UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C. 20549









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







1











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










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
              
              
              225,175
              
              
              
              225,175Furniture
                  and office
                  equipment
              
              
              133,014
              
              
              
              59,372Leasehold
                  improvements
              
              
              22,163
              
              
              
              22,163380,352
              
              
              
              306,710Less
                  accumulated
                  depreciation
              
              
              (245,536
              )
              
              
              (199,090
              )134,816
              
              
              
              107,620Other
                  AssetsPatents
                  (net of accumulated
                  amortization of $932 and $466)
              
              
              1,098
              
              
              
              1,564Total
                  Assets
              
              $
              655,695
              
              
              $
              398,168




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)
              
              
              167,424
              
              
              
              (16,121
              )Total
                  Stockholder's Equity (Deficit)
              
              
              2,938
              
              
              
              (301,590
              )Total
                  Liabilities and Stockholder's Equity (Deficit)
              
              $
              655,695
              
              
              $
              398,168




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)
              
              
              167,424
              
              
              
              20,203
              
              
              
              49,723Net
                  comprehensive
                  loss
              
              $
              (
                730,952
              )
              
              $
              (
                1,489.43
              )
              
              $
              (
                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 debts and legal services
                
                
                779,340
                
                
                
                578,990
                
                
                
                94,611Common
                    stock
                    issued for acquisition of Scanview
                
                
                175,000
                
                
                
                -
                
                
                
                -(Increase)
                    Decrease in
                    AssetsDecrease
                    (Increase) in accounts receivable
                
                
                12,307
                
                
                
                16,050
                
                
                
                (35,294
                )(Increase)
                    Decrease in research credit receivable
                
                
                54,912
                
                
                
                12,282
                
                
                
                (78,948
                )Decrease
                    (Increase) in inventories
                
                
                (116,004
                )
                
                
                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 Customer Deposit
                
                
                (50,064
                )
                
                
                (58,979
                )
                
                
                38,192(Decrease)
                    Increase in accounts payable and accrued expenses
                
                
                (122,204
                )
                
                
                (225,764
                )
                
                
                475,327Net
                    cash used in operating
                    activities
                
                
                (115,573
                )
                
                
                (1,132,790
                )
                
                
                (123,709
                )Equipment
                    acquisition
                
                
                -
                
                
                
                (21,127
                )
                
                
                -Tooling
                    and
                    machinery
                
                
                (73,642
                )
                
                
                -
                
                
                
                -Net
                    cash used in investing
                    activities
                
                
                (73,642
                )
                
                
                (21,127
                )
                
                
                -Gross
                    proceeds from private
                    offering
                
                
                65,020
                
                
                
                1,287,098
                
                
                
                -Advances
                    from related
                    parties
                
                
                -
                
                
                
                -
                
                
                
                88,235Reduction
                    in amounts due to
                    related parties
                
                
                (221,844
                )
                
                
                (139,854
                )
                
                
                -Small
                    business
                    loans
                
                
                347,111
                
                
                
                (16,484
                )
                
                
                (15,238
                )Net
                    cash provided by
                    financing activities
                
                
                190,287
                
                
                
                1,130,760
                
                
                
                72,997183,544
                
                
                
                20,203
                
                
                
                49,723184,616
                
                
                
                (2,954
                )
                
                
                (989
                )2,920
                
                
                
                5,874
                
                
                
                6,863$
                187,536
                
                
                $
                2,920
                
                
                
                5,874Cash
                    Paid
                    For:Interest
                
                $
                25,463
                
                
                $
                31,256
                
                
                $
                47,929Income
                    taxes
                
                $
                -
                
                
                $
                -
                
                
                $
                -


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 and Related Risks




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.




Note
      2 – 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
      inMontreal,Canadaand
      maintains its books and records in
      Canadian Dollars. The financial statements herein have been converted into
      U.S.
      Dollars. Balance sheet accounts, other than property and equipment, have been
      translated at exchange rates in effect at the end of the
      year.  Property and equipment is converted at the exchange rate in
      effect at the date of purchase.  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
      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






28


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.









29


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.







30


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.






31


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






32


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.






33


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.






34







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.






35







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.






36















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.






37







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.






38





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.







39







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 required by Rule 13a-14(a) (17 CFR
                  240.13a-14(a)) or Rule 15d-14(a) (17 CFR 240.15d-14(a))31.2
              Certifications
                  of the 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))   40
 
  32.1
              Certification
                  of the Chief Executive Officer 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)32.2
              Certification
                  of the Chief Financial Officer 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.




41















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:
                  December 17,
                  2007
              By:
              /s/  Karim
                  Menassa,
                  PresidentKarim
                  Menassa, President and
                  Principal Executive OfficerDate:
                  December 17,
                  2007
              By:
              /s/  Michel
                  Bayouk,
                  SecretaryMichel
                  Bayouk, 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:
                    December 17,
                    2007
                By:
                /s/  Karim
                    Menassa,
                    PresidentKarim
                    Menassa, President and
                    Principal Executive OfficerDate:
                    December 17,
                    2007
                By:
                /s/  Michel
                    Bayouk,
                    SecretaryMichel
                    Bayouk, Secretary and
                    Principal Accounting Officer


42