1


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


                                   FORM 10-QSB

(Mark One)


      X      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
-------

               SECURITIES EXCHANGE ACT OF 1934

               For quarterly period ended March 31, 2001

               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 jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

Suite 216 - 1628 West 1st Avenue, Vancouver, BC,              V6J 1G1
------------------------------------------------              -------
(Address of principal executive offices)

Registrant's telephone number, including area code:           (604) 659-5005

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
requirements for the past 90 days. Yes X No ----

The number of shares of the Registrant's  Common Stock,  $0.001 par value, as of
May 14, 2001: 15,364,566.

<PAGE>

                           MEDCARE TECHNOLOGIES, INC.
                    FORM 10-QSB, QUARTER ENDED MARCH 31, 2001

<TABLE>
INDEX
<CAPTION>

PART I    FINANCIAL INFORMATION

<S>                                                                                       <C>
Item 1    Financial Statements
Consolidated Balance Sheet as of  March 31, 2001                                          3

Consolidated Statement of Operations for the Quarter Ended March 31, 2001 and 2000        4

Consolidated Statement of Cash Flows for the Quarter Ended March 31, 2001 and 2000        5

Notes to Interim Financial Statements                                                     7

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


Item 2  Management's Discussion and Analysis                                              8

PART II   OTHER INFORMATION

Item 1 Legal Proceedings                                                                  9

Item 2 Changes in Securities                                                              9

Item 3 Defaults Upon Senior Securities                                                    9

Item 4 Submission of Matters to a Vote of Security Holders                                9

Item 5 Other Information                                                                  9

Item 6 Exhibits and Reports on Form 8-K                                                   10

Financial Data Table and Signatures                                                       10

</TABLE>

<PAGE>


Item 1    Financial Statements


                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                       INTERIM CONSOLIDATED BALANCE SHEET
                      MARCH 31, 2001 AND DECEMBER 31, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>
ASSETS                                                                       March 31,2001        Dec.31, 2000
                                                                             -------------        ------------
<S>                                                                          <C>                  <C>
Current Assets
   Cash                                                                                $97,059            $ 34,856
   Accounts  Receivable, Net of allowance of $0 and $82,000                                  0              17,343
   Prepaid Expenses                                                                      8,346               8,346
   Stock Subscription Receivable                                                             0             101,329

Total Current Assets                                                                  $105,405            $161,874

Property and Equipment, Net (Note 2)                                                   153,428             153,428


Total  Assets                                                                        $258,833            $315,302

LIABILITIES AND  STOCKHOLDERS' EQUITY
Current Liabilities
   Accounts Payable                                                                  $ 153,961           $ 139,798
   Capital Lease Obligation, Current Portion

                                                                                        84,550              84,550

Total Current Liabilities                                                             $238,511                   $
                                                                                                           224,348

Long-Term Liabilities
    Capital Lease Obligation, Noncurrent Portion                                        79,071              79,071

Total Liabilities                                                                    $ 317,582            $303,419

Stockholders' Equity
   Preferred Stock (Authorized 1,000,000 shares):                                   $1,043,444          $1,029,578
Convertible Series B, $0.25 Par Value; Issued and Outstanding, 81.5 and
81.5 respectively, at redemption value
   Common Stock: $0.001 Par Value; Authorized Shares,
100,000,000; Issued and Outstanding, 15,364,566, 11,564,566 at March 31,
2001 and December 31, 2000, respectively
                                                                                        15,365              11,565
   Warrants                                                                            117,830             117,830
   Additional Paid In Capital                                                       12,331,428          12,160,423
   Accumulated Deficit                                                            (13,566,816)        (13,307,513)

Total Stockholders' Equity                                                          $ (58,749)            $ 11,883


Total Liabilities and Stockholders' Equity                                           $258,833            $315,320

</TABLE>

                  See notes to condensed financial statements.

<PAGE>

                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                           For The Three Months   For The Three Months
                                           Ended March 31, 2001   Ended March 31, 2000
                                           --------------------   --------------------
<S>                                        <C>                    <C>
Revenues                                              $  24,560               $ 240,912

General and Administrative                              284,978               1,180,624
Operating Loss                                       $ (260,418)              $(939,712)
Other Income
   Interest Income                                        1,115                  37,890

Net Income (Loss)                                    $ (259,303)             $ (901,822)

Less:Preferred Stock Deemed Dividends                   (13,866)
                                                                                (49,363)
Net Loss Available to Common                         $ (273,169)              $(951,185)
Shareholders
Basic Loss Per Common Share                          $    (0.02)              $  (0.095)

Basic Weighted Average Common Shares                 13,364,566               9,975,152
Outstanding

</TABLE>

                  See Notes to condensed financial statements.

<PAGE>


                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                          Three Months
                                                                          Ended March 31,     Three Months Ended
                                                                          2001                March 31, 2000
                                                                          ----                --------
<S>                                                                       <C>                 <C>
Cash Flows From Operating Activities
   Net Loss                                                                $  (259,303)        $   (901,822)
   Adjustments to Reconcile Net Loss to Net Cash
Used
   By Operating Activities
   Depreciation                                                                      0               21,413
   Changes in Assets and Liabilities
      (Increase) Decrease in Accounts Receivable                                17,343               36,472
      (Increase) Decrease in Prepaid Expenses                                        0             (65,946)
      (Increase) Decrease in Stock subscription Receivable                     101,329
       Increase (Decrease) in Accounts Payable                                  14,163              132,124
      Asset Write-Off                                                                0               33,351
   Total Adjustments                                                           132,835              157,414
Net Cash Used By Operating Activities                                         (126,468)            (744,408)

Cash Flows From Investing Activities
   Purchase of Property and Equipment                                                0              (17,306)

Net Cash Flows Used In Investing Activities                                          0              (17,306)

Cash Flows From Financing Activities
   Proceed From Sales of Common Stock                                          188,671                    0

Net Cash Provided By Financing Activities                                      188,671                    0

Increase (Decrease) in Cash and Cash Equivalents                                62,203             (761,714)
Cash and Cash Equivalents, Beginning of Year                                    34,856            1,905,478
Cash and Cash Equivalents, End of Year                                      $   97,059           $ 1,728,869

</TABLE>

                See notes to condensed to financial statements.

<PAGE>

                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                      Three Months Ended   Three Months Ended
                                                                      March 31, 2001       March 31, 2000
                                                                      --------------       --------------
<S>                                                                   <C>                  <C>
Supplemental Information
      Preferred Stock Deemed Dividends                                 $   13,866             $   49,363
      Interest                                                         $        0             $        0
      Income Taxes                                                     $        0             $        0

</TABLE>

                  See notes to condensed financial statements.

<PAGE>

                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                      NOTES TO INTERIM FINANCIAL STATEMENTS
                             MARCH 31, 2001 AND 2000

NOTE 1 - PRESENTATION OF INTERIM INFORMATION

The accompanying  unaudited interim  financial  statements have been prepared in
accordance   with  Form  10QSB  and  in  the  opinion  of   management   MedCare
Technologies,   Inc.  and  Subsidiaries   (the  Company),   include  all  normal
adjustments  considered necessary to present fairly the financial position as of
March 31, 2001 and the results of operations and cash flows for the three months
ended March 31, 2001 and 2000.  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 Company's  2000 Annual
Report on 10-KSB.

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  unaudited
interim  financial   statements  be  read  in  conjunction  with  the  financial
statements  and notes thereto  incorporated  by reference in the Company's  2000
Annual Report on 10-KSB.

NOTE 2 - Financial Results and Liquidity

To date, we have not been profitable.  We face all the risks common to companies
in  their  early  stages  of  development,   including  undercapitalization  and
uncertainty of funding sources,  high initial  expenditure  levels and uncertain
revenue  streams,  an unproven  business  model,  and  difficulties  in managing
growth.  Our  recurring  losses  raise  substantial  doubt  about our ability to
continue  as a going  concern.  Our  financial  statements  do not  reflect  any
adjustments  that might  result  from the outcome of this  uncertainty.  ___ The
Company  expects to incur losses as it expands its  businesses  and will require
additional  funding  during  2001.  The  satisfaction  of our cash  requirements
hereafter will depend in large part on our ability to successfully raise capital
from external  sources to pay for our planned capital  expenditures  and to fund
operations.  We do not  expect  that  sufficient  cash  will be  generated  from
operations to fund our growth for the foreseeable future. As a result, we expect
to aggressively  pursue additional sources of funds, the form of which will vary
depending  upon  prevailing  market and other  conditions and may include a sale
transaction or the issuance of equity securities.

The Company has  explored  the  possibility  of selling or merging  with another
Company.  Although  the Company has not entered  into any binding  agreement  to
effect such a  transaction,  the board of directors of the Company does consider
such offers and would consider all of the terms of any such offer as part of its
fiduciary duty to determine whether any such transaction is in the best interest
of the Company's  stockholders.  If our board of directors does determine that a
sale  or  merger  of the  Company  is in the  best  interests  of the  Company's
stockholders,  our board of directors may determine to pursue such a transaction
and the  consideration to be paid in connection with such  transaction  would be
used to expand our business  and fund future  operations.  We cannot  assure you
that we will be able to raise funds through a sale or equity transaction,  or if
such funding is available,  that it will be on favorable terms. Our common stock
is currently  traded on the  over-the-counter  market on an electronic  bulletin
board established for securities that do not meet Nasdaq listing requirements or
in what are commonly referred to as the "pink sheets."

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

Overview
--------

MedCare  Technologies,   Inc.  is  the  developer  of  the  MedCare  Program,  a
non-pharmaceutical,  non-invasive  treatment program for patients suffering from
urinary incontinence and other pelvic disorders,  including pelvic pain, chronic
constipation, fecal incontinence and disordered defecation.

Due to the lack of significant  revenues and high operating cost associated with
supporting its various  physician  office and hospital based program sites,  the
Company  has  suffered  large  operating  losses.  In order to reduce  operating
expenses, the Company terminated  substantially all of its MedCare Program sites
in March,  2001. The Company is currently  searching for potential joint venture
partners  that have  existing  operating  infrastructures  to which the  MedCare
Program  can  be  added  as  an  ancillary   service   with  minimal   overhead.
Additionally,  MedCare  plans to develop  additional  revenue  streams  from the
Company's current intellectual property base.

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

Revenues.  The Company  generated $24,560 in revenues for the three months ended
March 31, 2001,  versus  $240,912 for the same period in 2000.  This decrease of
$216,352,  or 89.8%,  is primarily due to a reduction in the number of operating
MedCare Program sites.

General and  Administrative  Expenses.  During the three  months ended March 31,
2001, the Company incurred $284,978 in general and  administrative  expenses,  a
decrease of 75.8% from first quarter 2000  expenses of $1,180,624  due primarily
to decreased  personnel and other  operating costs as a result of a lower number
of operating MedCare Program sites.

Interest  Income.  Interest income was $1,115 and $37,890 for the quarters ended
March 31,  2001 and 2000,  respectively.  Interest  earned in the future will be
dependent on Company funding cycles and prevailing interest rates.

Provision for Income  Taxes.  As of March 31, 2001,  the  Company's  accumulated
deficit  was  approximately  $13,500,000,  and as a  result,  there  has been no
provision for income taxes to date.

<PAGE>

Net Income.  For the three months ended March 31, 2001, the Company recorded net
loss of $273,169  or $0.02 per share,  compared  to a net loss of  $951,185,  or
$0.095 per share, for the same period in 2000.

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

As at March 31,  2001,  the Company had a cash  balance of $97,059,  compared to
$34,856 as at  December  31,  2000.  The  Company has  financed  its  operations
primarily  through  cash on hand from its  operations  during  the three  months
periods ended March 31, 2001.

Net cash flows used by  operating  activities  was  $126,468 for the three month
period ending March 31, 2000,  compared to net cash flows  provided by operating
activities  of $744,408 for the same period in 2000.  This change was  primarily
due to a decrease in stock subscription  receivable of $101,329,  an increase in
accounts payable of $14,163 and a decrease in accounts receivable of $17,343.

Net cash used in investing  activities  was $0 for the three month period ending
March 31, 2001,  versus  $17,306 for the  purchase of equipment  during the same
three month period in 2000.

Net cash flows from financing activities was $188,671 representing proceeds from
the sale of common stock.

At present,  the Company plans to fund its operations from cash in bank and also
plans to raise additional financing within the next twelve months.

The Company's future funding requirements will depend on numerous factors. These
factors include the Company's ability to operate its business  profitably in the
future,  recruit and train qualified management,  technical and sales personnel,
and  the  Company's  ability  to  compete  against  other,   better  capitalized
corporations who offer similar web based services.

The  Company  may raise  additional  funds  through  private  or  public  equity
investment in order to expand the range and scope of its business operations. In
doing so, the Company may seek access to the private or public equity, but 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

1.   800,000 shares of common stock at $0.05 per share, or $38,671 cash.
2.   3,000,000 shares of common stock at $0.05 per share, or $150,000 cash.

Item 3    Defaults Upon Senior Securities

None

Item 4    Submission of Matters to a Vote of Security Holders

None

<PAGE>

Item 5    Other Information

None

Item 6    Exhibits and Reports on Form 8-K

In a Form 8K filed on  January  10,  2001,  the  Company  entered  into a letter
agreement  dated  January 4, 2001,  in which  Harmel S.  Rayat,  a Director  and
majority  shareholder  of MedCare  Technologies,  Inc.,  agreed to acquire  81.5
shares of the  Company's  convertible  preferred  stock  (par  value  $0.25) and
related warrants for $111,329 and 800,000  restricted common shares for $38,671.
The Company also granted Mr. Harmel S. Rayat 4,000,000  share purchase  warrants
to acquire common shares of the Company at $0.05 expiring  January 10, 2005. The
agreement also provided the Company  undertake to register all shares underlying
the Series B Convertible  Preferred  Stock and the share purchase  warrant.  The
agreement is attached as an exhibit.

In a Form 8K filed on March 6, 2001, the Company  announced that it had accepted
a private  placement  on March 1, 2001,  of $150,000  from  Harmel S.  Rayat,  a
Director  and majority  shareholder  of MedCare  Technologies,  Inc. The private
placement  involves the issuance of 3,000,000  restricted common shares at $0.05
per share and  3,000,000  purchase  warrants  to  acquire  common  shares of the
Company at $0.05 per share until March 1, 2005.  The Company agreed to undertake
to register all shares and warrants underlying this private placement.

Additionally,  on March 1, 2001,  the Company  accepted the  resignation  of Dr.
Michael Blue from the Board of Directors of MedCare Technologies,  Inc. Dr. Blue
resigned from the Board for personal reasons. Replacing Dr. Blue as Director, as
well as being appointed as the Company's  Secretary  Treasurer is Mr.  Harvinder
Dhaliwal.  Since 1985, Mr.  Dhaliwal has been the President and Chief  Executive
Officer of Vancouver Sight & Sound Ltd., a privately held company engaged in the
retail sales of audio and video products.

                                 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/ Ray Krauss
                                                        ------------------------
                                                                      Ray Krauss
                                                               CEO and President

                                                             /s/ Harmel S. Rayat
                                                        ------------------------
                                                                 Harmel S. Rayat
                                                           Director and Chairman

                                                          /s/ Harvinder Dhaliwal
                                                        ------------------------
                                                              Harvinder Dhaliwal
                                               Director, Secretary and Treasurer

Dated: May 14, 2001