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


                                   FORM 10-Q/A

(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      60523
-------------------------------------------------------      ------
(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>
<CAPTION>

                                     ASSETS

                                                     JUNE 30, 1998              DECEMBER 31, 1997
                                                     (Restated)
<S>                                                  <C>                        <C>
Current Assets

     Cash                                            $        3,139,368         $        3,440,791

     Accounts Receivable                                        114,932                     47,286

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


Total Current Assets                                          3,254,300                  3,550,390

Property and Equipment, Net                                     143,640                     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

     Escrow Funds                                             1,650,000                          0

     Security Deposits                                            2,150                      1,500
                                                                  -----                      -----

Total Other Assets                                            1,653,116                      2,500
                                                              ---------                      -----

Total  Assets                                        $        5,051,056         $        3,586,416
                                                              =========                  =========
</TABLE>



                                       F-1




<PAGE>



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


<TABLE>
<CAPTION>
                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                  JUNE 30, 1998        DECEMBER 31, 1997
                                                                  (Restated)
<S>                                                               <C>                  <C>

Current Liabilities

     Accounts Payable and Other Accrued Liabilities               $    135,320         $    15,796

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


Total Current Liabilities                                              135,320              16,796

Commitments and Contingencies                                                0                   0

Stockholders' Equity

     Preferred Stock: $.25 Par Value, Authorized
     1,000,000; Issued and Outstanding, 324 and
     165 Convertible Series A Shares at June 30,
     1998 and December 31, 1997                                             80                   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                                      9,242,208            6,284,505

     Loss Accumulated During The Development Stage                  (4,333,802)          (2,721,918)
                                                                    -----------          -----------

Total Stockholders' Equity                                           4,915,736            3,569,620

Total Liabilities and Stockholders' Equity                        $  5,051,056         $  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

<TABLE>
<CAPTION>
                                    (Restated)                                  (Restated)
                                    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       1,320,125               333,513             2,085,835           531,241
                                      ---------               -------             ---------           -------

Operating Loss                       (1,168,310)             (322,940)           (1,707,012)         (483,432)

Other Income (Expense)

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

Net Loss Available to Common
     Stockholders                   $(1,115,851)            $(311,911)          $(1,611,884)      $ (470,475)

Earnings Per Common Share
     and Common Share
     Equivalents                    $     (0.15)            $    (.05)          $     (0.23)      $     (.07)

Weighted Number of Common
     Shares Outstanding               7,229,869             6,238,220             7,115,464        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 (Restated)       30, 1997
<S>                                                       <C>                       <C>
Cash Flows from Operating Activities
     Net Loss                                             $    (1,611,884)          $   (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                        (650)                                       0
     (Increase) Decrease in Escrow Funds                       (1,650,000)                     0
     Increase (Decrease) in Accounts Payable                      119,524                 26,192
                                                                  -------                 ------
     Total Adjustments                                         (1,528,557)               (24,159)
                                                               -----------               --------

Net Cash Used for Operating Activities                         (3,140,441)              (494,634)

Cash Flows from Investing Activities

   Purchase of Property and Equipment                            (117,983)                     0
                                                                 ---------                     -

Net Cash Flows from Investing Activities                         (117,983)                     0
                                                                 ---------                     -

Cash Flows from Financing Activities

     Proceeds from Sale of Common Stock                         1,308,001              1,210,250
     Proceeds from Escrow Funds                                 1,650,000                      0
     Net Reduction in Office & Med Equipment                            0                    839
     Advances (Repayments) Notes Payable                                0                 12,500
     Advances (Repayments) To Officers                             (1,000)                     0
                                                                   -------                     -


Net Cash Provided by Financing Activities                      2,957,001               1,200,454
                                                               ---------               ---------

Increase (decrease) in Cash and Cash Equivalents               (301,423)                 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 (Restated)       30, 1997
<S>                                                       <C>                       <C>

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

Cash and Cash Equivalents, End of Period                  $    3,139,368            $    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
  During the Quarter                                      $            9             $         0
                                                                       =                       =

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


1194 Common Shares Were Issued 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  10QSB  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
Company's 1997 Annual Report on Form 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
consolidated  financial  statements  be read in  conjunction  with the financial
statements  and  notes  thereto  incorporated  by  reference  in  the  Company's
1997 Annual Report on Form 10-KSB.

In  preparation of the year-end  financial  statements,  the Company  discovered
accounting errors in its second and third quarter 1998 financial statements. The
errors  were  mainly a  result  of  converting  data to a  different  accounting
software system during the second and third quarters of 1998. Most of the errors
were second quarter  transactions that were incorrectly  omitted from the second
quarter  financial  statements but were recorded in the third quarter  financial
statements.  The financial statements included in this filing have been restated
to place the  transactions  in the  appropriate  quarter.  The Company has taken
actions since learning of the accounting errors intended to prevent a recurrence
of this situation.

NOTE 2.  Escrow Funds
---------------------

An escrow fund was  established  for monies and documents  deposited and held in
connection  with the offer and sale of the  warrants  attached  to the  Series A
Preferred Stock,  which the Company issued and sold on or about July 8, 1997, at
a purchase price of $10,000 per share. The escrow funds are noninterest bearing.





                                       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 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
--------

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
operations 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 possibly abroad.

For the  three-month  period ending June 30th,  1998, the Company's  general and
administrative  expenses  increased to  $1,320,125  compared to $333,513 for the
corresponding period in 1997. The 1998 amount represents an increase of 296% due
primarily to the hiring of  additional  management  and nursing  staff,  greater
advertising  and marketing  expenses,  increased  expenses  related to financial
public relations and building processes and protocols to support future growth.

The  Company's  net loss was  $1,115,851,  or $0.15 per  share,  for the  second
quarter of 1998  compared to a net loss of $311,911 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  $3,139,368  compared to
$926,382  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.

As of June 30,  1998,  $1,650,000  was held in an  escrow  account  on behalf of
investors  who  originally  participated  in the  Company's  Series A  preferred
offering.  These funds were being held in escrow  pending final  approval of the
Company's  registration  statement by November 20, 1998.  The escrow  account is
noninterest bearing.

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  corporation 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.

Year 2000
---------

The Year 2000 issue arose because many existing  computer  programs use only the
last two digits to refer to a year.  Therefore,  these computer  programs do not
properly  recognize a year that begins with 20 instead of 19. If not  corrected,
many computer applications could fail or create erroneous results.

Management  has  initiated  a  comprehensive  program to prepare  the  Company's
systems for the year 2000. The Company is actively engaged in testing and fixing
applications to ensure they are Year 2000 ready. The Company does not separately
track the internal costs incurred for the Year 2000 project,  but such costs are
principaly the related payroll costs for certain  corporate  staff.  The Company
currently does not expect  remediation costs to be material,  nor does it expect
any significant interruption to its operations because of Year 2000 problems.

The Company is in the process of  contacting all third parties with which it has
significant relationships, to determine the extent to which the Company could be
vulnerable to failure by any of them to obtain Year 2000 compliance. Some of the
Company's  major suppliers and financial  institutions  have confirmed that they
anticipate  being Year 2000 compliant on or before  December 31, 1999,  although
many have only indicated that they have Year 2000 readiness  programs.  To date,
the Company is not aware of any significant third parties with a Year 2000 issue
that could  materially  impact the  Company's  operations,  liquidity or capital
resources.  The Company has no means,  however,  of ensuring  that third parties
will be Year 2000 ready and the potential  effect of third-party  non-compliance
is currently not determinable.

The Company has devoted and will continue to devote the  resources  necessary to
ensure  that all Year  2000  issues  are  properly  addressed.  There  can be no
assurance, however, that Year 2000 problems are detected. Furthermore, there can
be no assurance that the Company's  assessment of its third-party  relationships
will be accurate.  Some of the potential  worst-case  scenarios that could occur
include (1) corruption of data in the Company's internal systems and (2) failure
of government and insurance companies'  reimbursement  programs. If any of these
situations  were  to  occur,  the  Company's  operations  could  be  temporarily
interrupted.  The Company  intends to develop  Year 2000  contingency  plans for
continuing operations in the event such problems arise.


                          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

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 7    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: January 28, 1999 



<PAGE>