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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM l0-Q
  þ
    
    QUARTERLY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF1934
 for the quarterly period ended SEPTEMBER 30, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC T OF 1934
 for the transition period from  to.
 Commission File Number. 0-15113
 VERITEC, INC.
  Nevada
    
    95-3954373(State or Other Jurisdiction of
    
    (IRS EmployerIncorporation or Organization)
    
    Identification No.)2445 Winnetka Avenue N. Golden Valley, MN
    
    55427(Address of principal executive offices)
    
    (Zip Code)
  þ o
  Large Accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o(Do not check if a smaller reporting company)
    
    Smaller reporting company þ
 o þ
 Yes þ  No o




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TABLE OF CONTENTS
 Page No.PART I
    
    
    3ITEM 1 FINANCIAL STATEMENTS
    
    
    3ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
    
    
    9ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
    
    
    12ITEM 4 CONTROLS AND PROCEDURES
    
    
    12PART II
    
    
    13ITEM 1 LEGAL PROCEEDINGS
    
    
    13ITEM 1A RISK FACTORS
    
    
    14ITEM 6 EXHIBITS
    
    
    14SIGNATURES
    
    
    15Exhibit 31.1Exhibit 31.2Exhibit 32.1




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ITEM 1 FINANCIAL STATEMENTS
 VERITEC, INC. AND SUBSIDIARIES  CONDENSED CONSOLIDATED BALANCE SHEETS
 September 30,
    
    
    June 30,2008
    
    
    2008(Unaudited)ASSETSCurrent Assets:Cash
    
    $
    313,896
    
    
    $
    334,702Accounts receivable, net
    
    
    93,036
    
    
    
    35,125Inventories
    
    
    15,956
    
    
    
    30,632Prepaid expenses
    
    
    3,150
    
    
    
    3,150Total Current Assets
    
    
    426,038
    
    
    
    403,609Property and Equipment, net
    
    
    73,086
    
    
    
    81,901Other assets
    
    
    43,756
    
    
    
    43,756Total Assets
    
    $
    542,880
    
    
    $
    529,266LIABILITIES AND STOCKHOLDERS EQUITYCurrent Liabilities:Accounts payable
    
    $
    137,656
    
    
    $
    128,498Accrued expenses
    
    
    267,777
    
    
    
    214,018Total Current Liabilities
    
    
    405,433
    
    
    
    342,516Commitments and ContingenciesStockholders 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
    
    
    
    1,000Common stock, par value $.01; authorized
20,000,000 shares, 15,115,088 and 15,115,088
shares issued
    
    
    151,151
    
    
    
    151,151Additional paid-in capital
    
    
    13,675,642
    
    
    
    13,674,471Accumulated deficit
    
    
    (13,690,346
    )
    
    
    (13,639,872
    )Total Stockholders Equity
    
    
    137,447
    
    
    
    186,750Total Liabilities and Stockholders Equity
    
    $
    542,880
    
    
    $
    529,266
   Page 3 of 16




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VERITEC, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Three months endedSeptember 30,2008
    
    
    2007License and other revenue
    
    $
    432,532
    
    
    $
    70,214Cost of Sales
    
    
    63,596
    
    
    
    30,887Gross Profit
    
    
    368,936
    
    
    
    39,327Operating Expenses:Selling, general and administrative
    
    
    321,376
    
    
    
    354,936Research and development
    
    
    99,095
    
    
    
    139,963Total Operating Expenses
    
    
    420,471
    
    
    
    494,899Loss from Operations
    
    
    (51,535
    )
    
    
    (455,572
    )Other Income:Interest income
    
    
    1,061
    
    
    
    8,557Gain on sale of property and equipment
    
    
    
    
    
    
    985Total Other Income
    
    
    1,061
    
    
    
    9,542Net Loss
    
    $
    (50,474
    )
    
    $
    (446,030
    )Loss Per Common ShareBasic and Diluted
    
    $
    (0.00
    )
    
    $
    (0.03
    )
   Page 4 of 16




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VERITEC, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 Three months endedSeptember 30,2008
    
    
    2007CASH FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (50,474
    )
    
    $
    (446,030
    )Adjustments to reconcile net loss to net cash used by operating activities:Depreciation
    
    
    9,721
    
    
    
    7,390Amortization of software license
    
    
    
    
    
    
    8,333Stock options compensation
    
    
    1,171
    
    
    
    9,766Interest income added to note receivable from RBA
    
    
    
    
    
    
    (2,970
    )Services applied to reduce note receivable from RBA
    
    
    
    
    
    
    28,875Gain on sale of property and equipment
    
    
    
    
    
    
    (985
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (57,911
    )
    
    
    (3,268
    )Inventories
    
    
    14,676
    
    
    
    (1,311
    )Prepaid expenses
    
    
    
    
    
    
    (3,500
    )Accounts payables and accrued expenses
    
    
    62,917
    
    
    
    (16,679
    )Net cash used by operating activities
    
    
    (19,900
    )
    
    
    (420,379
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property and equipment
    
    
    (906
    )
    
    
    Proceeds from sale of property and equipment
    
    
    
    
    
    
    985Net cash provided by (used in) investing activities
    
    
    (906
    )
    
    
    985CASH FLOWS FROM FINANCING ACTIVITIESProceeds on subscription receivable (including $4,423 interest
credited to additional paid-in capital)
    
    
    
    
    
    
    55,556NET DECREASE IN CASH
    
    
    (20,806
    )
    
    
    (363,838
    )CASH AT BEGINNING OF PERIOD
    
    
    334,702
    
    
    
    790,089CASH AT END OF PERIOD
    
    $
    313,896
    
    
    $
    426,251NONCASH ACTIVITIESIssuance of common stock for accrued expenses
    
    $
    
    
    
    $
    27,450
   Page 5 of 16




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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
      inter-company
   ®
   Page 6 of 16




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Page 7 of 16




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weighted-average weighted-average
     Numberof
    
    
    Weighted  AverageShares
    
    
    Exercise PriceOutstanding at June 30, 2008
    
    
    267,749
    
    
    $
    0.82Granted
    
    
    10,000
    
    
    $
    0.14Outstanding at September 30, 2008
    
    
    277,749
    
    
    $
    0.80
     Page 8 of 16




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ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Results of Operations  June 30, 2008 compared to June 30, 2007
    Page 9 of 16




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®
 Cost of Goods Sold
  Operating Expenses
     Page 10 of 16




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Other Income (Expense)
  Liquidity
   Commitments and Contractual Obligations
  Off-Balance Sheet Arrangements
  Critical Accounting Policies
      Page 11 of 16




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ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4 CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
    Page 12 of 16




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Internal Control over Financial Reporting
  
  
 ITEM 1 LEGAL PROCEEDINGS
     Page 13 of 16




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ITEM 1A RISK FACTORS
  
 ITEM 6 EXHIBITS
 31.1
    
    
    CEO Certification required by Rule 13a14(a)/15d14(a) under the Securities Exchange Act of
1934.31.2
    
    
    CFO Certification required by Rule 13a14(a)/15d14(a) under the Securities Exchange Act of
1934.32.1
    
    
    Veritec, Inc. Certification of CEO/CFO pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 (18 U.S.C. §1350).
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SIGNATURES
  VERITEC, INC.By
    
    /s/ Van Thuy Tran

Van Thuy Tran
    
    
    
    November 14, 2008Director, Chief Executive OfficerBy
    
    /s/ Van Thuy Tran

Van Thuy Tran
    
    
    
    November 14, 2008Chief Financial Officer
  Page 15 of 16




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EXHIBIT INDEX
 31.1
    
    
    CEO Certification required by Rule 13a14(a)/15d14(a) under the Securities Exchange Act of
1934.31.2
    
    
    CFO Certification required by Rule 13a14(a)/15d14(a) under the Securities Exchange Act of
1934.32.1
    
    
    Veritec, Inc. Certification of CEO/CFO pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 (18 U.S.C. §1350).
  Page 16 of 16