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 March 31, 2006

                                       or

[ ]  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. Employer
of incorporation or organization)                         Identification No.)

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


                   Registrant's telephone number: 714-848-7741

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

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

                      APPLICABLE ONLY TO CORPORATE ISSUERS

At May 19, 2006, a total of  142,565,943  shares of  registrant's  Common Shares
were outstanding.

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




<PAGE>


                           QUINTEK TECHNOLOGIES, INC.
                                   FORM 10-QSB
                   For the Fiscal Quarter Ended March 31, 2006




Part I                                                                   Page
------                                                                   ----

Item 1.  Financial Statements.                                           3

Item 2.  Management's Discussion and Analysis or Plan of Operations.     23

Item 3.  Controls and Procedures                                         25

Part ll                                                                  Page
-------                                                                  ----

Item 1.  Legal Proceedings.                                              26

Item 2.  Unregistered Sale of Equity Securities and Use of Proceeds      26

Item 3.  Defaults Upon Senior Securities                                 27

Item 4.  Submission of Matters to a Vote of Security Holders.            27

Item 5.  Other Information                                               27

Item 6.  Exhibits.                                                       27



                                      -2-



<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
<CAPTION>

                   QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                              as of March 31, 2006
                                   (Unaudited)

                                     ASSETS

       Current assets:

<S>                                                                           <C>
  Cash and cash equivalents                                                   $     16,858

  Restricted Cash                                                                  257,705

  Accounts receivable, net of allowance for doubtful accounts of $7,929            296,495

  Prepaid expenses                                                                     539
                                                                              ------------
         Total current assets
                                                                                   571,597


Property and equipment, net                                                        488,306

                                                                              ------------
Other assets:

  Deposits                                                                         108,935

  Other assets                                                                         883
                                                                              ------------
         Total other assets
                                                                                   109,818

                                                                              ------------

                                                                              $  1,169,720
                                                                              ============
</TABLE>

                See notes to consolidated financial statements.

                                      -3-
<PAGE>
<TABLE>
<CAPTION>
                   QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                              as of March 31, 2006
                                   (Unaudited)

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

<S>                                                                           <C>
  Accounts payable and accrued expenses                                       $  1,051,936

  Factoring payable                                                                137,722

  Payroll and payroll taxes payable                                                393,469

  Payroll taxes assumed in merger                                                   96,661

  Advances from lenders                                                             86,736

  Loans payable                                                                    473,884

  Convertible bonds                                                                 62,495

  Convertible debentures                                                           215,234

  Convertible notes                                                                 91,750

  Deferred revenue                                                                  13,421

  Dividend payable                                                                  28,618
                                                                              ------------
        Total current liabilities
                                                                                 2,651,925

Stockholders' deficit:
  Preferred stock, convertible, no par value, 50,000,000 shares authorized,

  3,148,750 shares issued and outstanding                                          681,605
  Common stock, $0.01 par value, 200,000,000 shares authorized,

  141,332,759 shares issued and outstanding                                      1,413,327

  Additional paid-in capital                                                    30,841,771

  Stock subscription receivable                                                   (776,250)

  Unamortized consulting                                                          (327,293)

  Unrealized gain on marketable securities                                         (79,741)

  Investments held in escrow                                                       (51,120)

  Accumulated deficit                                                          (33,184,504)
                                                                              ------------
        Total stockholders' deficit
                                                                                (1,482,205)
                                                                              ------------

        Total liabilities and stockholders' deficit                           $  1,169,720
                                                                              ============
</TABLE>


                 See notes to consolidated financial statements.


                                      -4-
<PAGE>
<TABLE>
<CAPTION>
                   QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                   (Unaudited) - split table

                                                       For      the three  month
                                                                periods    ended
                                                                For   the   nine
                                                                month    periods
                                                                ended  March 31,
                                                                2006  March  31,
                                                                2006
                                                           2006              2005                 2006              2005
                                                        -------------    -------------        -------------    -------------

<S>                                                     <C>              <C>                  <C>              <C>
Net revenue                                             $     499,879    $     408,047        $   1,728,759    $     844,726

Cost of revenue                                               329,525          272,650            1,155,958          628,904
                                                        -------------    -------------        -------------    -------------
Gross margin                                                  215,822          170,354              135,397          572,801

Operating expenses:
  Selling, general and administrative                         555,735          444,444            1,759,320        1,969,457

  Permanent decline on value of marketable securities            --               --                   --          2,346,564

  Stock-based compensation                                    802,759             --              1,186,734        1,071,972
                                                        -------------    -------------        -------------    -------------
Total operating expenses                                    1,358,494          444,444            2,946,054        5,387,993
                                                        -------------    -------------        -------------    -------------
Loss from operations                                       (1,188,139)        (309,047)          (2,373,253)      (5,172,171)

Non-operating income (expense):

  Realized gain on investment                                    --               --                113,700             --

  Other income                                                  3,215            4,129               12,846           10,307

  Loss on conversion of debt                                     --           (432,850)                --         (1,100,420)

  Uncollectible from former officers                           (3,299)            --                 (8,325)            --

  Beneficial conversion feature                               (13,959)     (107,222.00)            (110,924)     (135,519.00)

  Interest Income                                               2,413             --                  5,080             --

  Interest expense                                           (140,421)         (40,429)            (315,457)        (105,575)
                                                        -------------    -------------        -------------    -------------
Total non-operating income (expense)                         (152,050)        (576,372)            (303,080)      (1,331,207)

                                                        -------------    -------------        -------------    -------------
Loss before provision for income taxes                     (1,340,190)        (885,419)          (2,676,333)      (6,503,378)


Provision for income taxes                                       --               --                    800              800
                                                        -------------    -------------        -------------    -------------
Net loss                                                   (1,340,190)        (885,419)          (2,677,133)      (6,504,178)


Dividend requirement for preferred stock                        4,015            4,632               12,043           12,511
                                                        -------------    -------------        -------------    -------------
Net loss applicable to common shareholders                 (1,344,205)        (890,051)          (2,689,176)      (6,516,689)
</TABLE>
                                                     (continued)

                 See notes to consolidated financial statements.

                                      -5-

<PAGE>
<TABLE>
<CAPTION>
                   QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                   (Unaudited)

(continued)
                                                       For the three month periods ended     For the nine month periods ended
                                                                March 31, 2006                        March 31, 2006
                                                           2006              2005                 2006              2005
                                                        -------------    -------------        -------------    -------------

Other comprehensive (loss)/gain:

<S>                                                    <C>                <C>                   <C>              <C>
Reclassification adjustment                                   --               --                 (4,080)            --

Unrealized gain for the period                                   --               --                  9,317             --
                                                        -------------    -------------        -------------    -------------

Comprehensive loss                                      $  (1,344,205)   $    (890,051)       $  (2,683,939)   $  (6,516,689)
                                                        =============    =============        =============    =============


Basic and diluted net loss per share                    $       (0.01)   $       (0.01)       $       (0.02)   $       (0.09)

Basic and diluted net loss per share for dividend

  for preferred stock                                   $        0.00    $        0.00        $        0.00    $        0.00

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

  common shareholders                                   $       (0.01)   $       (0.01)       $       (0.02)   $       (0.09)
                                                        =============    =============        =============    =============

Basic and diluted weighted average
   shares outstanding                                     106,389,263       75,264,602          118,289,124       72,214,704
                                                        =============    =============        =============    =============
</TABLE>

           Weighted average of dilutine  securities has not been taken since the
            effect of dilutive securities is anti dilutive

                 See notes to consolidated financial statements.


                                      -6-
<PAGE>
<TABLE>
<CAPTION>
                                    QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENT OF CASH FLOWS
                                                    (Unaudited) (split table)

                                                                  Nine month periods ended
                                                                       March 31, 2006
                                                                   2006              2005
                                                              -------------    -------------
<S>                                                           <C>              <C>
     OPERATING ACTIVITIES
   Net loss                                                   $  (2,677,133)   $  (6,516,689)
   Adjustments to reconcile net loss
     to net cash used in operations:
        Depreciation and amortization                               129,365          102,656

        Discount on factor                                            4,796             --

        Expenses paid by a note payable                              36,478             --
        Issuance of shares for consulting services                  647,404          387,041

        Loss on conversion of debt                                     --          1,100,420

        Shares issued for compensation                                 --            277,431

        Issuance of shares for officer compensation                    --            427,500
        Permanent decline on value of marketable
        securities                                                     --          2,346,564

        Gain on the sale of the investment                         (113,700)            --
        Beneficial conversion feature expense                       110,924          135,519

        Amortization of the Unamortized discount                     87,635             --

        Stock options granted                                       539,330            1,500
        Warrants granted to consultant                              250,343          594,850
        Changes in current assets and liabilities:
               (Increase) decrease in accounts
               receivable                                            18,783         (171,805)

               (Increase) in other current assets                       643           (8,189)

               (Increase) in prepaid expenses                         5,023           (7,329)

               (Increase) in investments                               --           (156,718)
               Increase in accounts payable                         159,937          204,638

               Increase in payroll payables                            --            (76,452)

               Increase in payroll taxes payables                   191,814             --

               (Decrease) in deferred revenue                       (11,656)          (3,518)

               Increase in dividends payable                           --             12,511

               Increase in other liablilities                          --            222,657
                                                              -------------    -------------
   Net cash used in operating activities                           (620,015)      (1,127,413)
</TABLE>

                                                            (continued)

                See notes to consolidated financial statements.

                                      -7-
<PAGE>


<TABLE>
<CAPTION>

                                    QUINTEK TECHNOLOGIES, INC. AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENT OF CASH FLOWS
                                                    (Unaudited)
(continued)
                                                                  Nine month periods ended
                                                                       March 31, 2006
                                                                   2006              2005
                                                              -------------    -------------
<S>                                                           <C>              <C>
INVESTING ACTIVITIES
   Acquisition of equipment                                         (32,240)        (375,287)

   Proceeds from sale of marketable securities                      238,018             --

   (Increase) in restricted cash                                     (5,080)            --
                                                              -------------    -------------
   Net cash provided by investing activies                          200,699         (375,287)
                                                              -------------    -------------

FINANCING ACTIVITIES
   Payments on factoring payable                                   (266,694)         (93,492)

   Proceeds from factor                                             262,684             --

   Proceeds from line of credit                                        --            200,000

   Payments on leases                                               (61,735)            --

   Proceeds from issuance of debentures                                --            484,500

   Proceeds from convertible notes                                     --            170,000

   Proceeds from sale of stocks                                     265,000             --
   Prepayments for warrants to be issued for note
   conversion                                                       175,000          600,000
   Proceeds from issuance of common stock upon exercise
   of warrants                                                       59,400          254,968
   Payments of notes payable                                        (10,150)         (14,657)
                                                              -------------    -------------
Net cash provided by financing activities                           423,505        1,601,319
                                                              -------------    -------------

Net increase (decrease) in cash and cash equivalents                  4,189           98,619

Cash and cash equivalents, beginning balance                         12,669            4,052
                                                              -------------    -------------
Cash and cash equivalents, ending balance                     $      16,858    $     102,671
                                                              =============    =============
</TABLE>

                                      -8-

            See notes to consolidated financial statements


<PAGE>

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

1. DESCRIPTION OF BUSINESS

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

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 has been 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
outsourcing  services  range from the  digitizing,  indexing,  and  uploading of
source documents through simple customer-specific,  rules-based decision making.
The Company  sells  hardware,  software and  services for printing  large-format
drawings such as blueprints  and  computer-aided  design (CAD) files directly to
the microfilm format off aperture cards. The Company is the only manufacturer of
a patented, chemical-free desktop microfilm printer for aperture cards.

2. BASIS OF PRESENTATION

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

                                      -9-
<PAGE>

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

Use of Estimates

The  preparation  of  consolidated   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.

Research and development

Research and  development  costs are charged to operations when incurred and are
included in operating  expenses.  The amount charged to operations for the three
months  and nine  months  ended  March 31,  2006 was $0 as  compared  to $73 and
$52,694 for the same periods in 2005, respectively.

Marketable securities and realized loss due to decline in market value

On July 29,  2004,  the Company  entered  into an  Agreement  with  Langley Park
Investments Plc, a London  Investment  Company to issue 14,000,000 shares of the
Company's  common  stock to Langley in return for  1,145,595  shares of Langley.
Fifty percent of Langley shares issued to the Company under this agreement is to
be held in escrow for two years. At the end of two years if the market price for
the Company's  common stock is at or greater than the Initial Closing Price, the
escrow agent will  release the full  amount.  In the event that the market price
for the Company's common stock is less than the Initial Closing Price the amount
released will be adjusted. For the nine months ended March 31, 2006, the Company
recorded an unrealized loss of $79,741 for the potential  adjustment relating to
the decline in the value of the Company's common stocks.

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

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

Unrealized holding gains and losses for marketable  securities are excluded from
earnings and reported as a separate component of stockholder's equity.  Realized
gains and losses for securities classified as available-for-sale are reported in
earnings  based upon the adjusted cost of the specific  security  sold. On March
31, 2006, the investments  have been recorded as shown below based upon the fair
value of the marketable securities.

Marketable securities consisted of the following:
<TABLE>
<CAPTION>

                                                        Market           Accum.         Number of
         Investee Name                Cost             Value at        Unrealized     Shares Held at
            (Symbol)                               March 31, 2006       Gain         March 31, 2006


---------------------------------------------------------------------------------------------------------
<S>                                <C>                 <C>                  <C>             <C>
Marketable securities:
Langley Park Investments,
PLC Investments held in escrow:
 Langley Park Investments, PLC     $ 1,330,000         $  131,801           $     940       572,798
Reserve for potential loss                                (80,681)            (80,681)
                                -------------------------------------------------------------------------
      Totals                       $ 1,330,000         $   51,120           $ (79,741)      572,798
                                =========================================================================
</TABLE>

                                      -10-
<PAGE>

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

For the nine months  ended March 31, 2006,  the Company sold 544,158  marketable
securities in Langley Park investment for $147,017, realizing a gain of $24,300.

The Company sold  1,750,000  shares held in PanaMed for $89,400,  which had been
impaired in a previous period for a realized gain of $89,400.

Stock-based compensation

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

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

Basic and diluted net loss per share

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

Deferred revenue

Deferred revenue  represents  amounts received from the customers against future
sales of goods or services. Deferred revenue amounted to $13,421 as of March 31,
2006.

Issuance of shares for service

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

                                      -11-
<PAGE>

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

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.

Recent Pronouncements

Recently Issued Accounting Pronouncements

In February  2006,  FASB issued SFAS No.  155,  "Accounting  for Certain  Hybrid
Financial  Instruments".  SFAS  No.  155  amends  SFAS No 133,  "Accounting  for
Derivative  Instruments and Hedging  Activities",  and SFAF No. 140, "Accounting
for  Transfers  and  Servicing  of  Financial  Assets  and   Extinguishments  of
Liabilities".  SFAS No. 155,  permits  fair value  remeasurement  for any hybrid
financial  instrument that contains an embedded  derivative that otherwise would
require  bifurcation,  clarifies which  interest-only  strips and principal-only
strips are not  subject  to the  requirements  of SFAS No.  133,  establishes  a
requirement  to evaluate  interest in securitized  financial  assets to identify
interests  that  are  freestanding  derivatives  or that  are  hybrid  financial
instruments that contain an embedded derivative requiring bifurcation, clarifies
that concentrations of credit risk in the form of subordination are not embedded
derivatives,  and  amends  SFAS No.  140 to  eliminate  the  prohibition  on the
qualifying special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial  interest other than another derivative  financial
instrument.  This statement is effective for all financial  instruments acquired
or issued  after the  beginning of the  Company's  first fiscal year that begins
after  September  15,  2006.  The Company has not  evaluated  the impact of this
pronouncement  its  financial  statements.  In March 2006 FASB  issued  SFAS 156
`Accounting  for  Servicing of  Financial  Assets'  this  Statement  amends FASB
Statement No. 140,  Accounting  for Transfers and Servicing of Financial  Assets
and  Extinguishments  of  Liabilities,   with  respect  to  the  accounting  for
separately   recognized  servicing  assets  and  servicing   liabilities.   This
Statement:

1.       Requires  an  entity  to  recognize  a  servicing  asset  or  servicing
         liability  each time it undertakes an obligation to service a financial
         asset by entering into a servicing contract.

2.       Requires  all  separately  recognized  servicing  assets and  servicing
         liabilities to be initially measured at fair value, if practicable.

3.       Permits  an  entity  to  choose  `Amortization  method'  or Fair  value
         measurement method' for each class of separately  recognized  servicing
         assets and servicing liabilities.

4.       At its initial adoption, permits a one-time reclassification of
         available-for-sale securities to trading securities by entities with
         recognized servicing rights, without calling into question the
         treatment of other available-for-sale securities under Statement 115,
         provided that the available-for-sale securities are identified in some
         manner as offsetting the entity's exposure to changes in fair value of
         servicing assets or servicing liabilities that a servicer elects to
         subsequently measure at fair value.

                                      -12-
<PAGE>

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

5.       Requires  separate  presentation  of  servicing  assets  and  servicing
         liabilities  subsequently  measured at fair value in the  statement  of
         financial  position  and  additional  disclosures  for  all  separately
         recognized servicing assets and servicing liabilities.

This  Statement is effective as of the beginning of the  Company's  first fiscal
year that  begins  after  September  15,  2006.  Management  believes  that this
statement  will not have a  significant  impact  on the  consolidated  financial
statements.

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

Had the Company  determined  employee stock based  compensation  cost based on a
fair value  model at the grant date for its stock  options  under SFAS 123,  the
Company's  net  earnings  per share  would have been  adjusted  to the pro forma
amounts for the nine month period  ended March 31, 2006 and 2005,  as follows ($
in thousands, except per share amounts):
                                                 Nine months ended March 31,
                                                    2006           2005
                                               -------------     -----------

     Net loss - as reported                    $    (2,677)       $(6,504)

     Stock-Based employee compensation
       expense included in reported net
       income, net of tax                             539               --

     Total stock-based employee
       compensation expense determined
       under fair-value-based method for
       all rewards, net of tax                        (485)            (362)
                                               -------------     -----------
     Pro forma net loss                        $     (2,623)     $ (6,866)
                                               =============     ===========
    (Loss) per share:

     Basic, as reported                        $    (0.01)       $   (0.09)
     Diluted, as reported                      $    (0.01)       $   (0.09)
     Basic, pro forma                          $    (0.01)       $   (0.10)
     Diluted, pro forma                        $    (0.01)       $   (0.10)

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

                                      -13-
<PAGE>

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

3. PROPERTY AND EQUIPMENT

Property and equipment at March 31, 2006 consists of the following:

       Scanning Equipment              $ 478,576
       Computer and office equipment     136,254
       Other depreciable assets          102,881
       Software                          198,423
       Furniture and fixture              40,653
                                       ---------
                                         956,787
       Accumulated depreciation         (468,481)
                                       ---------
                                       $ 488,306
                                       =========

4. RESTRICTED CASH

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

The Company  opened a certificate  of deposit for $250,000 in October 2004.  The
Company has recorded  interest  income of $5,080 for the nine months ended March
31,  2006.  The  Company  has  recorded  $257,705  as  restricted  cash  in  the
accompanying balance sheet as of March 31, 2006.

5. EMPLOYEE RECEIVABLES

Employee receivables as of March 31, 2006, consist of the following:


Notes receivable from employees, unsecured,
   due on June 30, 2019, interest at 4%         $ 296,782

Interest receivable in connection with
   above notes receivable                          35,628
                                                ---------
                                                  261,154
Valuation allowance                              (261,254)
                                                ---------
                                                 $   -
                                                =========

6. FACTORING PAYABLE

The  Company has  entered  into an  agreement  with a  factoring  company  ("the
Factor") to factor  purchase  orders with recourse.  The Factor funds 97% or 90%
based upon the status of the purchase  order.  The Factor has agreed to purchase
up to $4,800,000 of qualified  purchase  orders over the term of the  agreement;
however,  the Factor does not have to purchase  more than  $200,000 in any given
month. The agreement term is from June 2, 2003 to June 2, 2005. The Company will


                                      -14-
<PAGE>

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

pay a late fee of 3% for  payments  not made within 30 days and 5% for those not
made in 60 days.  At the  option of the  Factor,  the late fees may be paid with
Company stock. If paid by Company stock,  the stock bid price will be discounted
50% in computing the shares to be issued in payment of the late fee.


Pursuant to the terms of the factor  agreement,  the Factor  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 recorded  $46,992 as interest expense for the
nine months period ended March 31, 2006. The Company has not issued any warrants
during the nine month period ending March 31, 2006.

There were no  purchases of purchase  orders  during the nine months ended March
31, 2006.  At March 31,  2006,  the Company had a factoring  payable  balance of
$116,722  associated  with this  factor.  The Company  has  accrued  $59,147 for
interest for late payments of factoring payables as of March 31, 2006.

During the nine  months  ended  March 31,  2006,  the  Company  entered  into an
agreement to factor  $289,312 of qualified  invoices  for a cash  remittance  of
$284,516.  As of March 31, 2006, the Company had a factoring  payable balance of
$1,000  associated  with this factor.  The Company  recorded  $8,204 as interest
expense in the accompanying financial statements as of March 31, 2006.

The Company has entered into bridge loan  agreements  with two  individuals.  At
March 31, 2006 the Company had a factoring balance associated with these factors
of $20,000.  The Company has  accrued  $11,204 for  interest of these  factoring
payables as of March 31, 2006.

7. PAYROLL TAXES-ASSUMED IN MERGER

The  Company  assumed  $205,618 of payroll  tax  liabilities  in the merger with
Pacific Diagnostic Technologies, Inc. The balance was $96,661 at March 31, 2006.
The Company is delinquent on payments of these payroll tax liabilities.

8. LOANS PAYABLE


 Loans payable,  interest at 7.9% to 20%, due various dates     $313,039
  in 2005 to 2008 (the company is in default for these loans)
 Loan payable, interest at 17.8%, due 2007                        20,705
 Notes payable, non-interest bearing                              55,000
  (the company is in default on this note)
 Note payable, interest at 5.75%, due July 30, 2006
  (the company is in default and the default interest is 12%)     33,438
 Note payable, interest at 15.99%, due June & July 2006              622
 Notes payable, interest at 8%, due 2006
  (the company is in default on this note)                        31,080

 Note payable, interest at 8%, due May 31, 2006                   20,000
                                                               ----------
                                                                $473,884
                                                               ===========

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, 2006.  The


                                      -15-
<
                           QUINTEK TECHNOLOGIES, INC.
                                 AND SUBSIDIARY
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

agreement  expires on August 2, 2006.  The  accredited  investor  has  exercised
818,264 warrants into common shares valued at $818,264 as of March 31, 2006. The
remaining  balance  of  $86,736  is  recorded  as  advances  from  lender in the
accompanying financial statements as of March 31, 2006. In addition, the holders
exercised  warrants to purchase  25,000 shares for cash at an exercise  price of
$1.00 per share.

10. CONVERTIBLE BONDS

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

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

Certain of the  outstanding  convertible  bonds have matured as of July 2001 and
October  2001.  The holders of the matured  bonds do not wish to renew the bonds
and have asked for payment; however, the Company does not have the cash to repay
these  bonds.  The Company has recorded  the $62,495 as  convertible  bonds as a
current liability in the accompanying financial statements as of March 31, 2006.

11. CONVERTIBLE DEBENTURES

The Company  raised  $300,000  through the  issuance of  convertible  debentures
during the year ended June 30, 2005. The term of the convertible  debentures are
as follows:  pursuant  to the terms of  conversion,  debenture  in the amount of
$300,000  pays  interest at 5 3/4% and includes  3,000,000  warrants to purchase
common  stock for a period of three years at the  exercise  price of $1.00.  The
"Conversion Price" shall be equal to the lesser of (i) $0.50, or (ii) 75% of the
average of the 5 lowest  Volume  Weighted  Average  Prices during the 20 trading
days prior to Holder's election to convert,  or (iii) 75% of the Volume Weighted
Average Price on the trading day prior to the Holders election to convert market
price of the Company's common stock prior to conversion.  Upon conversion of the
debenture, the holder is obligated to simultaneously exercise the $1.00 warrants
providing  added  funding  to  the  Company.   The  warrant  must  be  exercised
concurrently  with the  conversion  of this  debenture in an amount equal to ten
times the dollar  amount of the  Debenture  conversion.  Upon  execution  of the
securities purchase  agreement,  $225,000 of the purchase price was due and paid
to the  Company.  The  remaining  $75,000 was paid to the Company on February 7,
2005 upon effectiveness of the Securities and Exchange Commission's Registration
Statement.  As of March 31, 2006, the Holder of the debenture  converted $84,326
of the  debenture  amount  into  13,372,780  common  shares of the  Company  and
exercised 843,264 warrants.

The Company  allocated the proceeds  from the debenture  between the warrant and
the debt based on relative fair value of the warrant and the debt.  The value of
the warrant was  calculated  using the  Black-Scholes  model using the following
assumptions:  Discount rate of 3.4%, volatility of 100% and expected term of one
year. The amount allocated to the warrant of $20,348 is being amortized over the
term of the debt.  The Company  calculated  a beneficial  conversion  feature of
$279,652.  The Company amortized the beneficial conversion feature in accordance
with the  conversion  terms of the note.  At March  31,  2006,  the  convertible
debenture of $215,234 is presented in the accompanying  financial statements net
of the  unamortized  beneficial  conversion  feature  of  $-0-  and  unamortized
discount arising from the warrant of $440.

                                      -16-

<PAGE>

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


12. CONVERTIBLE NOTE

The Company  raised  capital  through the  issuance  of a  convertible  note for
$500,000  issued during the year ending June 30, 2004. The note plus any accrued
interest is convertible to the Company common shares at $0.06 but limited to 10%
of the outstanding  shares at the time of conversion.  Additionally,  the holder
will receive one bonus  warrant for each  conversion  share.  Each bonus warrant
will be  exercisable  for a period of 5 years from the date of issuance into one
share of common  shares at a price of $0.10.  The Company  has issued  6,804,164
common  shares on the  conversion  of  $408,250  of the  convertible  note.  The
convertible  note  balance as of March 31,  2006 is $91,750.  The total  accrued
interest on the convertible note amounted to $59,147 as of March 31, 2006.

13. STOCKHOLDERS' DEFICIT

a. Common Stock and Warrants

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

During the nine month period ended March 31, 2006,  the Company  issued  477,778
common shares upon exercise of warrants and received cash  amounting to $34,400;
5,992,837common  shares to  consultants  for  services to be rendered  valued at
$669,837 recorded as unamortized consulting of which $341,944 of the unamortized
consulting had been amortized and recognized as an expense; 50,000 common shares
to a consultant for services  rendered valued at $8,000  previously  recorded as
shares to be issued in June 30,  2005;  8,666,666  common  shares to  accredited
investors for a stock sales and collected  $265,000 in cash;  16,500,000  common
shares  issued to an  accredited  investor  for sale of stock valued at $776,250
pending  receipt of cash recorded as stock  subscription  receivable;  8,346,682
common shares  pursuant to conversion of debentures  and exercise of warrants to
the escrow agent; . $40,889 of debentures  were converted  into8,346,682  common
shares and  exercises  of  warrants  to  purchase  408,264  common  shares at an
exercise price of $1 per share; 250,000 common shares for conversion of Series A
Preferred  stock valued at $40,000;  160,000  common  shares for  conversion  of
Series B Preferred  stock valued at $30,400;  2,000,000  common shares valued at
$140,000  pursuant to an exchange  agreement  for investor to remit free trading
shares to a corporate  consultant,  and the issuance of 20,00  warrants to third
parties for services  rendered  valued at $870.  The Company  granted  2,000,000
warrants valued at $88,604,  to a note holder in lieu of penalty for non payment
of the note payable balance amounting to $200,000

During the nine  months  ended March 31,  2006,  the  Company  issued  1,292,180
warrants  in  connection  with an  investment  banking  agreement  and  recorded
$106,672 as expense for the cost of the issuance of such warrants. An additional
expense of $54,197 was recorded during the above period for 536,078  warrants to
be issued pursuant to the terms of the investment  banking agreement  referenced
above.  The fair value of the  warrants is estimated on the grant date using the
Black-Scholes  Model.  The following  assumptions  were made in estimating  fair
value.

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


                                      -17-
<PAGE>

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


During the nine months ended March 31, 2006, the Company  recorded an expense of
$61,519 for the warrants to be issued for a factor  pursuant to the factoring of
purchase orders.

b. Common Stock Reserved

At March 31, 2006, the Company reserved Common Shares for the following reasons:


Outstanding convertible bonds                151,918 shares

Outstanding of warrants

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

 Outstanding June 30, 2005                    15,206,857
 Issued during the period                      4,162,180
 Expired                                      (2,555,000)
 Exercised                                      (886,042)
                                               ---------
 Outstanding March 31, 2006                   15,927,995
 Warrants to be issued                         8,149,351
                                              ----------
 Total outstanding                            24,077,346
                                              ==========

c. Stock Option Agreements

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


                                               Number          Weighted
                                                 of            Average exercise
                                               Options         price
                                              ----------      ----------------
Options
Outstanding June 30, 2005                      9,470,317       $ 0.93
                                                                 0.10
Granted                                        7,233,626         0.00
Exercised                                           ---           --
Expired/forfeited                              (400,000)         0.15
                                             ------------     --------
Outstanding March 31, 2006                    16,303,943       $ 0.93
                                             ============     --------

The total option  granted to officers and employees are valued at $539,330,  the
total outstanding options of 16,303,943 are exercisable as of March 31, 2006.

d. Stock transactions approved by the shareholders

At  the  Annual  Meeting  of  the  shareholders  held  on  June  30,  2004,  the
shareholders  approved by a majority  vote to increase  to  200,000,000  shares,
$0.01 par value common  stock,  and  50,000,000  shares no par value,  preferred
stock  which  the  corporation  shall  have  authority  to  issue.  The board of


                                      -18-
<PAGE>

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

directors is authorized to divide the preferred stock into any number of classes
or series, fix the designation and number of shares of each such series or class
and alter or determine the rights,  preferences,  privileges and restrictions of
each or series of preferred stock

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 March 31, 2006, 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 $28,443 for the Series A  Preferred  stockholders  as of
March 31, 2006 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 March 31, 2006,  the Company had 89,271 shares of Series B
Preferred  Stock  outstanding  valued at $86,888.  The  Company  has  recorded a
cumulative dividend of $161 for the Series B Preferred  Stockholders as of March
31, 2006 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 March
31, 2006, the Company had 17,948 shares of Series C Preferred Stock  outstanding
valued at $68,211. The Company has recorded a cumulative dividend of $14 for the
Series  C  Preferred  Stockholders  as of  March  31,  2006 in the  accompanying
financial statements.

The Company has  recorded a dividend  for  preferred  shareholders  amounting to
$12,043  for the nine  month  period  ended  March 31,  2006,  and a  cumulative
dividend of $28,618 for the preferred  stockholders  as of March 31, 2006 in the
accompanying financial statements.  The Company has entered into agreements with
various  vendors and employees to convert their  liabilities  into the preferred
series of stock.

                                      -19-
<PAGE>

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


14. SUPPLEMENTAL DISCLOSURE OF CASH FLOWS

The Company  prepares its statements of cash flows using the indirect  method as
defined under the Financial  Accounting Standard No. 95. The Company paid $0 for
income tax during the nine month period  ended March 31, 2006.  The Company paid
$35,104 interest during the nine month period ended March 31, 2006.

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

     o   The Company issued  8,346,682 common shares for a conversion of $40,826
         of convertible debentures.
     o   The Company issued 5,992,837  common shares for consulting  services to
         be provided over agreement period, the value of the shares was $669,837
         and the unamortized portion of it is $327,293.
     o   The  Company  issued  408,264  common  shares  due to the  exercise  of
         warrants valued at $408,264 to be offset against the lender advance.
     o   The Company  issued 410,000 common shares for the conversion of $70,400
         of preferred stocks.

15. COMMITMENTS AND CONTINGENCIES

a) Operating Leases

The Company  leases its executive  offices to Huntington  Beach,  California and
entered into a four year lease agreement on July 1, 2004. The agreement contains
a base rent  escalation  clause.  The Company  leases its Idaho office  facility
under a  month-to-month  rental  agreement  at $675 per month.  Rent expense for
these operating leases totaled $80,255 for the nine month period ended March 31,
2006.

The future minimum lease payments under non-cancelable  leases are as follows as
of March 31, 2006:

              2006                $   92,794
              2007                    94,490
              2008                    23,728
                                    ---------
                                  $  211,013
                                    =========

b) Litigation

On April 16, 2004, Decision One Corporation filed suit in the County of Bannock,
Idaho against  Quintek for $22,661.56 for goods provided.  Since 2000,  Decision
One  (formerly  Imation)  has been both a vendor to Quintek  and a  reseller  of
Quintek's  Q4300  Printers.  Quintek  filed a  counterclaim  on August 1,  2004.
Quintek  asserts that Decision One used its authority as a dealer of our product
to  disparage  us, in  violation  of its dealer  agreement  with us, and we seek
relief for the hundreds of thousands of dollars in business  lost because of it.
On January 11, 2005, the Court granted  Judgment for the sum of $21,000 in favor
of the  Decision  One  Corporation.  The Court has ruled that  Quintek  would be
allowed to file the  counterclaim  under  this  action,  rather  than a separate
lawsuit.  The  Company  can appeal  the  Court's  decision  and would have until
February  18, 2005 to file the Notice of Appeal.  In March 2005,  a  stipulation
settlement  was accepted by the Creditor  where they agreed to accept $15,000 in
full satisfaction of their debt. The Company agreed to pay $2,000 upon execution
of the  stipulation  plus $1,000 for 13 months  thereafter.  Upon receipt of the
final payment,  a Satisfaction of Judgment will be entered in the matter. If the
Company fails to meet the payment  schedule,  the Creditor,  after giving credit
for payments  received,  shall be allowed to proceed  with the full  judgment of
$21,000 plus  accumulated  interest and costs. The Company has recorded the full
amount of judgment of $21,000 and accrued interest in the accompanying financial
statements  as of March 31, 2006.  In April 2006,  the Company made a payment of
$16,827 to satisfy its obligations pursuant to the terms of the judgment.

                                      -20-
<PAGE>

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

An action which was pending in the Superior Court of the State of California for
Orange County  against one of its  competitors,  a former  employee and a former
officer of the Company,  has been resolved by mutual  agreement.  The settlement
includes  an  injunction  which  prevents  the  defendants  from  soliciting  or
initiating  contact  with 23 accounts  until  February  28,  2007.  There was no
admission or  acknowledgment  of any wrongdoing by the defendants in stipulating
to the injunction.  The plaintiff,  Quintek  Technologies,  Inc., and defendants
Robert Brownell,  Chris De Lapp and Document Imaging Technologies,  Inc. entered
into a stipulated  injunction in the matter which provides,  among other things,
that Defendants and all of their respective officers,  agents,  representatives,
directors, affiliates, employees, successors in interest, and all persons acting
in  concert or  participating  with  them,  are  restrained  and  enjoined  from
soliciting  or  initiating  contact  with 23 clients  listed in the  injunction.
Additionally,  the Defendants shall not use, disclose, disseminate or publish in
any manner  Quintek's  confidential  business  information  and/or trade secrets
including  lists of clients,  candidates,  information  regarding  contracts  or
prospective  Quintek contracts with clients and candidates,  computer  programs,
business plans and strategies, prices, job descriptions, contracts, budgets, and
similar  confidential  or  proprietary   materials  or  information   respecting
Quintek's  or  its  clients'  or  candidates'   business  affairs,  as  well  as
confidential  information  of a personal  nature of Quintek's and its employees,
managers and officers, without the prior written consent of Quintek.

All other related claims and causes of action were dismissed with prejudice.

16. BASIC AND DILUTED NET LOSS PER SHARE

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

Weighted  average  number of shares used to compute  basic and diluted  loss per
share for the three  month and nine month  period  ended March 31, 2006 and 2005
are the same since the effect of dilutive securities is anti-dilutive.

17. GOING CONCERN

The  accompanying  financial  statements  have been prepared in conformity  with
generally accepted accounting principles,  which contemplate continuation of the
Company as a going concern.  This basis of accounting  contemplates the recovery
of the Company's  assets and the  satisfaction  of its liabilities in the normal
course of business.  Through March 31, 2006, the Company had incurred cumulative
losses of  $33,184,504  including  a net loss of  $2,677,133  for the nine month
period ended March 31, 2006.  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.

                                      -21-
<PAGE>

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

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 March 31, 2006, towards (i) obtaining  additional equity
financing and (ii) evaluation of its distribution and marketing methods.

18. SUBSEQUENT EVENTS

On April 11,  2006,  pursuant to an  investment  bank  agreement,  the  investor
converted  $5,000 of a  convertible  debenture and was issued  1,183,184  common
shares. In conjunction with this transaction, the investor also exercised 50,000
warrants and had remitted a prepayment  of $50,000 on February 23, 2006 for this
exercise of warrants.  On April 17, 2006, the Company received a cash remittance
of $60,000 from an  accredited  investor as an advance  against  future  warrant
exercises.  On May 10,  2006,  the  Company  executed  a  promissory  note to an
accredited  investor for $50,000 bearing 10% interest per annum, The note is due
six months from the date of issuance,  in addition,  the Company  granted to the
investor  1,500,000  warrants to purchase common stock at $0.0333,  expiring May
10, 2009.


                                      -22-
<PAGE>

Item 2. Management's Discussion and Analysis

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

Our  revenues  totaled  $499,879  and  $1,728,759  for the three months and nine
months  ended March 31, 2006  compared to  $408,047  and  $844,726  for the same
periods in 2005,  respectively.  Increases in revenues resulted primarily due to
changing the Company's sales focus to the services business.

Cost of sales for the three  months and nine  months  ended  March 31, 2006 were
$329,525 and  $1,155,958  compared to $272,650 and $628,904 for the same periods
in 2005,  respectively.  The increases of $56,875 and $527,054 for the three and
nine  months  ended March 31,  2006,  respectively,  in cost of sales  consisted
primarily of labor,  facility and equipment lease costs relating to the business
outsourcing  services,  whereas  cost of  sales  during  fiscal  2005  consisted
primarily of labor and production costs.

Operating  expenses  totaled  $1,358,494 and $2,946,054 for the three months and
nine months  ended March 31, 2006  compared to $444,444 and  $5,387,993  for the
same  periods in 2005,  respectively.  The  increase of  $914,050  for the three
months  ended  March 31,  2006  compared  to the same  period  in 2005  resulted
primarily due to increased stock based compensation.  The decrease of $2,441,939
for the nine month  period  ended March 31, 2006  compared to the same period in
2005 resulted from controlling  officer  compensations and consulting costs. The
Company  recorded a  permanent  decline  on value of  marketable  securities  of
$2,346,564  during the nine month period  ended March 31, 2005,  whereas no such
costs were incurred during the same periods in 2006.

Non-operating  income and expenses:  Other income totaled $3,215 and $12,846 for
the three  months and nine months ended March 31, 2006 as compared to $4,129 and
$10,307 for the same periods in 2005, respectively.  The Company recorded a loss
on  conversion  of debt  amounting to $0 during the three months and nine months
period ended March 31, 2006 as compared to $ 432,850 and $1,100,420 loss for the
same  periods  in 2005,  respectively.  The  Company  realized  a gain of $0 and
$113,700 on sale of  investments  during the three months and nine months period
ended March 31, 2006 as compared to $0 for the same periods in 2005. The Company
recorded a beneficial  conversion feature expense of $13,959 and $110,924 during
the three  months and nine  months  period  ended  March 31, 2006 as compared to
$107,222  and  $135,519  for the same  periods in 2005,  respectively.  Interest
expense  totaled  $140,421  and  $315,457  for the three  months and nine months
period  ended March 31,  2006  compared  to $40,429  and  $105,575  for the same
periods in 2005, respectively. Interest expense increased due to the increase in
additional  leases financed by the Company and additional  interest  recorded on
warrant issuances.

During the nine months ended March 31, 2006,  the Company billed on 15 contracts
for  document  services,  13  maintenance  contracts,  and one network  software
renewal  compared to the nine months ended March 31, 2005, the Company billed on
nine contracts for document services, 19 maintenance contracts,  and one network
software  renewal.  During the three  months  ended  March 31,  2006 the Company
billed on 9 contracts for document services,  no maintenance  contracts,  and no
network  software  renewal for  document  services  compared to the three months
ended  March 31,  2005,  the  Company  billed on seven  contracts  for  document
services, 15 maintenance contracts, and one network software renewal.

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

The Company has historically  financed operations from the issuance of debt, the
sale of common stock and the conversion of common stock  warrants.  On March 31,
2006,  the Company had cash on hand of $16,858  and working  capital  deficit of
$2,080,328.

                                      -23-
<PAGE>

Net cash used in  operating  activities  totaled  $620,015 for nine months ended
March 31, 2006.  The net cash used is  attributed  primarily  due to decrease in
accounts  receivable,  increase in  accounts  payable  and  payroll  taxes,  and
decreases in deferred revenue.

Net cash provided by investing  activities  totaled $200,699 for the nine months
ended March 31, 2006  primarily  due to net proceeds from the sale of marketable
securities.

Net cash provided by financing  activities  totaled $423,505 for the nine months
ended  March 31,  2006,  primarily  due to net  proceeds  from  sale of  shares,
prepayments  for exercise of warrants,  offset by payments of leases,  factoring
payables and notes payable.

The Company believes that the receipt of net proceeds from the issuance of debt,
the sale of the common stock and the exercise of common stock warrants plus cash
generated  internally  from  sales  will be  sufficient  to  satisfy  our future
operations, working capital and other cash requirements for the remainder of the
fiscal year. However, if the Company is unable to raise sufficient capital,  the
Company may need to sell certain assets, enter into new strategic  partnerships,
reorganize the Company,  or merge with another  company to effectively  maintain
operations.

                                      -24-
<PAGE>

Item 3. Controls and Procedures

a)       Evaluation of disclosure controls and procedures. An evaluation as of
         March 31, 2006 was performed under the supervision and with
         participation of our management, including the chief executive officer
         and chief financial officer, of the effectiveness of the design and
         operation of our disclosure controls and procedures. Based upon that
         evaluation, the chief executive officer and chief financial officer
         have concluded that our disclosure controls and procedures (as defined
         in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of
         1934, as amended (the "Exchange Act")) were effective as of that date
         to ensure that the information required to be disclosed by us in the
         reports that we file under the Exchange Act is gathered, analyzed and
         disclosed with adequate timeliness, accuracy and completeness.

b)       Changes  in  internal  controls.  There was no change in the  Company's
         internal  controls over financial  reporting  that occurred  during the
         period  covered by this  report  that has  materially  affected,  or is
         reasonably likely to materially  effect, the Company's internal control
         over financial reporting.



                                      -25-
<PAGE>

                          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
described  below,  we are currently not aware of any such legal  proceedings  or
claims that we believe will have,  individually or in the aggregate,  a material
adverse affect on our business, financial condition or operating results.

On April 16, 2004, Decision One Corporation filed suit in the County of Bannock,
Idaho against  Quintek for $22,661.56 for goods provided.  Since 2000,  Decision
One  (formerly  Imation)  has been both a vendor to Quintek  and a  reseller  of
Quintek's  Q4300  Printers.  Quintek  filed a  counterclaim  on August 1,  2004.
Quintek  asserts that Decision One used its authority as a dealer of our product
to  disparage  us, in  violation  of its dealer  agreement  with us, and we seek
relief for the hundreds of thousands of dollars in business  lost because of it.
On January 11, 2005, the Court granted  Judgment for the sum of $21,000 in favor
of the  Decision  One  Corporation.  The Court has ruled that  Quintek  would be
allowed to file the  counterclaim  under  this  action,  rather  than a separate
lawsuit.  The  Company  can appeal  the  Court's  decision  and would have until
February  18, 2005 to file the Notice of Appeal.  In March 2005,  a  stipulation
settlement  was accepted by the Creditor  where they agreed to accept $15,000 in
full satisfaction of their debt. The Company agreed to pay $2,000 upon execution
of the  stipulation  plus $1,000 for 13 months  thereafter.  Upon receipt of the
final payment,  a Satisfaction of Judgment will be entered in the matter. If the
Company fails to meet the payment  schedule,  the Creditor,  after giving credit
for payments  received,  shall be allowed to proceed  with the full  judgment of
$21,000 plus  accumulated  interest and costs. The Company has recorded the full
amount of judgment of $21,000 and accrued interest in the accompanying financial
statements  as of March 31, 2006.  In April 2006,  the Company made a payment of
$16,827 to satisfy its obligations pursuant to the terms of the judgment.

An action which was pending in the Superior Court of the State of California for
Orange County  against one of its  competitors,  a former  employee and a former
officer of the Company,  has been resolved by mutual  agreement.  The settlement
includes  an  injunction  which  prevents  the  defendants  from  soliciting  or
initiating  contact  with 23 accounts  until  February  28,  2007.  There was no
admission or  acknowledgment  of any wrongdoing by the defendants in stipulating
to the injunction.  The plaintiff,  Quintek  Technologies,  Inc., and defendants
Robert Brownell,  Chris De Lapp and Document Imaging Technologies,  Inc. entered
into a stipulated  injunction in the matter which provides,  among other things,
that Defendants and all of their respective officers,  agents,  representatives,
directors, affiliates, employees, successors in interest, and all persons acting
in  concert or  participating  with  them,  are  restrained  and  enjoined  from
soliciting  or  initiating  contact  with 23 clients  listed in the  injunction.
Additionally,  the Defendants shall not use, disclose, disseminate or publish in
any manner  Quintek's  confidential  business  information  and/or trade secrets
including  lists of clients,  candidates,  information  regarding  contracts  or
prospective  Quintek contracts with clients and candidates,  computer  programs,
business plans and strategies, prices, job descriptions, contracts, budgets, and
similar  confidential  or  proprietary   materials  or  information   respecting
Quintek's  or  its  clients'  or  candidates'   business  affairs,  as  well  as
confidential  information  of a personal  nature of Quintek's and its employees,
managers and officers,  without the prior written consent of Quintek.  All other
related claims and causes of action were dismissed with prejudice

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

On January 18, 2006,  February  13, 2006,  February 21, 2006 and March 20, 2006,
the Company  sold an aggregate of  6,666,666  common  shares to five  accredited
investors for consideration of $185,000.

On January 23,  2006,  the Company  issued  1,259,260  common  shares  valued at
$113,333 to a consultant  in  consideration  for media  campaign  services.  The
common shares were valued at the closing  market price of the shares on the date
of issuance.

                                      -26-
<PAGE>

On March 6, 2006,  the Company issued 333,577 common shares valued at $26,686 to
a consultant in  consideration of services  pursuant to a consulting  agreement.
The common  shares were valued at the closing  market price of the shares on the
date of issuance.

On March 20, 2006, the Company issued 2,000,000 common shares valued at $140,000
to an  accredited  investor in exchange for the investor  remitting  shares to a
third party for  settlement  of payables.  The common  shares were valued at the
closing market price of the shares on the date of issuance.

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.

Item 3. Defaults Upon Senior Securities

None

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

None

Item 5. Other Information

None

Item 6. Exhibits

Exhibits

31.1  Certification  pursuant to Rule 13a-14 of the Securities  Exchange Act, as
adopted pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002, of the Chief
Executive Officer

31.2  Certification  pursuant to Rule 13a-14 of the Securities  Exchange Act, as
adopted pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002, of the Chief
Financial Officer

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


                                      -27-
<PAGE>


                                   Signatures


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



                                 QUINTEK TECHNOLOGIES, INC.

Date: May 22, 2006               /s/ ROBERT STEELE
                                 --------------------------------------------
                                 Robert Steele, Chairman
                                 and Chief Executive Officer

Date: May 22, 2006               /s/ ANDREW HAAG
                                 --------------------------------------------
                                 Andrew Haag, Chief Financial Officer





                                      -28-