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                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549
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                                   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, 2000
                                               ------------------
          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)

            1000 BOONE AVENUE NORTH SUITE 110, GOLDEN VALLEY MN 55427
            ---------------------------------------------------------
               (Address of principal executive offices, zip code)

                                  763-525-8470
              ----------------------------------------------------
              (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
                                             ---   ---
         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, 2000 the company had:

                        Number of Shares of Common Stock
             ------------------------------------------------------
                                    6,530,612
             ------------------------------------------------------

                                       1
<PAGE>
                          PART I. FINANCIAL INFORMATION
                          -----------------------------
Item 1. Financial Statements
----------------------------      VERITEC INC
                                  BALANCE SHEET
                                   (unaudited)

                                             30-Sep-00           30-Jun-00
                Assets
Current Assets
Cash                                       $       4,264          $       3,964
Receivables                                       84,354                 49,650
Inventories                                       55,962                 44,559
Prepaids                                          10,500                  2,500
                                           -------------          -------------
Total Current Assets                       $     155,080          $     100,673

Fixed Assets (net)                         $       7,244                  7,200
Intangible assets (net)                          163,333                173,333
                                           -------------           ------------
Total Assets                               $     325,657           $    281,206
                                           =============           ============

        LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)

Current Liabilities

Notes payable
Notes Payable (secured)                          $88,252           $    108,366
Convertible note (secured)                       275,647                252,322
Bank overdraft                                     5,194                 35,362
Accounts payable & accrued expenses        $     561,801                412,083
                                           -------------           ------------
Total current liabilities                  $     930,894           $    808,133
                                           -------------           ------------
Prepayment on stock & subscription         $      22,492           $     18,047
receivable

Stockholders' equity (deficit)
  Preferred stock, par value $1.00,        $     366,007           $    366,007
  authorized 10,000,000 shares, 275,000
      shares of Series H authorized
Common stock, par value $.01,                     65,306                 65,306
      authorized 20,000,000 shares
Subscription receivable                       (1,186,584)            (1,212,049)
Additional paid in capital                    11,461,499             11,431,439
Accumulated deficit                          (11,333,956)           (11,195,678)
Stockholders' equity (deficit)                  (627,729)              (544,975)
                                           -------------           ------------
Total liabilities & stockholders' equity   $     325,657           $    281,205
                (deficit)                  =============           ============



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


                                       2
<PAGE>
                                  VERITEC INC
                             STATEMENT OF OPERATIONS
                                   (unaudited)

                                         For the quarter ending

                                       30-Sep-00     30-Sep-99

Revenues

Total Revenues                     $     79,854     $   45,852
Cost of Sales                            19,349          3,583
                                   ------------     ----------

Gross Profit                       $     60,505     $   42,269

Sales commissions                  $      2,488     $   13,785
                                   ------------     ----------

Gross profit after commissions &   $     58,017     $   28,484
             warranty

Expenses:

Administration                     $    192,891     $   50,975
Sales & Marketing
                                              -          3,792
Engineering & R&D                         1,692         42,797
                                   ------------     ----------
Total Expenses                     $    194,583     $   97,564
Gain (loss) from operations        $   (136,566)    $  (69,080)
Other Income (expense)

Interest income (expense) net      $     (1,713)    $   29,380
Total other income (expense)       $     (1,713)    $   29,380
                                   -------------    ----------
Net Income (loss)                  $   (138,279)    $  (39,700)
                                   ============     ==========

Earning (loss) per share              ($.02)           ($.01)












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




                                       3
<PAGE>
                                  VERITEC INC
                           STATEMENT OF CASH FLOWS
                                         For the quarter ending September 30,

                                                (unaudited)      (unaudited)
                                                   2000              1999

Cash flow from operating activities
Net loss                                        $  (138,279)    $     (39,700)
   Adjustments to reconcile net loss to net cash from operating activities

Depreciation and amortization                   $     9,956     $       1,275
(Increase) decrease in assets
Receivables                                         (34,704)           23,000
Inventories                                         (11,403)          (11,816)
Prepaids                                             (8,000)
                                                                            -
Increase (decrease) in liabilities
                                                                            -
Accounts payable & accrued expenses                 149,718           (31,062)
Changes in secured liabilities                        3,212
Bank overdraft                                      (30,168)                -
                                               -------------    -------------
Net cash used by opening activities            $    (59,668)    $     (58,303)

Cash flow from financing activities
Prepayment on subscription receivable          $      4,444     $      37,273
Subscription receivable                              25,465        (1,284,750)
Issuance of preferred stock                                         1,315,359
Added paid in capital                              30,060.0                 -
                                               ------------     -------------

Net cash provided by financing activities      $     59,969     $      67,882

Net cash increase for period                   $        301     $       9,579
Cash at beginning of the period                       3,964             3,664
rounding                                                 (1)                -
                                               ------------     -------------
Cash at the end of the period                  $      4,264     $      13,243
                                               ============     =============
Basis of Presentation

     The unaudited financial  statements  presented herein have been prepared by
the Company,  without audit,  pursuant to the rules and  regulations for interim
financial  information  and the  instructions to Form 10-QSB and Regulation S-B.
Accordingly,  certain information and footnote  disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principals have been omitted.  These unaudited consolidated financial statements
should be read in  conjunction  with the financial  statements and notes thereto
included in the  Company's  Report on Form 10-KSB for the fiscal year ended June
30, 2000.  In the opinion of  management,  the  unaudited  financial  statements
reflect all adjustments  (consisting of normal recurring  accruals only),  which
are necessary to present fairly the consolidated financial position,  results of
operations,  and  changes in cash flow of the  company.  Operating  results  for
interim  periods are not  necessarily  indicative  of the  results  which may be
expected for the entire year.

                                       4
<PAGE>
Cash
----
          Cash balances are maintained in a single  financial  institution.  The
  balances  from time to time exceed the federally  insured  limits of $100,000.
  The company has  experienced  no losses in these accounts and believes that it
  is not exposed to any significant
     risk of loss on its cash  balances.  The cost and fair market  value of any
financial instruments held are approximately equal.

Revenues
--------
     Revenues  from  products  and  engineering  sales are  recognized  when the
products  are shipped and  services  preformed.  Royalties  and license fees are
recognized upon completion of the terms of the agreement.

     Foreign based revenue  accounted for 100% of the revenues earned from sales
of product and royalties  during this quarter.  All sales were made and received
in United States dollars. There was no currency exchange risk.


Item 2.  Management's Discussion and Analysis
---------------------------------------------
MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND RESUTS OF
OPERATIONS.

Notes payable to a group of secured creditors - "The Gant Group"
----------------------------------------------------------------
         As   discussed   more   completely   in   NOTE  8  --   NOTES   PAYABLE
(SECURED)/CONVERTIBLE  NOTE (SECURED) found in the auditor's  report in the Form
10-KSB  filed by the company for the period  ending June 30,  2000,  the Mathews
Group has been making  principal  and interest  payments to the Gant Group for a
note from the company held by the Gant Group. Payments on this note are current.

Liquidity and Capital Resources
-------------------------------
Debt owed by the Company at September 30, 2000 was as follows

                                   (unaudited)   (unaudited)        increase
                                    30-Sep-00      30-Jun-00       (decrease)

Notes Payable (secured)             $   85,040   $  108,366        $ (23,326)
Convertible note (secured)             275,647      252,322           23,325
Bank overdraft                           5,194       35,362          (30,168)
Accounts payable & accrued expenses $  565,013   $  412,083          152,930
                                    ----------   ----------        ---------
Total liabilities                   $  930,894   $  808,133        $ 122,761
                                    ===========  ==========        =========


           During the period ending  September 30, 2000 the company added to its
   accounts  payable  during the period  accounting  for 49% of the  increase in
   debt. The company took on these additional  payables to record the additional
   costs for professional services.




                                       5
<PAGE>
     The working capital of the company is shown below. The company's  liquidity
has declined during the quarter.
                                      30-Sep-00                     30-Jun-00
                                     (unaudited)                   (unaudited)
Working capital (deficit)        $     (415,127)               $     (346,772)
                                 ===============               ===============
     The company does not expect revenues from operations to be adequate to meet
all costs and expenses of the company for the remainder of the fiscal year.  The
company  must  secure  adequate  and  stable  financing  to allow it to meet the
selling  opportunities  that exist. The company is continuing to solicit present
customers,  develop future customers, add sufficient staff, and raise additional
investment in order to increase its sales.  However,  there is no assurance that
any of these  efforts will result in  additional  sales  sufficient  to generate
adequate revenues to meet the costs and expenses of company operations.

Financial and Operational Outlook
---------------------------------
     The  company  received  orders for its  programmable  hand  scanners in the
amount of $44,000 from foreign customers during the quarter. These scanners were
completed and delivered during the quarter.

     The  royalty  from  Mitsubishi  for  sales in  Korea  and  other  countries
continued to be received  and is expected to bring a constant  stream of revenue
into the company on a quarterly basis in the future.

     Working models of our scanners have been received and paid for by a company
in North America and Korea. Future sales to these companies are possible.

Results of Operations
---------------------
                        Comparison of the quarter ending September 30, 2000 with
the quarter ending September 30, 1999.

     The Company had  revenues of $79,854 in the  quarter  ended  September  30,
2000, as compared with $45,852 during the quarter ending September 30, 1999. The
revenues for the quarter in 2000 were from sales of scanners and royalties.  The
revenues from the 1999 quarter were also from scanner sales,  engineering sales,
and royalties. The Company is in discussion with several potential customers for
fixed and portable scanner sales but cannot  reasonably  project future revenues
at this time.  Foreign  business  companies  have inquired  about  licensing the
Company's  software for use outside of North  America.  There is no assurance at
this time that the company can generate  sufficient revenue to break even in the
foreseeable future.

     Operating  expenses  increased in the September 2000 quarter as compared to
the  1999  quarter  due to an  increase  in  operating  activity  on the part of
management  to  complete  the sales made in the year ended June 30,  2000 and to
raise money for on going operations of the business.

      (unaudited)                For the Quarter Ending September 30,
Expense category                     2000             1999        Inc/(dec)
                                     ----             ----        ---------
General and Administrative     $    192,891       $     50,975     $141,916
Sales and marketing            $          -       $      3,792     $ (3,792)
Engineering, R&D               $      1,692       $     42,797     $(41,105)
                               ------------       ------------     --------
                               $    194,583       $     97,564     $ 97,019
                               ============       ============     ========
                                       6
<PAGE>
         Engineering,  R&D expenses  decreased because the Company is moving out
of the engineering  development phase of its products and into the marketing and
selling phase of its operations.

         Sales and  marketing  expenses  decreased  due to time spent  trying to
attract capital investment in the company.


Capital Expenditures and Future Commitments
-------------------------------------------
         Capital expenditures amounting to $3,238.00 were made during the period
for office  equipment.  There are no current  commitments  for material  capital
expenditures  during  the  next 9  months.  The  company  believes  its need for
additional capital equipment will continue if expected new orders are placed for
its products.  The amount of such additional  capital  required is uncertain and
may be beyond that which is generated from operations.


Factors that may effect future results.
---------------------------------------
         The Matthews  Group  continues to make payments of $18,518.52 per month
as required by the subscription agreement.  The Matthews Group has, from time to
time,  advanced amounts in addition to the required monthly payment as needed to
finance the continued operations of the company. The company's marketing, sales,
and production program will require additional  financing until the revenue from
sales  exceeds the cash  provided  from sales  collections  and the  payments of
$18,518.52 per month.  There is no formal commitment on the part of the Matthews
Group or any other person to provide this additional cash.


                            PART II OTHER INFORMATION
                            -------------------------

Item 1.  Legal Proceedings.
---------------------------
         As explained more completely in Form 10-KSB filed for the period ending
June 30, 2000 by the  company,  a  shareholder  is suing the company and various
individuals  alleging  actions  were  taken  without  proper  authority  of  the
corporation's  board of directors and/or contrary to the plan of  reorganization
the corporation filed and completed under Chapter 11 of the U.S. Bankruptcy Act.
Subsequent  to the end of the period  represented  by this Form 10-QSB an answer
was filed and motions submitted to dismiss this action. Results of these answers
and motions are pending at this time.

Item 2.  Changes in Securities.
-------------------------------
         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.

                                       7
<PAGE>
Item 5.  Other Information.
---------------------------
         None.

Item 6.  Exhibits and Reports on Form 8-K.
------------------------------------------
None.


















































                                       8
<PAGE>
                                   SIGNATURES

In accordance with  requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

         Veritec  Inc.
-------------------------

Date:     Nov 3  2000                               /s/ Van Tran
      ---------------------------------             -----------------------
                                                    Van Tran - CEO

Date:     Nov 3  2000                               /s/ Charles HunterMann
      ---------------------------------             -----------------------
                                                    Charles HunterMann -  CFO











































                                       9