<PAGE>

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

                                   FORM 10-QSB

(Mark One)

  X   QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT
----- OF 1934 (No fee required)

                For the quarterly period ended September 30, 2006

      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
----- EXCHANGE ACT OF 1934

            For the transition period from ___________ to ___________

Commission file number 0-15113

                                  VERITEC, INC.
             (Exact name of registrant as specified in its charter)

                                     NEVADA
         (State or other jurisdiction of incorporation or organization)

                                   95-3954373
                      (IRS Employer Identification Number)

               2445 Winnetka Avenue North, Golden Valley, MN 55427
               (Address of principal executive offices, zip code)

                                  763-253-2670
              (Registrant's telephone number, including area code)

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

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

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

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

<PAGE>

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date. As of September 30, 2006, the
Company had:

                        Number of Shares of Common Stock
                                   15,078,598

     Transition Small Business Disclosure Format (check one): Yes       No   X
                                                                  -----    -----


                                       ii

<PAGE>

Table of Contents

                                   FORM 10-QSB
                                  VERITEC, INC.

                                      INDEX

<TABLE>
<CAPTION>
                                                                         Page(s)
                                                                         -------
<S>                                                                      <C>
PART I.  FINANCIAL INFORMATION                                               1

Item 1.  Financial Statements                                                1
Item 2.  Management's Discussion and Analysis or Plan of Operations          7
Item 3.  Controls and Procedures                                            10

PART II. OTHER INFORMATION                                                  11

Item 1.  Legal Proceedings                                                  11
Item 1A. Risk Factors                                                       13
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds        14
Item 3.  Defaults Upon Senior Securities                                    14
Item 4.  Submission of Matters to a Vote of Security Holders                14
Item 5.  Other Information                                                  14
Item 6.  Exhibits                                                           14

         Signatures                                                         15

         Exhibits Index                                                     16
</TABLE>


                                       iii
<PAGE>

                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                         VERITEC, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                 September 30,     June 30,
                                                                                      2006            2006
                                                                                 -------------   ------------
                                                                                  (Unaudited)      (Audited)
<S>                                                                              <C>             <C>
ASSETS
Current Assets:
   Cash                                                                          $    798,699    $    898,424
   Accounts receivable, net                                                            27,397          59,173
   Inventories                                                                          8,510           7,495
   Prepaid expenses                                                                    16,650           4,650
                                                                                 ------------    ------------
      Total Current Assets                                                            851,256         969,742
Property and Equipment, net                                                            19,422          21,088
                                                                                 ------------    ------------
      Total Assets                                                               $    870,678    $    990,830
                                                                                 ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
   Accounts payable                                                              $     29,258    $     37,400
   Accrued expenses                                                                   163,625         285,372
                                                                                 ------------    ------------
      Total Current Liabilities                                                       192,883         322,772
Prepayment on Stock and Subscription Receivable                                        36,452          92,008
                                                                                 ------------    ------------
      Total Liabilities                                                               229,335         414,780
                                                                                 ------------    ------------
Commitments and Contingencies
Stockholders' Equity:
   Convertible preferred stock, par value $1.00; authorized 10,000,000 shares,
      276,000 shares of Series H authorized, 1,000 shares issued                        1,000           1,000
   Common stock, par value $.01; authorized 20,000,000 shares,
      15,078,598 shares issued                                                        150,786         150,786
   Subscription receivable                                                           (339,852)       (386,138)
   Additional paid-in capital                                                      13,495,464      13,420,192
   Accumulated deficit                                                            (12,666,055)    (12,609,790)
                                                                                 ------------    ------------
      Total Stockholders' Equity                                                      641,343         576,050
                                                                                 ------------    ------------
      Total Liabilities and Stockholders' Equity                                 $    870,678    $    990,830
                                                                                 ============    ============
</TABLE>

            See notes to condensed consolidated financial statements.


                                        1

<PAGE>

                         VERITEC, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          Three months ended
                                            September 30,
                                         -------------------
                                           2006       2005
                                         --------   --------
<S>                                      <C>        <C>
Revenues                                 $358,992   $556,657
Cost of Sales                               5,110     17,357
                                         --------   --------
Gross Profit                              353,882    539,300
                                         --------   --------
Operating Expenses:
   Selling, general and administrative    331,480    301,978
   Research and development                87,404     24,228
                                         --------   --------
      Total Operating Expenses            418,884    326,206
                                         --------   --------
Income (Loss) from Operations             (65,002)   213,094
Interest Income                             8,737      2,044
                                         --------   --------
Net Income (Loss)                        $(56,265)  $215,138
                                         ========   ========
Income (Loss) Per Common Share
   Basic and Diluted                     $     --   $   0.01
                                         ========   ========
</TABLE>

            See notes to condensed consolidated financial statements.


                                        2

<PAGE>

                         VERITEC, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                         Three months ended
                                                                                           September 30,
                                                                                       ---------------------
                                                                                          2006        2005
                                                                                       ---------   ---------
<S>                                                                                    <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                                                      $ (56,265)  $ 215,138
Adjustments to reconcile net income (loss) to net cash used by operating activities:
   Depreciation                                                                            1,666       2,025
   Stock options compensation                                                             66,002          --
   Stock compensation                                                                      7,500          --
   Changes in operating assets and liabilities:
      Accounts receivable                                                                 31,776     (98,866)
      Inventories                                                                         (1,015)     (3,225)
      Prepaid expenses                                                                   (12,000)      5,041
      Accounts payables and accrued expenses                                            (137,389)   (136,621)
                                                                                       ---------   ---------
Net cash used by operating activities                                                    (99,725)    (16,508)
                                                                                       ---------   ---------
NET DECREASE IN CASH                                                                     (99,725)    (16,508)
CASH AT BEGINNING OF PERIOD                                                              898,424     432,518
                                                                                       ---------   ---------
CASH AT END OF PERIOD                                                                  $ 798,699   $ 416,010
                                                                                       =========   =========
NONCASH ACTIVITIES
   Applied prepayment on subscription receivable to subscription receivable            $  55,556   $  55,556
</TABLE>

            See notes to condensed consolidated financial statements.


                                        3
<PAGE>

                         VERITEC, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

A. THE COMPANY

     The Company refers to Veritec, Inc. (Veritec) and its wholly owned
subsidiary VCode Holdings, Inc. (VCode).

B. BANKRUPTCY CONSIDERATIONS

     In February 2005, an adverse ruling was made against Veritec and in favor
of Mitsubishi Corporation (Mitsubishi), resulting in a monetary award of
$8,174,518 to Mitsubishi and enjoining Veritec and by extension Veritec's
customers from the future use or sale of what was ruled as Mitsubishi's Error
Detection and Correction Technology. This ruling compelled Veritec to file a
voluntary petition for relief under Chapter 11 of the United States Bankruptcy
Code in the United States Bankruptcy Court (Bankruptcy Court) for the District
of Minnesota on February 28, 2005.

     In December 2005, the Bankruptcy Court converted the Chapter 11 proceeding
to Chapter 7 of the Bankruptcy Code. Under Chapter 7, Veritec would be
liquidated and the shareholders would not receive anything upon liquidation.

     Veritec's Third Amended Plan of Reorganization, with proof of acceptability
of its provisions by Mitsubishi and the majority of the other classes of
creditors, was formally submitted to the Bankruptcy Court with a motion
requesting reconversion of Veritec's case in bankruptcy to Chapter 11. This
motion and related order was approved in March 2006. In March 2006, the order
was executed subject only to approval of the majority of creditors and
shareholders of record, which was subsequently obtained.

     Upon execution of the order, Veritec once again became a
"debtor-in-possession" under the jurisdiction of the Bankruptcy Court. In
general, as a debtor-in-possession, Veritec was authorized under Chapter 11 to
continue to operate as an ongoing business, but could not engage in transactions
outside the ordinary course of business without the prior approval of the
Bankruptcy Court.

     In April 2006, Veritec's Third Amended Plan of Reorganization was confirmed
by the Bankruptcy Court. On August 8, 2006, after resolution of all disputed
creditor claims, Veritec received from the Bankruptcy Court an Order and Final
Decree closing the Chapter 11 case in its entirety. As a result of the closing
of the Chapter 11 bankruptcy on August 8, 2006, Veritec was relieved of
$9,356,948 in debt including $7,874,518 owed to Mitsubishi.

     Veritec did not file any reports required under the Securities Exchange Act
of 1934 while in bankruptcy.

C. BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with United States of America generally accepted
accounting principles (GAAP) for interim financial information and with the
instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, the
condensed consolidated financial statements do not include all of the
information and footnotes required by GAAP for complete financial statements.

     In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three month period ended September 30, 2006,
are not necessarily indicative of the results that may be expected for the year
ended June 30, 2007. For further information, refer to the Consolidated
Financial Statements and footnotes thereto included in our Form 10-KSB as of and
for the year ended June 30, 2006. The Condensed Consolidated Balance Sheet at
June 30, 2006, has been derived from the audited consolidated financial
statements at that date, but does not include all of the information and
footnotes required by GAAP.

     The accompanying condensed consolidated financial statements include the
accounts of Veritec and VCode. All inter-company transactions and balances were
eliminated in consolidation.

D. NATURE OF BUSINESS

     The Company is primarily engaged in the development, marketing and sales of
a line of microprocessor based encoding and decoding systems that utilize Matrix
Symbology Technology, a two-dimensional barcode technology originally invented
by the founders of Veritec under United States patents 4,924,078, 5,331,176 and
5,612,524. As more fully described below,


                                        4

<PAGE>

these patents are the property of VCode. The Company's encoding and decoding
systems allow a manufacturer, distributor, reseller or user of products to
create and apply unique identifiers to the products in the form of a coded
symbol. The coded symbol containing the binary encoded data applied to the
product enables automated manufacturing control, together with identification,
tracking, and collection of data through cameras, readers and scanners also
marketed by the Company. The collected data is then available for
contemporaneous verification or other user definable purposes. The Company has
also developed a Secured Identification System based upon its proprietary VSCode
and VeriCode(R) Symbology. The Company's Secured Identification System enables
the storage of images, biometric information and data for contemporaneous
verification of an individual's unique identity. In addition to its United
States patents, Veritec holds patents in Europe (German patent No. 69033621.7;
French patent No. 0438841; and, Great Britain patent No. 0438841); and has
applications pending with the United States Patent and Trademark Office for
novel uses of its Multi-Dimensional Matrix Symbology.

     The Company's core business is the sale of its Multi-Dimensional Matrix
Symbology together with its proprietary software products for the writing and
reading thereof. Veritec owned a wholly owned subsidiary, VCode, a Minnesota
corporation with offices at 2445 Winnetka Avenue North, Golden Valley, Minnesota
55427.

     In November 2003, Veritec formed VCode to which it assigned United States
patents 4,924,078, 5,331,176 and 5,612,524, together with all corresponding
patent applications, foreign patents, foreign patent applications, and all
continuations, continuations in part, divisions, extensions, renewals, reissues
and re-examinations thereof. VCode in turn entered into an Exclusive License
Agreement with VData LLC (VData), an Illinois limited liability company
unrelated to Veritec. The purpose of the Exclusive Licensing Agreement is to
allow VData to pursue enforcement and licensing of the patents against parties
who wrongfully exploit the technology of such patents. VData is the wholly owned
subsidiary of Acacia Research Corporation (NASDAQ: ACTG) (collectively Acacia).
The Exclusive License Agreement provides that all expenses related to the
enforcement and licensing of the patents will be the responsibility of VData,
with the parties sharing in the net proceeds as specified under the terms of the
agreement, arising from enforcement or licensing of the patents.

E. NET INCOME (LOSS) PER COMMON SHARE

     Basic net income (loss) per common share is computed by dividing income
(loss) available to common stockholders by the weighted-average number of common
shares outstanding for the period. Diluted net income (loss) per common share,
in addition to the weighted average determined for basic net income (loss) per
common share, includes potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common
stock. Potentially dilutive instruments include stock options and warrants and
preferred stock. For the three months ended September 30, 2006, the stock
options and preferred stock were antidilutive and, therefore, were not included
in the computations of diluted net loss per common share.

The weighted average shares outstanding were as follows:

<TABLE>
<CAPTION>
      Three months
     September 30,
-----------------------
   2006         2005
----------   ----------
<S>          <C>
15,078,598   15,078,598
</TABLE>

Diluted net income per common share for the three months ended September 30,
2005, was computed as follows:

<TABLE>
<S>                                    <C>
Net income for per share computation   $   215,138
                                       ===========
Weighted average shares outstanding     15,078,598
Incremental shares from assumed
   exercise or conversion  of
   dilutive instruments:
   Options and warrants                     15,000
   Preferred stock                          10,000
                                       -----------
Shares outstanding - diluted            15,103,598
                                       ===========
Net income per common share            $      0.01
                                       ===========
</TABLE>


                                        5

<PAGE>

F. STOCK-BASED COMPENSATION

     The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards (SFAS) No. 123(R), "Share-Based Payment", in December 2004,
which requires the cost of employee compensation paid with equity instruments to
be measured based on grant-date fair values and recognized over the vesting
period. The new rule allowed companies to implement SFAS No. 123(R) at the
beginning of their fiscal year that begins after June 15, 2005. Under the new
rule, SFAS No. 123(R) became effective for the Company on July 1, 2005. Adoption
of SFAS No. 123(R) had no impact on the Company's financial statements as all
options were fully-vested at the adoption date.

     The Company has agreements with certain employees that provide for five
years of annual grants of options to purchase shares of the Company's common
stock. The option price is 15% below the market price on the date of grant, the
options vest one year from the date of grant, and the options expire five years
after vesting. For the three months ended September 30, 2006, the Company issued
40,000 options under this arrangement. The Company has commitments under these
agreements to issue grants of options of 30,000 for fiscal year 2007, 70,000
options annually for 2008 through 2010, and 40,000 options in fiscal 2011.

     In addition to the options issued above, the Company issued 40,000 options
to purchase shares of the Company's common stock to certain employees during the
three months ended September 30, 2006. The option price is $.025 per share, the
options were immediately vested, and the options expire five years from the
grant date.

     The weighted-average fair value of options granted for the three months
ended September 30, 2006, was $0.90 per option and was estimated using the
Black-Scholes option pricing model with the following weighted-average
assumptions: risk free interest rate - 5.00%, dividend yield - 0%, volatility -
7.34%, and expected life - 3 years. Volatility was extracted from small market
capitalization under computer service subsector. Stock-based compensation
expense of $66,002 and $0 was recognized in the three months ended September 30,
2006 and 2005, respectively. As of September 30, 2006, there was $25,132 of
total unrecognized compensation costs related to stock options. These costs are
expected to be recognized over the next three quarters.

     A summary of stock options is as follows:

<TABLE>
<CAPTION>
                                Number of    Option Price
                                  Shares      Per Share
                                ---------   -------------
<S>                             <C>         <C>
Balance at June 30, 2006          30,000        $2.04
   Granted                        40,000        $0.25
   Granted                        40,000    $1.28 - $1.36
                                 -------
Balance at September 30, 2006    110,000*   $0.25 -  2.04
                                 =======
</TABLE>

*    40,000 shares fully vested, 70,000 shares vest in 2007; 5.4 years remaining
     contractual life.

     There was no option activity for the three months end September 30, 2005.
The Company had 15,000 options outstanding and exercisable at $0.80 per share at
September 30, 2005; these options expired unexercised.

     The Company has an agreement with an employee to issue 5,000 shares of the
Company's common stock beginning August 2006 and 2,000 shares annually
thereafter for five years. Compensation expense related to this agreement was
$7,500 for the three months ended September 30, 2006. The issuance of the stock
remains unsatisfied.

     The board of directors authorized the Chief Executive Officer to issue up
to 1,000,000 shares of the Company's common stock in the form of options or
stock bonuses to employees and consultants. At September 30, 2006, stock and
stock options totaling 417,500 have been committed under this authorization.

G. NOTES PAYABLE - RELATED PARTIES

     In November 2003, a consultant and shareholder of the Company loaned
$50,000 to the Company for working capital. This note was unsecured, bore 10%
interest and was due November 12, 2004. Interest expense on this note totaled
$833 in 2005 (including 2,500 shares of common stock to be issued). This note
payable and accrued interest totaling $50,833 were repaid in August 2004. The
issuance of the stock remains unsatisfied.


                                        6

<PAGE>

H. SUBSCRIPTION RECEIVABLE

     In September 1999, as required under its 1997 California bankruptcy plan of
reorganization, The Matthews Group (stockholder and related party) received
275,000 shares of Series H convertible preferred stock in exchange for a
promissory note in the amount of $2,000,000 (subscription receivable). The
promissory note is collateralized by deeds of trust to real property located in
California and Minnesota owned by Van Tran and Larry Johanns, the sole
principals of The Matthews Group. The real property collateralizing the
promissory note has a fair market value in excess of all encumbrances including
the remaining principal balance of the promissory note to which Veritec is the
beneficiary. The promissory note originally required 108 monthly payments of
$18,519. These payments are non-interest bearing. Imputed interest on the
subscription receivable is excluded from operating results and is instead
credited directly to additional paid-in capital. As the principal amount of the
promissory note is reduced, The Matthews Group has the right to require the
Company to release encumbrances against the real property collateralizing the
subscription obligation.

     From time to time, The Matthews Group has made prepayments against its
subscription obligation. Prepayments are nonrefundable and noninterest bearing.

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

     This Form 10-QSB contains various "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements represent the Company's expectations and beliefs concerning the
Company's outlook, future economic events, future performance and attainment of
future goals are based on information available to the Company on the date of
the filing of this Form 10-QSB, and are subject to various risks and
uncertainties.

The Private Securities Litigation Reform Act of 1995 provides "safe harbor" for
forward-looking statements These statements contain forward-looking statements
within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based upon our current
expectations and speak only as of the date hereof. Our actual results may differ
materially and adversely from those expressed in any forward-looking statements
as a result of various factors and uncertainties affecting technology companies,
our ability to successfully develop products, rapid technological change in our
markets, changes in demand for our future products, legislative, regulatory and
competitive developments and general economic conditions. Our SEC filings
discuss some of the important risk factors that may affect our business, results
of operations and financial condition. We undertake no obligation to revise or
update publicly any forward-looking statements for any reason unless otherwise
required to do so by SEC Regulations.

General

     In February 2005, an adverse ruling was made against Veritec and in favor
of Mitsubishi in the amount of $8,174,518 to Mitsubishi and enjoining Veritec
and by extension Veritec's customers from the future use or sale of what was
ruled as Mitsubishi's Error Detection and Correction Technology. This ruling
compelled Veritec to file a voluntary petition for relief under Chapter 11 of
the United States Bankruptcy Code in the United States Bankruptcy Court for the
District of Minnesota on February 28, 2005.

     In February 2006, Veritec and Mitsubishi entered into a Settlement
Agreement whereby, in exchange for $300,000, a license to utilize Veritec's
VeriCode(R) technology, and dismissal of the patent infringement litigation
filed by VData and VCode against Mitsubishi, Mitsubishi waived its right to the
$8,174,518 and licensed Veritec's use of the Mitsubishi Error Detection and
Correction Technology.

     In April 2006, Veritec's Third Amended Plan of Reorganization was confirmed
by the Bankruptcy Court. On August 8, 2006, after resolution of all disputed
creditor claims, Veritec received from the Bankruptcy Court an Order and Final
Decree closing the Chapter 11 case in its entirety. As a result of the closing
of the Chapter 11 bankruptcy on August 8, 2006, Veritec was relieved of
$9,356,948 in debt including $7,874,518 owed to Mitsubishi.

     For a more detailed discussion on the bankruptcy proceedings and Veritec's
Third Amended Plan of Reorganization, refer to Note "A" appearing in Part I
"Financial Information", Item I "Financial Statements" and the Form 8-K's
identified as Exhibits hereto and filed with the Commission on February 17,
2005, February 28, 2005, December 19, 2005, March 10, 2006, May 1, 2006, and
August 11, 2006, incorporated by this reference.


                                        7

<PAGE>

Nature of Business

     The Company is primarily engaged in the development, marketing, and sales
of a line of microprocessor based encoding and decoding systems that utilize
Matrix Symbology technology, a two-dimensional barcode technology originally
invented by the founders of Veritec under United States patents 4,924,078,
5,331,176 and 5,612,524. The Company's encoding and decoding systems allow a
manufacturer, distributor, reseller or user of products, to create and apply
unique identifiers to the products in the form of a coded symbol. The coded
symbol containing the binary encoded data applied to the product enable
automated manufacturing control, together with identification, tracking, and
collection of data through cameras, readers and scanners also marketed by the
Company. The collected data is then available for contemporaneous verification
or other user definable purposes. Veritec has also developed a Secured
Identification System based upon its proprietary VSCode and VeriCode(R)
Symbology. The Company's Secured Identification System enables the storage of
images, biometric information and data for contemporaneous verification of an
individual's unique identity. In addition to its United States patents, the
Company holds patents in Europe (German Patent No. 69033621.7; French Patent No.
0438841; and Great Britain Patent No. 0438841); and has applications pending
with the United States Patent and Trademark Office for novel uses of its
Multi-Dimensional Matrix Symbology.

     The Company also seeks fees from the enforcement and licensing of it
patents under its Exclusive License Agreement with Acacia.

     The Company's main products are as follows:

The VeriCode(R)

     The VeriCode(R) symbol is a two-dimensional high data density
machine-readable symbol that can contain up to approximately 500 bytes of data
in a small area. The VeriCode(R) symbol is based on a matrix pattern. The matrix
is made up of data cells, which are light and dark contrasting squares. This
part of the symbol looks like a scrambled chessboard. The matrix is enclosed
within at least two solid lines and/or a solid border. Surrounding the solid
border is a quiet zone of empty cells. This simple structure is the basis for
the symbol's space efficiency.

     The size of the VeriCode(R) symbol is variable and can be increased or
decreased depending on application requirements. The symbol can be configured to
fit virtually any space. The data capacity of the symbol is also variable. By
using a greater or smaller number of data cells, more or less information can be
stored in the symbol. The main limitation to the size and density of the
VeriCode(R) symbol is the resolution of the marking and reading devices utilized
by the user.

     Special orientation for reading the symbol is not necessary and is the
basis of the novelty of the Company's 5,612,524 patent. The VeriCode(R) symbol
can be read at high degrees of angularity from vertical, in any direction
relative to the reader. Veritec's symbology and reading software presently
employs "Error Detection and Correction" (EDAC) technology of our own design,
similar to that on music CD's. That means that if a symbol is partially damaged
or obscured, the complete data set stored in the symbol might be recovered. EDAC
lowers the symbol's data capacity, but it can permit data recovery if up to 25%
of the symbol is damaged. With EDAC, the code will return either accurate
information or no information, but it will not return false or wrong
information.

     The VeriCode(R) symbol offers high degrees of security and the level of
this security can be specified depending on the user's requirements. For any
specific application or organization, a unique encryption algorithm can be
created so that only authorized persons can create or read a VeriCode(R) symbol
within the user's application.

     The VeriCode(R) symbol can hold any form of binary information that can be
digitized including numbers, letters, images and the minutia for biometric
information to the extent of its data storage capacity.

The VSCode

     The VSCode is a derivative of the two-dimensional VeriCode(R) symbol. It is
built around the core competencies of the VeriCode(R) symbol which includes the
solid border, omni-directional reading and Error Detection and Correction
capability. The distinguishing factor for the VSCode is its ability to encrypt a
greater amount of data by increasing data density. This matrix can hold up to
approximately 4,151 bytes of data making it ideal for holding identification and
biometric information. The VSCode offers a high degree of security, which can
also be defined by the application requirements of the user.


                                        8

<PAGE>

     The VSCode symbol can hold any form of binary information that can be
digitized, including numbers, letters, images, photos, graphics, the minutia for
biometric information, including fingerprints, to the extent of its data storage
capacity, that are likewise limited by the resolution of the marking and reading
devices employed by the user.

     VSCode is designed for bankcards and high security applications. Because
the code is encrypted on the card it can be an independent portable database
containing non-duplicative information that is unique to the individual owner of
the bank account or credit card; or, the data can be verified through a central
database while maintaining high security for the card issuer without the need of
a PIN.

The FCR-100 Fingerprint Card Reader

     The FCR-100 is a compact fingerprint card reader used to read and decode
the VSCode symbology containing biometric information and other secured data. It
consists of a combination of several modular components, including a quality
camera, lighting mechanism, digital fingerprint reader, software lock, USB cable
and housing, all tied into a PC operating system running the proprietary Veritec
software. Due to its modular design, the FCR-100 can be modified to meet
specific application needs.

     The FCR-100 can be designed to work on most PC based operating systems,
including the full suite of Windows(R) operating systems. This allows the
operating system to function with the many different types of VSCode
applications such as bankcards, access control, personnel identification, border
control, and hospital identification cards. The FCR-100 is connected and powered
by a USB cable connection to a PC or server. The FCR-100 can be utilized with
wireless applications and will allow multiple reading stations to be connected
to a single computer.

Licensing Fees

     Veritec has long been burdened by having to compete against the technology
learned from its patents by other companies having greater resources and access
to capital markets. The Company has identified numerous companies it believes
uses its technology without license or authorization. Management is confident
that the use of the Company's intellectual property without a license will be
addressed on a case-by-case basis as a result of its relationship with Acacia.
For the three months ended September 30, 2006 and 2005, the Company has
recognized licensing revenue of $259,663 and $59,518, respectively, through its
relationship with Acacia. Subsequent to September 30, 2006, the Company has
earned additional licensing revenue from Acacia of $402,264.

Identification card/SEI Acquisition

     In October 2006, Veritec entered into an agreement to purchase selected
assets of Secure Environments, Inc. (SEI), a Minnesota corporation that produces
identification cards. The assets acquired consisted of office furniture,
computer equipment, specialty software, security card and badge printers, and a
customer base of 73 small to large commercial and municipal customers, including
security firms and police departments. Terms of the purchase were Veritec's
assumption of $3,900 in debt and a 10% royalty, not to exceed $150,000 in
aggregate, for any future sales by Veritec to the 73 SEI customers. No other
consideration was, or is, to be paid.

Results of Operations - September 30, 2006 compared to September 30, 2005

Revenues

     Revenues of $358,992 for the three months ended September 30, 2006
decreased by $197,665 or 36% lower than for the same period ended September 30,
2005.

     The Company's overall decrease in revenues for the quarter ended September
30, 2006, is still indicative of the time spent by management and their
attention being focused on: (1) the legal issues created by the arbitrator's
ruling in favor of Mitsubishi; (2) appeal of the arbitrator's award; (3) the
development and implementation of a Plan of Reorganization acceptable to the
creditors and the Bankruptcy Court; and (4) seeking the funding necessary to
implement an acceptable Plan of Reorganization in order to emerge from
bankruptcy, versus efforts spent on sales and marketing of Veritec products.
These factors have and may continue to result in diminished revenues as a result
of our plans to introduce new applications and solutions have been delayed.

     Another factor is the volatility of revenues due to the fluctuation of
sales to Veritec's distributors who primarily service the LCD market. Revenues
from this market are unpredictable as they are generated when customers open new
production facilities or update production equipment.


                                        9

<PAGE>

     The decline in revenue was partially offset by licensing fee revenue from
Acacia of $259,663 for the three months ended September 30, 2006, compared to
$59,518 for the same period in 2005.

Cost of Sales

     Cost of sales of $5,110 for the three months ended September 30, 2006
decreased by $12,247 or 71% from the same period in 2005, and decreased 2% as a
percent of sales for the period. The decrease in cost of sales as a percent of
sales was due to a change in the sales mix from hardware sales, which carry a
lower profit margin, to software sales, which carry a higher profit margin.

Selling General and Administrative

     Selling, general and administrative expenses of $331,480 for the three
months ended September 30, 2006, increased by $29,502 or 10% from the same
period in 2005. The increase was from increases in payroll expenses and
consulting and professional fees.

Research and Development

     Research and development expense of $87,404 for the three months ended
September 30, 2006 increased by $60,176 from 2005 or 261%. The increase was due
from the Company resuming its research and development efforts since emerging
from bankruptcy.

Liquidity and Capital Resources

     The Company has relied on The Matthews Group for funding. Through November,
2006, The Matthews Group has funded $1,666,082, including prepayments, of the
original of $2,000,000 stock subscription receivable.

     In February 2005, Veritec filed for bankruptcy protection under Chapter 11
and in August 2006 emerged from bankruptcy. As a result of the closing of the
Chapter 11 bankruptcy on August 8, 2006, Veritec was relieved of $9,356,948 in
debt including $7,874,518 owed to Mitsubishi.

     For the three months ended September 30, 2006 and 2005, the Company has
recognized licensing revenue of $259,663 and $59,518, respectively, through its
relationship with Acacia. Subsequent to September 30, 2006, the Company received
additional licensing revenue from Acacia of $402,264.

     As of November 13, 2006, the Company had consolidated cash balances of
$1,038,381, which, we believe is sufficient to meet our short-term needs.
However, the Company may need additional capital to continue to develop and
expand.

Quantitative and Qualitative Disclosures About Market Risk

     The Company has not issued or invested in financial instruments or
derivatives for trading or speculative purposes. The Company is not actively
involved in the trading of foreign currency and fluctuations in currency
exchange rates have had no material impact. Although the Company is involved in
the sales of its products to the Asian markets, all products are priced in
United States Dollars and, as such, sales are not subject to material foreign
currency exchange rate risk.

Item 3. Controls and Procedures

Disclosure Controls and Procedures

     Our management, with the participation of our Chief Executive Officer and
Chief Financial Officer has evaluated the effectiveness of our internal
disclosure controls and procedures (as such term is defined in Rules 13a-15(e)
and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the
end of the period covered by this report. Based on such evaluation, our Chief
Executive Officer and Chief Financial Officer have concluded that, as of the end
of such period, our disclosure controls and procedures are effective.

Internal Control over Financial Reporting

     The quarterly review process in fiscal 2006 and the audits of our June 30,
2006 and 2005 consolidated financial statements revealed a need for stronger
controls over our financial reporting system. Improvements needed related to a


                                       10

<PAGE>

general lack of accounting staff. During the bankruptcy period, the Company
utilized a consultant for its accounting and financial reporting system. As a
result, certain controls were limited. When the Company emerged from bankruptcy,
we responded to these concerns by hiring a full time Chief Financial Officer.

     Our management, including our Chief Executive Officer and Chief Financial
Officer, do not expect that its disclosure controls and procedures will prevent
all errors and all fraud. A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Because of the inherent limitations in
all control systems, no evaluation of controls can provide absolute assurance
that all control issues and instances of fraud, if any, within our Company have
been detected. The design of any system of controls also is based in part upon
certain assumptions about the likelihood of future events, and there can be no
assurance that any design will succeed in achieving its stated goals under all
potential future conditions; over time, control may become inadequate because of
changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate. Because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud may occur and
not be detected.

                            PART II OTHER INFORMATION

Item 1. Legal Proceedings

     During the 1995 - 1997 bankruptcy, the Company sought an investment group
to assist funding the $2,000,000 under the Plan of Reorganization approved by
the Bankruptcy Court in 1997. In the intervening years, various investment
groups attempted to help the Company fund this required investment. Partial
funding received from these investment groups were settled through stock
issuances by the Company. One of these former investment groups made claims
totaling $166,697 against the Company, $90,980 in cash and $75,717 in stock
(94,646 shares at $.80 per share), but has not pursued legal action relating to
these claims. It is possible that other investment groups will assert claims
against the Company regarding their efforts to secure funding on behalf of the
Company. Management believes it has appropriately reflected the activity with
these investment groups in the accompanying condensed consolidated financial
statements. Management further feels these claims were settled in the
bankruptcy. Due to uncertainties, however, it is at least reasonably possible
that claims will be asserted and/or pursued. The ultimate outcome of these
claims, if asserted and/or pursued, cannot presently be determined.

     On June 30, 2000, we were served as a defendant in the matter of
Starosolsky vs. Veritec, Inc., et al., in the United States District Court for
the Central District of California. This suit was brought by a shareholder and
former director of the Company against Veritec and various individuals claiming
that certain corporate actions were taken without proper authority of the
Company's Board of Directors and/or contrary to the Plan of Reorganization the
Company filed and completed under Chapter 11 of the United States Bankruptcy
Code in the United States Bankruptcy Court in the 1990's. The complaint seeks
equitable relief to set aside the issuance of Series H preferred stock (now
converted into common stock) issued to The Matthews Group that was authorized by
the previous approved bankruptcy reorganization plan in 1999, to prevent The
Matthews Group from voting its stock at any meetings of stockholders and to
remove certain of the individual defendants as directors of the Company. In
December 2000, this case was transferred to the United States District Court for
the District of Minnesota. The case has lingered without prosecution.
Consequently, management is not able to express an opinion on the likely
outcome.

     On January 10, 2002, Veritec initiated arbitration against Mitsubishi in
Los Angeles, California, alleging breach of contract, trade secret
misappropriation and interference with business opportunities; seeking several
million dollars in compensatory damages, punitive damages, legal fees and
accrued interest. Mitsubishi counterclaimed on similar grounds and sought to
enjoin Veritec's use of the Error Detection and Correction Technology which
Mitsubishi claimed as its sole and separate property. Evidentiary hearings were
conducted from the later part of August through September 4, 2004. On February
15, 2005, Veritec received notice from the International Court of Arbitration
that it awarded Mitsubishi a total of $8,174,518 in monetary damages and
enjoined Veritec's use or sale of the Error Detection and Correction Technology
it deemed to be the sole property of Mitsubishi. As a result, on February 28,
2005, Veritec filed for protection under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the District of
Minnesota. On December 16, 2005, the Bankruptcy Court converted Veritec's
Chapter 11 case in bankruptcy to a Chapter 7 and the Bankruptcy Court ordered
all assets of the Company to be turned over to the control of the Trustee.

     In February 2006, Veritec and Mitsubishi entered into a Settlement
Agreement whereby, in exchange for $300,000, a license to utilize Veritec's
VeriCode(R) Technology, and dismissal of the patent infringement litigation
filed by VData and VCode against Mitsubishi, Mitsubishi waived its right to the
$8,174,518 and granted Veritec a license to use the Mitsubishi Error Detection
and Correction Technology. In light of the Settlement Agreement entered into
with Mitsubishi, on March 8, 2006, the Bankruptcy Court ruled in favor of
reconverting Veritec's case in bankruptcy back to one under Chapter 11 of the
Bankruptcy Code. Veritec's Third Amended Plan of Reorganization was formally
filed with the Court on March 13, 2006. In


                                       11

<PAGE>

April 2006, Veritec's Third Amended Plan of Reorganization was confirmed by the
Bankruptcy Court. On August 8, 2006, after resolution of disputed creditor
claims, Veritec received from the Bankruptcy Court an Order and Final Decree
Closing the Chapter 11 case in its entirety. As a result of the closing of the
Chapter 11 bankruptcy on August 8, 2006, Veritec was relieved of $9,356,948 in
debt including $7,874,518 owed to Mitsubishi.

     VCode joined with VData as Plaintiffs in patent enforcement litigation
filed on September 8, 2005, against Mitsubishi Corporation in the United States
District Court for the District of Minnesota, alleging violations of the
Company's patents. This matter was dismissed as a part of the Settlement
Agreement with Mitsubishi described above.

     VCode joined with VData as Plaintiffs in patent enforcement litigation
filed on October 4, 2005, against Brother Industries, Ltd., Sato Corporation,
Toshiba Corporation and US Bank National Association in the United States
District Court for the District of Minnesota alleging violations of the
Company's patents. US Bank National Association has entered into an licensing
agreement with the Company and the case as to that defendant was dismissed as
well as the case against Sato Corporation. No opinion can be rendered at this
time with respect to the outcome of this action as to the remaining defendants.

     On March 13, 2006, in response to notices of infringement sent to their
customers by VData, Cognex Corporation filed a preemptive action seeking a
Declaratory Judgment against VData and the Company in the United States District
Court for the District of Minnesota. Amongst other remedies the action seeks a
ruling from the court that the Company's 5,612,524 patent is not enforceable
against Cognex Corporation and its customers. Presently, the Company is
conferring with VData and the legal counsel retained by VData to defend against
this action. Due to the recent nature of the case, only jurisdictional and
procedural issues have been litigated and a responsive pleading on behalf of
VData and the Company has not yet been filed. The Company cannot render an
opinion at this time with respect to the outcome of these actions.

     On March 22, 2006, the United States Patent and Trademark Office granted an
application made for an Ex Parte Reexamination of the Company's 5,612,524
patent. The Company is conferring with VData, and counsel retained by VData, to
file the Company's reply to the applicant's submission. Due to the recent nature
of this matter, a response on behalf of VCode has not been filed with the United
States Patent and Trademark Office. The Company has been advised by legal
counsel that a preemptive filing of such a request for Ex Parte Reexaminations
is commonplace in the enforcement areas of patent law and practice. The Company
is confident in its patent but cannot render an opinion at this time with
respect to the outcome of the reexamination. However, not all claims of the
patent have been challenged and the Company believes that a determination
adverse to the patent would not be detrimental to the Company's ability to
market its products, but could be detrimental to collection of licensing fees
based upon this patent.

     On May 23, 2006, VCode joined with VData as a Plaintiff in a pending patent
enforcement litigation filed against Aetna, Inc., PNY Technologies, Inc.,
Merchants' Credit Guide Co., The Allstate Corporation, and American Heritage
Life Insurance Company in the United States District Court for the District of
Minnesota alleging violations of the Company's patents. The Allstate Corporation
and American Heritage Life Insurance Company have entered into a licensing
agreement with the Company and the case as to those defendants have been
dismissed. Aetna, Inc., and Merchants' Credit Guide Co., have filed responsive
pleadings in the action. No opinion can be rendered at this time with respect to
the outcome of this action as to the remaining defendants.

     On September 5, 2006, an application was made for an Ex Parte Reexamination
of the Company's 4,924,078 patent. The Company is awaiting a determination from
the United States Patent and Trademark Office if it will grant reexamination on
the Application. The Company has conferred with VData, and the legal counsel
retained by VData, to file the Company's reply to the applicant's submission
should it be granted. Due to the recent nature of this matter, a response on
behalf of VCode is not yet required. The Company is confident in its patent but
cannot render an opinion at this time with respect to the outcome of the
reexamination. However, the Company believes that a determination adverse to the
patent would not be detrimental to the Company's ability to market its products,
but could be detrimental to collection of licensing fees based upon this patent.

SEC Reporting Obligations

     We are subject to the continuing reporting obligations of the Securities
Exchange Act of 1934 (the 1934 Act), which, among other things, requires the
filing of quarterly and annual reports and proxy materials with the Securities
and Exchange Commission (the SEC). Prior to September 1999 and periodically
thereafter, we did not comply with several filing requirements. To our
knowledge, there is no current inquiry or investigation pending or threatened by
the SEC in connection with our prior reporting violations. However, there can be
no assurance that we will not be subject to such inquiry or investigation in the
future. As a result of any potential or pending inquiry by the SEC or other
regulatory agency, we may be subject to penalties, including among other things,
suspension of trading in our securities, court actions, administrative


                                       12

<PAGE>

proceedings, preclusion from using certain registration forms under the 1933
Act, injunctive relief to prevent future violations and/or criminal prosecution.

Item 1A. Risk Factors

Risk Factors

     Investing in our Company entails substantial risk. In addition to the other
risks and uncertainties discussed herein or available from outside sources, a
number of risks and uncertainties that could cause actual results to differ
materially from the plans, intentions and expectations reflected in or suggested
by forward-looking statements of the Company set forth within the body and
Exhibits hereof include amongst other things:

     We have a History of Operating Losses.

          We have a history of operating losses that were a substantial factor
     in the Company having been twice placed in bankruptcy, once from October
     1995 through October 1999 and again from February 2005 through August 2006.
     To halt the continuation of these losses, we are developing new products,
     entering new markets and developing strategic alliances to grow revenue.
     There can be no assurance that we will be successful in these efforts, and
     even if we are, whether we can become profitable.

     Loss of the Services of Key Employees could harm Our Operations.

          The Company's performance depends on the talents and efforts of our
     key management and technical employees. The loss of certain key individuals
     could diminish our ability to maintain relationships with current and
     potential customers or to meet development and implementation schedules for
     existing technology and the technology that the Company intends to
     introduce in the future. Our future success also depends on our continuing
     ability to identify, hire, train and retain highly qualified technical and
     managerial personnel. If we fail to attract or retain these key individuals
     in the future, our business could be disrupted.

     Continuing Licensing Revenues from Acacia and Intellectual Property.

          The Company is dependent on Acacia for a significant portion of its
     revenue. In the event of an adverse determination either with regard to the
     Patent Reexaminations or the Declaratory Judgment being sought by Cognex,
     our future ability to obtain licensing fees for the 4,924,078 and 5,612,524
     patents could cease.

          In addition to Cognex, future challenges of our intellectual property
     could be made by other claimants. Our business would be materially impacted
     in the event such claims are raised and ruled against us.

     Competition in the Asian Market.

          The Company currently relies heavily on its sales to the Asian
     markets. The cross-licensing agreement we executed with Mitsubishi that
     allowed for our emergence from bankruptcy and rights to use of the
     Mitsubishi Error Detection and Correction Technology gave Mitsubishi a
     license to our VeriCode(R) Technology that may result in increased
     competition. Competition in the Machine Readable Information and symbology
     sector, coupled with the strain on our relationships with our licensees and
     distributors while we were in bankruptcy, may impact future sales.

     Dependence on The Matthews Group.

          The Company has traditionally been dependent on The Matthews Group for
     its financial support. Management does not believe additional monies above
     the stock subscription obligation will be required in the immediate future.
     However additional capital may be required at some future point. The
     Company cannot guarantee going forward that The Matthews Group will
     continue to provide additional funding.

     Ability to Obtain Access to Capital.

          Due to the Company's prior bankruptcies and history of losses, the
     Company's ability to raise funds, whether from lending, selling stock, or
     other sources, may be difficult to achieve. The Company may need to raise
     additional capital for the development or marketing of new products. If the
     Company cannot raise such capital, or if the cost of such capital is too
     high, we may be unable to successfully develop and launch new products.


                                       13

<PAGE>

     Effect of the Bankruptcy.

          Having been in bankruptcy has made it difficult for the Company to
     establish new trade credit relationships with both vendors and customers.
     Although the Company believes it will restore its credibility going
     forward, the lack of trade credit could substantially impair the Company's
     ability to grow and implement its plans.

     Competition.

          Our VeriCode(R) and VSCode Matrix Symbologies compete with alternative
     machine-readable codes such as conventional bar code systems, including
     UPC, EAN Code 39 and Code 49; and, alphanumeric systems such as OCR-A,
     OCR-B, PDF-417, Data Matrix and many others. Competitors offering
     alternative symbologies include numerous well capitalized private and
     publicly traded companies who offer a wide variety of bar code systems and
     solutions, as well as, alternative product solutions such as Radio
     Frequency Identification (RFID) and Global Positioning Satellite (GPS)
     technology. Our competitors include but are not limited to: Intermec (NYSE:
     IN); Siemens Energy and Automation, Inc., a subsidiary of Siemens AG (NYSE:
     SI); Symbol Technologies (NYSE: SBL); and, Zebra Technologies Corporation
     (NASDAQ: ZBRA). These companies have more resources than the Company,
     already have a strong customer base, and their products are widely used in
     the market place. Competition from such companies may further reduce the
     future level of demand for the Company's products and/or the Company's
     future margins of profit.

     General Conditions Beyond the Companies Control.

          The general economic condition of the United States and other regions
     of the world, work disruptions, labor negotiations both at the Company and
     with our licensees and distributors, actions of the U.S. and foreign
     governments, foreign currency exchange rate fluctuations, inflation and
     other economic events all to varying degrees do, could and would have an
     effect upon the Company some of which could be a material adverse impact.

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

     None.

Item 3. Defaults Upon Senior Securities

     None.

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

     No matters were submitted to a vote of security holders during the period
     covered by this report.

Item 5. Other Information

     None.

Item 6. Exhibits

     A list of exhibits included as part of this Form 10-QSB is set forth in an
Exhibit Index that immediately precedes the exhibits.


                                       14

<PAGE>

Signatures

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this quarterly report on Form 10-QSB for the quarter
ended September 30, 2006 to be signed on its behalf by the undersigned thereunto
duly authorized on the November 20, 2006.

                                        Veritec, Inc.


                                        /s/ Van Thuy Tran
                                        ----------------------------------------
                                        Van Thuy Tran, Chief Executive Officer


                                        /s/ Gerald Fors
                                        ----------------------------------------
                                        Gerald Fors, Chief Financial Officer


                                       15

<PAGE>

EXHIBIT INDEX

<TABLE>
<S>     <C>
31.     CEO/CFO Certification required by Rule 13a14(a)/15d14(a) under the
        Securities Exchange Act of 1934.

32.     Veritec, Inc. Certification of CEO/CFO pursuant to Section 906 of the
        Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).

*99.1   Press Release issued by the Registrant on February 16, 2005, announcing
        the adverse ruling against Veritec, Inc., by the International Court of
        Arbitration, awarding a monetary judgment in favor of Mitsubishi
        Corporation of approximately $8.1 Million; and, enjoining Veritec from
        further violations of Mitsubishi's EDAC copyright (filed as Item 9.01
        Exhibit 99.1 to Veritec's Form 8-K filed on February 17, 2005 and
        incorporated herein by reference)

*99.2   Notice of the Registrant having filed on February 28, 2005, a Petition
        for Relief under Chapter 11 of the United States Bankruptcy Code with
        the United States Bankruptcy Court, District of Minnesota (Case Number
        05-31119) (filed as Item 1.03 Bankruptcy or Receivership to Veritec's
        Form 8-K filed February 28, 2005 and incorporated herein by reference)

*99.3   Notice of the Registrant's case in Bankruptcy being converted to Chapter
        7 of the United States Bankruptcy Code (Case Number 05-31119) (filed as
        Item 1.03 Bankruptcy or Receivership to Veritec's Form 8-K filed
        December 19, 2005 and incorporated herein by reference)

*99.4   Notice of the Registrant's case in Bankruptcy being reconverted to
        Chapter 11of the United States Bankruptcy Code (Case Number 05-31119)
        (filed as Item 1.03 Bankruptcy or Receivership to Veritec's Form 8-K
        filed March 10, 2006 and incorporated herein by reference)

*99.5   Notice of the Registrant's Third Amended Plan of Reorganization being
        confirmed by the United States Bankruptcy Court (Case Number 05-31119)
        (filed as Item 1.03 Bankruptcy or Receivership and Item 9.01 Financial
        Statements with attached Exhibit 2.1 Order and Notice Confirming Plan
        and Fixing Time Limits, dated April 26, 2006; Exhibit 2.2 Debtor's Third
        Modified Plan of Reorganization with Settlement Agreement; and, Exhibit
        99.1 Unaudited balance sheet of registrant at April 26, 2006, to
        Veritec's Form 8-K filed May 01, 2006 and incorporated herein by
        reference)

*99.6   Notice of the Registrant's receipt of "Order and Final Decree Closing
        Chapter 11 Case" from the United States Bankruptcy Court (Case Number
        05-31119) (filed as Item 1.03 Bankruptcy or Receivership and Item 8.01
        Other Events identifying the Press Release issued announcing the same,
        to Veritec's Form 8-K filed August 11, 2006 and incorporated herein by
        reference)
</TABLE>

     With respect to the documents incorporated by reference to this Form
10-QSB, Veritec's Commission File Number is 0-15113.

*    As Previously Filed


                                       16