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| Nevada                                                              | 95-4696799                           |
|---------------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| Large accelerated filer       ̈               | Accelerated filer                    ̈ |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
| Non-accelerated filer         ̈               | Smaller reporting company   x                                                                                         |
|  (Do not check if a smaller reporting company)         |                                                                                                                            |

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VEMICS

| Part I Financial Information | Page                                                                                  |
|------------------------------|---------------------------------------------------------------------------------------|
|                         |                                                                                  |   |   |
| Item 1.                      | Financial Statements                                                                  | 1 |
|                         |                                                                                  | Condensed Consolidated Balance Sheets as of March 31, 2010 (unaudited) and June 30, 2009 (audited) | 1 |
|                         |                                                                                  | Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2010 and 2009 (unaudited) | 2 |
|                         |                                                                                  | Condensed Consolidated Statements of Operations for the Nine Months Ended March 31, 2010 and 2009 (unaudited) | 3 |
|                         |                                                                                  | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended  March 31, 2010 and 2009 (unaudited) | 4 |
|                         |                                                                                  | Financial Footnotes  | 5 |
|                         |                                                                                  |   |   |
| Item 2.                      | Management's Discussion and Analysis of Financial Condition and Results of Operations | 8 |
|                         |                                                                                  |   |   |
| Item 3.                      | Quantitative and Qualitative Disclosure About Market Risk                             | 13 |
|                         |                                                                                  |   |   |
| Item 4T.                     | Controls and Procedures                                                               | 13 |
|                         |                                                                                  |   |   |
| Part II Other Information    |                                                                                  |
|                         |                                                                                  |   |   |
| Item 2                       | Unregistered Sales of Equity Securities and Use of Proceeds                           | 14 |
|                         |                                                                                  |   |   |
| Item 6.                      | Exhibits                                                                              | 14 |
|                         |                                                                                  |   |   |
| Signatures                   | 15                                                                                    |

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ITEM 

VEMICS

|                                                                                                                                                                                 |   | March 31, 2010 |        |   | June 30, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|---------------|--------|
| ASSETS                                                                                                                                                                               |   | unaudited      |        |   | Audited       |   |
| Current assets:                                                                                                                                                                      |   |           |        |   |          |   |
| Cash and cash equivalents –– interest bearing                                                                                                                            |   | $              | 6,744       |   |          | $      | 52,615 |   |
| Advances                                                                                                                                                                             |   |           | 3,714       |   |          |   | - |   |
| Accounts receivable, net of allowance for doubtful accounts of $5,000 at March 31, 2010 and June 30, 2009, respectively                                                         |   |           | 3,214       |   |          |   | 3,214 |   |
| Total Current Assets                                                                                                                                                                 |   |           | 13,672      |   |          |   | 55,829 |   |
|                                                                                                                                                                                 |   |           |        |   |          |   |   |   |
| Property and equipment, net                                                                                                                                                          |   |           | 8,603       |   |          |   | 16,544 |   |
|                                                                                                                                                                                 |   |           |        |   |          |   |   |   |
| Other Assets                                                                                                                                                                         |   |           |        |   |          |   |   |   |
| Deferred Expenses                                                                                                                                                                    |   |           | 60,798      |   |          |   | 60,798 |   |
| Technology and Medical Software, net                                                                                                                                                 |   |           | 5,480,478   |   |          |   | 6,814,563 |   |
| Goodwill                                                                                                                                                                             |   |           | 681,673     |   |          |   | 681,673 |   |
|                                                                                                                                                                                 |   |           | 6,222,949   |   |          |   | 7,557,035 |   |
| Total Assets                                                                                                                                                                         |   | $              | 6,245,224   |   |          | $      | 7,629,408 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                 |   |           |        |   |          |   |   |   |
| Current liabilities:                                                                                                                                                                 |   |           |        |   |          |   |   |   |
| Notes payable –– banks                                                                                                                                                   |   | $              | 73,267      |   |          | $      | 87,354 |   |
| Current portion of long-term debt                                                                                                                                                    |   |           | 4,098,673   |   |          |   | 3,624,198 |   |
| Accounts payable and accrued expenses                                                                                                                                                |   |           | 1,803,113   |   |          |   | 1,585,901 |   |
| Deferred income                                                                                                                                                                      |   |           | 60,000      |   |          |   | 121,620 |   |
| Total Current Liabilities                                                                                                                                                            |   |           | 6,035,053   |   |          |   | 5,419,073 |   |
| Capital long-term liabilities                                                                                                                                                        |   |           |        |   |          |   |   |   |
| Long-term notes payable                                                                                                                                                              |   |           | 1,305,198   |   |          |   | 1,268,996 |   |
| Total Liabilities                                                                                                                                                                    |   |           | 7,304,251   |   |          |   | 6,688,069 |   |
| Stockholders’ Equity                                                                                                                                                           |   |           |        |   |          |   |   |   |
| Common stock,  par value $001 per share, authorized 200,000,000Issued and outstanding 150,130,398 and 114,562,000 shares at March 31, 2010 and June 30, 2009, respectively |   |           | 150,130     |   |          |   | 114,562 |   |
| Additional Paid in Capital                                                                                                                                                           |   |           | 33,517,399  |   |          |   | 30,962,043 |   |
| Less: Treasury stock, 6,868,195 and 368,407 shares at March 31, 2010 and June 30, 2009, respectively                                                                            |   |           | (1,158,195  | )      |          |   | (508,195 | ) |
| Accumulated deficit                                                                                                                                                                  |   |           | (33,604,361 | )      |          |   | (29,627,071 | ) |
| Total Stockholders’ Equity (Deficit)                                                                                                                                           |   |           | (1,095,027  | )      |          |   | 941,339 |   |
| Total Liabilities and Stockholders’ Equity (Deficit)                                                                                                                           |   | $              | 6,245,224   |   |          | $      | 7,629,408 |   |

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VEMICS

|                                                    |   | For the three  |                                                         |   | For the three  |   |
|---------------------------------------------------------|--------|----------------|--------------------------------------------------------------|--------|----------------|--------|
|                                                    |   | months ended   |                                                         |   | months ended   |   |
|                                                    |   | March 31, 2010 |                                                         |   | March 31, 2009 |   |
|                                                    |   | unaudited      |                                                         |   | unaudited      |   |
|                                                    |   |           |                                                         |   |           |   |
| Revenues:                                               |   | $              | 5,372                                                        |   |           | $      | 131,707 |   |
| Cost of Services                                        |   |           | 1,325                                                        |   |           |   | 68,877 |   |
| Gross Profit                                            |   |           | 4,047                                                        |   |           |   | 62,830 |   |
|  Expenses:                                         |   |           |                                                         |   |           |   |   |   |
| Consulting, commissions and travel                      |   |           | 16,428                                                       |   |           |   | 82,556 |   |
| Operational fees and expenses                           |   |           | 263,050                                                      |   |           |   | 166,676 |   |
| Professional fees                                       |   |           | 31,850                                                       |   |           |   | 94,863 |   |
| Payroll and related taxes                               |   |           | 230,201                                                      |   |           |   | 259,436 |   |
| Depreciation and amortization                           |   |           | 508,413                                                      |   |           |   | 518,821 |   |
| Production, advertising, brochures and public relations |   |           | 39,508                                                       |   |           |   | 50,214 |   |
| Total Expenses                                          |   |           | 1,089,440                                                    |   |           |   | 1,172,556 |   |
| Loss before other income/(expenses)                     |   |           | (1,085,393                                                   | )      |           |   | (1,109,736 | ) |
|  Other Income/(Expenses):                          |   |           |                                                         |   |           |   |   |   |
| Common shares returned to treasury                      |   |           | 650,000                                                      |   |           |   |   |   |
| Extinguishment of debt                                  |   |           | 270,000                                                      |   |           |   |   |   |
| Redemption Fee                                          |   |           |          (7,500 | )      |           |   | (121,111 | ) |
| Interest expense                                        |   |           | (114,510                                                     | )      |           |   | (47,458 | ) |
| Total Other Income/(Expenses)                           |   |           | 797,990                                                      | )      |           |   | (168,596 | ) |
|                                                    |   |           |                                                         |   |           |   |   |   |
|                                                    |   |           |                                                         |   |           |   |   |   |
| Net loss available to common stockholders               |   | $              | (287,403                                                     | )      |           | $      | (1,278,305 | ) |
|                                                    |   |           |                                                         |   |           |   |   |   |
|                                                    |   |           |                                                         |   |           |   |   |   |
| Net loss per share, to common stockholders              |   | $              | (0.00                                                        | )      |           | $      | (0.02 | ) |
| Weighted average number of shares, basic and diluted    |   |           | 138,785,317                                                  |   |           |   | 83,093,198 |   |

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VEMICS

|                                                    |   | For the nine   |        |   | For the nine   |   |
|---------------------------------------------------------|--------|----------------|-------------|--------|----------------|--------|
|                                                    |   | months ended   |        |   | months ended   |   |
|                                                    |   | March 31, 2010 |        |   | March 31, 2009 |   |
|                                                    |   | unaudited      |        |   | unaudited      |   |
|                                                    |   |           |        |   |           |   |
| Revenues:                                               |   | $              | 136,786     |   |           | $      | 293,217 |   |
| Cost of Services                                        |   |           | 9,262       |   |           |   | 92,417 |   |
| Gross Profit                                            |   |           | 127,524     |   |           |   | 200,800 |   |
|                                                    |   |           |        |   |           |   |   |   |
| Expenses:                                               |   |           |        |   |           |   |   |   |
| Stock Issued for Fees and Services                      |   |           | 611,393     |   |           |   | - |   |
| Consulting, commissions and travel                      |   |           | 38,615      |   |           |   | 304,060 |   |
| Operational fees and expenses                           |   |           | 608,176     |   |           |   | 484,217 |   |
| Professional fees                                       |   |           | 129,265     |   |           |   | 91,404 |   |
| Payroll and related taxes                               |   |           | 685,921     |   |           |   | 773,120 |   |
| Depreciation and amortization                           |   |           | 1,521,277   |   |           |   | 1,510,496 |   |
| Production, advertising, brochures and public relations |   |           | 125,716     |   |           |   | 84,211 |   |
| Total Expenses                                          |   |           | 3,572,144   |   |           |   | 3,350,964 |   |
| Loss before other income/(expenses)                     |   |           | (3,592,839  | )      |           |   | (3,150,164 | ) |
|                                                    |   |           |        |   |           |   |   |   |
| Other Income/(Expenses):                                |   |           |        |   |           |   |   |   |
|                                                    |   |           |        |   |           |   |   |   |
| Extinguishment of debt                                  |   |           | 270,000     |   |           |   |   |   |
| Interest Income                                    |   |           |  -     |   |           |   | 4,128 |   |
| Redemption Fee                                          |   |           | (328,792    | )      |           |   | (129,549 | )  |
| Interest expense                                        |   |           | (325,659    | )      |           |   | (117,150 | ) |
| Total Other Income/(Expenses)                           |   |           | (384,451    | )      |           |   | (242,571 | ) |
|                                                    |   |           |        |   |           |   |   |   |
| Net loss available to common stockholders               |   | $              | (3,977,290  | )      |           | $      | (3,392,735 | ) |
| Net loss per share, basic and diluted                   |   | $              | (0.03       | )      |           | $      | (0.04 | ) |
| Weighted average number of shares, basic and diluted    |   |           | 130,118,307 |   |           |   | 81,633,645 |   |

----

VEMICS

|                                          |   | For the nine   |       |    | For the nine   |   |
|-----------------------------------------------|--------|----------------|------------|---------|----------------|--------|
|                                          |   | months ended   |       |    | months ended   |   |
|                                          |   | March 31, 2010 |       |    | March 31, 2009 |   |
|                                          |   | unaudited      |       |    | unaudited      |   |
| Cash Flows From Operating Activities:         |   |           |       |    |           |   |
| Receipts from customers                       |   | $              | 75,166     |    |           | $      | 385,554 |   |
| Payments to suppliers, salaries               |   |           | (1,363,892 | )       |           |   | (2,274,633 | ) |
| Interest Received                             |   |           | -     |    |           |   | 4,128 |   |
| Interest paid                                 |   |           | (47,386    | )       |           |   | (15,179 | ) |
| Net Cash Used in Operating Activities         |   |           | (1,336,112 | )       |           |   | (1,900,130 | ) |
|                                          |   |           |       |    |           |   |   |   |
| Cash Flows Used in Investing Activities:      |   |           |       |    |           |   |   |   |
| Purchase of Technology & Medical Software |   |           | (180,000   | )  |           |   | (640,000 | ) |
| Purchase of equipment                         |   |           |       |    |           |   | (271) |   |
| Net Cash Used in Investing Activities         |   |           | (180,000   | )  |           |   | (640,271 | ) |
|                                          |   |           |       |    |           |   |   |   |
| Cash Flows From Financing Activities:         |   |           |       |    |           |   |   |   |
| Payments on bank loan                         |   |           | (14,087    | )  |           |   | - |   |
| Payments on notes payable                     |   |           | (25,000    | )       |           |   | (230,515 | ) |
| Short term loans proceeds                     |   |           | 1,509,328  |    |           |   | 1,084,000 |   |
| Short term loans paid                         |   |           |       |    |           |   | (212,980 | ) |
| Sale of common stock                          |   |           | -          |    |           |   | 1,700,000 |   |
| Net Cash Provided by Financing Activities     |   |           | 1,470,241  |    |           |   | 2,340,505 |   |
|                                          |   |           |       |    |           |   |   |   |
| Net Increase/(Decrease) in Cash               |   |           | (45,871    | )       |           |   | (199,896 | ) |
|                                          |   |           |       |    |           |   |   |   |
| Cash at the Beginning of Period               |   |           | 52,615     |    |           |   | 212,566 |   |
|                                          |   |           |       |    |           |   |   |   |
| Cash at End of Period                         |   | $              | 6,744      |    |           | $      | 12,670 |   |

| Reconciliation of Net Loss to Net Cash:   Used by Operating Activities |   |   |          |    |   |   |
|---------------------------------------------------------------------------------------|--------|--------|---------------|---------|--------|--------|
| Net Loss                                                                              |   | $      | (3,977,290    | )  |   | $      | (3,392,735 | ) |
| Adjustments to reconcile net income/(loss) to net cash                                |   |   |          |    |   |   |   |   |
| Used by operating activities                                                          |   |   |          |    |   |   |   |   |
| Depreciation & Amortization                                                       |   |   | 1,521,277     |    |   |   | 1,510,494 |   |
| Shares issued in exchange for services                                                |   |   | 611,393       |    |   |   |   |   |
| Other income – Extinguishment of debt                                           |   |   | (270,000      | )  |   |   |   |   |
| Loan accretion                                                                        |   |   | 328,792       |    |   |   |   |   |
| Changes in:                                                                           |   |   |          |    |   |   |   |   |
| Trade Receivables                                                                     |   |   |          |    |   |   | 33,407  |   |
| Advance                                                                               |   |   |          |    |   |   | (5,000)  |   |
| Deferred Expense                                                                      |   |   | -             |    |   |   | (91,197 | ) |
| Accounts payable and accrued expenses                                                 |   |   | 236,776       |    |   |   | (245,551 | ) |
| Redemption fee                                                                        |   |   |          |    |   |   | 129,549  |   |
| Accrued interest                                                                      |   |   | 274,560  |    |   |   | 101,971  |   |
| Deferred income                                                                       |   |   | (61,620       | )  |   |   | 58,930 |   |
| Net Cash Used by Operating Activities                                                 |   |   | (1,336,112    | )       |   |   | (1,900,130 | ) |
|                                                                                  |   |   |          |    |   |   |   |   |
|                                                                                  |   |   |          |    |   |   |   |   |

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VEMICS

----

| No. shares |       |   | Expiration |   |      | Exercise Price |   |
|------------|------------|--------|------------|--------|-----------|----------------|--------|
|       | 778,419    |   |       |   | 2010      |           |   | $ | 1.50 |   |
|       | 2,206,666  |   |       |   | 2010-2011 |           |   | $ | .60 |   |
|       | 1,430,000  |   |       |   | 2011      |           |   | $ | .24 |   |
|       | 1,541,667  |   |       |   | 2011      |           |   | $ | .12 |   |
|       | 4,000,000  |   |       |   | 2013      |           |   | $ | .04 |   |
|       | 13,620,000 |   |       |   | 2013-2014 |           |   | $ | .05 |   |
|       | 1,000,000  |   |       |   | 2014      |           |   | $ | .01 |   |
|       | 20,161,667 |   |       |   |      |           |   |   |   |   |

|                                                               |   | 3/31/2010 |       |   | 6/30/2009 |   |
|--------------------------------------------------------------------|--------|-----------|------------|--------|-----------|--------|
| Technology and medical software                               |   | $         | 10,008,893 |   |      | $      | 10,008,893 |   |
| Less: Accumulated Amortization       |   |      | 4,528415   |   |      |   | 3,194,330 |   |
|                                                               |   | $         | 5,480,478  |   |      | $      | 6,814,563 |   |

----

| Convertible Debentures               |   | $      | 3,919,537  |   |
|--------------------------------------|--------|--------|------------|--------|
| Notes Payable                        |   |   | 1,484,334  |   |
| Total                                |   | $      | 5,403,871  |   |
| Less: portion in current liabilities |   |   | (4,098,673 | )      |
| Balance of long term debt            |   | $      | 1,305,198  |   |
|                                 |   |   |       |   |
| Long term debt matures as follows:   |   |   |       |   |
| June 30, 2011                        |   | $      | 1,305,198  |   |

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ITEM 

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|                                            |   | Three Months Ended March 31 |
|-------------------------------------------------|--------|-----------------------------|
|                                            |   | (unaudited)                 |
|                                            |   | 2010                        |   | 2009 |
|                                            |   |                        |   |   |   |   |
| Net Sales and Revenues                          |   | $                           | 5,372 |   |   | $ | 131,707 |   |
| Cost of Services                                |   |                        | 1,325 |   |   |   | 68,877 |   |
| Gross Profit                                    |   |                        | 4,047 |   |   |   | 62,830 |   |
|                                            |   |                        |   |   |   |   |   |   |
| Operational General and Administrative Expenses |   |                        | 581,027 |   |   |   | 590,915 |   |
| Depreciation and amortization                   |   |                        | 508,413 |   |   |   | 518,821 |   |
| Total Expenses                                  |   |                        | 1,089,440 |   |   |   | 1,172,556 |   |
| Loss before other income (expense)              |   | $                           | (1,085,393 | ) |   | $ | (1,109,736 | ) |

----

|                                             |   | Nine Months Ended March 31 |
|--------------------------------------------------|--------|----------------------------|
|                                             |   | (unaudited)                |
|                                             |   | 2010                       |   | 2009 |
|                                             |   |                       |   |   |   |   |
| Revenues                                         |   | $                          | 136,786 |   |   | $ | 293,217 |   |
| Cost of Services                                 |   |                       | 9,262 |   |   |   | 92,1740 |   |
| Gross Profit                                     |   |                       | 127,524 |   |   |   | 200,800 |   |
|                                             |   |                       |   |   |   |   |   |   |
| Operational, General and Administrative Expenses |   |                       | 2,199,095 |   |   |   | 1,840,468 |   |
| Depreciation and amortization                    |   |                       | 1,521,277 |   |   |   | 1,510,496 |   |
| Total Expenses                                   |   |                       | 3,720,363 |   |   |   | 3,350,964 |   |
| Loss before other income (expense)               |   | $                          | (3,592,839 | ) |   | $ | (3,150,164 | ) |

----

----

ITEM 

ITEM 

----

ITEM 

ITEM 6.  EXHIBITS

| 31.1 | Certification of the President and Chief Executive Officer pursuant to Rule 13a-14(a). |
|------|----------------------------------------------------------------------------------------|

| 31.2 | Certification of the Chief Financial Officer and Treasurer pursuant to Rule 13a-14(a). |
|------|----------------------------------------------------------------------------------------|

| 32 | Certification of the President and Chief Executive Officer and Chief Financial Officer and Treasurer pursuant to 18 U.S.C. ss.1350, as adopted pursuant to ss.906 of the Sarbanes-Oxley Act of 2002. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

SIGNATURES

|               | Vemics, Inc.(Registrant) |                                                                                                           |
|--------------------|--------------------------|----------------------------------------------------------------------------------------------------------------|
|               |                     |                                                                                                           |   |
| Date: May 24, 2010 | By:                      | /s/ Fred Zolla                 |   |
|               |                     | Fred Zolla                                                                                                     |   |
|               |                     | President and Chief Executive Officer                                                                          |   |
|               |                     | (Principal Executive Officer)                                                                                  |   |

|                           |   |                                                                                                |   |
|--------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|
| Date: May 24, 2010   | By:    | /s/ Craig Stout               |   |
|                           |   | Craig Stout                                                                                         |   |
|                           |   | Interim Chief Financial Officer                                                                     |   |
|                           |   | (Principal Accounting Officer)                                                                      |   |

----