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

                                   FORM 10-QSB

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

                For the Quarterly Period Ended December 31, 2004

                                       or

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

                          Commission File Number 28541

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

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

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


                   Registrant's telephone number: 714-848-7741

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

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports  required to be
filed by Section 12, 13, or 15(d) of the  Securities  Exchange Act of 1934 after
the distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

At February 11, 2005, a total of 79,890,552 shares of registrant's  Common Stock
were outstanding.

Transitional Small Business Disclosure Format: Yes [ ] No [X]
<PAGE>

TABLE OF CONTENTS

PART I           FINANCIAL INFORMATION
Item 1.          Financial Statements
                    Balance Sheets
                    Statement of Operations
                    Statements of Cash flows
                    Notes to Financial Statements
Item 2.          Management's Discussion and Analysis
Item 3.          Controls and Procedures

PART II          OTHER INFORMATION
Item 1.          Legal Proceedings
Item 2.          Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.          Defaults Upon Senior Securities
Item 4.          Submission of Matters to a Vote of Security Holders
Item 5.          Other Information
Item 6.          Exhibits
Signatures
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2


                                       2
<PAGE>

                                      Index



                         PART I FINANCIAL INFORMATION ........................4

Item 1 Financial Statements ................................................. 4
Item 2 Management's Discussion and Analysis .................................24
Item 3 Disclosure Controls and Procedures ...................................25

                          PART II OTHER INFORMATION .........................25

Item 1 Legal Proceedings ....................................................25
Item 2 Changes in Securities ................................................25
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 and Reports on Form 8-K .....................................27
Signatures ..................................................................28

                                       3
<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
<CAPTION>
                           QUINTEK TECHNOLOGIES, INC.
                                  BALANCE SHEET
                                DECEMBER 31, 2004
                                   (Unaudited)

                                     ASSETS

             Current assets:
<S>                                                                         <C>
  Cash and cash equivalents                                                 $      4,052
  Accounts receivable, net of allowance for doubtful accounts of $13,929         202,906
  Investment in marketable securities                                            156,718
  Prepaid expenses                                                                13,095
                                                                            ------------
         Total current assets                                                    376,771

Property and equipment, net                                                      253,227

Other assets:
  Deposits                                                                        38,434
  Restricted cash                                                                250,000
  Other assets                                                                       883
                                                                            ------------
                                                                                 289,317
                                                                            ------------
Total assets                                                                $    919,315
                                                                            ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
  Accounts payable and accrued expenses                                     $    539,207
  Note payable                                                                   250,000
  Factoring payable                                                              136,722
  Payroll and payroll taxes payable                                               79,069
  Payroll taxes assumed in merger                                                 96,661
  Advances from lenders                                                          125,000
  Loans payable - stockholders                                                    32,300
  Current portion of long-term debt                                               90,742
  Convertible bonds                                                               62,495
  Convertible debentures                                                         200,000
  Convertible notes                                                              500,000
  Deferred revenue                                                               138,863
  Dividend payable                                                                 7,879
                                                                            ------------
        Total current liabilities                                              2,258,938

Long-term debt, net of current portion                                           200,563

Convertible debentures                                                           225,000

Commitments and contingencies

Stockholders' deficit:
Preferred stock, convertible, no par value, 50,000,000 shares authorized,
  4,683,334 shares issued and outstanding                                   $          0
Common stock, $0.01 par value, 200,000,000 shares authorized,
  79,101,177 shares issued and outstanding                                       791,012
Additional paid-in capital                                                    26,286,828
Shares to be issued                                                               25,000
Unamortized consulting fees                                                      (23,580)
Investments held in escrow                                                      (156,718)
Accumulated deficit                                                          (28,687,728)
                                                                            ------------
        Total stockholders' deficit                                           (1,765,186)
                                                                            ------------
        Total liabilities and stockholders' deficit                         $    919,315
                                                                            ============
</TABLE>
                  The accompanying notes are an integral part
               of these unaudited condensed financial statements.

                                       4
<PAGE>

<TABLE>
<CAPTION>

                         QUINTEK TECHNOLOGIES, INC.
                          STATEMENTS OF OPERATIONS
                                (Unaudited)


                                                          Three month periods ended        Six month periods ended
                                                                 December 31,                    December 31,
                                                            2004            2003            2004            2003
                                                        ------------   --------------   ------------    ------------

<S>                                                     <C>             <C>             <C>             <C>
Net revenue                                             $    322,413    $     77,248    $    436,679    $    185,425

Cost of revenue                                              271,773          60,673         356,253         113,583
                                                        ------------    ------------    ------------    ------------
Gross margin                                                  50,640          16,575          80,426          71,842

Operating expenses:
  Selling, general and administrative                      1,381,023         246,560       2,221,132         412,458
  Permanent decline on value of marketable securities      2,346,564            --         2,346,564            --
  Stock-based compensation                                    46,549          15,000         408,549          15,000
                                                        ------------    ------------    ------------    ------------
Total operating expenses                                   3,774,136         261,560       4,976,245         427,458
                                                        ------------    ------------    ------------    ------------
Loss from operations                                      (3,723,496)       (244,985)     (4,895,819)       (355,616)

Non-operating income (expense):
  Other income                                                 2,853           2,864           6,178           5,846
   Loss on conversion of debt                               (667,570)       (667,570)
   Interest expense                                          (35,330)        (10,768)        (60,773)        (16,828)
                                                        ------------    ------------    ------------    ------------
Total non-operating income (expense)                        (700,047)         (7,904)       (722,164)        (10,982)

                                                        ------------    ------------    ------------    ------------
Loss before provision for income taxes                    (4,423,543)       (252,889)     (5,617,984)       (366,598)

Provision for income taxes                                      --              --               800            --
                                                        ------------    ------------    ------------    ------------
Net loss                                                  (4,423,543)       (252,889)     (5,618,784)       (366,598)

Dividend requirement for preferred stock                       5,066            --             7,879            --
                                                        ------------    ------------    ------------    ------------
Net loss applicable to common shareholders                (4,428,609)       (252,889)     (5,626,663)       (366,598)

Other comprehensive (loss)/gain:                                --              --              --              --


                                                        ------------    ------------    ------------    ------------
Comprehensive loss                                      $ (4,428,609)   $   (252,889)   $ (5,626,663)   $   (366,598)
                                                        ============    ============    ============    ============

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

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                                   $      (0.06)   $      (0.01)   $      (0.08)   $      (0.01)
                                                        ============    ============    ============    ============

Basic and diluted weighted average
   shares outstanding                                     74,506,311      47,758,001      66,423,928      47,758,001
                                                        ============    ============    ============    ============
</TABLE>
                  The accompanying notes are an integral part
               of these unaudited condensed financial statements.

                                       5
<PAGE>
<TABLE>
<CAPTION>

                            QUINTEK TECHNOLOGIES, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                          Six months periods ended
                                                                                December 31,
                                                                           2004            2003
                                                                        -----------    -----------
           OPERATING ACTIVITIES
<S>                                                                    <C>            <C>
   Net loss                                                            $(5,618,784)   $  (366,598)
   Adjustments to reconcile net loss to net cash used in operations:
      Issuance of shares for consulting services                           550,758         15,000
      Loss on conversion of debt                                           667,570           --
      Stock based compensation                                             170,000           --
      Issuance of shares for officer compensation                          427,500           --
      Permanent decline on value of marketable securities                2,346,564
      Stock options granted                                                  1,500           --
      Warrants granted to consultant                                       589,602           --
      Depreciation and amortization                                         72,026         23,252
      Changes in current assets and liabilities:
         (Increase) decrease in accounts receivable                       (174,170)        51,694
         (Increase) decrease in inventory                                     --           (7,098)
         (Increase) decrease in other current assets                       (37,849)         3,843
         Increase in accounts payable                                      120,395         10,422
         Increase in payroll payables                                         --           75,359
         Increase in dividend payable                                        7,879           --
         Increase in other liabilities                                      51,823         78,995
                                                                       -----------    -----------
   Net cash used in operating activities                                  (825,185)      (115,131)
                                                                       -----------    -----------
INVESTING ACTIVITIES
   Acquisition of equipment                                               (178,181)       (13,585)
   (Increase) in employer receivables                                         --           (2,127)
                                                                       -----------    -----------
   Net cash used in investing activies                                    (178,181)       (15,712)
                                                                       -----------    -----------
FINANCING ACTIVITIES
   Factoring payable                                                       (93,492)      (126,890)
   Proceeds from notes payable - stockholders                                 --          100,000
   Proceeds from line of credit                                            250,000           --
   Proceeds from issuance of debentures                                    425,000           --
   Proceeds from convertible notes                                         170,000         10,800
   Cash received for shares to be issued                                    25,000           --
   Proceeds from issuance of common stock and warrants                     229,967        109,000
   Proceeds (Payment) of notes payable                                     (14,657)        19,420
                                                                       -----------    -----------
Net cash provided by financing activities                                  991,818        112,330
                                                                       -----------    -----------
Net decrease in cash and cash equivalents                                  (11,548)       (18,513)
Cash and cash equivalents, beginning balance                                15,600         21,162
                                                                       -----------    -----------
Cash and cash equivalents, ending balance                              $     4,052    $     2,649
                                                                       ===========    ===========
</TABLE>

                 The accompanying notes are an integral part
               of these unaudited condensed financial statements.


                                       6
<PAGE>

                           QUINTEK TECHNOLOGIES, INC.
                        NOTES TO THE 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. At the time of
the merger,  PDX was a non  operating  public entity and QTI has no intention of
carrying on the former operations of PDX.

The plan was structured to compensate all related  parties with common stock and
units.  Each unit  consisted of one share of common stock,  one Class A warrant,
one  Class  B  warrant,  one  Class C  warrant  and one  Class  D  warrant.  PDX
shareholders  received  unrestricted  units  at a ratio  of one QTI  unit for 25
shares of PDX stock, resulting in a distribution of 310,535 units. PDX creditors
received  unrestricted  QTI units at a ratio of one QTI unit for $3 of  previous
PDX  debt,  resulting  in a  net  distribution  of  885,549  units.  Chapter  11
administrators and consultants received  approximately  610,000 unrestricted QTI
shares, attorneys received 220,000 unrestricted units and market-makers received
200,000  unrestricted  units. QEI  shareholders  received  11,096,167  shares of
restricted common stock.

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). The historical financial statements prior
to February 24, 2000 are those of the Company.

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 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)


                                       7
<PAGE>

considered necessary to present fairly its financial position as of December 31,
2004,  the results of operations  for the six months ended December 31, 2004 and
2003,  and cash flows for the six months ended  December 31, 2004 and 2003.  The
operating  results  for the six month  period  ended  December  31, 2004 are not
necessarily  indicative  of the results that may be expected for the year ending
June 30, 2005. The audited financial statements for the year ended June 30, 2004
were filed on October 1, 2004 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 2004 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.

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 six
months ended December 31, 2004 and 2003 was $37,384 and $25,022, 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.  The  Company  recorded  realized  loss of $
2,346,564  due to  permanent  decline  based on the  market  value of  shares on
December 31, 2004 which is reflected as realized loss on  marketable  securities
in the operating expenses in the accompanying financials statements.  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.

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

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

Unrealized holding gains and losses for marketable  securities are excluded from
earnings and reported as a separate component of stockholder's equity.  Realized
gains and losses for securities classified as available-for-sale are reported in
earnings based upon the adjusted cost of the specific security sold. On December
31, 2004, the investments  have been recorded as shown below based upon the fair
value of the marketable securities.

Marketable  securities  classified  as  available  for  sale  consisted  of  the
following as of December 31, 2004:

                                       8
<PAGE>
<TABLE>
<CAPTION>

                                                          Market           Accum.         Number of
         Investee Name                Cost at            Value at        Unrealized     Shares Held at
            (Symbol)            December 31, 2004  December 31, 2004    Gain (Loss)    December 31, 2004
---------------------------------------------------------------------------------------------------------
<S>                                <C>                <C>             <C>                <C>
Marketable securities:
Langley Park Investments, PLC      $ 1,330,000        $  156,718      $ (1,173,282)      572,798

Investments held in escrow:
 Langley Park Investments, PLC     $ 1,330,000        $  156,718      $ (1,173,282)      572,798
                                -------------------------------------------------------------------------
      Totals                       $ 2,660,000        $  313,436      $ (2,346,564)    1,145,596
                                =========================================================================
</TABLE>

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. Issuance of shares for service

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

Reporting segments

Statement of financial  accounting standards No. 131, Disclosures about segments
of an  enterprise  and related  information  (SFAS No.  131),  which  superseded
statement of financial  accounting  standards  No. 14,  Financial  reporting for

                                       9
<PAGE>

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 with the current
period presentation.

Recent Pronouncements

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

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

Had the Company  determined  employee stock based  compensation  cost based on a
fair value  model at the grant date for its stock  options  under SFAS 123,  the
Company's  net  earnings  per share  would have been  adjusted  to the pro forma
amounts  for the  period  ended  December  31,  2004 and 2003,  as follows ($ in
thousands, except per share amounts):

                                                 Period ended December 31,
                                                    2004           2003
                                               -------------     -----------

     Net loss - as reported                    $  (5,626)       $    (367)
     Stock-Based employee compensation
       expense included in reported net
       income, net of tax                             --               --

     Total stock-based employee
       compensation expense determined
       under fair-value-based method for all
       rewards, net of tax                          (362)             (15)
                                               -------------     -----------
     Pro forma net loss                        $  (5,988)        $   (382)
                                               =============     ===========
    (Loss) per share:

     Basic, as reported                        $   (0.03)       $   (0.01)
     Diluted, as reported                      $   (0.03)       $   (0.01)
     Basic, pro forma                          $   (0.08)       $   (0.01)
     Diluted, pro forma                        $   (0.08)       $   (0.01)

                                       10
<PAGE>

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

In December  2004,  the FASB  issued  SFAS  Statement  No.  153,  "Exchanges  of
Nonmonetary  Assets."  The  Statement  is an  amendment of APB Opinion No. 29 to
eliminate the exception for nonmonetary  exchanges of similar  productive assets
and replaces it with a general  exception  for exchanges of  nonmonetary  assets
that do not have commercial substance. The Company believes that the adoption of
this standard will have no material impact on its financial statements.

In March 2004, the Emerging  Issues Task Force  ("EITF")  reached a consensus on
Issue  No.  03-1,  "The  Meaning  of  Other-Than-Temporary  Impairment  and  its
Application  to Certain  Investments."  The EITF  reached a consensus  about the
criteria  that should be used to  determine  when an  investment  is  considered
impaired,  whether that impairment is other-than-temporary,  and the measurement
of an  impairment  loss and how that criteria  should be applied to  investments
accounted for under SFAS No. 115, "ACCOUNTING IN CERTAIN INVESTMENTS IN DEBT AND
EQUITY   SECURITIES."  EITF  03-01  also  included   accounting   considerations
subsequent to the recognition of an other-than-temporary impairment and requires
certain  disclosures  about  unrealized  losses that have not been recognized as
other-than-temporary   impairments.   Additionally,   EITF  03-01  includes  new
disclosure  requirements  for  investments  that are  deemed  to be  temporarily
impaired.  In September  2004, the Financial  Accounting  Standards Board (FASB)
delayed  the  accounting  provisions  of  EITF  03-01;  however  the  disclosure
requirements remain effective for annual reports ending after June 15, 2004. The
Company will evaluate the impact of EITF 03-01 once final guidance is issued.


3. PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2004, consists of the following:



              Scanning Equipment              $ 199,966
              Computer and office equipment     113,514
              Other depreciable assets          102,880
              Software                           76,164
              Furniture and fixture              35,589
                                              ---------
                                                528,113
              Accumulated depreciation         (274,886)
                                              ---------
                                              $ 253,227
                                              =========

4.  RESTRICTED CASH

The Company  entered into a consulting  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 intial  bond was drafted in the
amount of $250,000 and will cover 12 months starting October 1st, 2004.

                                       11
<PAGE>

The Company opened a certificate of deposit for one year, for $ 250,000.

5. EMPLOYEE RECEIVABLES



Notes receivable from employees, unsecured,
   due on June 30, 2019, interest at 4%         $ 262,904

Interest receivable in connection with
   above notes receivable                          21,014
                                                ---------
                                                  283,918
Valuation allowance                              (278,408)
                                                ---------
                                                $   5,510
                                                =========
6. FACTORING PAYABLE

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

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

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

At December 31, 2004, the Company had a factoring payable balance of $136,722.

7. PAYROLL TAXES-ASSUMED IN MERGER

The  Company  assumed  $205,618 of payroll  tax  liabilities  in the merger with
Pacific  Diagnostic  Technologies,  Inc. The balance was $96,661 at December 31,
2004. The Company is delinquent on payments of these payroll tax liabilities.


8. LONG TERM PAYABLES

 Leases payable, interest at 7.9% to 20%, due various dates     $ 249,338
  in 2005 to 2008
 Note payable, DFS, interest at 15.99%, due Jun & Jul 2006          2,482
 Notes payable, AP conversion, interest at 8%, due 2006            36,654
 Note payable - Vendor, monthly installments $404, July 2005        2,831
                                                                 --------
                                                                  291,305
 Current portion                                                  (90,742)
                                                                 ---------
                                                                 $ 200,563
                                       12
<PAGE>

The future maturity of the long-term payables is as follows:

                                      2005                    $ 90,742
                                      2006                     110,699
                                      2007                      89,864
                                                               -------
                                      Total                  $ 291,305
                                                             =========
9. 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 December 31,
2002.  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.

Bondholders  have been asked to exchange their bonds for preferred  stock. As of
December 31, 2004,  holders of $198,000 of the bonds including  accrued interest
had acted on this. The Company  issued Series A Preferred  shares in amount of $
36,000 and Series B  Preferred  shares in the amount of  $162,000 as of December
31, 2004.

10. CONVERTIBLE DEBENTURES

During the period ended December 31, 2004,  the Company  raised capital  through
the issuance of convertible debentures in the amount of $425,000.

One debenture in the amount of $300,000  pays  interest at 5 3/4%  interests and
includes 3,000,000 warrants to purchase common stock for a period of three years
at $1.00.  The "Conversion  Price" shall be equal to the lesser of (i) $0.50, or
(ii) 80% 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) 80% of the
Volume Weighted  Average Price on the Trading Day prior to Holder's  election to
convert  market price of the Company's  common stock prior to  conversion.  Upon
conversion of the debenture,  the fund 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 is due the Company upon declaration
from the Securities and Exchange Commission that the Registration  Statement for
the conversion shares and warrants is effective.

A second  agreement  consists of two  convertible  debentures  each for $100,000
which bears  simple  interest at 10%.  The initial  Debenture  for  $100,000 was
purchased during August 2004. The second Debenture for $100,000 was purchased on
November  11,  2004.  Debentures  are  convertible  into the Common stock of the
Company.  Conversion  Price per share shall be the lower of (i) $0.10  ("Maximum
Base  Price");  or (ii) in the  event  the  Borrower  enters  into an  agreement
subsequent  to execution  of the  Securities  Purchase  Agreement to sell Common


                                       13
<PAGE>

Stock or a  convertible  instrument  that  converts  into Common  Stock prior to
conversion of this Debenture at a price less than the  Conversion  Price of this
Debenture,  then the  Conversion  Price of this  Debenture  shall be immediately
reset to a lower  Conversion  Price equal to that  described  in the  subsequent
agreement.  Warrants are exercisable at $0.12 per share into the Common Stock of
the Company and expire on August 17, 2007.

The  conversion  right of the  debenture  holder with respect to the  individual
debentures   shall  only  exist  upon  the  Company's   registration   statement
registering  the Shares  underlying the debentures  and other  Securities  being
declared effective by the Securities and Exchange Commission. As of December 31,
2004, the criteria to convert the debentures to common stock were not met.

The total interest on these convertible debentures for the period ended December
31, 2004 amounted to $5,881.

11. CONVERTIBLE NOTES

During the period ended December 31, 2004,  the Company  raised capital  through
the issuance of convertible  promissory notes in the amount of $500,000. All the
notes are for a one year period and bear simple interest at the rate of 10%. The
due dates of these notes are from November 26, 2004 through June 4, 2005.

The  notes  plus  any  accrued  interest  through  the  date of  conversion  are
convertible  to the  common  stock of the  Company at $0.06.  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 stock at a price of $0.10.

The  conversion  right of the note holder with respect to the  individual  notes
shall only exist upon:  (i) the  approval of a proxy  statement to be filed with
the  Securities  and  Exchange  Commission  and  approval of an amendment by the
Company's  shareholders  to  authorize  to  200,000,000  the number of shares of
common  stock and (ii) the  Company's  registration  statement  registering  the
Shares underlying the notes and other Securities has been declared  effective by
the Securities and Exchange Commission. As of December 31, 2004, the criteria to
convert the notes to common stock were not met.

The total interest on these  convertible  notes for the period December 31, 2004
amounted to $25,000.

12. LOANS PAYABLE - STOCKHOLDERS

The  Company  has a loan  payable  balance  of $32,300  to the  stockholders  at
December 31, 2004. These loans are interest free, unsecured and due on demand.

13. STOCKHOLDERS' EQUITY

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 year ended June 30, 2003, the Company established the Class L
warrants and initiated the process of  establishing  the Class A Preferred Stock
which underlies these warrants.

During the six months period ended  December 31, 2004,  2,725,652  Common Shares
were issued for services  valued at $367,040 and  4,628,572  Common  Shares were
issued for conversion of loans from shareholders bond valued at $211,756.

                                       14
<PAGE>

During the six months  period ended  December 31, 2004,  $70,000 of  outstanding
notes was converted to 700,000 shares of Common Stock.  In connection  with this
transaction, $28,297 of beneficial conversion feature expense was recorded.

During the six month period ended December 31, 2004,  2,467,824 shares of common
stock were issued  towards the exercise of the options.  The Company  received $
24,967 towards the exercise of the option.

During the six month period ended December 31, 2004,  558,984 shares of Series B
Preferred shares were converted to 2,794,920 Common Shares valued at $111,797.

During  the six month  period  ended  December  31,  2004,  the  Company  issued
2,500,000 shares of common stock for cash for $205,000.

During the six month  period ended  December 31, 2004,  2,200 shares of Series C
Preferred shares were converted to 44,000 Common Shares valued at $2,200.

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

During the six month period  ending  December 31,  2004,  the Company  issued to
490,215 shares to employees valued at $ 85,750.

The Company  agreed to provide  with  respect to the Common Stock as well as the
Common Stock issuable upon exercise of the Warrants certain  registration rights
under the Securities Act;

Upon  surrender  of either a Class J or L  warrant,  the holder is  entitled  to
purchase one share of the Company's stock at the designated  exercise price. For
each warrant class, the number of warrants outstanding,  the exercise price, the
type of underlying stock, and the expiration dates are defined as follows:

Class L - warrants were  established  in March 2003,  with an exercise  price of
$0.25 per share,  an expiration  date of January 14, 2005 and Series A Preferred
as underlying  stock.  As of June 30, 2004,  holders of Class J exchanged  their
warrants for 3,063,432 Class L Warrants.

During the year ended June 30, 2004,  200,000 shares of warrants were issued for
consulting  services for three years beginning February 2004, valued at $41,572.
$32,334 was  amortized  during the six month period ended  December 31, 2004. On
October 19, 2004, the Company granted  5,000,000  warrants to a third party upon
exercising their rights to advance $250,000 to the Company.  The amount advanced
was for a period of six months bearing an annual interest at 5-3/4%. The Company
recorded $ 589,602  as expense  for the cost of the  issuance  of such  warrants
during the period ended  December  31,  2004.  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                                               3 years
Expected volatility                                             90%

                                       15
<PAGE>

b. Common Stock Reserved

At December 31, 2004, common stock was reserved for the following reasons:

Outstanding convertible bond                     151,919 shares
Exercise of Class L warrants                   3,063,432 shares

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

 Outstanding June 30, 2004                     4,263,432
 Issued during the period                      5,500,000
 Exercised                                     2,775,297
                                               ---------
 Outstanding December 31, 2004                 6,988,135
                                               =========

c. Stock Option Agreements

The Company  granted 50,000 stock options to one employee and recorded $1,500 as
compensation expense during the six months period ended December 31, 2004.

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


                                              Number
                                                of
                                              Options
Options                                       --------

Outstanding June 30, 2004                     2,215,000
Granted during the period                        50,000
Exercised                                             0
Expired/forfeited                                     0
                                              ---------
Outstanding December 31, 2004                 2,265,000
                                              =========

d. Stock transactions approved by the shareholders

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

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


                                       16
<PAGE>

accumulated and unpaid dividends thereon at the dividend rate of $0.005 annually
per  share;  Voting  Rights  - one  vote  per  share  on all  matters  requiring
shareholder  vote. At December 31, 2004, the Company had issued 3,982,931 shares
of  Series  A  Preferred  Stock .  These  shares  were  used to pay for  officer
compensation  valued at $ 427,500,  payroll expenses valued at $ 191,502 and for
bond conversion  valued at $ 36,203.  The Company recorded loss on conversion of
debt in  amount  of $  101,372  in the  accompanying  financials  from  Series A
preferred  stock.  The Company has recorded a cumulative  dividend of $7,792 for
the preferred  stockholders for the six month period ended December 31, 2004, in
the accompanying financial statements.

Series B Preferred Stock

The general terms of the Series B Preferred  Stock is as follows:  No par Value;
Liquidation  Preference - $0.25 per share plus any unpaid accumulated dividends;
Dividends - cumulative  annual rate of $0.0005 per share when and as declared by
the Board of Directors; Conversion Rights - convertible to common stock at a 1:5
ratio (i.e. 1 share of Series B Preferred stock is convertible  into 5 shares of
common stock) ; Redemption  Rights - the Company has the right to redeem part or
all of the stock upon 30 days  written  notice at a rate of $0.25 per share plus
all  accumulated  and unpaid  dividends  thereon at the dividend rate of $0.0005
annually per share;  Voting Rights - one vote per share on all matters requiring
shareholder vote. At December 31, 2004, the Company had issued 680,255 shares of
Series B Preferred  Stock valued at $ 162,063..  . The Company  recorded loss on
conversion of debt in amount of $ 484,179 in the  accompanying  financials  from
Series B preferred  stock The Company has recorded a cumulative  dividend of $84
for the preferred stockholders for the six month period ended December 31, 2004,
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 $.0005  annually per share.;  Voting
Rights - one vote  per  share on all  matters  requiring  shareholder  vote.  At
December 31, 2004,  the Company had issued  20,148  shares of Series C Preferred
Stock valued at $ 20,139.    The Company  recorded loss on conversion of debt in
amount of $ 56,423 in the accompanying  financials from Series C preferred stock
The  Company  has  recorded  a  cumulative  dividend  of $3  for  the  preferred
stockholders  for  the  six  month  period  ended  December  31,  2004,  in  the
accompanying financial statements.

The  Company has  recorded a  cumulative  dividend  of $7,879 for the  preferred
stockholders  for  the  six  month  period  ended  December  31,  2004,  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 pending approval of same.

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 period  ended  December 31, 2004.
The Company paid $14,837 interest during the period ended December 31, 2004.

                                       17
<PAGE>

15. COMMITMENTS AND CONTINGENCIES

a) Operating Leases  Effective July 1, 2004 the Company  relocated its 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
$1,384 per month.  For the period ended December 31, 2004 rent expense for these
operating leases totaled $53,218.

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

2005                $  80,507
2006                   82,202
2007                   83,897
2008                   42,372
                      ---------
                    $  288,978
                      =========

b) Securities and Exchange Commission Inquiry

On  September  17,  2002,  the  Company  was  advised  by the  staff of the U.S.
Securities and Exchange  Commission that they will recommend that the Commission
file civil injunctive

Lawsuits against the Company and its president,  Thomas W. Sims. The suits would
allege that the Company violated Section 17(a) of the Securities Act of 1933 and
Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5,
13a-1,  and 13a-13,  based on false and misleading  statements in press releases
disseminated by the Company on October 22, 2001 and October 25, 2001,  regarding
the Company's investment in PanaMed Corp. and the press releases disseminated on
January  8, 2002 and March 20,  2002,  and  failure  to timely  file  annual and
quarterly  reports with the  Commission.  On March 25, 2003, the Company signed,
without admitting or denying the allegations,  a proposed  settlement  agreement
with the U.S. Securities and Exchange  Commission,  which permanently  restrains
and enjoins the Company from engaging in acts which would constitute  violations
of these  regulations  in the future.  On August 6, 2003,  a final  judgment was
entered by the U.S. District Court, Central District of California,  against the
Company which  permanently  enjoined the Company from violating Section 10(b) of
the Exchange  Act and Rule 10b-5  promulgated  thereunder  by using any means or
instrumentality  of  interstate  commerce,  or of the mails,  or of any national
securities  exchange:  (A) to employ any device,  scheme or artifice to defraud;
(B) to make any untrue  statement  of a  material  fact or  omitting  to state a
material fact  necessary in order to make the  statements  made, in the light of
the circumstances  under which they were made, not misleading;  or (C) to engage
in any act, practice, or course of business which operates or would operate as a
fraud or deceit upon any person,  in connection with the purchase or sale of any
security.  Further,  the final  judgment  permanently  enjoined the Company from
violating  Section  13(a)  of the  Exchange  Act  and  Rules  13a-1  and  13a-13
promulgated  thereunder,  by failing to file with the  Commission  in accordance
with Commission rules and regulations, information and documents required by the
Commission  to keep current  information  and  documents  required in or with an
application  or  registration  statement  filed  pursuant  to  Section 12 of the
Exchange Act or annual or quarterly reports as the Commission has prescribed.

c) Litigation

On April 16, 2004, a creditor of the Company  filed suit against the Company for
$22,662  for goods  provided.  The  Company  filed a  counterclaim  against  the
creditor on August 23, 2004. On January 18, 2005, the Court granted Judgment for
the sum of $21,000 in favor of the  creditor.  The amount of Judgment of $21,000
is  included  in accounts  payable  and  accrued  expenses  in the  accompanying
financial statements as of December 31, 2004.

                                       18
<PAGE>

16. BASIC AND DILUTED NET LOSS PER SHARE

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

Weighted  average  number of shares used to compute  basic and diluted  loss per
share for the period  ended  December  31,  2004 and 2003 are the same since the
effect of dilutive securities is anti-dilutive.

17. GOING CONCERN

The  accompanying  financial  statements  have been prepared in conformity  with
generally accepted accounting principles,  which contemplate continuation of the
Company as a going concern.  This basis of accounting  contemplates the recovery
of the Company's  assets and the  satisfaction  of its liabilities in the normal
course of  business.  Through  December  31,  2004,  the  Company  had  incurred
cumulative losses of $28,687,728 including net losses of $5,626,663 and $366,598
for the periods ended  December 31, 2004 and 2003  respectively.  In view of the
matters described in the preceding paragraph,  recoverability of a major portion
of the  recorded  asset  amounts  shown  in the  accompanying  balance  sheet is
dependent upon continued  operations of the Company,  which in turn is dependent
upon the Company's ability to raise additional capital,  obtain financing and to
succeed in its future  operations.  The financial  statements do not include any
adjustments  relating to the recoverability and classification of recorded asset
amounts or amounts and  classification  of  liabilities  that might be necessary
should the Company be unable to continue as a going concern.

Management  has taken the following  steps to revise its operating and financial
requirements,  which it believes are  sufficient to provide the Company with the
ability to continue as a going concern.  Management devoted  considerable effort
during the period  ended  December 31, 2004,  towards (i)  obtaining  additional
equity financing and (ii) evaluation of its distribution and marketing methods.

18. SUBSEQUENT EVENTS

On January 10, 2005,  328,000 Common Shares were issued to an investor  pursuant
to the investor's conversion of Series A Preferred stock.

On January 12, 2005, 250,000 Common shares were issued to an investor in regards
to stock purchase on October 12, 2004.


                                       19
<PAGE>

On January 14, 2005, Quintek Technologies, Inc. entered into an agreement with a
consultant to provide  consulting  services.  In  consideration  of 12 months of
consulting  services,  consultant shall receive 1,800,000 shares of Common Stock
in Quintek Technologies,  Inc. The 1,800,000 shares will be issueable under rule
144 (restricted  stock) and shall have a one year restriction before the sale of
any shares, and after two years shall be unrestricted under rule 144k.

On February 1, 2005,  Quintek entered into an addendum to Convertible  Debenture
and Warrant to Purchase Common Stock by and between Quintek  Technologies,  Inc.
and Golden Gate Investors. Under this agreement,  Quintek received $100,000 as a
prepayment towards the exercise of Warrant Shares under the Warrant.

On February 2, 2005, in consideration of investor  relations  services,  Quintek
issued 6,250,000 Warrants to purchase Common Stock in Quintek Technologies, Inc.
at $0.18.  The  Warrants  shall become  exercisable  as follows:  (a)  3,125,000
Warrants are vested and fully exercisable; and (b) 3,125,000 Warrants shall vest
and become exercisable on July 1, 2005. The Warrants shall expire on February 1,
2008.

On February 8, 2005,  Quintek entered into a Master Lease Agreement with Vencore
Solutions  LLC  whereby  Quintek has been  approved  for  $500,000 in  equipment
leasing from Vencore Soutions LLC. The term of the lease is 28 months for leased
hardware with monthly lease payments of 4.3% of the leased value amount.

Item 2. Management's Discussion and Analysis

2.1 Results of Operations

Our revenues  totaled  $322,413 and $77,248 for the three months ended  December
31, 2004 and 2003,  and $436,679 and $185,425 for the six months ended  December
31, 2004 and 2003 respectively, an increase of $245,165 for the three months and
$251,254 for the six months ended  December 31, 2004,  primarily due to changing
the  company's  sales focus to the services  business.  Revenues in the previous
period  resulted  primarily  from sales of equipment,  aperture card media,  and
maintenance  services.  Revenues  in this  period  included  $272,277  from  the
business optimization services.

For the  three  months  ended  December  31,  2004 and  2003,  cost of sales was
$271,773 and $60,673, respectively, an increase of $211,100 in 2004. For the six
months  ended  December  31,  2004 and  2003,  cost of sales  was  $356,254  and
$113,583,  respectively,  an increase of $242,671 in 2004.  Cost of sales during
2004 consisted  primarily of labor,  facility and equipment  lease costs whereas
cost of sales during 2003 consisted primarily of labor and production costs.

Operating expenses totaled $3,774,136 and $4,976,245 for the three month and six
month  period  ended  December 31, 2004 as compared to $261,560 and $427,458 for
the same period in 2003, a $3,512,576 and $4,548,787 increase in 2004, primarily
due to a decline of $2,346,564 in value of  marketable  securities,  increase in
sales related expenses and stock-based compensation for consulting services.

Non-operating expenses totaled $700,047 and $722,164 for the three and six month
period  ended  December  31, 2004 as compared to $7,904 and $10,982 for the same
period in 2003, a $692,143 and $711,082  increase in 2004  primarily due to loss
of conversion of debt to equity.

During the three months ended  December 31, 2004, the Company billed on five (5)
contracts  for  document  services,  18  maintenance  contacts,  two (2) network
upgrades and 12,000  aperture cards compared to the three months ended September
30,  2004,  the  Company  billed on 3  contracts  for  document  services,  (19)
maintenance contracts, (1) network upgrades, and 18,000 aperture cards.



                                       20
<PAGE>
2.2 Liquidity and capital resources

The Company has historically  financed operations from the issuance of debt, the
sale of common stock and the  conversion of common stock  warrants.  On December
31, 2004, the Company had cash on hand of $4,052 and working  capital deficit of
$1,882,166 as compared to cash on hand of $15,600 and working capital deficit of
$2,127,980 on June 30, 2004.

Net cash used in  operating  activities  of $825,185 and $115,131 for six months
ended  December  31, 2004 and 2003,  respectively,  is  attributed  primarily to
decline in market value of marketable securities,  loss on conversion of debt to
equity,  an  increase  in  stock-based  compensation,   issuance  of  stock  for
consulting services and accounts payable and other liabilities.

Net cash used in investing activities of $178,181 and $15,712 for the six months
ended  December 31, 2004 and 2003 is primarily  related to purchase of equipment
made during the periods.

Net cash  provided by financing  activities of $991,818 and $112,330 for the six
months  ended  December 31, 2004 and 2003 is based  primarily  on proceeds  from
issuance  of  commons  stock and  warrants,  proceeds  from  line of credit  and
issuance of  debentures,  offset by payments of factoring  payable.  The Company
assumed certain payroll tax liabilities as the result of the merger with Pacific
Diagnostic Technologies, Inc., on January 14, 1999. The Company has negotiated a
payment plan with the Internal  Revenue Service to pay the payroll taxes assumed
in the merger.

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, it
may  need to  sell  certain  assets,  enter  into  new  strategic  partnerships,
reorganize the Company,  or merge with another  company to effectively  maintain
operations.  The  Company's  audit for the years  ended  June 30,  2004 and 2003
contained a going concern qualification.

Item 3. Controls and Procedures

The Company's Chief Executive Officer and Chief Financial Officer (collectively,
the  "Certifying  Officers") are responsible  for  establishing  and maintaining
disclosure controls and procedures for the Company. Such officers have concluded
(based on their  evaluation of these controls and procedures as of a date within
90 days of the filing of this report) that the Company's disclosure controls and
procedures are effective to ensure that information  required to be disclosed by
the Company in this report is  accumulated  and  communicated  to the  Company's
management,  including its principal executive officers as appropriate, to allow
timely decisions  regarding required  disclosure.  The Certifying  Officers also
have indicated that there were no significant  changes in the Company's internal
controls  or  other  factors  that  could  significantly  affect  such  controls
subsequent to the date of their evaluation, and there were no corrective actions
with regard to significant deficiencies and material weaknesses.

                                       21
<PAGE>

                          PART II -- OTHER INFORMATION

Item 1. Legal Proceedings

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. The Company is contemplating its
course of action as of the date of filing of this Report.

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

On October 4, 2004,  Quintek sold 250,000  shares of common stock to an investor
in consideration of $25,000.  The investor was also granted a three-year warrant
to purchase 250,000 shares of common stock at an exercise price of $0.15.

On October 16, 2004, Quintek sold a $250,000 promissory note, 5.75% interest per
annum,  to an accredited  investor.  The note is due six months from the date of
issuance.  Additionally, the investor was granted 5,000,000 warrants to purchase
common stock at $0.10, expiring October 16, 2007.

On  November  24,  2004,  Quintek  issued  54,545  shares of  common  stock to a
consultant for services provided pursuant to a consulting agreement.

On November  24, 2004,  Quintek  issued  2,794,920  shares of common stock to an
investor pursuant to the investor's conversion of Series B convertible preferred
stock.

On December 3, 2004,  Quintek  issued  500,000  shares of common stock to Gerald
Hannahs pursuant to an exercise of warrants for $23,000.

On  December  13,  2004,  Quintek  issued  7,500  shares  of  common  stock to a
consultant for services rendered pursuant to a consulting agreement.

On December  13,  2004,  Quintek  issued  2,000  shares of Series A  convertible
preferred stock to three investors in settlement of debt owed to the investors.

On December 22, 2004,  Quintek issued 1,967,824 shares of common stock to Andrew
Haag,  an officer and director of Quintek,  pursuant to an exercise of a warrant
on a cashless basis.

Subsequent Events

On January 10, 2005,  328,000 Common Shares were issued to an investor  pursuant
to the investor's conversion of Series A Preferred stock.

On January 12, 2005, 250,000 Common shares were issued to an investor in regards
to stock purchase on October 12, 2004.

On January 14, 2005, Quintek Technologies, Inc. entered into an agreement with a
consultant to provide  consulting  services.  In  consideration  of 12 months of
consulting  services,  consultant shall receive 1,800,000 shares of Common Stock
in Quintek Technologies,  Inc. The 1,800,000 shares will be issueable under rule
144 (restricted  stock) and shall have a one year restriction before the sale of
any shares, and after two years shall be unrestricted under rule 144k.

                                       22
<PAGE>

On February 1, 2005,  Quintek entered into an addendum to Convertible  Debenture
and Warrant to Purchase Common Stock by and between Quintek  Technologies,  Inc.
and Golden Gate Investors. Under this agreement,  Quintek received $100,000 as a
prepayment towards the exercise of Warrant Shares under the Warrant.

On February 2, 2005, in consideration of investor  relations  services,  Quintek
issued 6,250,000 Warrants to purchase Common Stock in Quintek Technologies, Inc.
at $0.18.  The  Warrants  shall become  exercisable  as follows:  (a)  3,125,000
Warrants are vested and fully exercisable; and (b) 3,125,000 Warrants shall vest
and become exercisable on July 1, 2005. The Warrants shall expire on February 1,
2008.

On February 8, 2005,  Quintek entered into a Master Lease Agreement with Vencore
Solutions  LLC  whereby  Quintek has been  approved  for  $500,000 in  equipment
leasing from Vencore Soutions LLC. The term of the lease is 28 months for leased
hardware with monthly lease payments of 4.3% of the leased value amount.
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

N/A

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

During the three  month  period  ending  December  31,  2004,  no  matters  were
submitted to a vote of security holders.

Item 5. Other Information

N/A

Item 6. Exhibits

(a) 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

                                       23
<PAGE>



Signatures

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

                                    QUINTEK TECHNOLOGIES, INC.





Date: February 14, 2005             /s/ ROBERT STEELE
                                    --------------------------------------------
                                    Robert Steele, Chairman
                                    and Chief Executive Officer

Date: February 14, 2005             /s/ ANDREW HAAG
                                    --------------------------------------------
                                    Andrew Haag, Chief Financial Officer


                                       24