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 the
quarterly period ended December 31, 2009





o TRANSITION REPORT
UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT





For the
period from October 1st 2009
to December 31st
2009





000-31469


(Commission
file number)





Medical International
Technology, Inc.


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





Colorado
            
            84-1509950(State
      or other jurisdiction
              of
      incorporation or organization)
            
            (IRS
      Employer Identification No.)





1872
Beaulac


Ville
Saint-Laurent


Montréal, Québec, Canada H4R
2E7


(Address
of principal executive offices)





(514)
339-9355


(Issuer's
telephone number)








(Former
name, former address and former fiscal year, if changed since last
report)





Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 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 o





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). Yes o    No
o





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





Large
accelerated filer £                                                                                                Accelerated
filer £





Non-accelerated
filer £                                                                                                 
Smaller reporting company x


(Do not
check is a smaller reporting company)





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





The
number of shares outstanding of each of the issuer's classes of common equity as
of February 16, 2010: 60,357,795 shares of common stock













-1-





MEDICAL
INTERNATIONAL TECHNOLOGY, INC.





FORM
10-Q





December
31, 2009





TABLE
OF CONTENTS








PART
      I.    FINANCIAL INFORMATIONItem
      1.      Consolidated Financial
      Statements
            3Consolidated
      Balance Sheet
            3Consolidated
      Statements of Operations,
            5Consolidated
      Statements of Cash Flows
            6Consolidated
      Statements of Comprehensive Loss
            7Consolidated
      Statement of Stockholders’ (Deficit)
            8Notes
      to Unaudited Consolidated Financial Statements
            9Item
      2.       Management's Discussion and
      Analysis of Financial Condition and Results of Operations
            13Item
      3.       Quantitative and Qualitative
      Disclosures About Market Risk
            19Item
      4T.       Controls and
      Procedures
            19Part
      II. OTHER INFORMATIONItem
      1        Legal
      Proceedings
            20Item
      1A.    Risk Factors
            20Item
      2.       Unregistered Sales of Equity
      Securities and Use of Proceeds
            20Item
      3.       Defaults upon Senior
      Securities
            20Item
      4.       Submission of Matters to a
      Vote of Security Holders
            20Item
      5.       Other Information
            20Item
      6.       Exhibits
            20SIGNATURES
            21








-2-








PART
1 - FINANCIAL INFORMATION





Item
1. Financial Information








Medical
      International Technology, Inc.
            Quarterly Financial
      Report





CONSOLIDATED BALANCE SHEET


December
      31, 2009
              
              
              September
      30, 2009(Unaudited)
              
              
              (Audited)AssetsCurrent AssetsCash
      and cash equivalents
              
              $
              82,648
              
              
              $
              77,461Accounts
      receivable
              
              
              3,610
              
              
              
              5,425Inventories
              
              
              242,074
              
              
              
              220,139Prepaid
      expenses
              
              
              5,351
              
              
              
              5,040Total
      Current Assets
              
              
              333,683
              
              
              
              308,065Long Term
      InvestmentInvestment
      in MIT China Joint Venture
              
              
              437,115
              
              
              
              426,678Property
      and EquipmentTooling
      and machinery
              
              
              297,147
              
              
              
              290,053Furniture
      and office equipment
              
              
              139,327
              
              
              
              136,001Leasehold
      improvements
              
              
              28,664
              
              
              
              27,980465,138
              
              
              
              454,033Less
      accumulated depreciation
              
              
              (431
      077
              )
              
              
              (416,409
              )34,061
              
              
              
              37,624Other
      AssetsPatents
      (net of accumulated amortization of $3,172 and $2,612)
              
              
              8,032
              
              
              
              8,387Total
      assets
              
              $
              812,891
              
              
              $
              780,754





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







-3-







Medical
      International Technology, Inc.
            Quarterly Financial
      Report








CONSOLIDATED BALANCE SHEETDecember
      31
              2009
            
            
            September
      30
              2009(Unaudited)
            
            
            (Audited)Liabilities
      and Stockholders' Equity (Deficit)Current
      LiabilitiesDeferred income
            
            $
            1,199,339
            
            
            $
            1,226,396Accounts payable and accrued expenses
            
            
            456,653
            
            
            
            388,903Amounts due to related parties
            
            
            3,553,982
            
            
            
            3,332,463Current portion of long-term debts
            
            
            4,313
            
            
            
            6,0145,214,287
            
            
            
            4,953,776Long-Term Debts
            
            
            -
            
            
            
            -Total
      Liabilities
            
            
            5,214,287
            
            
            
            4,953,776Stockholders'
      Equity (Deficit)Preferred
      stock, $.0001 par value; 3,000,000 shares authorized;None
      issued and outstanding as of December 31, 2007Common
      stock, $.0001 par value; 100,000,000 shares authorized;60,357,795
      and 59,087,795 shares issued andOutstanding,
      respectively
            
            
            6,031
            
            
            
            5,909Additional
      paid-in capital
            
            
            7,822,355
            
            
            
            7,699,478Deficit
            
            
            (11,955,448
            )
            
            
            (11,667,623
            )Other
      comprehensive income (loss)
            
            
            (274,334)
            
            
            
            (210,786
            )Total
      Stockholders' Equity (Deficit)
            
            
            (4,401,396
            )
            
            
            (4,173,022
            )Total
      Liabilities and Stockholders' Equity (Deficit)
            
            $
            812,891
            
            
            $
            780,754




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





-4-








Medical
      International Technology, Inc.
            Quarterly Financial
      Report








CONSOLIDATED STATEMENTS OF
      OPERATIONSFor
      the Three-Month Period Ended December 31,2009
            
            
            2008(Unaudited)
            
            
            (Unaudited)Sales
            
            $
            208,563
            
            
            $
            70,915Cost
      of sales
            
            
            (54,991
            )
            
            
            (51,610
            )Gross
      profit
            
            
            153,572
            
            
            
            19,305Research
      and development costs
            
            
            (152
      467
            )
            
            
            (450,000
            )Selling,
      general, and administrative expenses
            
            
            (283,274
            )
            
            
            (150,378
            )(435,741
            )
            
            
            (600,378
            )Net
      loss from operations
            
            
            (282,169
            )
            
            
            (581,073
            )Other
      Income (Expense)Interest
      income
            
            
            588
            
            
            
            1,312Interest
      expense
            
            
            (6244
            )
            
            
            (641
            )(5,656
            )
            
            
            671Net
      loss
            
            $
            (287,825
            )
            
            $
            (580,402
            )Basic
      (loss) per share
            
            $
            (0.005
            )
            
            $
            (0.016
            )Basic
      weighted average shares outstanding
            
            
            60,357,795
            
            
            
            51,058,663




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





-5-





Medical
      International Technology, Inc.
            Quarterly Financial
      Report





CONSOLIDATED
STATEMENTS OF CASH FLOWS


Three-Month
      Period EndedDecember
      31,
            
            
            December
      31,2009
            
            
            2008Cash
      flows from operating activities:Net
      loss
            
            $
            (287,825
            )
            
            $
            (580,402
            )Adjustments
      to reconcile net loss to net cashprovided
      by (used in) operating activities:Depreciation
      expenseAmortization
      expense
            
            
            5,043
            
            
            
            13,458Goodwill
      impairment charge
            
            
            -
            
            
            
            -Common
      stock issued for services
            
            
            123
      000
            
            
            
            4000Changes
      in:Accounts
      receivable
            
            
            1,815
            
            
            
            (1,868)Research
      credit receivable
            
            
            -
            
            
            
            -Inventories
            
            
            (21,935
            )
            
            
            5,120Prepaid
      expenses
            
            
            (311
            )
            
            
            830Accounts
      payable and accrued liabilities
            
            
            67,750
            
            
            
            138,261
            )Related
      party payables
            
            
            -
            
            
            
            -Deferred
      income
            
            
            (27,057
            )
            
            
            (17,617)Net
      cash used by operating activities
            
            
            (139,520
            )
            
            
            (438,218)Cash
      flows from investing activities:Acquisition
      of patents
            
            
            -
            
            
            
            -Investment
      in MIT China joint venture
            
            
            (10,437
            )
            
            
            -Tooling
      and machinery
            
            
            -
            
            
            
            -Net
      cash used by investing activities
            
            
            (10,437
            )Cash
      flows from financing activities:Proceeds
      from issuance of stock, net
            
            
            -
            
            
            
            -Increase
      in amounts due to related parties
            
            
            221,519
            
            
            
            191,446Issuance
      of notes payable
            
            
            -
            
            
            
            -Repayment
      on notes payable
            
            
            (1,701
            )
            
            
            -Net
      cash provided from financing activities
            
            
            219,818
            
            
            
            191,446Effect
      of exchange rates
            
            
            (64,674
            )
            
            
            168,734Increase
      (decrease) in cash
            
            
            5,188
            
            
            
            (83,130
            )Cash,
      beginning of period
            
            
            77,461
            
            
            
            94,834Cash,
      end of period
            
            $
            82,648
            
            
            $
            11,704Supplemental
      disclosure of cash flow information:Cash
      paid for interest
            
            $
            6,244
            
            
            $
            641Cash
      paid for federal income taxes
            
            $
            -
            
            
            $
            -Supplemental
      disclosure of non-cash transactionsCommon
      stock issued for debt reductions
            
            $
            -
            
            
            $
            -





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





-6-







Medical
      International Technology, Inc.
            Quarterly Financial
      Report





CONSOLIDATED STATEMENTS OF COMPREHENSIVE
      LOSSFirst
      quarter ending
              December
      31,
              2009
            
            
            First
      quarter ending
              December
      31,
              2008Net
      loss
            
            $
            (287,825
            )
            
            $
            (580,402
            )Other
      comprehensive income (loss)Foreign
      currency translation adjustment
            
            
            (63,548
            )
            
            
            104,320Net comprehensive income (loss)
            
            $
            (351,373
            )
            
            $
            (476,082
            )





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







-7-










Medical
      International Technology, Inc.
            Quarterly Financial
      Report








CONSOLIDATED STATEMENT OF STOCKHOLDERS’
      (DEFICIT)Common
      Stock
            
            
            Additional
      Paid inShares
            
            
            Amount
            
            
            Capital
            
            
            DeficitBalance
      – September 30, 2009
            
            
            59,087,795
            
            
            $
            5,908
            
            
            $
            7,699,478
            
            
            $
            (11,667,623
            )Shares
      issued for debts
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Shares
      issued for services
            
            
            1,270,000
            
            
            
            123
            
            
            
            122,877
            
            
            
            -Net
      loss for the period ended December 31, 2009
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (287,825
            )Balance
      – December 31, 2009
            
            
            60,357,795
            
            
            $
            6,031
            
            
            $
            7,822,355
            
            
            $
            (11,955,448
            )




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





-8-










Medical
      International Technology, Inc.
            Quarterly Financial
      Report





Notes
to Financial Statements





(Unaudited)








Note
1 – Basis of Presentation





Interim
Financial Statements


The
accompanying unaudited condensed consolidated financial statements of Medical
International Technology, Inc. and its subsidiary (collectively referred to as
the “Company”) have been prepared in accordance with accounting principles
generally accepted in the United States of America, pursuant to the rules and
regulations of the Securities and Exchange Commission.  All
significant intercompany balances and transactions have been
eliminated.  These financial statements do not include all information
and notes required by accounting principles generally accepted in the United
States of America for complete financial statements.  It is
recommended that these interim unaudited condensed consolidated financial
statements be read in conjunction with the consolidated financial statements and
notes thereto included in the Company's Annual Report on Form 10-K for the
fiscal year ended September 30, 2009.





In the
opinion of management, all adjustments (consisting only of normal recurring
accruals) considered necessary for a fair presentation have been
included.  Operating results for the three month period ended December
31, 2009 are not necessarily indicative of the results which may be expected for
any other interim periods or for the year ending September 30, 2010. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from these
estimates.





Note
2 – Unearned income





On
November 1st, 2007, the Company received a Non-Refundable deposit of $1,300,000
for the worldwide rights to market and sells all Medical International
Technology Inc.’s present and future Needle-Free Jet-Injectors for the human and
animal markets. This deposit is part of an agreement under negotiation,
which was finalized in January 2009.  The Company has recorded the
deposit as unearned income until  a final agreement was reached, at
which time the deposit will be earned as income over the estimated contractual
life of the final agreement. As at December 31, 2009, the Company had
earned $ 130,000.





Note
3 – Inventories





Inventories
at December 31, 2009 and September 30, 2009 consist of the
following:





December31,
              2009
            
            
            September
      30,
              2009Raw
      materials
            
            $
            185,111
            
            
            $
            165,193Work
      in process
            
            
            47,291
            
            
            
            42,939Finished
      goods
            
            
            9,672
            
            
            
            12,007Total
            
            $
            242,074
            
            
            $
            220,139











-9-
















Medical
      International Technology, Inc.
            Quarterly Financial
      Report





Notes
to Financial Statements





(Unaudited)








Note
4 – Research and Development Costs





Research
and development costs are charged to operations when incurred.





Research
and development expenses are as follows:





December
      31,
              2009
            
            
            September
      30,2009R&D
      Costs
            
            $
            152,467
            
            
            $
            450,000$
            152,467
            
            
            $
            450,000





“On
September 30, 2009, the Company’s research and development contract with Idee
expired.  Both Idee and the Company are negotiating a new contract, and are
currently operating under a month to month agreement until a new contract is
finalized.  Under the month to month agreement, the Company is to pay Idee
$50,000 per month for specific research and development on needle-free
technologies.  As of December 31, 2009, $150,000 was charged to research
and development costs.”





Note
5 – Property and Equipment





The cost
of property and equipment is depreciated over the estimated useful lives of the
related assets, which range from 5 to 7 years. Depreciation is computed on the
straight-line method for financial reporting purposes and on the declining
balance method for income tax reporting purposes. Depreciation expense for the
three-months ended December 31, 2009 and   2008 were $5,620, and
$13,584, respectively.





Note
6 – Intangible Assets





As of
December 31, 2009 the Company has net intangible assets totaling $ 3172.
Amortization expenses for the three-months ended December 31, 2009 and 2008 were
$560, and $116, respectively.  Intangible assets consist of the
following:





Gross
              Intangible
              Assets
            
            
            Accumulated
      Amortization
            
            
            Net
              Intangible
              Assets
            
            Weighted
              Average
              Life
              (Years)Patents
            
            $
            11,204
            
            
            $
            3172
            
            
            $
            8,032
            
            8.5
      through 16





Note
7 – Related Party Transactions





Related
party balances consist of the following at December 31, 2009 and September 30,
2009:





December
      31,
              2009
            
            
            September
      30,
              2009Payable
      to Idee International R&D, Inc.
            
            $
            3,553,982
            
            
            $
            3,332,463$
            3,553,982
            
            
            $
            3,332,463





The
Company has borrowed from shareholders and corporations owned by shareholders.
These loans are non-interest bearing and due upon demand. In addition, the
Company has advanced funds to other corporations owned by shareholders. These
loans are also non-interest bearing and due upon demand.







-10-










Medical
      International Technology, Inc.
            Quarterly Financial
      Report





Notes
to Financial Statements





(Unaudited)





During
fiscal 2008 and effective October 1, 2007, the Company entered into a Research
and Development Contract with Idee International R&D, Inc.(“Idee”), an
entity owned individually by the Company’s CEO and President.  Under
the terms of the agreement, Idee will perform specific research and development
on needle-free technologies, as defined in the agreement, from October 1, 2007
to September 30, 2009, and the Company will pay Idee $150,000 per
month.  The monthly charge is recorded as research and development
costs on the accompanying consolidated income statement.   The
Company has accrued a liability to Idee of $3,403,892 under this
contract.





Note
8 – Capital Stock





Common
Stock


From time
to time, the Company will issue common stock for services rendered, debt
reductions or as part of private placement offerings.  For the quarter
ended December 31, 2009, the Company issued 1,270,000 shares of common stock for
services rendered to the Company.  The value of those services was
$123,000, which was based on the fair value per share of the Company’s common
stock at the date of issuance.





Preferred
Stock





As of
December 31, 2009, there was no preferred stock outstanding. Dividend features
and voting rights are at the discretion of the Board of Directors without the
requirement of shareholder approval.





Outstanding
Options





As of
December 31, 2009, there were no outstanding stock options.





Outstanding
Warrants





During
the year ended September 30, 2009, the Company issued warrants to purchase an
aggregate of 2,500,000 common shares at an exercise price of $0.50 per
share.  The warrants were issued in connection with private placements
completed during 2009.  The warrants expire on April 15,
2010.  The warrant vested immediately and had a term of less than 1
year.  The Company estimated the fair value of the warrants using the
Black-Scholes method with assumptions including: (1) term of less than one year;
(2) a computed volatility rate of 92% to 110%; (3) a discount rate of $1.26%;
and (4) zero dividends.  The fair value of the warrants was estimated
to be $13,859.








-11-







Medical
      International Technology, Inc.
            Quarterly Financial
      Report





Notes
to Financial Statements





(Unaudited)








Note
9 – Notes Payable





Long-term
debt consists of the following at December 31, 2009 and September 30,
2009:





December
      31,
              2009
            
            
            September
      30,
              2009Note
      payable to a bank, bearing interest at prime plus 2.5%, secured by
      equipment, due July 21, 2010$
            4,313
            
            
            $
            6,014Current
      portion of long-term debt
            
            
            (4,313)
            
            
            
            (6,014
            )Long-term
      debt
            
            $
            -
            
            
            $
            -Scheduled
      maturities of long-term debt are as follows:July
      21, 2010
            
            $
            4,313
            
            
            
            -





Note
10 – Contingencies





Legal
Proceedings





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





Note
11 –   Investment in MIT China Joint Venture





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





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





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











-12-







Medical
International Technology, Inc.








The
Company accounts for its investment in MIT China in accordance with Financial
Accounting Standards Board Accounting Standards Codification 323,
“Investment — Equity Method and Joint Venture” (ASC 323), previously
referred to as Accounting Principles Board Opinion No. 18, “The Equity
Method of Accounting for Investments in Common Stock.” Accordingly, the Company
adjusts the carrying amount of its investment in MIT China to recognize its
share of earnings or losses. As of December 31, 2009, the Company’s recorded
investment in the MIT China was $437,115








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





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





Recent
Events





On
January 14th, 2010 - Medical International Technology Inc. received clearance by
FINRA to be traded on the OTC Bulletin Board. MIT’s shares are currently posted
for trading on the OTC Bulletin Board under the ticker symbol
MDLH.OB.
 
 On
January 25th, 2010, we redesigned the company website. The new website’s purpose
will be to inform all shareholders about new developments in the following
fields: Management & Advisory Board; Products; Latest News and
Operations.
 
 On
January 28th, 2010, we appointed Mr. Jacques Gauthier and Mr. Michel Carrier as
members of our newly formed Advisory Board.





Mr.
Jacques Gauthier has served on the board of directors of Axcan Pharma Inc. since
1995. He is currently an advisor to the President and Scientific Director at
Montreal Clinical Research Institute. Mr. Gauthier also serves on the board of
directors of a variety of medical and pharmaceutical companies and associations.
He has held various senior management positions, both in Canada and abroad, with
UpJohn Laboratories Inc. and UpJohn International Inc., currently owned by
Pfizer. In 1984, Mr. Gauthier joined BioMega / Boehringer Ingelheim
Research Inc. where he served as president and general manager until
1996.





Mr.
Michel Carrier has held various senior management positions in marketing and
sales over the past 25 years. His vast experience and innovative marketing
methods make him a great asset as a member of MIT’s Advisory Board.





MIT
President and CEO, Mr. Karim Menassa, believes that the nomination and
acceptance by Mr. Gauthier and Mr. Carrier is a very important and positive step
for the immediate and future success of the company.


On
February 4th, 2010, we appointed Mr. Harold Gervais as the 3rd member to join
the newly-formed Advisory Board. Furthermore, Mr. Gervais will also hold the
position of Vice-President and part-time Chief Financial Officer at Medical
International Technology Inc.


Mr.
Harold Gervais, MBA, has more than 25 years of experience in managing businesses
of all sizes. He was Executive Vice President and CFO of ABB Canada and CIO of
ABB Americas. ABB is one of the world’s leader in power and automation
engineering company with revenues of 35Bn in 2008.








-13-







Medical
International Technology, Inc.





Moreover,
Mr. Gervais has held financial and human resources management position at
Kimberly-Clark. Kimberly Clark is leading the world in essentials for a better
life with revenues of 19.1 Billion in 2009.





Mr.
Gervais completed many integration projects, realized the restructuring of
different organizations and the optimization of different accounting systems. He
has also completed several turnaround and financing mandates. Throughout the
years he has developed an expertise for the creation and the execution of
realistic action plans that deliver expected results. He currently sits on the
board of directors of several companies.





The
nomination and acceptance by Mr. Harold Gervais to join MIT’s Advisory Board and
his assuming the position of Vice-President and Chief Financial Officer of
Medical International Technology Inc. will strengthen MIT’s management team. The
addition of Mr. Gervais serves to better control the company’s overall
operations, including the Chinese Joint Venture, in order to reach our
objectives in sales and profits for the coming years.





On
February 9th, 2010, we appointed Dr. Francis Bellido, PhD, MBA, as the 4th
member to join the newly-formed Advisory Board. Mr. Bellido will also hold the
position of Vice-President and Chief Strategy Officer.


Dr.
Francis Bellido has more than 25 years of experience in the Biosciences and
Financial industries. He has held several top executive positions in both small
and large companies. He was President and Chief Operating Officer at
Supratek Pharma, a pharmaceutical company specializing in the development of
cancer drugs. While President and Chief Executive Officer of SGF-Santé he
managed a $500M health science investment portfolio. Dr. Bellido has also held
several executive positions with Eli Lily in the United States and Europe
including Strategic Asset Director, Global Business Unit Manager and Head of
Regulatory Affairs. Dr. Bellido also received a Masters degree in Pharmaceutical
Sciences and a Ph.D. in Medical Microbiology from the University of Geneva in
Switzerland. He received his MBA from the University of Montréal. He has held
the position of Invited Professor at the School of Management of the University
of Québec in Montréal.





The
nomination and acceptance by Dr. Francis Bellido to join MIT’s Advisory Board
and his assuming the position of Vice-President and Chief Strategy Officer of
Medical International Technology Inc. will strengthen MIT’s management team. The
addition of Dr. Bellido will also enrich negotiation opportunities with Medical
and Pharmaceutical companies and help MIT achieve its goal to partner with
multinational corporations.


The
creation of a multi-functional Advisory Board, which, when completed, will be
composed of many individuals from diverse backgrounds, will serve to strengthen
the management of Medical International Technology Inc. in support to the
President and Chief Executive Officer Mr. Karim Menassa. Our goal is to increase
efficiency and take further advantage of the opportunities ahead in the global
market of needle-free jet-injector for human and animal
applications.


Business
Development
 
 Expanding the product
line:
 
 Medical
International Technology Inc. has been considerably expanding financial
resources in R&D in the last 5 years, having spent several millions of
dollars. MIT already has 5 products for the human market and 9 products for the
animal market. The company will soon be unveiling two new additions to its human
product line and one for its animal line.


MIT’s
patented technology has received approval in several countries world wide. These
three new products are no exception. The company will continue working towards
obtaining FDA approval, which is expected in the last quarter of this
year.





MIT
products pipeline is already defined for 2010/2011; the realisation of these new
products design will be achieved by new finance to MIT and or a partnership with
Medical and Pharmaceutical Companies.





New products for human diabetes,
dentistry and poultry applications and their market
potentials:





Diabetes


The International Diabetes
Federation states that the diagnosis rate of diabetes has increased over the
last two decades from 30 million to 246 million people with a disproportionate
ratio coming from the United States, India, and China.





-14-







Medical
International Technology, Inc.








Medical
International Technology Inc. is targeting this huge market with their newly
developed Med-Jet model MIT-P-I within the next 8 to 10 month. “With our
successful Chinese joint venture, MIT intends to introduce this new product in
China first, thereafter we will have enough production capacity to sell all over
the world”, said Mr. Karim Menassa. The Med-Jet MIT-P-I is designed to be safe,
precise, accurate, effective, easy to use and friendly to the
environment.





Dentistry


According
to the World Health Organization (WHO) statistics, last updated 26 October 2004,
the number of dentists in the world was numbered in the millions. There are
234,104 registered Dentist in the USA, 18,861 in Canada, 50,920 in China and it
is estimated that 400,000 will be needed by 2030. Statistics show there is an
estimated average of 6 to 10 dentists for every 10,000 people in
Europe.





It is
estimated that 150,000 U.S. dentists could administer about 120 million doses of
local Anaesthetics per year for the gums, for a total market of about $3.5
billion.





Medical
International Technology Inc. is targeting this lucrative market with their
Med-Jet model MIT-H-VI within the next 12 to 16 month. MIT intends to introduce
this new product in North America first; other countries will follow shortly
after. In the Dental Office, painful needle injections are enough to make even
the most rational person skip dental visits. The Med-Jet MIT-H-VI will finally
bring an end to traumatic dental visits.


Poultry
Vaccinations
 MIT’s
newly designed Agro-Jet model MIT-XII will help prevent the spread of deadly
diseases by providing a needle-free alternative to the vaccination of billions
of day-old baby chicks yearly. This high speed vaccinator will be able to inject
thousands of birds per hour safely, precisely, accurately, effectively, with
ease of use and friendly to the environment.
 
 
 Chinese Joint
Venture:
 
 In June
of 2009, the company entered in a Joint Venture with Chinese partners and on
February 10th, 2010, its Chinese Joint Venture has received the production
certification to produce Med-Jet products in China.


MIT
China’s production facilities were the subject of a recent visit by the SFDA.
These facilities were deemed suitable for medical device manufacturing,
including the production of disposable accessories, by the SFDA and have
therefore been granted a production certification.





Clinical
trials of Med-Jet models MIT-MBX and MIT-H-III are set to begin in the near
future. The obtainment of the production certification for human products
together with the results from the clinical trials will represent an essential
stepping-stone toward the ultimate goal of obtaining a licence to sell our
Med-Jet injectors in China.








-15-







Medical
International Technology, Inc.





Projected
Sales and Market Breakdown
 On
February 6th 2010 we announced in our Corporate Update that the company firmly
believes it will grow revenues well past US$ 75,000,000 annually within the next
three years. The following information will outline market expectations by
category and timeframe:
 
 Human
applications:
 Our
initial target market for the first year is cosmetic Dermatology, Plastic
surgery, and General Practitioner for single and mass injections, using Med-Jet
models MIT MBX and MIT-H-III. The second year, in addition to the previous
models, the introduction of model MIT-H-IV-1 and MIT-H-IV-5 will target private
clinics and hospitals. During the third year, the injector for Diabetics, MIT
P-I, and the Dental injector, MIT-H-VI, will be introduced and will drastically
increase sales to achieve and exceed its forecasted US$ 55,000,000.
 
 Animal
applications:
 Our
initial target market for the first year is the pork, cattle, and poultry
markets, using our existing and newly redesigned products for mass animal
vaccination. The second year in addition to the previous models, MIT will
introduce and market its day-old baby chicken injector, a highly-requested
product by farmers around the world. During the third year, MIT will present 2
more new products expected to drastically increase sales to achieve and exceed
its forecasted US$ 20,000,000.
 
 Chinese
Partner


Since its
establishment in 1990, Jiangyin Lanling Bottle Stoppers Co., Ltd. (one of the
members of Hualan Group) has grown to be the leading medical packaging material
manufacturer in China with an extensive product range, unparalleled
manufacturing scale, leading edge technologies and national recognition as a
highly-valued technology enterprise. Lanling is also the leading butyl rubber
stopper producer in the Asia Pacific region. Mr. Hua Guoping, President and
Chairman of Hualan Group, will be working with Medical International
Technology.





China
joint venture


The
creation of the joint venture named Jiangsu Hualan MIT Medical Technology (MIT
CHINA) Ltd., in June of 2009, has given MIT a unique advantage to expand its
production operations and increase its sales and profits in the multi-billion
dollar worldwide needle-free injector market. The joint venture also gives MIT
the opportunity to achieve its goals for the short and long-term
future.





Furthermore,
MIT China venture will help Medical International Technology Inc. supply large
production volumes in lesser time, which will attract large medical and
pharmaceutical partners. Mr. Menassa’s meetings with suppliers in China were
successful and represent an important step towards reducing production cost
without compromising quality.





The
introduction of our Agro-Jet needle-free injector for animal application is
going very well; our veterinary staff is doing an excellent job training our
Distributors in the different provinces. These efforts will result in sales
growth for the coming months and years.





Mr.
Menassa’s meeting with SFDA personnel was very positive. The construction of a
class 10,000 cleanroom lab, recommended by the SFDA, was completed on January
29, 2010. Having received certification for our production facilities earlier
this week brings us a step closer to our goal of beginning production of our
Med-Jet line of products and all the disposable accessories in China for the
Chinese market.





Mr.
Menassa, together with his Chinese partners, also had successful meetings with
two hospitals in the city of Shanghai recommended by SFDA personnel for clinical
trials with Med-Jet models MIT-MBX and MIT-H-III. Our goal is to complete our
clinical trials in June of 2010 and start marketing and selling in July
2010.





Medical
International Technology Inc. objective is to ensure that its injectors become
an indispensable, environmentally friendly product for doctors, dentists,
veterinarians and home users around the world.








-16-







Medical
International Technology, Inc.







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


Results
of Operations





Results of Operations for
the Three-Months ended December 31, 2009 and 2008





For the
three-month period ended December 31, 2009, the Company experienced a net loss
from operations of  $287,825 which was primarily due to research and
development costs of  $152,467 and selling, general and administrative
expenses of  $283,274. Gross profits for the period were
$153,572.





For the
three-month period ended December 31, 2008, the Company experienced a net loss
from operations of  $580,402 which was primarily due to research and
development costs of  $450,000 and selling, general and administrative
expenses of  $150,378. Gross profits for the period were
$19,305.





The
reduced net loss between the comparable quarters was due to increased sales as
the Company continues to push its products into the market along with reduced
research and development costs. Sales for the three-month period ending December
31, 2009 were $208,563 compared to sales of $70,915 for the same period last
year. Gross profits for the period ending December 31, 2008 represented 73% of
sales, where gross profits for the same period last year represented 27% of
sales. This is primarily a result of the Company experiencing more steady sales
beginning in the last quarter of fiscal 2009.  Research and
development costs decreased primarily as a result of the expiration of the Idee
contract, which is currently on a month to month renewal at $50,000 per month,
as compared to a monthly charge in the prior quarter of $150,000 per
month.





Liquidity
and Capital Resources





For the
three-month period ending December 31, 2009, the Company’s cash position
increased to $82,648. Net cash used in operating activities was $139,520,
primarily as a result of the Company’s net loss offset by common stock issued
for services of $123,000; financing activities provided $219,818, which was
primarily as a result of increases in amounts due to related
parties.  Cash used by investing activities was $10,437, which was
entirely additional capital invested in the MIT China joint venture. The effect
of exchange rates on cash reduced cash balances by $64,674.





For the
three-month period ending December 31, 2008, the Company’s cash position was
$11,704. Net cash used in operating activities was $438,218, primarily due to
the Company’s net loss during the period. Financing activities provided
$191,446, entirely from increased borrowings from related parties. The effect of
exchange rates on cash increased cash balances by $168,734.





Plan
of Operations





We are
engaged in the business of research, development, marketing and sales of
needle-free jet injector technology and products for humans and animals, for
single and mass injections.





We
continue to market our product in all available markets, seek regulatory
approvals to expand those market opportunities and improve our products for
application to new markets.





We have
recently completed several rounds of financing resulting in net proceeds to the
company of approximately $1,287,520 and continues efforts to secure additional
funding to support and expand operations.   Funds from these
sales of our common stock are being used to fund continued operations, develop
and seek regulatory approvals for our products and market those products
worldwide.





We will
continue to seek additional funding to expand operations and develop sales
revenue to a volume sufficient to sustain operations.





-17-








Medical
International Technology, Inc.





Product
Development





We have
filed for FDA approval for its needle-free injector – the MED-JET, designed
specifically for human mass inoculations. The MED-JET is capable of delivering
many types of medications such as vaccines, insulin and other types of
injectables. Its low-pressure technology offers an advantage to alternative high
pressure systems that can cause blowbacks and expose medical workers and
patients alike to microscopic traces of blood.





According
to the International Sharps Injury Prevention Society (http://www.isips.org), it
has been estimated that one out of every seven workers is accidentally stuck by
a contaminated sharp point each and every year. The Center for Disease Control
(CDC: http://www.cdc.gov/niosh/2000-108.html#5) estimates that there are 600,000
to 800,000 needle stick injuries per year in the U.S. alone, and many are not
reported. More than 20 types of infectious agents have been transmitted through
needlesticks, including hepatitis B and C, tuberculosis, syphilis, malaria,
herpes, diphtheria, gonorrhea, typhus and Rocky Mountain spotted fever. The
MED-JET will eliminate this risk to our health care professionals and create a
safer workplace. Other advantages include its light weight (0.5 kg) and an
excellent medication absorption rate. Additionally, the system has the ability
to increase or decrease the volume and pressure of injection. This technology is
unique to MIT’s MED-JET MBX Injector. The system is designed to inject up to 600
individuals an hour.





The
approval process can be expensive and may take extended period of time. There
can be no assurance that this system will receive approval from the FDA or if
approved gain broad acceptance by the medical community or individual
patients.





On
December 15, 2005, we received full certification granted under the
International Organization for Standardization, as well as the Canadian Medical
Device Conformity Assessment System, for devices to be licensed by HEALTH
CANADA. These certifications allow MIT to market the Med-Jet Needle-Free
Injector for human use in all countries other than the U.S., at this point. The
Med-Jet injector has been submitted for FDA approval which, if accepted, will
allow MIT to sell the Med-Jet in the United States, making it a truly worldwide
system.





MIT's
Needle-Free Injection System, designed specifically to allow fast, accurate and
safe injections, is rapidly moving toward establishing itself as a valuable
instrument in the fight against disease in both humans and animals. Spurred on
by growing fears of a world wide epidemic that could match or even exceed the
deadly flu pandemic of 1918, which killed millions of people, the MIT team is
focusing its efforts to make its Needle-Free Injection System available to the
world.





Now that
MIT is able to sell its Med-Jet in all countries, other than the U.S., it is
working to complete two FDA filings. The first of these will be for use of the
Med-Jet for injecting anesthesia in a variety of situations. The second, and
most significant in light of the news coming out of Asia concerning the spread
of Influenza A (H5N1) to humans, will be the Med-Jet-H, for mass vaccination in
case of a pandemic, such as Avian Influenza, Polio, Tuberculosis, Malaria or
HIV.





MIT is
also pursuing increasing interest in its Agro-Jet needle-free injector. Having
the same benefits as Med-Jet, Agro-Jet will become a valuable instrument in the
fight against Avian Flu via its ability to mass inoculate animals at over 1000
injections per hour.





On
December 22, 2005 we announced that as part of its continuing restructuring
program MIT is forming two divisions. The Human Medical Technology Division will
focus on the development, production, marketing and sale of needle-free
injectors and other medical technologies for humans. The Animal Medical
Technology Division will deal with all aspects of the development, production,
marketing and sale of the needle-free injectors and other technologies for
animal applications worldwide.





Off
Balance Sheet Arrangements





We have
no significant off-balance sheet arrangements that have or are reasonably likely
to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to our
stockholders.








-18-







Medical
International Technology, Inc.








Item
3.   Quantitative and Qualitative Disclosures About Market
Risk





Not
required for Smaller Reporting Companies.





Item
4T.   Controls and Procedures





(a)
Evaluation of disclosure controls and procedures.





The
principal executive officer and principal financial officer have evaluated our
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act) as of December 31, 2009.  Based on this
evaluation, they have concluded that our disclosure controls and procedures were
effective to ensure that the information required to be disclosed by us in
reports that we file or submit under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
in the Commission’s rules and forms, and to ensure that information required to
be disclosed by us in the reports that we file or submit under the Securities
Exchange Act of 1934 is accumulated and communicated to our management,
including our principal executive and principal financial officers, to allow
timely decisions regarding required disclosure.





(b) Changes
in internal controls.





No change
in our internal controls over financial reporting (as defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act) occurred during the six month period ended
December 31, 2009 that has materially affected, or is reasonably likely to
materially affect, our internal controls over financial reporting.








-19-








PART
II OTHER INFORMATION








Item
1.   Legal Proceedings





We are
currently not involved in any litigation that we believe could have a material
adverse effect on our financial condition or results of operations. There is no
action, suit, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the executive officers of our company or any of our
subsidiaries, threatened against or affecting our company, our common stock, any
of our subsidiaries or of our companies or our subsidiaries’ officers or
directors in their capacities as such, in which an adverse decision could have a
material adverse effect.





Item
1A. Risk Factors





Not
required for Smaller Reporting Companies.





Item
2.   Unregistered Sales of Equity Securities and Use of
Proceeds





None.





Item
3.   Defaults upon Senior Securities





None.





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





None.





Item
5.   Other information





None.





Item
6.   Exhibits





Exhibits





31.1           Certification
of Principal Executive Officer and Principal Accounting Officer pursuant to Rule
13a-14(a)/15(d)-14(a).





32.1           Certification
of Principal Executive Officer and Principal Accounting Officer pursuant to
18U.S.C. Section 1350.














-20-








SIGNATURES





In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.




Medical International
      Technology, Inc.Date:
      February 16, 2010
              By:
              /s/ Karim
      MenassaKarim
      MenassaPresident
      and Principal Executive OfficerInterim
      Secretary and Chief Financial Officer