U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

(Mark One)

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended:	June 30, 2003

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 88-0402908

VECTORIA, INC.

(Exact name of small business issuer as specified in its charter)



|NEVADA                                                         | 88-0402908                       
|-------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of
incorporation or organization) | (IRS Employer
Identification No.)

2160 Rue de la Montagne

7th Floor, Montreal, Quebec Canada H3G 2T3

(Address of principal executive offices)

(514) 845-0084

(Issuer's telephone number)



Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the last practicable date:

38,312,721 shares of common stock, $0.001 par value, as of June 30, 2003

Transitional Small Business Disclosure Format (check one):	Yes  No X

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying unaudited condensed financial statements set forth at the end of the quarterly report, starting on page F-1, have been prepared by management and have not been reviewed by the auditors of the Company. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the six month periods ended June 30, 2003 and 2002 are not necessarily indicative of the results that may be expected for the year ending December 31, 2003. For further information refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2002.



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Certain information in this report, including the following discussion, may include forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Vectoria Inc. (the "Company") intends the disclosure in these sections and throughout this report on Form 10-QSB to be covered by the safe harbor provisions for forward-looking statements. All statements regarding the Company's expected financial position and operating results, its business strategy, its financing plans, and the outcome of any contingencies are forward-looking statements. These statements can sometimes by identified by the Company's use of words such as "may", "believe", "plan", "will", "anticipate", "estimate", "expect", "intend", and other phrases of similar meaning. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and was derived using numerous assumptions.

All dollar amounts used herein are in US dollars unless otherwise noted.

Organization and Operations

The Company was originally incorporated in the State of Nevada on August 24, 1998 as U.S. Vanadium, Inc., operating from that date as a natural resource company engaged in the acquisition, exploration, and development of certain resource properties in the State of Nevada. The Company changed its name to Vanadium International, Inc. on February 24, 1999 and explored possible high-tech industry ventures with several groups while continuing to explore the feasibility of exploiting vanadium deposits on its properties. On November 13, 2001, the Company acquired all of the issued and outstanding shares in the capital of Vectoria, Inc., a provider of Internet Protocol ("IP") telephony services incorporated in the State of Delaware on October 1, 2001.

The Company subsequently changed its name to Vectoria Inc. as of November 14, 2001 and discontinued its former natural resource business in order to pursue and develop the IP telephony business of its newly acquired wholly owned subsidiary. Retail operations of our subsidiary were also discontinued and sold to a third party as at December 31, 2001.

Vectoria operated its businesses through a series of subsidiaries. A Delaware corporation with the same name that operated as a holding company and owns Vectoria Corp., which is also a holding company, which owns 2 subsidiaries: Vectoria Mobilite, which is inactive, and Vectoria Telecommunication. Vectoria Telecommunication has one wholly-owned subsidiary and three divisions. The wholly-owned subsidiary is Vectoria.biz Inc. and the three divisions are: Vectoria Telephonie IP, SmartNet and Communications Prolan.

During the year ended December 31, 2002, management of the Company abandoned this business to look for new ventures. At December 31, 2002, the internet access services business had been sold and all of the subsidiaries of the Company were either discontinued or are presently inactive.

Plan of Operation

The Company presently has no business and is seeking a suitable acquisition. The Company may seek a business opportunity with entities which have recently commenced operations, or which wish to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. The Company may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.

The Company anticipates that the selection of a business opportunity in which to participate will be complex and extremely risky. Due to general economic conditions, rapid technological advances being made in some industries, and shortages of available capital, management believes that there are numerous firms seeking the perceived benefits of a publicly registered corporation. Such perceived benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes), for all shareholders and other factors. Potentially, available business opportunities may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.

The Company has, and will continue to have, no capital with which to provide the owners of business opportunities with any significant cash or other assets. However, management believes the Company will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in a publicly registered company without incurring the cost and time required to conduct an initial public offering. The owners of the business opportunities will, however, incur significant legal and accounting costs in connection with acquisition of a business opportunity, including the costs of preparing Form 8-K's, 10-K's or 10-KSB's, agreements and related reports and documents. The Exchange Act specifically requires that any merger or acquisition candidate comply with all applicable reporting requirements, which include providing audited financial statements to be included within the numerous filings relevant to complying with the Exchange Act. Nevertheless, the officers and directors of the Company have not conducted market research and are not aware of statistical data which would support the perceived benefits of a merger or acquisition transaction for the owners of a business opportunity.

The analysis of new business opportunities will be undertaken by, or under the supervision of, the officers and directors of the Company. The Directors of the Company will be responsible for the search, review and negotiation with potential acquisition or merger candidates. In analyzing prospective business opportunities, management will consider such matters as the available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable but which then may be anticipated to impact the proposed activities of the Company; the potential for growth or expansion; the potential for profit; the perceived public recognition of acceptance of products, services, or trades; name identification; and other relevant factors. Officers and directors of the Company do not expect to meet personally with management and key personnel of the business opportunity as part of their investigation due to lack of capital. To the extent possible, the Company intends to utilize written reports and investigation to evaluate the above factors. The Company will not acquire or merge with any company for which audited financial statements cannot be obtained within a reasonable period of time after closing of the proposed transaction.

The officers of the Company will rely primarily upon their own efforts in accomplishing the business purposes of the Company. The Company may from time to time utilize outside consultants or advisors to effectuate its business purposes described herein. No policies have been adopted regarding use of such consultants or advisors, the criteria to be used in selecting such consultants or advisors, the services to be provided, the term of service, or regarding the total amount of fees that may be paid. However, because of the limited resources of the Company, it is likely that any such fee the Company agrees to pay would be paid in stock and not in cash.



The Company will not restrict its search for any specific kind of firms, but may acquire a venture which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its corporate life. It is impossible to predict at this time the status of any business in which the Company may become engaged, in that such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer.



Acquisition of Opportunities

In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity. It may also acquire stock or assets of an existing business. On the consummation of a transaction, it is probable that the present management and shareholders of the Company will no longer be in control of the Company. In addition, the Company's directors may, as part of the terms of the acquisition transaction, resign and be replaced by new directors without a vote of the Company's shareholders or may sell their stock in the Company. Any and all such sales will only be made in compliance with the securities laws of the United States and any applicable state.

It is anticipated that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, of which there can be no assurance, it will be undertaken by the surviving entity after the Company has successfully consummated a merger or acquisition and the Company is no longer considered a "shell" company. Until such time as this occurs, the Company does not intend to register any additional securities. The issuance of substantial additional securities and their potential sale into any trading market which may develop in the Company's securities may have a depressive effect on the value of the Company's securities in the future, if such a market develops, of which there is no assurance.

While the actual terms of a transaction to which the Company may be a party cannot be predicted, it may be expected that the parties to the business transaction will find it desirable to avoid the creation of a taxable event and thereby structure the acquisition in a so-called "tax-free" reorganization under Sections 368(a)(1) or 351 of the Internal Revenue Code (the "Code"). In order to obtain tax-free treatment under the Code, it may be necessary for the owners of the acquired business to own 80% or more of the voting stock of the surviving entity. In such event, the shareholders of the Company, would retain less than 20% of the issued and outstanding shares of the surviving entity, which would result in significant dilution in the equity of such shareholders.

As part of the Company's investigation, officers and directors of the Company may personally meet with management and key personnel, may visit and inspect material facilities, obtain analysis of verification of certain information provided, check references of management and key personnel, and take other reasonable investigative measures, to the extent of the Company's limited financial resources and management expertise. The manner in which the Company participates in an opportunity will depend on the nature of the opportunity, the respective needs and desires of the Company and other parties, the management of the opportunity and the relative negotiation strength of the Company and such other management.

With respect to any merger or acquisition, negotiations with target company management is expected to focus on the percentage of the Company which the target company shareholders would acquire in exchange for all of their shareholdings in the target company. Depending upon, among other things, the target company's assets and liabilities, the Company's shareholders will in all likelihood hold a substantially lesser percentage ownership interest in the Company following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event the Company acquires a target company with substantial assets. Any merger or acquisition effected by the Company can be expected to have a significant dilutive effect on the percentage of shares held by the Company's then shareholders.

The Company will participate in a business opportunity only after the negotiation and execution of appropriate written agreements. Although the terms of such agreements cannot be predicted, generally such agreements will require some specific representations and warranties by all of the parties thereto, will specify certain events of default, will detail the terms of closing and the conditions which must be satisfied by each of the parties prior to and after such closing, will outline the manner of bearing costs, including costs associated with the Company's attorneys and accountants, will set forth remedies on default and will include miscellaneous other terms.

As stated hereinabove, the Company will not acquire or merge with any entity which cannot provide independent audited financial statements within a reasonable period of time after closing of the proposed transaction. The Company is subject to all of the reporting requirements included in the Exchange Act. Included in these requirements is the affirmative duty of the Company to file independent audited financial statements as part of its Form 8-K to be filed with the Securities and Exchange Commission upon consummation of a merger or acquisition, as well as the Company's audited financial statements included in its annual report on Form 10-K (or 10-KSB, as applicable).

The Company does not intend to provide the Company's security holders with any complete disclosure documents, including audited financial statements, concerning an acquisition or merger candidate and its business prior to the consummation of any acquisition or merger transaction.

Results of Operations

Comparison of quarters ended June 30, 2003 and 2002

For the six month period ended June 30, 2003 the Company incurred gains of $1,687,483 and at June 30, 2002 the Company incurred losses of $787,487.

The Company had no operations in the quarter ending June 30, 2003 and the gain is comprised of the sale of all of the capital assets in the amount of $1 compared to operations at June 30, 2002. The Company had no operations during the quarter ended June 30, 2003 compared to income generated by the IP telephony business during the quarter ended June 30, 2002 of $115,714 with operating expenses of $256,635. During the fourth quarter of 2002, the Company discontinued the IP telephony service due to lack of funds. Not taking the gain on the sale of capital assets, the Company had a net loss of $77,252 for the six months ended June 30, 2003 compared to a net loss of $787,487 for the six months ended June 30, 2002.

Liquidity and Capital Resources

Summary of Working Capital and Stockholders' Equity

As of June 30, 2003, the Company had paid in capital of $1,483,525 and Stockholders' Equity (deficiency) of ($1,847,223) compared with paid in capital of $1,400,861 and Stockholders' Equity (deficiency) of ($2,889,774) as of December 31, 2002. The substantial increase in working capital and Stockholders' Equity for the comparative periods ended June 30, 2003 and December 31, 2002 is for the discontinuance of the IP telephony business and the write off of capital assets.

The Company was unable to obtain additional capital investment in amounts sufficient to fund operating losses and cash used as described in our financial statements for the six months period ended June 30, 2003.



Report of Management's Responsibility

The Company's sole executive officer, Mr. Serge Doyon, who serves as the Company's principal executive officer and principal accounting officer, has implemented the Company's disclosure controls and procedures to ensure that material information relating to the Company is made known to Mr. Doyon. Mr. Doyon has evaluated the effectiveness of the Company's disclosure controls and procedures as of a date within 90 days prior to the filing date (the "Evaluation Date") of this quarterly report.

Based on such evaluation, Mr. Doyonhas concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures are effective in alerting him on a timely basis to material information relating to the Company that is required to be included in our reports filed or submitted under the Securities Exchange Act of 1934. Moreover, there were no significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of such recent evaluation.

Prior to the filing date of this quarterly report, the Company had not adopted a complete set of written policies, controls and procedures. The Company is now developing such written document and expects that in the process of such undertaking it will discover internal control policies and practices that the Company should implement and follow that are not part of its current practice.



PART II - OTHER INFORMATION

ITEM 1. 	LEGAL PROCEEDINGS

On January 20, 2003, the Company received a statement of claim filed in the Superior Court of Quebec, Case number 500-17-013905-032 by Koffman Kalef in the amount of $104,144.30 for legal services. The Company filed an answer on May 22, 2003 disclaiming all but an amount of $13,000.00. This litigation is pending receipt of a hearing date.

ITEM 2.	CHANGES IN SECURITIES



None

ITEM 3.	DEFAULT UPON SENIOR SECURITIES

Not Applicable

ITEM 4. 	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable

ITEM 5.	OTHER INFORMATION



Not Applicable

ITEM 6.	EXHIBITS AND REPORTS ON FORM 8-K

1. Exhibits and Index of Exhibits - see Exhibit Index below
2. Reports on Form 8-K - None







SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VECTORIA INC

Date: September 24, 2003

By:/s/ Richard St. Julien Name: Richard St. Julien on behalf of Serge DoyonTitle: President and Director



EXHIBITS AND REPORTS ON FORM 8-K



|REGULATION S-B NUMBER | EXHIBIT                                                                                                           | REFERENCE                                                                                                                                 
|--------------------- | ----------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------
|2.1                   | Share Exchange Agreement dated as of October 2, 2001 between the Registrant and Filton International Ltd.         | Incorporated by reference to the Exhibits previously filed with the Corporation's Current Report on Form 8-K dated November 13, 2001      
|2.2                   | Share Exchange Agreement dated as of October 2, 2001 between Medan Management Corp. and Filton International Ltd. | Incorporated by reference to the Exhibits previously filed with the Corporation's Current Report on Form 8-K dated November 13, 2001      
|3(i).1                | Articles of Incorporation, as amended                                                                             | Incorporated by reference to the Exhibits previously filed with the Corporation's Registration Statement on Form 10-SB filed April 6, 1999
|3(i).2                | Certificate of Amendment of the Articles of Incorporation of the Registrant                                       | Incorporated by reference to the Exhibits previously filed with the Corporation's Current Report on Form 8-K dated November 13, 2001      
|3(i).3                | Amended and Restated Articles of Incorporation of the Registrant                                                  | Incorporated by reference to the Exhibits previously filed with the Corporation's Current Report on Form 8-K dated November 13, 2001      
|3(ii).1               | Amendment No. 1 to the Bylaws of the Registrant                                                                   | Incorporated by reference to the Exhibits previously filed with the Corporation's Current Report on Form 8-K dated November 13, 2001      
|3(ii).2               | Amended and Restated Bylaws of the Registrant                                                                     | Incorporated by reference to the Exhibits previously filed with the Corporation's Registration Statement on Form 10-SB filed April 6, 1999
|10.1                  | Employment Agreement with Kenneth Liebscher                                                                       | Incorporated by reference to the Exhibits previously filed with the Corporation's Registration Statement on Form 10-SB filed April 6, 1999
|31                    | Rule 13a - 14(a)/15d-14(a)
Certification                                                                          | Filed herewith                                                                                                                            
|32                    | Section 1350 Certification                                                                                        | Filed herewith                                                                                                                            





VECTORIA INC.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2003 and December 31, 2002

(Stated in US Dollars)

(Unaudited prepared by Management)

VECTORIA INC.

INTERIM CONSOLIDATED BALANCE SHEETS

June 30, 2003 and December 31, 2002

(Stated in US Dollars)

(Unaudited prepared by management)



|                                                    | June 30,    | December 31,
|--------------------------------------------------- | ----------- | ------------
|ASSETS                                              | 2003        | 2002        
|Current                                             |             |             
|Cash                                                | $	2,015     | $	13,181    
|Accounts receivable                                 | 8,400       | 8,400       
|                                                    |             |             
|                                                    | 10,415      | 21,581      
|Capital assets -                                    | -           | 567,680     
|                                                    |             |             
|                                                    | $	10,415    | $	589,261   
|                                                    |             |             
|LIABILITIES                                        
|Current                                             |             |             
|Accounts payable -                                  | $	115,410   | $	1,084,154 
|Due to related parties -                            | 0           | 81,900      
|Current portion of obligations under capital leases | 0           | 464,250     
|Loans payable                                       | 60,976      | 60,976      
|                                                    |             |             
|                                                    | 176,386     | 1,691,280   
|Obligations under capital leases                    | -           | 202,667     
|                                                    |             |             
|                                                    | 176,386     | 1,893,947   
|                                                    |             |             
|STOCKHOLDERS' DEFICIENCY                           
|Preferred stock, $0.01 par value                    |             |             
|20,000,000 shares authorized, none outstanding      |             |             
|Common stock, $0.01, par value -                    |             |             
|80,000,000 shares authorized                        |             |             
|38,312,721 shares outstanding                       | 197,727     | 184,227     
|Paid-in capital                                     | 1,483,525   | 1,400,861   
|Deficit                                             | (1,847,223) | (2,889,774) 
|                                                    |             |             
|                                                    | (	165,971)  | (	1,304,686)
|                                                    |             |             
|                                                    | $	10,415    | $	589,261   
|                                                    |             |             









VECTORIA INC.

INTERIM CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT

for the three and six months ended June 30, 2003 and 2002,

(Unaudited prepare by management)

(Stated in US Dollars)



|                                                     | Three months ended June30, | Six months ended June 30,
|---------------------------------------------------- | -------------------------- | -------------------------
|                                                     | 2003                       | 2002                     
|                                                     |                            |                          
|Sales                                                | $	0                        | $	34,987                 
|Operating expenses                                   | 0                          | 212,347                  
|                                                     |                            |                          
|Gross profit (loss)                                  | (	0)                       | (177,360)                
|                                                     |                            |                          
|Expenses                                             |                            |                          
|Administrative expenses                              | 0                          | 378,345                  
|Amortization of capital assets                       | 0                          | 58,292                   
|                                                     |                            |                          
|                                                     | 0                          | 436,337                  
|                                                     |                            |                          
|Net loss for the period before other item
Other item | (	0)                       | (	613,697)               
|Gain on disposition of subsidiary                    | 1,687,483                  |                          
|Write-off of capital assets                          |                            |                          
|Net gain for the period                              | 1,687,483                  | (613,697)                
|Deficit, beginning of the period                     | (	3,534,706)               | (	1,721,695)             
|                                                     |                            |                          
|Deficit, end of the period                           | $(	1,847,223)              | $	(	2,335,392)           
|                                                     |                            |                          
|Basic loss per share                                 | $(	0.00)                   | $	(	0.00)                
|                                                     |                            |                          
|Weighted average number of
shares outstanding        | 36,988,611                 | 34,615,010               
|                                                     |                            |