**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 September 30, 2007**





or





**o
      TRANSITION REPORT
      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**


**EXCHANGE
      ACT OF 1934**





*Commission
      File Number 0-28541*





**QUINTEK
      TECHNOLOGIES, INC.**


(Exact
      name of registrant as specified in its charter)




California
            77-0505346(State
                or other jurisdiction
            (I.R.S.
                Employerof
                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
o





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





At
      November 14, 2007, a total of 214,723,622 shares of registrant's Common Shares
      were outstanding.





Transitional
      Small Business Disclosure Format: Yes o No x










**QUINTEK
      TECHNOLOGIES, INC.**


**FORM
      10-QSB**




**For
      the Fiscal Quarter Ended September 30, 2007**




Part
                  I
              
              
              PageItem
                  1. Financial Statements (unaudited)
              
              
              3Item
                  2. Management's Discussion and Analysis or Plan of
                  Operations
              
              
              18Item
                  3. Controls and Procedures
              
              
              23Part
                  llItem
                  1. Legal Proceedings
              
              
              24Item
                  2. Unregistered Sale of Equity Securities and Use of
                  Proceeds
              
              
              24Item
                  3. Defaults Upon Senior Securities
              
              
              25Item
                  4. Submission of Matters to a Vote of Security Holders
              
              
              25Item
                  5. Other Information
              
              
              25Item
                  6. Exhibits
              
              
              25




2





**PART
      I - FINANCIAL INFORMATION**





**Item
      1. Financial Statements**




**QUINTEK
                  TECHNOLOGIES, INC. AND SUBSIDIARY****CONSOLIDATED
                  BALANCE SHEET****AS
                  OF SEPTEMBER 30, 2007****(Unaudited)**
  **ASSETS**Current
                  assets:Cash
                  and cash equivalents
              
              $
              60,991Accounts
                  receivable, net of allowance for doubtful accounts of
                  $4,496
              
              
              322,863Total
                  current assets
              
              
              383,854Property
                  and equipment, net
              
              
              259,059Deposits
              
              
              102,914Other
                  assets
              
              
              883Total
                  Assets
              
              $
              746,711**LIABILITIES
                  AND STOCKHOLDERS' DEFICIT**Current
                  liabilities:Accounts
                  payable and accrued expenses
              
              $
              1,968,734Factoring
                  payable
              
              
              188,490Payroll
                  and payroll taxes payable
              
              
              65,428Payroll
                  taxes assumed in merger
              
              
              66,529Advances
                  from lenders
              
              
              36,736Loans
                  payable
              
              
              180,604Convertible
                  bonds
              
              
              62,495Convertible
                  debentures
              
              
              210,674Convertible
                  notes
              
              
              45,450Warrant
                  liability
              
              
              40,189Deferred
                  revenue
              
              
              17,548Dividend
                  payable
              
              
              51,755Total
                  current liabilities
              
              
              2,934,631Long-term
                  debt
              
              
              1,054,090Stockholders'
                  deficit:Preferred
                  stock, convertible, no par value, 50,000,000 shares
                  authorized,4,154,750
                  shares issued and outstanding
              
              
              1,281,605Common
                  stock, $0.001 par value, 500,000,000 shares authorized,194,323,622
                  shares issued and outstanding
              
              
              194,323Additional
                  paid-in capital
              
              
              32,698,743Shares
                  to be issued
              
              
              5,000Stock
                  subscription receivable
              
              
              (776,250
              )Accumulated
                  deficit
              
              
              (36,645,431
              )Total
                  stockholders' deficit
              
              
              (3,242,010
              )Total
                  liabilities and stockholders' deficit
              
              $
              746,711
  The
        accompanying notes are an integral part of these unaudited consolidated
        financial statements
  3
  **QUINTEK
                  TECHNOLOGIES, INC. AND SUBSIDIARY****CONSOLIDATED
                  STATEMENTS OF OPERATIONS****(Unaudited)**
  **For
                  the three months ended**
                **September
                  30,****2007**
              
              **2006**Net
                  revenue
              
              $
              575,225
              
              $
              411,728Cost
                  of revenue
              
              
              356,391
              
              
              318,489Gross
                  margin
              
              
              218,833
              
              
              93,240Operating
                  expenses:Selling,
                  general and administrative
              
              
              386,132
              
              
              854,155Stock-based
                  compensation
              
              
              -
              
              
              600,000Stock-based
                  consulting fees
              
              
              -
              
              
              94,227Total
                  operating expenses
              
              
              386,132
              
              
              1,548,383Loss
                  from operations
              
              
              (167,299
              )
              
              (1,455,143
              )Non-operating
                  income (expense):Other
                  income
              
              
              6,181
              
              
              3,095Uncollectible
                  from former officers
              
              
              613
              
              
              (2,720
              )Finance
                  expense
              
              
              (69,381
              )
              
              -Change
                  in fair value of warrants
              
              
              1,098,866
              
              
              621,748Interest
                  income
              
              
              -
              
              
              2,592Interest
                  expense
              
              
              (83,850
              )
              
              (61,345
              )Total
                  non-operating income
              
              
              952,430
              
              
              563,370Income
                  (Loss) before provision for income taxes
              
              
              785,131
              
              
              (891,772
              )Provision
                  for income taxes
              
              
              800
              
              
              800Net
                  income (loss)
              
              
              784,331
              
              
              (892,572
              )Dividend
                  requirement for preferred stock
              
              
              3,698
              
              
              4,014Net
                  income (loss) applicable to common shareholders
              
              
              780,633
              
              
              (896,587
              )Other
                  comprehensive (loss)/gain:Reclassification
                  adjustment
              
              
              -
              
              
              -Unrealized
                  gain for the period
              
              
              -
              
              
              -Comprehensive
                  income (loss)
              
              $
              780,633
              
              $
              (896,587
              )Net
                  income (loss) per share :Basic
              
              $
              0.00
              
              $
              (0.01
              )Diluted
              
              $
              0.00
              
              $
              (0.01
              )Weighted
                  average number of shares outstandingBasic
              
              
              179,964,994
              
              
              150,442,028Diluted
              
              
              214,670,308
              
              
              150,442,028
  The
        accompanying notes are an integral part of these unaudited consolidated
        financial statements
  4
  **QUINTEK
                  TECHNOLOGIES, INC. AND SUBSIDIARY****CONSOLIDATED
                  STATEMENT OF CASH FLOWS****(Unaudited)**
  **For
                  the three months ended**
                  **September
                    30,****2007**
              
              **2006****OPERATING
                  ACTIVITIES**Net
                  income (loss)
              
              $
              784,331
              
              $
              (892,572
              )Adjustments
                  to reconcile net income (loss) to net cash used in
                  operations:Depreciation
                  and amortization
              
              
              32,951
              
              
              43,310Amortization
                  of the prepaid consulting
              
              
              -
              
              
              94,227Stock
                  based compensation
              
              
              -
              
              
              600,000Bad
                  Debts
              
              
              -
              
              
              2,720Uncollectible
                  from former officers
              
              
              613
              
              
              -Change
                  in Fair value of Warrants
              
              
              (1,098,866
              )
              
              (621,748
              )Amortization
                  of the Unamortized discount
              
              
              79,773
              
              
              63,268Changes
                  in current assets and liabilities:Increase
                  in accounts receivable
              
              
              (4,727
              )
              
              (57,968
              )Increase
                  in other current assets
              
              
              100
              
              
              -Increase
                  in accounts payable
              
              
              129,246
              
              
              322,685Decrease
                  in payroll taxes payable
              
              
              (17,878
              )
              
              (12,941
              )Increase
                  (Decrease) in deferred revenue
              
              
              12,508
              
              
              (11,400
              )Net
                  cash used in operating activities
              
              
              (81,949
              )
              
              (470,420
              )**INVESTING
                  ACTIVITIES**Acquisition
                  of equipment
              
              
              5,226
              
              
              -**FINANCING
                  ACTIVITIES**Proceeds
                  from factor
              
              
              51,768
              
              
              -Payments
                  on leases
              
              
              (6,115
              )
              
              (36,130
              )Proceeds
                  from related parties
              
              
              -
              
              
              11,103Expenses
                  related to Issuance of Debenture
              
              
              -
              
              
              150,000Payments
                  of notes payable
              
              
              -
              
              
              (7,484
              )Net
                  cash provided by financing activities
              
              
              45,653
              
              
              117,489**Net
                  decrease in cash and cash equivalents**
              
              
              (31,071
              )
              
              (352,931
              )**Cash
                  and cash equivalents, beginning balance**
              
              
              92,062
              
              
              410,007**Cash
                  and cash equivalents, ending balance**
              
              $
              60,991
              
              $
              57,076**SUPPLEMENTAL
                  DISCLOSURES OF CASH FLOW INFORMATION:**Interest
                  paid
              
              $
              7,229
              
              $
              -Income
                  taxes paid
              
              $
              -
              
              $
              -**SUPPLEMENTAL
                  DISCLOSURE FOR NON-CASH INVESTING AND FINANCING
                  ACTIVITIES:**Common
                  Stock issued for conversion of debenture
              
              $
              200,000
              
              $
              -
  The
        accompanying notes are an integral part of these unaudited consolidated
        financial statements


5




**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)




**1.
      DESCRIPTION OF BUSINESS**





The
      Company was originally incorporated under the laws of the State of California
      on
      April 16, 1993, as Quintek Electronics, Inc. On January 14, 1999, the Company
      merged with Pacific Diagnostic Technologies, Inc. in a business combination
      accounted for as a purchase. The acquisition took place under a plan of
      reorganization. Quintek Electronics, Inc. ("QEI") became public when it was
      acquired by Pacific Diagnostic Technologies, Inc. ("PDX") through a reverse
      merger and Chapter 11 Plan of Reorganization. Under the plan, all assets of
      QEI
      were sold to PDX, all PDX management resigned once the Plan was confirmed,
      and
      QEI's management and operating plan were adopted by the new operating entity.
      Shortly after the confirmation of the plan, the name of the reorganized debtor
      was changed to Quintek Technologies, Inc. ("QTI"). QTI assumed the assets,
      liabilities, technology and public position of both QEI and PDX.





On
      February 24, 2000, the Company acquired all of the outstanding common stock
      of
      Juniper Acquisition Corporation ("Juniper"). For accounting purposes, the
      acquisition was treated as a capitalization of the Company with the Company
      as
      the acquirer (reverse acquisition).





On
      May 5,
      2005, the Company formed Sapphire Consulting Services to focus its efforts
      on
      the Supply Chain Services market. Sapphire 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
      provides business process outsourcing services to Fortune 500, Russell 2000
      companies and public sector organizations. The Company’s business process
      includes outsourcing services range from consulting, digitizing, indexing,
      and
      uploading of source documents through simple customer-specific, rules-based
      decision making.





Since
      1991, the Company’s primary business focus and source of revenue was sales of
      hardware, software and service related to a patented, chemical-free desktop
      microfilm printer used for printing aperture cards directly from electronic
      files used for document management and archival storage. The patents on this
      technology were set to begin expiring in 2007. In November of 2005, the Company
      entered into a purchase agreement wherein all rights, title, and interest in
      assets, equipment, and inventory relating to the chemical-free desktop microfilm
      printer for aperture cards were sold to an interested party. The Company’s
      continuing focus is on BPO document management services.





**2.
      BASIS OF PRESENTATION**





The
      accompanying unaudited financial statements of the Company 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 September
      30, 2007, the results of operations for the three months ended September 30,
      2007 and 2006, and cash flows for the three months ended September 30, 2007
      and
      2006. The operating results for the three month period ended September 30,
      2007
      are not necessarily indicative of the results that may be expected for the
      year
      ending June 30, 2008. The audited financial statements for the year ended June
      30, 2007 were filed on October 15, 2007 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 2007 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.





**Accounts
      Receivable**





The
      Company maintains reserves for potential credit losses on accounts receivable.
      Management reviews the composition of accounts receivable and analyzes
      historical bad debts, customer concentrations, customer credit worthiness,
      current economic trends and changes in customer payment patterns to evaluate
      the
      adequacy of these reserves. Reserves are recorded primarily on a specific
      identification basis. Allowance for doubtful debts amounted to $4,496 as at
      September 30, 2007.





6


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)





**Property
      & Equipment**





Property
      and equipment are stated at cost. Expenditures for maintenance and repairs
      are
      charged to earnings as incurred; additions, renewals and betterments are
      capitalized. When property and equipment are retired or otherwise disposed
      of,
      the related cost and accumulated depreciation are removed from the respective
      accounts, and any gain or loss is included in operations. Depreciation of
      property and equipment is provided using the straight-line over the estimated
      useful lives (3-7 years) of the assets.





**Accounts
      Payable & Accrued Expenses**





Accounts
      payable and accrued expenses consist of the following as of September 30,
      2007:


Accounts
                  payable
              
              $
              718,362Accrued
                  interest
              
              
              614,456Accrued
                  legal fees
              
              
              50,250Accrued
                  legal settlement
              
              
              472,625Other
                  accrued expenses
              
              
              113,041$
              1,968,734




**Income
      Taxes**





The
      Company accounts for income taxes in accordance with SFAS No. 109, "Accounting
      for Income Taxes." Deferred taxes are provided for on a liability method for
      temporary differences between the financial reporting and tax basis of assets
      and liabilities that will result in taxable or deductible amounts in the future.
      Deferred tax assets and liabilities are adjusted for the effects of changes
      in
      tax laws and rates on the date of enactment. Deferred tax assets are reduced
      by
      a valuation allowance when, in the opinion of management, it is more likely
      than
      not that some portion or all of the deferred tax assets will be realized.
      Deferred tax assets and liabilities are adjusted for the effects of changes
      in
      tax laws and rates on the date of enactment.




**Stock-based
      compensation**





The
      Company adopted SFAS No. 123 (Revised 2004), *Share
      Based Payment* (“SFAS
      No. 123R”), under the modified-prospective transition method on
      January 1, 2006. SFAS No. 123R requires companies to measure and
      recognize the cost of employee services received in exchange for an award of
      equity instruments based on the grant-date fair value. Share-based compensation
      recognized under the modified-prospective transition method of SFAS
      No. 123R includes share-based compensation based on the grant-date fair
      value determined in accordance with the original provisions of SFAS
      No. 123, *Accounting
      for Stock-Based Compensation,* for
      all
      share-based payments granted prior to and not yet vested as of January 1,
      2006 and share-based compensation based on the grant-date fair-value determined
      in accordance with SFAS No. 123R for all share-based payments granted after
      January 1, 2006. SFAS No. 123R eliminates the ability to account for
      the award of these instruments under the intrinsic value method prescribed
      by
      Accounting Principles Board (“APB”) Opinion No. 25, *Accounting
      for Stock Issued to Employees* ,
      and
      allowed under the original provisions of SFAS No. 123. Prior to the
      adoption of SFAS No. 123R, the Company accounted for our stock option plans
      using the intrinsic value method in accordance with the provisions of APB
      Opinion No. 25 and related interpretations.




There
      were no options issued for the three month period ending September 30, 2007
      and
      2006.




**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.




7


**QUINTEK
          TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)


The
      following is a reconciliation of the numerators and denominators of the basic
      and diluted earnings per share computations:




**For
                  the three months ended September 30, 2007**
              
              **Net
                  Income**
              
              **Shares**
              
              **Per
                  Share**Basic
                  earnings per share:
              
              $
              780,633
              
              
              179,964,994
              
              $
              0.00Dividend
                  to preferred shareholders
              
              
              3,698Interest
                  on convertible debts
              
              
              57,362Net
                  income available to common shareholdersEffect
                  of dilutive securitiesConvertible
                  Bonds
              
              
              
              
              
              9,356,218Convertible
                  Debentures
              
              
              
              
              
              1,496,250Convertible
                  Preferred Shares
              
              
              
              
              
              23,852,846Diluted
                  earnings per share
              
              $
              841,693
              
              
              214,670,308
              
              $
              0.00
  **For
                  the three months ended September 30, 2006**
              
              **Net
                  Income**
              
              **Shares**
              
              **Per
                  Share**Basic
                  earnings per share:
              
              $
              (896,587
              )
              
              150,442,028
              
              $
              (0.01
              )Net
                  income available to common shareholdersEffect
                  of dilutive securities *Stock
                  optionsWarrantsDiluted
                  earnings per share
              
              $
              (896,587
              )
              
              150,442,028
              
              $
              (0.01
              )




*
          As
          there is a loss, these securities are anti-dilutive. The basic and diluted
          earnings per share is the same for the three months ended September 30,
          2006


**Revenue
      Recognition**





The
      Company recognizes its revenue in accordance with the Securities and Exchange
      Commissions (“SEC”) Staff Accounting Bulletin No. 104, “Revenue Recognition in
      Financial Statements” (“SAB 104”). Revenue from services rendered are recognized
      when a formal arrangement exists, the price is fixed or determinable, the
      services are rendered, no other significant obligations of the Company exist
      and
      collectibility is reasonably assured.





**Derivative
      Instruments**





In
      June
      1998, the Financial Accounting Standards Board issued SFAS No. 133, “Accounting
      for Derivative Instruments and Hedging Activities.” SFAS No. 133, as amended by
      SFAS No. 137, is effective for fiscal years beginning after June 15, 2000.
      SFAS
      No. 133 requires the Company to recognize all derivatives as either assets
      or
      liabilities and measure those instruments at fair value. It further provides
      criteria for derivative instruments to be designated as fair value, cash flow
      and foreign currency hedges and establishes respective accounting standards
      for
      reporting changes in the fair value of the derivative instruments. After
      adoption, the Company is required to adjust hedging instruments to fair value
      in
      the balance sheet and recognize the offsetting gains or losses as adjustments
      to
      be reported in net income or other comprehensive income, as appropriate.





**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, 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.





8


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)




**Recent
      Pronouncements**





In
      September 2006, the FASB issued SFAS No. 157, “Fair Value
      Measurements.” This statement clarifies the definition of fair value,
      establishes a framework for measuring fair value and expands the disclosures
      on
      fair value measurements. SFAS No. 157 is effective for fiscal years
      beginning after November 15, 2007. Management has not determined the
      effect, if any, the adoption of this statement will have on the financial
      statements.





In
      September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
      Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
      88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
      employer to recognize the over-funded or under-funded status of a defined
      benefit postretirement plan (other than a multiemployer plan) as an asset or
      liability in its statement of financial position and to recognize changes in
      that funded status in the year in which the changes occur through comprehensive
      income of a business entity or changes in unrestricted net assets of a
      not-for-profit organization. This Statement also improves financial reporting
      by
      requiring an employer to measure the funded status of a plan as of the date
      of
      its year-end statement of financial position, with limited exceptions. An
      employer with publicly traded equity securities is required to initially
      recognize the funded status of a defined benefit postretirement plan and to
      provide the required disclosures as of the end of the fiscal year ending after
      December 15, 2006. An employer without publicly traded equity securities is
      required to recognize the funded status of a defined benefit postretirement
      plan
      and to provide the required disclosures as of the end of the fiscal year ending
      after June 15, 2007. However, an employer without publicly traded equity
      securities is required to disclose the following information in the notes to
      financial statements for a fiscal year ending after December 15, 2006, but
      before June 16, 2007, unless it has applied the recognition provisions of this
      Statement in preparing those financial statements:





1.
            A
                brief description of the provisions of this Statement


2.
            The
                date that adoption is required


3.
            The
                date the employer plans to adopt the recognition provisions of this
                Statement, if earlier.





The
      requirement to measure plan assets and benefit obligations as of the date of
      the
      employer’s fiscal year-end statement of financial position is effective for
      fiscal years ending after December 15, 2008.





In
      February of 2007 the FASB issued SFAS 159, “The Fair Value Option for Financial
      Assets and Financial Liabilities—Including an amendment of FASB Statement No.
      115.” The statement permits entities to choose to measure many financial
      instruments and certain other items at fair value. The objective is to improve
      financial reporting by providing entities with the opportunity to mitigate
      volatility in reported earnings caused by measuring related assets and
      liabilities differently without having to apply complex hedge accounting
      provisions. The statement is effective as of the beginning of an entity’s first
      fiscal year that begins after November 15, 2007.





The
      management is currently evaluating the effect of this pronouncement on financial
      statements.





**3.**  **PRINCIPLES
      OF CONSOLIDATION**





The
      accompanying consolidated financial statements for the three months ended
      September 30, 2007 included the accounts of Quintek Technologies, Inc. and
      its
      wholly owned subsidiary Sapphire Consulting Services. All significant
      inter-company accounts and transactions have been eliminated in
      consolidation.





**4.
      PROPERTY AND EQUIPMENT**





Property
      and equipment at September 30, 2007, consists of the following:


Computer
                  and office equipment
              
              $
              839,232Other
                  depreciable assets
              
              
              102,881Furniture
                  and fixture
              
              
              40,653982,766Accumulated
                  depreciation
              
              
              (723,707
              )$
              259,059




The
      depreciation expense was $32,951 and $43,310 for the three month periods ended
      September 30, 2007 & 2006 respectively.





9


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)




**5.
      OTHER ASSETS**





Other
      assets comprised of following at September 30, 2007:


Subscription
                  Receivable
              
              $
              58,349**A**llowance
                  on Subscription Receivable
              
              
              (57,466
              )$
              883




**6.
      FACTORING PAYABLE**





A.
            The
                Company entered into an agreement with a factoring company ("the
                Factor")
                to factor purchase orders with recourse. The Factor funded 97% or
                90%
                based upon the status of the purchase order. The Factor agreed to
                purchase
                up to $4,800,000 of qualified purchase orders over the term of the
                agreement; however, the Factor did not have to purchase more than
                $200,000
                in any given month. The term of the agreement term was from June
                2, 2003
                to June 2, 2005. The Company agreed to 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 would be discounted 50%
                in
                computing the shares to be issued in payment of the late
                fee.





Pursuant
      to the terms of the factor agreement, the Factor is entitled to 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. The warrants are exercisable over a five year period.
      The Company has not issued any bonus warrants during the three months ending
      September 30, 2007.





There
      were no purchases of purchase orders for this factor during the three months
      ending September 30, 2007. At September 30, 2007, the Company had a factoring
      payable balance of $116,722 associated with this factor. The Company has accrued
      $194,886 interest for late payments of this factor payable as of September
      30,
      2007.





B
            The
                Company also had a factoring balance associated with two individual
                factors totaling $20,000. The Company has accrued $14,801 for interest
                of
                these factoring payables as of September 30, 2007.





C.
            On
                September 19, 2007, the Company entered into an invoice factoring
                agreement with one individual. On September 30, 2007, the Company
                had a
                balance of $51,768 in regard to this
                factor.





The
      total
      factoring payable as of September 30, 2007 was $188,490.





**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 $66,529 at September 30, 2007.
      The
      Company is delinquent on payments of these payroll tax liabilities.




**8.**  **LOANS
      PAYABLE**





A.
      Loan
      Payable as of September 30, 2007, consists of the following:


Capital
                  Leases payable, interest at 7.9% to 20%,due
                  various dates in 2005 to 2008 (Refer to Note 8(B) below)
              
              $
              145,435Lease
                  payable due in 2002
              
              
              2,028Note
                  payable, interest at 5.75%, due July 30, 2006(the
                  company is in default and default interest is 12%)
              
              
              6,080Notes
                  payable, interest at 8%, due 2006(the
                  company is in default of these notes)
              
              
              27,061$
              180,604




B.
      Capital Lease Obligations:





The
      Company leases various equipments under capital leases expiring in various
      years
      through 2008. The assets and liabilities under capital leases are recorded
      at
      the lower of the present value of the minimum lease payments or the fair value
      of the asset. The assets are depreciated over the lesser of their related lease
      terms or their estimated productive lives and are secured by the assets
      themselves. Depreciation of assets under capital leases is included in
      depreciation expense for the three months ended September 30, 2007.




10




**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)




Capital
      lease obligations represent the following at September 30, 2007:





2008Total
                minimum lease payments
            
            $
            168,817Interest
                expense relating to future periods
            
            
            (23,382
            )Present
                value of the minimum lease payments
            
            
            145,435Less:
                current portion
            
            
            (145,435
            )Non-current
                portion
            
            $
            -





Following
      is a summary of fixed assets held under capital leases at September 30,
      2007





2008Computers
                and production equipment
            
            $
            381,843Less:
                accumulated depreciation
            
            
            (226,203
            )Net
            
            $
            155,640





**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 $905,000 for
      prepayment of warrants to be exercised as of March 31, 2007. The agreement
      expired on August 2, 2006. The accredited investor has exercised 868,264
      warrants into common shares valued at $868,264 as of the three month period
      ended September 30, 2006. The remaining balance of $36,736 is recorded as
      advances from lender in the accompanying financial statements as of September
      30, 2007.





**10.
      CONVERTIBLE BONDS**





Convertible
      bonds at September 30, 2007, consist of the following:


Bonds
                  payable with interest at 9%, due on October 2001convertible to
                  shares of
                  common stock in increments of $1,000 or more
              
              $
              21,354Bonds
                  payable with interest at 12%, due July 2001, convertible to shares
                  of
                  common stock in increments of $500 or more.
              
              
              41,141$
              62,495




The
      above
      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 convertible bonds as a current liability in the
      accompanying financial statements as of September 30, 2007. The Company has
      accrued $46,662 interest for these convertible bonds as of September 30,
      2007.





**11.
      CONVERTIBLE DEBENTURES**





A.
            The
                Company raised $300,000 through the issuance of convertible debentures
                as
                of 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% interest 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. On August 2, 2007 the unexercised warrants
                attached
                to this convertible debenture expired. 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 September 30, 2007, the Holder of the
                debenture has converted $89,326 of the debenture amount into 14,555,964
                common shares of the Company and exercised 893,264
                warrants.




11


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)




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 was 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 September 30, 2007, the convertible debenture
      of $210,674 is presented in the accompanying financial statements as a current
      liability with the unamortized beneficial conversion feature and unamortized
      discount fully amortized.





Principal
      payments on these convertible debentures are as follows:




Three
              months ended September 30,2007
            
            $
            210,674




B.
            On
                May 19, 2006, the Company entered into a Securities Purchase Agreement
                with YA Global Investments, L.P. (formerly, Cornell Capital Partners,
                L.P.) (“YA Global Investments”). The Company entered into a convertible
                debenture with a total commitment value of $2,000,000. The term of
                the
                convertible debenture is for 36 months from the date of issuance.
                The
                conversion price in effect on any Conversion Date shall be, at the
                sole
                option of the Holder, equal to either (a) $0.0662 (the “Fixed Conversion
                Price”) or (b) ninety five percent (95%) of the lowest Volume
                Weighted Average Price of the Common Stock during the thirty (30)
                trading
                days immediately preceding the Conversion Date as quoted by Bloomberg,
                LP
                (the “Market Conversion Price”). The Investor shall not be able to convert
                the debentures into an amount that would result in the Investor
                beneficially owning in excess of 4.99% of the outstanding shares
                of common
                stock of the Company. Pursuant to the terms of debenture, the debenture
                bears interest at 10% interest per
                year.





Upon
      execution of the securities purchase agreement, $750,000 of the purchase price
      was due and paid to the Company on May 17, 2006. On September 15, 2006, an
      additional $150,000 was paid to the Company upon the signing of the second
      debenture. On October 23, 2006, an additional $600,000 was disbursed to the
      Company prior to the filing of the Securities and Exchange Commission’s
      Registration Statement and the final $500,000 was disbursed on February 12,
      2007
      upon effectiveness of the Securities and Exchange Commission’s Registration
      Statement.





As
      part
      of the financing, the Company issued 17,857,000 warrants to purchase common
      stock at an exercise price of $0.05, 15,625,000 warrants to purchase common
      stock at an exercise price of $0.055, 12,500,000 warrants to purchase common
      stock at an exercise price of $0.065, and 10,416,666 warrants to purchase common
      stock at an exercise price of $0.08, all warrants are for a term of five years.
      The exercise of the attached warrants is at the sole option of the Holder.




As
      of
      September 30, 2007 the Holder has converted $425,000 of the debenture amount
      into 27,779,781 common shares of the Company.





Per
      EITF
      00-19, paragraph 4, these convertible debentures do not meet the definition
      of a
“conventional convertible debt instrument” since the debt is not convertible
      into a fixed number of shares. The debt can be converted into common stock
      at a
      conversions price that is a percentage of the market price; therefore the number
      of shares that could be required to be delivered upon “net-share settlement” is
      essentially indeterminate. Therefore, the convertible debenture is considered
      “non-conventional,” which means that the conversion feature must be bifurcated
      from the debt and shown as a separate derivative liability. The derivative
      conversion liability is as follows:





**Funding
                Dates**
            
            **Funding
                Amount**
            
            **Conversion
                Liability Amount**May
                17, 2006
            
            $
            750,000
            
            $
            -September
                15, 2006
            
            
            150,000
            
            
            22,790October
                23, 2006
            
            
            600,000
            
            
            23,683February
                12, 2007
            
            
            500,000
            
            
            70,436**$**
            **2,000,000**
            ****
            **$**
            **116,909**




In
      addition, since the convertible debenture is convertible into an indeterminate
      number of shares of common stock, it is assumed that the Company could never
      have enough authorized and unissued shares to settle the conversion of the
      warrants into common stock. Therefore, the warrants issued in connection with
      this transaction having a fair value of $1,935,904 at May 19, 2006 are shown
      as
      a portion of the warrant liability. The value of the warrant was calculated
      using the Black-Scholes model using the following assumptions: Discount rate
      of
      3.93%, volatility of 100% and expected term of five year. The fair value of
      the
      conversion liability and the warrant liability will be adjusted to fair value
      each balance sheet date with the change being shown as a component of net
      income.




12




**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)




The
      fair
      value of the derivative liability and the warrants at the inception of these
      convertible debentures were shown as a debt discount with any discount greater
      than the face amount of the debt being recorded as financing costs in the year
      ended June 30, 2006.





**Funding
                Date**
            
            **Amount
                of Debt**
            
            **Fair
                Value of Warrants**
            
            **Fair
                Value of Derivative Liability**
            
            **Amount
                Applied to Debt Discount**
            
            **Recorded
                as Financing Cost**May
                17, 2006
            
            $
            750,000
            
            $
            1,935,904
            
            $
            -
            
            $
            750,000
            
            $
            1,185,904September
                15, 2006
            
            
            150,000
            
            
            -
            
            
            22,790
            
            
            22,790
            
            
            -October
                23, 2006
            
            
            600,000
            
            
            -
            
            
            23,683
            
            
            23,683
            
            
            -February
                12, 2007
            
            
            500,000
            
            
            -
            
            
            70,436
            
            
            70,436
            
            
            -**$**
            **2,000,000**
            
            **$**
            **1,935,904**
            
            **$**
            **116,909**
            
            **$**
            **866,909**
            
            **$**
            **1,185,904**





At
      September 30, 2007, the fair value of the warrants and conversion liabilities
      were $40,189 and $0 respectively.  During the three month period ended
      September 30, 2007 and 2006, the income due to change in fair value of
      derivative liabilities (warrant and conversion) was recorded as $1,098,866
      and
      $621,748, respectively.





As
      of
      September 30, 2007, the convertible debenture is as follows:





Face
                Value of the Convertible Debenture as of June 30, 2007
            
            $
            1,775,000Less
                : Conversion in Common Stock for period ended September 30,
                2007
            
            
            (200,000
            )Balance
            
            
            1,575,000Less
                : Unamortized Discount
            
            
            (432,022
            )Less
                : Unamortized Debt raising expenses
            
            
            (88,888
            )Convertible
                Debenture, net
            
            
            1,054,090Less
                : Current portion
            
            
            -Long
                term Convertible Debenture
            
            $
            1,054,090





Principal
      payments on the convertible debentures are as follows:





Year
                ending June 30,2008
            
            $
            -2009
            
            
            650,0002010
            
            
            925,000$
            1,575,000





**12.
      CONVERTIBLE NOTE**





The
      Company raised capital through the issuance of a convertible note for $50,500
      issued on May 10, 2006. The note bears interest at the rate of 10% per annum
      compounded annually. All principal and interest was due and payable at the
      earlier of occurrence of Company’s first round of financing (whether debt or
      equity) after May 31, 2006 involving the receipts of at least $200,000 or more,
      or on November 10, 2006. The note holder will receive such number of fully
      paid
      and non assessable common stock as shall equal the outstanding amount of
      principal and interest due under this note being converted, divided by 80%
      of
      the price per share at which the Company next sells the shares of its common
      stock. The note holder has agreed to extend the note pursuant to being paid
      10%
      of the principal and accrued interest through November 10, 2006. On December
      27,
      2006, the 10% principal and accrued interest were forwarded to the note holder.
      The remaining principal balance of the note of $45,450 is recorded in the
      accompanying financial statements as of September 30, 2007. The Company has
      accrued $2,864 interest for this note as of September 30, 2007.





13


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)


**13.
      STOCKHOLDERS' DEFICIT**





*a.
      Common Stock and Warrants*





The
      Company has increased its authorized common stock from 200 million shares to
      500
      million shares and reduced the par value from $0.01 to $0.001 per share. The
      Company received the acceptance from the State of California, for the reduction
      in the par value of shares, on October 19, 2006. 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 three month period ended September 30, 2007, the Company issued 1,838,235
      common shares pursuant to conversion of a debenture from a prior period;
      25,941,546 common shares pursuant to debenture conversion of
      $200,000.




*b.*  *Outstanding
      Warrants:*




Weighted
            
            AggregateNumber
                of
            
            Average
            
            IntrinsicWarrants
            
            Exercise
                Price
            
            ValueOutstanding
                June 30, 2007
            
            
            79,667,280
            
            $
            0.0901
            
            $
            —Issued
                during the period
            
            
            —
            
            
            —Expired
            
            
            (4,322,958
            )
            $
            0.5500Exercised
            
            
            —
            
            
            —Outstanding
                September 30, 2007
            
            
            75,344,322
            
            $
            0.0851
            
            $
            —Warrants
                to be issued
            
            
            4,639,842Total
            
            
            79,984,164





Following
      is a summary of the status of warrants outstanding at September 30, 2007:





Range
                of Exercise Prices
            
            Total
                Warrants Outstanding
            
            Weighted
                Average Remaining Life (Years)
            
            Total
                Weighted Average Exercise Price
            
            Warrants
                Exercisable
            
            Weighted
                Average Exercise Price of Exercisable Warrants$0.01
                - $0.09
            
            
            47,435,476
            
            
            2.08
            
            
            0.042
            
            
            47,435,476
            
            
            0.042$0.10
                - $0.20
            
            
            27,908,846
            
            
            1.20
            
            
            0.043
            
            
            27,908,846
            
            
            0.04375,344,322
            
            
            3.28
            
            
            0.085
            
            
            75,344,322
            
            
            0.085





*c.*
            *Common
                Stock Reserved*





At
      September 30, 2007, common stock was reserved for the following
      reasons:





Outstanding
      convertible bonds 151,918 shares





*d.*
            *Stock
                Option Agreements*





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


Options
                Outstanding
              
              Weighted
                  Average ExercisePrice
              
              Aggregate
                  Intrinsic ValueOutstanding
                  June 30, 2007
              
              
              23,152,994
              
              $
              0.014
              
              $
              —Granted
                  during the period
              
              
              -Exercised
              
              
              -Expired/forfeited
              
              
              -
              
              
              -Outstanding
                  September 30, 2007
              
              
              23,152,994
              
              $
              0.023
              
              $
              —




14


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)


Following
      is a summary of the status of options outstanding at September 30, 2007:





Range
                of Exercise Prices
            
            Total
                Options Outstanding
            
            Weighted
                Average Remaining Life (Years)
            
            Total
                Weighted Average Exercise Price
            
            Options
                Exercisable
            
            Weighted
                Average Exercise Price$0.01
                - $0.09
            
            
            20,099,932
            
            
            1.00
            
            
            0.009
            
            
            18,699,932
            
            
            0.009$0.10
                - $0.20
            
            
            3,053,062
            
            
            0.14
            
            
            0.014
            
            
            3,053,062
            
            
            0.01423,152,994
            
            
            1.14
            
            
            0.023
            
            
            21,752,994
            
            
            0.023








3,530,000
      three year options calculated using the Black Scholes option pricing model
      using
      the following assumptions


Risk-free
                  interest rate
              
              
              3.40
              %Dividend
                  yield
              
              
              0
              %Volatility
              
              
              100
              %





19,310,994
      five year options calculated using the Black Scholes option pricing model using
      the following assumptions


Risk-free
                  interest rate
              
              
              3.40
              %Dividend
                  yield
              
              
              0
              %Volatility
              
              
              100
              %




312,000
      three year options calculated using the Black Scholes option pricing model
      using
      the following assumptions


Risk-free
                  interest rate
              
              
              3.93
              %Dividend
                  yield
              
              
              0
              %Volatility
              
              
              100
              %





**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 September 30, 2007 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 $54,487 for the Series A Preferred
      stockholders as of September 30, 2007 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 September 30, 2007, the Company had 89,271 shares of Series
      B Preferred Stock outstanding valued at $86,888. The Company has recorded a
      cumulative dividend of $240 for the Series B Preferred Stockholders as of
      September 30, 2007 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
      September 30, 2007, the Company had 17,948 shares of Series C Preferred Stock
      outstanding valued at $68,211. The Company has recorded a cumulative dividend
      of
      $27 for the Series C Preferred Stockholders as of September 30, 2007 in the
      accompanying financial statements.




15


. **QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)


**Series
      D Preferred Stock**





The
      general terms of the Series D Preferred Stock is as follows: No par value;
      Liquidation Preference - $0.10 per share plus any unpaid accumulated dividends;
      Dividends - if declared by the Board of Directors, holders shall be entitled
      to
      receive dividends as if they had converted such preferred stock into common
      stock as of the dividend date; Conversion Rights - 1:20 ratio (i.e. 1 share
      of
      Preferred Series D stock is convertible into 20 shares of common stock) so
      long
      as the closing bid price of our common stock is at least $0.10 on any date
      subsequent to issuance; Redemption Rights - none; Voting Rights - fifty votes
      per share on all matters requiring shareholder vote. At September 30, 2007,
      the
      Company had 1,000,000 shares of Series D Preferred Stock outstanding valued
      at
      $600,000. The Company has recorded no accumulative dividend for the Series
      D
      Preferred Stockholders as of September 30, 2007 in the accompanying financial
      statements.





The
      Company has recorded a cumulative dividend of $3,698 for the preferred
      stockholders for the three month period ended September 30, 2007, in the
      accompanying financial statements.





**14.**  **COMMITMENTS
      AND CONTINGENCIES**





*a)
      Operating Leases*





Effective
      July 1, 2004 the Company relocated their executive offices to Huntington Beach,
      California and entered into a four year lease agreement. 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. For the three months
      ended September 30, 2007 rent expense for these operating leases totaled
      $26,018.





The
      future minimum lease payments under non-cancelable leases are as
      follows:


2008
              
              
              71,185$
              71,185




*b)
      Litigation*





The
      Company was served with a summons as a defendant in a case filed on September
      15, 2006 in Superior Court of California, County of San Diego. The complaint
      was
      filed by Golden Gate Investors for Breach of Contract relating to the financing
      agreements executed between the Company and Golden Gate Investors in August
      2004. Golden Gate Investors is claiming damages in excess of $725,136 in
      relation to the case. The Company retained counsel to defend itself in this
      matter and filed a response and counter claim for undisclosed damages. On August
      4, 2007, the Company counsel filed and was granted an order granting attorney’s
      motion to be relieved as counsel.  The answers filed and the cross
      complaint were stricken and the trial date of October 19, 2007 cancelled for
      failure to procure counsel to represent on September 21, 2007.  There are
      currently no dates on record. The next action is for the GGI counsel to set
      a
      prove-up hearing date.  The Company has recorded payables and an accrued
      legal expense totaling $725,136.





The
      Company was served with a summons as a defendant in a case filed on October
      24,
      2006 in Superior Court of California, County of Orange by Single Source Partners
      for failure to pay commissions and installment payments. Single Source Partners
      is seeking judgment in the amount of $51,206. The Company retained counsel
      to
      defend itself in this matter and filed a response and counter claim for
      undisclosed damages. On August 7, 2007, the Company counsel filed and was
      granted an attorney’s motion to be relieved as counsel.  On September 11,
      2007 a motion to strike defendant’s answer to the complaint, to dismiss
      defendant’s cross-complaint and to enter default was continued to October 9,
      2007. The action has been assigned a trial date of October 24, 2007. The Company
      has recorded payables and an accrued partnership fee totaling $56,605. On
      October 31, 2007, we agreed to a stipulated judgment in the amount of $75,000
      payable to Single Source Partners and are currently awaiting final paperwork
      for
      execution and filing with the courts.





We
      were
      served with a summons as a defendant in a case filed on October 9, 2007 in
      Superior Court of California, County of Orange by Tri-State Financial Press
      LLC
      for failure to pay an open book account. Tri-State Financial is seeking judgment
      in the amount of $5,195. We have recorded payables totaling $5,195.





16


**QUINTEK
        TECHNOLOGIES, INC. & SUBSIDIARY**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 (Unaudited)


**15.
      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 September 30, 2007, the Company had incurred
      cumulative losses of $36,645,431 and its current liabilities exceed its current
      assets by $2,550,776. 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 September 30, 2007, towards (i) obtaining additional
      equity financing and (ii) evaluation of its distribution and marketing methods.





**16.
      SUBSEQUENT EVENTS**





On
      October 3, October 8, and October 12, 2007, we issued 20,400,000 common shares
      pursuant to a debenture conversion valued at $51,000.





17


**Item
      2. Management's Discussion and Analysis**





*This
      Management's Discussion and Analysis of Financial Condition and Results of
      Operations includes a number of forward-looking statements that reflect
      Management's current views with respect to future events and financial
      performance. You can identify these statements by forward-looking words such
      as
“may,” “will,” “expect,” “anticipate,” “believe,” “estimate” and “continue,” or
      similar words. Those statements include statements regarding the intent, belief
      or current expectations of us and members of its management team as well as
      the
      assumptions on which such statements are based. Prospective investors are
      cautioned that any such forward-looking statements are not guarantees of future
      performance and involve risk and uncertainties, and that actual results may
      differ materially from those contemplated by such forward-looking
      statements.*





*Readers
      are urged to carefully review and consider the various disclosures made by
      us in
      this report and in our other reports filed with the Securities and Exchange
      Commission. Important factors currently known to Management could cause actual
      results to differ materially from those in forward-looking statements. We
      undertake no obligation to update or revise forward-looking statements to
      reflect changed assumptions, the occurrence of unanticipated events or changes
      in the future operating results over time. We believe that our assumptions
      are
      based upon reasonable data derived from and known about our business and
      operations. No assurances are made that actual results of operations or the
      results of our future activities will not differ materially from its
      assumptions. Factors that could cause differences include, but are not limited
      to, expected market demand for our services, fluctuations in pricing for
      materials, and competition.*





**Overview**


****


We
      address the growing needs of industry’s desire for timely access to relevant
      information. We do this by designing and providing a service-based solution
      for
      the customer around our core competencies of high speed high volume document
      scanning, inbound mailroom outsourcing, data capture, ASP hosting, workflow
      automation, and consulting services.





We
      charge
      our customers for deliverable services, consultative services and products.
      Products are invoiced upon shipping to our customer. Services are billed upon
      completion of a project or on a monthly basis, whichever is sooner. Many of
      our
      projects are for customers under long-term service agreements.





Deliverable
      services include scanned documents, captured data and hosted images. These
      are
      delivered to the customer in electronic format via electronic transmission
      via
      email or encrypted FTP transfer or physical media such as CD ROMs or Microfilm.
      Consultative services include document preparation, systems integration,
      software configuration, automated workflow design, and maintenance.





In
      the
      opinion of management, the following relationship, trends, events or
      uncertainties are important in understanding our operations and results as
      they
      have had, or can reasonably be expected to have a material effect on the net
      sales and/or income from operations.





·
            Over
                the past decade, businesses have invested considerable capital in
                technology hardware and software. Receiving relevant information
                into
                these systems in a timely manner is becoming more valuable and important
                to companies. We provide services to capture data and images and
                transfer
                them into information systems. Larger organizations are focused on
                enterprise wide systems to shorten turnaround time, lower cost of
                doing
                business and increase management analytics. Smaller organizations
                are
                finding it more difficult to compete unless they adopt similar strategies.
                This is creating increased demand for the services we provide to
                large and
                small organizations alike.





·
            The
                expansion of the internet to a worldwide resource has made workers
                available to process and catalogue information in other countries.
                This
                has made the labor arbitrage of outsourcing of information services
                overseas a growing and attractive business. It is a growing business
                to
                outsource from areas in the world where there is a high cost for
                educated
                labor to areas of the world where there is a lower cost of educated
                labor.
                We provide timely access to relevant information to the overseas
                information worker. A shift in this trend could impact our business




18




·
            Sapphire
                Consulting Service, our wholly owned subsidiary, accounted for 38%
                of our
                revenue and totaled $218,485 for the three months ending September
                30,
                2007. The loss of key personnel or relationships needed to fulfill
                and
                obtain new business could adversely impact our financial
                results.





·
            Fed-Ex/Kinko’s—We
                were a subcontractor for services to FedEx Kinko’s customers. Revenue from
                our relationship with FedEx Kinko’s totaled $150,555 and represented 26%
                of the total revenue for the three months ended September 30, 2007.
                The
                recent loss of this relationship as disclosed on our Form 8-K dated
                November 6, 2007 has adversely impacted our financial condition.





·
            Increased
                Sales and Marketing -We have been applying funds raised from a recent
                financing with Cornell Capital to increase sales and marketing efforts.
                The result has been an increased awareness of us and our services.
                This
                increased awareness has led to an increasing amount of new proposals
                we
                have submitted for new business. Management does not believe that
                we will
                be able to convert a portion of these proposals into new business
                due to
                recent reductions in sales force and loss of a major client. The
                inability
                to obtain new business will adversely impact our financial
                results.





**Results
      of Operations for the Three Months ended September 30, 2007 Compared to the
      Three Months Ended September 30, 2006**





*Revenues*





Our
      revenues totaled $575,225 and $411,728 for the three months ended September
      30,
      2007 and 2006, respectively, an increase of $163,497 for the three months ended
      September 30, 2007. The increase in revenues was primarily due to increase
      in
      data entry services and product sales.





*Cost
      of Revenue*





Cost
      of
      revenue for the three months ended September 30, 2007 and 2006 were $356,391
      and
      $318,489, respectively, an increase of $37,902. The increase in cost of revenue
      consisted primarily of increased outsourcing and product costs.





*Expenses*





Operating
      expenses totaled $386,132 and $1,548,383 for the three month period ended
      September 30, 2007 and 2006, respectively, a decrease of $1,162,251. The
      decrease resulted primarily from a decrease of $695,000 in stock-based
      compensation for officers, directors, employees and consultants and a decrease
      in litigation expenses.





Non-operating
      income totaled $952,430 and $563,370 for the three months ended September 30,
      2007 and September 30, 2006, respectively, an increase of $389,060. The increase
      was primarily due to changes in the fair value of issued warrants of $477,118.





Interest
      expense totaled $83,850 and $61,345 for the three months ended September 30,
      2007 and 2006, respectively.





*Net
      Income/Loss*





The
      net
      income of $784,331 and net loss of $892,572 for the three months ended September
      30, 2007 and 2006, respectively, reflect an increase of $1,676,903. The
      increased net gain resulted from increased fair value of issued warrants and
      decreased operating expenses.





**Liquidity
      and Capital Resources**





At
      September 30, our total assets were $746,711 compared to $811,944 as of June
      30,
      2007. Total current liabilities at September 30, 2007 were $2,934,631 compared
      to $3,860,271 as of June 30, 2007. We owe $66,529 in payroll withholding taxes
      that were assumed in a merger and are past due. Also, we are currently in
      default on two outstanding convertible bonds totaling $62,495. Interest
      continues to accrue against the principal. The notes are unsecured. The holders
      of the bonds that are in default have indicated that they do not want to convert
      their debt to stock and wish to be repaid in cash. At present, we do not have
      the funds to repay the indebtedness. It is not known whether we will be able
      to
      repay or renegotiate this debt. Additionally, our current liabilities exceeded
      our current assets by $2,187,920 at September 30, 2007. As a result of recurring
      losses from operations of $167,299, including net losses of $2,458,633 and
      $4,440,623 for the fiscal years ending June 30, 2007 and 2006 our auditors,
      in
      their report dated October 15, 2007, have expressed substantial doubt about
      our
      ability to continue as going concern. We continue to experience losses from
      operations.




19





Net
      cash
      used in operating activities for the three months ended September 30, 2007
      was
      $81,949, primarily attributable to the increase in accounts receivable and
      other
      current assets of $4,727, an increase in accounts payable of $129,246, a
      decrease in payroll taxes payable of $17,878, and an increase in deferred
      revenue of $12,508.





Net
      cash
      used in investing activities for the three months ended September 30, 2007,
      was
      $5,226, attributable to acquisition of equipment.





Net
      cash
      provided by financing activities for the three months ended September 30, 2007
      was $45,653, which was from the proceeds from factoring of $51,768 and payments
      on leases totaling $6,115.





As
      a
      result of the above activities, we experienced a net decrease in cash and cash
      equivalents of $31,071 as of September 30, 2007 as compared to a $352,931 net
      decrease in cash as of September 30, 2006. Our ability to continue as a going
      concern is still dependent on our success in obtaining additional financing
      from
      institutional investors or by selling our common shares and fulfilling our
      business plan. Other than as described below, we do not have any commitments
      for
      capital and we cannot give any assurances that capital will be available on
      terms we deem favorable or at all.





Our
      principal capital requirements during the fiscal year 2008 are to fund our
      internal operations and possibly seek merger or acquisition candidates. We
      currently do not have any agreements or commitments for any mergers or
      acquisitions. We will need to obtain additional capital in order to expand
      operations. If we decide to make any acquisitions, we may need additional
      financing. In order to obtain capital, we may need to sell additional shares
      of
      our common stock or borrow funds from private lenders. We cannot assure you
      that
      we will be successful in obtaining additional funding. We have historically
      financed operations from the sale of our common stock and the conversion of
      common stock warrants. At September 30, 2007, we had cash on hand of $60,991
      as
      compared to cash on hand of $92,062 at June 30, 2007.





Financing
      transactions may include the issuance of equity or debt securities, obtaining
      credit facilities, or other financing mechanisms. However, the trading price
      of
      our common stock and a downturn in the U.S. stock and debt markets could make
      it
      more difficult to obtain financing through the issuance of equity or debt
      securities. Even if we are able to raise the funds required, it is possible
      that
      we could incur unexpected costs and expenses, fail to collect significant
      amounts owed to us, or experience unexpected cash requirements that would force
      us to seek alternative financing. Further, if we issue additional equity or
      debt
      securities, stockholders may experience additional dilution or the new equity
      securities may have rights, preferences or privileges senior to those of
      existing holders of our common stock. If additional financing is not available
      or is not available on acceptable terms, we will have to curtail our
      operations.





To
      obtain
      funding for our ongoing operations, we entered into a Securities Purchase
      Agreement with YA Global Investments, L.P. (formerly, Cornell Capital Partners
      L.P.), an accredited investor, on May 17, 2006, and amended on September 15,
      2006, for the sale of $2,000,000 in secured convertible debentures and warrants.
      The investors provided us with an aggregate of $2,000,000 as follows:





·
            $750,000
                was disbursed on May 17, 2006;





·
            $150,000
                was disbursed on September 15,
                2006;





·
            $600,000
                was disbursed on October 23, 2006;
                and




20




·
            $500,000
                was disbursed on February 12, 2007





Out
      of
      the $2 million in gross proceeds we received from YA Global Investments upon
      issuance of the secured convertible debentures, the following fees payable
      in
      cash were deducted in connection with the transaction:





·
            $200,000
                fee payable to Yorkville Advisors LLC, the general partner of YA
                Global
                Investments;


·
            $20,000
                fee payable to Yorkville Advisors LLC, the general partner of YA
                Global
                Investments;


·
            $20,000
                structuring fee payable to Yorkville Advisors LLC, the general partner
                of
                YA Global Investments; and


·
            $5,000
                due diligence fee payable to YA Global
                Investments.





Thus,
      we
      received net proceeds of $1,755,000 from the issuance of secured convertible
      debentures to YA Global Investments, prior to any other expenses we incurred
      in
      connection with the transaction. As of November 14, 2007, $476,000 of secured
      convertible debentures have been converted into 59,770,146 shares of our common
      stock and $1,524,000 our secured convertible debentures remain
      outstanding.





The
      secured convertible debentures bear interest at 10%, mature three years from
      the
      date of issuance, and are convertible into our common stock, at the investor's
      option, at the lower of (i) $0.0662 or (ii) 95% of the lowest daily volume
      weighted average price of our common stock, as quoted by Bloomberg, LP, during
      the 30 trading days immediately preceding the date of conversion. **** Accordingly,
      there is no limit on the number of shares into which the secured convertible
      debentures may be converted. As of November 14, 2007, the lowest intraday
      trading price for our common stock during the preceding 30 trading days as
      quoted by Bloomberg, LP was $0.0011 and, therefore, the conversion price for
      the
      secured convertible debentures was $0.001045. Based on this conversion price,
      the $1,524,000 in secured convertible debentures remaining outstanding,
      excluding interest, were convertible into 1,458,373,206 shares of our common
      stock. The conversion price of the secured convertible debentures will be
      adjusted in the following circumstances:





·
            If
                we pay a stock dividend, engage in a stock split, reclassify our
                shares of
                common stock or engage in a similar transaction, the conversion price
                of
                the secured convertible debentures will be adjusted proportionately;




·
            If
                we issue rights, options or warrants to all holders of our common
                stock
                (and not to YA Global Investments) entitling them to subscribe for
                or
                purchase shares of common stock at a price per share less than $0.0662
                per
                share, other than issuances specifically permitted be the securities
                purchase agreement, then the conversion price of the secured convertible
                debentures will be adjusted on a weighted-average
                basis;




·
            If
                we issue shares, other than issuances specifically permitted be the
                securities purchase agreement, of our common stock or rights, warrants,
                options or other securities or debt that are convertible into or
                exchangeable for shares of our common stock, at a price per share
                less
                than $0.0662 per share, then the conversion price will be adjusted
                to such
                lower price on a full-ratchet
                basis;




·
            If
                we distribute to all holders of our common stock (and not to YA Global
                Investments) evidences of indebtedness or assets or rights or warrants
                to
                subscribe for or purchase any security, then the conversion price
                of the
                secured convertible debenture will be adjusted based upon the value
                of the
                distribution as a percentage of the market value of our common stock
                on
                the record date for such
                distribution;




·
            If
                we reclassify our common stock or engage in a compulsory share exchange
                pursuant to which our common stock is converted into other securities,
                cash or property, YA Global Investments will have the option to either
                (i)
                convert the secured convertible debentures into the shares of stock
                and
                other securities, cash and property receivable by holders of our
                common
                stock following such transaction, or (ii) demand that we prepay the
                secured convertible debentures; and




·
            If
                we engage in a merger, consolidation or sale of more than one-half
                of our
                assets, then YA Global Investments will have the right to (i) demand
                that
                we prepay the secured convertible debentures, (ii) convert the secured
                convertible debentures into the shares of stock and other securities,
                cash
                and property receivable by holders of our common stock following
                such
                transaction, or (iii) in the case of a merger or consolidation, require
                the surviving entity to issue to a convertible debenture with similar
                terms.




21




In
      connection with the securities purchase agreement, as amended, we agreed to
      issue YA Global Investments warrants to purchase an aggregate of 56,397,000
      shares of our common stock, exercisable for a period of five years; including
      warrants to purchase 17,857,000 shares at an exercise price of $0.05, warrants
      to purchase 15,625,000 shares at an exercise price of $0.055, warrants to
      purchase 12,500,000 shares at an exercise price of $0.065 and warrants to
      purchase 10,415,000 shares at an exercise price of $0.08. All of the warrants
      were issued upon closing. We have the option to force the holder to exercise
      the
      warrants, as long as the shares underlying the warrants are registered pursuant
      to an effective registration statement, if the closing bid price of our common
      stock trades above certain levels. In the event that the closing bid price
      of
      our common stock is greater than or equal to $0.10 for a period of 20
      consecutive days prior to the forced conversion, we can force the warrant holder
      to exercise the $0.05 warrants. In the event that the closing bid price of
      our
      common stock is greater than or equal to $0.11 for a period of 20 consecutive
      days prior to the forced conversion, we can force the warrant holder to exercise
      the $0.055 warrants. In the event that the closing bid price of our common
      stock
      is greater than or equal to $0.13 for a period of 20 consecutive days prior
      to
      the forced conversion, we can force the warrant holder to exercise the $0.065
      warrants. In the event that the closing bid price of our common stock is greater
      than or equal to $0.16 for a period of 20 consecutive days prior to the forced
      conversion, we can force the warrant holder to exercise the $0.08
      warrants.





We
      have
      the right, at our option, with three business days advance written notice,
      to
      redeem a portion or all amounts outstanding under the secured convertible
      debentures prior to the maturity date if the closing bid price of our common
      stock is less than $0.0662 at the time of the redemption. In the event of
      redemption, we are obligated to pay an amount equal to the principal amount
      being redeemed plus a 20% redemption premium, and accrued interest.




In
      connection with the securities purchase agreement, we also entered into a
      registration rights agreement providing for the filing, by September 29, 2006,
      of a registration statement with the Securities and Exchange Commission
      registering the common stock issuable upon conversion of the secured convertible
      debentures and warrants. We are obligated to use our best efforts to cause
      the
      registration statement to be declared effective no later than 90 days after
      September 29, 2006 and to insure that the registration statement remains in
      effect until the earlier of (i) all of the shares of common stock issuable
      upon
      conversion of the secured convertible debentures have been sold or (ii) May
      17,
      2008. In the event of a default of our obligations under the registration rights
      agreement, including our agreement to file the registration statement no later
      than September 29, 2006, or if the registration statement is not declared
      effective by December 29, 2006, we are required to pay YA Global Investments,
      as
      liquidated damages, for each month that the registration statement has not
      been
      filed or declared effective, as the case may be, either a cash amount or shares
      of our common stock equal to 2% of the liquidated value of the secured
      convertible debentures. The registration statement was declared effective on
      February 14, 2007. YA Global Investments has agreed to waive subsequent damages
      from the delays related to the registration statement.





In
      connection with the securities purchase agreement, we, and each of our
      subsidiaries, executed a security agreement in favor of the investor granting
      them a first priority security interest in all of our goods, inventory,
      contractual rights and general intangibles, receivables, documents, instruments,
      chattel paper, and intellectual property. The security agreement states that
      if
      an event of default occurs under the secured convertible debentures or security
      agreements, the investor has the right to take possession of the collateral,
      to
      operate our business using the collateral, and have the right to assign, sell,
      lease or otherwise dispose of and deliver all or any part of the collateral,
      at
      public or private sale or otherwise to satisfy our obligations under these
      agreements.





The
      investor has contractually agreed to restrict its ability to convert the
      debentures or exercise the warrants and receive shares of our common stock
      such
      that the number of shares of common stock held by it and its affiliates after
      such conversion does not exceed 4.99% of the then issued and outstanding shares
      of common stock. ****




22




**ITEM
      3. CONTROLS AND PROCEDURES**





*(a)
      Evaluation of disclosure controls and procedures.*





Our
      management, with the participation of our chief executive officer and chief
      financial officer, evaluated the effectiveness of our disclosure controls and
      procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934
      as
      of September 30, 2007. In designing and evaluating the disclosure controls
      and
      procedures, management recognizes that any controls and procedures, no matter
      how well designed and operated, can provide only reasonable assurance of
      achieving the desired control objectives. In addition, the design of disclosure
      controls and procedures must reflect the fact that there are resource
      constraints and that management is required to apply its judgment in evaluating
      the benefits of possible controls and procedures relative to their costs.





Based
      on our evaluation, our chief executive officer and chief financial officer
      concluded that our disclosure controls and procedures are designed at a
      reasonable assurance level and were effective as of September 30, 2007 to
      provide reasonable assurance that information required to disclosed in reports
      filed or submitted under the Exchange Act is recorded, processed, summarized
      and
      reported within the time periods specified in Securities and Exchange Commission
      rules and forms, and that such information was accumulated and communicated
      to
      our management, including our chief executive officer and chief financial
      officer, as appropriate, to allow timely decisions regarding required
      disclosure.





*(b)
      Changes in internal control over financial reporting.*





We regularly
      review our system of internal control over financial reporting and make changes
      to our processes and systems to improve controls and increase efficiency, while
      ensuring that we maintain an effective internal control environment. Changes
      may
      include such activities as implementing new, more efficient systems,
      consolidating activities, and migrating processes.





There
      were no changes in our internal control over financial reporting that occurred
      during the period covered by this Quarterly Report on Form 10-QSB that have
      materially affected, or are reasonably likely to materially affect, our internal
      control over financial reporting.




23


**PART
      II — OTHER
      INFORMATION**





**Item
      1. Legal Proceedings**





From
      time
      to time, we may become involved in various lawsuits and legal proceedings 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 disclosed 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.





**Index
      Number: GIC872522**  **-
      Superior Court of California, County of San Diego**





We
      were
      served with a summons as a defendant in a case filed on September 15, 2006
      in
      Superior Court of California, County of San Diego. The complaint was filed
      by
      Golden Gate Investors for Breach of Contract relating to the financing
      agreements executed between us and Golden Gate Investors in August 2004. Golden
      Gate Investors is claiming damages in excess of $725,136 in relation to the
      case. We retained counsel to defend ourselves in this matter and we have filed
      a
      response and counter claim for undisclosed damages.    On August
      4, 2007, our counsel filed and was granted an order granting attorney’s motion
      to be relieved as counsel.  The answers filed and the cross complaint were
      stricken and the trial date of October 19, 2007 was cancelled on September
      21,
      2007 for failure to procure counsel to represent us.  There are currently
      no dates on record. The next action is for the GGI counsel to set a prove-up
      hearing date.  We have recorded payables and an accrued legal expense
      totaling $725,136.





**Index
      Number: 06CC11306 - Superior Court of California, County of
      Orange**





We
      were
      served with a summons as a defendant in a case filed on October 24, 2006 in
      Superior Court of California, County of Orange by Single Source Partners for
      failure to pay commissions and installment payments. Single Source Partners
      is
      seeking judgment in the amount of $51,206. We retained counsel to defend
      ourselves in this matter and we have filed a response and counter claim for
      undisclosed damages. On August 7, 2007, our counsel filed and was granted an
      attorney’s motion to be relieved as counsel.  On September 11, 2007, a
      motion to strike defendant’s answer to the complaint, to dismiss defendant’s
      cross-complaint and to enter default was continued to October 9, 2007. The
      action has been assigned a trial date of October 24, 2007. On October 31, 2007,
      we agreed to a stipulated judgment in the amount of $75,000 payable to Single
      Source Partners and are currently awaiting final paperwork for execution and
      filing with the courts.





**Index
      Number: 07WL06810 - Superior Court of California, County of
      Orange**





We
      were
      served with a summons as a defendant in a case filed on October 9, 2007 in
      Superior Court of California, County of Orange by Tri-State Financial Press
      LLC
      for failure to pay an open book account. Tri-State Financial is seeking judgment
      in the amount of $5,195 plus interest. We have recorded payables totaling
      $5,195.





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





On
      July
      11, 2007, we issued 1,838,235 shares of common stock to YA Global Investments
      (formerly, Cornell Capital Partners) upon conversion of outstanding debentures
      in the amount of $25,000 from a previous period.





On
      July
      24, 2007, August 10, 2007, August 22, 2007, and September 14, 2007, we issued
      an
      aggregate of 25,941,546 shares of common stock to YA Global Investments
      (formerly, Cornell Capital Partners) upon conversion of outstanding debentures
      in the amount of $200,000.





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
      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.




24





**Item
      3. Defaults Upon Senior Securities**





On
      August
      3, 2004, we entered into a financing arrangement with Golden Gate Investors,
      Inc. and executed a two year convertible debenture for $300,000.  We are in
      default of the debenture balance in the amount of $210,674.





On
      July
      and October 2001, two convertible bonds matured. The bond holders do not wish
      to
      renew these bonds and do not wish to convert to common stock. We are in default
      of these bonds in the amount of $62,495.





**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)





25


**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:
                November 19, 2007
            By:
            /s/
              JAMES KERNANJames
                Kernan
                Chief
                  Executive Officer (Principal Executive Officer) and
                  Director


Date:
                  November 19, 2007
            By:
            /s/
              ANDREW HAAGAndrew
                    Haag
                    Chief
                      Financial Officer (Principal Financial Officer and Principal
                      Accounting
                      Officer) and
                      Director




26