million, respectively, during our most recently completed fiscal
year and approximately $77.4 million, $15.5 million and $1.2 million respectively, during the nine months ended September 30, 2007.
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
During the three month period ended September 30, 2007, the increase in gross revenues and net revenues
is mainly attributable to the increase in the number of transactions we have processed. The number
of transactions processed increased to 21,700 during the three months ended September 30, 2007 from
15,750 during the same period in the prior year, an increase of 38%. This is the direct result of
the expansion of our agent network. Gross revenues increased by 30% over the same prior year period
from $22,441,000 to $29,079,000. The decrease in revenue dollars per load (6%) is the result of revenue
mix and the competitive environment during the period. Net revenues increased by 21%
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10
|--



|over the same prior year period from $4,564,000 to $5,531,000. This is the result of revenue mix and
increased direct freight costs relating to competition and the availability of equipment.
During the nine month period ended September 30, 2007, the increase in gross revenues and net revenues
is readily measured by the number of transactions we have processed. The number of transactions processed
increased to 58,700 during the nine months ended September 30, 2007 from 44,350 during the same period
in the prior year, an increase of 32%. This is the direct result of the expansion of our agent network.
Gross revenues increased by 26% over the same prior year period from $61,395,000 to $77,357,000.
The decrease in revenue dollars per load (5%) is the result of revenue mix and the competitive environment
during the period. Net revenues increased by 19% over the same prior year period from $13,011,000
to $15,532,000. This is the result of revenue mix and increased direct freight costs relating to
competition and the availability of equipment. This trend is subject to many factors including seasonal
trends, market conditions, competition and agent mix and is, therefore, not necessarily indicative
of future results.
For the Three and Nine Month Periods Ended September 30, 2007 and 2006
During the three and nine month periods ended September 30, 2007, 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
      September 30, |       | Nine Months Ended
      September 30, | 
| | ---------------------- | -------------------------------------- | ----- | ------------------------------------- | 
|
| |                        |                                        |       |                                       | 
|
| | Net revenues           |                                        | 100.0 | %                                     | 
| |                        |                                        |       |                                       | 
|
| | Commissions            |                                        | 63.5  | %                                     | 
| | Operating expenses     |                                        | 20.8  | %                                     | 
| | Interest expense       |                                        | 1.3   | %                                     | 
| | Income taxes (benefit) |                                        | 5.3   | %                                     | 
| |                        |                                        |       |                                       | 
|
| | Net income             |                                        | 9.1   | %                                     | 
| |                        |                                        |       |                                       | 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Revenues
Gross revenues, consisting of freight fees and other related services revenues, totaled $29,079,000
for the three months ended September 30, 2007, as compared with $22,441,000 in the same period of
the prior year, an increase of 30%. Net revenues were $5,531,000 for the three months ended September
30, 2007, as compared with $4,564,000 in the same period of the prior year, an increase of 21%. This
increase is the direct result of the continued expansion of our agent network and customer base which
resulted in a 38% increase in the number of transactions processed. The increase in net revenues
of 21% as compared to the increase in gross revenues of 30% is the result of revenue mix and increased
direct freight costs relating to competition and the availability of equipment.

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|--



|Gross revenues, consisting of freight fees and other related services revenue, totaled $77,357,000
for the nine months ended September 30, 2007, as compared with $61,395,000 in the same period of
the prior year, an increase of 26%. Net revenues were $15,532,000 for the nine months ended September
30, 2007, as compared with $13,011,000 in the same period of the prior year, an increase of 19%.
This increase is the direct result of the continued expansion of our agent network and customer base
which resulted in a 32% increase in the number of transactions processed. The increase in net revenues
of 19% as compared to the increase in gross revenues of 26% is the result of revenue mix and increased
direct freight costs relating to competition and the availability of equipment.
Costs and expenses
Commissions
For the three months ended September 30, 2007, commissions totaled $3,511,000 as compared with $2,818,000
in the same period of the prior year. As a percentage of net revenues, commissions were 64% as compared
with 62% in the same period of the prior year.
For the nine months ended September 30, 2007, commissions totaled $9,896,000 as compared with $8,025,000
in the same period of the prior year. As a percentage of net revenues, commissions were 64% as compared
with 62% in the same period of the prior year.
These increases are the result of agent and revenue mix as well as agent rate increases based upon
achieving revenue and profitability benchmarks.
Operating expenses
For the three months ended September 30, 2007, operating expenses totaled $1,153,000 as compared with
$960,000 in the same period of the prior year. As a percentage of net revenues, operating expenses
were 21% as compared with 21% in the prior year period.
For the nine months ended September 30, 2007, operating expenses totaled $3,443,000 as compared with
$2,759,000 in the same period of the prior year. As a percentage of net revenues, operating expenses
were 22% as compared with 21% in the same period of the prior year.
These increases are the direct result of the increase in selling, general and administrative expenses
in connection with our business expansion. We presently have adequate facilities and management to
handle the present and anticipated transaction volume in 2008 without a significant increase in overhead.
Interest Expense
For the three months ended September 30, 2007, interest expense totaled $71,000 as compared with $39,000
in the same period of the prior year.
For the nine months ended September 30, 2007, interest expense totaled $172,000 as compared with $63,000
in the same period of the prior year.
These increases are primarily the result of increased borrowings under our $9,000,000 million line
of credit.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Income tax
Income tax expense for the three months ended September 30, 2007 of $293,000 consisted of the utilization
of the deferred tax benefit of $250,000 and state income taxes of $43,000 compared to an income tax
benefit of $239,000 for the quarter ended September 30, 2006 which consisted of a benefit of $538,000
resulting from the anticipated future utilization of available federal tax loss carryforwards, net
of the utilization of the deferred tax benefit of $255,000 and state income taxes of $44,000.
Income tax expense for the nine months ended September 30, 2007 of $809,000 consisted of the utilization
of the deferred tax benefit of $691,000 and state income taxes of $118,000 compared to an income
tax benefit of $1,021,000 for the quarter ended September 30, 2006 which consisted of a benefit of
$1,876,000 resulting from the anticipated future utilization of available federal tax loss carryforwards,
net of the utilization of the deferred tax benefit of $730,000 and state income taxes of $125,000.
The increase in income taxes is because we had fully recognized the anticipated future utilization
of available federal tax loss carryforwards as of December 31, 2006, as management believed it was
more likely than not that they will be realized by the end of the carryforward periods.
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 nine months ended September 30, 2007, our gross revenues increased to $77,357,000 from $61,395,000
in the same period of the prior year. As of September 30, 2007, we had an accumulated deficit of
$6,244,000. Factors that could adversely affect our operating results include:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

| |  | the success of Sunteck in expanding its business operations; and
| | - | ----------------------------------------------------------------
| |   |                                                                 
| |  | changes in general economic conditions.                         

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Depending on our ability to generate revenues, we may require additional funds to expand Suntecks
business operations and for working capital and general corporate purposes. Any additional equity
financing may be dilutive to stockholders and debt financings may involve restrictive covenants that
further limit our ability to make decisions that we believe will be in our best interests. In the
event we cannot obtain additional financing on terms acceptable to us when required, our ability
to expand Suntecks operations may be materially adversely affected.
Liquidity and capital resources
During the past two years, our sources for cash have been the cash flow generated from operations and
available borrowings under our line of credit.

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|At September 30, 2007, we had outstanding $4,330,000 under our $9,000,000 line of credit. The line
of credit facility, obtained from a bank in May 2003, is at an interest rate of LIBOR plus 1.25%
and is subject to the maintenance of certain financial covenants, is secured by accounts receivable
and other operating assets, and matures in June 2009. On August 3, 2007, this facility was increased
from $4,000,000 to $9,000,000. 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 September 30, 2007, we had liquid assets of approximately $132,000. Available cash is used to reduce
borrowings under our line of credit.
The following table presents our debt instruments and their weighted average interest rates as of September
30, 2007 and 2006, respectively:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| |                | Balance |           | Weighted
      Average
      Rate |  | Balance |  | Weighted
      Average
      Rate |          
| | -------------- | ------- | --------- | --------------------------------- |  | ------- |  | --------------------------------- | ---------
|
|
| |                |         |          
| | Line of Credit | $       | 4,330,000 |                                   |  | 6.37%   |  | $                                 | 2,114,000

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Inflation and changing prices had no material impact on our revenues or the results of operations for
the period ended September 30, 2007. Higher fuel prices have had no material impact on our revenues
or the results of operations for the period ended September 30, 2007 because, as a broker, we are
able to pass through to our customers any increased costs incurred. The higher cost of fuel passed
through as a fuel surcharge has become an industry standard and an acceptable business practice.
Critical accounting policies
Preparation of our financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Note 1 to the notes to the financial statements included elsewhere in this
report includes a summary of the significant accounting policies and methods used in the preparation
of our financial statements. The most significant areas involving management estimates and assumptions
are described below. Actual results could differ materially from managements estimates under
different assumptions or conditions.
Revenue Recognition
As a third party transportation logistics provider, we act as the shippers agent and arrange
for a carrier to handle the freight. Gross revenues consist of the total dollar value of services
purchased by shippers. Revenue is recognized upon the delivery of freight, at which time the related
transportation cost, including commission, is also recognized. At that time, our obligations are
completed and collection of receivables is reasonably assured.
Emerging Issues Task Force No. 99-19, Reporting Revenues Gross as a Principal Versus Net as an
Agent (EITF 99-19), establishes criteria for recognizing revenues on a gross or net basis.
We are the primary obligor in our transactions, have all credit risk, maintain substantially all
risk and rewards, have discretion in selecting the supplier, and have latitude in pricing decisions.
Accordingly, we record all transactions at the gross amount, consistent with the provisions of EITF
99-19.

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|Income Taxes
The deferred tax asset represents expected future tax savings resulting from our net operating loss
carryforwards. As of December 31, 2006, we had net operating loss carryforwards of approximately
$11.6 million for federal income tax purposes which expire through 2014. Utilization of this benefit
is primarily subject to the extent of our future earnings, and may be limited by, among other things,
stockholder changes, including the possible issuance of additional shares in one or more financing
or acquisition transactions. As of December 2006, we had fully recognized the anticipated future
utilization of available federal tax loss carryforwards as management believes it is more likely
than not that they will be realized by the end of the carryforward periods.
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 our 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 our 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: (i) recorded,
processed, summarized and reported, within the time periods specified in the United States Securities
and Exchange Commissions rules and forms; and (ii) accumulated and communicated to management,
including our chief executive and chief financial officers, as appropriate to allow timely decisions
regarding required disclosure.
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.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Part II - OTHER INFORMATION
|---------------------------
|                           

|****Item
      6. | Exhibits                                                                                                                                           
|----------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------
|                  |                                                                                                                                                    
|                  |                                                                                                                                                    
|10A               | Fifth Amendment to Revolving Credit and Security Agreement between Wachovia Bank and AutoInfo, Inc.,
  et al *                                     
|                  |                                                                                                                                                    
|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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|SIGNATURES                                                                                                                                                                              
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                        
|Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|                                                                                                                                                                                        

|                         | AUTOINFO, INC.
|------------------------ | --------------
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|                         |               
|Date:   November 8, 2007 |               

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