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 September 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
September 30th, 1998: 7,384,529



<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 September 30, 1998 . . . . . . . . . .   F-1 - F-2

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

Consolidated Statement of Cash Flows For The Quarter Ended 
         September 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    Management's Discussion and Analysis or Plan of Operations . . . . . 9

PART II   OTHER INFORMATION

Item 1   Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . .  11

Item 2   Changes in Securities . . . . . . . . . . . . . . . . . . . . . . .  11

Item 3   Defaults Upon Senior Securities . . . . . . . . . . . . . . . . . .  11

Item 4   Submission of Matters to a Vote of Security Holders . . . . . . . .  12

Item 5   Other Information . . . . . . . . . . . . . . . . . . . . . . . . .  12

Item 6    Exhibits and Reports on Form 8-K  . . . . . . . . . . . . . . . .   12

          Signature Page . . . . . . . . . . . . . . . . . . . . . . . . .  . 12




<PAGE>



Item 1            Financial Statements

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

<TABLE>
<CAPTION>

                                     ASSETS

                                                     SEPTEMBER 30,                      DECEMBER 31,
                                                     1998 (Restated)                    1997
<S>                                                  <C>                                <C>
Current Assets
     Cash                                            $    2,168,237                     $    3,440,791
     Accounts Receivable, net of $17,7950
       at September 30, 1998                                140,980                             47,286
     Prepaid Expenses                                             0                             62,313
                                                                  -                             ------
Total Current Assets                                      2,309,217                          3,550,390

Property and Equipment, Net                                 213,737                             33,526

Other Assets
     Intangible Assets-The MedCare Program,  
       Net of Accumulated  Amortization of
       $50 and $0 for September 30, 1998 and
       December 31, 1997                                        950                              1,000
     Security Deposits                                        2,150                              1,500
     Escrow Funds (Note 2)                                1,500,000                                  0
                                                          ---------                                  -
Total Other Assets                                        1,503,100                              2,500
                                                          ---------                              -----

Total  Assets                                        $    4,026,054                     $    3,586,416
                                                          =========                          =========

</TABLE>




<PAGE>



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

<TABLE>
<CAPTION>

                       LIABILITIES AND STOCKHOLDERS EQUITY

                                                                  SEPTEMBER 30,              DECEMBER 31,
                                                                  1998 (Restated)            1998
<S>                                                               <C>                        <C>
Current Liabilities
     Accounts Payable and Other Accrued Liabilities               $    146,420               $    15,796
     Notes Payable, Related Party                                            0                     1,000
                                                                             -                     -----
Total Current Liabilities                                              146,420                    16,796

Commitments and Contingencies                                                0                         0

Stockholders' Equity
     Preferred Stock: $0.25 Par Value, Authorized
     1,000,000; Issued and Outstanding, 235 and 165
     Convertible Series A Shares at September 30, 1998
     and December 31, 1997                                                  59                        41

     Common Stock: $0.001 Par Value, Authorized
     100,000,000; Issued and Outstanding, 7,384,529
     Shares at September 30, 1998, and 6,992,185 at
     December 31, 1997                                                   7,385                     6,992

     Additional Paid In Capital                                      9,113,096                 6,284,505
     Loss Accumulated During The Development Stage                  (5,240,906)               (2,721,918)
                                                                    ----------                ---------- 
Total Stockholders Equity                                            3,879,634                 3,569,620
                                                                     ---------                 ---------

Total Liabilities and Stockholders' Equity                        $  4,026,054               $ 3,586,416
                                                                     =========                 =========

</TABLE>




<PAGE>



                   MEDCARE TECHNOLOGIES, INC. AND SUBSIDIARIES
                  INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
       FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 1998 AND 1997, AND
          FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 1998 AND 1997

<TABLE>
<CAPTION>
                                    For the Three         For the Three         For the Nine      For the Nine
                                    Months Period         Months Period         Months Period     Months Period
                                    Ended                 Ended                 Ended             Ended
                                    September 30,         September 30,         September 30,     September 30,
                                    1998 (Restated)       1997                  1998 (Restated)   1997

<S>                                 <C>                   <C>                   <C>                <C>        
Revenues                            $   158,775           $   8,366             $   537,598        $    56,175

Expenses
   General and Administrative         1,092,884             442,104               3,178,718            973,345
                                      ---------             -------               ---------            -------

Operating Loss                         (934,109)           (433,738)             (2,641,120)          (917,170)

Other Income (Expense)
     Interest Income                     27,004              53,969                 122,132             66,926
     Loss From Discontinued Operations                                                                  (4,489)
     Gain on Sale of Subsidiary                                                                         15,770
                                        -------             -------                --------             ------

Total Other Income (Loss)                27,004              53,969                 122,132             78,207

Net Loss Available to Common
  Stockholders                      $  (907,105)          $(379,769)            $(2,518,988)       $  (838,963)
                                       =========           =========              ==========          =========

Earnings Per Common Share
  and Common Share
  Equivalents                       $     (0.12)          $   (0.05)            $     (0.35)       $     (0.12)
                                          ======              ======                  ======             ======

Weighted Number of
  Common Shares
  Outstanding                         7,344,407           7,052,442               7,193,224          7,052,442
                                      =========           =========               =========          =========

</TABLE>


<PAGE>



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

<TABLE>
<CAPTION>
                                                              For the Nine          For the Nine
                                                              Months Period         Months Period
                                                              Ended                 Ended
                                                              September 30,         September 30,
                                                              1998 (Restated)       1997

<S>                                                           <C>                   <C>
Cash Flows from Operating Activities
     Net Loss                                                 $   (2,518,988)       $   (838,963)

Adjustments to Reconcile Net Loss to
  Net Cash Provided by Operating Activities
     Depreciation and Amortization                                    15,920               3,336

Changes in Assets and Liabilities
     (Increase) Decrease in Accounts Receivable                      (93,694)            (58,164)
     (Increase) Decrease in Prepaid Expenses                          62,313               2,202
     (Increase) Decrease in Organizational Costs                           0                   0
     (Increase) Decrease in Security Deposits                           (650)             (1,500)
     (Increase) Decrease in Escrow Funds                          (1,500,000)                  0
     Increase (Decrease) in Accounts Payable                         130,624             102,767
                                                                     -------             -------

     Total Adjustments                                            (1,385,487)             48,641
                                                                  -----------             ------
Net Cash Used by Operating Activities                             (3,904,475)           (790,322)

Cash Flows from Investing Activities
     Purchase of Property and Equipment                             (196,081)            (25,879)
                                                                   ---------             --------

Net Cash Flows from Investing Activities                            (196,081)            (25,879)

Cash Flows from Financing Activities
     Proceeds From Sale of Common Stock                            1,329,002           4,761,500
     Net Proceeds From Escrow Funds                                1,500,000                   0
     Payments to Related Party                                        (1,000)                  0
     Offering Costs                                                        0            (123,750)
                                                                           -            ---------
Net Cash Provided by Financing Activities                          2,828,002           4,637,750
                                                                   ---------           ---------

Increase (Decrease) in Cash and Cash Equivalents                  (1,272,554)          3,821,549

</TABLE>

<PAGE>



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

<TABLE>
<CAPTION>
                                                                  For the Nine               For the Nine
                                                                  Months Period              Months Period
                                                                  Ended                      Ended
                                                                  September 30,              September 30,
                                                                  1998(Restated)             1997
<S>                                                               <C>                        <C>             
Cash and Cash Equivalents, Beginning of Period                    $    3,440,791             $    219,775
                                                                       ---------                  -------

Cash and Cash Equivalents, End of Period                          $    2,168,237             $  4,041,324
                                                                       =========                =========

Supplemental Information:
Cash paid for:
     Interest                                                     $            0             $          0
                                                                               =                        =
     Income taxes                                                 $            0             $          0
                                                                               =                        =

Noncash Financing Transactions:
     74 Shares of Preferred Stock Converted
       to 128,506 Shares of Common Stock                          $          110             $          0
                                                                             ===                        =

     8,990 Common Shares Issued in Exchange
       for Warrants Exercised                                     $            9             $          0
                                                                               =                        =

     6,000 Common Shares Issued for Services                      $       34,500             $          0
                                                                          ======                        =

     1,194 Common Shares Issued to Correct a
       Prior Year Error                                           $        7,500             $          0
                                                                           =====                        =

</TABLE>




<PAGE>



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

NOTE 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 September 30,
1998, the results of operations for the three months period ended  September 30,
1998, and for the nine months period ended September 30, 1998, and the statement
of cash flows for the nine months period ended September 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.  Total original escrow funds  established
were  $1,650,000.  On August  5,  1998,  $150,000  was  withdrawn  as part of an
election attached to the subscription for the Series A Preferred Stock,  leaving
a net escrow balance of $1,500,000. The escrow funds are noninterest bearing.



<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 September 30, 1998, the
Company  had 24 MedCare  Program  sites  established,  and was in the process of
opening an additional 12 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 $158,775 for the three-month period ending September
30, 1998  compared to $8,366 for the  three-month  period  ending  September 30,
1997.  Since the Company  transitioned  from Solo  Physician  Practices to Multi
Physician Practice offices,  22 of the 24 centers operating,  as of September 30
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  revenue  from the opening of new MedCare
Program centers in the United States, and possibly abroad.
                                           
For the three-month  period ending September 30, 1998, the Company's general and
administrative  expenses  increased to  $1,092,884  compared to $442,104 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
public relations and building processes and protocols to support future growth.

The Company's net loss was $907,105,  or $0.12 per share,  for the third quarter
of  1998  compared  to a net  loss of  $379,769  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 September 30, 1998, the Company's cash balance was $2,168,237  compared to
$4,041,324  as of September  30, 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 September 30, 1998,  $1,500,000 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.



<PAGE>


                          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 shares of its
common  stock in exchange  for  services,  8,990 shares in exchange for warrants
exercised  and 1,194  shares to correct a prior  year  error.  Additionally,  74
shares of Preferred  Stock of the Company were  converted into 128,506 shares of
common  stock.  The total  common  shares  issued  during the three month period
ending September 30, 1998 was 144,690 shares.

ITEM 3    DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

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>