UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
 FORM 10-Q x
QUARTERLY REPORT PURSUANT
 TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
           For the quarterly
 period ended: MARCH 31, 2009o
TRANSITION REPORT PURSUANT
 TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934
           For the
 transition period from ______________ to ____________________  Commission
 File Number: 001-11497AUTOINFO,
 INC.(Exact
 name of Registrant as specified in its charter)  DELAWARE
13-2867481(State or other
 jurisdiction of incorporation
 or organization)
(I.R.S.
 Employer Identification number)6413
 Congress Ave., Suite 260, Boca Raton, FL 33487(Address
 of principal executive office)(561)
 988-9456(Registrants
 telephone number, including area code) Indicate
by check mark whether the Registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES x          NO o Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). YES o          NO o Indicate
by check mark whether the Registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
definitions of large accelerated filer, accelerated filer and smaller
reporting company in Rule 12b-2 of the Exchange Act. (Check one): LARGE ACCELERATED FILER o
ACCELERATED FILER oNON-ACCELERATED FILER o
SMALLER REPORTING COMPANY x Indicate
by check mark whether the Registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). YES o          NO x The
number of shares outstanding of the Registrants common stock as of May 11,
2009: 32,946,060 shares of common stock    AUTOINFO, INC. AND SUBSIDIARIES

INDEX

PagePart I.
 Financial Information:Item 1.

Consolidated
Financial Statements:Balance Sheets
March 31, 2009 (unaudited) and December
 31, 2008 (audited)

3Statements of
Income (unaudited) Three months ended
 March 31, 2009 and 2008

4Statements of Cash
Flows (unaudited) Three months ended
 March 31, 2009 and 2008

5Notes to Unaudited
Consolidated Financial Statements

6Item 2.

Managements
Discussion and Analysis of Financial
 Condition and Results of Operations

10Item 3.

Quantitative and
Qualitative Disclosures About Market
 Risk

15Item 4T.

Controls and
Procedures

15Part II.
 Other InformationItem 6.

Exhibits

15Signatures



162

PART I - FINANCIAL INFORMATION

Item 1.
CONSOLIDATED
 FINANCIAL STATEMENTSAUTOINFO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

March
 31,
 2009

December
 31,
 2008Unaudited

AuditedASSETSCurrent assets:Cash and cash
equivalents

$
3,651,000

$
390,000Accounts
receivable, net of allowance for doubtful accounts of
 $415,000 and $370,000 as of March 31, 2009 and December 31, 2008,
 respectively


25,362,000


29,863,000Deferred income
taxes (Note 2)


1,000,000


1,100,000Prepaid
expenses


496,000


560,000Current portion
of advances and other assets


1,968,000


1,260,000Total current
assets


32,477,000


33,173,000Fixed assets, net of accumulated
depreciation


597,000


590,000Deferred income taxes (Note
2)


649,000


680,000Advances and other assets, net
of current portion


8,861,000


8,333,000$
42,584,000

$
42,776,000LIABILITIES AND
STOCKHOLDERS EQUITYCurrent liabilitiesAccounts
payable and accrued liabilities

$
11,349,000

$
12,303,000Loan payable


14,670,000


14,164,000Stockholders
EquityCommon stock -
authorized 100,000,000 shares $.001 par value; issued
 and outstanding -32,946,000 shares as of March 31, 2009 and December 31, 2008


33,000


33,000Additional
paid-in capital


19,941,000


19,904,000Deficit


(3,409,000
)

(3,628,000
)Total
stockholders equity


16,565,000


16,309,000$
42,584,000

$
42,776,000The accompanying notes are an integral part of these consolidated
financial statements.

3

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

Three
 Months Ended 
 March 31,2009

2008Gross revenues

$
35,056,000

$
36,562,000Cost of transportation


27,551,000


29,815,000Net revenues


7,505,000


6,747,000Commissions


5,092,000


4,372,000Operating expenses


1,966,000


1,437,0007,058,000


5,809,000Income from operations


447,000


938,000Interest expense


74,000


103,000Income before income taxes


373,000


835,000Income taxes (Note 2)


154,000


345,000Net income

$
219,000

$
490,000Net income per shareBasic

$
.01

$
.02Diluted

$
.01

$
.01Weighted average number of
 common sharesBasic


32,947,000


32,586,000Diluted


33,705,000


34,946,000The accompanying notes are an integral part of these consolidated
financial statements.

4

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

Three
 Months Ended
 March 31,2009

2008Cash flows from operating
activities:Net income

$
219,000

$
490,000Adjustments to reconcile net
income to net cash provided by (used in)
 operating activities:Change in
allowance for doubtful accounts


45,000


78,000Depreciation
and amortization


54,000


39,000Stock-based
compensation expense


37,000


81,000Deferred income
taxes


131,000


294,000Changes in operating assets and
liabilities:Accounts
receivable


4,456,000


(1,068,000
)Advances and
other assets


(1,173,000
)

(561,000
)Accounts
payable and accrued liabilities


(953,000
)

636,000Net cash provided by (used in)
operating activities


2,816,000


(11,000
)Cash flows from investing
activities:Capital
expenditures


(61,000
)

(103,000
)Net cash used in investing
activities


(61,000
)

(103,000
)Cash flows from financing
activities:Increase in
loan payable, net


506,000


835,000Net cash provided by financing
activities


506,000


835,000Net change in cash and cash
equivalents


3,261,000


721,000Cash and cash equivalents,
beginning of period


390,000


270,000Cash and cash equivalents, end
of period

$
3,651,000

$
991,000The accompanying notes are an integral part of these consolidated
financial statements.

5

AUTOINFO, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Forward Looking Statements

Certain statements made in this Quarterly Report on Form 10-Q
are
forward-looking statements regarding the plans and objectives of management for
future operations. Such statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The forward-looking statements included herein are
based on current expectations that involve numerous risks and uncertainties.
Our plans and objectives are based, in part, on assumptions involving judgments
with respect to, among other things, future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that our assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove inaccurate and,
therefore, there can be no assurance that the forward-looking statements
included in this report will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein
particularly in view of the current state of our operations, the inclusion of
such information should not be regarded as a statement by us or any other person
that our objectives and plans will be achieved. Factors that could cause actual
results to differ materially from those expressed or implied by forward-looking
statements include, but are not limited to, the factors set forth under the
headings Business,andRisk Factors in our Annual Report on Form 10-K for the year ended
December 31, 2008 as filed with the United States Securities and Exchange
Commission (SEC).

Note 1. - Business and Summary of Significant
Accounting Policies

Business

AutoInfo,
Inc., through its wholly-owned subsidiaries, Sunteck Transport Co., Inc. and Eleets Logistics, Inc.
(collectively, the Company), 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 $180.2 million, $31.7 million and $2.2 million,
respectively.

Economic
Downturn

During
the latter part of the fourth quarter of 2008, the general economic conditions
in the U.S. and globally experienced a significant downturn, impacting the
market segments in which the Company operates. This downturn, referred to by
many economic experts as a world-wide recession, has continued into 2009. As a
direct result, transportation revenues were generally down in the range of 20 
30% in the first quarter of 2009. The Companys revenues were $35,056,000 for
the quarter ended March 31, 2009 as compared with $45,671,000 for the fourth
quarter of 2008 and $36,562,000 in the same prior year period, a decrease of
23% and 4%, respectively.

6

Summary of Significant Accounting Policies

Basis of Presentation

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

The
consolidated financial statements, which are unaudited, have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
(SEC). In managements opinion, these financial statements include all adjustments
(consisting only of normal recurring adjustments) necessary for a fair
presentation of the results of operations for the interim periods presented.
The results of operations for the three months ended March 31, 2009 and 2008
are not necessarily indicative of results to be expected for the entire year.
Pursuant to SEC rules and regulations, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with GAAP have been omitted from these statements. The consolidated financial
statements and notes thereto should be read in conjunction with the financial
statements and notes included in our Annual Report on Form 10-K for the year
ended December 31, 2008.

Principles of Consolidation

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

Use of Estimates

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

Revenue
Recognition

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

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

Cash
and cash equivalents

Cash
and cash equivalents consist of cash in banks.

7

Provision
For Doubtful Accounts

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

Fixed Assets

Fixed
assets as of March 31, 2009 and December 31, 2008, consisting primarily of
furniture, fixtures and equipment and computer system development costs, were
carried at cost net of accumulated depreciation. Depreciation of fixed assets
was provided on the straight-line method over the estimated useful lives of the
related assets which range from three to five years.

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 758,000
and 2,360,000, respectively, for the three month periods ended March 31, 2009
and 2008.

Income Taxes

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

Note 2- Income Taxes

For the
three month periods ended March 31, 2009 and 2008, respectively, the provision
for income taxes consisted of the following:

Three Months Ended March 31,2009

2008Current

Deferred

Current

DeferredTax expense
 before application of operating loss
 carryforwards

$
154,000

$


$
345,000

$
Tax expense
 (benefit) of operating loss
 carryforwards


(131,000
)

131,000


(294,000
)

294,000Income tax
 expense

$
23,000

$
131,000

$
51,000

$
294,0008

The
deferred tax asset of $1,649,000 and $1,780,000 at March 31, 2009 and December
31, 2008, respectively, represents expected future tax savings resulting from
the Companys utilization of its net operating loss carryforwards. As of
December 31, 2008, the Company has net operating loss carryforwards of
approximately $5.2 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, stockholder
changes, including the possible issuance by the Company of additional shares in
one or more financing or acquisition transactions.

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

9

Item 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
 RESULTS OF OPERATIONSCautionary 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 subsidiaries,
Sunteck Transport Co., Inc. and Eleets Logistics, Inc., we are a
non-asset based transportation services company, providing transportation
capacity and related transportation services to shippers throughout the United
States, and to a lesser extent, Canada. As
a non-asset based provider of brokerage and contract carrier transportation
services, we do not own any equipment and our services are provided through our
strategic alliances with less than truckload, truckload, air, rail, ocean
common carriers and independent owner-operators to service our customers
needs. Our services include ground transportation coast to coast, local
pick up and delivery, air freight and ocean freight. We have strategic
alliances with less than truckload, truckload, air, rail and ocean common
carriers to service our customers needs. Our business services emphasize
safety, information coordination and customer service and are delivered through
a network of independent commissioned sales agents and third party capacity
providers coordinated by us. The independent commissioned sales agents
typically enter into exclusive contractual arrangements with Sunteck and are
responsible for locating freight and coordinating the transportation of the
freight with customers and capacity providers. The third party capacity
providers consist of independent contractors who provide truck capacity to us,
including owner-operators who operate under our contract carrier license, air
cargo carriers and railroads. Through this network of agents and capacity
providers, Sunteck operates a non-asset based transportation services business
with revenue, net revenue and net
income of approximately $180.2 million, $31.7 million and $2.2 million,
respectively, during our most recently completed fiscal year and approximately $35.1 million, $7.5 million and
$219,000, respectively, during the three months ended March 31, 2009.

During
previous interim as well as annual reporting periods, the increases in our
gross and net revenues was measured to a significant degree by the increase in
the number of transactions processed. However, during the quarter ended March
31, 2009, gross revenues decreased by 4% while net revenues increased by 11%
over the same prior year period, respectively. At the same time, the number of
transactions increased by 14%, from 28,000 to 32,000 as compared to the same
prior year period. This is the result of several factors including, the
decrease in average revenue dollars per transaction due to the reduction of
fuel prices resulting in lower fuel surcharges, the increase in less than
truckload versus truckload freight, a trend by customers toward regional and
local distribution points reducing mileage and the reduction in per mile costs
based upon the availability of carrier capacity. These factors resulted in a
lower cost of transportation and had a corresponding positive impact on our net
revenues and per load margins.

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

10

Economic
Downturn

During
the latter part of the fourth quarter of 2008, the general economic conditions
in the U.S. and globally experienced a significant downturn, impacting the
market segments in which we operate. This downturn, referred to by many
economic experts as a world-wide recession, has continued into 2009. As a
direct result, transportation revenues were generally down in the range of 20 
30% in the first quarter of 2009. Our revenues were $35,056,000 for the quarter
ended March 31, 2009 as compared with $45,671,000 for the fourth quarter of
2008 and $36,562,000 in the same prior year period, a decrease of approximately
23% and 4%, respectively.

Results of operations

For the three months ended March 31, 2009 and
2008

During
the quarter ended March 31, 2009, 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
 March 31,2009

2008Net revenues


100.0
%

100.0
%Commissions


67.8
%

64.8
%Operating
expenses


26.2
%

21.3
%Interest
expense


1.0
%

1.5
%Income
taxes


2.1
%

5.1
%Net income


2.9
%

7.3
%Revenues

Gross
revenues, consisting of freight fees and other related services revenue,
totaled $35,056,000 for the quarter ended March 31, 2009, as compared with
$36,562,000 in the prior year period, a decrease of approximately 4%. Net
revenues were $7,505,000 for the quarter ended March 31, 2009, as compared with
$6,747,000 in the same prior year period, an increase of approximately 11%. At
the same time, the number of transactions increased by 14%, from 28,000 to
32,000 as compared to the same prior year period. This is the result of several
factors including, the decrease in average revenue dollars per transaction due
to the reduction of fuel prices resulting in lower fuel surcharges, the
increase in less than truckload versus truckload freight, a trend by customers
toward regional and local distribution points reducing mileage and the
reduction in per mile costs based upon the availability of carrier capacity.
These factors resulted in a lower cost of transportation and had a
corresponding positive impact on our net revenues and per load margins.

11

Costs and expenses

Commissions
totaled $5,092,000 for the quarter ended March 31, 2009, as compared with
$4,372,000 in the same prior year period, an increase of 17%. This increase is
the result of the increase in net revenues as well as the increased commission
rates with a significant agent which was in a start up period in 2008. As a
percentage of net revenues, commissions were 68% and 65% for the quarters ended
March 31, 2009 and 2008, respectively. This increase is the result of agent and
revenue mix as well as the increased commission rates with a significant agent
as compared to the same prior year period.

Operating
expenses totaled $1,966,000 for the quarter ended March 31, 2009, as compared
with $1,437,000 in the prior year period, an increase of 37%. As a percentage
of net revenues, operating expenses were 26.2% for the quarter ended March 31,
2009, as compared with 21.3% in the prior year period. The increase is the
direct result of the increase in selling, general and administrative expenses
in connection with our 2008 business expansion. We have increased
administrative staff commensurate with the increase in transaction volume. We
presently have adequate facilities and management to handle the present and
anticipated transaction volume in 2009 without a significant increase in
overhead.

Interest
expense was $74,000 for the quarter ended March 31, 2009, as compared with
$103,000 in the same prior year period. This decrease is primarily the result
of lower interest rates under our available line of credit.

Income tax

Income
tax
expense for the quarter ended March 31, 2009 of $154,000 consisted of the
utilization of the deferred tax benefit of $131,000 and state income taxes of
$23,000 compared to $345,000 for the quarter ended March 31, 2008 which
consisted of the utilization of the deferred tax benefit of $294,000 and state
income taxes of $51,000. The decrease in income taxes is directly related to
lower pre-tax income.

Trends and uncertainties

The
transportation industry is highly competitive and highly fragmented. Our
primary competitors are other non-asset based as well as asset based third
party logistics companies, freight brokers, carriers offering logistics
services and freight forwarders. We also compete with customers and shippers
internal traffic and transportation departments as well as carriers internal
sales and marketing departments directly seeking shippers freight. We
anticipate that competition for our services will continue to increase. Many of
our competitors have substantially greater capital resources, sales and
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
quarter ended March 31, 2009, our gross revenues decreased to $35.1 million
from $36.6 million in the same prior year period. As of March 31, 2009, we had
an accumulated deficit of $3.4 million. Factors that could adversely affect our
operating results include:


the success
 of Sunteck in expanding its business operations; and
general
 economic conditions.During
the latter part of the fourth quarter of 2008, the general economic conditions
in the U.S. and globally experienced a significant downturn impacting the
business environment in general and market segments in which we participate.
This condition, referred to by many economic experts as a world-wide recession,
has continued into 2009.

12

While
we do see some signs of improvement in the second quarter of 2009, there are no
assurances that our future financial results will not continue to be impacted
by the current economic climate.

During
the second quarter of 2009, we instituted a cost reduction program that
includes salary reductions of 10% to all supervisory and management personnel
as well as reductions in other operating expenses.

Liquidity and capital resources

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

At
March
31, 2009, we had an outstanding balance of $14,670,000 under our $30,000,000
line of credit. In March 2009, we entered into a new credit facility with
Regions Bank which increased our line of credit from $20 million to $30 million
and extended the maturity date from June 2009 to March 2012. The line of credit
facility is at an interest rate of LIBOR plus 1.5% with a floor of 3.0%, is
subject to the maintenance of certain financial covenants, and is secured by
accounts receivable and other operating assets. We believe that we have
sufficient working capital to meet our short-term operating needs and that we
will be able to increase, extend or replace the line of credit on terms
acceptable to us.

At
March
31, 2009, we had liquid assets of approximately $3,651,000. Available cash is
used to reduce borrowings on our line of credit.

The
total
amount of debt outstanding as of March 31, 2009 and 2008 was $14,670,000 and
$9,625,000, respectively. The following table presents our debt instruments and
their weighted average interest rates as of March 31, 2009 and 2008,
respectively:

Balance

Weighted
 Average Rate

Balance

Weighted
 Average
 Rate2009

2008Line of Credit


14,670,000


3.00
%

9,625,000


4.19
%Inflation
and changing prices had no material impact on our revenues or the results of
operations for the period ended March 31, 2009.

Critical accounting policies

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

Revenue Recognition

As
a third party transportation logistics provider, we act as the shippers agent
and arrange for a carrier to handle the freight. Gross revenues consist of the
total dollar value of services purchased by shippers. Revenue is recognized

13

upon
the delivery of freight, at which time the related transportation cost,
including commission, is also recognized. At that time, our obligations are
completed and collection of receivables is reasonably assured.

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

Income Taxes

The
deferred tax asset represents expected future tax savings resulting from our
net operating loss carryforwards. As of December 31, 2008, we had net operating
loss carryforwards of approximately $5.2 million for federal income tax
purposes which expire through 2014. Utilization of this benefit is primarily
subject to the extent of our future earnings, and may be limited by, among
other things, stockholder changes, including the possible issuance of
additional shares in one or more financing or acquisition transactions. As of
December 2006, we eliminated any valuation allowance for the future tax savings
as management believes it is more likely than not that they will be realized by
the end of the carryforward period.

Provision For Doubtful
Accounts

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

Off-balance sheet arrangements

We
do not have any off-balance sheet arrangements.

14

Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISKAs
a smaller reporting company we are not required to provide the information
required by this Item.

Item 4T.
CONTROLS AND PROCEDURES(a)
Evaluation of Disclosure Controls and Procedures

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

(b)
Changes in Internal Control over Financial Reporting

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

Part II - OTHER INFORMATION

Item 6.
EXHIBITSExhibit No.


Description31A
Certification of Chief Executive Officer Pursuant to
Section 302 of
 the Sarbanes-Oxley Act of 2002.*31B
Certification of Chief Financial Officer Pursuant to
Section 302 of
 the Sarbanes-Oxley Act of 2002.*32A
Certification of Chief Executive Officer Pursuant to
18 U.S.C.
 Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
 2002.*32B
Certification of Chief Financial Officer Pursuant to
18 U.S.C.
 Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
 2002.** Filed as
 an exhibit hereto.15

SIGNATURES

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

AUTOINFO,
 INC./s/ Harry
 WachtelHarry WachtelPresident
 and Chief Executive Officer(Principal Executive
 Officer)/s/ William
 WunderlichWilliam
 WunderlichChief
 Financial Officer(Principal
 Financial Officer)Date: May 13,
2009

16