UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-K





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





For the
fiscal year ended    September
30, 2009





Commission
file number: 000-31469





Medical International
Technology, Inc.


(Exact
name of small business issuer as specified in its charter)





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


Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.  Yes o     No þ





Indicate
by check mark if the registrant is not required to file reports pursuant to
Section 13 or Section 15(d) of the Securities
Act.  Yes o     No þ





Indicate
by check mark whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes þ     No o





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Website, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T
(§ 229.405 of this chapter) during the preceding 12 months (or for
such shorter period that the registrant was required to submit and post such
files).  Yes o     No o





Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not 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-K or any
amendment to this Form 10-K.  þ





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check
one):





Large
      accelerated filer o
            Accelerated
      filer o
            Non-accelerated
      filer o
            Smaller
      reporting company þ


(Do
not check if a smaller reporting company)





Indicate
by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act).  Yes o     No þ





The
aggregate market value of the voting and non-voting common equity held by
non-affiliates as of September 30, 2009 is approximately $2,325,639 (based on
its reported last sale price by the OTC Pink Sheets).





The
number of shares outstanding of the Registrant’s common stock as of November 16,
2009 was 59,087,795.





Documents
Incorporated By Reference


None











Medical International Technology, Inc.








Table of
Contents








PAGEPART
      IITEM
      1.
            
            Business
            
            3ITEM
      1A.
            
            Risk Factors
            
            7ITEM
      2.
            
            Properties
            
            8ITEM
      3.
            
            Legal Proceedings
            
            8ITEM
      4.
            
            Submission of Matters to a Vote of Security
      Holders
            
            8PART
      IIITEM
      5.
            
            Market for Registrant’s Common Equity, Related
      Stockholder Matters and Issuer Purchases of Equity
      Securities
            
            8ITEM
      6.
            
            Selected Financial Data
            
            10ITEM
      7.
            
            Management’s Discussion and Analysis of Financial
      Condition and Results of Operation
            
            10ITEM
      7A.
            
            Quantitative and Qualitative Disclosures About
      Market Risk
            
            14ITEM
      8.
            
            Financial Statements and Supplementary
      Data
            
            15ITEM
      9.
            
            Changes in and Disagreements with Accountants on
      Accounting and Financial Disclosure
            
            30ITEM
      9A(T).
            
            Controls and Procedures
            
            30PART
      IIIITEM
      10.
            
            Directors, Executive Officers and Corporate
      Governance
            
            31ITEM
      11.
            
            Executive Compensation
            
            32ITEM
      12.
            
            Security Ownership of Certain Beneficial Owners
      and Management and Related Stockholder Matters
            
            34ITEM
      13.
            
            Certain Relationships and Related
      Transactions
            
            35ITEM
      14.
            
            Principal Accounting Fees and
      Services
            
            36PART
      IVITEM
      15.
            
            Exhibits, Financial Statement
      Schedules
            
            36SIGNATURES

















Medical International Technology, Inc.





Item 1. 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.





On May 6,
2009, we entered into a certain joint venture agreement (the “Joint Venture
Agreement”) with Jiangsu Hualan Biotechnology Ltd. (China) (“Jiangsu Hualan”).
Pursuant to the Joint Venture Agreement, the parties established a joint venture
company, Jiangsu Hualan MIT Medical Technology (MIT China) Ltd. (“MIT China” or
the “Joint Venture”), focusing on research, production and sales of medical
equipments, import and export of medical equipments and components products,
especially Needle-Free Jet Injector products. The total investment by the Joint
Venture amounted to US$2,000,000, and the registered capital amounted to
US$1,400,000. We invested US$686,000, representing 49% of the registered
capital, to the Joint Venture, including $280,000 as technology contribution and
$406,000 in cash.





We have
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;





(5)
            Prevents
      stress from traditional needle syringes and infections from contaminated
      needles;(6)
            Friendly
      to the environment (No biological
waste);





(7)
            Affordable
      and economical;(8)
            Efficient
      use of medication used.










-3-





Medical International Technology, Inc.


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
2010. The potential market for the diabetic injector 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. MIT will continue
selling in the markets where our products are currently approved and continue
our efforts in localities where approvals are pending.





-4-





Medical International Technology, Inc.





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
are gaining broader acceptance for our low pressure 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.





Doctors,
nurses and technicians  has been using the MED-JET-MBX with 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 and many other
injectables.





Product
Development





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
needle sticks, including hepatitis B and C, tuberculosis, syphilis, malaria,
herpes, diphtheria, gonorrhea, typhus and Rocky Mountain spotted
fever.





The
MED-JET eliminates this risk to our health care professionals and creates 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.





The
MED-JET has patent protection and is approved for use in human medicine in
Canada, Europe and other countries.





The
approval process is expensive and may take extended period of time. MIT will
target for 2010 and 2011, 3 new MED-JET products to receive approval from the
FDA. And is confident to gain broad acceptance by the medical community and
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 needle
injections. Many other physicians in many countries around the world are using
the MED-JET for many other treatments.





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.





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 other treatments.





-5-





Medical International Technology, Inc.





MIT’s
MED-JET ® MBX injector helps 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 0.3cc. 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
the June 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.





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.











-6-





Medical International Technology, Inc.





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, Malaria and H1N1.





Medical
International Technologies is proceeding with the test requested earlier by the
FDA, and is expecting to finalize the tests during 2010 fiscal
year.





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.





Item1A.
Risk Factors





Not
applicable because we are a smaller reporting company.










-7-





Medical International Technology, Inc.




Item 2. Description of Property





Medical
International Technology, Inc. currently leases its office under an operating
lease that expires December 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, 2009 was $33,300. The
current lease rate is $33,300 annually.





Item 3. Legal Proceedings





There are
no pending legal proceedings to which the Company is a party or in which any
director, officer or affiliate of the Company, any owner of record or
beneficially of more than 5% of any class of voting securities of the Company,
or security holder is a party adverse to the Company or has a material interest
adverse to the Company. The Company’s property is not the subject of any pending
legal proceedings.





Item 4. 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, 2009.





Item 5. 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”. The following table sets forth, for the
periods indicated, the last sale prices for the Common Stock as reported by the
Pink Sheets.





High
            
            
            LowDateSeptember
      2009
            
            $
            0.02
            
            
            $
            0.02June
      2009
            
            $
            0.02
            
            
            $
            0.02March
      2009
            
            $
            0.02
            
            
            $
            0.02December
      2008
            
            $
            0.02
            
            
            $
            0.02September
      2008
            
            $
            0.02
            
            
            $
            0.02June
      2008
            
            
            0.02
            
            
            
            0.02March
      2008
            
            
            0.02
            
            
            
            0.02December
      2007
            
            
            0.02
            
            
            
            0.02September
      2007
            
            
            0.08
            
            
            
            0.02June
      2007
            
            
            0.08
            
            
            
            0.05March
      2007
            
            
            0.10
            
            
            
            0.05December
      2006
            
            
            0.30
            
            
            
            0.15





Holders





Medical
International Technology had 59,087,795 shares of common stock issued and
outstanding as of September 30, 2009, which were held by approximately 71
shareholders and an undetermined number of shareholders holding common shares in
street name (CEDE&CO).





Options





The
Company has no option agreements outstanding as of September 30,
2009.











-8-





Medical International Technology, Inc.





Recent Sales of Unregistered
Securities





On May
27, 2009, we completed two rounds of financing. The first private placement
consisted of 2,500,000 units at a price of $0.10 per unit (each, a “Unit”, and
collectively, the “Units”). Each Unit sold in this offering was composed of (i)
one (1) share of common stock at a purchase price of $0.10 per share, and (ii)
one (1) share of Series H Warrant for the purchase of 2,500,000 shares of the
Company’s common stock at an exercise price of $0.50 per share with an
expiration date of April 15, 2010. The total amount raised from this placement
was $250,000. The second private placement consisted of a sale of 1,785,712
shares of common stock at a price of $0.14 per share. The total amount raised
from this placement was $250,000.





On April
1, 2009, we entered into certain share purchase agreements (“Share Purchase
Agreements”) with certain investors, pursuant to which we issued to the
investors 2,000,000 shares of our common stock at a price of $0.10 per share for
a total of $200,000 at the closing of the transaction.




The
securities in these offerings were sold in exempt transactions under, Section
4(2) of the Securities Act of 1933, Regulation “S” of the Securities Act of 1933
and are subject to Rule 144 of the Securities Act of 1933, as amended. These
securities qualified for exemption under Section 4(2) of the Securities Act of
1933 since the issuance securities by us did not involve a public offering. The
offering was not a “public offering” as defined in Section 4(2) due to the
insubstantial number of persons involved in the deal, size of the offering,
manner of the offering and number of securities offered. We did not undertake an
offering in which we sold a high number of securities to a high number of
investors. In addition, these shareholders had the necessary investment intent
as required by Section 4(2) since they agreed to and received share certificates
bearing a legend stating that such securities are restricted pursuant to Rule
144 of the 1933 Securities Act. This restriction ensures that these securities
would not be immediately redistributed into the market and therefore not be part
of a “public offering.” Based on an analysis of the above factors, we have met
the requirements to qualify for exemption under Section 4(2) of the Securities
Act of 1933 for this transaction.





Equity Compensation Plan
Information





The
following table sets forth certain information as of the date hereof, with
respect to compensation plans under which our equity securities are authorized
for issuance:





(a)
            (b)
            (c)_________________
            _________________
            _________________Number
      of securities to be issued upon exercise of outstanding options, warrants
      and rights
            Weighted-average
      exercise price of outstanding options, warrants and rights
            Number
      of securities remaining available for future issuance under equity
      compensation plans (excluding securities reflected in column
      (a))Equity
      compensation
            NonePlans
      approved bySecurity
      holdersEquity
      compensation
            NonePlans
      not approvedBy
      security holdersTotal





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.








-9-





Medical International Technology, Inc.





Item
6. Selected Financial Data


Not
applicable because we are a smaller reporting company.





Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations





The
following discussion should be read in conjunction with the Consolidated
Financial Statements and Notes thereto appearing elsewhere in this Form 10-K.
The following discussion contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 relating to future events or our future performance. Actual
results may materially differ from those projected in the forward-looking
statements as a result of certain risks and uncertainties set forth in this
prospectus. Although management believes that the assumptions made and
expectations reflected in the forward-looking statements are reasonable, there
is no assurance that the underlying assumptions will, in fact, prove to be
correct or that actual results will not be different from expectations expressed
in this report.







-10-





Medical International Technology, Inc.





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.





On May
21, 2009 MIT signed a Joint Venture Agreement with the largest manufacturer of
rubber stopper in China supplying to most of the Pharmaceutical Corporation MIT
has also received an initial order of 120 Agro-Jet® for vaccination of livestock
and poultry from the joint venture. The name of the joint venture company is
“Jiangsu Hualan MIT Medical Technology (MIT China) Ltd” and it is located in
Taizhou city in the Jiangsu province. This prime location, supported by the
central government, will become the most important medical city in China through
the relocation of the pharmaceutical and medical devices corporations. MIT
Canada/USA has 49% equity in “Jiangsu Hualan MIT Medical Technology (MIT China)
Ltd”. The total investment by both parties is US$ 1.4 million
dollars.





MIT China
received recently all the legal documents pertaining to the licenses for the
manufacturing of all MIT Canada products and has started assembling the Agro-Jet
models in September 2009 for the sales to the Chinese market. MIT Canada will
continue to produce and supply most of the components for the joint venture. Our
plan is to implement step by step the assembly and production of all our models
for the Human “MED-JET” and Animal “AGRO-JET” needle-free
technologies.





Our
associations with “Jiangsu Hualan” the largest manufacturer of rubber stopper in
China will help Medical International Technologies (MIT Canada) Inc. become a
world leader in the Needle-Free technology and reduce the world’s dependence on
needles. Moreover, it will ensure that MIT injectors become an indispensable,
environmentally friendly product for single and mass vaccination and biologics
injectables for doctors and users around the world. MIT’s mission is to help
make the world needle-free.





Medical
International Technology Inc. is pleased to continue providing a safe and
effective means to help prevent the spread of deadly diseases to both humans and
animals through the use of the Med-Jet® and Agro-Jet® needle-free injection
system.





Critical Accounting
Policies





The
accompanying discussion and analysis of our financial condition and results of
operations are based upon our financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States of
America (“US GAAP”). The preparation of these financial statements requires us
to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues, and expenses, and related disclosure of contingent assets
and liabilities. These estimates form the basis for making judgments about the
carrying values of assets and liabilities that are not readily apparent from
other sources. We base our estimates and judgments on historical experience and
all available information. However, future events are subject to change, and the
best estimates and judgments routinely require adjustment. US GAAP requires us
to make estimates and judgments in several areas, including those related to
recording various accruals, income taxes, the useful lives of long-lived assets,
such as property and equipment and intangible assets, and potential losses from
contingencies and litigation. We believe the policies discussed below are the
most critical to our financial statements because they are affected
significantly by management’s judgments, assumptions and estimates.







-11-





Medical International Technology, Inc.





Foreign
Currency Translations





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





New Accounting
Pronouncements





In
December 2007, the Financial Accounting Standards Board issued FASB Accounting
Standards Codification   805, “Business Combinations” (ASC 805),
previously referred to as Statement of Financial Accounting Standards
No. 141R “Business Combinations.” ASC 805 will require, among other things,
the expensing of direct transaction costs, in process research and development
to be capitalized, certain contingent assets and liabilities to be recognized at
fair value and earn-out arrangements may be required to be measured at fair
value recognized each period in earnings. In addition, certain material
adjustments will be required to be made to purchase accounting entries at the
initial acquisition date and will cause revisions to previously issued financial
information in subsequent filings. ASC 805 is effective for transactions
occurring after the beginning of the first annual reporting period beginning on
or after December 15, 2008 and may have a material impact on our
consolidated financial position, results from operations and cash flows should
we enter into a material business combination after the standards effective
date.





In March
2008, the Financial Accounting Standards Board issued FASB Accounting Standards
Codification 815, “Derivatives and Hedging” (ASC 815), previously referred
to as Statement of Financial Accounting Standards No. 161, “Disclosures
about Derivative Instruments and Hedging Activities — An Amendment to
SFAS 133” (SFAS 161). SFAS 161 applies to all derivative
instruments accounted for under ASC 815 and requires entities to provide greater
transparency on how and why entities use derivative instruments, how derivative
instruments are accounted for under ASC 815, and the effect the derivative
instruments may have on the results of operations and cash flows. ASC 815 is
effective for fiscal years and interim periods beginning after November 15,
2008. Since ASC 815 only applies to disclosures it has not had a material impact
on our consolidated financial position, results from operations, and cash
flows.





In June
2009, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 167, “Amendments to FASB Interpretation
No. 46(R)” (SFAS 167). SFAS 167 addresses the effects of
eliminating the qualifying special-purpose entity (QSPE) concept from Statement
of Financial Accounting Standards No. 140, “Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities” and addresses
certain key provisions of FIN 46(R), including transparency of enterprises’
involvement with variable interest entities (VIEs). SFAS 167 is effective
for fiscal years beginning after November 15, 2009 and interim periods
within those fiscal years. We are currently assessing the implications of this
standard and evaluating the impact of adopting SFAS 167 on our consolidated
financial statements.




-12-


Medical International Technology, Inc.






Results of Operations for
the Year ended September 30, 2009 Comparing to the Year ended September 30,
2008




The
following table presents the statement of operations for the year ended
September 30, 2009 as compared to the comparable period of the year ended
September 30, 2008. The discussion following the table is based on these
results.





Years
      Ended September 30,2009
            
            
            2008Revenues
            
            $
            656,477
            
            
            $
            328,713Cost
      of sales
            
            
            228,334
            
            
            
            231,470Gross
      profit
            
            
            428,143
            
            
            
            97,243Operating
      expensesResearch
      and development costs
            
            
            1,981,104
            
            
            
            1,802,085Selling,
      general and administrative expenses
            
            
            778,364
            
            
            
            656,059Total
      operating expenses
            
            
            2,759,468
            
            
            
            2,458,144Operating
      income (loss)
            
            
            (2,331,325
            )
            
            
            (2,360,901
            )Other
      income (expense):Goodwill
      impairment charge
            
            
            -
            
            
            
            -Interest
      income
            
            
            956
            
            
            
            16,798Interest
      expense
            
            
            (3,841
            )
            
            
            (17,779
            )Total
      other income (expense)
            
            
            (2,885
            )
            
            
            (981
            )Income
      (loss) before provision for income taxes
            
            
            (2,334,210
            )
            
            
            (2,361,882
            )Net
      loss
            
            $
            (2,334,210
            )
            
            $
            (2,361,882
            )





Revenues





The
company’s consolidated revenuesgrew by $327,764 or 99.7% to $656,477 during the fiscal year ending
September 30, 2009.These grows came primarily from the continuous effort to open the Human
market in countries where MIT certifications allows the sales in the medical and
cosmetic markets.





Cost
of Sales





The cost
of sales decreased slightly by $3,136 in 2009. This slight decrease was related
to our product marketing and selling initiatives in the selected niche
markets.





Gross
Profit





The gross
profit increased by 340.2% for the year ending September 30, 2009, compared to a
reduction by 55% from 2007 to 2008. This increase is due primarily to the
marketing and selling initiatives in the selected niche markets that have
secured our monthly sales.





Operating
Expenses





The
Research, development and the selling, general administrative expenses increased
by approximately $179,019 to $1,981,104 and the selling, general administrative
expenses also increased by approximately $122,305 to $778,364. This increase
stemmed primarily from the costs related to new products development, investment
in moulds and marketing initiatives in the various business
segments.





Net
Loss





The
company’s net loss decreased slightly to $2,334,210 from $2,361,882, due mainly
to the exceptional gross profit increase by 340.2%.








-13-





Medical International Technology, Inc.





Liquidity and Capital
Resources





During
the fiscal year ending September 30, 2009 the Company’s cash position decreased
by $17,373. Net cash used by operating activities was $94,960, resulting
primarily from increases in related party payables and common stock issued for
services.  Net cash provided by financing activities was $619,488,
resulting primarily from the issuance of stock in private placements netting
cash proceeds of $628,571.  Net cash used by investing activities was
$415,257, of which $406,100 was used for the Company acquisition in the MIT
China joint venture.  The effect of exchange rates on cash during
fiscal 2009 resulted in a decrease in cash value of $126,644.





During
the fiscal year ending September 30, 2008 the Company’s cash position decreased
by $92,702. Net cash provided by operating activities was $521,257, resulting
primarily from increases in related party payables and increases in deferred
revenue as a result of the distribution rights deposit of
$1,300,000.  Net cash used by financing activities was $332,014,
resulting primarily from the repayment of notes payable of
$282,318.  Net cash used by investing activities was $4,648, which was
used entirely for the acquisition of machinery used the manufacturing
process.  The effect of exchange rates on cash during fiscal 2008
resulted in a decrease in cash value of $277,297.





The
Company has reported a negative working capital position of $4,717,140 and has
accumulated operation losses since inception of $11,667,623, 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.





During
the year ended September 30, 2009, the Company issued 6,285,174 shares of common
stock in connection with private placements for additional capital of $700,000
(SB 700,000), of which 4,500,000 shares were issued at $0.10 per share for total
proceeds of $450,000 and 1,785,174 shares were issued at $.014 per share for
total proceeds of $250,000.  These proceeds were used to fund the
Company’s acquisition in the MIT China joint venture as well as provided
additional working capital.





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.





Off-Balance Sheet
Arrangements





We do not
have any off-balance sheet arrangements, financings, or other relationships with
unconsolidated entities or other persons, also known as “special purpose
entities” (SPEs).





Item7A.  Quantitative and Qualitative
Disclosures about Market Risk





Not
applicable because we are a smaller reporting company.







-14-





Medical International Technology, Inc.





Item 8. Financial Statements











Medical
International Technology, Inc.





Financial
Statements





Contents





PageReport
      of Independent Registered Public Accounting Firm
            16Financial
      StatementsConsolidated
      Balance Sheet
            17Consolidated
      Statements of Operations
            18Consolidated
      Statements of Comprehensive Loss
            19Consolidated
      Statement of Stockholders’ (Deficit)
            20Consolidated
      Statements of Cash Flows
            21Notes
      to Consolidated Financial Statements
            22











-15-





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, 2009 and 2008, 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 audits.





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 audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audits 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. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, 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. We believe that our audits provide a
reasonable basis for our opinion.





In our
opinion, the 2009 and 2008 consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Medical
International Technology, Inc. and subsidiaries as of September 30, 2009 and
2008, 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
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As discussed in Note 1 to the financial
statements, the Company has suffered recurring losses from operations and has a
working capital deficiency. Those conditions raise substantial doubt about its
ability to continue as a going concern. Management’s plans regarding those
matters are also described in Note 1. The financial statements do not include
any adjustments that might result from the outcome of this
uncertainty.








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








Wharton,
Texas


December
11, 2009











-16-











MEDICAL
INTERNATIONAL TECHNOLOGY


CONSOLIDATED
BALANCE SHEETS











September
      30,2009
            
            
            2008AssetsCurrent
      assetsCash
      and cash equivalents
            
            $
            77,461
            
            
            $
            94,834Accounts
      receivable
            
            
            5,425
            
            
            
            -Inventories
            
            
            220,139
            
            
            
            169,459Research
      credit receivable
            
            
            -
            
            
            
            -Prepaid
      expenses
            
            
            5,040
            
            
            
            3,565Total
      current assets
            
            
            308,065
            
            
            
            267,858Property
      and EquipmentTooling
      and machinery
            
            
            290,053
            
            
            
            330,873Furniture
      and office equipment
            
            
            136,001
            
            
            
            170,356Leasehold
      improvements
            
            
            27,980
            
            
            
            31,925Total
      property and equipment
            
            
            454,033
            
            
            
            533,154Less
      accumulated depreciation
            
            
            (416,409
            )
            
            
            (381,358
            )Total
      property and equipment, net
            
            
            37,624
            
            
            
            151,796Patents
      (net of accumulated amortization of $2,549 and $1,398)
            
            
            8,387
            
            
            
            632Investment
      in MIT China Joint Venture
            
            
            426,678
            
            
            
            -Total
      assets
            
            $
            780,754
            
            
            $
            420,286Liabilities
      and Stockholder's Equity (Deficit)Current
      liabilitiesDeferred
      income
            
            $
            1,226,396
            
            
            $
            1,353,782Accounts
      payable and accrued expenses
            
            
            388,903
            
            
            
            90,245Amounts
      due to related parties
            
            
            3,332,463
            
            
            
            1,524,321Loans
      payable – related parties
            
            
            -
            
            
            
            -Current
      portion of long-term debts
            
            
            6,014
            
            
            
            8,237Total
      current liabilities
            
            
            4,953,776
            
            
            
            2,976,585Long-Term
      Debts
            
            
            -
            
            
            
            6,860Total
      liabilities
            
            
            4,953,776
            
            
            
            2,983,445Stockholder's
      Equity (Deficit)Preferred
      stock, $.0001 par value; 3,000,000 shares authorized;No
      issued and outstanding shares.
            
            
            -
            
            
            
            -Common
      stock, $.0001 par value; 100,000,000 shares authorized;59,087,257
      and 59,087,257 issued and outstanding, respectively
            
            
            5,909
            
            
            
            2,706Additional
      paid-in capital
            
            
            7,699,478
            
            
            
            6,804,339Accumulated
      deficit
            
            
            (11,667,623
            )
            
            
            (9,333,413
            )Other
      comprehensive income (loss)
            
            
            (210,786
            )
            
            
            (36,791
            )Total
      Stockholder's Equity (Deficit)
            
            
            (4,173,022
            )
            
            
            (2,563,159
            )Total
      Liabilities and Stockholder's Equity (Deficit)
            
            $
            780,754
            
            
            $
            420,286





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







-17-







MEDICAL
INTERNATIONAL TECHNOLOGY


CONSOLIDATED
STATEMENTS OF OPERATIONS











Years
      Ended September 30,2009
            
            
            2008Revenues
            
            $
            656,477
            
            
            $
            328,713Cost
      of sales
            
            
            228,334
            
            
            
            231,470Gross
      profit
            
            
            428,143
            
            
            
            97,243Operating
      expensesResearch
      and development costs
            
            
            1,981,104
            
            
            
            1,802,085Selling,
      general and administrative expenses
            
            
            778,364
            
            
            
            656,059Total
      operating expenses
            
            
            2,759,468
            
            
            
            2,458,144Operating
      income (loss)
            
            
            (2,331,325
            )
            
            
            (2,360,901
            )Other
      income (expense):Goodwill
      impairment charge
            
            
            -
            
            
            
            -Interest
      income
            
            
            956
            
            
            
            16,798Interest
      expense
            
            
            (3,841
            )
            
            
            (17,779
            )Total
      other income (expense)
            
            
            (2,885
            )
            
            
            (981
            )Income
      (loss) before provision for income taxes
            
            
            (2,334,210
            )
            
            
            (2,361,882
            )Provision
      for (benefit from) income taxes
            
            
            -
            
            
            
            -Net
      loss
            
            $
            (2,334,210
            )
            
            $
            (2,361,882
            )Net
      loss per common share
            
            $
            (0.04
            )
            
            $
            (0.09
            )Weighted
      average common sharesoutstanding
      - basic and diluted
            
            
            59,087,257
            
            
            
            27,058,663




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






-18-







MEDICAL
INTERNATIONAL TECHNOLOGY


CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS














Years
      Ended September 30,2009
            
            
            2008Net
      loss
            
            $
            (2,334,210
            )
            
            $
            (2,361,882
            )Other
      comprehensive income (loss)Foreign
      currency translation adjustment
            
            
            (173,995
            )
            
            
            (267,119
            )Comprehensive
      loss
            
            $
            (2,508,205
            )
            
            $
            (2,629,001
            )




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




-19-











MEDICAL
INTERNATIONAL TECHNOLOGY


CONSOLIDATED
STATEMENT OF STOCKHOLDERS' (DEFICIT)














AdditionalCommon
      Stock
            
            
            Paid-in
            
            
            AccumulatedShares
            
            
            Amount
            
            
            Capital
            
            
            DeficitBalances
      - September 30, 2006
            
            
            10,867,737
            
            
            $
            1,086
            
            
            $
            5,786,600
            
            
            $
            (6,073,155
            )Common
      shares issued for debts
            
            
            3,920,593
            
            
            
            392
            
            
            
            217,811Common
      shares issued for services
            
            
            9,498,333
            
            
            
            951
            
            
            
            560,185Common
      shares issued in private placements
            
            
            272,000
            
            
            
            27
            
            
            
            64,993Common
      shares issued for the acquisition of Scanview
            
            
            2,500,000
            
            
            
            250
            
            
            
            174,750Net
      loss for the year ended September 30, 2007
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (898,376
            )Balances
      - September 30, 2007
            
            
            27,058,663
            
            
            
            2,706
            
            
            
            6,804,339
            
            
            
            (6,971,531
            )Net
      loss for the year ended September 30, 2008
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (2,361,882
            )Balances
      - September 30, 2008
            
            
            27,058,663
            
            
            
            2,706
            
            
            
            6,804,339
            
            
            
            (9,333,413)Common
      shares issued for debts
            
            
            20,000,000
            
            
            
            2,000
            
            
            
            18,000Common
      shares issued for services
            
            
            5,743,420
            
            
            
            574
            
            
            
            177,768Common
      shares issued for additional capital
            
            
            6,285,174
            
            
            
            629
            
            
            
            699,371Net
      loss for the year ended September 30, 2009
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (2,328,464
            )Balances
      - September 30, 2009
            
            
            59,087,157
            
            
            $
            5
      909
            
            
            $
            7,699,478
            
            
            $
            (11,661,877
            )




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






-20-









MEDICAL
INTERNATIONAL TECHNOLOGY


CONSOLIDATED STATEMENTS OF CASH
FLOWS











Years
      Ended September 30,2009
            
            
            2008Cash
      flows from operating activities:Net
      loss
            
            $
            (2,334,210
            )
            
            $
            (2,361,882
            )Adjustments
      to reconcile net loss to net cashprovided
      by (used in) operating activities:Depreciation
      expense
            
            
            46,321
            
            
            
            53,963Amortization
      expense
            
            
            1,324
            
            
            
            466Goodwill
      impairment charge
            
            
            -
            
            
            
            -Common
      stock issued for services
            
            
            178,342
            
            
            
            -Changes
      in:Accounts
      receivable
            
            
            (5,425
            )
            
            
            6,973Research
      credit receivable
            
            
            -
            
            
            
            127,718Inventories
            
            
            (50,680
            )
            
            
            25,367Prepaid
      expenses
            
            
            (1,475
            )
            
            
            (801
            )Accounts
      payable and accrued liabilities
            
            
            298,658
            
            
            
            (159,805
            )Related
      party payables
            
            
            1,828,142
            
            
            
            1,467,219Deferred
      income
            
            
            (127,386
            )
            
            
            1,353,075Net
      cash used by operating activities
            
            
            (166,389
            )
            
            
            521,257Cash
      flows from investing activities:Acquisition
      of patents
            
            
            (9,157
            )
            
            
            -Acquisition
      in MIT China joint venture
            
            
            (406,100
            )
            
            
            -Tooling
      and machinery
            
            
            -
            
            
            
            (4,648
            )Net
      cash used by investing activities
            
            
            (415,257
            )
            
            
            (4,648
            )Cash
      flows from financing activities:Proceeds
      from issuance of stock, net
            
            
            700,000
            
            
            
            -Reduction
      in amounts due to related parties
            
            
            -
            
            
            
            (49,696
            )Issuance
      of notes payable
            
            
            -
            
            
            
            -Repayment
      on notes payable
            
            
            (9,083
            )
            
            
            (283,318
            )Net
      cash provided from financing activities
            
            
            690,917
            
            
            
            (332,014
            )Effect
      of exchange rates
            
            
            (126,644
            )
            
            
            (277,297
            )Increase
      (decrease) in cash
            
            
            (17,373
            )
            
            
            (92,702
            )Cash,
      beginning of period
            
            
            94,834
            
            
            
            187,536Cash,
      end of period
            
            $
            77,461
            
            
            $
            94,834Supplemental
      disclosure of cash flow information:Cash
      paid for interest
            
            $
            2,708
            
            
            $
            17,779Cash
      paid for federal income taxes
            
            $
            -
            
            
            $
            -Supplemental
      disclosure of non-cash transactionsCommon
      stock issued for debt reductions
            
            $
            20,000
            
            
            $
            -




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







-21-





Medical International Technology, Inc.





Note
1 –   Business Activities and Related Risks





Medical
International Technology, Inc. (the "Company") was incorporated in Colorado on
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.





Going
Concern:





The
Company has incurred net losses aggregating $4,696,092 during the two years
ended September 30, 2009.  In addition, the Company has a working
capital deficiency of $24,717,140 and a stockholder’s deficiency of $4,244,451
at September 30, 2009. These factors, amongst others, raise substantial doubt
about the Company’s ability to continue as a going concern.





There can
be no assurance that sufficient funds required during the next year or
thereafter will be generated from operations or that funds will be available
from external sources such as debt or equity financings or other potential
sources. The lack of additional capital resulting from the inability to generate
cash flow from operations or to raise capital from external sources would force
the Company to substantially curtail or cease operations and would, therefore,
have a material adverse effect on its business. Further, there can be no
assurance that any such required funds, if available, will be available on
attractive terms or that they will not have a significant dilutive effect on the
Company’s existing stockholders.





The
accompanying financial statements do not include any adjustments related to the
recoverability or classification of asset carrying amounts or the amounts and
classification of liabilities that may result should the Company be unable to
continue as a going concern.





The
Company has developed a plan to address liquidity in the following
ways:





●
            To
      raise capital through the sale or exercise of equity
      securities●
            Increase
      revenue through the sale of needle free devices and related
      products





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).  Intercompany transactions and balances have been
eliminated in consolidation.





Foreign
Currency Translations


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





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.




-22-





Medical International Technology, Inc.





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.





Inventories


Inventories
are stated at the lower of cost or net realizable value. Cost is determined on a
first-in, first-out basis. At each balance sheet date, the Company evaluates its
ending inventories for excess quantities and obsolescence. This evaluation
includes an analysis of sales levels by product type. Among other factors, the
Company considers historical and forecasted demand in relation to the inventory
on hand, competitiveness of product offerings, market conditions and product
life cycles when determining the net realizable value of the inventory.
Provisions are made to reduce excess or obsolete inventories to their estimated
net realizable values. Once established, write-downs are considered permanent
adjustments to the cost basis of the excess or obsolete
inventories.





Property
and Equipment


The cost
of property and equipment is depreciated over the estimated useful lives of the
related assets, which range from 5 to 7 years. Depreciation is computed on the
straight-line method for financial reporting purposes and on the declining
balance method for income tax reporting purposes. Depreciation expense for the
year ended September 30, 2009 and 2008 were $45,179 and $53,963,
respectively.





Long-Lived
Assets


FASB
Accounting Standards Codification 360-10-40, “Property, Plant, and Equipment,
Impairment of Disposal of Long-Lived Assets” (ASC 360-10-40), previously
referred to as Statement of Financial Accounting Standards No. 144,
“Accounting for Impairment or Disposal of Long-Lived Assets,” requires that
long-lived assets, such as property and equipment and purchased intangibles
subject to amortization, be reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be
recoverable. Recoverability of the asset is measured by comparison of its
carrying amount to undiscounted future net cash flows the asset is expected to
generate. If such assets are considered to be impaired, the impairment to be
recognized is measured as the amount by which the carrying amount of the asset
exceeds its fair market value. Estimates of expected future cash flows represent
our best estimate based on currently available information and reasonable and
supportable assumptions. Any impairment recognized in accordance with ASC
360-10-40 is permanent and may not be restored. As of September 30, 2009,
we had not recognized any impairment of long-lived assets in connection with ASC
360-10-40 based on our reviews.





Patents


Patents
on our technologies are being amortized over their remaining lives ranging from
8.5 years through 16 years.





Goodwill
and Purchased Intangible Assets


Goodwill
and identifiable intangible assets are accounted for in accordance with FASB
Accounting Standards Codification 350, “Intangibles — Goodwill and Other”
(ASC 350), previously referred to as Statement of Financial Accounting Standards
No. 142, “Goodwill and Other Intangible Assets.” Under this standard, we
assess the impairment of goodwill and identifiable intangible assets at least
annually and whenever events or changes in circumstances indicate that the
carrying value may not be recoverable. The first step in the assessment is the
estimation of fair value. If step one indicates that impairment potentially
exists, we perform the second step to measure the amount of impairment, if any.
Goodwill and identifiable intangible asset impairment exists when the estimated
fair value is less than its carrying 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.






-23-





Medical International Technology, Inc.





Stock
options


Effective
October 1, 2005, we adopted the provisions of FASB Accounting Standards
Codification 718, “Compensation — Stock Compensation” (ASC 718), previously
referred to as Statement of Financial Accounting Standards No. 123R,
“Share-Based Payment”.  We adopted ASC 718 using the modified
prospective transition method. Under this transition method, compensation cost
recognized includes (a) the compensation cost for all share-based awards
granted prior to, but not yet vested, as of October 1, 2005, based on the
grant-date fair value estimated in accordance with the original provisions of
ASC 718 and (b) the compensation cost for all share-based awards granted
subsequent to September 30, 2005, based on the grant-date fair value
estimated in accordance with the provisions of ASC 718. Additionally, we
accounted for restricted stock awards granted using the measurement and
recognition provisions of ASC 718. We measure the fair value of the restricted
stock awards on the grant date and recognize them in earnings over the requisite
service period for each separately vesting portion of the
award.





The
Company determines the value of stock options utilizing the Black-Scholes
option-pricing model. Compensation costs for share-based awards with pro rata
vesting are allocated to periods on a straight-line basis.





Net
Loss per Common Share


Basic
earnings per share (“EPS”) is computed by dividing net loss by the weighted
average number of common shares outstanding for the period. Diluted EPS reflects
the potential dilution from the exercise or conversion of securities into common
stock, including stock options and warrants. For the years ended September 30,
2009 and 2008, there were no dilutive effects of such securities as the Company
incurred a net loss in each period.  At September 30, 2009, the
Company had outstanding warrants to purchase 2,500,000 common shares at $0.50
per share.  There were no outstanding options or warrants as of
September 30, 2008.





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.





Income
Taxes


The
Company accounts for income taxes in accordance with FASB Accounting Standards
Codification 740, “Income Taxes” (ASC 740), previously referred to as Statement
of Financial Accounting Standards No. 109, “Accounting for Income Taxes,”
and Financial Accounting Standard Board Interpretation No. 48, “Accounting
for Uncertainty in Income Taxes.” Under ASC 740, we recognize deferred tax
assets and liabilities for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax basis. We measure deferred tax assets
and liabilities using enacted tax rates expected to apply to taxable income in
the years in which we expect those temporary differences to be recovered or
settled. We record valuation allowances to reduce our deferred tax assets to the
amount expected to be realized by considering all available positive and
negative evidence.
 
 Pursuant
to ASC 740, we must consider all positive and negative evidence regarding the
realization of deferred tax assets, including past operating results and future
sources of taxable income. Under the provisions of ASC 740-10, we
determined that our net deferred tax asset needed to be fully reserved given
recent earnings and industry trends.





In June
2006, the Financial Accounting Standards Board issued Interpretation No. 48
(FIN 48), Accounting for Uncertainty in Income Taxes, also included in ASC
740. The Interpretation clarifies the accounting for uncertainty in income taxes
recognized in an enterprise’s financial statements and prescribes a recognition
threshold and measurement attributes of income tax positions taken or expected
to be taken on a tax return. Under FIN 48, the impact of an uncertain tax
position taken or expected to be taken on an income tax return must be
recognized in the financial statements at the largest amount that is
more-likely-than-not to be sustained upon audit by the relevant taxing
authority. An uncertain income tax position will not be recognized in the
financial statements unless it is more likely than not of being
sustained.





Concentration
of Credit Risk


Financial
instruments that potentially subject the Company to concentrations of credit
risk consists principally of cash in banks and trade receivables.  The
Company manages this risk by maintaining all deposits in high quality financial
institutions and periodically performing evaluations of the relative credit
standing of the financial institutions that are considered in the Company’s
investment strategy. The Company grants unsecured credit to its customers during
the normal course of business and performs ongoing credit evaluations of its
customers to minimize any potential loss.







-24-





Medical International Technology, Inc.





Fair
Value of Financial Instruments


The
Company’s financial instruments consist primarily of cash and cash equivalents,
accounts receivable and accounts payable. Management believes that the carrying
values of these assets and liabilities are representative of their respective
fair values based on their short-term nature.





New
Accounting Pronouncements





In
December 2007, the Financial Accounting Standards Board issued FASB Accounting
Standards Codification 805, “Business Combinations” (ASC 805), previously
referred to as Statement of Financial Accounting Standards No. 141R
“Business Combinations.” ASC 805 will require, among other things, the expensing
of direct transaction costs, in process research and development to be
capitalized, certain contingent assets and liabilities to be recognized at fair
value and earn-out arrangements may be required to be measured at fair value
recognized each period in earnings. In addition, certain material adjustments
will be required to be made to purchase accounting entries at the initial
acquisition date and will cause revisions to previously issued financial
information in subsequent filings. ASC 805 is effective for transactions
occurring after the beginning of the first annual reporting period beginning on
or after December 15, 2008 and may have a material impact on our
consolidated financial position, results from operations and cash flows should
we enter into a material business combination after the standards effective
date.





In March
2008, the Financial Accounting Standards Board issued FASB Accounting Standards
Codification 815, “Derivatives and Hedging” (ASC 815), previously referred
to as Statement of Financial Accounting Standards No. 161, “Disclosures
about Derivative Instruments and Hedging Activities — An Amendment to
SFAS 133” (SFAS 161). SFAS 161 applies to all derivative
instruments accounted for under ASC 815 and requires entities to provide greater
transparency on how and why entities use derivative instruments, how derivative
instruments are accounted for under ASC 815, and the effect the derivative
instruments may have on the results of operations and cash flows. ASC 815 is
effective for fiscal years and interim periods beginning after November 15,
2008. Since ASC 815 only applies to disclosures it has not had a material impact
on our consolidated financial position, results from operations, and cash
flows.





In June
2009, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 167, “Amendments to FASB Interpretation
No. 46(R)” (SFAS 167). SFAS 167, addresses the effects of
eliminating the qualifying special-purpose entity (QSPE) concept from Statement
of Financial Accounting Standards No. 140, “Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities” and addresses
certain key provisions of FIN 46(R), including transparency of enterprises’
involvement with variable interest entities (VIEs). SFAS 167 is effective
for fiscal years beginning after November 15, 2009 and interim periods
within those fiscal years. We are currently assessing the implications of this
standard and evaluating the impact of adopting SFAS 167 on our consolidated
financial statements.





Note
3 –   Inventories





Inventories
at September 30, 2009 and 2008 consist of the following:





2009
            
            
            2008Raw
      materials
            
            $
            165,193
            
            
            $
            139,604Work
      in process
            
            
            42,939
            
            
            
            23,863Finished
      goods
            
            
            12,007
            
            
            
            5,992Total
            
            $
            220,139
            
            
            $
            169,459




-25-





Medical International Technology, Inc.





Note
4 –   Research and Development Costs





Research
and development costs are charged to operations when incurred. Prior to fiscal
2009, 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:





2009
            
            
            2008R&D
      Costs
            
            $
            1,981,104
            
            
            $
            1,802,857Less
      Credit
            
            
            -
            
            
            
            (3,158
            )$
            1,981,104
            
            
            $
            1,802,085





Effective
October 1, 2007, the Company entered into a Research and Development Contract
with Idée International R&D, Inc. (“Idée”), an entity owned individually by
the Company’s CEO and President.  Under the terms of the agreement,
Idée will perform specific research and development on needle-free technologies,
as defined in the agreement, from October 1, 2007 to September 30, 2009, and the
Company will pay Idée $150,000 per month.  During fiscal 2009 and
2008, $1,800,000 and $1,800,000 was charged to research and development costs
under this agreement (Note 7).





Note
5 –   Patents





As of
September 30, 2009 the Company has net patents on certain technologies
aggregating $8,387. Amortization expense for the years ended September 30, 2009
and 2008 were $1,324 and $466, respectively. During the year ended September 30,
2009, the Company capitalized patent costs on its needle-free injector of
$9,157.  Following is a detail of patents at September 30,
2009.





Gross
              Intangible
              Assets
            
            Accumulated
              Amortization
            
            Net
              Intangible
              Assets
            
            Weighted
              Average
              Life
              (Years)Patents
            
            $10,937
            
            $2,550
            
            $8,387
            
            8.5
      through 16





Note
6 –   Investment in MIT China Joint Venture





On May 6,
2009, the Company entered into a certain joint venture agreement (the “Joint
Venture Agreement”) with Jiangsu Hualan Biotechnology Ltd. (China) (“Jiangsu
Hualan”).   Pursuant to the Joint Venture Agreement, the parties
established a joint venture company, Jiangsu Hualan MIT Medical Technology (MIT
China) Ltd. (“MIT China” or the “Joint Venture”), focusing on research,
production and sales of medical equipments, import and export of medical
equipments and components products, especially Needle-Free Jet Injector
products. The total investment by the Joint Venture shall amount to $2,000,000,
and the registered capital shall amount to $1,400,000.  The Company
invested cash of $426,678 and transferred the license rights to produce and sell
the Company’s needle-free injectors products into the Joint
Venture.  The license rights were valued at $280,000 under the
agreement.  The contributions by the Company resulted in the Company
owning 49% of the registered capital of the Joint Venture.  Jiangsu
Hualan contributed cash of $714,000, and owns 51% of the registered
capital.





Under the
agreement, the Company appointed 1 member to the Board of Directors of the Joint
Venture and Jiangsu Hualan appointed 2 members to the Board of
Directors.  Profits of the Joint Venture will be paid based each
parties investment in the registered capital.





During
the period from May 6, 2009 to September 30, 2009, the Joint Venture had not
commenced operations.  The Company expects the Joint Venture to
commence operations during the Company’s 1st quarter of fiscal
2010.





The
Company accounts for its investment in MIT China in accordance with Financial
Accounting Standards Board Accounting Standards Codification 323,
“Investment — Equity Method and Joint Venture” (ASC 323), previously
referred to as Accounting Principles Board Opinion No. 18, “The Equity
Method of Accounting for Investments in Common Stock.” Accordingly, the Company
adjusts the carrying amount of its investment in MIT China to recognize its
share of earnings or losses. As of September 30, 2009, the Company’s recorded
investment in the MIT China was $426,678,







-26-





Medical International Technology, Inc.





Note
7 –   Related Party Transactions





Related
party balances consist of the following at September 30, 2009 and
2008:





2009
            
            
            2008Payable
      to Idee International R&D, Inc.
            
            $
            3,332,463
            
            
            $
            1,480,378Payable
      to 2849-674 Canada, Inc.
            
            
            
            
            
            
            34,637Payable
      to 9117-2221 Quebec Inc.
            
            
            
            
            
            
            9,306$
            3,332,463
            
            
            $
            1,524,321





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.





During
fiscal 2008 and effective October 1, 2007, the Company entered into a Research
and Development Contract with Idee International R&D, Inc. (“Idee”), an
entity owned individually by the Company’s CEO and President.  Under
the terms of the agreement, Idee will perform specific research and development
on needle-free technologies, as defined in the agreement, from October 1, 2007
to September 30, 2009, and the Company will pay Idee $150,000 per
month.  The monthly charge is recorded as research and development
costs on the accompanying consolidated income statement.  During the
year ended September 30, 2009, the Company paid Idee $196,108 under this
agreement.  The Company has accrued a liability to Idee of $3,332,463
under this contract.





During
May 2009, the Company issued Idee International R&D, Inc 250,000 common
shares for services rendered aggregating $25,000.





During
the year ended September 30, 2009, the Company issued 10,000,000 common shares
to 2849-674 Canada, Inc. and 10,000,000 common shares to Idée International
R&D, Inc. for debt reductions of $20,000.





Note 8–   Income
Taxes





Deferred
income taxes are provided for the tax effects of temporary differences in the
reporting of income for financial statement and income tax reporting purposes
and arise principally from net operating loss carry-forwards, accrued expenses
and basis differences in fixed assets.





The
Company’s effective tax rate differs from the Federal statutory rates due to the
valuation allowance recorded for the unused net operating loss carry-forwards
deferred tax asset. The company has operating losses aggregating approximately
$11.6 million, which can be used to reduce future taxable income. Pursuant to
ASC 740, we must consider all positive and negative evidence regarding the
realization of deferred tax assets, including past operating results and future
sources of taxable income. Under the provisions of ASC 740, we determined that
the entire net deferred tax asset needed to be reserved given recent losses. The
total valuation allowance at September 30, 2008 and 2009 was
$9.3 million and $11.6 million, respectively.
 
 We have
adopted the provisions of FIN 48, now under ASC 740. Under ASC 740, the
impact of an uncertain tax position taken or expected to be taken on an income
tax return must be recognized in the financial statements at the largest amount
that is more-likely-than-not to be sustained upon audit by the relevant taxing
authority. An uncertain income tax position will not be recognized in the
financial statements unless it is more likely than not of being
sustained.








-27-





Medical International Technology, Inc.





Note
9 –   Stockholders' Equity (Deficit)





Issuance
of Common Stock





Year
Ended September 30, 2009





For the
year ended September 30, 2009, the Company issued an aggregate of 32,029,132
shares of its common stock for consulting and legal services, debts and private
placements, and is more fully described below. During the1st quarter ended
December 31, 2008, the Company issued 20,000,000 shares of common stock to two
related party entities for payment of outstanding payables of $20,000 (Note
7).  In addition, the Company issued 2,000,000 shares of common stock
to the Company’s Chief Executive Officer and 2,000,000 shares to the Company’s
Chief Financial Officer for services rendered to the Company.  The
value of those services was $4,000.





The
Company did not issue any common shares during the second quarter ended March
31, 2009





During
the third quarter ended June 30, 2009, the Company issued 6,285,174 shares of
common stock in connection with private placements for additional capital of
$700,000 (SB 700,000), of which 4,500,000 shares were issued at $0.10 per share
for total proceeds of $450,000 and 1,785,174 shares were issued at $.014 per
share for total proceeds of $250,000  In connection with the private
placements, the Company issued warrants to purchase an aggregate of 2,500,000
common shares at $0.50 per share.  The warrants expire on April 15,
2010.





The
company also issue 321,700 shares for services rendered, of which 250,000 shares
were issued to a related party (Note 7).  The aggregate value of these
services was $250,000.





During
the fourth quarter ended September 30, 2009, the Company issued 1,421,720 shares
of its common stock for consulting and legal services of $142,172.





Year
Ended September 30, 2008





There was
no common stock issuances during the year ended September 30, 2008.





Preferred
Stock





As of
September 30, 2009, 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





As of
September 30, 2009 and 2008, there are no options outstanding to purchase shares
of the Company’s common stock.





Outstanding
Warrants





During
the year ended September 30, 2009, the Company issued warrants to purchase an
aggregate of 2,500,000 common shares at an exercise price of $0.50 per
share.  The warrants were issued in connection with private placements
completed during 2009.  The warrants expire on April 15,
2010.





During
the year ended September 30, 2008, 4,224,000 Series a Stock Purchase Warrants
and 3,224,000 Series B Stock Purchase warrants expired.  The Stock
Purchase Warrants had been issued in connection with private placements
completed in fiscal 2006.







-28-





Medical International Technology, Inc.





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, 2009
was approximately $33,300.





Future
minimum lease commitments pertaining to the lease expire as follow:





Year endedSeptember
      30, 2010
            
            
            2,775$
            36,075





Note
11– Deferred Income





Deferred
income consists of the following at September 30, 2009 and 2008:





2009
            
            
            2008Deposits
      from customers and distributors
            
            $
            23,896
            
            
            $
            53,782Nonrefundable
      Distribution Rights Deposit
            
            
            1,202,500
            
            
            
            1,300,000Total
      unearned income
            
            $
            1,226,396
            
            
            $
            1,353,782





On
November 1, 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 was part of an agreement under negotiation, which
was finalized in January 2009The Company recorded the deposit as unearned income
until the final agreement was reached, at which time the deposit will be earned
as income over the estimated contractual life of the final agreement of 10
years.  During the year ended September 30, 2009, the company earned
$97,500 under this agreement.





Note
12 –Notes Payable





Long-term
debt consists of the following at September 30, 2009 and 2008:





2009
            
            
            2008Note
      payable to a bank, bearing interest at prime plus 2.5%,secured
      by equipment, due July 21, 2010
            
            $
            6014
            
            
            $
            15,097-
            
            
            
            -Total
      long-term debt
            
            $
            6,014
            
            
            $
            15,097Current
      portion of long-term debt
            
            
            (6,014
            )
            
            
            (8,237
            )Total
      long-term debt, net
            
            $
            -
            
            
            $
            6,860Schedule
      maturities of long-term debt are as follows:Year
      ended September 30, 2010
            
            $
            6,014
            
            
            
            8,237Year
      ended September 30, 2011
            
            
            -
            
            
            
            6,860Total
            
            $
            6,014
            
            
            $
            15,097








-29-





Medical International Technology, Inc.





Note
13 –Contingencies





Legal
Proceedings





From time
to time, the Company is named in legal actions in the normal course of business.
In the opinion of management, the outcome of these matters, if any, will not
have a material impact on the financial condition or results of operations of
the Company.





Item
9. Changes In / Disagreements with Accountants on Accounting/Financial
Disclosure





None.





Item
9A(T). Controls and Procedures





Evaluation
of Disclosure Controls and Procedures





Pursuant
to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”),
the Company carried out an evaluation, with the participation of the Company’s
management, including the Company’s Chief Executive Officer (“CEO”) and Chief
Financial Officer (“CFO”) (the Company’s principal financial and accounting
officer), of the effectiveness of the Company’s disclosure controls and
procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the
end of the period covered by this report. Based upon that evaluation, the
Company’s CEO and CFO concluded that the Company’s disclosure controls and
procedures are effective to ensure that information required to be disclosed by
the Company in the reports that the Company files or submits under the Exchange
Act, is recorded, processed, summarized and reported, within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated
and communicated to the Company’s management, including the Company’s CEO and
CFO, as appropriate, to allow timely decisions regarding required
disclosure.





Management's
Annual Report on Internal Control Over Financial Reporting.





The
management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting for the
Company.  Our internal control system was designed to, in general,
provide reasonable assurance to the Company’s management and board regarding the
preparation and fair presentation of published financial statements, but because
of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements.  Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.





Our
management assessed the effectiveness of the Company’s internal control over
financial reporting as of December 31, 2008.  The framework used by
management in making that assessment was the criteria set forth in the document
entitled “ Internal Control – Integrated Framework” issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on that assessment,
our management has determined that as of September 30, 2009, the Company’s
internal control over financial reporting was effective for the purposes for
which it is intended.





This
annual report does not include an attestation report of the Company’s registered
public accounting firm regarding internal control over financial reporting.
Management's report was not subject to attestation by the Company's registered
public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission that permit the Company to provide only management's report
in this annual report.





Changes
in Internal Control over Financial Reporting





No change
in our system of internal control over financial reporting occurred during the
period covered by this report, fourth quarter of the fiscal year ended September
30, 2008 that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.




-30-





Medical International Technology, Inc.




Item
10. Directors, Executive Officers, Promoters and Control Persons





The
directors and officers are as follows:





NAME                                   POSITION
(S)                                       TENURE





Karim
Menassa                    Chairman,
President,
Director            
June 27, 2002 to present





Mr. Karim Menassa, age
58, 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.





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,





Board
of Director Meetings and Committees





The Board
of Directors held no meetings during the year ended September 30, 2009, but
conducted board activities through unanimous consent board resolutions in lieu
of meetings.






-31-





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, 2009 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.





We will
provide to any shareholder, 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.





Item
11. Executive Compensation





Compensation
Summary





The
following executives of the Company received compensation in the amounts set
forth in the chart below for the fiscal years ended September 30, 2009 and 2008.
No other item of compensation was paid to any officer or director of the Company
other than reimbursement of expenses.





SUMMARY
COMPENSATION TABLE





Name
      and Principal Position
            Year
            
            Salary
              ($)
            
            
            Bonus
              ($)
            
            
            Stock
      Awards
              ($)
            
            
            Option
      Awards
              ($)
            
            
            Non-Equity
      Incentive Plan Compensation ($)
            
            
            Non-Qualified
      Deferred Compensation Earnings
              ($)
            
            
            All
      Other Compensation
              ($)
            
            
            Totals
              ($)Karim
      Menassa, CEO, President, Interim CFO and Chairman
            2009
            
            $         
      0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            $         0of
      the Board
            2008
            
            $
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            $
            0Michel
      Bayouk, Former CFO (1)
            2009
            
            $
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            $
            02008
            
            $
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            
            0
            
            
            $
            0





-32-





Medical International Technology, Inc.





(1) On
May 16, 2009, Mr. Michel Bayouk tendered his resignation from the Company as a
Board member, Secretary, Chief Financial Officer and Principal Accounting
Officer due to health related reasons. There were no disagreements between Mr.
Bayouk and the Company or any officer or director of the Company.





As of
September 30, 2009, 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.







-33-





Medical International Technology, Inc.





Employment
Agreements





No formal
employment agreements exist with any officer or employee.





Long-Term Incentive
Plan





The
Company has a 2009 stock incentive plan under which directors are authorized to
grant incentive stock options, to a maximum of five million (5,000,000) 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.





Item 12. 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 November 16,
2009:





Name
      and Address
            Amount
      and NatureOf
      Beneficial Holder
            of
      Beneficial Ownership
            
            Percentage
      (1)Karim
      Menassa (2)
            25,464,210
      shares
            
            
            43.10%President,
      Director1872
      Beaulac, Ville Saint-LaurentMontreal,
      Quebec, Canada HR4 2E7Michel
      Bayouk (3)
            4,522,560
      shares
            
            
            7.70%1872
      Beaulac, Ville Saint-LaurentMontreal,
      Quebec, Canada HR4 2E9Sun
      Ying
            3,571,428
            
            
            6.04%13
      Building 6 Renmin University#175
      Haidian Road, Haidian Dist.Beijing,
      ChinaOfficers and Directors as a
      Group
            25,464,201shares
            
            
            43.10%





(1) based
on 59,087,795 shares issued and outstanding as of November 16,
2009.
 
 (2) Karim
Menassa directly holds 2,787,422 common shares of the Company, indirectly holds
21,466 shares through Paulette Menassa, his wife, 11,280,313 shares through
2849674 Canada, Inc., 10,000,000 shares through Idee R&D International,
Inc., and 1,375,000 shares through 9162-9725 Quebec Inc., which are all
controlled by Karim Menassa.
 
 (3)
Michel Bayouk directly owns 3,516,047 common shares of the Company, indirectly
owns 373,400 shares through 165029 Canada, Inc., and 413,113 shares through
Dynagroup Services, Inc., which are both controlled by Michel Bayouk, and
250,000 shares through 9162-9725 Quebec Inc., which Michel has 10% interest
in.
 
 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.





-34-





Medical International Technology, Inc.




Item 13. Certain Relationships and Related
Transactions





Related
party balances consist of the following at September 30, 2009 and
2008:





2009
            
            
            2008Payable
      to Idee International R&D, Inc.
            
            $
            3,332,463
            
            
            $
            1,480,378Payable
      to 2849-674 Canada, Inc.
            
            
            
            
            
            
            34,637Payable
      to 9117-2221 Quebec Inc.
            
            
            
            
            
            
            9,306$
            3,332,463
            
            
            $
            1,524,321





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.





During
fiscal 2008 and effective October 1, 2007, the Company entered into a Research
and Development Contract with Idee International R&D, Inc. (“Idee”), an
entity owned individually by the Company’s CEO and President.  Under
the terms of the agreement, Idee will perform specific research and development
on needle-free technologies, as defined in the agreement, from October 1, 2007
to September 30, 2009, and the Company will pay Idee $150,000 per
month.  The monthly charge is recorded as research and development
costs on the accompanying consolidated income statement.  During the
year ended September 30, 2009, the Company paid Idee $196,108 under this
agreement.  The Company has accrued a liability to Idee of $3,332,463
under this contract.





During
May 2009, the Company issued Idee International R&D, Inc 250,000 common
shares for services rendered aggregating $25,000.





During
the year ended September 30, 2009, the Company issued 10,000,000 common shares
to 2849-674 Canada, Inc. and 10,000,000 common shares to Idée International
R&D, Inc. for debt reductions of $20,000.








-35-





Medical International Technology, Inc.





Item
14. 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-Q 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, 2009 and 2008 were: $22,500 and $22,500
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, 2009
and 2008 were: $0 and $0, respectively.





The
nature of the services comprising the fees herein disclosed is: 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, 2009 and 2008 were: $0 and$0, respectively.





The
nature of the services comprising the fees herein disclosed is: 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, 2009 and 2008.





(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-Q 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, 2009.
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





None.





Item 15. Exhibits





31.1
            Certifications
      of the Chief Executive Officer and Chief Financial Officer required by
      Rule 13A-14 or Rule 15D-14 Under the Securities Exchange Act of 1934, As
      Amended





32.1
            Certification
      of the Chief Executive Officer and Chief Financial Officer Pursuant to 18
      U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002





-36-


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.Date:
      December 23, 2009
            By:
            /s/ Karim
      MenassaKarim
      MenassaPresident
      and Principal Executive Officer
              and
      interim Secretary and Principal Accounting Officer




















-37-