We
are in
receipt of your comment letters dated September 5, 2007 to Quintek Technologies,
Inc. (the “Company”). We have addressed your comment letter by reproducing each
comment below (in bold) and providing the Company’s response immediately
following.
We
are
providing our responses which address all comments raised by this Comment
Letter. When all comments have been properly addressed and cleared, we intend
to
file an amended Form 10-KSB which includes all the changes; we will also file
an
Item 4.02 8-K. Our responses to the comments follow.
Note
5. Employee Receivables, page F-12
1.
We
have reviewed your response to comment 1. The statements in our response
that the notes are not doubtful and that the valuation allowance
correctly
states your financial position are contradictory. Furthermore, while
we
recognize the need to maintain records of the interest that is due
on the
notes, this does not equate to recognition of the income in your
financial
statements. Please revise to reverse the recognition of interest
income.
For reference see paragraph 84(g) of Statement of Financial Accounting
Concepts No. 5.
Quintek
Technologies Inc. Response to Item #1:
In
regard
to the employee receivable, it is not recognized as an asset or income in our
financial statements. Interest has only been accrued for the company records
and
a valuation allowance has been created for the principal and interest to record
the asset correctly per GAAP. By creating the valuation account, we did not
recognize either an asset or income in our financial statements.
The
Company acknowledges that: 1) the Company is
responsible for the adequacy and accuracy of disclosure in the
filing;
2)
staff
comments or changes to disclosure in response to staff comments do not foreclose
the Commission from taking any action with respect to the filings;
and 3)
the Company may not assert staff comments as defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United
States.
We
trust
that the foregoing appropriately addresses the issues raised by your recent
Letter of Comment. Thank you in advance for your prompt review and assistance.
