FORM 10-KSB
    SECURITIES AND EXCHANGE COMMISSION
          Washington, D.C. 20549
[ ] 15,ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF
   THE SECURITIES EXCHANGE ACT OF 1934
    For the fiscal year ended: March 31, 2006
                       OR
[ ]15,TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from

Commission File Number             333-127347


MailTec, Inc.
--------------------------------------------
(Exact name of registrant as specified in its
charter)


   Nevada                                            20-0754724
(State or other jurisdiction                      (I.R.S. Employer
   of incorporation or                             Identification
     organization)                                     Number)

4105 East Florida Avenue
Suite 208
Denver, CO 80222
(Address of principal executive offices, Zip Code)

(303) 753-6512
(Registrant's telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:       None
Securities registered pursuant to Section 12(g) of the Act:
   Common Stock, $.001 par value

Check whether the issuer is not required to file reports pursuant to
Section 13 or 15(d) of the Exchange Act   [   ]

Check whether the Corporation (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act during the
preceding 12 months (or such shorter period that the Corporation was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days.
Yes    __x__          No  _____

Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, and no
disclosure will be contained, to the best of Corporation's knowledge,
in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.
[ x ]

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).  Yes [  ]   No [x]

<PAGE>2

The Corporation's revenues for its most recent fiscal year were $0.00.
As of March 31, 2006, the market value of the Corporation's voting
$.00l par value common stock held by non-affiliates of the Corporation
was $0.00.

The number of shares outstanding of Corporation's only class of common
stock, as of June 30, 2006 was 1,651,064 shares of its $.001 par value
common stock.

No documents are incorporated into the text by reference.

Transitional Small Business Disclosure Format (check one)
 Yes                No     x
     --------          --------



<PAGE>3
             PART I
ITEM 1.    BUSINESS

Operations.

MailTec will provide bulk mail expediting to a number of established
businesses that utilize bulk mailings in their operations such as
financial institutions, health organizations and government.

MailTec's core business will offer a method of flat mail drop shipping,
which is an alternative to traditional First-Class mailing methods and
an enhancement to Pre-Sort standard class mail.  Due to lengthy transit
times, traditional First-Class mailing methods have been used to
replace bulk mailings.  Although First-Class mail meets more service
requirements, it also results in higher postage costs, whereas
management is of the opinion that MailTec's similar services could
result in savings of up to 30% off First-Class postage due to the
elimination of the need for these customers to maintain their own mail
room and the volume discounts we receive.

We will use all options provided by the U.S. Postal Service to expedite
customer mailings.  We use presort standard - drop shipments.  We will
deliver our local mail to the Denver Sectional Center Facility and, for
a discounted price, the USPS will forward our priority bagged mail to
the post office facility that will deliver.  We will deliver all other
mail to the destination United States Postal Service facility closest
to the ultimate delivery point.  The USPS offers further discounts due
to volume, weight and sorting.  The standard presort rate discount
begins with a minimum of 200 pieces or fifty pounds of presorted flats.
The weight classes are broken down into two main categories - 3.3
ounces or less and more than 3.3 ounces.  Management estimates that the
bulk of our business will consist of handling basic irregular sized
flats defined as no larger than 15 3/4" x 12" x 1 1/4" weighing 3 to 16
ounces.  The USPS offers further discounts as volume increases for both
basic presorted flats and for automated presorted flats.  All sorting
will be done by hand until the volume of packages increases to a
sufficient level where the cost of automation is feasible.  Within the
next twelve months, MailTec has no plans to become automated.

Our revenue will be based on difference between the amount paid by the
customer and our actual cost.  Although, we have no history of or
assurance for profitable operations, management is of the opinion that
the greater the discounts we receive due to volume, weight and sorting,
the higher potential profit percentage we may obtain.  Prices charged
to our customers will be separately negotiated and will vary based on
their volume and their actual cost to mail each piece calculated as
postage plus overhead.



<PAGE>4

Services.

MailTec offers a combined service whereby MailTec picks up, sorts and
transports mail into the destination United States Postal Service
facility closest to the ultimate delivery point.  The USPS receives and
delivers the mail to the end user through its local carrier network.
The customer experiences First-Class comparable transit times at a
savings of up to 30% off First-Class postage.

MailTec focuses on three types of mail that qualify for its services:
   -  Flat Mail:  weight 3.3 ounces to 15.99 ounces
   -  Bound Printed matter:  weight 16 ounces to 15 pounds
   -  Irregulars:  weight 3.3 ounces to 15.99 ounces

Qualification of the mail is key to utilizing the MailTec Service to
its fullest potential.  As a result, MailTec will train its employees
to assure coding accuracy and to assist in identifying customer
opportunities.

The types of flat mail that qualify for MailTec's services are annual
reports, booklets, brochures, CD's, course materials, college
correspondence, directories, enrollment packets, financial-aid
information, insurance benefits, license plates, media quides, t-shirts
and videos.

MailTec will offer a highly secure solution for sensitive mailing
materials.  MailTec's expedited mail service includes bonded drivers,
and sealed, security-tagged containers.  Each flat receives its own
identification number and does not enter a US Postal Facility until the
end of the process, when MailTec can provide confirmation of induction
and final delivery.

We intend for the savings in postage costs to the customer to only
begin the list of benefits offered through MailTec expedited services.
Accountability of business communication remains the first priority for
the customer and MailTec is committed to the continuous development of
value-added services not available through traditional mailing methods.

Other benefits will include:
   -  Flexible pick-up schedules
   -  Bonded transportation professionals
   -  Address verification and correction
   -  Secured processing environment
   -  Progressive tracking to USPS destination facilities
   -  Return Endorsements
   -  Transportation networks
   -  Enhanced disaster recovery capabilities
   -  Proprietary manifest software
   -  Advanced technology
   -  Customized reporting
   -  Coast-centered billing
   -  Web access to shipping data



<PAGE>5

MailTec will have a web-based management and tracking reporting system
providing the customer quick access to their shipment data, allowing
them to access the reports necessary for high volume distribution
management.  Samples of available data include processing dates, piece
counts, weights, postage, savings, distribution type, and destination
locations.  These reports are available in both summary and detail
formats.  Our ability to track an individual piece of mail by a unique
identification number serves as a powerful tool for customer service
departments, allowing for immediate access to the status of a current
shipment, eliminating costly duplicate mailings.

MailTec intends to place its highest priority on the development of an
extensive regional ground transportation network, ensuring the customer
the most direct induction into the USPS destination facility.  MailTec
intends to become a recogni zed "National Account" of the United States
Postal Service, Business Partner Segment.  Upon notification
application to the USPS, MailTec can drop ship nationally as well as
locally to all USPS facilities in the continental U.S. and Hawaii.
MailTec will be required to make a deposit to the USPS for estimated
postal costs for the next 90 days.

MailTec Process.

MailTec will offer flexible and multiple pick-up schedules to
accommodate the customer's daily work-shift requirements.  A team of
drivers will be compelled to adhere to a high level of service
standards and operating procedures.

MailTec will receive its product in a secured mailing facility
located in Denver, Colorado.  Upon induction, the mail is staged and
segregated for immediate processing.  Each piece will be weighted,
addresses are verified, assigned a company tracking number through a
proprietary manifest system and the indicia are applied.  Once the
mail will enter MailTec's system, the primary sorter will segregate
the mail according to zip codes and then prepare it for USPS
induction.

MailTec will utilize regional airlines, UPS, Federal Express and
Airborne Express to forward our mail to zip codes out of our region
and will require significant quantities of gasoline, diesel fuel and
jet fuel for aircraft and delivery vehicles.  MailTec has no oral or
written transportation arrangements.  We will pay in advance for any
services utilized.  MailTec will pay for the transportation expenses
from the revenues received for our services in regards to those
packages.  We therefore will be exposed to commodity price risk
associated with variations in the market price for petroleum
products.  Competitive and other pressures may prevent us from
passing these costs on to our customers.  We cannot assure you that
their supply of these gasoline products will continue uninterrupted,
that rationing will not be imposed or that the prices of, or taxes
on, these products will not increase significantly in the future.
Increases in prices that we are unable to pass on to our customers
will adversely affect our results of operations

<PAGE>6

After initial processing and sorting at MailTec's processing
facility, mail for distribution is inventoried, containerized and
sealed in specially designed MailTec transportation containers.  At
this point, each container is assigned a tracking number from the
entity (UPS, FedEx, etc) transporting to the nearest USPS facility
as well the status of the product may be monitored at any time.
MailTec's regional ground network ensures that the mail received at
the facility is transported and inducted into the appropriate USPS
destination facility within 12 to 24 hours.  As part of the USPS
program, MailTec will be subject to stringent requirements, which
are audited at the site of sorting and verified at each USPS
Destination Facility.

As part of MailTec's service, security measures have been developed
by senior management and will remain standard operating procedure
relative to the transport of products via ground and air cargo
services.

For highly sensitive material, MailTec will provide bonded drivers
and containers that can be sealed and security tagged; ensuring that
products inbound to MailTec's facility will not be disturbed and
that any tampering will be immediately detected.  MailTec will
assign an identification number to each individual piece entering
the system.  Once accumulated, mail is securely containerized,
sealed and assigned a tracking number in the transport system before
delivery to MailTec's facility.  All personnel who have contact with
MailTec's processed products will have been subject to rigorous
screening that includes background and criminal checks.

Location and Facility.

MailTec's facility will be located within Metro-Denver.  The
facility has not yet been identified.  The facility will consist of
a building of approximately 4,000 square feet, which will be needed
for mail sorting.  The facility will be filled with different
sorting bins that will be differentiated by the last three digits of
zip codes.  The location, to be determined, will not affect the
amount of business as long as the facility is established within the
metro vicinity.

Equipment and Software.

Until MailTec's mail handling exceeds 2,000 pieces per day, MailTec
will only need two personal computers, a scale and a small printer.
The software that MailTec will purchase will provide address
verification and correction, tracking and on-line reporting.

Market Overview and Strategy.

The flat mail market segment continues to be a main revenue contributor
within the mail industry.  According to the USPS Flats Summit, flat
mail represents 25% of total mail volume.  Flats amounted to 51.6
billion pieces delivered last year worth $14.6 billion to the USPS in
revenue.  (USPS Annual Report).  The entities that send the flat mail
that make up this market segment will be our target market.

<PAGE>7

Management is of the opinion that society has become very centered upon
speed, accountability and affordability, which is also evident in the
business world.  Based on in-house study, management believes that
without the mail industry, millions of customers would not be reached
and would ultimately be lost.  However, obtaining market share will be
difficult because MailTec must prove that we are timely, accountable
and affordable and customers may be hesitant to initially try a new
company.  Therefore, MailTec must prove to customers through consistent
measures that we will
   -   deliver in 2 to 5 days nationwide,
   -   save customers up to 30% off First-Class postage,
   -   provide flexible pick up schedules,
   -   have thorough customer tracking,
   -   have content assurance using variable weight manifesting to
weigh each piece individually, and
   -   perform custom mail prep at our processing center locally
located in Denver, Colorado.

MailTec marketing strategy will be to obtain the highest standards of
customer satisfaction, and as a result will gain customer confidence
and loyalty.

Customer Profile

MailTec's customers will consist of anyone who desires the need for
reliable and affordable mail expediting.  The majority of the business
will come from:
   -   large companies,
   -   financial institutions,
   -   colleges,
   -   government agencies,
   -   insurance companies,
   -   travel agencies,
   -   doctors' offices etc.;

whom may need to mail material such as:
   -   annual reports,
   -   booklets,
   -   brochures,
   -   CD's,
   -   course materials,
   -   correspondence,
   -   directories,
   -   enrollment packets,
   -   license plates,
   -   media guides,
   -   proxy materials
   -   t-shirts, and
   -   videos, etc.



<PAGE>8

As of the date of this prospectus, MailTec will be the city's only
local processing facility.  The major benefit of this is that MailTec
will essentially have a one to two-day head start over its competition
that may need up to two days to reach their processing facilities.

Advertising & Promotion

MailTec will establish itself in the Denver market by using a variety
of marketing programs to successfully introduce MailTec to customers.
The primary marketing tool will be the development of our Website.  The
Website will allow customers to visit with MailTec and learn about the
services, prices, benefits, and operating procedures.  The Website will
also inform customers how to contact MailTec.

Other forms of marketing will be established through promotional
brochures, which again will introduce MailTec and explain the services
and benefits offered.  MailTec will also pursue direct mailing to
viable businesses that may use MailTec's services.  Another marketing
tool will be the visibility of MailTec's delivery trucks that will
increase customer awareness.

Competition

MailTec has several main competitors.  These competitors include
UPS/RMX, Federal Express Corporation, DHL and Airborne Express.
However, none of these competitors have a processing facility located
in Denver, Colorado.

Management believes that MailTec can compete based on the restriction
of our business activity to the local area.  MailTec intends to keep
overhead costs down to compete at lower rates by processing local
business locally.

In order to compete effectively, we may need to expend significant
internal resources for marketing to increase our market share.

The above-described companies may have a competitive advantage because
they have greater access to content, maintain billing relationships
with more customers and have access to established distribution
networks.

These companies have an established customer base and instant market
recognition.  These competitors have greater access to the consumer.
For the year ended February 28, 2004, Federal Express had revenues of
$17,383,000,000.  For the year ended December 31, 2004, United Parcel
Service had total revenue of $36,582,000,000.  We have not yet
generated any revenue from our business model compared to significant
revenue generated by these competitors.

If new competitors seized our product ideas and e-commerce business
model and produced competing web sites with similar product matrixes,
our ability to generate revenue would be negatively affected.
Additionally, these new competitors could be better capitalized and
capture a larger market share of our intended market.

<PAGE>9

Employees

W. Ross C. Corace, an officer and director is currently our only
employee.  Additionally employees will be hired as funds allow.  In the
immediate future, MailTec will hire a general manager and a sorter.

Reports to Security Holders
After this offering, we will become a fully reporting company under the
requirements of the Exchange Act, and we will file the necessary
quarterly and other reports with the Securities and Exchange
Commission.  The reports and other information filed by us will be
available for inspection and copying at the public reference facilities
of the Securities and Exchange Commission located at 450 Fifth Street,
N. W., Washington, D.C. 20549.

Copies of such material may be obtained by mail from the Public
Reference Section of the Securities and Exchange Commission at 450
Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates.

Information on the operation of the Public Reference Room may be
obtained by calling the SEC at 1-800-SEC-0330.  In addition, the
Commission maintains a World Wide Website on the Internet at:
http://www.sec.gov that contains reports, proxy and information
statements and other information regarding registrants that file
electronically with the Securities and Exchange Commission.


ITEM 2.  PROPERTIES.

We lease our office space at Newport Plaza Office Building, 4105 East
Florida Avenue, Suite 208, Denver, Colorado on an annual basis at a
monthly rate of $500 from a non-affiliate commencing October 1, 2005.
Our office space consists of 645 square feet.

We will maintain a secured mailing facility in Denver, CO.  MailTec is
currently in the beginning stages of identifying appropriate space.

The real property utilized by MailTec is in good condition, adequate
for present operations and adequately covered by insurance.  We also
maintain insurance coverage for commercial general liability including
blanket contractual liability, tenant's legal liability, non-owned
automobile, and cross liability coverage.


ITEM 3.  LEGAL PROCEEDINGS.

The Corporation is not involved in any legal proceedings at this date.


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

During the last quarter of the fiscal year ended March 31, 2006, no
matters were submitted to a vote of MailTec, Inc. security holders,
through the solicitation of proxies.

<PAGE>10
                  PART II

ITEM 5.  MARKET FOR CORPORATION'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

Market Information.  The Corporation has not yet begun trading publicly
on the NASD Over the Counter Bulletin Board on under the symbol "    ".

The Corporation has never paid any cash dividends nor does it intend,
at this time, to make any cash distributions to its shareholders as
dividends in the near future.

As of June 30, 2006, the number of holders of Corporation's common
stock is 6.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.

Trends and Uncertainties

The demand for our services would be negatively affected by any
reduction in the discounts provided by the USPS for volume, weight and
sorting of mail.  Additionally, increased costs of carriers such as
Federal Express and UPS could negatively affect our operations.

Investing Activities

For the year ended March 31, 2006, MailTec had an increase in deposits
of $500 resulting in net cash used in investing activities of $500.

For the year ended March 31, 2005, MailTec purchase fixed assets of
$400 resulting in net cash used in investing activities of $400.

Financing Activities

For the year ended March 31, 2006, MailTec received proceeds from
officer/director advances of $60,450 and repaid the total amount of
those advances.   Additionally, MailTech repaid notes payable of
$28,932.   As a result, MailTec had net cash used in financing
activities of $28,932 for the year ended March 31, 2006.

For the year ended March 31, 2005, MailTec received proceeds from the
issuance of common stock of $8,000 and preferred stock of $2,000.
MailTec paid a dividend on preferred stock of $225.  MailTec received
contribution of certificates of deposit to capital of $50,000 for the
year ended March 31, 2006.  For the year ended March 31, 2006, MailTec
received proceeds from officer/director advances of $36,735 and repaid
the total amount of those advances.  For the year ended March 31, 2005,
MailTec received proceeds from subscriptions receivable of $25,000.
For the year ended March 31, 2005, MailTec had net cash provided by
financing activities of $322,775.



<PAGE>11

During the year ended March 31, 2005, MailTec executed a United States
Small Business Administration loan agreement.  The SBA agreement
provides for a $100,000 loan with a maturity of March 8, 2012, with
interest at Wall Street Journal Prime Rate plus 2.75 percent

Our cash flow will be reduced by the payments of principal and interest
of $1,596 per month for 84 months.  The loan is secured by a $50,000
certificated of deposit.

During the year ended March 31, 2005, MailTec entered into a $138,000
line of credit.  The agreement provides for a $138,000 loan with a
maturity of February 1, 2010, with interest at Wall Street Journal
Prime Rate plus 1.75 percent.  Our cash flow will be reduced by the
payments of principal and interest of $2,941 per month for 58 months,
commencing May 1, 2005.  The loan is secured by the assets of MailTec
and is guaranteed by W. Ross C. Corace, an officer and director.

Results of Operations

We are a development stage company and have not yet commenced
operations.  For the year ended March 31, 2006, we did not receive any
revenues and had operating expenses of $104,903 which consisted of
selling, general and administrative expenses spent to set up business
operations and the administrative, legal and accounting expenses
necessary to complete the recent registration statement.
Comparatively, MailTec had operating expenses of $284,053 for the year
ended March 31, 2005.  For the year ended March 31, 2005, our operating
expenses consisted of stock compensation expense ? general and
administrative of $45,109 and selling, general and administrative of
$133,891.

Plan of Operation
<TABLE>
<CAPTION>
Milestones:                          Steps                             Timeline

                                  <c>                                 <c>
1. Assemble a sales staff          Identify candidates                3-6 months
                                Train selected candidates

2. Create sales material   Research competitors sales material         6 months
   and marketing campaign    Identify key marketing strategy
                               Create, print and distribute
                                    sales materials
                                  Identify prospects

3. Bring in customers sufficient Develop relationships with           6-12 months
   sufficient to process           identified prospects
   4,000 pieces of bulk mail
   a day
</TABLE>
No one milestone needs to be complete to pursue any other milestone.

1.   MailTec currently has sufficient working capital to defray the
cost of hiring and training the sales candidates until the commission
based pay commences.

<PAGE>12

Recent Prouncements.  In November 2004, the Financial Accounting
Standards Board (FASB) issued SFAS 151 "Inventory Costs". This
Statement amends the guidance in ARB No. 43, Chapter 4, "Inventory
Pricing, to clarify the accounting for abnormal amounts of idle
facility expense, freight, handling costs, and wasted material
(spoilage). In addition, this Statement requires that allocation of
fixed production overhead to the costs of conversion be based on the
normal capacity of the production facilities. The provisions of this
Statement will be effective for the Company beginning with its fiscal
year ending March 31, 2007. The Company is currently evaluating the
impact this new Standard will have on its operations, but believes that
it will not have a material impact on the Company's financial position,
results of operations or cash flows.

In December 2004, the FASB issued SFAS 153 "Exchanges of Non monetary
Assets - an amendment of APB Opinion No. 29". This Statement amended
APB Opinion 29 to eliminate the exception for non monetary exchanges of
similar productive assets and replaces it with a general exception for
exchanges of non monetary assets that do not have commercial substance.
A non monetary exchange has commercial substance if the future cash
flows of the entity are expected to change significantly as a result of
the exchange. The adoption of this Standard is not expected to have any
material impact on the Company's financial position, results of
operations or cash flows.

In December 2004, the FASB issued SFAS 123 (revised 2004) "Share-Based
Payment". This Statement requires that the cost resulting from all
share-based transactions be recorded in the financial statements. The
Statement establishes fair value as the measurement objective in
accounting for share-based payment arrangements and requires all
entities to apply a fair-value-based measurement in accounting for
share-based payment transactions with employees. The Statement also
establishes fair value as the measurement objective for transactions in
which an entity acquires goods or services from non-employees in share-
based payment transactions. The Statement replaces SFAS 123 "Accounting
for Stock-Based Compensation" and supersedes APB Opinion No. 25
"Accounting for Stock Issued to Employees". The provisions of this
Statement will be effective for the Company beginning with its fiscal
year ending March 31, 2007. The Company is currently evaluating the
impact this new Standard will have on its financial position, results
of operations or cash flows.

In March 2005, the Securities and Exchange Commission (SEC) issued
Staff  Accounting  Bulletin No.107 (SAB 107) which provides guidance
regarding the  interaction  of SFAS 123(R) and certain SEC rules and
regulations. The new guidance includes the SEC's view on the valuation
of share-based payment  arrangements for public companies and may
simplify some of SFAS 123(R)'s  implementation  challenges  for
registrants  and  enhance the information investors receive.

In August 2005, the FASB issued SFAS 154, Accounting Changes and Error
Corrections.  This statement applies to all voluntary changes in
accounting principle and to changes required by an accounting
pronouncement if the pronouncement does not include specific transition

<PAGE>13

provisions,  and it changes the  requirements for accounting for and
reporting them. Unless it is impractical, the statement requires
retrospective  application  of the changes to prior  periods'
financial statements. This statement is effective for accounting
changes and correction of errors made in fiscal years  beginning  after
December 15, 2005.

SFAS 155 ? ?Accounting for Certain Hybrid Financial Instruments?an
amendment of FASB Statements No. 133 and 140?

This Statement, issued in February 2006, amends FASB Statements No.
133, Accounting for Derivative Instruments and Hedging Activities, and
No. 140, Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities. This Statement resolves issues
addressed in Statement 133 Implementation Issue No. D1, ?Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets.?

This Statement:
a.   Permits fair value remeasurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would
require bifurcation
b.   Clarifies which interest-only strips and principal-only strips
are not subject to the requirements of Statement 133
c.   Establishes a requirement to evaluate interests in securitized
financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an
embedded derivative requiring bifurcation
d.   Clarifies that concentrations of credit risk in the form of
subordination are not embedded derivatives
e.   Amends Statement 140 to eliminate the prohibition on a
qualifying special-purpose entity from holding a derivative
financial instrument that pertains to a beneficial interest other
than another derivative financial instrument.

This Statement is effective for all financial instruments acquired or
issued after the beginning of our first fiscal year that begins after
September 15, 2006.

The fair value election provided for in paragraph 4(c) of this
Statement may also be applied upon adoption of this Statement for
hybrid financial instruments that had been bifurcated under paragraph
12 of Statement 133 prior to the adoption of this Statement. Earlier
adoption is permitted as of the beginning of our fiscal year, provided
we have not yet issued financial statements, including financial
statements for any interim period, for that fiscal year. Provisions of
this Statement may be applied to instruments that we hold at the date
of adoption on an instrument-by-instrument basis.

The Company is currently reviewing the effects of  adoption of this
statement but it is not expected to have a material impact on our
financial statements.

<PAGE>14

SFAS 156 ? ?Accounting for Servicing of Financial Assets?an amendment
of FASB Statement No. 140?

This Statement, issued in March 2006, amends FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities, with respect to the accounting for
separately recognized servicing assets and servicing liabilities. This
Statement:

1.   Requires an entity to recognize a servicing asset or servicing
liability each time it undertakes an obligation to service a
financial asset by entering into a servicing contract in certain
situations.
2.   Requires all separately recognized servicing assets and
servicing liabilities to be initially measured at fair value, if
practicable.
3.   Permits an entity to choose either the amortization method or
the fair value measurement method for each class of separately
recognized servicing assets and servicing liabilities.
4.   At its initial adoption, permits a one-time reclassification of
available-for-sale securities to trading securities by entities with
recognized servicing rights, without calling into question the
treatment of other available-for-sale securities under Statement
115, provided that the available-for-sale securities are identified
in some manner as offsetting the entity?s exposure to changes in
fair value of servicing assets or servicing liabilities that a
servicer elects to subsequently measure at fair value.
5.   Requires separate presentation of servicing assets and
servicing liabilities subsequently measured at fair value in the
statement of financial position and additional disclosures for all
separately recognized servicing assets and servicing liabilities.

Adoption of this Statement is required as of the beginning of the first
fiscal year that begins after September 15, 2006.  The adoption of this
statement is not expected to have a material impact on our financial
statements.

Going Concern

The accompanying financial statements have been prepared assuming that
MailTec will continue as a going concern. Going concern contemplates
the realization of assets and the satisfaction of liabilities in the
normal course of business over a reasonable length of time.  MailTec is
in the development stage and has incurred ($305,656) of losses since
inception and has negative cash flows from operations.  The future of
MailTec is dependent upon our ability to reach our milestones, obtain
additional equity financing and upon future successful development and
marketing of MailTec's services.



<PAGE>15

Failure to reach the milestones discussed above or secure additional
financing, if any, may result in MailTec?s inability to continue as a
going concern.


ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Financial Statements

The response to this item is being submitted as a separate section of
this report beginning on page 20.


ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

None


ITEM 8A CONTROLS AND PROCEDURES

Controls and Procedures.  W. Ross C. Corace, the Chief Executive
Officer and the Chief Financial Officer of the Corporation has made an
evaluation of the disclosure controls and procedures relating to the
annual report on Form 10KSB for the year ended March 31, 2006 as filed
with the Securities and Exchange Commission and has judged such
controls and procedures to be effective as of March 31, 2006 (the
evaluation date).

There have not been any significant changes in the internal controls of
the Corporation or other factors that could significantly affect
internal controls relating to the Corporation since the evaluation
date.



<PAGE>16
             PART III

ITEM 9.    DIRECTORS AND EXECUTIVE OFFICERS OF THE CORPORATION

Our bylaws provide that the number of directors who shall constitute
the whole board shall be such number as the board of directors shall at
the time have designated.  Each director shall be selected for a term
of one year and until his successor is elected and qualified. Vacancies
are filled by a majority vote of the remaining directors then in office
with the successor elected for the unexpired term and until the
successor is elected and qualified.

The directors, executive officers and significant employees are as
follows:

Name                     Age        Positions Held         Since

W. Ross C. Corace        64        President, CEO, CFO   Inception
                                     Director            to present

Steven S. Martella       43        Secretary/Director   June 23, 2005
                                                          to present

Kenneth D. Barrett       46           Director          June 23, 2005
                                                       	   to present

W. Ross C. Corace.

Mr. Corace has been an officer and director of MailTec since inception.
Mr. Corace was semi-retired, managing his own financial affairs, from
September 2000 until February 2004.  Mr. Corace was an officer of
Oakwood Enterprises Corp., a company from October 10, 2000 to September
30, 2003.  Mr. Corace was an officer and director of Makepeace Capital
Corp., a publicly held company engaged in home improvement sales from
1997 until its change of control in August 2000.   During the last year
of Mr. Corace?s presidency, Makepiece Capital had revenues of $0.00 and
a net loss of $(223,682).  Mr. Corace was an officer and director of RC
Capital, Inc., a construction products company from July 1997 until it
merged into Makepeace in July 1998.  From January 1981 to June 1997,
Mr. Corace was an officer of Foxmoor Industries, Ltd., a publicly held
corporation in the business of purchasing and selling home improvement
contracts from December 1981 until it was purchased by General Pacific
Corp. in June 1997.  Mr. Corace received a BBA degree in business
administration from Ohio University in 1963.

Steven S. Martella.

 Steven S. Martella has been secretary and a director of MailTec since
June 23, 2005.   In 1981, Mr. Martella joined the U.S. Postal Service
as a management trainee and received his On-The-Job Instructor
Certification.   Over a 17-year period of time through 1998, Mr.
Martella held several management positions with the U.S. Postal
Service.   In the position of supervisor, Mr. Martella managed the
operations at the U.S. Postal Service Airline Mail Handling Facility at
Stapleton Airport and DIA preparing shipments to be placed on domestic
airlines.  In that capacity, Mr. Martella trained personnel in

<PAGE>17

equipment and computer operations and in construction of containers for
shipping.  Mr. Martella coordinated the movement of mail with the
airlines.  While with the U.S. Postal Service, Mr. Martella obtained
his real estate broker's license.  From 1998 to present, Mr. Martella
has been with Ultimate Realty responsible for sales and administrative
operations.

Kenneth D. Barrett.

Mr. Barrett has been a director of MailTec since June 23, 2005.  From
December 2000 to October 2004, Mr. Barrett was employed by General
Motors Saturn Division as a sales/leasing consultant.  Mr. Barrett was
employed by the U.S. Postal Service in numerous capacities from June
1982 to December 2000.  During his tenure at the U.S. Postal Service,
Mr. Barrett occupied numerous management positions such as supervisor,
mails and delivery; superintendent station/branch operations;
superintendent, support services, manager, customer services and
operations support specialist.  Among Mr. Barrett's duties, were
included special assignments in training and auditing.  From October
2003 to present, Mr. Barrett has also worked as a mail carrier for the
U.S. Postal Service.

The above named directors will serve in their capacity as director
until our next annual shareholder meeting to be held within six months
of our fiscal year's close. Directors are elected for one-year terms.

ITEM 10.  EXECUTIVE COMPENSATION

We may elect to award a cash bonus to key employees, directors,
officers and consultants based on meeting individual and corporate
planned objectives.

The following shows the annual salaries, bonuses and stock options for
our executive officers for the years ended March 31, 2006 and 2005:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------+
                                             SUMMARY COMPENSATION TABLE
+----------------------------------------------------------------+--------------------------------------------------------+
|                                                                | Long-Term Compensation                                 |
+----------------------+-----------------------------------------+------------------------------+-------------------------+
|                      | Annual Compensation                     | Awards                       | Payouts                 |
+----------------------+---------+-----------+-------------------+-----------+------------------+-------------------------+
|(a)        |   (b)    | (c)     |   (d)     | (e)               | (f)       |  (g)             |  (h)       (i)          |
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------

             <c>      <c>         <c>           <c>               <c>            <c>             <c>         <c>
|           |          |         |           | Other             |Restricted | Securities       |          |              |
|Name and   |          | Annual  |   Annual  | Annual            |Stock      | Underlying       |LTIP      | All Other    |
|Principal  | Fiscal   | Salary  |   Bonus   | Compensation      |Awards     | Options/SARs     |Payouts   | Compensation |
|Position   |  Year    | ($)     |   ($)     | ($)               |($)        | (#)              |($)       | ($)          |
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
|W. Ross
  C. Corace|  2006             -        -            -                  -            -                 -           -
| (1)         2005       $97,135        -            -                  -            -                 -           -
|CEO, CFO
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
|Steven S.  |  2006           -         -            -                  -            -                 -           -
|Martella,(2)  2005        na         na            na                na             na             na            na
|CFO
+-----------+----------+---------+-----------+-------------------+-----------+------------------+----------+--------------+
</TABLE>
<PAGE>18

(1) Mr. Corace's aggregate restricted stock holdings at the end of the
last completed fiscal year were 1,500,000 common shares with a value of
$10,000.  All 1,500,000 common shares have a rule 144 restrictive
legend.

(2) Mr. Martella's aggregate restricted stock holdings at the end of
the last completed fiscal year were 0 common shares with no value.

Option/SAR Grants in Last Three Fiscal Years
<TABLE>
<CAPTION>
                            Individual Grants
---------------------------------------------------------------------------------

               <c>                <c>                  <c>                <c>
(a)                (b)                (c)                 (d)                (e)
                Number of
                Securities         % of Total
                Underlying         Options/SARs
                Options/           Granted to
                SARs               Employees in      Exercise or Base     Expiration
Name            Granted(#)         Fiscal Year       Price ($/Sh)            Date
W. Ross C.
  Corace           -                     -                -                    -

Steven S. Martella -                     -                -                    -
</TABLE>
 (1)All of the above options/SARs granted were exercisable based on 50%
of such options exercisable after the first anniversary date in which
they were awarded with the balance exercisable after the second
anniversary date.

Option/SAR Grants in Last Fiscal Year
<TABLE>
 (a)               (b)                (c)                 (d)                (e)
                                                      Number of
                                                      Securities         Value of
                                                      Underlying         Unexercised
                                                      Unexercised        In-the-Money
                                                      Options/SARs       Options/SARs
                                                      FY-End(#)          FY-End($)
                Shares Acquired                       Exercisable/       Exercisable/
Name            on Exercised(#)   Value Realized($)   Unexercisable      Unexercisable
--------------------------------------------------------------------------------------
-

               <c>                <c>                 <c>                <c>
W. Ross C.
  Corace               -                 -                  -                    -

Steven S. Martella     -                 -                  -                    -
</TABLE>

The blank tables are intentional.   No grants required to be
disclosed have been made.



<PAGE>19

We do not have any standard arrangements by which directors are
compensated for any services provided as a director.  No cash has been
paid to the directors in their capacity as such.

ITEM 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

The following table sets forth, as of June 30, 2006, the number and
percentage of outstanding shares of MailTec common stock owned by
(i) each person known to us to beneficially own more than 5% of its
outstanding common stock, (ii) each director, (iii) each named
executive officer, and (iv) all officers and directors as a group.
<TABLE>
<CAPTION>
Name of                     Common Stock        % Class Owned       % Class Owned
Beneficial Owner          Beneficially Owned   before offering      after offering

                              <c>                 <c>                 <c>
W. Ross C. Corace            1,500,000             92.25%               46.94%
1570 South York Street
Denver, Colorado 80210

Steven S. Martella                   0               0.00%               0.00%
7268 Secrest Court
Arvada, Colorado 80007

Kenneth D. Barrett                   0               0.00%               0.00%
8965 S. Holland Way, #104
Littleton, Colorado 80128

Officers & Directors
  As a Group (3 Persons)     1,500,000              92.25%              46.94%
</TABLE>
Percentages are based upon 1,651,064 issued and outstanding as of
June 30, 2006.


ITEM 12.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Loan Guarantee.   During the year ended March 31, 2005, MailTec entered
into a $138,000 loan agreement. The agreement provides for a $138,000
loan with a maturity of February 1, 2010, with interest at Wall Street
Journal Prime Rate plus 1.75 percent.  Payments of principal and
interest are $2,941 per month for 58 months, commencing May 1, 2005.
The loan is secured by the assets of MailTec and is guaranteed by W.
Ross C. Corace, an officer and director.

During the year ended March 31, 2006, W. Ross C. Corace, an officer and
director of MailTec advanced $60,450 to MailTec and was paid $60,450.

During the year ended March 31, 2005, W. Ross C. Corace, an officer and
director of MailTec advanced $36,375 to MailTec and was repaid $36,375.
Mr. Corace received $97,135 in the form of compensation.




<PAGE>20

ITEM 13.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K

     (A)    FINANCIAL STATEMENTS AND SCHEDULES

The following financial statements and schedules are filed as part of
this report:

Report of Independent Registered Public Accounting Firm          17
Balance Sheet                                                    18
Statements of Operations                                         19
Statement of Changes in Stockholders' (Deficit)                  20
Statements of Cash Flows                                         22
Notes to Financial Statements                                    24

Schedules Omitted:    All schedules other than those shown have been
omitted because they are not applicable, not required, or the required
information is shown in the financial statements or notes thereto.





<PAGE>21

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Shareholders and Board of Directors
MailTec, Inc.

We have audited the accompanying balance sheet of MailTec, Inc. (a
development stage company) as of March 31, 2006, and the related
statements of operations, stockholders' (deficit), and cash flows for
the years ended March 31, 2005 and 2006, and the period inception
(February 9, 2004) to March 31, 2006. These financial statements are
the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our
audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of MailTec,
Inc. (a development stage company) as of March 31, 2006, and the
results of its operations, and its cash flows for the years ended March
31, 2005 and 2006 and from inception (February 9, 2004) to March 31,
2006, in conformity with accounting principles generally accepted in
the United States of America.

The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.  As discussed in Note 2
to the financial statements, the Company has suffered recurring losses
from operations and has a stockholders? deficit. These factors raise
substantial doubt about the Company?s ability to continue as a going
concern. Management?s plans in regard to these matters are also
discussed in Note 2. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.


/s/ Stark Winter Schenkein & Co., LLP

Denver, Colorado
July 7, 2006




<PAGE>22

                             MAILTEC INC.
                    (A Development Stage Company)
                             Balance Sheet
                            March 31, 2006

                                Assets
Current Assets
  Cash                                                     $   41,296
                                                           ----------
    Total current assets                                       41,296
                                                           ----------
Property and equipment, net                                     3,275
                                                           ----------

Deposit                                                           500
                                                           ----------
                                                           $   45,071
                                                           ==========

                  Liabilities & Stockholders' (Deficit)

Current Liabilities
  Current portion of long term debt                            38,366
  Accounts payable                                              5,775
                                                           ----------
    Total current liabilities                                  44,141
                                                           ----------
Long term debt                                                170,702
                                                           ----------

Stockholders' (Deficit)
  Preferred stock, $.001 par value, 4,000,000 shares
   authorized, none issued or outstanding                           -
  Common Stock, $.001 par value; 10,000,000 shares
   authorized, 1,651,064 issued and outstanding                 1,651
  Additional paid in capital                                  134,233
  (Deficit) accumulated in the development stage             (305,656)
                                                           ----------
                                                             (169,772)
                                                           ----------
                                                           $   45,071
                                                           ==========





The accompanying notes are an integral part of the financial statements.




<PAGE>23

                             MAILTEC INC.
                    (A Development Stage Company)
                       Statements of Operations
                    Years Ended March 31, 2006 and 2005

                                      Years Ended         Inception to
                                  March 31,    March 31,    March 31,
                                    2006         2005         2006
                                 ----------   ----------   ----------
Revenues                         $        -   $        -   $        -
                                 ----------   ----------   ----------
Operating Expenses
  Stock compensation expense -
   general and administrative             -       45,109       45,109
  Selling, general and
   Administrative                   104,893      133,891      238,944
                                 ----------   ----------   ----------
                                    104,893      179,000      284,053
                                 ----------   ----------   ----------
Operating (loss)                   (104,893)    (179,000)    (284,053)
                                 ----------   ----------   ----------

Other income (expense)
  Interest expense                  (20,349)      (1,254)     (21,603)
                                 ----------   ----------   ----------
Net (loss)                         (125,242)    (180,254)    (305,656)
                                 ----------   ----------   ----------

Preferred stock dividends paid            -         (225)        (225)
                                 ----------   ----------   ----------
Net (loss) available to common
 stockholders                    $ (125,242)  $ (180,479)  $ (305,881)
                                 ==========   ==========   ==========

Per share information - basic and diluted:
Weighted Average Number of Common
 Shares Outstanding               1,546,086    1,500,080    1,540,148
                                 ==========   ==========   ==========

Per share information
  Basic and diluted (loss)
  Per common share              $    (0.08)   $     (.12)
                                ==========    ==========

Weighted average shares
  Outstanding                    1,651,064     1,546,086
                                 =========     =========



The accompanying notes are an integral part of the financial statements.




<PAGE>24
                             MAILTEC INC.
                    (A Development Stage Company)
                 Statement of Stockholders' (Deficit)
           Period From Inception (February 9, 2004) to March 31, 2006
<TABLE>
                                             Common Stock             Preferred Stock
                                          Shares       Amount       Shares       Amount
                                       ----------   ----------   ----------   ----------

                                        <c>          <c>          <c>          <c>
Balance, February 9, 2004 (Inception)           -   $        -            -   $        -

Shares subscribed by founder at
 inception at $.007 per share           1,500,000        1,500            -            -
Fixed assets contributed to capital             -            -            -            -
Preferred stock issued for cash
   at $1.00 per share                           -            -        1,000            1
Common stock subscribed
   at $.75 per share                       20,000           20            -            -

Net (loss)                                      -            -            -            -
                                       ----------   ----------   ----------   ----------
Balance, March 31, 2004                 1,520,000        1,520        1,000            1

Preferred stock issued for cash
   at $1.00 per share                           -            -        2,000            2
Cash received for common stock
   subscriptions                                -            -            -            -
Dividends paid on preferred stock               -            -            -            -
Common stock issued for cash
   at $.32 per share                       30,000           30            -            -
Conversion of preferred stock to common
   stock                                    3,000            3       (3,000)          (3)
Shares issued for financial services
   at $.46 per share                       25,000           25            -            -
Shares issued for administrative
   services at $.46 per share              73,064           73            -            -
Contribution of certificate of deposit
   to capital                                   -            -            -            -

Net (loss)                                      -            -            -            -
                                       ----------   ----------   ----------   ----------
Balance, March 31, 2005                 1,651,064   $    1,651            -   $        -
                                       ==========   ==========   ==========   ==========
Net (loss)                                      -            -            -            -
                                       ----------   ----------   ----------   ----------
Balance, March 31, 2006                 1,651,064   $    1,651   $        -   $        -
                                       ==========   ==========   ==========   ==========


The accompanying notes are an integral part of the financial statements.


<PAGE>25

                             MAILTEC INC.
                    (A Development Stage Company)
            Statement of Stockholders' (Deficit) CONTINUED
     For the Period February 9, 2004 (Inception) to March 31, 2005

                                                                  (Deficit)      Total
                                                    Additional  accumulated in   Stock-
                                      Subscription    Paid-In   the development holders?
                                       Receivable     Capital       stage      (Deficit)
                                       ----------   ----------    ----------  ----------
Balance, February 9, 2004 (Inception)  $        -   $        -   $        -   $        -

Shares subscribed by founder at
 inception at $.007 per share             (10,000)       8,500            -            -
Fixed assets contributed to capital             -        5,000            -        5,000
Preferred stock issued for cash                 -          999            -        1,000
Common stock subscribed
   at $.75 per share                      (15,000)      14,980            -            -

Net (loss)                                      -            -         (160)        (160)
                                       ----------   ----------   ----------   ----------
Balance, March 31, 2004                   (25,000)      29,479         (160)       5,840

Preferred stock issued for cash
   at $1.00 per share                           -        1,998            -        2,000
Cash received for common stock
 subscriptions                             25,000            -            -       25,000
Dividends paid on preferred stock               -         (225)           -         (225)
Common stock issued for cash
   at $.32 per share                            -        7,970            -        8,000
Conversion of preferred stock to common
 stock                                          -            -            -            -
Shares issued for financial services
   at $.46 per share                            -       11,475            -       11,500
Shares issued for administrative services
   at $.46 per share                            -       33,536            -       33,609
Contribution of certificate of deposit
 to capital                                     -       50,000            -       50,000

Net (loss)                                      -            -     (180,254)    (180,254)
                                       ----------   ----------   ----------   ----------
Balance, March 31, 2005                $        -   $  134,233   $ (180,414)  $  (44,530)
                                       ==========   ==========   ==========   ==========

Net (loss)                                      -            -            -            -
                                       ----------   ----------   ----------   ----------

Balance, March 31, 2006                $        -   $  134,233   $ (305,656)  $ (169,722)
                                       ==========   ==========   ==========   ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.



<PAGE>26
                             MAILTEC INC.
                    (A Development Stage Company)
                       Statements of Cash Flows
 Year Ended March 31, 2005, February 9, 2004 (Inception) to
   March 31, 2004, and February 9, 2004 (Inception) to March 31, 2005
<TABLE>
                                                     Years Ended          Inception to
                                                  March 31,    March 31,    March 31,
                                                    2006         2005         2006
                                                 ----------   ----------   ----------

                                                  <c>           <c>         <c>
CASH FLOW FROM OPERATING ACTIVITIES
Net (loss)                                      $  (125,242)  $ (180,254)  $ (305,656)
Adjustments to reconcile net (loss)
to net cash (used in) operating activities:
  Depreciation and amortization                       1,000          965        2,125
  Non-cash stock compensation                             -       45,109        45,109
  Changes in assets and liabilities:
    (Increase) decrease in
       accounts receivable                            1,500       (1,500)            -
    Increase (decrease) in accounts
       payable                                        4,521        1,254         5,775
                                                 ----------   ----------    ----------
       Total adjustments                              7,021       45,828        53,009
                                                 ----------   ----------    ----------
  Net cash (used in) operating activities          (118,221)    (134,426)     (252,647)
                                                 ----------   ----------   ----------
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets                                  -         (400)        (400)
Increase in deposits                                   (500)           -         (500)
                                                 ----------   ----------   ----------
  Net cash (used in) investing activities              (500)        (400)        (900)
                                                 ----------   ----------   ----------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock                    -        8,000        8,000
Proceeds from issuance of preferred stock                 -        2,000        3,000
Payment of dividend on preferred stock                    -         (225)        (225)
Contribution of certificate of deposit to capital         -       50,000       50,000
Proceeds from officer/director's advances            60,450       36,735       97,185
Payments on officer/director's advances             (60,450)     (36,735)     (97,185)
Proceeds from note payable                                -      238,000      238,000
Proceeds from subscriptions receivable                    -       25,000       25,000
Repayment of notes payable                          (28,932)           -      (28,932)
                                                 ----------   ----------   ----------
  Net cash provided by investing activities         (28,932)     322,775      294,932
                                                 ----------   ----------   ----------
Increase (decrease) in cash                        (147,653)     187,949       41,296
Cash - beginning of period                          188,949        1,000            -
                                                 ----------   ----------   ----------
Cash - end of period                             $   41,296   $  188,949   $   41,296
                                                 ==========   ==========   ==========
</TABLE>

The accompanying notes are an integral part of the financial statements.

<PAGE>27

                             MAILTEC INC.
                    (A Development Stage Company)
                  Statements of Cash Flows
                    Year Ended March 31, 2006 and 2005
     And The Period From Inception (February 9, 2004) to March 31, 2006
<TABLE>
<CAPTION>
                                                       Years Ended         Inception to
                                                  March 31,    March 31,    March 31,
                                                    2006         2005         2005
                                                 ----------   ----------   ----------

                                                 <c>           <c>          <c>
SUPPLEMENTAL DISCLOSURES
  Cash paid for interest                         $   21,603   $        -   $   21,603
  Cash paid for income taxes                     $        -   $        -   $        -


Non-cash Investing and Financing Activities
Contribution of fixed assets to capital          $        -   $        -   $    5,000
Common stock subscriptions                       $        -   $        -   $   25,000
                                                 ==========   ==========   ==========
Conversion of preferred stock to common stock    $        -   $    3,000   $    3,000
</TABLE>



The accompanying notes are an integral part of the financial statements




<PAGE>28
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

MailTec, Inc. (the Company) was incorporated in the State of Nevada on
February 9, 2004 and has been in the development stage since its
inception.  The Company purpose is to raise capital and debt to develop
a mail services business.  The Company has selected March 31 as its
fiscal year end.

Use of Estimates

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes.  Actual
results could differ from those estimates.  On an ongoing basis,
management reviews those estimates, including those related to
allowances for doubtful accounts, loss contingencies for litigation,
income taxes, and projection of future cash flows used to assess the
recoverability of long-lived assets.

Reclassifications

Certain amounts presented in the previous year?s financial statements
have been reclassified to conform to the current year presentation.

Cash and Cash Equivalents

For purposes of balance sheet classification and the statements of cash
flows, the Company considers all highly liquid investments purchased
with an original maturity of three months or less to be cash
equivalents.

Furniture and Fixtures

Furniture and fixtures are stated at cost and are being depreciated
using the straight-line method over the assets? estimated economic
lives of 5 to 7 years.  Property and equipment consists of office
furniture and equipment with a cost of $5,400 less accumulated
depreciation of $2,125.


Financial Instruments

Fair value estimates discussed herein are based upon certain market
assumptions and pertinent information available to management as of
March 31, 2006. The respective carrying value of certain on-balance-
sheet financial instruments approximated their fair values. These
financial instruments include cash and accounts payable. Fair values

<PAGE>29
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

are assumed to approximate carrying values for these financial
instruments because they are short term in nature, or are receivable or
payable on demand, and their carrying amounts approximate fair value.
The carrying value of the Company?s long-term debt approximated its
fair value based on the current market conditions for similar debt
instruments.

Impairment of Long-Lived Assets

The Company periodically reviews the carrying amount of property and
equipment and its identifiable intangible assets to determine whether
current events or circumstances warrant adjustments to such carrying
amounts. If an impairment adjustment is deemed necessary, such loss is
measured by the amount that the carrying value of such assets exceeds
their fair value.  Considerable management judgment is necessary to
estimate the fair value of assets; accordingly, actual results could
vary significantly from such estimates.  Assets to be disposed of are
carried at the lower of their financial statement carrying amount or
fair value less costs to sell.  As of March 31, 2006, management
believes that there is no impairment of long-lived assets.

Revenue Recognition

Revenue from product sales are recognized when delivery has occurred,
persuasive evidence of an agreement exists, the vendor fee is fixed or
determinable, no further obligation exists and collectability is
probable.  Generally, title for these shipments passes on the date of
shipment.  Cost of products sold consists of the cost of raw materials
and labor related to the corresponding sales transaction.  When a right
of return exists, the Company defers revenues until the right of return
expires.

Revenue from services is recognized when service is completed.

Segment Information

The Company follows Statement of Financial Accounting Standards (SFAS)
131, ?Disclosure about Segments of an Enterprise and Related
Information?.  Certain information is disclosed, per SFAS 131, based on
the way management organizes financial information for making operating
decisions and assessing performance.  The Company currently operates in
one business segment and will evaluate additional segment disclosure
requirements if it expands operations.

Net (Loss) Per Common Share

The Company follows SFAS 128, ?Earnings Per Share?.  Basic earnings
(loss) per common share calculations are determined by dividing net
income (loss) by the weighted average number of shares of common stock
outstanding during the year.  Diluted earnings (loss) per common share

<PAGE>30
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006


calculations are determined by dividing net income (loss) by the
weighted average number of common shares and dilutive common share
equivalents outstanding.  During the periods when they are anti-
dilutive, common stock equivalents, if any, are not considered in the
computation.

Stock-Based Compensation

The Company accounts for stock based compensation in accordance with
SFAS 123, "Accounting for Stock-Based Compensation." The provisions of
SFAS 123 allow companies to either expense the estimated fair value of
stock options or to continue to follow the intrinsic value method set
forth in APB Opinion 25, "Accounting for Stock Issued to Employees"
(APB 25) but disclose the pro forma effects on net income  (loss) had
the fair value of the options been expensed. The Company has elected to
continue to apply APB 25 in accounting for stock options.

The Company has issued its common stock as compensation to non-
employees.  The Company measures the amount of stock-based compensation
based on the fair value of the equity instrument issued or the services
or goods provided as of the earlier of (1) the date at which an
agreement is reached with the non-employee as to the number of shares
to be issued for performance, or (2) the date at which the non-
employees? performance is complete.

Income Taxes

The Company follows SFAS 109 "Accounting for Income Taxes" for
recording the provision for income taxes. Deferred tax assets and
liabilities are computed based upon the difference between the
financial statement and income tax basis of assets and liabilities
using the enacted marginal tax rate applicable when the related asset
or liability is expected to be realized or settled. Deferred income tax
expenses or benefits are based on the changes in the asset or liability
each period. If available evidence suggests that it is more likely than
not that some portion or all of the deferred tax assets will not be
realized, a valuation allowance is required to reduce the deferred tax
assets to the amount that is more likely than not to be realized.
Future changes in such valuation allowance are included in the
provision for deferred income taxes in the period of change.

Recent Pronouncements

In November 2004, the Financial Accounting Standards Board (FASB)
issued SFAS 151 "Inventory Costs". This Statement amends the guidance
in ARB No. 43, Chapter 4, "Inventory Pricing, to clarify the accounting
for abnormal amounts of idle facility expense, freight, handling costs,
and wasted material (spoilage). In addition, this Statement requires
that allocation of fixed production overhead to the costs of conversion

<PAGE>31
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

be based on the normal capacity of the production facilities. The
provisions of this Statement will be effective for the Company
beginning with its fiscal year ending March 31, 2007. The Company is
currently evaluating the impact this new Standard will have on its
operations, but believes that it will not have a material impact on the
Company's financial position, results of operations or cash flows.

In December 2004, the FASB issued SFAS 153 "Exchanges of Non monetary
Assets - an amendment of APB Opinion No. 29". This Statement amended
APB Opinion 29 to eliminate the exception for non monetary exchanges of
similar productive assets and replaces it with a general exception for
exchanges of non monetary assets that do not have commercial substance.
A non monetary exchange has commercial substance if the future cash
flows of the entity are expected to change significantly as a result of
the exchange. The adoption of this Standard is not expected to have any
material impact on the Company's financial position, results of
operations or cash flows.

In December 2004, the FASB issued SFAS 123 (revised 2004) "Share-Based
Payment". This Statement requires that the cost resulting from all
share-based transactions be recorded in the financial statements. The
Statement establishes fair value as the measurement objective in
accounting for share-based payment arrangements and requires all
entities to apply a fair-value-based measurement in accounting for
share-based payment transactions with employees. The Statement also
establishes fair value as the measurement objective for transactions in
which an entity acquires goods or services from non-employees in share-
based payment transactions. The Statement replaces SFAS 123 "Accounting
for Stock-Based Compensation" and supersedes APB Opinion No. 25
"Accounting for Stock Issued to Employees". The provisions of this
Statement will be effective for the Company beginning with its fiscal
year ending March 31, 2007. The Company is currently evaluating the
impact this new Standard will have on its financial position, results
of operations or cash flows.

In March 2005, the Securities and Exchange Commission (SEC) issued
Staff  Accounting  Bulletin No.107 (SAB 107) which provides guidance
regarding the  interaction  of SFAS 123(R) and certain SEC rules and
regulations. The new guidance includes the SEC's view on the valuation
of share-based payment  arrangements for public companies and may
simplify some of SFAS 123(R)'s  implementation  challenges  for
registrants  and  enhance the information investors receive.

In August 2005, the FASB issued SFAS 154, Accounting Changes and Error
Corrections.  This statement applies to all voluntary changes in
accounting principle and to changes required by an accounting
pronouncement if the pronouncement does not include specific transition
provisions,  and it changes the  requirements for accounting for and
reporting them. Unless it is impractical, the statement requires
retrospective  application  of the changes to prior  periods'

<PAGE>32
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

financial statements. This statement is effective for accounting
changes and correction of errors made in fiscal years  beginning  after
December 15, 2005.

SFAS 155 ? ?Accounting for Certain Hybrid Financial Instruments?an
amendment of FASB Statements No. 133 and 140?

This Statement, issued in February 2006, amends FASB Statements No.
133, Accounting for Derivative Instruments and Hedging Activities, and
No. 140, Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities. This Statement resolves issues
addressed in Statement 133 Implementation Issue No. D1, ?Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets.?

This Statement:
a.   Permits fair value remeasurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would
require bifurcation
b.   Clarifies which interest-only strips and principal-only strips
are not subject to the requirements of Statement 133
c.   Establishes a requirement to evaluate interests in securitized
financial assets to identify interests that are freestanding
derivatives or that are hybrid financial instruments that contain an
embedded derivative requiring bifurcation
d.   Clarifies that concentrations of credit risk in the form of
subordination are not embedded derivatives
e.   Amends Statement 140 to eliminate the prohibition on a
qualifying special-purpose entity from holding a derivative
financial instrument that pertains to a beneficial interest other
than another derivative financial instrument.

This Statement is effective for all financial instruments acquired or
issued after the beginning of our first fiscal year that begins after
September 15, 2006.

The fair value election provided for in paragraph 4(c) of this
Statement may also be applied upon adoption of this Statement for
hybrid financial instruments that had been bifurcated under paragraph
12 of Statement 133 prior to the adoption of this Statement. Earlier
adoption is permitted as of the beginning of our fiscal year, provided
we have not yet issued financial statements, including financial
statements for any interim period, for that fiscal year. Provisions of
this Statement may be applied to instruments that we hold at the date
of adoption on an instrument-by-instrument basis.



<PAGE>33
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

The Company is currently reviewing the effects of adoption of this
statement but it is not expected to have a material impact on our
financial statements.

SFAS 156 ? ?Accounting for Servicing of Financial Assets?an amendment
of FASB Statement No. 140?

This Statement, issued in March 2006, amends FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities, with respect to the accounting for
separately recognized servicing assets and servicing liabilities. This
Statement:

1.   Requires an entity to recognize a servicing asset or servicing
liability each time it undertakes an obligation to service a
financial asset by entering into a servicing contract in certain
situations.
2.   Requires all separately recognized servicing assets and
servicing liabilities to be initially measured at fair value, if
practicable.
3.   Permits an entity to choose either the amortization method or
the fair value measurement method for each class of separately
recognized servicing assets and servicing liabilities.
4.   At its initial adoption, permits a one-time reclassification of
available-for-sale securities to trading securities by entities with
recognized servicing rights, without calling into question the
treatment of other available-for-sale securities under Statement
115, provided that the available-for-sale securities are identified
in some manner as offsetting the entity?s exposure to changes in
fair value of servicing assets or servicing liabilities that a
servicer elects to subsequently measure at fair value.
5.   Requires separate presentation of servicing assets and
servicing liabilities subsequently measured at fair value in the
statement of financial position and additional disclosures for all
separately recognized servicing assets and servicing liabilities.

Adoption of this Statement is required as of the beginning of the first
fiscal year that begins after September 15, 2006.  The adoption of this
statement is not expected to have a material impact on our financial
statements.


NOTE 2. GOING CONCERN

The accompanying financial statements have been prepared in conformity
with accounting principles generally accepted in the United States of
America, which contemplates continuation of the Company as a going
concern.

<PAGE>34
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

The Company has experienced losses from operations as a result of its
investment necessary to achieve its operating plan, which is long-range
in nature. For the year ended March 31, 2006, the Company incurred a
net (loss) of ($125,242).  At March 31, 2006, the Company had a working
capital (deficit) of ($2,845) and stockholders? (deficit) of
($169,772). In addition, the Company has no revenue generating
operations.

The Company?s ability to continue as a going concern is contingent upon
its ability to obtain capital or be party to an acquisition agreement.
The Company is reliant on advances from related parties to maintain
operations and is currently seeking acquisition candidates and capital.

The financial statements do not include any adjustments to reflect the
possible future effects on the recoverability and classification of
assets or the amounts and classification of liabilities that may result
from the possible inability of the Company to continue as a going
concern.


NOTE 3. STOCKHOLDERS' (DEFICIT)

Preferred Stock

The Company's Board of Directors has the authority to issue 4,000,000
shares of $0.001 par value preferred stock, in one or more series, with
such voting powers, designations, preferences and rights or
qualifications, limitations or restrictions as shall be stated in the
resolution or resolutions.  In the period inception to March 31, 2004,
1,000 share of 10 percent convertible preferred stock were issued for
$1,000.  During the year ended March 31, 2005, an additional 2,000 shares
were issued for $2,000. The combined 3,000 shares subsequently received
dividend payments of $225.  In January 2005, the 3,000 shares were
converted into 3,000 shares of the Company?s common stock.  No preferred
stock is outstanding at March 31, 2006.

Common Stock

The Company's Board of Directors has the authority to issue 10,000,000
shares of $0.001 par value common stock.  At inception 1,500,000 shares
of common stock were subscribed for by the Company?s founder for $10,000.
During the period inception to March 31, 2004, an investor subscribed for
20,000 shares for $15,000.  During the year ended March 31, 2005, cash of
$25,000 was received for these two subscriptions.

During the year ended March 31, 2005, 30,000 shares of commons stock were
issued for cash of $8,000.  25,000 shares were issued for financial
services valued at fair market value of $0.46 per share, $11,500.  An



<PAGE>35
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

additional 73,064 shares were issued for administrative services valued
at fair market value of $0.46 per share, $33,609.  The total stock based
compensation of $45,109 is reflected on the statement of operations.

The Company has filed a registration statement on Form SB-2 to register
the following:
Up to a Maximum of 1,250,000 Common Shares, 73,064 Common Shares to be
distributed to Shareholders of Oakwood Enterprises Corp. and 150,000
Common Shares on behalf of a selling security holder

The Company is registering 1,250,000 common shares for the aggregate
offering price of $3,125,000 or $2.50 per common share.

Oakwood Enterprises Corp., an unaffiliated corporation, proposes to
distribute as soon as practicable after the effective date of this
registration statement as a dividend to its shareholders of record at the
close of business on May 31, 2005, one common share for each 7.23 Oakwood
common share held by each Oakwood shareholder on the record date.

The offering will commence on the effective date of this prospectus and
will terminate on or before December 31, 2006. The selling security
holder offering will commence on the termination of the primary offering
and will terminate on or before December 31, 2007. The selling security
holder who is an officer, director and principal shareholder of MailTec,
will sell his common shares at prevailing market prices or privately
negotiated prices.

Contributions to Capital

During the period inception to March 31, 2004, the Company?s founder
contributed $5,000 of furniture, fixtures and equipment to the Company.

During the year ended March 31, 2005, the Company?s founder contributed a
$50,000 certificate of deposit to the Company to secure a loan.


NOTE 4. INCOME TAXES

The Company accounts for income taxes under SFAS 109, "Accounting for
Income Taxes?, which requires use of the liability method.  SFAS 109
provides that deferred tax assets and liabilities are recorded based on
the differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes, referred to as
temporary differences.  Deferred tax assets and liabilities at the end of
each period are determined using the currently enacted tax rates applied
to taxable income in the periods in which the deferred tax assets and
liabilities are expected to be settled or realized.



<PAGE>36
MAILTEC, INC.
(A Development Stage Company)
Notes to Financial Statements
March 31, 2006

The tax effects of temporary differences and net operating losses that
give rise to significant portions of deferred tax assets and liabilities
consisted of the following:

  Deferred tax assets (liabilities)
    Net operating loss carry forward                $  261,000
    Less valuation allowance                          (261,000)
                                                    ----------
  Net deferred tax asset                            $        -
                                                    ==========

The net operating loss of carryforward of approximately $261,000 will
expire through 2026. The deferred tax asset has been fully reserved as of
March 31, 2006.  The primary difference between book and tax loss is
stock compensation of $45,109.  The change in the valuation allowance for
the deferred tax asset during the year ended March 31, 2006 was $43,000.

NOTE 5. NOTES PAYABLE

During the year ended March 31, 2005, the Company executed a United
States Small Business Administration loan agreement (?SBA?).  The SBA
agreement provides for a $100,000 loan with a maturity of March 8, 2012,
with interest at Wall Street Journal Prime Rate plus 1.75 percent

Payments of principal and interest are $1,596 per month for 84 months.
The loan is secured by business assets and a $50,000 certificate of
deposit.   During the year ended March 31, 2006, the certificate of
deposit matured and the funds were used for working capital purposes.
Such use of the collateral without lender approval violates the security
agreement.

During the year ended March 31, 2005, the Company entered into a $138,000
loan agreement. The agreement provides for a $138,000 loan with a
maturity of February 1, 2010, with interest at Wall Street Journal Prime
Rate plus 1.75 percent.  Payments of principal and interest are $2,941
per month for 58 months, commencing May 1, 2005.  The loan is secured by
the assets of the Company and is guaranteed by the founder.

The two loans have the following maturities:

                                    Year        Amount
                                    ----        ------
                                    2007       $  38,366
                                    2008          41,711
                                    2009          46,159
                                    2010          47,981
                                    2011          17,233
                               Thereafter         17,618
                                               ---------
                                               $ 209,068
                                               =========

<PAGE>37

NOTE 6 RELATED PARTY TRANSACTIONS

During the year ended March 31, 2005, the founder of the Company
advanced $36,375 to the Company and was paid $36,375.  $97,135 was
taken in the form of compensation.

During the year ended March 31, 2006, the founder of the Company
advanced $60,450 to the Company and was paid $60,450.



<PAGE>38

(b)    List of Exhibits

The following exhibits are filed with this report:

  Exhibit 31 ? 302 certification
  Exhibit 32 - 906 certification


 (B)    REPORTS ON FORM 8-K
    none

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees.  We incurred aggregate fees and expenses of approximately
$12,395 from Stark Winter Schenkein and Co., LLP for the 2006 and 2005
fiscal years.  Such fees included work completed for our annual audits
and for the review of our financial statements included in our Form 10-
QSB.

Tax Fees. We did not incur any aggregate tax fees and expenses from
Stark Winter Schenkein and Co., LLP for the 2006 fiscal year for
professional services rendered for tax compliance, tax advice, and tax
planning.

All Other Fees. We did not incur any other fees from Stark Winter
Schenkein and Co., LLP during fiscal 2006.  The board of directors,
acting as the Audit Committee considered whether, and determined that,
the auditor's provision of non-audit services was compatible with
maintaining the auditor's independence.  All of the services described
above for fiscal year 2005 were approved by the Board of Directors
pursuant to its policies and procedures.  We intend to continue using
Stark Winter Schenkein and Co., LLP solely for audit and audit-related
services, tax consultation and tax compliance services, and, as needed,
for due diligence in acquisitions.




<PAGE>39

                  SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Corporation has duly caused this
Report to be signed on its behalf by the undersigned duly authorized
person.

Date:    July 13, 2006

MailTec, Inc.

/s/W. Ross C. Corace
------------------------------
By: W. Ross C. Corace, President

Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on
behalf of the Corporation and in the capacities and on the dates
indicated.
<TABLE>
<CAPTION>
MailTec, Inc.
(Registrant)
<S>                                                      <C>
By: /s/W. Ross C. Corace                   Dated: July 13, 2006
    -----------------------
    W. Ross C. Corace
    Director, Chief Executive Officer
    Chief Financial Officer, Controller


By: /s/Steven S. Martella                  Dated: July 13, 2006
    -----------------------
    Steven S. Martella
    Director

By: /s/Kenneth D. Barrett                  Dated: July 13, 2006
    -----------------------
    Kenneth D. Barrett
     Director
</TABLE>