UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

(Mark One)


        X              QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
---------------
                       SECURITIES EXCHANGE ACT OF 1934

                       For quarterly period ended June 30, 1998

---------              TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

                       For the transition period from _____ to _______

Commission file number:  0-28790


                           MEDCARE TECHNOLOGIES, INC.
                           --------------------------
             (exact name of registrant as specified in its charter)



DELAWARE                                            87-0429962 B
--------                                            ------------
(State or other                                     (IRS Employer
jurisdiction of                                     Identification No.)
incorporation  or
organization)

Suite 1210 - 1515 West 22nd Street, Oak Brook, Illinois       605232
-------------------------------------------------------       ------
(Address of principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code:           (630) 472-5300
                                                              --------------

Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required 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 for the
past 90 days.               Yes   X      No


The number of shares of the Registrant's  Common Stock,  $0.001 par value, as of
June 30th, 1998: 7,250,370.



<PAGE>



                           MEDCARE TECHNOLOGIES, INC.
                     FORM 10-Q, QUARTER ENDED JUNE 30, 1998

INDEX

PART I            FINANCIAL INFORMATION

Item 1            Financial Statements

Consolidated Balance Sheet at June 30, 1998 . . . . . . . . . . . . . F-1 - F-2

Consolidated Statement of Operations For The Quarter Ended
    June 30, 1998. . . . . . . . . . . . . . . . . . . . . . . . . .  F-3

Consolidated Statement of Cash Flows For The Quarter Ended
    June 30, 1998. . . . . . . .  . . . . . . . . . . . . . . . . .   F-4 - F-5

Notes to Interim Consolidated Financial Statements . . . . . . . . .  F- 6

All  schedules  are omitted  because  they are not  applicable  or the  required
information is shown in the financial statements or notes thereto.

Item 2    Managment's Discussion and Analysis or
             Plan of Operations . . . . . . . . . . . . . . . . . . . 11

PART II   OTHER INFORMATION

Item 1    Legal Proceedings . . . . . . . . . . . . . . . . . . . . . 12

Item 2    Changes in Securities . . . . . . . . . . . . . . . . . . . 12

Item 3    Defaults Upon Senior Securities . . . . . . . . . . . . . . 12

Item 4    Submission of Matters to a Vote of Security Holders . . . . 13

Item 5    Other Information . . . . . . . . . . . . . . . . . . . . . 13

Item 6    Exhibits and Reports on Form 8-K  . . . . . . . . . . . . . 13

          Signature Page . . . . . . . . . . . . . . . . . . . . . .  13



<PAGE>



Item 1            Financial Statements

                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                       INTERIM CONSOLIDATED BALANCE SHEET
                       JUNE 30, 1998 AND DECEMBER 31, 1997

<TABLE>
                                     ASSETS
<CAPTION>
                                                          JUNE 30, 1998         DECEMBER 31, 1997
<S>                                                       <C>                   <C>
Current Assets

   Cash                                                   $     3,791,743       $     3,440,791

   Accounts Receivable                                            114,932                47,286

   Prepaid Expenses                                                     0                62,313
                                                                        -                ------

Total Current Assets                                            3,906,675             3,550,390

Property and Equipment, Net                                        60,473                33,526

Other Assets

   Intangible Assets-The MedCare Program, Net of
   Accumulated Amortization of $34 and $0 for June 30,
   1998 and December 31, 1997                                         966                 1,000

   Security Deposits                                                2,250                 1,500
                                                                    -----                 -----

Total Other Assets                                                  3,216                 2,500
                                                                    -----                 -----

Total  Assets                                             $     3,970,364       $     3,586,416
                                                                =========             =========

</TABLE>

                                      F-1
<PAGE>

                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                       INTERIM CONSOLIDATED BALANCE SHEET
                       JUNE 30, 1998 AND DECEMBER 31, 1997


<PAGE>



<TABLE>
                      LIABILITIES AND STOCKHOLDERS' EQUITY
<CAPTION>
                                                           JUNE 30, 1998        DECEMBER 31, 1997
<S>                                                        <C>                  <C>

Current Liabilities

   Accounts Payable and Other Accrued Liabilities          $      46,414        $         15,796

   Notes Payable, Related Party                                        0                   1,000
                                                                       -                   -----

Total Current Liabilities                                         46,414                  16,796

Commitments and Contingencies                                          0                       0

Stockholders' Equity

   Preferred Stock: $.25 Par Value, Authorized 1,000,000;
   Issued and Outstanding, 159 and 165 Convertible Series A
   Shares at June 30, 1998 and December 31, 1997                      39                      41

   Common Stock: $0.001 Par Value,  Authorized
   100,000,000; Issued and Outstanding, 7,250,023 Shares
   at June 30, 1998 and 6,992,185 at December 31, 1997             7,250                   6,992

   Additional Paid In Capital                                  7,420,969               6,284,505

   Loss Accumulated During The Development Stage              (3,504,308)             (2,721,918)
                                                              -----------             ----------

Total Stockholders' Equity                                     3,923,950               3,569,620
                                                               ---------               ---------

Total Liabilities and Stockholders' Equity                 $   3,970,364        $      3,586,416
                                                               =========               =========
</TABLE>

                                      F-2

<PAGE>
                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
             FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997, AND
             FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 1998 AND 1997



<PAGE>



<TABLE>
<CAPTION>
                                             For the Three       For the Three     For the Six      For the Six
                                             Months Period       Months Period     Months Period    Months Period
                                             Ended June          Ended June        Ended June       Ended June
                                             30, 1998            30, 1997          30, 1998         30, 1997
                                             --------            --------          --------         --------
<S>                                          <C>                 <C>               <C>              <C>

Revenues                                     $     151,815       $   10,573        $   378,823      $   47,809

Expenses

   General and Administrative                      490,629          333,513          1,256,341         531,241
                                                   -------          -------          ---------         -------

Operating Loss                                    (338,814)        (322,940)          (877,518)       (483,432)

Other Income (Expense)

   Interest Income                                  52,459           11,029             95,128          12,957
                                                    ------           ------             ------          ------


Net Loss Available to Common
  Stockholders                               $    (286,355)      $ (311,911)       $  (782,390)     $ (470,475)

Earnings Per Common Share and Common
  Share Equivalents                          $       (0.04)      $     (.05)       $     (0.10)     $     (.07)

Weighted Number of Common Shares
  Outstanding                                    7,899,324        6,238,220          7,889,324       6,721,071
</TABLE>

                                      F-3
<PAGE>

                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
             FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 1998 AND 1997

<TABLE>
<CAPTION>
                                                                          For the Six         For the Six
                                                                          Months Period       Months Period
                                                                          Ended June          Ended June
                                                                          30, 1998            30, 1997


<PAGE>



                                                                          --------            --------
<S>                                                                       <C>                 <C>

Cash Flows from Operating Activities

   Net Loss                                                               $  (782,390)       $   (470,475)

Adjustments to Reconcile Net Loss to Net Cash Provided by Operating
  Activities

     Depreciation and Amortization                                              7,902                 861

     Changes in Assets and Liabilities

       (Increase) Decrease in Accounts Receivable                             (67,646)            (52,789)

       (Increase) Decrease in Prepaid Expenses                                 62,313               1,513

       (Increase) Decrease in Organizational Costs                                  0                  64

       (Increase) Decrease in Security Deposits                                  (750)                  0

        Increase (Decrease) in Accounts Payable                                30,618              26,192
                                                                               ------              ------

        Total Adjustments                                                      32,437             (24,159)
                                                                               ------             --------

Net Cash Used by Operating Activities                                        (749,953)           (494,634)

Cash Flows from Investing Activities

   Purchase of Property and Equipment                                         (34,815)                  0
                                                                              --------                  -

Net Cash Flows from Investing Activities                                      (34,815)                  0
                                                                              -------                   -
Cash Flows from Financing Activities

   Proceeds from Sale of Common Stock                                       1,136,720           1,210,250

   Net Reduction in Office & Med Equipment                                          0                 839

   Advances (Repayments) Notes Payable                                              0              12,500

   Advances (Repayements) To Officers                                          (1,000)                  0
                                                                               ------                   -


<PAGE>



Net Cash Provided by Financing Activities                                   1,135,720           1,200,454
                                                                            ---------           ---------

Increase (decrease) in Cash and Cash Equivalents                              350,952             705,820

</TABLE>
                                      F-4
<PAGE>
                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
             FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 1998 AND 1997

<TABLE>
<CAPTION>
                                                                          For the Six         For the Six
                                                                          Months Period       Months Period
                                                                          Ended June          Ended June
                                                                          30, 1998            30, 1997
                                                                          --------            --------
<S>                                                                       <C>                 <C>



Cash and Cash Equivalents, Beginning of Year                                3,440,791             220,562
                                                                            ---------             -------

Cash and Cash Equivalents, End of Year                                    $ 3,791,743         $   926,382
                                                                          ===========         ===========

Supplemental Information:
Cash paid for:

  Interest                                                                $         0         $         0
                                                                                    =                   =

  Income taxes                                                            $         0         $         0
                                                                                    =                   =

Supplemental Non Cash Financing Transactions

8,990 Common Shares Were Issued in Exchange for Warrants Exercised
 Duirng the Quarter                                                       $         9         $         0
                                                                                    =                   =

6,000 Common Shares Were Issued for Services During the Quarter           $    34,500         $
0
                                                                               ======                   =


<PAGE>



1194 Common Shares Were Issue to Correct a Prior Year Error               $    7,500          $         0
                                                                               =====                    =
</TABLE>

                                      F-5
<PAGE>


                           MEDCARE TECHNOLOGIES, INC.
               NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 1998

1. Statement of Information Furnished

The accompanying  unaudited interim consolidated  financial statements have been
prepared  in  accordance  with  Form  10Q  instructions  and in the  opinion  of
management  contains  all  adjustments  (consisting  of  only  normal  recurring
accruals)  necessary  to present  fairly the  financial  position as of June 30,
1998,  the results of operations for the three months period ended June 30, 1998
and for the six months  period  ended June 30,  1998 and the  statement  of cash
flows for the six months  period  ended June 30, 1998.  These  results have been
determined  on  the  basis  of  generally  accepted  accounting  principles  and
practices and applied  consistently  with those used in the  preparation  of the
CompanyAEs 1997 Annual Report on Form 10-K.

Certain information and footnote  disclosures normally included in the financial
statements presented in accordance with generally accepted accounting principles
have  been  condensed  or  omitted.   It  is  suggested  that  the  accompanying
consolidated  financial  statements  be read in  conjunction  with the financial
statements and notes there to  incorporated  by reference in the CompanyAEs 1997
Annual Report on Form 10-K.
                                      F-6

<PAGE>


Item 2    Management's Discussion and Analysis of Financial Condition and 
          Results of Operations

When used in this discussion, the words "believes", "anticipates", "expects" and
similar expressions are intended to identify  forward-looking  statements.  Such
statements are subject to certain risks and  uncertainties,  which would,  could
cause actual  results to differ  materially  from those  projected.  Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date  hereof.  The  Company  undertakes  no  obligation  to
republish revised forward- looking statements to reflect events or circumstances
after the date  hereof or to reflect the  occurrence  of  unanticipated  events.
Readers are also urged to carefully review and consider the various  disclosures
made by the Company which attempt to advise interested parties of the factors

                                       11
<PAGE>



which affect the Company's  business,  in this report,  as well as the Company's
periodic  reports  on Forms  10-K,  10Q and 8-K filed  with the  Securities  and
Exchange Commission.

Overview
--------

The Company  has  developed  The  MedCare  Program,  a  non-surgical,  non-drug,
non-invasive and cost effective treatment program for urinary  incontinence,  as
well as pelvic pain, chronic  constipation,  fecal incontinence,  and disordered
defecation.  The MedCare program is a multi- modality program based primarily on
behavioural techniques for treatment. These techniques include biofeedback using
electromyography  (EMG),  pelvic floor muscle  exercises,  and bladder and bowel
re-training.  The program is designed to  activate  and  strengthen  the various
sensory-response mechanisms that maintain bladder and bowel control. The therapy
is provided through computerized instrumental  electromyography  biofeedback and
is based on  operant  conditioning  strategies  whereby  specific  physiological
responses are progressively shaped, strengthened, and coordinated.

The MedCare Program is available through the practices of physicians (urologist,
urogynecologist,  gastroenterologist,  and/or colon rectal surgeon), either in a
private  office,  clinic,  or a hospital  setting.  As of June 30th,  1998,  the
Company  had 19 MedCare  Program  sites  established,  and was in the process of
opening an additional 16 MedCare  Program sites in various parts of the country.
In order to prepare for MedCare's expansion phase the company  transitioned away
from Solo Physician  Practices to Multi  Physician  Practices,  which  typically
offers a larger patient base,  greater referral network and greater Managed Care
influence.

The Company  plans to devote the majority of its resources to  establishing  new
MedCare  Program sites,  in operating  existing  centers,  and in developing new
business  models for the  introduction  of the MedCare Program into new markets,
such as nursing homes and other institutions, and possibly foreign countries.

Results of Operations
---------------------

The Company had  revenues of $151,815  for the  three-month  period  ending June
30th,  1998  compared to $10,573 for the  three-month  period  ending June 30th,
1997.  Since the Company  transitioned  from Solo  Physician  Practices to Multi
Physician  Practice  offices,  17 of the 19 centers  operating,  as of June 30th
1998,  had just recently  opened in 1998.  Due to the early stage nature of each
office the majority of the Company's  first quarter  revenues were  generated by
the early established sites. Each site generates revenue through patient visits,
which come from referrals and direct to consumer education.  The Company expects
modest  revenues  from all  newly  opened  sites  during  the first 12 months of
operations.  To date, the Company has not relied on any revenues for funding its
activities and it does not expect to receive significant revenues from operation
in the immediate  future.  During the next several years, the Company expects to
derive the majority of its  potential  revenues  from the opening of new MedCare
Program centers in the United States, and possible abroad.

For the  three-month  period ending June 30th,  1998, the Company's  general and
administrative  expenses  increased  to $490,629  compared  to $333,513  for the
corresponding period in 1997. The 1998 amount represents an increase of 147% due
primarily to the hiring of  additional  management  and nursing  staff,  greater
advertising and marketing expenses, increased expenses related to financial


<PAGE>



public relations and building processes and protocols to support future growth.

The Company's net loss was $338,814,  or $0.04 per share,  for the first quarter
of  1998  compared  to a net  loss of  $322,940  or  $0.05  per  share,  for the
corresponding period in 1997. This increase was primarily due to the increase in
general and administrative costs described above.

Liquidity and Capital Resources
-------------------------------

As of June 30th,  1998, the Company's  cash balance was  $3,791,743  compared to
$3,440,791  as of June 30th,  1997.  The Company  has  financed  its  operations
primarily through the exercise of Stock Options and Share Purchase Warrants from
a previous private placement.

The Company's future funding requirements will depend on numerous factors. These
factors  include the  Company's  ability to  establish  and  profitably  operate
current and future MedCare Program locations,  recruiting and training qualified
management and clinical personnel, competing against any potential technological
advances in the treatment of urinary  incontinence and other  afflictions of the
pelvic floor area,  and the  Company's  ability to compete  against other better
capitalized  corporations who offer alternative or similar treatment options for
urinary incontinence and other afflictions of the pelvic floor area.

Due to the "start up" nature of the Company's  business,  the Company expects to
incur  losses as it expands its  business.  While the Company has enough cash to
fund its early stage expansion plans, the Company may choose to raise additional
funds through  private or public equity  investment in order to expand the range
and  scope of its  business  operations.  Even if the  Company  does not have an
immediate  need for  additional  cash,  it may seek access to the public  equity
markets if and when  conditions are  favorable.  There is no assurance that such
additional  funds will be available for the Company to finance its operations on
acceptable terms, if at all.


                          PART II -- OTHER INFORMATION

Item 1    Legal Proceedings
------    -----------------

None

Item 2    Changes in Securities
------    ---------------------

         As detailed in the  financial  statements,  the  Company  issued  6,000
common  shares in  exchange  for  services,  issued  8,990  common  shares via a
cashless  exercise  option for the exercise of share  purchase  warrants  from a
previous private placement, issued 8,000 common shares for the exercise of stock
options  ranging  in prices  from $3.00 to $4.50 per share,  and  converted  165
Series A Preferred Warrants into 165 Series A Preferred Shares. The total common
shares  issued  during the three  month  period  ending June 30, 1998 was 22,990
shares.

Item 3    Defaults Upon Senior Securities
------    -------------------------------

None


                                       12
<PAGE>

Item 4    Submission of Matters to a Vote of Security Holders
------    ---------------------------------------------------

         The Company's  Annual Meeting of Shareholders was held on June 1, 1998.
At this meeting,  the  shareholders  voted to adopt the Company's  1998 and 1999
Stock Option Plans for 500,000 and 200,000 shares of common stock, respectively.

Item 6    Other Information
------    -----------------

None

Item 6    Exhibits and Reports on Form 8-K
------    --------------------------------

None

Signature Page
--------------

Pursuant to the  requirements of section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                                     MEDCARE TECHNOLOGIES, INC.


                                                     /s/ Jeffrey S. Aronin
                                                     ---------------------
                                                     Jeffrey S. Aronin
                                                     President

Dated: August 14, 1998

                                       13
<PAGE>