UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                For the Quarterly Period Ended December 31, 2005

                                       or

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

                          Commission File Number 28541

                           QUINTEK TECHNOLOGIES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


        California                                            77-0505346
---------------------------------                          --------------------
(State or other jurisdiction                               (I.R.S. Employer
of incorporation or organization)                         Identification No.)

                               17951 Lyons Circle
                           Huntington Beach, CA 92647
                    ----------------------------------------
                    (Address of principal executive offices)

                   Registrant's telephone number: 714-848-7741

Check whether the registrant  (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the Securities  Exchange Act of 1934 during the preceding
12 months (or for such shorter  period that the  registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [X] No [ ]

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

At February 9, 2006, a total of 134,832,516 shares of registrant's Common Shares
were outstanding.

Transitional Small Business Disclosure Format: Yes [ ] No [X]



<PAGE>




                           QUINTEK TECHNOLOGIES, INC.
                                   FORM 10-QSB
                 For the Fiscal Quarter Ended December 31, 2005



Part I - Financial Information                                              Page

Item 1.  Financial Statements (Unaudited).                                   3

Item 2.  Management's Discussion and Analysis or Plan of Operations.        19

Item 3.  Controls and Procedures                                            21

Part II - Other Information

Item 1.  Legal Proceedings.                                                 22

Item 2.  Unregistered Sale of Equity Securities and Use of Proceeds         23

Item 3.  Defaults Upon Senior Securities                                    24

Item 4.  Submission of Matters to a Vote of Security Holders.               24

Item 5.  Other Information                                                  24

Item 6.  Exhibits.                                                          24



                                      -2-
<PAGE>
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
<CAPTION>
                   QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                             as of December 31, 2005

                                     ASSETS
<S>                                                                           <C>
Current assets:
  Cash and cash equivalents                                                   $     46,639
  Restricted Cash                                                                  255,291
  Accounts receivable, net of allowance for doubtful accounts of $7,929            265,756
  Prepaid expenses                                                                   8,754
                                                                              ------------
         Total current assets                                                      576,440

Property and equipment, net                                                        513,320

Other assets:
  Deposits                                                                         109,578
  Other assets                                                                         883
                                                                              ------------
                                                                                   110,461
                                                                              ------------
Total assets                                                                  $  1,200,221
                                                                              ============
                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Accounts payable and accrued expenses                                       $    923,144
  Factoring payable                                                                202,269
  Payroll and payroll taxes payable                                                318,351
  Payroll taxes assumed in merger                                                   96,661
  Advances from lenders                                                            155,419
  Current portion of long-term debt                                                467,367
  Convertible bonds                                                                 62,495
  Convertible debentures                                                           210,535
  Convertible notes                                                                 91,750
  Deferred revenue                                                                   2,021
  Dividend payable                                                                  24,604
                                                                              ------------
        Total current liabilities                                                2,554,617


Stockholders' deficit:
  Preferred stock, convertible, no par value, 50,000,000 shares authorized,
  3,154,750 shares issued and outstanding                                          681,605
  Common stock, $0.01 par value, 200,000,000 shares authorized,
  128,073,256 shares issued and outstanding                                      1,280,732
  Additional paid-in capital                                                    29,724,919
  Stock subscription receivable                                                   (776,250)
  Unamortized consulting                                                          (294,242)
  Unrealized gain on marketable securities                                         (79,741)
  Investments held in escrow                                                       (51,120)
  Accumulated deficit                                                          (31,840,298)
                                                                              ------------
        Total stockholders' deficit                                             (1,354,395)
                                                                              ------------
        Total liabilities and stockholders' deficit                           $  1,200,221
                                                                              ============
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                      -3-
<PAGE>
<TABLE>
<CAPTION>

                    QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

                                                          For the three months ended          For the six months ended
                                                                  December 31,                      December 31,
                                                             2005             2004             2005             2004
                                                        -------------    -------------    -------------    -------------
<S>                                                     <C>              <C>              <C>              <C>
Net revenue                                             $     535,521    $     322,413    $   1,228,880    $     436,679

Cost of revenue                                               346,808          271,773          826,432          356,253
                                                        -------------    -------------    -------------    -------------
Gross margin                                                  188,713           50,640          402,448           80,426

Operating expenses:
  Selling, general and administrative                         537,997        1,381,023        1,203,585        2,221,132
  Permanent decline on value of marketable securities            --          2,346,564             --          2,346,564
  Stock-based compensation                                    313,686           46,549          383,975          408,549
                                                        -------------    -------------    -------------    -------------
Total operating expenses                                      851,683        3,774,136        1,587,559        4,976,245
                                                        -------------    -------------    -------------    -------------
Loss from operations                                         (662,969)      (3,723,496)      (1,185,112)      (4,895,819)

Non-operating income (expense):
  Realized gain on investment                                    --               --            113,700             --
  Other income                                                  2,959            2,853            9,631            6,178
  Loss on conversion of debt                                     --           (667,570)            --           (667,570)
  Uncollectible from former officers                           (2,409)            --             (5,026)            --
  Beneficial conversion feature                               (44,159)            --            (96,966)            --
  Interest Income                                               1,344             --              2,667             --
  Interest expense                                            (31,770)         (35,330)        (175,036)         (60,773)
                                                        -------------    -------------    -------------    -------------
Total non-operating income (expense)                          (74,034)        (700,047)        (151,030)        (722,164)
                                                        -------------    -------------    -------------    -------------
Loss before provision for income taxes                       (737,004)      (4,423,543)      (1,336,141)      (5,617,984)

Provision for income taxes                                       --               --                800              800
                                                        -------------    -------------    -------------    -------------
Net loss                                                     (737,004)      (4,423,543)      (1,336,941)      (5,618,784)

Dividend requirement for preferred stock                        4,015            5,066            8,029            7,879
                                                        -------------    -------------    -------------    -------------
Net loss applicable to common shareholders                   (741,019)      (4,428,609)      (1,344,970)      (5,626,663)

Other comprehensive (loss)/gain:
Reclassification adjustment                                      --               --             (4,080)            --
Unrealized gain for the period                                (19,590)            --              9,317             --
                                                        -------------    -------------    -------------    -------------
Comprehensive loss                                      $    (760,609)   $  (4,428,609)   $  (1,339,733)   $  (5,626,663)
                                                        =============    =============    =============    =============

Basic and diluted net loss per share                    $       (0.01)   $       (0.06)   $       (0.01)   $       (0.08)

Basic and diluted net loss per share for dividend
  for preferred stock                                   $        0.00    $        0.00    $        0.00    $        0.00

Basic and diluted net loss per share applicable to
                                                        -------------    -------------    -------------    -------------
  common shareholders                                   $       (0.01)   $       (0.06)   $       (0.01)   $       (0.08)
                                                        =============    =============    =============    =============
Basic and diluted weighted average
   shares outstanding                                     122,264,778       74,506,311      111,580,803       66,423,928
                                                        =============    =============    =============    =============
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                      -4-
<PAGE>

<TABLE>
<CAPTION>
            QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                        Six-month periods ended
                                                                             December 31,
                                                                         2005           2004
                                                                      -----------    -----------
       OPERATING ACTIVITIES
<S>                                                                   <C>            <C>
   Net loss                                                           $(1,336,941)   $(5,618,784)
   Adjustments to reconcile net loss
    to net cash used in operations:
      Depreciation and amortization                                        85,540         72,026
      Discount on factor                                                    4,796           --
      Expenses paid by a note payable                                      36,478           --
      Issuance of shares for consulting services                          238,697        550,758
      Loss on conversion of debt                                             --          667,570
      Shares issued for compensation                                         --          170,000
      Issuance of shares for officer compensation                            --          427,500
      Permanent decline on value of marketable securities                    --        2,346,564
      Gain on the sale of the investment                                 (113,700)          --
      Beneficial conversion feature expense                                96,966           --
      Amortization of the Unamortized discount                             77,489           --
      Stock options granted                                                  --            1,500
      Warrants granted to consultant                                      206,798        589,602
      Changes in current assets and liabilities:
         (Increase) decrease in accounts receivable                        49,522       (174,170)
         (Increase) in other current assets                                  --          (37,849)
         (Increase) in prepaid expenses                                    (3,192)          --
         Increase in accounts payable                                     121,788        120,395
         Increase in payroll taxes payables                               116,696           --
         (Decrease) in deferred revenue                                   (23,056)          --
         Increase in dividends payable                                       --            7,879
         Increase in other liablilities                                      --           51,823
                                                                      -----------    -----------
   Net cash used in operating activities                                 (442,120)      (825,185)
                                                                      -----------    -----------

INVESTING ACTIVITIES
   Acquisition of equipment                                               (13,429)      (178,181)
   Proceeds from sale of marketable securities                            238,018           --
   (Increase) in restricted cash                                           (2,666)          --
                                                                      -----------    -----------
   Net cash provided by investing activies                                221,923       (178,181)
                                                                      -----------    -----------

FINANCING ACTIVITIES
   Payments on factoring payable                                          (95,279)       (93,492)
   Proceeds from factor                                                   155,816           --
   Proceeds from line of credit                                              --          250,000
   Payments on leases                                                     (60,620)          --
   Proceeds from issuance of debentures                                      --          425,000
   Proceeds from convertible notes                                           --          170,000
   Cash received for shares to be issued                                     --           25,000
   Proceeds from sale of stocks                                            80,000           --
   Prepayments for exercise of warrants                                   125,000           --
   Proceeds from issuance of common stock upon exercise of warrants        59,400        229,967
   Payments of notes payable                                              (10,150)       (14,657)
                                                                      -----------    -----------
Net cash provided by financing activities                                 254,167        991,818
                                                                      -----------    -----------

Net increase (decrease) in cash and cash equivalents                       33,970        (11,548)
Cash and cash equivalents, beginning balance                               12,669         15,600
                                                                      -----------    -----------
Cash and cash equivalents, ending balance                             $    46,639    $     4,052
                                                                      ===========    ===========
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                      -5-
<PAGE>

                   QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


1. DESCRIPTION OF BUSINESS

Quintek  Technologies,   Inc.  and  Subsidiaries  (referred  to  herein  as  the
"Company", "Quintek", "Our", or "We") is a California corporation.

Quintek Electronics,  Inc., the predecessor company was founded in July 1991. On
January 14, 1999, Quintek Electronics,  Inc. was acquired in a merger by Pacific
Diagnostics  Technologies,  Inc. and the surviving  entity's name was changed to
Quintek Technologies, Inc. On February 24, 2000, the Company acquired all of the
outstanding   shares  of  common  stock  of  Juniper   Acquisition   Corporation
("Juniper").  Upon effectiveness of that acquisition,  Quintek elected to become
the successor  issuer to Juniper for  reporting  purposes  under the  Securities
Exchange Act of 1934.

Quintek  provides  back office  services and  solutions to improve  efficiencies
within     organizations.     The    Company     accomplishes    this    through
out-sourcing/in-sourcing  services,  consulting  services  and  solution  sales.
Quintek, through its wholly owned subsidiaries Quintek Services, Inc. (QSI), and
Sapphire Consulting  Services,  Inc. provides services to enable Fortune 500 and
Global 2000 corporations to reduce costs and maximize revenues.


2. BASIS OF PRESENTATION

The accompanying unaudited financial statements of Quintek have been prepared in
accordance  with the  rules  and  regulations  of the  Securities  and  Exchange
Commission for the  presentation of interim  financial  information,  but do not
include  all the  information  and  footnotes  required  by  generally  accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management,  the  accompanying  unaudited  financial  statements  of the Company
include  all  adjustments  (consisting  only of  normal  recurring  adjustments)
considered necessary to present fairly its financial position as of December 31,
2005,  the  results of  operations  for the three  months  and six months  ended
December 31, 2005 and 2004, and cash flows for the six months ended December 31,
2005 and 2004.  The  operating  results for the three month and six month period
ended December 31, 2005 are not  necessarily  indicative of the results that may
be expected for the year ending June 30, 2006. The audited financial  statements
for the year  ended  June 30,  2005  were  filed on  October  13,  2005 with the
Securities and Exchange  Commission and is hereby  referenced.  The  information
included in this Form 10-QSB  should be read in  conjunction  with  Management's
Discussion and Analysis and financial  statements and notes thereto  included in
the Company's 2005 Form 10-KSB.

Use of estimates
----------------

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

                                      -6-
<PAGE>

Research and development
------------------------

Research and  development  costs are charged to operations when incurred and are
included in operating  expenses.  The amount charged to operations for the three
months and six months ended December 31, 2005 was $0 as compared to $73 and $327
for the same periods in 2004, respectively.

Marketable securities and realized loss due to decline in market value
----------------------------------------------------------------------

On July 29,  2004,  the Company  entered  into an  Agreement  with  Langley Park
Investments Plc, a London  Investment  Company to issue 14,000,000 shares of the
Company's  common  stock to Langley in return for  1,145,595  shares of Langley.
Fifty percent of Langley shares issued to the Company under this agreement is to
be held in escrow for two years. At the end of two years if the market price for
the Company's  common stock is at or greater than the Initial Closing Price, the
escrow agent will  release the full  amount.  In the event that the market price
for the Company's common stock is less than the Initial Closing Price the amount
released will be adjusted. At December 31, 2005, the Company recorded unrealized
loss of $80,681  for the  potential  adjustment  relating  to the decline in the
value of the Company's common stocks.

Langley  attained  listing  with  the  United  Kingdom  Listing  Authority.  The
Company's  shares are to be held by Langley  for a period of at least two years.
Langley shares issued to the Company are to be free trading.

The  Company's  marketable  securities  (Langley's  shares)  are  classified  as
available-for-sale   and,  as  such,  are  carried  at  fair  value.  Securities
classified as available-for-sale  may be sold in response to changes in interest
rates,  liquidity  needs,  and for other purposes.  The investment in marketable
securities  represents less than twenty percent (20%) of the outstanding  common
stock  and  stock  equivalents  of the  investee.  As such,  the  investment  is
accounted for in accordance with the provisions of SFAS No. 115.

Unrealized holding gains and losses for marketable  securities are excluded from
earnings and reported as a separate component of stockholder's equity.  Realized
gains and losses for securities classified as available-for-sale are reported in
earnings based upon the adjusted cost of the specific security sold. On December
31, 2005, the investments  have been recorded as shown below based upon the fair
value of the marketable securities.

Marketable securities consisted of the following as of December 31, 2005:
<TABLE>
<CAPTION>
                                                          Market           Accum.         Number of
         Investee Name                Cost               Value at        Unrealized     Shares Held at
            (Symbol)                                December 31, 2005       Gain       December 31, 2005
---------------------------------------------------------------------------------------------------------
<S>                                <C>                 <C>                  <C>             <C>
Marketable securities:
Langley Park Investments, PLC
Investments held in escrow:
 Langley Park Investments, PLC     $ 1,330,000         $  131,801           $     940       572,798
Reserve for potential loss                                (80,681)            (80,681)
                                -------------------------------------------------------------------------
      Totals                       $ 1,330,000         $   51,120           $ (79,741)      572,798
                                =========================================================================
</TABLE>
For the six months ended December 31, 2005, the Company sold 544,158  marketable
securities in Langley Park investment for $147,017, realizing a gain of $24,300.
The Company sold  1,750,000  shares held in PanaMed for $89,400,  which had been
impaired in a previous period for a realized gain of $89,400.

                                      -7-
<PAGE>
Stock-based compensation
------------------------

SFAS No. 123 prescribes  accounting and reporting  standards for all stock-based
compensation plans, including employee stock options, restricted stock, employee
stock  purchase  plans and stock  appreciation  rights.  SFAS No.  123  requires
compensation  expense to be recorded (i) using the new fair value method or (ii)
using the existing  accounting rules  prescribed by Accounting  Principles Board
Opinion No. 25,  "Accounting for stock issued to employees" (APB 25) and related
interpretations  with  pro-forma  disclosure of what net income and earnings per
share would have been had the Company  adopted  the new fair value  method.  The
Company  has chosen to account for  stock-based  compensation  using  Accounting
Principles Board Opinion No. 25,  "Accounting for Stock Issued to Employees" and
has  adopted  the  disclosure   only   provisions  of  SFAS  123.   Accordingly,
compensation  cost for stock  options is measured as the excess,  if any, of the
quoted  market  price of the  Company's  stock at the date of the grant over the
amount an employee is required to pay for the stock.

The  Company's  board  of  directors  authorized  a stock  award  and  long-term
incentive  plan which  includes  stock  appreciation  rights and  certain  stock
incentive awards. The plan was approved by the shareholders as of June 30, 2004.

Basic and diluted net loss per share
------------------------------------

Net loss per share is calculated  in accordance  with the Statement of financial
accounting  standards No. 128 (SFAS No. 128), "Earnings per share". SFAS No. 128
superseded  Accounting  Principles  Board  Opinion  No.15 (APB 15). Net loss per
share for all periods  presented  has been  restated to reflect the  adoption of
SFAS No. 128. Basic net loss per share is based upon the weighted average number
of  common  shares  outstanding.  Diluted  net  loss  per  share is based on the
assumption that all dilutive convertible shares and stock options were converted
or exercised.  Dilution is computed by applying the treasury stock method. Under
this method,  options and warrants are assumed to be exercised at the  beginning
of the period (or at the time of issuance,  if later),  and as if funds obtained
thereby were used to purchase  common  stock at the average  market price during
the period.

Deferred revenue
----------------

Deferred revenue  represents  amounts received from the customers against future
sales of goods or services.  Deferred  revenue amounted to $2,021 as of December
31, 2005.

Issuance of shares for service
------------------------------

The Company accounts for the issuance of equity instruments to acquire goods and
services  based on the fair value of the goods and services or the fair value of
the  equity  instrument  at the time of  issuance,  whichever  is more  reliably
measurable.

Reporting segments
------------------

Statement of financial  accounting standards No. 131, Disclosures about segments
of an  enterprise  and related  information  (SFAS No.  131),  which  superseded
statement of financial  accounting  standards  No. 14,  Financial  reporting for
segments of a business enterprise, establishes standards for the way that public
enterprises  report  information  about operating  segments in annual  financial
statements  and  requires  reporting  of selected  information  about  operating
segments  in interim  financial  statements  regarding  products  and  services,

                                      -8-
<PAGE>

geographic areas and major customers. SFAS No. 131 defines operating segments as
components  of an  enterprise  about which  separate  financial  information  is
available that is evaluated  regularly by the chief operating  decision maker in
deciding how to allocate  resources  and in assessing  performances.  Currently,
SFAS 131 has no effect on the Company's  financial  statements as  substantially
all of the Company's operations are conducted in one industry segment.

Reclassifications
-----------------

Certain  comparative  amounts have been  reclassified  to conform to the current
period presentation.

Recent Pronouncements
---------------------

In  December  2002,  the FASB issued  SFAS No. 148  "Accounting  for Stock Based
Compensation-Transition  and  Disclosure".  SFAS No.  148 amends  SFAS No.  123,
"Accounting for Stock Based  Compensation",  to provide  alternative  methods of
transition  for a voluntary  change to the fair value based method of accounting
for stock-based employee  compensation.  In addition,  this Statement amends the
disclosure  requirements  of Statement 123 to require  prominent  disclosures in
both annual and interim financial  statements about the method of accounting for
stock-based employee compensation and the effect of the method used, on reported
results.  The Statement is effective for the Companies' interim reporting period
ending January 31, 2003.

In  compliance  with FAS No. 148,  the Company has elected to continue to follow
the  intrinsic  value  method  in  accounting  for  its   stock-based   employee
compensation  plan  as  defined  by APB  No.  25 and  has  made  the  applicable
disclosures below.

Had the Company  determined  employee stock based  compensation  cost based on a
fair value  model at the grant date for its stock  options  under SFAS 123,  the
Company's  net  earnings  per share  would have been  adjusted  to the pro forma
amounts for the six month period ended December 31, 2005 and 2004, as follows ($
in thousands, except per share amounts):

                                                 Period ended December 31,
                                                    2005           2004
                                               -------------     -----------

     Net loss - as reported                    $    (1,337)       $  ( 5,619)

     Stock-Based employee compensation
       expense included in reported net
       income, net of tax                             --               --

     Total stock-based employee
       compensation expense determined
       under fair-value-based method for
       all rewards, net of tax                        (13)            (362)
                                               -------------     -----------
     Pro forma net loss                        $     (1,350)     $ ( 5,981)
                                               =============     ===========
    (Loss) per share:

     Basic, as reported                        $    (0.01)       $   (0.08)
     Diluted, as reported                      $    (0.01)       $   (0.08)
     Basic, pro forma                          $    (0.01)       $   (0.09)
     Diluted, pro forma                        $    (0.01)       $   (0.09)

                                      -9-
<PAGE>

In December 2004, the FASB issued FASB Statement No. 123R, "Share-Based Payment,
an Amendment of FASB Statement No. 123" ("FAS No. 123R").  FAS No. 123R requires
companies to recognize in the statement of operations  the grant date fair value
of stock options and other equity-based  compensation  issued to employees.  FAS
No. 123R is effective  beginning in the Company's second quarter of fiscal 2006.
The Company  believes  that the adoption of this  standard will have no material
impact on its financial statements.

In May 2005, the FASB issued SFAS No. 154, entitled Accounting Changes and Error
Corrections--a  replacement of APB Opinion No. 20 and FASB Statement No. 3. This
Statement  replaces APB Opinion No. 20, Accounting  Changes,  and FASB Statement
No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes
the  requirements for the accounting for and reporting of a change in accounting
principle.  This  Statement  applies  to all  voluntary  changes  in  accounting
principle. It also applies to changes required by an accounting pronouncement in
the unusual instance that the pronouncement does not include specific transition
provisions.  Opinion  20  previously  required  that most  voluntary  changes in
accounting  principle be  recognized by including in net income of the period of
the change the cumulative  effect of changing to the new  accounting  principle.
This Statement  requires  retrospective  application to prior periods' financial
statements of changes in accounting  principle,  unless it is  impracticable  to
determine  either the  period-specific  effects or the cumulative  effect of the
change. This Statement defines retrospective application as the application of a
different  accounting principle to prior accounting periods as if that principle
had  always  been  used or as the  adjustment  of  previously  issued  financial
statements  to reflect a change in the reporting  entity.  This  Statement  also
redefines  restatement as the revising of previously issued financial statements
to reflect the  correction of an error.  The adoption of SFAS 154 did not impact
the consolidated financial statements.

In June 2005,  the EITF reached  consensus on Issue No.  05-6,  Determining  the
Amortization Period for Leasehold  Improvements ("EITF 05-6") EITF 05-6 provides
guidance on  determining  the  amortization  period for  leasehold  improvements
acquired in a business  combination or acquired  subsequent to lease  inception.
The guidance in EITF 05-6 will be applied  prospectively  and is  effective  for
periods  beginning  after June 29,  2005.  EITF 05-6 is not  expected  to have a
material effect on its consolidated financial position or results of operations.


3. PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2005 consists of the following:

       Scanning Equipment              $ 461,836
       Computer and office equipment     138,083
       Other depreciable assets          102,881
       Software                          194,523
       Furniture and fixture              40,653
                                       ---------
                                         937,976
       Accumulated depreciation         (424,656)
                                       ---------
                                       $ 513,320
                                       =========


4. RESTRICTED CASH

The  Company  entered  into a service  agreement  with GMAC under which they are
required  to provide at their own cost a  performance  bond.  Such bond shall be
solely for the  protection  of the client.  The initial  bond was drafted in the
amount of $250,000 and will cover 12 months  starting  October 1, 2004 and renew
annually.
                                      -10-
<PAGE>

The Company  opened a certificate  of deposit for $250,000 in October 2004.  The
Company has accrued  interest income of $2,667 for the six months ended December
31,  2005.  The  Company  has  recorded  $255,291  as  restricted  cash  in  the
accompanying balance sheet as of December 31, 2005.

5. EMPLOYEE RECEIVABLES

Employee receivables as of December 31, 2005, consist of the following:

Notes receivable from employees, unsecured,
   due on June 30, 2019, interest at 4%         $ 261,454

Interest receivable in connection with
   above notes receivable                          32,729
                                                ---------
                                                  294,183
Valuation allowance                              (294,183)
                                                ---------
                                                 $   -
                                                =========

6. FACTORING PAYABLE

The  Company has  entered  into an  agreement  with a  factoring  company  ("the
Factor") to factor  purchase  orders with recourse.  The Factor funds 97% or 90%
based upon the status of the purchase  order.  The Factor has agreed to purchase
up to $4,800,000 of qualified  purchase  orders over the term of the  agreement;
however,  the Factor does not have to purchase  more than  $200,000 in any given
month. The agreement term is from June 2, 2003 to June 2, 2005. The Company will
pay a late fee of 3% for  payments  not made within 30 days and 5% for those not
made in 60 days.  At the  option of the  Factor,  the late fees may be paid with
Company stock. If paid by Company stock,  the stock bid price will be discounted
50% in computing the shares to be issued in payment of the late fee.

The Company issued the Factor 1,500,000 warrants  purchasing the Company's stock
as a fee for the factoring agreement. The stock issued under the warrants can be
purchased at the average  closing price of the  Company's  stock for the 90 days
prior to the factoring agreement.

The Company will also issue the Factor bonus  warrants.  The Factor will receive
two (2) bonus warrants for each dollar of purchase orders  purchased.  The bonus
warrants  will be  exercisable  at the average  closing  price of the  Company's
common  stock for the 90 days  prior to the  purchase  order  transactions  they
represent or a 50% discount to the closing price of the  Company's  stock at the
time  exercised at the option of the Factor.  Both  warrants are for a five year
period.

There were no purchases of purchase  orders during the six months ended December
31, 2005. At December 31, 2005, the Company had a factoring  payable  balance of
$136,721  associated with this factor.  The Company accrued $72,328 for interest
for late payments of factoring payables as of December 31, 2005.

During the six months  ended  December  31,  2005,  the Company  entered into an
agreement  to  factor  $160,612  of  qualified  invoices  for a cash  remittance
$155,816.  As of December 31, 2005, the Company had a factoring  payable balance
of $65,548  associated with this factor. The Company recorded $4,796 as interest
expense in the accompanying financial statements as of December 31, 2005.

                                      -11-
<PAGE>

7. PAYROLL TAXES-ASSUMED IN MERGER

The  Company  assumed  $205,618 of payroll  tax  liabilities  in the merger with
Pacific  Diagnostic  Technologies,  Inc. The balance was $96,661 at December 31,
2005. The Company is delinquent on payments of these payroll tax liabilities.


8. LONG TERM DEBT

 Loans payable,  interest at 7.9% to 20%, due various dates
  in 2005 to   2008 (the company is in default for these
  loans)                                                       $ 321,437
 Loan payable, interest at 17.8%, due 2007                        24,172
 Notes payable, non-interest bearing                              55,000
  (the company is in default on this note)
 Note payable, interest at 5.75%, due July 30, 2006
  (the company is in default and the default interest is 12%)     33,438
 Note payable, interest at 15.99%, due June & July 2006              622
 Notes payable, interest at 8%, due 2006
  (the company is in default on this note)                        31,080
 Note payable, monthly installments $404, due July 2005
  (the company is in default on this note                          1,618
    and classified it as current liability)

                                                               ----------
                                                                $ 467,367
                                                               ==========

9. ADVANCES FROM LENDER

On August 2, 2004, the Company signed a convertible  debenture agreement with an
accredited  investor  whereby  the  Company  has  received  an advance  totaling
$855,000 for prepayment of warrants to be exercised as of December 31, 2005. The
agreement  expires on August 2, 2006.  The  accredited  investor  has  exercised
699,581  warrants into common shares valued at $699,581 as of December 31, 2005.
The  remaining  balance of $155,419  is recorded as advances  from lender in the
accompanying  financial  statements  as of December 31, 2005.  In addition,  the
holders  exercised  warrants to purchase  25,000  shares for cash at an exercise
price of $1.00 per share.


10. CONVERTIBLE BONDS

Bonds payable with interest at 9%, due on various dates in 2001 and 2002,
 convertible to shares of common stock in
 increments of $1,000 or more.                                       $ 21,354

Bonds payable with interest at 12%, due July 2002, convertible to shares of
common stock in increments
of $500 or more.                                                       41,141
                                                                    ---------
                                                                    $  62,495
                                                                    =========

Certain of the  outstanding  convertible  bonds have matured as of July 2001 and
October  2001.  The holders of the matured  bonds do not wish to renew the bonds
and have asked for payment; however, the Company does not have the cash to repay
these  bonds.  The Company has recorded  the $62,495 as  convertible  bonds as a
current  liability in the accompanying  financial  statements as of December 31,
2005.

                                      -12-
<PAGE>

11. CONVERTIBLE DEBENTURES

The Company  raised  $300,000  through the  issuance of  convertible  debentures
during the year ended June 30, 2005. The term of the convertible  debentures are
as follows:  pursuant  to the terms of  conversion,  debenture  in the amount of
$300,000  pays  interest at 5 3/4% and includes  3,000,000  warrants to purchase
common  stock for a period of three years at the  exercise  price of $1.00.  The
"Conversion Price" shall be equal to the lesser of (i) $0.50, or (ii) 75% of the
average of the 5 lowest  Volume  Weighted  Average  Prices during the 20 trading
days prior to Holder's election to convert,  or (iii) 75% of the Volume Weighted
Average Price on the trading day prior to the Holders election to convert market
price of the Company's common stock prior to conversion.  Upon conversion of the
debenture, the holder is obligated to simultaneously exercise the $1.00 warrants
providing  added  funding  to  the  Company.   The  warrant  must  be  exercised
concurrently  with the  conversion  of this  debenture in an amount equal to ten
times the dollar  amount of the  Debenture  conversion.  Upon  execution  of the
securities purchase  agreement,  $225,000 of the purchase price was due and paid
to the  Company.  The  remaining  $75,000 was paid to the Company on February 7,
2005 upon effectiveness of the Securities and Exchange Commission's Registration
Statement.  As of  December  31,  2005,  the Holder of the  debenture  converted
$72,522 of the debenture amount into 10,491,463 common shares of the Company and
exercised 724,581 warrants.

The Company  allocated the proceeds  from the debenture  between the warrant and
the debt based on relative fair value of the warrant and the debt.  The value of
the warrant was  calculated  using the  Black-Scholes  model using the following
assumptions:  Discount rate of 3.4%, volatility of 100% and expected term of one
year. The amount allocated to the warrant of $20,348 is being amortized over the
term of the debt.  The Company  calculated  a beneficial  conversion  feature of
$279,652.  The Company amortized the beneficial conversion feature in accordance
with the  conversion  terms of the note. At December 31, 2005,  the  convertible
debenture of $227,479 is presented in the accompanying  financial statements net
of the  unamortized  beneficial  conversion  feature of $13,959 and  unamortized
discount arising from the warrant of $2,985.

Pursuant to addendums to the  securities  purchase  agreement  dated February 3,
2005,  March 30, 2005,  and August 30, 2005,  the Company  delivered  12,500,000
common shares to an escrow agent in  accordance  to the terms of the  agreement.
Such  shares may only be  released  by valid  debenture  conversion  and warrant
exercise  notices  submitted  to the Company by the Holder.  As of December  31,
2005, 3,000,000 common shares remain in the escrow account.

12. CONVERTIBLE NOTE

The Company  raised  capital  through the  issuance  of a  convertible  note for
$500,000  issued during the year ending June 30, 2004. The note plus any accrued
interest is convertible to the Company common shares at $0.06 but limited to 10%
of the outstanding  shares at the time of conversion.  Additionally,  the holder
will receive one bonus  warrant for each  conversion  share.  Each bonus warrant
will be  exercisable  for a period of 5 years from the date of issuance into one
share of common  shares at a price of $0.10.  The Company  has issued  6,804,164
common  shares on the  conversion  of  $408,250  of the  convertible  note.  The
convertible  note balance as of December 31, 2005 is $91,750.  The total accrued
interest on the convertible note amounted to $56,884 as of December 31, 2005.

                                      -13-
<PAGE>

13. STOCKHOLDERS' DEFICIT

a. Common Stock and Warrants

The Company has  authorized  200 million shares of common stock with a par value
of $0.01 per share.  Each share  entitles  the holder to one vote.  There are no
dividend or liquidation preferences, participation rights, call prices or rates,
sinking  fund  requirements,  or unusual  voting  rights  associated  with these
shares.

During the six month period ended  December 31, 2005, the Company issued 477,778
common shares upon exercise of warrants and received cash  amounting to $34,400;
4,400,000  common shares to  consultants  for services to be rendered  valued at
$529,818  recorded  as  unamortized  consulting;  $238,697  of  the  unamortized
consulting had been amortized and recognized as an expense; 50,000 common shares
to consultant for services  rendered  valued at $8,000  recorded as shares to be
issued in June 30, 2005, these warrants were recorded in previous year as shares
to be issued.;  2,000,000  common shares to an  accredited  investor for a stock
sale and  collected  $80,000  in cash;  16,500,000  common  shares  issued to an
accredited investor for sale of stock valued at $776,250 pending receipt of cash
recorded as a stock subscription  receivable;  495,495 common shares pursuant to
conversion of debentures and exercise of warrants to the escrow agent; 5,000,000
common  shares  pursuant to an addendum to a  convertible  debenture  to a joint
escrow agent upon which shares can only be released  pursuant to valid debenture
conversion and warrant exercise.  During the six months ending December 31, 2005
$29,021  of the  debenture  were  converted  for  5,465,365  common  shares  and
exercises of warrants to purchase  289,581 common shares at an exercise price of
$1 per share;  250,000 common shares for conversion of Series A Preferred  stock
valued  at  $40,000;  and  160,000  common  shares  for  conversion  of Series B
Preferred stock valued at $30,400.

During the six months  ended  December 31, 2005,  the Company  issued  1,292,180
warrants  in  connection  with an  investment  banking  agreement.  The  Company
recorded  $106,672  as expense  for the cost of the  issuance  of such  warrants
during the six month period ended  December 31, 2005. An  additional  expense of
$38,607 as of December 31, 2005 was  recorded for 305,573  warrants to be issued
pursuant to the terms of the investment banking agreement  referenced above. The
fair  value  of  the   warrants  is  estimated  on  the  grant  date  using  the
Black-Scholes  Model.  The following  assumptions  were made in estimating  fair
value.

Annual rate of quarterly dividends                            0.00%
Discount rate - Bond Equivalent Yield                         3.40%
Expected life                                               5 years
Expected volatility                                     90% to 100%

During the six months ended December 31, 2005, the Company  recorded $61,519 for
the  warrants  to be issued  for the  factor for the  purchase  of the  purchase
orders.

                                      -14-
<PAGE>

b. Common Stock Reserved

At December 31,  2005,  the Company  reserved  Common  Shares for the  following
reasons:

Outstanding convertible bonds                151,918 shares

Outstanding of warrants

                                                Number
                                                  of
                                               Warrants
Warrants                                       ---------

 Outstanding June 30, 2005                    15,206,857
 Issued during the period                      1,292,180
 Expired                                      (1,055,000)
 Exercised                                      (767,359)
                                               ---------
 Outstanding December 31, 2005                14,676,678
 Warrants to be issued                         8,218,501
                                              ----------
 Total outstanding                            22,895,179
                                              ==========

c. Stock Option Agreements

The number  and  weighted  average  exercise  prices of  options  granted by the
Company are as follows:

                                                               Weighted
                                              Number           average
                                                of             exercise
                                              Options          price
                                             ---------         ---------
Options
Outstanding June 30, 2005                    9,470,317           $0.93


Granted                                        312,000            0.10
Exercised                                          -              0.00
Expired/forfeited                             (400,000)           0.15
                                             ---------         ---------

Outstanding December 31, 2005                9,382,317            $ 0.93
                                             =========         ---------



The total  outstanding  options of 9,382,317 are  exercisable as of December 31,
2005.

d. Stock transactions approved by the shareholders

At  the  Annual  Meeting  of  the  shareholders  held  on  June  30,  2004,  the
shareholders  approved by a majority  vote to increase  to  200,000,000  shares,
$0.01 par value common  stock,  and  50,000,000  shares no par value,  preferred
stock  which  the  corporation  shall  have  authority  to  issue.  The board of
directors is authorized to divide the preferred stock into any number of classes
or series, fix the designation and number of shares of each such series or class
and alter or determine the rights,  preferences,  privileges and restrictions of
each or series of preferred stock

                                      -15-
<PAGE>

Series A Preferred Stock

The general terms of the Series A Preferred  Stock is as follows:  No par value;
Liquidation  Preference - $0.25 per share plus any unpaid accumulated dividends;
Dividends -  cumulative  annual rate of $0.005 per share when and as declared by
the Board of Directors; Conversion Rights - convertible to common stock at a 1:1
ratio ;  Redemption  Rights - the Company has the right to redeem part or all of
the stock  upon 30 days  written  notice  at a rate of $0.25 per share  plus all
accumulated and unpaid dividends thereon at the dividend rate of $0.005 annually
per  share;  Voting  Rights  - one  vote  per  share  on all  matters  requiring
shareholder  vote.  At December 31, 2005,  the Company had  3,047,531  shares of
Series A  Preferred  stock  outstanding  valued at  $526,506.  The  Company  has
recorded  a   cumulative   dividend  of  $24,447  for  the  Series  A  Preferred
stockholders as of December 31, 2005 in the accompanying financial statements.

Series B Preferred Stock

The general terms of the Series B Preferred  Stock is as follows:  No par Value;
Liquidation  Preference - $0.25 per share plus any unpaid accumulated dividends;
Dividends - cumulative  annual rate of $0.0005 per share when and as declared by
the Board of Directors; Conversion Rights - convertible to common stock at a 1:5
ratio (i.e. 1 share of Series B Preferred stock is convertible  into 5 shares of
common stock);  Redemption  Rights - the Company has the right to redeem part or
all of the stock upon 30 days  written  notice at a rate of $0.25 per share plus
all  accumulated  and unpaid  dividends  thereon at the dividend rate of $0.0005
annually per share;  Voting Rights - one vote per share on all matters requiring
shareholder  vote. At December 31, 2005, the Company had 89,271 shares of Series
B Preferred  Stock  outstanding  valued at $86,888.  The Company has  recorded a
cumulative  dividend  of $146 for the  Series  B  Preferred  Stockholders  as of
December 31, 2005 in the accompanying financial statements.

Series C Preferred Stock

The general terms of the Series C Preferred  Stock is as follows:  No par value;
Liquidation  Preference - $1.00 per share plus any unpaid accumulated dividends;
Dividends - cumulative  annual rate of $0.0005 per share when as declared by the
Board of  Directors;  Conversion  Rights - 1:20 ratio (i.e. 1 share of Preferred
Series C stock is convertible into 20 shares of common stock); Redemption Rights
- the  Company  has the  right to redeem  part or all of the stock  upon 30 days
written  notice at the rate of $1.00 per share plus all  accumulated  and unpaid
dividends  thereon at the dividend rate of $0.0005  annually per share.;  Voting
Rights - one vote  per  share on all  matters  requiring  shareholder  vote.  At
December 31,  2005,  the Company had 17,948  shares of Series C Preferred  Stock
outstanding valued at $68,211. The Company has recorded a cumulative dividend of
$11 for the Series C  Preferred  Stockholders  as of  December  31,  2005 in the
accompanying financial statements.

The Company has  recorded a dividend  for  preferred  shareholders  amounting to
$8,029 for the six month  period  ended  December  31,  2005,  and a  cumulative
dividend of $24,604 for the  preferred  stockholders  as of December 31, 2005 in
the accompanying  financial statements.  The Company has entered into agreements
with  various  vendors  and  employees  to convert  their  liabilities  into the
preferred series of stock.

14. SUPPLEMENTAL DISCLOSURE OF CASH FLOWS

The Company  prepares its statements of cash flows using the indirect  method as
defined under the Financial  Accounting Standard No. 95. The Company paid $0 for
income tax during the six month period ended December 31, 2005. The Company paid
$28,731 interest during the six month period ended December 31, 2005.

                                      -16-
<PAGE>

The cash flow  statements  do not include the following  non-cash  investing and
financing activities:

     o   The Company issued  5,465,365 common shares for a conversion of $29,021
         of convertible debentures.
     o   The Company issued 4,400,000  common shares for consulting  services to
         be provided over agreement period, the value of the shares was $529,818
         and the unamortized portion of it is $294,242.
     o   The  Company  issued  264,581  common  shares  due to the  exercise  of
         warrants valued at $264,581 to be offset against the lender advance.
     o   The Company  issued 410,000 common shares for the conversion of $70,400
         of preferred stocks.

15. COMMITMENTS AND CONTINGENCIES

a. Operating Leases
   ----------------

The Company  leases its executive  offices to Huntington  Beach,  California and
entered into a four year lease agreement on July 1, 2004. The agreement contains
a base rent  escalation  clause.  The Company  leases its Idaho office  facility
under a  month-to-month  rental  agreement  at $675 per month.  Rent expense for
these  operating  leases totaled $54,819 for the six month period ended December
31, 2005.

The future minimum lease payments under non-cancelable leases are as follows for
the twelve months ended December 31:

2006                $   92,371
2007                    94,066
2008                    47,457
                      ---------
                    $  233,893
                      =========

b. Litigation
   ----------

On April 16, 2004, Decision One Corporation filed suit in the County of Bannock,
Idaho against  Quintek for $22,661.56 for goods provided.  Since 2000,  Decision
One  (formerly  Imation)  has been both a vendor to Quintek  and a  reseller  of
Quintek's  Q4300  Printers.  Quintek  filed a  counterclaim  on August 1,  2004.
Quintek  asserts that Decision One used its authority as a dealer of our product
to  disparage  us, in  violation  of its dealer  agreement  with us, and we seek
relief for the hundreds of thousands of dollars in business  lost because of it.
On January 11, 2005, the Court granted  Judgment for the sum of $21,000 in favor
of the  Decision  One  Corporation.  The Court has ruled that  Quintek  would be
allowed to file the  counterclaim  under  this  action,  rather  than a separate
lawsuit.  The  Company  can appeal  the  Court's  decision  and would have until
February  18, 2005 to file the Notice of Appeal.  In March 2005,  a  stipulation
settlement  was accepted by the Creditor  where they agreed to accept $15,000 in
full satisfaction of their debt. The Company agreed to pay $2,000 upon execution
of the  stipulation  plus $1,000 for 13 months  thereafter.  Upon receipt of the
final payment,  a Satisfaction of Judgment will be entered in the matter. If the
Company fails to meet the payment  schedule,  the Creditor,  after giving credit
for payments  received,  shall be allowed to proceed  with the full  judgment of
$21,000 plus  accumulated  interest and costs. The amount of Judgment of $21,000
is  included  in accounts  payable  and  accrued  expenses  in the  accompanying
financial  statements  as of December  31,  2005.  The  balance  included in the
Accounts  payable and accrued  expense as of December  31, 2005 is $19,827,  the
Company is in default on the payment and is liable for the balance  after giving
credit for the payments made.

                                      -17-
<PAGE>

16. BASIC AND DILUTED NET LOSS PER SHARE

Net loss per share is calculated  in accordance  with the Statement of financial
accounting  standards  No. 128 (SFAS No. 128),  "Earnings  per share." Basic net
loss per share is based  upon the  weighted  average  number  of  common  shares
outstanding.  Diluted  net loss per  share is based on the  assumption  that all
dilutive  convertible  shares and stock  options were  converted  or  exercised.
Dilution is computed by applying the treasury  stock method.  Under this method,
options and warrants are assumed to be exercised at the  beginning of the period
(or at the time of issuance,  if later),  and as if funds obtained  thereby were
used to purchase common stock at the average market price during the period.

Weighted  average  number of shares used to compute  basic and diluted  loss per
share for the three month and six month period ended  December 31, 2005 and 2004
are the same since the effect of dilutive securities is anti-dilutive.


17. GOING CONCERN

The  accompanying  financial  statements  have been prepared in conformity  with
generally accepted accounting principles,  which contemplate continuation of the
Company as a going concern.  This basis of accounting  contemplates the recovery
of the Company's  assets and the  satisfaction  of its liabilities in the normal
course of  business.  Through  December  31,  2005,  the  Company  had  incurred
cumulative losses of $31,840,298  including a net loss of $1,336,941 for the six
month period ended  December 31, 2005.  In view of the matters  described in the
preceding  paragraph,  recoverability  of a major portion of the recorded  asset
amounts  shown in the  accompanying  balance sheet is dependent  upon  continued
operations of the Company, which in turn is dependent upon the Company's ability
to raise  additional  capital,  obtain  financing  and to  succeed in its future
operations.  The financial statements do not include any adjustments relating to
the  recoverability  and classification of recorded asset amounts or amounts and
classification  of  liabilities  that might be  necessary  should the Company be
unable to continue as a going concern.

Management  has taken the following  steps to revise its operating and financial
requirements,  which it believes are  sufficient to provide the Company with the
ability to continue as a going concern.  Management devoted  considerable effort
during the period  ended  December 31, 2005,  towards (i)  obtaining  additional
equity financing and (ii) evaluation of its distribution and marketing methods.


18. SUBSEQUENT EVENTS

On January 5, 2006,  the  Company  received a short term loan of $20,000  from a
shareholder  bearing a simple  interest  rate of 8%. On  January  13,  2006,  an
accredited  investor  exercised  3,500,000  warrants  for common stock valued at
$105,000,  the Company  received the funds but the shares remain  unissued as of
February 10, 2006. On January 23, 2006, the Company issued  1,259,260  shares of
common  stock  valued at $113,333 to a media  consultant  for  services.  During
January 2006,  the Company sold  3,166,666  shares of common stock to accredited
investors and received $80,000 for sale of such shares. 666,666 shares of common
stock remain unissued as of February 10, 2006.

                                      -18-
<PAGE>
Item 2. Management Discussion and Analysis of Financial Condition and Results of
        Operations

Results of Operations
---------------------

The Company's  revenues totaled $535,521 and $1,228,880 for the three months and
six months  ended  December  31, 2005  compared to $322,413 and $436,679 for the
same periods in 2004, respectively.  Increase in revenues resulted primarily due
to changing the Company's sales focus to the services business.

Cost of sales for the three  months  and six  months  ended  December  31,  2005
totaled  $346,808  and  $826,432  compared to $271,773 and $356,253 for the same
periods  in 2004,  respectively.  The  increase  of  $470,179  for the six month
comparative  consisted  primarily of labor,  facility and equipment  lease costs
relating to the  business  outsourcing  services,  whereas  cost of sales during
fiscal 2004 consisted  primarily of labor and production  costs. The increase of
$75,035 for the three month comparative consisted primarily of labor,  equipment
lease costs relating to the business outsourcing services, whereas cost of sales
during fiscal 2004 consisted primarily of labor and production costs.

Operating  expenses totaled $851,683 and $1,587,559 for the three months and six
months ended  December 31, 2005 compared to $3,774,136  and  $4,976,245  for the
same periods in 2004, respectively. The decrease of $3,388,686 for the six month
comparative  resulted  from a decrease in sales  related  expenses,  stock-based
compensation  for officers,  directors,  employees and  consultants and expenses
relating to  marketable  securities.  The decrease of  $2,922,453  for the three
month comparative  resulted from a decrease in sales related expenses,  expenses
relating to marketable securities.

Non-operating  income  totaled  $2,959 and  $9,631 for the three  months and six
months  ended  December  31,  2005 as compared to $2,853 and $6,178 for the same
periods in 2004. The Company  recorded a loss on conversion of debt amounting to
$667,570  during the six month period ended  December 31, 2004 as compared to $0
loss for the same  period in 2005.  Non-operating  expense  totaled  $2,409  and
$5,026 for the three months and six months ended December 31, 2005,  compared to
$0 for the same periods in 2004. The Company realized a gain of $113,700 on sale
of investments and recorded a beneficial  conversion  feature expense of $44,159
and $96,966  during the three months and six months  period  ended  December 31,
2005, respectively.  Interest expense totaled $31,770 and $175,036 for the three
months and six months ended  December  31, 2005  compared to $35,330 and $60,773
for the same periods in 2004, respectively.

During  the six  months  ended  December  31,  2005,  the  Company  billed on 10
contracts  for  document  services,  13  maintenance  contacts,  and one network
software renewal.  The Company billed on three contracts for document  services,
19 maintenance  contracts,  and one network  upgrade during the six months ended
December 31, 2004.

Liquidity and capital resources
-------------------------------

The Company has historically  financed operations from the issuance of debt, the
sale of common stock and the  conversion of common stock  warrants.  On December
31, 2005, the Company had cash on hand of $46,639 and a working  capital deficit
of $1,978,177.

Net cash used in  operating  activities  totaled  $442,120  for six months ended
December 31, 2005. The net cash used in attributed  primarily due to decrease in
accounts  receivable,  increase in  accounts  payable  and  payroll  taxes,  and
decreases in deferred revenue.

Net cash provided by investing  activities  totaled  $221,923 for the six months
ended  December  31,  2005  primarily  due to net  proceeds  from  the  sale  of
marketable securities.
                                      -19-
<PAGE>

Net cash provided by financing  activities  totaled  $254,167 for the six months
ended  December 31,  2005,  primarily  due to net proceeds  from sale of shares,
prepayments  for exercise of warrants,  offset by payments of leases,  factoring
payables and notes payable.

The Company believes that the receipt of net proceeds from the issuance of debt,
the sale of the common stock and the exercise of common stock warrants plus cash
generated  internally  from  sales  will be  sufficient  to  satisfy  our future
operations, working capital and other cash requirements for the remainder of the
fiscal  year,  although  we  currently  do not  have  any  plans,  contracts  or
commitments  for financing and no assurances can be given that financing will be
available  on terms the Company  deems  favorable,  or at all. If the Company is
unable to raise sufficient  capital,  it may need to sell certain assets,  enter
into new strategic  partnerships,  reorganize  or merge with another  company to
effectively maintain operations.

                                      -20-
<PAGE>

Item 3. Controls and Procedures

     a)  Evaluation of Disclosure  Controls and  Procedures.  As of December 31,
         2005, the Company's  management  carried out an  evaluation,  under the
         supervision  of the  Company's  Chief  Executive  Officer and the Chief
         Financial  Officer of the  effectiveness of the design and operation of
         the Company's system of disclosure  controls and procedures pursuant to
         the Securities and Exchange Act, Rule 13a-15(e) and 15d-15(e) under the
         Exchange Act). Based upon that evaluation,  the Chief Executive Officer
         and the Chief Financial Officer concluded that the Company's disclosure
         controls  and  procedures  were  effective,  as of the  date  of  their
         evaluation, for the purposes of recording, processing,  summarizing and
         timely  reporting  material  information  required to be  disclosed  in
         reports filed by the Company under the Securities Exchange Act of 1934.

     b)  Changes  in  internal  controls.  There  were no  changes  in  internal
         controls over financial reporting, known to the Chief Executive Officer
         or Chief  Financial  Officer that occurred during the period covered by
         this report that has  materially  affected,  or is likely to materially
         effect, the Company's internal control over financial reporting.

                                      -21-
<PAGE>

                          PART II -- OTHER INFORMATION

Item 1. Legal Proceedings

From  time to time,  we may  become  involved  in  various  lawsuits  and  legal
proceedings  that  which  arise in the  ordinary  course of  business.  However,
litigation is subject to inherent uncertainties,  and an adverse result in these
or other matters may arise from time to time that may harm our business.  Except
as described below, we are currently not aware of any such legal  proceedings or
claims that we believe will have,  individually or in the aggregate,  a material
adverse affect on our business, financial condition or operating results.

On April 16, 2004, Decision One Corporation filed suit in the County of Bannock,
Idaho against the Company for $22,662 for goods provided.  Since 2000,  Decision
One  (formerly  Imation) has been both a vendor and a reseller of the  Company's
products.  The Company filed a  counterclaim  on August 1, 2004  asserting  that
Decision  One used its  authority  as a  dealer  to  disparage  the  Company  in
violation of its dealer agreement. The Company sought relief for the hundreds of
thousands of dollars in business  lost.  On January 11, 2005,  the Court granted
Judgment for the sum of $21,000 in favor of the Decision  One  Corporation.  The
Court ruled that the  Company  would be allowed to file the  counterclaim  under
this  action,  rather  than a separate  lawsuit.  In March 2005,  a  stipulation
settlement  was accepted by the Creditor  where they agreed to accept $15,000 in
full satisfaction of their debt. The Company agreed to pay $2,000 upon execution
of the  stipulation  plus $1,000 for 13 months  thereafter.  Upon receipt of the
final payment,  a Satisfaction of Judgment will be entered in the matter. If the
Company fails to meet the payment  schedule,  the Creditor,  after giving credit
for payments  received,  shall be allowed to proceed  with the full  judgment of
$21,000 plus  accumulated  interest and costs. The amount of Judgment of $21,000
is  included  in accounts  payable  and  accrued  expenses  in the  accompanying
financial statements as of June 30, 2005.

The Company is a party to an arbitration pending before the Judicial Arbitration
and Mediation  Services ("JAMS") at 707 Wilshire Blvd., 46th Floor, Los Angeles,
CA 90017 entitled  Brownell,  Robert vs. Quintek  Technologies,  Inc.,  case no.
1200003614  Robert  Brownell   ("Brownell")  and  Quintek   Technologies,   Inc.
("Quintek")  are the  principal  parties.  Brownell was employed as President of
Quintek from March 31, 2004 to until he resigned on March 31,  2005.  On July 6,
2005,  Brownell filed an Arbitration  Complaint  against  Quintek for promissory
fraud, breach of written contract,  wrongful  constructive  termination based on
public policy and invasion of privacy.  On or about September 20, 2005,  Quintek
filed a Cross-Complaint against Brownell alleging causes of action for breach of
contract,  breach of the implied covenant of good faith and fair dealing, breach
of fiduciary duty, breach of duty of loyalty, misappropriation of trade secrets,
common  law  misappropriation  of  trade  secrets,  unfair  competition,   civil
conspiracy   to   commit   fraud,   intentional   interference   with   business
relationships,  and  constructive  trust.  Both parties seek  damages,  punitive
damages,  costs of suit incurred and such other relief as the  arbitrator  deems
proper.   The   Brownell   Arbitration   Complaint,   the  Quintek   Arbitration
Cross-Complaint  and all  pleadings,  motions and  documents  filed with JAMS in
connection  therewith  are  collectively  referred  to herein  as the  "Brownell
Arbitration".

The  Company  is also a party to a JAMS  arbitration  with  Chris  de Lapp  ("De
Lapp"). On March 15, 2004, De Lapp became employed by Quintek in the capacity of
Senior Account  Executive,  and on April 4, 2005 was promoted to the position of
Quintek's  National  Sales  Manager,  which position he served until he resigned
from Quintek on June 4, 2005.  On or about  November 28, 2005,  Quintek filed an
Arbitration Complaint against De Lapp, JAMS case no. 1220034091, alleging causes
of action for breach of contract,  breach of the implied  covenant of good faith
and  fair  dealing,  breach  of  fiduciary  duty,  breach  of duty  of  loyalty,
misappropriation of trade secrets, common law misappropriation of trade secrets,

                                      -22-
<PAGE>

unfair competition,  civil conspiracy to commit fraud,  intentional interference
with business  relationships,  and  constructive  trust. On or about December 8,
2005, De Lapp filed a Cross-Complaint against Quintek in response to the Quintek
Arbitration Complaint, alleging causes of action for breach of contract, account
stated, services rendered, open book account,  fraudulent inducement,  negligent
misrepresentation  and  violations  of  Labor  Codes.  The  Quintek  Arbitration
Complaint,  the De Lapp Arbitration  Cross-Complaint and all pleadings,  motions
and documents filed with JAMS in connection therewith are collectively  referred
to herein as the "De Lapp Arbitration".

On or about November 29, 2005,  Quintek filed a Complaint against  Brownell,  De
Lapp and Data  Imaging  Technologies,  Inc.  ("DIT") in Orange  County  Superior
Court,  case no.  05CC12586,  alleging  causes of action for breach of contract,
breach  of the  implied  covenant  of good  faith  and fair  dealing,  breach of
fiduciary duty,  breach of duty of loyalty,  misappropriation  of trade secrets,
common  law  misappropriation  of  trade  secrets,  unfair  competition,   civil
conspiracy   to   commit   fraud,   intentional   interference   with   business
relationships, and constructive trust (the "Superior Court Action").

After  some  discovery  was  conducted  in the  Brownell  Arbitration,  Quintek,
Brownell,  De Lapp and DIT entered into settlement  discussions.  After weeks of
settlement negotiations,  on Wednesday, February 1, 2006, the parties reached an
agreement  to resolve the  Brownell  Arbitration,  De Lapp  Arbitration  and the
Superior  Court  Action  by  way  of  a  settlement   agreement  and  stipulated
injunction.  The parties are presently in  negotiations as to the final terms of
the written settlement agreement and stipulated  injunction,  and it is expected
that said agreement shall be signed by or before February 27, 2006.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On  October  10,  2005,  the  Company  issued  16,500,000  common  shares  to an
institutional  investor for sale of common stock in  consideration  of $776,250.
This cash  consideration has not been received by the Company as of December 31,
2005.

On November 17, 2005,  the Company  issued 500,000 common shares to a consultant
in  consideration  of  services  valued  at  $40,000  pursuant  to a  consulting
agreement.

On November 17, 2005, the Company issued  1,500,000 common shares to an investor
relations firm in  consideration  of services  valued at $120,000  pursuant to a
marketing agreement.

On November 17, 2005, the Company issued 1.800,000 common shares to a consultant
in  consideration  of  services  valued at  $333,818  pursuant  to a  consulting
agreement.

On December 1, 2005, the Company issued 250,000 common shares upon conversion of
250,000 shares of Series A Preferred stock.

On December 12, 2005, the Company  issued 160,000 common shares upon  conversion
32,000 shares of Series B Preferred stock.

On December 22, 2005,  the Company  issued 600,000 common shares to a consulting
firm in consideration of services valued at $36,000 pursuant to a consulting and
financial advising agreement.

Unless  otherwise  noted,  the sales set forth above.  involved no underwriter's
discounts or commissions and are claimed to be exempt from registration with the
Securities and Exchange  Commission  pursuant to Section 4 (2) of the Securities
Act of 1933,  as amended,  as  transactions  by an issuer not involving a public

                                      -23-
<PAGE>

offering,  the issuance and sale by the Company of shares of its common stock to
financially  sophisticated  individuals  who are  fully  aware of the  Company's
activities,  as well as its business and financial  condition,  and who acquired
said  securities for investment  purposes and  understood the  ramifications  of
same.

Item 3. Defaults Upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

None

Item 5. Other Information

None

Item 6. Exhibits

31.1 - Certification of Chief Executive Officer pursuant to Rule 13a-14 and Rule
15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended

31.2 - Certification of Chief Financial Officer pursuant to Rule 13a-14 and Rule
15d 14(a), promulgated under the Securities and Exchange Act of 1934, as amended

32.1 - Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer)

32.2 - Certification  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer)

                                      -24-
<PAGE>

                                   Signatures


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



                                  QUINTEK TECHNOLOGIES, INC.




Date: February 14, 2006           /s/ ROBERT STEELE
                                  ------------------------------------
                                  Robert Steele, Chairman
                                    and Chief Executive Officer
                                    (Principal Executive Officer)

Date: February 14, 2006            /s/ ANDREW HAAG
                                  ------------------------------------
                                  Andrew Haag, Chief Financial Officer
                                    (Principal Financial and Accounting Officer)




                                      -25-