----

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| Nevada                                                        | 95-3954373                       |
|---------------------------------------------------------------|----------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) | (IRS EmployerIdentification No.) |
|                                                          |                             |
| 2445 Winnetka Avenue N. Golden Valley, MN                     | 55427                            |
| (Address of principal executive offices)                      | (Zip Code)                       |

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| TABLE OF CONTENTS |
|-------------------|
|              |   |   | Page No. |
| PART I            |   |   |   |
|              |   |   |   |
|              | Item 1 | Financial Statements |  2 |
|              |   |   |   |
|              | Item 2 | Managements Discussion and Analysis of FInancial Condition and Results of Operations |  10 |
|              |   |   |   |
|              | Item 3 | Quantitative and Qualitative Disclosures about Market Risk |  12 |
|              |   |   |   |
|              | Item 4 | Controls and Procedures |  12 |
|              |   |   |   |
| Part II           |   |   |   |
|              |   |   |   |
|              | Item 1 | Legal Proceedings |  12 |
|              |   |   |   |
|              | Item 1A | Risk Factors |  12 |
|              |   |   |   |
|              | Item 2 | Unregistered Sale of Equity Securities and use of Proceeds |  12 |
|              |   |   |   |
|              | Item 3 | Defaults Upon Senior Securities |  12 |
|              |   |   |   |
|              | Item 4 | (Removed and Reserved) |  12 |
|              |   |   |   |
|              | Item 5 | Other Information |  12 |
|              |   |   |   |
|              | Item 6 | Exhibits |  12 |
|              |   |   |   |
|              | Signatures |  13 |

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|                                                                                                                                                   | March 31, |        | June 30, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-------------|----------|
|                                                                                                                                                   | 2011      |        | 2010     |
| ASSETS                                                                                                                                                 |      | (Unaudited) |     |   |   |   |
|                                                                                                                                                   |      |        |     |   |   |   |
| Current Assets:                                                                                                                                        |      |        |     |   |   |   |
| Cash                                                                                                                                                   | $         | 21,939      |     | $ | 31,915 |   |
| Accounts receivable, net of allowance of $8,650                                                                                                        |      | 25,631      |     |   | 76,363 |   |
| Inventories                                                                                                                                            |      | 6,317       |     |   | 3,394 |   |
| Prepaid expenses                                                                                                                                       |      | 29,906      |     |   | 29,781 |   |
| Employee advances                                                                                                                                      |      | 3,037       |     |   | 5,037 |   |
| Total Current Assets                                                                                                                                   |      | 86,830      |     |   | 146,490 |   |
|                                                                                                                                                   |      |        |     |   |   |   |
| Property and Equipment, net of accumulated depreciation of $211,763 and $190,305, respectively                                                         |      | 23,620      |     |   | 45,079 |   |
| Total Assets                                                                                                                                           | $         | 110,450     | $        | 191,569 |   |
|                                                                                                                                                   |      |        |     |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                            |      |        |     |   |   |
|                                                                                                                                                   |      |        |     |   |   |
| Current Liabilities:                                                                                                                                   |      |        |     |   |   |
| Notes payable, net of discount of $0 and $1,003, respectively                                                                                          | $         | 150,075     | $        | 140,964 |   |
| Notes payable, related party, net of discount of $0 and $6,310, respectively                                                                           |      | 2,045,740   |     | 1,802,096 |   |
| Accounts payable                                                                                                                                       |      | 706,910     |     | 518,215 |   |
| Payroll tax liabilities                                                                                                                                |      | 294,858     |     | 103,002 |   |
| Accrued expenses and other current liabilities                                                                                                         |      | 258,725     |     | 205,450 |   |
| Total Current Liabilities                                                                                                                              |      | 3,456,308   |     | 2,769,727 |   |
|                                                                                                                                                   |      |        |     |   |   |
| Commitments and Contingencies                                                                                                                          |      |        |     |   |   |
|                                                                                                                                                   |      |        |     |   |   |
| Stockholders’ Deficit:                                                                                                                           |      |        |     |   |   |
| Convertible preferred stock, par value $1.00; authorized 10,000,000 shares, 276,000 shares of Series H authorized, 1,000 shares issued and outstanding |      | 1,000       |     | 1,000 |   |
| Common stock, par value $.01; authorized 50,000,000 shares, 15,920,088 shares issued and outstanding                                                   |      | 159,201     |     | 159,201 |   |
| Additional paid-in capital                                                                                                                             |      | 14,282,739  |     | 14,281,531 |   |
| Accumulated deficit                                                                                                                                    |      | (17,788,798 |  )  | (17,019,890 | ) |
| Total Stockholders’ Deficit                                                                                                                      |      | ( 3,345,858 |  )  | ( 2,578,158 | ) |
|                                                                                                                                                   |      |        |     |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                                                      | $         | 110,450     | $        | 191,569 |   |

----

|                                                                              |   | Three months ended March 31, |
|-----------------------------------------------------------------------------------|--------|------------------------------|
|                                                                              |   | 2011                         |   | 2010 |
|                                                                              |   |                         |   |   |   |   |   |   |
| License and other revenue                                                         |   | $                            | 212,851 |   |   | $ | 318,963 |   |
| Cost of Sales                                                                     |   |                         | 83,714 |   |   |   | 150,962 |   |
| Gross Profit                                                                      |   |                         | 129,137 |   |   |   | 168,001 |   |
|                                                                              |   |                         |   |   |   |   |   |   |
| Operating Expenses:                                                               |   |                         |   |   |   |   |   |   |
| Selling, general and administrative                                               |   |                         | 274,596 |   |   |   | 216,139 |   |
| Research and development                                                          |   |                         | 38,896 |   |   |   | 115,195 |   |
| Total Operating Expenses                                                          |   |                         | 313,492 |   |   |   | 331,334 |   |
|                                                                              |   |                         |   |   |   |   |   |   |
| Loss from Operations                                                              |   |                         | (184,355 | ) |   |   | (163,333 | ) |
|                                                                              |   |                         |   |   |   |   |   |   |
| Interest expense, including $36,192 and $31,748, respectively, to related parties |   |                         | (39,041 | ) |   |   | (37,926 | ) |
|                                                                              |   |                         |   |   |   |   |   |   |
| Net Loss                                                                          |   | $                            | (223,396 | ) |   | $ | (201,259 | ) |
|                                                                              |   |                         |   |   |   |   |   |   |
| Loss Per Common Share,                                                            |   |                         |   |   |   |   |   |   |
| Basic and Diluted                                                                 |   | $                            | (0.01 | ) |   | $ | (0.01 | ) |

| Weighted Average Number of Shares Outstanding, |   |   |       |   |   |   |       |   |
|------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|     Basic and Diluted      |   |   | 15,920,088 |   |   |   | 15,868,190 |   |

----

|                                                                                                                         |   | Nine months ended March 31, |
|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|
|                                                                                                                         |   | 2011                        |   | 2010 |
|                                                                                                                         |   |                        |   |   |   |   |   |   |
| License and other revenue                                                                                                    |   | $                           | 678,919 |   |   | $ | 638,621 |   |
| Cost of Sales                                                                                                                |   |                        | 260,468 |   |   |   | 439,846 |   |
| Gross Profit                                                                                                                 |   |                        | 418,451 |   |   |   | 198,775 |   |
|                                                                                                                         |   |                        |   |   |   |   |   |   |
| Operating Expenses:                                                                                                          |   |                        |   |   |   |   |   |   |
| Selling, general and administrative                                                                                          |   |                        | 883,033 |   |   |   | 1,171,087 |   |
| Research and development                                                                                                     |   |                        | 183,720 |   |   |   | 455,176 |   |
| Total Operating Expenses                                                                                                     |   |                        | 1,066,753 |   |   |   | 1,626,263 |   |
|                                                                                                                         |   |                        |   |   |   |   |   |   |
| Loss from Operations                                                                                                         |   |                        | (648,302 | ) |   |   | (1,427,488 | ) |
|                                                                                                                         |   |                        |   |   |   |   |   |   |
| Other Income(Expense):                                                                                                       |   |                        |   |   |   |   |   |   |
|        Interest income                                                                    |   |                        | -- |   |   |   | 30 |   |
|        Interest expense, including $108,135 and $81,295, respectively, to related parties |   |                        | (120,606 | ) |   |   | (100,105 | ) |
|             Total Other Income(Expense)                          |   |                        | (120,606 | ) |   |   | (100,075 | ) |
|                                                                                                                         |   |                        |   |   |   |   |   |   |
| Net Loss                                                                                                                     |   | $                           | (768,908 | ) |   | $ | (1,527,563 | ) |
|                                                                                                                         |   |                        |   |   |   |   |   |   |
| Loss Per Common Share,                                                                                                       |   |                        |   |   |   |   |   |   |
| Basic and Diluted                                                                                                            |   | $                           | (0.05 | ) |   | $ | (0.09 | ) |

| Weighted Average Number of Shares Outstanding, |   |   |       |   |   |   |       |   |
|------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|     Basic and Diluted      |   |   | 15,920,088 |   |   |   | 16,126,876 |   |

----

| `                        |   |            |   |   |         |   |   |    |   |   |        |   |   | Additional |    |   |    |   |       |   |   |
|--------------------------|--------|-----------------|--------|--------|--------------|--------|--------|---------|--------|--------|-------------|--------|--------|------------|---------|--------|---------|--------|------------|--------|--------|
|                     |   | Preferred Stock |   |   | Common Stock |   |   | Paid-in |   |   | Accumulated |   |   |       |    |
|                     |   | Shares          |   |   | Amount       |   |   | Shares  |   |   | Amount      |   |   | Capital    |    |   | Deficit |   |       | Total  |   |
| Balance, July 1, 2010    |   |            | 1,000  |   |         | $      | 1,000  |    |   |   | 15,920,088  |   |   | $          | 159,201 |   |    | $      | 14,281,531 |   |   | $ | (17,019,890 | ) |   | $ | (2,578,158 | ) |
| Stock Based Compensation |   |            |   |   |         |   |   |    |   |   |        |   |   |       |    |   |    |   | 1,208      |   |   |   |   |   |   |   | 1,208 |   |
| Net Loss for the Period  |   |            | -      |   |         |   | -      |    |   |   | -           |   |   |       | -       |   |    |   | -          |   |   |   | (768,908 | ) |   |   | (768,908 | ) |
|                     |   |            |   |   |         |   |   |    |   |   |        |   |   |       |    |   |    |   |       |   |   |   |   |   |   |   |   |   |
| Balance, March 31, 2011  |   |            | 1,000  |   |         | $      | 1,000  |    |   |   | 15,920,088  |   |   | $          | 159,201 |   |    | $      | 14,282,739 |   |   | $ | (17,788,798 | ) |   | $ | (3,345,858 | ) |

----

|                                                                        |   | Nine months ended March 31, |
|-----------------------------------------------------------------------------|--------|-----------------------------|
|                                                                        |   | 2011                        |   | 2010 |
| CASH FLOWS FROM OPERATING ACTIVITIES                                        |   |                        |   |   |   |   |   |   |
| Net loss                                                                    |   | $                           | (768,908 | ) |   | $ | (1527,563 | ) |
| Adjustments to reconcile net loss to net cash used by operating activities: |   |                        |   |   |   |   |   |   |
| Depreciation                                                                |   |                        | 21,458 |   |   |   | 37,697 |   |
| Amortization of discount on notes payable                                   |   |                        | 7,312 |   |   |   | 17,894 |   |
| Fair value of stock options issued to employees                             |   |                        | 1,208 |   |   |   | 73,536 |   |
| Fair value of stock issued for services                                     |   |                        | -- |   |   |   | 153,950 |   |
| Allowance for note receivable                                               |   |                        | 60,000 |   |   |   | -- |   |
| Changes in operating assets and liabilities:                                |   |                        |   |   |   |   |   |   |
| Accounts receivable                                                         |   |                        | 50,732 |   |   |   | (8,783) |   |
| Inventories                                                                 |   |                        | (2,923 | ) |   |   | (1,219) |   |
| Employee advances                                                           |   |                        | 2,000 |   |   |   | 2,862 |   |
| Prepaid expenses                                                            |   |                        | (125) |   |   |   | (6,625) |   |
| Accounts payables and accrued expenses                                      |   |                        | 433,826 |   |   |   | 265,290 |   |
| Interest accrued on notes payable                                           |   |                        | 116,244 |   |   |   | 89,588 |   |
|                                                                        |   |                        |   |   |   |   |   |   |
| Net cash used by operating activities                                       |   |                        | (79,176 | ) |   |   | (903,373 | ) |
|                                                                        |   |                        |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                        |   |                        |   |   |   |   |   |   |
|        Issuance of note receivable       |   |                        | (60,000) |   |   |   | (10,000) |   |
| Net cash used by investing activities                                       |   |                        | (60,000) |   |   |   | (10,000) |   |
|                                                                        |   |                        |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                        |   |                        |   |   |   |   |   |   |
|     Proceeds from notes payable                         |   |                        | 129,200 |   |   |   | 946,960 |   |
|  Payments on notes payable                                             |   |                        | -- |   |   |   | (65,000) |   |
| Net cash provided by financing activities                                   |   |                        | 129,200 |   |   |   | 881,960 |   |
|                                                                        |   |                        |   |   |   |   |   |   |
| NET DECREASE IN CASH                                                        |   |                        | (9,976) |   |   |   | (31,413) |   |
| CASH AT BEGINNING OF PERIOD                                                 |   |                        | 31,915 |   |   |   | 50,019 |   |
| CASH AT END OF PERIOD                                                       |   | $                           | 21,939 |   |   | $ | 18,606 |   |
|                                                                        |   |                        |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                            |   |                        |   |   |   |   |   |   |
| Cash paid for interest                                                      |   | $                           | 606 |   |   | $ | 536 |   |
|                                                                        |   |                        |   |   |   |   |   |   |
| NONCASH ACTIVITIES                                                          |   |                        |   |   |   |   |   |   |
| Issuance of common stock for accrued expenses                               |   | $                           | -- |   |   | $ | 37,500 |   |
| Issuance of common stock in repayment of note payable                       |   |                        | -- |   |   |   | 70,000 |   |
|                                                                        |   |                        |   |   |   |   |   |   |
|                                                                        |   |                        |   |   |   |   |   |   |
|                                                                        |   |                        |   |   |   |   |   |   |

----

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | March 31, 2011                                                      |   | June 30, 2010                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (UNAUDITED)                                                         |   |                                                                                                               |
| Convertible notes payable (includes $114,904 and $107,897, respectively, to non-related parties), unsecured, interest at 8%, due September 2010 through November 2010. The principal and accrued interest are convertible at a conversion price of $0.30. The principal and interest is due immediately on the event of default or change of control. The holders also received warrants to purchase one share of common stock for every $2 of investment. The Company recorded a $20,981 discount on the notes payable for the value of the warrants issued. The discount was amortized over the term of the notes payable.  The unamortized discount as of March 31, 2011 and June 30, 2010, was $0 and $3,758, respectively.  The notes are now in default. |  $   640,659                                    |   |  $  603,871                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Convertible notes payable to related parties, unsecured, principal and interest are convertible into common stock at $0.30 to $0.33 per share, interest at 8 % to 10%, due July to November 2010.  The notes are now in default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |        747,384                   |   |      578,166                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Convertible note payable to related party, secured by the Company’s intellectual property, principal and interest are convertible into common stock at $0.25 per share subject to board of directors’ approval, interest at 8%. The note was due November 2, 2010 and is now in default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |        222,838                   |   |         208,814                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Note payable to related party, secured by the Company’s intellectual property, interest at 8% due August 2010 and is now is default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |        433,350                   |   |   408,732                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Notes payable to related parties, unsecured, interest at 0% to 8%, due on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |           116,414 |   |  110,408                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Note payable, unsecured, interest at 10%, due January 2010 and is now in default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |           22,663  |   |                   21,162 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Convertible note payable, unsecured, principal and interest are convertible into common stock at $0.30 per share subject to board of directors’ approval, interest at 8%, due January 2011 and is now in default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 10,984                                                              |   | 10,384                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Convertible note payable, unsecured, principal and interest are convertible into common stock at $1.00 per share subject to board of directors’ approval, interest at 8% due November 2009 and is now in default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |           1,523   |   |         1,523                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                |   |                                                                                                               |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $       2,195,815                |   | $     1,943,060                                                                           |

|                         |   | March 31, |      |   | June 30, |   |
|------------------------------|--------|-----------|-----------|--------|----------|--------|
|                         |   | 2011      |      |   | 2010     |   |
| Notes payable                |   | $         | 150,075   |   |     | $      | 140,964 |   |
| Notes payable, related party |   |      | 2,045,740 |   |     |   | 1,802,096 |   |
|                         |   | $         | 2,195,815 |   |     | $      | 1,943,060 |   |

|   | Stock options |
|--------|---------------|

|                          | Number of |   | Weighted - Average |
|-------------------------------|-----------|--------|--------------------|
|                          | Shares    |   | Exercise Price     |
|                          |      |   |               |   |   |
| Outstanding at June 30, 2010  | 814,249   |   | $                  | 0.47 |   |
| Granted                       | 10,000    |   | $                  | 0.13 |   |
| Outstanding at March 31, 2011 | 824,249   |   | $                  | 0.47 |   |
| Exercisable at March 31, 2011 | 814,249   |   | $                  | 0.47 |   |

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----

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| §   | We have assigned our audit committee with oversight responsibilities. |
|--------------------|-----------------------------------------------------------------------|

| §   | Our financial statements, periodic reports filed pursuant to the Securities Exchange Act of 1934, as amended, our monthly bank statements and  imaged checks are now continuously reviewed by our chief financial officer and  chief executive officer. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | All significant contracts are now being reviewed and approved by our board of directors in conjunction with the chief executive officer. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 1A | RISK FACTORS |
|---------|--------------|

| ITEM 6 | EXHIBITS |
|--------|----------|

| 31.1   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                          |
| 32.1** | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2** | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

| ** | The certifications attached as Exhibits 32.1 and 32.2 accompany the Quarterly on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” by Veritec, Inc. for purposes of Section 18 of the Securities Exchange Act. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | SIGNATURES |
|--------|------------|

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----