UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549









AMENDMENT
NO. 2 TO FORM 10-KSB







[X]
ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934


For the
fiscal year ended    September
30,
2007








[  ]
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934


For the
transition period
from                                  
to




Commission
file number: 000-31469




MedicalInternationalTechnology,Inc.








1872
Beaulac, Ville Saint-Laurent
 Montreal,
Quebec, Canada HR4 2E9
 (514)
339-9355
 Address
of Principal Executive Offices




Colorado
              84-1509950(State
      of incorporation)
              (IRS
      Employer Identification #)






Securities
      registered under Section 12(b) of the Exchange Act:
              NoneSecurities
      registered under Section 12(g) of the Exchange Act:
              Common
      Stock, par value $.0001 per
share




o
            Check
      whether the issuer is not required to file reports pursuant to Section 13
      or 15(d) of the Exchange Act.




o
            Check
      whether the issuer (1) filed all reports required to be filed by Section
      13 or 15(d) of the Exchange Act
              During
      the past 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.


o
              Check
      if there is no disclosure of delinquent filers in response to Item 405 of
      Regulation SB contained in this form,
                  And
      no disclosure will be contained, to the best of registrant's knowledge, in
      definitive proxy or information
                    Statements
      incorporated by reference in Part III of this Form 10-KSB or any amendment
      to this Form
10-KSB.


Indicate
      by check mark whether the registrant is a shell company (as defined by
      Rule 12n-2 of the Exchange Act).oYES  x NO


Issuer's
      revenues for its most recent fiscal year:  $338,526.




The
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates as of September 30, 2007 is $75,527 (computed by reference
      to the bid/ask price of $0.0262 on August 24,
  2007).


The
      number of shares outstanding of the Registrant's common stock as of
      September 30, 2007 was 27,058,663.
  Transitional
      Small Business Disclosure Format:   oYES  x NO












EXPANATORY
NOTE
 
 This
Amendment No. 2 to the annual report on Form 10K/A is being filed to amend our
annual report on Form 10K/A for the year ended September 30, 2007, which was
originally reported on January 9, 2008.  We are filing this Form 10K/A
to amend and restate Item 7, Financial Statements and to revise the
certifications.
 
 As
previously reported on Form 8-K filed on October 29, 2009, the officers of
Medical International Technology, Inc. (the “Company”) concluded that the
financial statements included in our Annual Report on Form 10-K for the years
ended September 30, 2008 and 2007, and the Quarterly Reports for the periods
ended December 31, 2008, March 31, 2009 and June 30, 2009, should be restated to
correct a foreign currency translation error.  At each respective
balance sheet date, property and equipment, including accumulated depreciation,
was translated using historical exchange rates at the date of purchase rather
than the current exchange rate at each balance sheet date, as required by SFAS
No. 52.  The correction of the translation error had no effect on net
income (loss) or cash flows as previously reported in any
period.
 
 In
addition, the Company will be amending its Statement of Cash Flows for the year
ended September 30, 2007 to properly present and disclose certain non-cash
transactions that were previously included as cash
transactions.  There was no effect on the net increase in cash for the
year ended September 30, 2007 as a result of these
corrections.
 
 As the
result of the currency translation error and the incorrect presentation of
non-cash transactions during fiscal 2007, we are restating our financial
statements included in the Annual Reports on Form 10-K and Form 10-K/A for the
years ended September 30, 2008 and 2007, respectively, and the Quarterly Reports
for the periods ended December 31, 2008, March 31, 2009, June 30, 2009 and
associated disclosures.
 
 For the
convenience of the reader, this Form 10-K/A, sets forth the Form 10-K/A
(Amendment No. 1) in its entirety, as amended by this Form 10K/A.  However,
this Form 10-K/A amends only Item 7 of Part II in its entirety, in each case,
solely as a result of, and to reflect, the Restatement, and, except as noted
above, no other information in the Form 10-K/A (Amendment No, 1) is amended
hereby.  In addition, Item 15 of Part IV of this Form 10-K/A has been
amended to contain the currently-dated certifications from our Chief Executive
Officer and Chief Financial Officer required under Sections 302 and 906 of the
Sarbanes-Oxley Act of 2002.  These certifications are attached to this Form
10-K/A as Exhibits31.1, 31.2, 32.1, and 32.2.
 
 This Form
10-K/A does not reflect events occurring after the filing of the Original Form
10-K or Amendment No. 1 to the Form 10-K, and does not modify or update the
disclosures therein in any way other than as required to reflect the adjustments
described above.














Table of
Contents






Description
      of Business
            3Description
      of Property
            9Legal
      Proceedings
            10Submission
      of Matters to a Vote of Security Holders
            10Market
      for Common Equity and Related Stockholder Matters
            11Recent
      Sales of Unregistered Securities
            12Equity
      Compensation Plan Information
            13Management's
      Discussion and Analysis or Plan of Operations
            14Financial
      Statements
            17Changes
      In / Disagreements with Accountants on Accounting/Financial
      Disclosure
            35Controls
      and Procedures
            35Other
      Information
            35Directors,
      Executive Officers, Promoters and Control Persons
            35Section
      16(a) Beneficial Ownership Reporting Compliance
            36Code
      of Ethics
            36Executive
      Compensation
            37Security
      Ownership of Certain Beneficial Owners and Management
            39Certain
      Relationships and Related Transactions
            40Exhibits
      and Reports on Form 8-K
            40Index
      to Exhibits and Reports
            40Principal
      Accountant Fees and Services
            41Signatures
            42






-2-










Description
of Business




Forward-Looking
Statements




Certain
statements concerning the Company's plans and intentions included herein may
constitute forward-looking statements for purposes of the Securities Litigation
Reform Act of 1995 for which the Company claims a safe harbor under that Act.
There are a number of factors that may affect the future results of the Company,
including, but not limited to, (a) the ability of the company to obtain
additional funding for operations, (b) the continued availability of management
to develop the business plan, (c) regulatory acceptance of our products in
diverse localities and (d) successful development and market acceptance of the
company’s products.




This
periodic report may contain both historical facts and forward-looking
statements.  Any forward-looking statements involve risks and
uncertainties, including, but not limited to, those mentioned
above.  Moreover, future revenue and margin trends cannot be reliably
predicted.




General




Medical
International Technology, Inc. was incorporated in the State of Colorado on July
19, 1999.  The company has three wholly-owned subsidiaries, Medical
International Technologies Canada, Inc. (MIT Canada), a Canadian company,
acquired in June of 2002, 3567940 Canada inc. a Canadian company, acquired in
June of 2002 and ScanView, a Canadian company, acquired in June of
2007.




Medical
International Technology, Inc. has authorized 100,000,000 shares of common
stock, par value $.0001 and 3,000,000 shares of preferred stock, par value
$.0001. Medical International Technology, Inc.'s common stock is traded on the
NASD's Over-The-Counter Pink Sheets under the symbol "MDLH.PK".




The
Company has a September 30th
fiscal year end.




Description
of Business




Medical International Technology,
Inc.(MIT) is based in Montreal, Canada; specializing in the research,
development, marketing and sale of needle-free jet injector products designed
for humans and animals, for single and mass injections. Needle-free jet injector
technology and products provide advantages over traditional needle injection
techniques and products, including; efficiency, handling security, biological
waste elimination, and patient stress reduction.




ScanView has a unique,
portable and battery operated ultrasound diagnostic medical devices, using a
variety of probes for pathological and physiological evaluation of organs such
as the heart, kidneys, liver, thyroid, uterus and ovaries. They serve equally
well to detect kidney stones, diagnose pregnancy, visualize follicle development
and carry out all other normal ultrasound diagnostic procedures.




Medical
International Technology's intends to concentrate its activities in the medical
and para-medical sectors, in particular, in the field of instrumentation. The
company's strategy is to build a good order agenda for its different products
and establish strategic alliances with different pharmaceutical companies and
manufacturers to ensure good distribution channels for its
products.




MIT Needle-free Jet injector
Segment




The
benefits of needle-free injection compared to needle injection, in particular
with respect to the features of Medical International Technology products, can
be summarized as follows:




(1)
            Less
      tissue damage and less painful;


(2)
            Simple,
      fast and effective;


(3)
            Precise,
      reliable and safe;


(4)
            Good
      absorption of liquids;






-3-







(5)
            Prevents
      stress from traditional needle syringes and infections from contaminated
      needles;


(6)
            Friendly
      to the environment (No biological
waste);


(7)
            Affordable
      and economical; and


(8)
            Efficient
      use of medication used.




Target Products and
Market




Animal
Sector:




Medical
International Technology, Inc. markets several Models of Agro-Jet Needle-Free
injectors. The AGRO-JET Model MIT II, MIT III, MIT V, MIT VI, MIT X, MIT XI, MIT
XII and MIT XIV. The AGRO-JET technology is a Low pressure, high performance,
semi-automatic needle-free injector intended for the general use of the
livestock market. The Models MIT II and MIT III is intended to target piglets of
up to 20Kg. Piglets are one of the largest markets in the animal sector, because
these animals require a large number of injections during their
growth.




The Model
MIT IIP and MIT XII, is manly targeting the world market for vaccination of
Poultry, eliminating risks associated with cross contamination. The mass
vaccination capabilities and reduced risks of cross contamination make these
models suited to combat pandemic fears like Bird Flu and other global threats
requiring mass vaccinations to prevent their spread.




The
Agro-Jet Models MIT VI and X is a product intended for Pigs larger then 20Kg.,
Swine, Veal, Cattle, Beef   Sheep, Equine and other
livestock.




MIT V,
MIT XI and MIT XIV are intended for sporadic injections with a reusable
cartridge, of up to 5 ml.




Human
Sector:




MED-JET
is a similar product to the AGRO-JET Model MIT II intended for the mass
vaccination of Human. MIT has received Health Canada approval and is in the
process of obtaining FDA approval. MIT is marketing and selling its MED-JET in
clinics in Canada and intends to market and sell in many other markets during
the next fiscal year.




PRO-JET
is a variation of the AGRO--JET products, in "pen-form", and intended for use in
the human sector. The main customers targeted will be hospitals, clinics and
individuals who must inject medications at home (diabetics and others).
Needle-free injection technology, for humans even more than for animals, allows
for painless injections and reduces the damage to skin and tissues, especially
for people who must inject themselves frequently, such as:




(1)
            Diabetics


(2)
            Allergy
      Injections


(3)
            Vitamins
      Injections


(4)
            Growth
      Hormone Injections


(5)
            Antibiotics
      Injections


(6)
            Birth
      Control or Impotence Injections


(7)
            Vaccines
      for Children


(8)
            Antidote
      Vaccines for bee stings or snake bites, for
  example


(9)
            Other
      neuroplegics




Medical
International Technology, Inc. will target the diabetics market in fiscal year
2008. MIT will begin in the markets where our products are currently approved
and continue our efforts in localities where approvals are pending. The market
potential in this sector is extremely large because there are many diabetics
throughout the world and many must inject insulin daily. A secondary market will
be the allergy market. The allergy market includes a similar potential, as the
number of individuals affected is quite large, as are the variety of allergies
that may be involved. We are currently unable to access many of these markets
due to the need for additional regulatory approvals in the localities for the
various applications.






-4-











Marketing and
Distribution




MIT
promotes its products in many countries including the United States of America.
MIT is exerting every effort and using its resources to promote its products and
to open markets for its technology. As we continue to market our products, we
hope to gain broader acceptance of the needle-free injection
technology.




MIT has
adopted an approach with potential distributors; whereby, new distributors are
allowed six months to test the market for the AGRO-JET. MIT is then able better
evaluate potential distributors before signing long term Distribution
Agreements. Where MIT may experience difficulties with distributors meeting
their purchasing schedules, we will work with these distributors to assist them
in developing their respective markets.




A new
study published in March of 2007 has shown once more that the MED-JET-MBX has
given excellent results anesthetizing patients who receive medical treatments
which involve multiple injections such as for Hyperhydrosis (excessive sweating
of the hands, feet and under arms) and BOTOX ® injections.




Product
Development




Medical
International Technologies is proceeding with the test requested earlier by the
FDA, and is expecting to finalize the tests during 2008 fiscal
year.




According
to the International Sharps Injury Prevention Society (http://www.isips.org), it
has been estimated that a contaminated sharp point accidentally sticks one out
of every seven workers each and every year. The Center for Disease Control (CDC:
http://www.cdc.gov/niosh/2000-108.html#5) estimates that there are 600,000 to
800,000 needle stick injuries per year in the U.S. alone, and many are not
reported. More than 20 types of infectious agents have been transmitted through
needlesticks, including hepatitis B and C, tuberculosis, syphilis, malaria,
herpes, diphtheria, gonorrhea, typhus and Rocky Mountain spotted fever. The
MED-JET will eliminate this risk to our health care professionals and create a
safer workplace. Other advantages include its light weight (0.5 kg) and an
excellent medication absorption rate. Additionally, the system has the ability
to increase or decrease the volume and pressure of injection. This technology is
unique to MIT’s MED-JET MBX Injector. The system is designed to allow for the
injection of up to 600 individuals an hour.




Other
advantages include its light weight (0.5 kg) and an excellent medication
absorption rate. The system is designed to inject up to 600 individuals an hour.
The MED-JET has patent protection and is approved for use in human medicine in
Canada.




The
approval process can be expensive and may take extended period of time. There
can be no assurance that this system will receive approval from the FDA or if
approved gain broad acceptance by the medical community or individual
patients.




We
previously announced that our needle free injection was chosen for testing in a
study regarding the treatment of Hyperhydrosis. Dr. Antranik Benohanian MD,
FRCPC Dermatologist at Saint Luc Hospital of The Montreal University Hospital
Center, has begun tests of MIT’s human injectors in his Hyperhydrosis studies.
In addition to the underarms, Hyprehydrosis often occurs in the palms, soles of
the feet and even the face. Currently, treatments typically carried out by
needle injections that must be repeated every 4-6 months, in excessive pain to
patients. Many patients are reluctant to receive multiple injections in their
hand and their face due to the pain associated with traditional
injections.




The
results have been published in two major associations. First was the American
Academy of Dermatology and the second, in the British Journal of Dermatology.
These publications provide strong evidence that the MED-JET Model MBX from
Medical International Technology Inc., the only system in the world than can
inject a minute volume of 0.02 ml up to 0.3 ml. fast, reliable and almost
painless, in any part on the human body.






-5-







Dr.
Benohanian has continued using the MED-JET Model MBX for the treatment of
Hyperhydrosis on over 100 patients; he is also using the MED-JET Model MBX for
other treatments in the dermatology field.




Other
Doctors in Montreal are also using MED-JET Model MBX and the MED-JET-H-II for
injections of Lidocaine, Botox and Cortisone for different treatment, in
Dermatology, minor surgery, Phisiatric and others.




MIT’s
MED-JET ® MBX injector is expected to reduce patient’s pain and discomfort in
these sensitive areas of the body that is caused by traditional needle
injections. In addition, MIT’s needle free injector results in a less severe
puncture since it has a volume of 0.02cc. Up-to. 3cc. It is important to be able
to increase or decrease the volume and pressure of injection, based on the
comfort level of the patient. This technology is unique to MIT’s MED-JET MBX
Injector.




Hyperhydrosis
is the medical term for excessive sweating. Millions of people worldwide suffer
from this condition. In a recent survey (J Am Acad Dermato 2004:51(2): 241-258),
an estimated 2.8% of the U.S. populations is affected by some form of this
condition, with about a third of them describing their excessive sweating as
barely tolerable or worse. The FDA approved BOTOX injections in July 2004 to
treat severe Hyperhydrosis. Phase III clinical studies supporting the FDA
approval show that 80% of patients experienced a 50% decrease in sweat
production (source: Allergan, Inc. July 20, 2004 press release)




We
previously announced that the Med Jet(r) Needle Free MBX Model Injector and its
advantages in the treatment of palmar hyperhidrosis had been featured in
theJune 2005 edition
of the Journal of the American Academy of Dermatology (JAAD). The article is
titled: ''Use of needle-free anesthesia in the treatment of palmar hyperhidrosis
with botulinum “A toxin.'' The Journal is dedicated to the clinical and
continuing education needs of the entire dermatologist community and is
internationally known as the leading journal in the field. The Journal ranks in
the top 4.3% of the 5,684 scientific journals most frequently cited (2000
Science Citation Index).




MIT’s
development of the MED-JET MBX injector is further encouraged by the increased
awareness of the Hyperhydrossis condition and available treatments. We note
mainstream discussion of this condition and the BOTOX injection treatment in the
September 2005 issue of “Shape” magazine in the Beauty Q&A section “stop
SWEATING” which includes a testimonial of the procedure.




We
previously announced that in August 2005, Australian Wool Innovation Limited
(AWI) contracted MIT to adapt our Agro-Jet needle free applicator for
intradermal injections of various compounds as possible alternatives to
mulesing. The Agro-Jet applicator is a needle-free medication delivery system
for livestock.




Australian
Wool Innovation Limited (AWI) is in the final stage of negotiation with a
Pharmaceutical partner for the production and Distribution of the various
compounds that will be used with MIT Agro-jet.MIT is expecting to negotiate with
the Pharmaceutical partner and sign a Supply agreement as soon as the agreement
between AWI and the Pharmaceutical Company is signed and sealed.




Mulesing
is the cutting of the skin around the breech (backside) of a lamb to prevent
wool growth. This reduces the risk of breech fly strike caused by a very
aggressive Australian sheep blowfly Lucila cuprina. Without
mulesing, blowfly, flesh eating maggots create painful wounds, causing the sheep
considerable pain and, in many cases, death. Over 10 million sheep go through
this procedure every year.




Australian
Wool Innovation Limited (AWI) is a fully independent public company. Their
mission is to drive research, development and innovation that will increase the
long-term profitability of Australian woolgrowers. The need to find alternatives
to overcome long-standing animal health issues, such as blowfly strike, is an
investment priority for the AWI.




-6-







Scan View; Ultra Sound
Segment




On
December 19, 2005 the Board of MIT adopted a resolution stating “MIT will
acquire all of the issued and outstanding shares of 9139-2449 Quebec Inc
operating under the name “Scanview” for 2,500,000 restricted common shares of
MIT".




On
December 22, 2005 we announced that MIT would proceed with the ScanView
acquisition. Scanview is a portable ultrasound technology and manufacturing
company in Montreal, Quebec, Canada. Scanview was formed in 2003 to develop,
manufacture and market different models of Real Time Ultrasound Scanners, for
Animal and Human applications.




On June
11 2007, the Board of Director of MIT signed an agreement with 9162-9725 Quebec
Inc a Quebec private company, to purchase all of the issued and outstanding
shares of 9139-2449 Quebec Inc. (SCNAVIEW) common stock, for a total of
2,500,000 Common shares of MIT. Following the signing of the agreement MIT
issued to 9162-9725 Quebec Inc. a total of 2,500,000 Common shares of
MIT.




ScanView
has a unique, portable and battery operated ultrasound diagnostic medical
devices, using a variety of probes for pathological and physiological evaluation
of organs such as the heart, kidneys, liver, thyroid, uterus and ovaries. They
serve equally well to detect kidney stones, diagnose pregnancy, visualize
follicle development and carry out all other normal ultrasound diagnostic
procedures.




ScanView
is a private Canadian company owned by Karim Menassa, our CEO and Director,
owning 55% of Scanview, Michel Bayouk, our CFO and Director, owning 10% of
Scanview and three other unrelated shareholders.




Products




The “SCAN
VIEW I”, “SCANVIEW 100-S” and “SCANVIEW 100-SBF” ultra sound scanners, for
animal and human applications are the first models introduced to the market. New
models for human and animal applications will be available in 2008.




These
portable ultrasound diagnostic medical devices use a variety of probes for
pathological and physiological evaluation of organs such as the heart, kidneys,
liver, thyroid, uterus and ovaries. They serve equally well to detect kidney
stones, diagnose pregnancy, visualize follicle development and carry out all
other normal ultrasound diagnostic procedures.




The “SCANVIEW I” and “SCANVIEW 100-S” and
“SCANVIEW 100-SBF” are battery operated and power supplied, using state
of the art and, latest microelectronics components. The Scanners have a built-in
5-inch, LCD Colour monitor, and an integrated PC base video processor, which
allows images and Cine-loop to be transferred to a PC, reproduced and printed at
any time.




Market




The
Veterinary Market




There are
some 795,000 cattle and pig farms around the world to which the Scan View can be
marketed.




Pork is
the most frequently consumed meat in the world, with a consumption rate of 40%.
The five largest pork producers in the world are, in order of size, China,
United States, Germany, Spain and France. Canada is in thirteenth place, just
behind Japan.




The
American pork industry is a vital part of the U.S. economy, generating many
billions of dollars. In 1995, the United States sold more than 103 million hogs,
for $10.6 billion, or 11.6% of total agricultural sales. In 1997, the country
exported more than $1 billion in pork products.






-7-







In 1997,
there were some 138,690-pig farms in the United States. The trend is for these
farms to get bigger: more than 80% of pigs are raised on farms that produce more
than 1,000 pigs per year. Farms producing 50,000 pigs and more per year
substantially increased their market share, rising from 7% in 1988 to 37% in
1997.




Sows have
an average of 6 litters. Each sow gives birth on average to 16 piglets per year.
All sows must be checked for pregnancy in each breeding cycle.




The
Pregnancy diagnosis and back fat measurements program is clearly important in
this industry and accounts for between 30 and 50% of the total veterinary
care.




The
Human Market




While the
“SCANVIEW I” was
originally conceived in response to the needs of veterinary medicine, SCANVIEW
INC. has found an excellent market niche in the human market place.




The new
“SCANVIEW 100-S”for
Human applications was introduced at the end of 2006; the new ultrasound scanner
is for the General Practitioner Clinic industry.




Other
potential markets for the “SCANVIEW 100-S” are First aid
workers in both urban and remote areas, mobile and small clinics around the
world, and field hospitals for armed forces, to name but a few.




There are
over eight hundred (800) clinics in Canada and several thousand in the United
States, which are the target market.




Scanview’s
latest model the “SCANVIEW
100-SBF”which isdesigned for Human body
fat measurements and introduced at the end of 2006, targeting the booming
cosmetic market (plastic surgeon, liposuction, and many other niche markets)
where baby boomers who seek a rejuvenated appearance spending increasing amounts
to have a younger look. Scanview’sobjective in the short
term is to create a niche market for its “SCANVIEW 100-SBF” in this
market and to establish itself as a leader in state-of-the-art ultrasound
scanner in the world.




Competition




There are
several companies producing ultrasound scanners throughout the world, developed
for the human sector. There are only five companies that produce scanners for
the Veterinarian market.




Scanviewis believes that it has
surpassed its competition with its “SCANVIEW I”, “SCANVIEW 100-S”and“SCANVIEW
100-SBF” by having higher performance and better ergonomic
design.




Marketing




Scanview
will expand its distribution network for our products. As discussed, we will
serve two major markets - both human and veterinary medicine. As each market
requires a different approach and has specific individual needs, the marketing
strategy developed for each of these markets is based on SCANVIEW INC. Marketing
management experience and market feedback.




The
foundation of our marketing strategy is based on customer training. Therefore,
each step of our sales and promotional program is geared toward the specific
needs that have been identified for each target market. The objective is to
carefully choose local, influential, successful distributors in selected
territories and optimize market awareness in order to achieve maximum sales
results.




MIT is
continually researching and developing its products to the market
needs.






-8-







Patents and
Trademarks




MIT has
obtained trademark registration in United States on the use of AGRO-JET (Reg.
No. 2,712,089) and MED-JET (Reg. No. 2,798,613).




Regulation and
Approvals




MIT
produces products that may require various approvals by government agencies in
the locals in which they are used. These regulations or approvals vary greatly
depending upon the way our products are used. We may not have the required
approvals for various applications of our products in those localities. We
continue to seek approvals for various applications of our products but the
costs associated with achieving such approvals may exceed our available
resources or be commercially impracticable.




We have
received full certification for our Quality Management System granted under the
International Organization for Standardization's ISO: 9001:2000. This includes
Certification for the “Canadian Medical Device Conformity Assessment System”
(CMDCAS), for devices to be licensed by HEALTH CANADA. The company plans to
aggressively market the MED-JET for human use for mass-inoculation. The company
feels that Canadian and other world markets can benefit greatly from the
MED-JET. By using the MED-JET, health officials have an alternative delivery
method that is safer and faster than the traditional needle.




Medical
International Technologies, Inc has received full certification granted under
the International Organization for Standardization, as well as the Canadian
Medical Device Conformity Assessment System, for devices to be licensed by
HEALTH CANADA. These certifications allow MIT to market the Med-Jet Needle-Free
Injector for human use in all countries other than the U.S., at this point. The
Med-Jet injector has been submitted for FDA approval, which, if accepted, will
allow MIT to sell the Med-Jet in the United States, making it a truly worldwide
system.




The
Company is still working to complete FDA filings for the use of the Med-Jet for
injecting anesthesia in a variety of situations and the use of the Med-Jet-H,
for mass vaccination in case of a pandemic, such as Avian Influenza, Polio,
Tuberculosis, or Malaria.




Medical
International Technologies is proceeding with the test requested earlier by the
FDA, and is expecting to finalize the tests during 2008 fiscal
year.




Australian
Wool Innovation Limited (AWI) is in the final stage of negotiation with a
Pharmaceutical partner for the production and Distribution of the various
compounds that will be used with MIT Agro-jet.




MIT is
expecting to negotiate with the Pharmaceutical partner and sign a Supply
agreement as soon as the agreement between AWI and the Pharmaceutical Company is
signed and sealed.




There can
be no assurance that this system will receive approval from the respective
agencies.




Employees




Currently,
the company has six employees, the President and Chief Executive Officer of the
company, and other employees. As operations are expanded additional employees
will be required.




Description of
Property




Medical
International Technology, Inc. moved offices on October 1, 2006, and currently
leases its office under an operating lease that expires October 31, 2009. These
offices are a 5,200 square foot industrial facility in Montreal Canada.
Facilities include various machine tools and test systems for prototyping and
light production. The annual lease expense for the facilities for the year
ending September 30, 2007 was $29,000. The current lease rate is
$29,000.






-9-




Legal
Proceedings




The
company is or was engaged in the following Legal Proceedings:




(a)
Farimétal Inc. vs. MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC., court
file 500-22-109826-050, for unpaid account to the amount of $13 029.41CDN.
Furthermore, the company INTERNATIONAL MEDICAL TECHNOLOGIES (MIT CANADA) INC.
made a counterclaim of $16 875.00 US against the plaintiff. By virtue of a
judgment, July 31st, 2006, by the Court of Quebec, the company was condemned to
pay the sum of $13 029.41 CDN and the legal interest on this sum. The company
concluded an agreement of refund with the other party, and it, after discussion
with the lawyer of Farimetal Inc. against Medical International Technologies
(MIT Canada) Inc. A judgment was entered against the issuer on the 31st of July
2006, for Cad$ 16,589.20. The parties have agreed to payments of an initial
payment of Cad$ 2,132.27 and eight monthly payments of Cad$ 1,807.12 As of
September 31, 2006 the remaining balance on this judgement was $
16,589.20




(b)
Outils Diacarb Inc. vs. MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC.,
court files 500-22-107217-054, for unpaid account to the amount of
$17,438.99CDN. Furthermore, the company INTERNATIONAL MEDICAL TECHNOLOGIES (MIT
CANADA) INC. made a counterclaim of 16, 875.00 US against the plaintiff. This
action was settled by mutual agreement of the parties on August 31, 2006. The
settlement was satisfied on September 7, 2006 for a single payment of Cad$
12,000.




(C)
COMMISSION DES NORMES DU TRAVAIL vs. 9139-2449 QUEBEC INC. and MEDICAL
INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC., court file 500-22-127766-064, for
unpaid social advantages to the amount of $29 904.00 CDN. The plaintiff who is
represented by the COMMISSION DES NORMES DU TRAVAIL worked for 9139-2449 QUEBEC
INC. The cause of action arises from a person requesting this amount who was
working as a self-employed consultant to 9139-2449 Quebec Inc (Scan
View).




(d)
MCMILLAN BINCH MENDELSOHN vs. IDÉE INTERNATIONALE R & D, INC. and 3567940
CANADA INC. and 2849674 CANADA INC. and MEDICAL INTERNATIONAL TECHNOLOGIES (MIT
CANADA) INC., court file 500-22-117377-054, for unpaid account to the amount of
26, 392.00 CDN. The plaintiff was the legal firm where worked a legal adviser
who was a shareholder of MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC..
On March 26th, 2007 the parties agreed on agreement out of court for an $8
000.00 total sum. The claim related to consultant services of a former attorney
participating on an advisory board. The issuer believes that the law firm was
compensate for all outstanding services and is defending the
claims.




(e) Alain
Deslauriers vs. 9139-2449 QUÉBEC INC. and MEDICAL INTERNATIONAL TECHNOLOGIES
(MIT CANADA) INC. and Karim Ménassa, court file 500-22-126153-066, for unpaid
accounts to the amount of $52 558.00 CDN. The plaintiff, Alain Deslauriers, was
the General Manager of 9139-2449 QUEBEC INC. before he gave his dismissal. The
company and Karim Ménassa believe they should not be involved in this dispute
because the plaintiff is a shareholder of the company and the dispute is
partially about a perceived personal contribution for the proper functioning of
the company, it is believed the cause should be rejected by the
court.




(f) Ratha
Yip vs. MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC. and Karim Ménassa,
small claim court file 500-32-104717-071, for unpaid accounts to the amount of
$7 000.00 CDN. The plaintiff, Ratha Yip, was the designer for the products of
the company. The company believes it should not be involved in this dispute
because that the plaintiff did not execute the services for which he was
engaged, the court should reject the cause.




Submission
of Matters to a Vote of Security Holders




No
matters were submitted to a vote of security holders in the fourth quarter of
the year ending September 30, 2007.







-10-







Market
for Common Equity and Related Stockholder Matters




Market
Information




Medical
International Technology, Inc. common stock is currently listed on Pink Sheets
under the symbol “MDLH.PK” and was formerly listed on the NASD Over-The-Counter
Bulletin Board under the symbol “MDLH”, and prior to November 21, 2005 "MDIR".
The quotations provided are for the over the counter market which reflect
inter-dealer prices without retail mark-up, mark-down or commissions, and may
not represent actual transactions. The prices included below have been obtained
from sources believed to be reliable and have been adjusted historically to
reflect the reverse split of 10 to 1 which occurred on November 21,
2005:




Date
              
              High
              
              
              LowSeptember
      2007
              
              $
              0.08
              
              
              $
              0.02June
      2007
              
              
              0.08
              
              
              
              0.05March
      2007
              
              
              0.10
              
              
              
              0.05December
      2006
              
              
              0.30
              
              
              
              0.15September
      2006
              
              
              0.66
              
              
              
              0.51June
      2006
              
              
              0.61
              
              
              
              0.45March
      2006
              
              
              1.55
              
              
              
              1.19December
      2005
              
              
              1.10
              
              
              
              0.70November 21,
      2005
              
              1:
      10 Stock SplitSeptember
      2005
              
              
              0.50
              
              
              
              0.40June
      2005
              
              
              0.60
              
              
              
              0.40




Holders




Medical
International Technology had 27,058,663 shares of common stock issued and
outstanding as of September 30, 2007, which were held by approximately 63
shareholders and an undetermined number of shareholders holding common shares in
street name (CEDE&CO).




Options




The
company has the following option agreements outstanding as of September 30,
2007:




Geoffrey
Armstrong - Consultant


Options
exercisable to purchase 750,000 common shares at an exercise price of forty
cents ($0.40) per share during the period from October 3, 2005, through October
3, 2007. In the three-month period ending March 31, 2006, the Company issued
50,000 common shares to Geoffrey Armstrong for consulting services. On April 21,
2006, the Company issued 200,000 shares to Geoffrey Armstrong for consulting
services.






-11-





Private
Placements




On
December 7, 2005, the Company completed two rounds of financing. The Units in
these offerings were sold in exempt transactions under, Regulation “S” of the
Securities Act of 1933 and are subject to Rule 144 of the Securities Act of
1933, as amended. The securities are restricted pursuant to Rule
144.




The first
private placement consisted of 2,000,000 Units at a price of $0.25 per unit.
Each unit consisted of one Series A Warrant for the purchase of 2,000,000 shares
of the Company’s common stock at an exercise price of $0.75 per share and one
Series B Warrant for the purchase of 2,000,000 shares of the Company’s common
stock at an exercise price of $1.00 per share. Both the series A and series B
warrants expire on October 27, 2007. The total amount raised from this placement
was $500,000 of which the company was obligated to pay an 8% finder fee to a
consulting firm. Net proceeds to the company less the $40,000 finder fee were
$460,000. The purchaser of this offering was a Canadian entity controlled by a
daughter of the individual controlling the consulting firm.




The
second private placement was for 1,224,000 Units at a price of $0.25 per Unit.
Each unit of this second offering consisted of one Series A Warrant for the
purchase of 1,224,000 shares of the Company’s common stock at an exercise Price
of $0.75 per share and one Series B Warrant for the purchase of 1,224,000 shares
of the Company’s common stock at an exercise price of $1.00 per share. Both the
series A and series B warrants expire on November 07, 2007. The total amount
raised from this placement was $306,000 of which the company is obligated to pay
an 8% finder fee to a consultant. Net proceeds to the company less the $24,480
finder fee were $281,520.




On
December 20, 2005, the company sold in a private placement 1,000,000 Units at a
price of $0.60 per Unit.  Each unit sold in this offering includes one
(1) Series A Warrant for a total of 1,000,000 shares of the Company's common
stock at an exercise price of $0.75 per share the series A warrant expires on
December 19, 2007.  The total amount raised from this placement was
$600,000 of which the company was obligated to pay a 9% finder fee to 9109-7923
Quebec Inc. Net proceeds to the company less the $54,000 finder fee were
$546,000.




Preferred
Stock




As of
September 30, 2007 there was no preferred stock outstanding. Dividend features
and voting rights are at the discretion of the Board of Directors without the
requirement of shareholder approval




Recent
Sales of Unregistered Securities




The
following unregistered securities were issued and are disclosed for the fiscal
2007 period:




On
February 27, 2006, the company issued 153,400 shares to 2849674 Canada Inc., a
company owned as to 100% by Karim Menassa, a director and officer, for a debt
conversion of $61,300.




Additionally,
on February 27, 2006, the company issued 153,400 shares to 1065029 Canada Inc.,
a company owned as to 100% by Michel Bayouk, a director, for a debt conversion
of $61,300.




Pursuant
to an options agreement with Mr. Geoffrey Armstrong – Consultant; in the
three-month period ending March 31, 2006, the Company issued 50,000 common
shares to Geoffrey Armstrong for consulting services. On April 21, 2006, the
Company issued 200,000 shares to Geoffrey Armstrong for consulting
services.




The
following unregistered securities were issued during the year ended September
30, 2007:




On April
27, 2007 the Company issued 761,904 restricted common shares at a price of
$0.0525 per share, the closing price of the Company’s common stock on the date
of issuance, to Idee International R & D Inc., a company owned 100% by
2849674 Canada Inc. for a debt conversion of $40,000. Karim Menassa, our
President and Director control the entity 2849674 Canada Inc.




On April
27, 2007 the Company issued 1,523,809 restricted common shares at a price of
$0.0525 per share, the closing price of the Company’s common stock on the date
of issuance, to 2849674 Canada Inc. for a debt conversion of $40,000. Karim
Menassa, our President and Director control the entity 2849674 Canada
Inc.






-12-







On April
27, 2007 the Company issued 1,391,047 restricted common shares at a price of
$0.0525 per share, the closing price of the Company’s common stock on the date
of issuance, to 9117-2221 Quebec Inc., for a debt conversion of $32,000. Michel
Bayouk, our Financial Officer and Director control the entity 9117-2221 Quebec
Inc.




On June
11 2007, the Board of Director of MIT signed an agreement with 9162-9725 Quebec
Inc a Quebec private company, to purchase all of the issued and outstanding
shares of 9139-2449 Quebec Inc. (SCNAVIEW) common stock, for a total of
2,500,000 Common shares of MIT. Following the signing of the agreement MIT
issued to 9162-9725 Quebec Inc. a total of 2,500,000 Common shares of
MIT.




ScanView
was a private Canadian company owned by Karim Menassa, our CEO and Director,
owning 55% of Scanview, Michel Bayouk, our CFO and Director, owning 10% of
Scanview and three other unrelated shareholders.




On July
17, 2007 the Company issued 3,416,667 restricted common shares at a price of
$0.06 per share, the closing price of the Company’s common stock on the date of
issuance, to Idee International R & D Inc., a company owned 100% by 2849674
Canada Inc. for a debt conversion of $205,000. Karim Menassa, our President and
Director control the entity 2849674 Canada Inc.




On July
17, 2007 the Company issued 1,733,333 restricted common shares at a price of
$0.06 per share, the closing price of the Company’s common stock on the date of
issuance, to 2849674 Canada Inc. for a debt conversion of $104,000. Karim
Menassa, our President and Director control the entity 2849674 Canada
Inc.




On August
20, 2007 the Company issued 841,750 restricted common shares at a price of $0.03
per share, the closing price of the Company’s common stock on the date of
issuance, to Maurice Menassa for services rendered of US$
25,252.50.




On August
24, 2007 the Company issued 1,747,684 restricted common shares at a price of $
0.0262 per share to 2849674 Canada Inc. for services rendered of US$ 45,789.33.
Karim Menassa, our President and Director control the entity 2849674 Canada
Inc.




On August
24, 2007 the Company issued 503,926 restricted common shares at a price of $
0.0262 per share to IDEE INT’L R&D Inc. for a debt conversion of US$
13,202.88. Karim Menassa, our President and Director control the entity 2849674
Canada Inc.




On August
24, 2007 the Company issued 631,106 restricted common shares at a price of $
0.0262 per share to 2849674 Canada Inc. for services rendered of US$ 16,535.00.
Karim Menassa, our President and Director control the entity 2849674 Canada
Inc.




Relating
to the transactions listed above, these shares of stock were issued in
transactions we believe to be exempt from registration under Section 4(2) of the
Securities Act. The recipients of our stock were accredited investors as defined
in Rule 501 of Regulation D promulgated under Section 4(2) of the Securities
Act, and those individuals or entities took their shares for investment purposes
without a view to distribution. Furthermore, they had access to information
concerning our Company and our business prospects; there was no general
solicitation or advertising for the purchase of our shares; there were no
commissions paid; and the securities are restricted pursuant to Rule
144.




Equity Compensation
Plan Information




The
Company has a stock compensation plan under which directors are authorized to
grant incentive stock options, to a maximum of one million (1,000,000) of the
issued and outstanding shares, to directors, employees and consultants of the
Company. The plan provides both for the direct award or sale of shares and for
the grant of options to purchase Shares. The company filed this plan usingForm S-8 on September 28,
2006.







-13-









The
following table provides information as of September 30, 2007 regarding
compensation plans (including individual compensation arrangements) under which
equity securities are authorized for issuance:




Number
      of securities
              
              
              
              
              
              available
      for futureto
      be issued
              
              
              Weighted-average
              
              
              issuance
      under equityupon
      exercise of
              
              
              exercise
      price of
              
              
              compensation
      plansoutstanding
      options,
              
              
              outstanding
      options,
              
              
              (excluding
      securitiesPlan Category
              
              warrants and rights
              
              
              warrants and rights
              
              
              shown in first column)Equity
      compensation plansapproved
      by shareholders(1)(2)
              
              
              0
              
              
              $
              0.00
              
              
              
              0Equity
      compensation plans
              
              
              0
              
              
              $
              0.00
              
              
              
              321,700not
      approved by shareholders(1)(3)Total
              
              
              0
              
              
              $
              0.00
              
              
              
              321,700




(1)Consists of shares of our
common stock issued or remaining available for issuance under our stock
compensation plan.




(2)Approved by shareholders
of Medical International Technology, Inc.




(3)The total common stock
issued from the maximum 1,000,000 shares authorized under the stock compensation
plan as of September 30, 2007 was 678,300 shares.




Dividend
Policy




Medical
International Technology, Inc. has not paid a cash dividend on its common stock
in the past 12 months. The company does not anticipate paying any cash dividends
on its common stock in the next 12-month period.  Management
anticipates that earnings, if any, will be retained to fund the company's
working capital needs and the expansion of its business.  The payment
of any dividends is at the discretion of the Board of Directors.





Management's
Discussion and Analysis or Plan of Operations




Overview




Medical
International Technology, Inc. (MIT) is receiving revenues from sales. The
company has maintained operations from these revenues and through equity and
debt financing. The company has been dependent on advances from related parties
to maintain operations. There are no agreements, assurances or commitments to
continue providing these advances. Products are currently developed, assembled
and shipped from our facility. Component manufacturing is subcontracted to
various suppliers and machine shops.




Distribution
agreements are being sought worldwide for the company’s products.




Financial
Condition and Results of Operations




During the fiscal year ending September
30, 2007 the Company experienced a net loss of $898,376, primarily comprised of
selling, general and administrative expenses of $830,363 and research and development costs
of $134,294. For the prior fiscal year 2006 the Company experienced a net loss
of $1,509,633 where selling, general and administrative expenses totaled
$1,125,042. And research and development costs were
$442,916.




Net comprehensive loss, after adjustment
for foreign currency translation, for fiscal year 2007 was $730,952.






-14-







For the twelve-months ended September
30, 2007 the Company experienced an increase in sales of $68,074 compared to
sales for the same period last year. Gross profit for the twelve-months ended
September 30, 2007 was $216,652 or approximately 18% of sales as compared to a
decrease of 24% for the same period last year.




Costs of sales continue to be increased
by the need to customize many of the items ordered to fit the particular needs
of clients utilizing our products in new applications.




Liquidity
and Capital Resources




During the fiscal year ending September
30, 2007 the Company’s cash position increased by $184,616. Net cash used in
operating activities was $115,573; $190,287 was gained from financing
activities; the effect of exchange rates on cash was an increase of
$183,544.




The
Company has reported a net liability position of $652,757 and has accumulated
operation losses since inception of $6,971,531.which raises substantial doubt
about the Company’s ability to continue as a going concern. The continuation of
the Company is dependent upon the continuing financial support of creditors and
stockholders and upon obtaining the capital requirements for the continuing
operations of the Company. Management believes actions planned and presently
being taken provides the opportunity for the Company to continue as a going
concern.




Medical
International Technology, Inc. expects that revenues from existing and
developing sales may not meet its liquidity requirements for the next 12-month
period at its current level of operations. The company has been dependent on
advances from related parties to maintain operations. There are no agreements,
assurances or commitments to continue providing these advances. The company
continues to rely on management to develop the business and work to develop
sales. Management has and may continue to supplement cash flows from sales with
additional equity and debt financing. Substantially, expanded operations are
expected to require additional capital, either from a future offering of equity
or the company pursuing other methods of financing, as appropriate.




Management
Plan of Operations




Medical
International Technology, Inc. is based in Montreal, Canada; specializing in the
research, development, marketing and sale of needle-free jet injector products
designed for humans and animals, for single and mass injections. Needle-free jet
injector technology and products provide advantages over traditional needle
injection techniques and products, including; efficiency, handling security,
biological waste elimination, and patient stress reduction.




Medical
International Technology's intends to concentrate its activities in the medical
and veterinary sectors, in particular, in the field of Equipment and
instrumentation. The company's strategy is to build good, reliable and cost
effective products, seek and establish strategic alliances with different
pharmaceutical companies and manufacturers to ensure good distribution channels
for its products.




MIT
promotes its products in many countries including the United States of America.
MIT is exerting every effort and using its resources to promote its products and
to open markets for its technology. As we continue to market our products, we
hope to gain broader acceptance of the needle-free injection
technology.




MIT is
continually researching and developing its products to the market
needs.




Medical
International Technology, Inc. will continue to seek additional funding to
expand operations and develop sales revenue to a volume sufficient to sustain
operations.







-15-









Forward-Looking
Statements




Certain
statements concerning the Company's plans and intentions included herein may
constitute forward-looking statements for purposes of the Securities Litigation
Reform Act of 1995 for which the Company claims a safe harbor under that
Act.There are a
number of factors that may affect the future results of the Company, including,
but not limited to, (a) the ability of the company to obtain additional funding
for operations, (b) the continued availability of management to develop the
business plan, (c) regulatory acceptance of our products in diverse localities
and (d) successful development and market acceptance of the company’s
products.




This
annual report may contain both historical facts and forward-looking
statements.  Any forward-looking statements involve risks and
uncertainties, including, but not limited to, those mentioned
above.  Moreover, future revenue and margin trends cannot be reliably
predicted.







-16-







Medical
International Technology, Inc.




Financial
Statements













PageReport of Independent Registered
      Public Accounting Firm
              18Financial
      StatementsConsolidated Balance
      Sheet
              19 - 20Consolidated Statements of
      Operations
              21Consolidated Statements of
      Comprehensive Loss
              22Consolidated Statement of
      Stockholders’ (Deficit)
              23Consolidated Statements of Cash
      Flows
              24Notes to Consolidated Financial
      Statements
              25 - 34






-17-




Report of
Independent Registered Public Accounting Firm










To The
Board of Directors and Stockholders of


Medical
International Technology, Inc.







We have
audited the accompanying consolidated balance sheet of Medical International
Technology, Inc. and subsidiaries as of September 30, 2007 and 2006, and the
related consolidated statements of operations, comprehensive loss, stockholders’
deficit, and cash flows for the years then ended. These financial statements are
the responsibility of the Company’s management. Our responsibility is to express
an opinion on these financial statements based on our audit. The financial
statements of Medical International Technology, Inc. and subsidiary as of
September 30, 2005, were audited by other auditors whose report dated November
28, 2005, on those statements included an explanatory paragraph describing
conditions that raised substantial doubt about the Company’s ability to continue
as a going concern as discussed in Note 2 to the financial
statements.




We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.




In our
opinion, the 2007 and 2006 consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Medical
International Technology, Inc. and subsidiary as of September 30, 2007 and 2006,
and the results of its operations and its cash flows for the years then ended in
conformity with accounting principles generally accepted in the United States of
America.




The
company is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company’s internal control
over financial reporting. Accordingly, we express no such opinion.









/s/ PS STEPHENSON & CO.,
P.C.







Wharton,
Texas


December
3, 2007 except for Note 2, which is Ocotber 2,
2009


-18-




MEDICAL
INTERNATIONAL TECHNOLOGY
 CONSOLIDATED
BALANCE SHEETS





September
      30,2007
                
                
                2006AssetsCurrent
      assetsCash
      and cash equivalents
                
                $
                187,536
                
                
                $
                2,920Accounts
      receivable
                
                
                6,937
                
                
                
                19,244Inventories
                
                
                194,826
                
                
                
                78,822Research
      credit receivable
                
                
                127,718
                
                
                
                182,630Prepaid
      expenses
                
                
                2,764
                
                
                
                5,368Total
      Current Assets
                
                
                519,781
                
                
                
                288,984Property
      and EquipmentTooling
      and machinery
                
                
                306,684
                
                
                
                272,966Furniture
      and office equipment
                
                
                160,711
                
                
                
                72,153Leasehold
      improvements
                
                
                30,157
                
                
                
                26,841497,552
                
                
                
                371,960Less
      accumulated depreciation
                
                
                (299,832
                )
                
                
                (230,804
                )197,720
                
                
                
                141,156Other
      AssetsPatents
      (net of accumulated amortization of $932 and $466)
                
                
                1,098
                
                
                
                1,564Total
      Assets
                
                $
                718,599
                
                
                $
                431,704
 
 The
accompanying notes are an integral part of these financial
statements.


-19-




MEDICAL
INTERNATIONAL TECHNOLOGY
 CONSOLIDATED
BALANCE SHEETS





September
      30,2007
                
                
                2006Liabilities
      and Stockholder's Equity (Deficit)Current
      LiabilitiesUnearned
      income
                
                $
                7,494
                
                
                $
                57,558Accounts
      payable and accrued expenses
                
                
                298,152
                
                
                
                420,356Loans
      payable – related parties
                
                
                49,696
                
                
                
                221,844Current
      portion of long-term debts
                
                
                283,154
                
                
                
                -638,496
                
                
                
                699,758Long-Term
      Debts
                
                
                14,261
                
                
                
                -Total
      Liabilities
                
                
                652,757
                
                
                
                699,758Stockholder's
      Equity (Deficit)Preferred
      Stock, $.0001 par value; 3,000,000 shares authorized;None
      issued and outstanding shares as of September 30, 2007Common
      Stock, $.0001 par value; 100,000,000 shares authorized;Issued
      and outstanding 27,058,663 shares as of September 30, 2007
                
                
                2,706
                
                
                
                1,086Additional
      paid-in capital
                
                
                6,804,339
                
                
                
                5,786,600Deficit
                
                
                (6,971,531
                )
                
                
                (6,073,155
                )Other
      comprehensive income (loss)
                
                
                230,328
                
                
                
                17,415Total
      Stockholder's Equity (Deficit)
                
                
                65,842
                
                
                
                (268,054
                )Total
      Liabilities and Stockholder's Equity (Deficit)
                
                $
                718,599
                
                
                $
                431,704





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






-20-




MEDICAL
INTERNATIONAL TECHNOLOGY
 CONSOLIDATED
STATEMENTS OF OPERATIONS




For
      the year ended
                September
      30,2007
              
              
              2006
              
              
              2005Sales
              
              $
              338,526
              
              
              $
              270,452
              
              
              $
              354,343Cost of
    sales
              
              
              121,874
              
              
              
              181,599
              
              
              
              320,429Gross
profit
              
              
              216,652
              
              
              
              88,853
              
              
              
              33,914Research and development
      costs
              
              
              134,294
              
              
              
              442,916
              
              
              
              241,284Selling, general, and
      administrative expenses
              
              
              830,363
              
              
              
              1,125,042
              
              
              
              517,146964,657
              
              
              
              1,567,958
              
              
              
              758,430Loss from
      operations
              
              
              (748,005
              )
              
              
              (1,479,105
              )
              
              
              (724,516
              )Other income
      (expense)Impairment charge of
      goodwill
              
              
              (131,382
              )
              
              
              -
              
              
              
              -Interest
    income
              
              
              6,474
              
              
              
              728
              
              
              
              291Interest
      expense
              
              
              (25,463
              )
              
              
              (31,256
              )
              
              
              (47,929
              )Total
      other income (expense)
              
              
              (150,371
              
              
              
              (30,528
              
              
              
              (47,638
              )Net loss
              
              $
              (898,376
              )
              
              $
              (1,509,633
              )
              
              $
              (722,154
              )Basic (Loss) Per
      Share
              
              $
              (0.03
              )
              
              $
              (
      0.14
              )
              
              $
              (0.17
              )Basic weighted average shares
      outstanding
              
              
              27,058,663
              
              
              
              10,867,737
              
              
              
              4,621,762






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






-21-




MEDICAL
INTERNATIONAL TECHNOLOGY
 CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS


For
      the year endedSeptember
      30,2007
                
                
                2006
                
                
                2005Net
      loss
                
                $
                (
      898,376
                )
                
                $
                (
      1,509,633
                )
                
                $
                (
      772,154
                )Other
      comprehensive income (loss)Foreign currency translation adjustment)
                
                
                212,913
                
                
                
                53,128
                
                
                
                49,723Net
      comprehensive loss
                
                $
                (
      685,463
                )
                
                $
                (
      1,456,505
                )
                
                $
                (
      722,431
                )


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






-22-






MEDICAL
INTERNATIONAL TECHNOLOGY
 CONSOLIDATED
STATEMENT OF STOCKHOLDERS' (DEFICIT)







AdditionalCommon
Stock
              
              
              Paid-inShares*
              
              
              Amount
              
              
              Capital
              
              
              DeficitBalance - September 30,
      2004
              
              
              4,583,301
              
              
              $
              458
              
              
              $
              3,825,917
              
              
              $
              (3,791,368
              )Shares issued
      for debts
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Shares issued
      for services
              
              
              161,124
              
              
              
              16
              
              
              
              94,594
              
              
              
              -Net loss for
      the year ended September 30, 2005
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (772,154
              )Balance-September 30,
      2005
              
              
              4,744,425
              
              
              $
              474
              
              
              $
              3,920,512
              
              
              $
              (4,563,522
              )Shares issued
      for debts
              
              
              1,594,800
              
              
              
              160
              
              
              
              445,020
              
              
              
              -Shares issued
      for services
              
              
              54,512
              
              
              
              5
              
              
              
              33,995
              
              
              
              -Shares issued
      for private placement
              
              
              4,224,000
              
              
              
              422
              
              
              
              1,287,098
              
              
              
              -Shares issued
      for option exercise
              
              
              250,000
              
              
              
              25
              
              
              
              99,975
              
              
              
              -Net loss for
      the year ended September 30, 2006
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (1,509,633
              )Balance-September 30,
      2006
              
              
              10,867,737
              
              
              $
              1,086
              
              
              $
              5,786,600
              
              
              $
              (6,073,155
              )Shares issued
      for debts
              
              
              3,920,593
              
              
              
              392
              
              
              
              217,811
              
              
              
              -Shares issued
      for services
              
              
              9,498,333
              
              
              
              951
              
              
              
              560,185
              
              
              
              -Shares issued
      for private placement
              
              
              272,000
              
              
              
              27
              
              
              
              64,993
              
              
              
              -Shares issued
      for acquisition of Scanview
              
              
              2,500,000
              
              
              
              250
              
              
              
              174,750Net loss for
      the year ended September 30, 2007
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              (898,376
              )Balance-September 30,
      2007
              
              
              27,058,663
              
              
              $
              2,706
              
              
              $
              6,804,339
              
              
              $
              (6,971,531
              )






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




-23-




MEDICAL
INTERNATIONAL TECHNOLOGY
 CONSOLIDATED
STATEMENTS OF CASH FLOWS







For
      the year endedSeptember
      30,2007
                  
                  
                  
                  2006
                  
                  2005Cash
      Flows from Operating ActivitiesNet
      Loss
                  
                  
                  $
                  (898,376
                  )
                  
                  
                  $
                  (1,509,633
                  )
                  
                  
                  $
                  (772,154
                  )Adjustments
      to reconcile net loss to net cashprovided by operating activities:Depreciation
      expense
                  
                  
                  
                  46,446
                  
                  
                  
                  
                  40,798
                  
                  
                  
                  
                  41,170Amortization
      expense
                  
                  
                  
                  466
                  
                  
                  
                  
                  233
                  
                  
                  
                  
                  233Common
      stock issued for services
                  
                  
                  
                  561,136
                  
                  
                  
                  
                  578,990
                  
                  
                  
                  
                  94,611Goodwill impairment charge
                  
                  
                  
                  131,382
                  
                  
                  
                  
                  -
                  
                  
                  
                  
                  -(Increase)
      Decrease in AssetsDecrease
      (Increase) in accounts receivable
                  
                  
                  
                  12,307
                  
                  
                  
                  
                  16,050
                  
                  
                  
                  
                  (35,294
                  )(Increase)
      Decrease in research credit receivable
                  
                  
                  
                  103,341
                  
                  
                  
                  
                  12,282
                  
                  
                  
                  
                  (78,948
                  )Decrease
      (Increase) in inventories
                  
                  
                  
                  (48,670
                  )
                  
                  
                  
                  18,601
                  
                  
                  
                  
                  113,154Decrease
      of receivable from taxing authorities
                  
                  
                  
                  -
                  
                  
                  
                  
                  -
                  
                  
                  
                  
                  -Decrease
      (Increase) in prepaid expenses
                  
                  
                  
                  2,604
                  
                  
                  
                  
                  (5,368
                  )
                  
                  
                  
                  -Increase (Decrease) in Liabilities(Decrease)
      Increase in deferred income
                  
                  
                  
                  (50,064
                  )
                  
                  
                  
                  (58,979
                  )
                  
                  
                  
                  38,192Increase in related party payables
                  
                  
                  
                  63,050
                  
                  
                  
                  
                  -
                  
                  
                  
                  
                  -(Decrease)
      Increase in accounts payable and accrued expenses
                  
                  
                  
                  (232,063
                  )
                  
                  
                  
                  (225,764
                  )
                  
                  
                  
                  475,327Net cash used in operating activities
                  
                  
                  
                  (308,441
                  )
                  
                  
                  
                  (1,132,790
                  )
                  
                  
                  
                  (123,709
                  )Equipment acquisition
                  
                  
                  
                  -
                  
                  
                  
                  
                  (21,127
                  )
                  
                  
                  
                  -Tooling and machinery
                  
                  
                  
                  -
                  
                  
                  
                  
                  -
                  
                  
                  
                  
                  -Net cash used in investing activities
                  
                  
                  
                  -
                  
                  
                  
                  
                  (21,127
                  )
                  
                  
                  
                  -Gross proceeds from private offering
                  
                  
                  
                  65,020
                  
                  
                  
                  
                  1,287,098
                  
                  
                  
                  
                  -Advances from related parties
                  
                  
                  
                  -
                  
                  
                  
                  
                  -
                  
                  
                  
                  
                  88,235Reduction in amounts due to related parties
                  
                  
                  
                  (50,054
                  )
                  
                  
                  
                  (139,854
                  )
                  
                  
                  
                  -Issuance of notes payable
                  
                  
                  
                  294,547
                  
                  
                  
                  
                  (16,484
                  )
                  
                  
                  
                  (15,238
                  )Net cash provided by financing activities
                  
                  
                  
                  309,513
                  
                  
                  
                  
                  1,130,760
                  
                  
                  
                  
                  72,997Effect of exchange rates on
    cash
                  
                  
                  
                  183,544
                  
                  
                  
                  
                  20,203
                  
                  
                  
                  
                  49,723Increase (decrease) in cash
                  
                  
                  
                  184,616
                  
                  
                  
                  
                  (2,954
                  )
                  
                  
                  
                  (989
                  )Cash, beginning of period
                  
                  
                  
                  2,920
                  
                  
                  
                  
                  5,874
                  
                  
                  
                  
                  6,863Cash, end of period
                  
                  
                  $
                  187,536
                  
                  
                  
                  $
                  2,920
                  
                  
                  
                  
                  5,874Supplemental disclosure of cash flow
      informationCash Paid
      For:Interest
                  
                  
                  $
                  25,463
                  
                  
                  
                  $
                  31,256
                  
                  
                  
                  $
                  47,929Income
      taxes
                  
                  
                  $
                  -
                  
                  
                  
                  $
                  -
                  
                  
                  
                  $
                  -Supplemental
      disclosure of non-cash transactions
                    Common
      stock issued for debt reductions
                  
                  
                  $
                  218,204
                  
                  $    _
                  
                  
                  
                  
                  $
      -


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




-24-




MEDICAL
INTERNATIONAL TECHNOLOGY


NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS





Note
1 -  Business Activities,Related Risks and Summary of
Significant Accounting Policies





Medical International Technology, Inc.
(the "Company") was incorporated inColoradoon July 19, 1999, under the name,
Posterally.com, Inc. The Company filed an amendment to its articles of
incorporation on September 24, 2002 changing its name to Medical International
Technology, Inc.




The Company is in the business of
developing and manufacturing a needle free device for use in injecting medicine
and supplements for human and animal use.




Summary
of Significant Accounting Policies




Principles
of consolidation




The
accompanying financial statements include the accounts and transactions of
Medical International Technology, Inc. and its wholly owned subsidiaries,
Medical International Technologies (MIT Canada) Inc. and 9139-2449 Quebec Inc.
(dba Scanview), which was acquired by the Company on June 11, 2007 (Note
6).  Accordingly, the accompanying financial statements only include
the results of operations of Scanview since June 11,
2007.  Intercompany transactions and balances have been eliminated in
consolidation.




Foreign
Currency Translations




The
Company operates out of its offices in Montreal, Canadaand maintains its books
and records in Canadian Dollars. The financial statements herein have been
converted into U.S. Dollars. Balance sheet accounts have been translated at
exchange rates in effect at the end of the year.  .  Income
statement accounts have been translated at average exchange rates for the year.
Translation gains and losses are included as a separate component of
stockholders’ equity.
  Allowance
for Doubtful Accounts




The
allowance for doubtful accounts on accounts receivable is charged to income in
amounts sufficient to maintain the allowance for uncollectible accounts at a
level management believes is adequate to cover any probable losses. Management
determines the adequacy of the allowance based on historical write-off
percentages and the current status of accounts receivable. Accounts receivable
are charged off against the allowance when collectability is determined to be
permanently impaired. As of September 30, 2007 and 2006, the Company recorded
$11,397 as a reserve for doubtful accounts.




Inventories




Inventories
consist of raw materials, work in process, and finished
goods.  Inventories of raw materials, work in process and finished
goods are stated at the lower of cost or market.  Cost is determined
using the first-in, first-out (FIFO) method for raw materials.






-25-


MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS


Property and
Equipment
   Intangible assets


Patents are being amortized over their
remaining lives ranging from 8.5 years through 16 years.  Net Loss Per
Share




The
Company adopted the provisions of Statement of Financial Accounting Standards
(“SFAS”) No. 128, “Earnings Per Share” (“EPS”) that established standards for
the computation, presentation and disclosure of earnings per share, replacing
the presentation of Primary EPS with a presentation of Basic EPS.




Issuances Involving Non-cash
Consideration




All
issuances of the Company’s stock for non-cash consideration have been assigned a
dollar amount equaling either the market value of the shares issued or the value
of consideration received whichever is more readily determinable.  Cash
and Cash Equivalents




For
purpose of the statements of cash flows, the Company considers cash and cash
equivalents to include cash on hand, amounts due to banks and any other highly
liquid investments with maturities of three months or less.  Use of
Estimates




The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect certain reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those
estimates.




Long-Lived
Assets




In August
2001, SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets," was issued establishing new rules and clarifying implementation issues
with SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be disposed of, "by allowing a probability-weighted cash
flow estimation approach to measure the impairment loss of a long-lived asset.
The statement also established new standards for accounting for discontinued
operations. Transactions that qualify for reporting in discontinued operations
include the disposal of a component of an entity's operations that comprises
operations and cash flow that can be clearly distinguished, operationally and
for financial reporting purposes, from the rest of the entity. The Company has
adopted this standard and its adoption had no significant effect on the
Company's financial statements.  Income
Taxes




The
Company recognizes income tax expense based on the liability method of
accounting for income taxes.  Deferred tax assets and liabilities are
recognized for the income tax effect of temporary differences between the tax
basis of assets and liabilities and their carrying values for financial
reporting purposes.  Deferred tax expense or benefit is the result of
changes in deferred tax assets and liabilities during the period.  The
Company has recorded a valuation allowance, which reflects the estimated amount
of deferred tax assets that more likely than not will be realized.






-26-


MEDICAL
INTERNATIONAL TECHNOLOGY


NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS




Fair Value of Financial
Instruments




Pursuant
to SFAS No. 107, “Disclosures about Fair Value of Financial Instruments”, the
Company is required to estimate the fair value of all financial instruments
included on its balance sheet as of September 30, 2007.  The Company
considers the carrying value of such amounts in the financial statements to
approximate their fair value.  Revenue
Recognition




The
Company recognizes revenue when the related product is shipped to the respective
customer provided that: title and risk of loss have passed to the customer;
persuasive evidence of an arrangement exists; the sales price is fixed or
determinable; and collectability is deemed probable.




Research
and Development




Research
and development expenditures are charged to operations as incurred.




Goodwill
and Purchased Intangible Assets




Goodwill
is tested for impairment on an annual basis and between annual tests in certain
circumstances, and is written down when impaired in accordance with SFAS
No. 142, “Goodwill and Other Intangible Assets.” For goodwill, the Company
performs a two-step impairment test. In the first step, the Company compares the
fair value of the reporting unit to the carrying value, including goodwill. The
Company determines the fair value of the reporting unit based on a weighting of
income and market approaches. If the fair value of the reporting unit exceeds
the carrying value of the net assets assigned to that unit, goodwill is not
impaired and no further testing is performed. If the carrying value of the net
assets assigned to the reporting unit exceeds the fair value of the reporting
unit, then the Company performs the second step of the impairment test in order
to determine the implied fair value of the reporting unit’s goodwill. If the
carrying value of a reporting unit’s goodwill exceeds its implied fair value,
the Company records an impairment loss equal to the difference.




Based on
the impairment tests performed, the Company recorded impairment charges for
goodwill of $131,382 in fiscal 2007, related to the purchase of Scanview (Note
6). Purchased intangible assets other than goodwill are amortized over their
useful lives.  New Accounting
Pronouncements




In
September 2006, the FASB issued SFAS No. 157, “Fair Value
Measurements” (SFAS No. 157) which establishes a framework for measuring
fair value and enhance disclosures about fair value measurements. SFAS 157
is effective for fiscal years beginning after November 15, 2007. The
measurement and disclosure requirements are effective for the Company beginning
in the first quarter of fiscal 2009. The Company is currently evaluating whether
SFAS No. 157 will result in a change to its fair value
measurements.




In
February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
Financial Assets and Financial Liabilities” (SFAS No. 159) which permits
companies to choose to measure certain financial instruments and certain other
items at fair value. The standard requires that unrealized gains and losses on
items for which the fair value option has been elected be reported in earnings.
SFAS 159 is effective for the Company beginning in the first quarter of fiscal
2009, although earlier adoption is permitted. The Company is currently
evaluating the impact SFAS No. 159 will have on its consolidated financial
statements.




In
December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”.
This Statement replaces SFAS No. 141, Business Combinations.






-27-


MEDICAL
INTERNATIONAL TECHNOLOGY


NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS








This
Statement retains the fundamental requirements in Statement 141 that the
acquisition method of accounting (which Statement 141 called the purchase method) be used for
all business combinations and for an acquirer to be identified for each business
combination. This Statement also establishes principles and requirements for how
the acquirer: a) recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, and any noncontrolling
interest in the acquiree; b) recognizes and measures the goodwill acquired in
the business combination or a gain from a bargain purchase and c) determines
what information to disclose to enable users of the financial statements to
evaluate the nature and financial effects of the business combination. SFAS
No. 141(R) will apply prospectively to business combinations for which the
acquisition date is on or after Company’s fiscal year beginning October 1,
2009.




In
December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements”. This Statement amends ARB 51 to establish
accounting and reporting standards for the noncontrolling (minority) interest in
a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a
noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated
financial statements. The Company has not yet determined the impact, if any,
that SFAS No. 160 will have on its consolidated financial statements. SFAS
No. 160 is effective for the Company’s fiscal year beginning
October 1, 2009




Note
2 – Restatement





On
October 2, 2009, the officers of Medical International Technology, Inc. (the
“Company”) concluded that the financial statements included in our Annual Report
on Form 10-K for the years ended September 30, 2008 and 2007, and the Quarterly
Reports for the periods ended December 31, 2008, March 31, 2009 and June 30,
2009, should be restated to correct a foreign currency translation
error.  At each respective balance sheet date, property and equipment,
including accumulated depreciation, was translated using historical exchange
rates at the date of purchase rather than the current exchange rate at each
balance sheet date, as required by SFAS No. 52.  The correction of the
translation error had no effect on net income (loss) or cash flows as previously
reported in any period.  The effect of the restatement on specific
items in the balance sheet is as follows:





September
      30, 2007As
      Previously
              
              
              
              
              
              AsReported
              
              
              Adjustments
              
              
              RestatedProperty
      and equipmentTooling
      and machinery
              
              $
              225,175
              
              
              $
              81,509
              
              
              $
              306,684Furniture
      and office equipment
              
              
              133,014
              
              
              
              27,697
              
              
              
              160,711Leasehold
      improvements
              
              
              22,163
              
              
              
              7,994
              
              
              
              30,157Total
      property and equipment
              
              
              380,352
              
              
              
              117,200
              
              
              
              497,552Less
      accumulated depreciation
              
              
              (245,536
              )
              
              
              (54,296
              )
              
              
              (299,832
              )Total
      property and equipment, net
              
              $
              134,816
              
              
              $
              62,904
              
              
              $
              197,720Stockholders'
      Equity (Deficit)Other
      comprehensive income (loss)
              
              $
              167,424
              
              
              $
              62,904
              
              
              $
              230,328Total
      stockholders' equity (deficit)
              
              $
              2,938
              
              
              $
              62,904
              
              
              $
              65,842September
      30, 2006As
      Previously
              
              
              
              
              
              
              AsReported
              
              
              Adjustments
              
              
              RestatedProperty
      and equipmentTooling
      and machinery
              
              $
              225,175
              
              
              $
              47,791
              
              
              $
              272,966Furniture
      and office equipment
              
              
              59,372
              
              
              
              12,781
              
              
              
              72,153Leasehold
      improvements
              
              
              22,163
              
              
              
              4,678
              
              
              
              26,841Total
      property and equipment
              
              
              306,710
              
              
              
              65,250
              
              
              
              371,960Less
      accumulated depreciation
              
              
              (199,090
              )
              
              
              (31,714
              )
              
              
              (230,804
              )Total
      property and equipment, net
              
              $
              107,620
              
              
              $
              33,536
              
              
              $
              141,156Stockholders'
      Equity (Deficit)Other
      comprehensive income (loss)
              
              $
              (16,121
              )
              
              $
              33,536
              
              
              $
              17,415Total
      stockholders' equity (deficit)
              
              $
              (301,590
              )
              
              $
              33,536
              
              
              $
              (268,054
              )
 -28-
 
 
 In
addition, the Company restated its Statement of Cash Flows for the year ended
September 30, 2007 to properly present and disclose certain non-cash
transactions that were previously included as cash
transactions.  Specifically, the company originally reported common
stock issued for debt reductions aggregating $218, 204 as an operating
activity.  The restated cash flow statement reflects those stock
issuances for debt reductions as a non-cash transaction.  There was no
effect on the net increase in cash for the year ended September 30, 2007 as a
result of these corrections.
  Note
3 – Inventories
  Inventories at
September 30, 2007 and 2006 consist of the following:
  2007
                    
                    
                    2006Raw
    materials
                    
                    $
                    159,698
                    
                    
                    $
                    46,449Work in
    process
                    
                    
                    21,752
                    
                    
                    
                    20,243Finished
    goods
                    
                    
                    13,376
                    
                    
                    
                    12,130Total
                    
                    $
                    194,826
                    
                    
                    $
                    78,822
  Note
4 – Research Credit Receivable
  Research
and development costs are charged to operations when incurred. For its research
efforts in Canada, the Company receives a cash payment from the Canadian
Government based upon the amount actually incurred. The Company nets the credit
against related costs charged to operations. Research and development expenses
are as follows:
 
 2007
                    
                    
                    2006R&D
    Costs
                    
                    $
                    163,712
                    
                    
                    $
                    505,806Less Credit
                    
                    
                    (29,418
                    )
                    
                    
                    (62,890
                    )$
                    134,294
                    
                    
                    $
                    442,916
   -29-
 MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
   Note
5 – Intangible Assets
  As of
September 30, 2007 the Company has net intangible assets totaling $1,098.
Amortization expenses for the year ended September 30, 2007 and 2006 were $466
and $466, respectively. Intangible
assets consist of the following:
  WeightedGross
                    
                    
                    
                    
                    
                    Net
                    
                    AverageIntangible
                    
                    
                    Accumulated
                    
                    
                    Intangible
                    
                    LifeAssets
                    
                    
                    Amortization
                    
                    
                    Assets
                    
                    (Years)Patents
                    
                    $
                    2,030
                    
                    
                    $
                    932
                    
                    
                    $
                    1,098
                    
                    8.5 through
    16
 Note
6 – Scanview Acquisition
  On June
11, 2007, the Company completed the acquisition of all the issued and
outstanding shares of 9139-2449 Quebec Inc. (dba Scanview), a related party, for
2,500,000 common shares of the Company.   ScanView was a private
Canadian company owned 55% by the Company’s CEO, 10% by the Company’s CFO and
three other unrelated shareholders.  ScanView has a unique, portable
and battery operated ultrasound diagnostic medical devices, using a variety of
probes for pathological and physiological evaluation of organs such as the
heart, kidneys, liver, thyroid, uterus and ovaries. They serve equally well to
detect kidney stones, diagnose pregnancy, visualize follicle development and
carry out all other normal ultrasound diagnostic procedures.
  The
Company valued the common share issued at 0.07 per share or $175,000, which
represented the adjusted average closing share price for the week prior and week
after the closing date.  The fair value of the assets acquired by the
Company was approximately $321,603, consisting of cash of $819, tax credits
receivable of $48,429, inventory of $67,334, equipment of $73,639 and goodwill
of $131,382, and the Company assumed approximately $146,603 in liabilities,
consisting of 2 notes payable agreements to a bank aggregating $52,564 (Note 12)
and trade accounts payable and other accrued expenses aggregating
$94,039.
   During
the fourth quarter of 2007, the Company determined, based on impairment testing
performed, that the recorded amount of goodwill of $131,382 from the Scanview
purchase was impaired.  Accordingly, the Company charged off $131,382
as impairment charges of goodwill.
  Note
7 – Related Party Transactions
  The
Company has borrowed from shareholders and corporations owned by shareholders.
These loans are non-interest bearing and due upon demand. In addition, the
Company has advanced funds to other corporations owned by shareholders. These
loans are also non-interest bearing and due upon demand.
  Note 8 -Income Taxes
 The
company has operating losses of $7,122,729, which can be used to reduce future
taxable income. The potential tax benefits relating to the losses have not been
recognized in the company’s accounts. The deductibility of these losses expires
between 2009 and 2012.
   
 -30-
 MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
  Note 9 -Stockholders' Equity
(Deficit)
  Issuance of Common
Stock
  For the
year ended September 30, 2006, the Company issued 54,512 shares of its common
stock for consulting and legal services. The value assigned to these shares
totaled $33,995 the market value of the services rendered, which were charged to
operations.
  On
November 30, 2005, the Company issued 520,000 post-reverse split restricted
common shares at a price of $0.25 per share to Idée International R & D
Inc., a company owned 100% by 2849674 Canada Inc. for a debt conversion of
$130,000.
  On
November 30, 2005, the Company issued 320,000 post-reverse split restricted
common shares at a price of $0.25 per share to 2849674 Canada Inc., a company
owned 100% by Karim Menassa for debt conversion of $80,000.
  On
November 30, 2005, the Company issued 200,000 post-reverse split restricted
common shares at a price of $0.25 per share to 1065029 Canada Inc., a company
owned 100% by Michel Bayouk for a debt conversion of $50,000.
  On
November 30, 2005, the Company issued 128,000 post-reverse split restricted
common shares at a price of $0.25 per share to Karim Menassa, a Director and
Officer of the Company for a debt conversion of $32,000.
  On
November 30, 2005, the Company issued 68,000 post-reverse split restricted
common shares at a price of $0.25 per share to 9160-4132 Quebec Inc., a company
owned as to 100% by Michel Bayouk a Director and Officer of the Company for
settlement of debt totaling $17,000.00.
  On
November 30, 2005, the Company issued 52,000 post-reverse split restricted
common shares at a price of $ 0.25 per share to Technopro M.S. (2999226 Canada
Inc.) for a debt conversion of $13,000.
  On
December 7, 2005, the Company completed two rounds of financing. The Units in
these offerings were sold in exempt transactions under, Regulation “S” of the
Securities Act of 1933 and are subject to Rule 144 of the Securities Act of
1933, as amended. The securities are restricted pursuant to Rule
144.
  The first
private placement consisted of 2,000,000 Units at a price of $0.25 per unit.
Each unit consisted of one Series A Warrant for the purchase of 2,000,000 shares
of the Company’s common stock at an exercise price of $0.75 per share and one
Series B Warrant for the purchase of 2,000,000 shares of the Company’s common
stock at an exercise price of $1.00 per share. Both the series A and series B
warrants expire on October 27, 2007. The total amount raised from this placement
was $500,000 of which the company was obligated to pay an 8% finder fee to Group
InterCapital, Inc., a consulting firm. Net proceeds to the company less the
$40,000 finder fee were $460,000.The purchaser of this offering was a Canadian
entity controlled by a daughter of the individual controlling the consulting
firm.
  The
second private placement was for 1,224,000 Units at a price of $0.25 per Unit.
Each unit of this second offering consisted of one Series A Warrant for the
purchase of 1,224,000 shares of the Company’s common stock at an exercise price
of $0.75 per share and one Series B Warrant for the purchase of 1,224,000 shares
of the Company’s common stock at an exercise price of $1.00 per share. Both the
series a and series B warrants expire on November 07, 2007. The total amount
raised from this placement was $306,000 of which the company is obligated to pay
an 8% finder fee to Group InterCapital, Inc., a consulting firm. Net proceeds to
the company less the $24,480 finder fee were $281,520.
  On
December 20, 2005, the company sold in a private placement 1,000,000 Units at a
price of $0.60 per Unit.  Each unit sold in this offering includes one
(1) Series A Warrant for a total of 1,000,000 shares of the Company's common
stock at an exercise price of $0.75 per share the series A warrant expires on
December 19, 2007.  The total amount raised from this placement was
$600,000 of which the company is obligated to pay a 9% finder fee to 9109-7923
Quebec Inc. Net proceeds to the company less the $54,000 finder fee were
$546,000.
  On
February 27, 2006, the company issued 153,400 shares to 2849674 Canada Inc., a
company owned as to 100% by Karim Menassa, a director and officer, for a debt
conversion of $61,300.
  Additionally,
on February 27, 2006, the company issued 153,400 shares to 1065029 Canada Inc.,
a company owned as to 100% by Michel Bayouk, a director, for a debt conversion
of $61,300.
  
 -31-
 MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
  For the
year ended September 30, 2007, the Company issued an aggregate of 16,192,546
shares of its common stock for acquisition, consulting and legal services, debts
and private placements. The value assigned to these shares at the market value,
aggregated $1,170,558 and is more fully described below.
  For the
1st quarter ended December 31, 2006, the Company issued 779,400 shares of its
common stock for consulting and legal services. The value assigned to these
shares totaled $163,596 the market value of the services rendered, which were
charged to operations.
  For the
second quarter ended March 31, 2007, the Company issued 63,750 shares of its
common stock for consulting and legal services. The value assigned to these
shares totaled $10,200 the market value of the services rendered, which were
charged to operations.
  For the
third quarter ended June 30, 2007, the Company issued 3,721,310 shares of its
common stock for consulting and legal services. The value assigned to these
shares totaled $195,705 the market value of the services rendered, which were
charged to operations.
  For the
fourth quarter ended September 30, 2007, the Company issued 4,954,368 shares of
its common stock for consulting and legal services. The value assigned to these
shares totaled $267,488 the market value of the services rendered, which were
charged to operations.
  For the
1st quarter ended December 31, 2006, the Company issued 72,000 shares of its
common stock for private placements. The value assigned to these shares totaled
$14,993.
  For the
second quarter ended March 31, 2007, the Company issued 200,000 shares of its
common stock for private placements. The value assigned to these shares totaled
$200,000.
  For the
third quarter ended June 30, 2007, the Company issued 2,500,000 shares of its
common stock for acquisition of SCANVIEW. The value assigned to these shares
totaled $175,000.
 
 For the
fourth quarter ended September 30, 2007, the Company issued 3,920,985 shares of
its common stock for debts. The value assigned to these shares totaled
$293,490.
  Preferred
Stock
  As of
September 30, 2007, there was no preferred stock outstanding. Dividend features
and voting rights are at the discretion of the Board of Directors without the
requirement of shareholder approval.
  Outstanding
Options
  Effective
October 1, 2006 the company entered into a Consulting services Agreement with
Geoffrey Armstrong engaging him as an administrative manager for the company. As
part of the agreed compensation Mr. Armstrong was granted 750,000 options to
purchase Common shares at a price of $0.40 per share. These options expire on
October 3, 2007.
  The
company filed a Form S-8 on December 27, 2005 for 750,000 options underlying a
consulting agreement with Geoffrey Armstrong. Mr. Armstrong exercised 50,000
options in the three-month period ending March 31, 2006 and 200,000 options on
April 21, 2006. No other options have been exercised through the twelve-month
period ended September 30, 2006 and 500,000 options remain outstanding until
October 3, 2007.
   -32-
 MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
   Outstanding
Warrants
  On
December 7, 2005, the Company completed two rounds of financing.
  The first
private placement consisted of 2,000,000 Units at a price of $0.25 per unit.
Each unit consisted of one Series A Warrant for the purchase of 2,000,000 shares
of the Company’s common stock at an exercise price of $0.75 per share and one
Series B Warrant for the purchase of 2,000,000 shares of the Company’s common
stock at an exercise price of $1.00 per share. Both the series A and series B
warrants expire on October 27, 2007. The total amount raised from this placement
was $500,000 of which the company was obligated to pay an 8% finder fee to a
consulting firm. Net proceeds to the company less the $40,000 finder fee were
$460,000. The purchaser of this offering was a Canadian entity controlled by a
daughter of the individual controlling the consulting firm.
  The
second private placement was for 1,224,000 Units at a price of $0.25 per Unit.
Each unit of this second offering consisted of one Series A Warrant for the
purchase of 1,224,000 shares of the Company’s common stock at an exercise Price
of $0.75 per share and one Series B Warrant for the purchase of 1,224,000 shares
of the Company’s common stock at an exercise price of $1.00 per share. Both the
series A and series B warrants expire on November 07, 2007. The total amount
raised from this placement was $306,000 of which the company is obligated to pay
an 8% finder fee to a consultant. Net proceeds to the company less the $24,480
finder fee were $281,520.
  On
December 20, 2005, the company sold in a private placement 1,000,000 Units at a
price of $0.60 per Unit.  Each unit sold in this offering includes one
(1) Series A Warrant for a total of 1,000,000 shares of the Company's common
stock at an exercise price of $0.75 per share the series A warrant expires on
December 19, 2007.  The total amount raised from this placement was
$600,000 of which the company was obligated to pay a 9% finder fee to 9109-7923
Quebec Inc. Net proceeds to the company less the $54,000 finder fee were
$546,000.
  Series A
- Exercise price of $0.75 for one (1) Common share
  2,000,000 expiring October 27,
2007
 1,224,000 expiring November 27,
2007
 1,000,000 expiring December 19,
2007
  Total Outstanding as of September
30, 2007 was 4,224,000
  Series B
- Exercise price of $1.00 for one (1) Common share
  2,000,000 expiring October 27,
2007
 1,224,000 expiring November 27,
2007
  Total Outstanding as of September
30, 2007 was 3,224,000
  Note
10 - Operating Leases
  The
Company leases its office and warehouse space under an operating lease that
expires on December 31, 2009. Rent expense for the year ended September 30, 2007
is $29,525.
  Future
minimum lease commitments pertaining to the lease expire as follow:
  September 30, 2008
                    
                    
                    29,525September 30, 2009
                    
                    
                    29,525September 30,
      2010
                    
                    
                    7,380$
                    66,430
   -33-
 MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
 
  Note
11 – Customer Deposit
  Customer
Deposit is amounts received in advance at the time an order is placed. The
payments have been recorded as a liability and will be credited to operations as
the order is shipped.
  Note
12 – Notes Payable
  Long-term
debt consists of the following at September 30, 2007 and 2006:
  2007
                    
                    
                    2006Note payable to a bank, bearing
      interest at prime plus 2.5%secured by
      equipment, due July 21, 2010.
                    
                    $
                    22,040
                    
                    
                    $
                    -Note payable to a bank, bearing
      interest at prime plus 3%secured by
      equipment, due August 28, 2008
                    
                    
                    25,375
                    
                    
                    
                    -Note payable to an individual,
      unsecured and due on demand
                    
                    
                    250,000
                    
                    
                    
                    -$
                    297,415
                    
                    
                    $
                    -Current portion of long-term
      debt
                    
                    
                    283,154
                    
                    
                    
                    -Long-term
    debt
                    
                    $
                    14,261
                    
                    
                    $
                    -
 Scheduled
maturities of long-term debt are as follows:
 September 30, 2008
                      
                      
                      283,154September 30, 2009
                      
                      
                      7,779September 30,
      2010
                      
                      
                      6,482
 Note 13 – Contingencies
  The
company is engaged in the following Legal Proceedings:
  (a)
Farimétal Inc. vs. MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC., court
file 500-22-109826-050, for unpaid account to the amount of $13 029.41CDN.
Furthermore, the company INTERNATIONAL MEDICAL TECHNOLOGIES (MIT CANADA) INC.
made a counterclaim of $16 875.00 US against the plaintiff. By virtue of a
judgment, July 31st, 2006, by the Court of Quebec, the company was condemned to
pay the sum of $13 029.41 CDN and the legal interest on this sum. The company
concluded an agreement of refund with the other party, and it, after discussion
with the lawyer of Farimetal Inc. against Medical International Technologies
(MIT Canada) Inc. A judgment was entered against the issuer on the 31st of
July 2006, for Cad$ 16,589.20. The parties have agreed to payments of an initial
payment of Cad$ 2,132.27 and eight monthly payments of Cad$ 1,807.12 As of
September 30, 2006 the remaining balance on this judgment was $
16,589.20.
   -34-
 MEDICAL
INTERNATIONAL TECHNOLOGY
 NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
  (b)
Outils Diacarb Inc. vs. MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC.,
court file 500-22-107217-054, for unpaid account to the amount of $17 438.99CDN.
Furthermore, the company INTERNATIONAL MEDICAL TECHNOLOGIES (MIT CANADA) INC.
made a counterclaim of 16, 875.00 US against the plaintiff. This action was
settled by mutual agreement of the parties on August 31, 2006. The settlement
was satisfied on September 7, 2006 for a single payment of Cad$
12,000.
  (c)
COMMISSION DES NORMES DU TRAVAIL vs. 9139-2449 QUEBEC INC. and MEDICAL
INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC., court file 500-22-127766-064, for
unpaid social advantages to the amount of $29 904.00 CDN. The plaintiff who is
represented by the COMMISSION DES NORMES DU TRAVAIL worked for 9139-2449 QUEBEC
INC. The cause of action arises from a person requesting this amount who was
working as a self-employed consultant to 9139-2449 Quebec Inc (Scan
View).
  (d)
MCMILLAN BINCH MENDELSOHN vs. IDÉE INTERNATIONALE R & D, INC. and 3567940
CANADA INC. and 2849674 CANADA INC. and MEDICAL INTERNATIONAL TECHNOLOGIES (MIT
CANADA) INC., court file 500-22-117377-054, for unpaid account to the amount of
26, 392.00 CDN. The plaintiff was the legal firm where worked a legal adviser
who was a shareholder of MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC..
On March 26th, 2007 the parties agreed on agreement out of court for an $8
000.00 total sum. The claim related to consultant services of a former attorney
participating on an advisory board. The issuer believes that the law firm was
compensate for all outstanding services and is defending the
claims.
  (e) Alain
Deslauriers vs. 9139-2449 QUÉBEC INC. and MEDICAL INTERNATIONAL TECHNOLOGIES
(MIT CANADA) INC. and Karim Ménassa, court file 500-22-126153-066, for unpaid
accounts to the amount of $52 558.00 CDN. The plaintiff, Alain Deslauriers, was
the General Manager of 9139-2449 QUEBEC INC. before he gave his dismissal. The
company and Karim Ménassa believe they should not be involved in this dispute
because the plaintiff is a shareholder of the company and the dispute is
partially about a perceived personal contribution for the proper functioning of
the company, it is believed the cause should be rejected by the
court.
  (f) Ratha
Yip vs. MEDICAL INTERNATIONAL TECHNOLOGIES (MIT CANADA) INC. and Karim Ménassa,
small claim court file 500-32-104717-071, for unpaid accounts to the amount of
$7 000.00 CDN. The plaintiff, Ratha Yip, was the designer for the products of
the company. The company believes it should not be involved in this dispute
because that the plaintiff did not execute the services for which he was
engaged, the court should reject the cause.
  Note
14 – Subsequent Event
  On
November 1st,
2007, the Company received a Non-Refundable deposit of $1,300,000 for the
worldwide rights to market and sells all Medical International Technology Inc.’s
present and future Needle-Free Jet-Injectors for the human and animal markets.
This deposit is part of an agreement under negotiation, and will be disclosed
when finalized, which the Company expects to occur in fiscal 2008.
  Note 15 – Going Concern  and
Management’s Plans
  -35-
 
  Changes
In / Disagreements with Accountants on Accounting/Financial
Disclosure
  None.
  Controls
and Procedures
  Under the
supervision and with the participation of our management, including our
principal executive officer and principal financial officer, we conducted an
evaluation of our disclosure controls and procedures; as such term is defined
under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). Based on this evaluation, our principal
executive officer and our principal financial officer concluded that our
disclosure controls and procedures were effective as of the end of the period
covered by this report. There were no changes in our internal control over
financial reporting during the period covered by this report that have
materially affected, or are reasonably likely to materially affect, our internal
controls over financial reporting.
  Other
Information
  None
  Directors,
Executive Officers, Promoters and Control Persons
  The
directors and officers are as follows:
  NAME
                    POSITION
(S)
                    TENUREKarim
    Menassa
                    Chairman, President,
      Director
                    June 27, 2002 to
      presentMichel
    Bayouk
                    Secretary,
      Director
                    June 27, 2002 to
      present
  Mr. Karim Menassa, age
56,serves as the
President of Medical International Technology, Inc. Mr. Menassa also serves as a
member of the Board of Directors of Medical International Technology, Inc. Mr.
Menassa has developed many state-of-the-art, efficient and reliable devices, and
has marketed various medical devices in more than 60 countries. Mr. Menassa
obtained a degree in Precision Mechanics Design from the Instituto Salesiano Don
Bosco in
 Cairo,
Egypt.
  Mr. Michel Bayouk, age 61,
serves as the Secretary of Medical International Technology, Inc. Mr. Bayouk
also serves as a member of the Board of Directors of Medical International
Technology, Inc. Mr. Bayouk is a Chartered Accountant and has been involved in
financial auditing since 1970.
   -36-
  
 The
directors shall be elected at an annual meeting of the stockholders and except
as otherwise provided within the Bylaws of Medical International Technology,
Inc., as pertaining to vacancies, shall hold office until his successor is
elected and qualified.
  Although
Medical International Technology, Inc. does not have a separate Audit Committee
and these functions are performed by the entire board, the board of directors of
Medical International Technology, Inc. has determined that for the purpose of
and pursuant to the instructions of item 401(e) of regulation S-B titled Audit
Committee Financial Expert, Mr. Michel Bayouk possesses the attributes of an
Audit committee financial expert. Mr. Bayouk is a board member of Medical
International Technology, Inc. Mr. Bayouk is not independent as defined by item
401(e) (ii) of regulation S-B. He receives compensation for services rendered to
Medical International Technology, Inc. directly or through services rendered by
related companies owned or controlled by him.
  No
non-compete or non-disclosure agreements exist between the management of Medical
International Technology, Inc. and any prior or current employer.
  The
directors of Medical International Technology, Inc. are aware of no petitions or
receivership actions having been filed or court appointed as to the business
activities, officers, directors, or key personnel of Medical International
Technology, Inc.
  Section
16(a) Beneficial Ownership Reporting Compliance
  Section
16(a) of the Securities Exchange Act of 1934 requires the company’s directors
and officers, and persons who own more than ten-percent (10%) of the company’s
common stock, to file with the Securities and Exchange Commission reports of
ownership on Form 3 and reports of change in ownership on Forms 4 and 5. Such
officers, directors and ten-percent stockholders are also required to furnish
the company with copies of all Section 16(a) reports they file. Based solely on
its review of the copies of such forms received by the company and on written
representations from certain reporting persons, the company believes that all
Section 16(a) reports applicable to its officers, directors and ten-percent
stockholders with respect to the fiscal year ended September 30, 2006 were
filed.
  Code
of Ethics
  We have
adopted a code of ethics that applies to our principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions.  The code of ethics is designed
to deter wrongdoing and to promote:
  ·
                  Honest
      and ethical conduct, including the ethical handling of actual or apparent
      conflicts of interest between personal and professional
      relationships;
  ·
                  Full,
      fair, accurate, timely, and understandable disclosure in reports and
      documents that we file with, or submit to, the SEC and in other public
      communications made by MIT;
  ·
                  Compliance
      with applicable governmental laws, rules and
  regulations;
  ·
                  The
      prompt internal reporting of violations of the code to an appropriate
      person or persons identified in the code;
and
  ·
                  Accountability
      for adherence to the code.
   -37-
   
    We will
provide to any person without charge, upon request, a copy of our code of
ethics.  Any such request should be directed to our corporate
secretary at 1872 Beaulac, Ville Saint Laurent, Montreal, Quebec, Canada HR4
2E9, telephone (514) 339-9355.
  Executive
Compensation
 
 Board of Director Meetings
and Committees
  The Board
of Directors held no meetings during the year ended September 30, 2007, but
conducted board activities through unanimous consent board resolutions in lieu
of meetings.
  Compensation
Summary
  SUMMARY
COMPENSATION TABLE
  Annual Compensation
                    Award(s)
                    PayoutsRestricted
                    SecuritiesOther
      Annual
                    Stock
                    Underlying
                    LTIP
                    All
      OtherSalary
                    Bonus
                    Compensation
                    Award(s)
                    Options/SARs
                    Payouts
                    CompensationPosition
                    Year
                    $
                    $
                    $
                    $
                    (#)
                    $
                    $Karim
    Menassa
                    2007
                    0
                    0
                    106,338
                    0
                    0
                    0
                    0President and
      Director2006
                    0
                    0
                    49,538
                    0
                    0
                    0
                    0Michel
    Bayouk
                    2007
                    0
                    0
                    0
                    0
                    0
                    0
                    0Secretary and
      Director2006
                    0
                    0
                    0
                    0
                    0
                    0
                    0
  Notes:
  1.
                  The
      Company issued 30,000 shares of common stock to Karim Menassa for services
      rendered during fiscal year 2005; the value of the common stock shares was
      $18,000.
  2.
                  The
      Company issued 30,000 shares of common stock to Michel Bayouk for services
      rendered during fiscal year 2005; the value of the common stock shares was
      $18,000.
  3.
                  The
      Company issued 320,000 shares of common stock at a value of $80,000; to
      2849674 Canada, Inc. for services rendered during fiscal year 2004;
      2849674 Canada, Inc. is 100% owned by Karim
  Menassa.
  4.
                  The
      Company issued 520,000 shares of common stock at a value of $130,000; to
      Idee R&D International, Inc. for services rendered during fiscal year
      2005; Idee R&D International, Inc. is 100% owned by Karim
      Menassa.
  5.
                  The
      Company issued 68,000 shares of common stock at a value of $17,000 to
      9160-4132 Quebec, Inc. for services rendered during fiscal year 2005.
      9160-4132 Quebec, Inc. is a company 50% owned by Michel
      Bayouk.
  6.
                  The
      Company issued 200,000 shares of common stock at a value of $50,000 to
      1065029 Canada Inc. for services rendered during fiscal year 2005. 1065029
      Canada Inc. is a company in which Michel Bayouk has an
      interest.
  7.
                    On
      February 27, 2006, the company issued 153,400 shares to 2849674 Canada
      Inc., a company owned as to 100% by Karim Menassa, a director and officer,
      for a debt conversion of $61,300.
 8.
                  Additionally,
      on February 27, 2006, the company issued 153,400 shares to 1065029 Canada
      Inc., a company owned as to 100% by Michel Bayouk, a director, for a debt
      conversion of $61,300.
  9.
                  On
      April 27, 2007 the Company issued 761,904 restricted common shares at a
      price of $0.0525 per share to Idee International R & D Inc., a company
      owned 100% by 2849674 Canada Inc. for a debt conversion of $40,000. Karim
      Menassa, our President and Director control the entity 2849674 Canada
      Inc.
   -38-
 
  10.
                  On
      April 27, 2007 the Company issued 1,523,809 restricted common shares at a
      price of $0.0525 per share to 2849674 Canada Inc. for a debt conversion of
      $40,000. Karim Menassa, our President and Director control the entity
      2849674 Canada Inc.
  11.
                  On
      April 27, 2007 the Company issued 1,391,047 restricted common shares at a
      price of $0.0525 per share to 9117-2221 Quebec Inc., for a debt conversion
      of $32,000. Michel Bayouk, our Financial Officer and Director control the
      entity 9117-2221 Quebec Inc.
  12.
                  On
      June 11 2007, the Board of Director of MIT signed an agreement with
      9162-9725 Quebec Inc a Quebec private company, to purchase all of the
      issued and outstanding shares of 9139-2449 Quebec Inc. (SCNAVIEW) common
      stock, for a total of 2,500,000 Common shares of MIT. Following the
      signing of the agreement MIT issued to 9162-9725 Quebec Inc. a total of
      2,500,000 Common shares of MIT.
  13.
                  ScanView
      was a private Canadian company owned by Karim Menassa, our CEO and
      Director, owning 55% of Scanview, Michel Bayouk, our CFO and Director,
      owning 10% of Scanview and three other unrelated shareholders. On July 17,
      2007 the Company issued 3,416,667 restricted common shares at a price of
      $0.06 per share to Idee International R & D Inc., a company owned 100%
      by 2849674 Canada Inc. for a debt conversion of $205,000. Karim Menassa,
      our President and Director control the entity 2849674 Canada
      Inc.
  14.
                  On
      July 17, 2007 the Company issued 1,733,333 restricted common shares at a
      price of $0.06 per share to 2849674 Canada Inc. for a debt conversion of
      $104,000. Karim Menassa, our President and Director control the entity
      2849674 Canada Inc.
  15.
                  On
      August 20, 2007 the Company issued 841,750 restricted common shares at a
      price of $0.03 per share to Maurice Menassa for services rendered of US$
      25,252.50.
  16.
                  On
      August 24, 2007 the Company issued 1,747,684 restricted common shares at a
      price of $ 0.0262 per share to 2849674 Canada Inc. for services rendered
      of US$ 45,789.33. Karim Menassa, our President and Director control the
      entity 2849674 Canada Inc.
  17.
                  On
      August 24, 2007 the Company issued 503,926 restricted common shares at a
      price of $ 0.0262 per share to IDEE INT’L R&D Inc. for a debt
      conversion of US$ 13,202.88. Karim Menassa, our President and Director
      control the entity 2849674 Canada
Inc.
  18.
                  On
      August 24, 2007 the Company issued 631,106 restricted common shares at a
      price of $ 0.0262 per share to 2849674 Canada Inc. for services rendered
      of US$ 16,535.00. Karim Menassa, our President and Director control the
      entity 2849674 Canada Inc.
  As of
September 30, 2007, the Company had no group life; health, hospitalization,
medical reimbursement or relocation plans in effect. Further, we had no pension
plans or plans or agreements which provide compensation on the event of
termination of employment or change in control of us.
  We do not
pay members of our Board of Directors any fees for attendance or similar
remuneration or reimburse them for any out-of-pocket expenses incurred by them
in connection with our business.
  Compensation of
Directors
  There was
no compensation paid to any directors of Medical International Technology, Inc.
as director’s fees.
  Employment
Agreements
  No formal
employment agreements exist with any officer or employee.
  Long-Term
Incentive Plan
  The
Company has a stock compensation plan under which directors are authorized to
grant incentive stock options, to a maximum of one million (1,000,000) of the
issued and outstanding shares, to directors, employees and consultants of the
Company. The plan provides both for the direct award or sale of shares and for
the grant of options to purchase Shares. The company filed this plan using Form
S-8 on September 28, 2006.
   -39-
 
 Security
Ownership of Certain Beneficial Owners and Management
 
 The
following table sets forth, all individuals known to beneficially own 5% or more
of the Company's common stock, and all officers and directors of the registrant,
with the amount and percentage of stock beneficially owned as of September 30,
2007:
  Name and
      Address
                    Amount and
      NatureOf
      Beneficial Holder
                    of
      Beneficial Ownership
                    
                    PercentageKarim
    Menassa
                    14,533,179
      shares
                    
                    
                    53.70
                    %President,
      Director1872 Beaulac, Ville
      Saint-LaurentMontreal, Quebec, Canada HR4
      2E7Michel
    Bayouk
                    3,281,183
      shares
                    
                    
                    12, 1
                    %Secretary,
      Director1872 Beaulac, Ville
      Saint-LaurentMontreal, Quebec, Canada HR4
      2E9Officers and Directors as a
      Group
                    17,814,362
      shares
                    
                    
                    65, 8
                    %2845351 Canada,
      Inc.
                    2,000,000
      shares
                    
                    
                    7.40
                    %Controlled by Dominique
      Gendron300 St. Sacrement, Suite
      414,Montreal, Quebec, Canada H2Y
      1X4
  Total
issued and outstanding as of September 30, 2007 was 27,058,663
shares.
 Notes:
  1.
                  Karim
      Menassa directly holds common shares of Medical International Technology,
      Inc., indirectly through 2849674 Canada, Inc., which is controlled by
      Karim Menassa, and indirectly through Idee R&D International, Inc.’s,
      which is controlled by Karim Menassa, and also indirectly through
      9162-9725 Quebec Inc., witch is also controlled by Karim
      Menassa.
  2.
                  Michel
      Bayouk directly holds common shares of Medical International Technology,
      Inc., indirectly through 1065029 Canada, Inc. which is controlled by
      Michel Bayouk, indirectly through 9117-2221 Quebec, Inc. which is 100%
      owned by Michel Bayouk, indirectly through Dynagroup Services, Inc., a
      company in which Michel Bayouk maintains an interest, and also indirectly
      through 9162-9725 Quebec Inc. which Michel Bayouk maintains an
      interest.
  3.
                  2845351
      Canada, Inc. is 100% beneficially held By Dominique Gendron. 284531
      Canada, Inc. holds:
  2,000,000
common share (Series A) Warrants exercisable as of December 13, 2005 at a price
of $0.75 and expire on October 27, 2007.
  2,000,000
common share (Series A) Warrants exercisable as of December 13, 2005 at a price
of $1.00 and expire on October 27, 2007
 
 All
ownership is beneficial and of record except as specifically indicated
otherwise. Beneficial owners listed above have sole voting and investment power
with respect to the shares shown unless otherwise indicated.
  
 -40-
 
  Certain
Relationships and Related Transactions
  Debt Conversions to
Equity
  During
the year 2006, the Company announced that it has settled $444,600 of management
debt through the issuance of 1,594,800 post 10 to one reverse split common
shares at a post reverse split price of $0.28 per share. The debt included cash
loaned to the company and accrued services.
  Group Intercapital
Inc.
  Group
Intercapital Inc is a consulting firm controlled by Claude Gendron, a consultant
retained by MIT. The consulting firm is retained at a rate of $20,000 per month
for a two-year period.
  However
on October 31, 2006 this agreement was mutually cancelled by the company and
Groupe Inter Capital Inc., by signing a release, discharge and transaction
document; giving 200,000 free trading common shares to Canadian company
controlled by a daughter of Claude Gendron.
  Private
Placements
  The
company engaged in the following private offerings during the year ended
September 30, 2007.
  On June
11 2007, the Board of Director of MIT signed an agreement with 9162-9725 Quebec
Inc a Quebec private company, to purchase all of the issued and outstanding
shares of 9139-2449 Quebec Inc. (SCANVIEW) common stock, for a total of
2,500,000 Common shares of MIT. Following the signing of the agreement MIT
issued to 9162-9725 Quebec Inc. a total of 2,500,000 Common shares of
MIT.
   ScanView
was a private Canadian company owned by Karim Menassa, our CEO and Director,
owning 55% of Scanview, Michel Bayouk, our CFO and Director, owning 10% of
Scanview and three other unrelated shareholders. The transaction was not at arms
length and approved by principals common to both companies. At the time of the
transaction both companies held nominal assets and nominal sales. Due to the low
stock price and illiquidity of MIT common stock at the time of the completed
transaction the value of the transaction was substantially reduced from what was
originally contemplated in December 2005.
  The
Company valued the common shares issued at 0.07 per share or $175,000, which
represented the adjusted average closing share price for the week prior and week
after the closing date. The fair value of the assets acquired by the Company was
approximately $322,000, consisting primarily of tax credits receivable,
equipment and other intangible assets, and the Company assumed approximately
$147,000 in liabilities, consisting of 2 notes payable agreements to a bank and
trade accounts payable and other accrued expenses.
  Exhibits and Reports
on Form 8-K
  The
following lists all Reports on Form 8-K filed by the registrant during the
fiscal year ending September 30, 2007; and all Reports on Form 8-K filed by the
registrant as to the date of filing of this Report on Form 10-KSB:
  April 20,
1007; Item 4.01 – Changes in Registrant’s Certifying Accountant
  Index
to Exhibits and Reports
  3.1
                    Amended
      and Restated Articles of Incorporation filed with registrant’s annual
      report on Form 10-KSB incorporated by reference to the Form 10-KSB filed
      with the Securities and Exchange Commission on January 3,
      2006.3.2
                    Bylaws
      of the Corporation filed with registrant’s annual report on Form 10-KSB
      incorporated by reference to the Form 10-KSB filed with the Securities and
      Exchange Commission on January 3, 2006.31.1
                    Certifications
      of the Chief Executive Officer and Chief Financial
      Officer required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule
      15d-14(a) (17 CFR 240.15d-14(a))   -41-
 
  32.1
                    Certification
      of the Chief Executive Officer and Chief Financial
      Offier required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule
      15d-14(b) (17 CFR 240.15d-14(b)) And Section 1350 of Chapter 63 of Title
      18 of the United States Code (18 U.S.C. 1350)
  Principal
Accountant Fees and Services
  (1)
                  Audit
      Fees
  The
aggregate fees billed for each of the last two fiscal years for professional
services rendered by the principal accountant for the audit of the registrant's
annual financial statements and review of financial statements included in the
registrant's Form 10-QSB or services that are normally provided by the
accountant in connection with statutory and regulatory filings or engagements
for the fiscal years ending September 30, 2007 and 2006 were: $21,000 and
$15,000 respectively.
  (2)
                  Audit-Related
      Fees
  The
aggregate fees billed in each of the last two fiscal years for assurance and
related services by the principal accountant that are reasonably related to the
performance of the audit or review of the registrant's financial statements and
are not reported under item (1) for the fiscal years ending September 30, 2007
and 2006 were: $0 and $0, respectively.
  The
nature of the services comprising the fees herein disclosed are: none
provided.
  (3)
                  Tax
      Fees
  The
aggregate fees billed for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning for the fiscal years
ending September 30, 2007 and 2006 were: $0 and$0, respectively.
  The
nature of the services comprising the fees herein disclosed are: none
provided
  (4)
                  All
      Other Fees
  No
aggregate fees were billed for professional services provided by the principal
accountant, other than the services reported in items (1) through (3) for the
fiscal years ending September 30, 2007 and 2006.
  (5)
                  Audit
      Committee
  The
registrant's Audit Committee, or officers performing such functions of the Audit
Committee, have approved the principal accountant's performance of services for
the audit of the registrant's annual financial statements and review of
financial statements included in the registrant's Form 10-QSB or services that
are normally provided by the accountant in connection with statutory and
regulatory filings or engagements for the fiscal year ending September 30, 2007.
Audit-related fees, tax fees, and all other fees, if any, were approved by the
Audit Committee or officers performing such functions of the Audit
Committee.
  (6)
                  Work
      Performance by others
  The
percentage of hours expended on the principal accountant's engagement to audit
the registrant's financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal accountant's
full-time, permanent employees was less than 50 percent.
  -42-
   
    SIGNATURES
  
  In
accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
  Medical International Technology,
      Inc.RegistrantDate: November 24,
      2009
                    By:
                    /s/  Karim Menassa,
      PresidentKarim Menassa, President and Principal
      Executive Officer
                      Interim
      Secretary and Principal Accounting
  Officer
  In accordance with the Exchange Act, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
  Date: November 24,
      2009
                      By:
                      /s/  Karim Menassa,
      PresidentKarim Menassa, President and Principal
      Executive OfficerInterim
      Secretary and Principal Accounting
  Officer
 -43-