----

----

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

----

| PART I.    FINANCIAL INFORMATION                                                                                   |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                   |   |
| Item 1.      Consolidated Financial Statements                                                                | 3      |
|                                                                                                                                   |   |
| Consolidated Balance Sheet                                                                                                             | 3      |
|                                                                                                                                   |   |
| Consolidated Statements of Operations,                                                                                                 | 5      |
|                                                                                                                                   |   |
| Consolidated Statements of Cash Flows                                                                                                  | 6      |
|                                                                                                                                   |   |
| Consolidated Statements of Comprehensive Loss                                                                                          | 7      |
|                                                                                                                                   |   |
| Consolidated Statement of Stockholders’ (Deficit)                                                                                | 8      |
|                                                                                                                                   |   |
| Notes to Unaudited Consolidated Financial Statements                                                                                   | 9      |
|                                                                                                                                   |   |
| Item 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations | 13     |
|                                                                                                                                   |   |
| Item 3.       Quantitative and Qualitative Disclosures About Market Risk                            | 18     |
|                                                                                                                                   |   |
| Item 4T.       Controls and Procedures                                                              | 18     |
|                                                                                                                                   |   |
| Part II. OTHER INFORMATION                                                                                                             |   |
|                                                                                                                                   |   |
| Item 1        Legal Proceedings                                                                | 19     |
|                                                                                                                                   |   |
| Item 1A.    Risk Factors                                                                                                | 19     |
|                                                                                                                                   |   |
| Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds                           | 19     |
|                                                                                                                                   |   |
| Item 3.       Defaults upon Senior Securities                                                       | 19     |
|                                                                                                                                   |   |
| Item 4.       (Removed and Reserved)                                                                | 19     |
|                                                                                                                                   |   |
| Item 5.       Other Information                                                                          | 19     |
|                                                                                                                                   |   |
| Item 6.       Exhibits                                                                              | 19     |
|                                                                                                                                   |   |
| SIGNATURES                                                                                                                             | 20     |
|                                                                                                                                   |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|              |   | June 30,2010 |     |   | September 30,2009 |   |
|--------------------------------------------------------------------------|--------|--------------|----------|--------|-------------------|--------|
|                                                                     |   | (Unaudited)  |     |   | (Audited)         |   |
| Assets                                                                   |   |         |     |   |              |   |
| Current Assets                                                           |   |         |     |   |              |   |
| Cash and cash equivalents                                                |   | $            | 109,892  |   |              | $      | 77,461 |   |
| Accounts receivable                                                      |   |         | 11,960   |   |              |   | 5,425 |   |
| Inventories                                                              |   |         | 236,668  |   |              |   | 220,139 |   |
| Prepaid expenses                                                         |   |         | 5,992    |   |              |   | 5,040 |   |
|                                                                     |   |         |     |   |              |   |   |   |
| Total Current Assets                                                     |   |         | 364,512  |   |              |   | 308,065 |   |
|                                                                     |   |         |     |   |              |   |   |   |
|                                                                     |   |         |     |   |              |   |   |   |
| Long Term Investment                                                     |   |         |     |   |              |   |   |   |
| Investment in MIT China Joint Venture                                    |   |         | 368,224  |   |              |   |          426,678 |   |
|                                                                     |   |         |     |   |              |   |   |   |
| Property and Equipment                                                   |   |         |     |   |              |   |   |   |
| Tooling and machinery                                                    |   |         | 293,225  |   |              |   | 290,053 |   |
| Furniture and office equipment                                           |   |         | 137,488  |   |              |   | 136,001 |   |
| Leasehold improvements                                                   |   |         | 28,286   |   |              |   | 27,980 |   |
|                                                                     |   |         | 458,999  |   |              |   | 454,033 |   |
|                                                                     |   |         |     |   |              |   |   |   |
| Less accumulated depreciation                                            |   |         | (434,235 | )      |              |   | (416,409 | ) |
|                                                                     |   |         | 24,764   |   |              |   | 37,624 |   |
| Other Assets                                                             |   |         |     |   |              |   |   |   |
| Patents (net of accumulated amortization of $5,761 and $2,577)           |   |         | 15,464   |   |              |   | 8,387 |   |
|      Total assets                               |   | $            | 772,964  |   |              | $      | 780,754 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                             |   |
|----------------------------------------------------------------------------------|--------|
|                                                                             |   |
| CONSOLIDATED BALANCE SHEET                                                       |   |
|                                                                             |   |
|                                                                             |   |   |   |   |   |   |
|                                                                             |   | June 30 2010 |   |   | September 30 2009 |   |
|                                                                             |   | (Unaudited) |   |   | (Audited) |   |
| Liabilities and Stockholders' Equity (Deficit)                                   |   |   |   |   |   |   |
| Current Liabilities                                                              |   |   |   |   |   |   |
|         Deferred income                       |   |  $ | 1,105,868 |   |   |  $ | 1,226,396 |   |
|         Accounts payable and accrued expenses |   |   | 164,932 |   |   |   | 388,903 |   |
|         Amounts due to related parties        |   |   | 175,899 |   |   |   | 3,332,463 |   |
|         Current portion of long-term debts    |   |   | 608 |   |   |   | 6,014 |   |
|                                                                             |   |   | 1,447,307 |   |   |   | 4,953,776 |   |
|         Long-Term Debts                       |   |   | - |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Liabilities                                                                |   |   | 1,447,307 |   |   |   | 4,953,776 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Stockholders' Equity (Deficit)                                                   |   |   |   |   |   |   |   |   |
| Preferred stock, $.0001 par value; 3,000,000 shares authorized;                  |   |   |   |   |   |   |   |   |
| None issued and outstanding as of December 31, 2007                              |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Common stock, $.0001 par value; 100,000,000 shares authorized;                   |   |   |   |   |   |   |   |   |
| 62,297,795 and 59,087,795 shares issued and                                      |   |   |   |   |   |   |   |   |
| Outstanding, respectively                                                        |   |   | 6,230 |   |   |   | 5,909 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Additional paid-in capital                                                       |   |   | 11,536,538 |   |   |   | 7,699,478 |   |
| Deficit                                                                          |   |   | (12,432,827 | ) |   |   | (11,667,623 | ) |
| Other comprehensive income (loss)                                                |   |   | 215,716 |   |   |   | (210,786 | ) |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Stockholders' Equity (Deficit)                                             |   |   | (674,343 |  ) |   |   | (4,173,022 |  ) |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity (Deficit)                             |   |  $ | 772,964 |   |   | $ | 780,754 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                    |   | Three-Months PeriodEnded June 30, |       |   | Nine-Months Period Ended June 30, |   |
|-------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|----------------------------------------|--------|
|                                                                    |   | 2010(Unaudited)                   |       |   | 2009(Unaudited)                        |   |   | 2010(Unaudited) |   |   | 2009(Unaudited) |   |
| Sales                                                                   |   | $                                 | 161,773    |   |                                   | $      | 234,060 |   |   | $ | 514,893 |   |   | $ | 392,977 |   |
| Cost of sales                                                           |   |                              | (65,392    | )      |                                   |   | (62,820 | ) |   |   | (163,971 | ) |   |   | (148,581 | ) |
| Gross profit (loss)                                                     |   |                              | 96,381     |   |                                   |   | 171,240 |   |   |   | 350,922 |   |   |   | 244,396 |   |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development costs                                          |   |                              | (65,194    | )      |                                   |   | (581,373 | ) |   |   | (141,678 | ) |   |   | (1,481,373 | ) |
| Selling, general, and administrative expenses                           |   |                              | (100,257   | )      |                                   |   | (171,085 | ) |   |   | (897,458 | ) |   |   | (437,323 | ) |
|                                                                    |   |                              | (165,451   | )      |                                   |   | (752,485 | ) |   |   | (1,039,136 | ) |   |   | (1,918,696 | ) |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss from operations                                              |   |                              | (69,070    | )      |                                   |   | (581,218 | ) |   |   | (688,214 | ) |   |   | (1,674,300 | ) |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)Equity earnings (loss) on MIT China Joint Venture |   |                              | (18,814)   |   |                                   |   | -  |   |   |   | (68,891 | ) |   |   | -  |   |
| Interest                                                                |   |                              | -          |   |                                   |   | 1,361 |   |   |   | - |   |   |   | 1,875 |   |
| Interest expense                                                        |   |                              | (1,622     | )      |                                   |   | (848 | ) |   |   | (8,098 | ) |   |   | (2,027 | ) |
|                                                                    |   |                              | (20,436    | )      |                                   |   | 513 |   |   |   | (76,989 | ) |   |   | (152 | ) |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                |   | $                                 | (89,506    | )      |                                   | $      | (580,705 | ) |   | $ | (765,203 | ) |   | $ | (1,674,452 | ) |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic (loss) per share                                                  |   | $                                 | (0.001     | )      |                                   | $      | (0.01 | ) |   | $ | (0.01 | ) |   | $ | (0.029 | ) |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding                               |   |                              | 62,297,795 |   |                                   |   | 57,344,375 |   |   |   | 62,297,795 |   |   |   | 57,344,375 |   |
|                                                                    |   |                              |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                                        |   | Nine-Month Period Ended |                                                            |
|---------------------------------------------------------------------------------------------|--------|-------------------------|-----------------------------------------------------------------|
|                                                                                        |   | June 30,                |                                                            |   | June 30, |   |
|                                                                                        |   | 2010                    |                                                            |   | 2009 |   |
| Cash flows from operating activities:                                                       |   |                    |                                                            |   |   |   |
| Net loss                                                                                    |   | $                       | (765,203                                                        | ) |   | $ | (1,674,452 | ) |
| Adjustments to reconcile net loss to net cash                                               |   |                    |                                                            |   |   |   |   |   |
|   provided by (used in) operating activities:                                     |   |                    |                                                            |   |   |   |   |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
|     Equity loss from MIT China Joint Venture                            |   |                    |        68,891                |   |   |   |                        - |   |
|     Depreciation and amortization expense                               |   |                    | 16,456                                                          |   |   |   | 34,031 |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
|     Common stock issued for services                                    |   |                    | 333,400                                                         |   |   |   | 2,400 |   |
|     Related party payables settle by common stock                       |   |                    |                                                            |   |   |   |        628 |   |
|     Capitalization of related party debts                               |   |                    |          3,403,981 |   |   |   |   |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
| Changes in:                                                                                 |   |                    |                                                            |   |   |   |   |   |
|     Accounts receivable                                                 |   |                    | (6,535                                                          | ) |   |   | (31,251 | ) |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
|     Inventories                                                         |   |                    | (16,529                                                         | ) |   |   | (22,159) |   |
|     Prepaid expenses                                                    |   |                    | (952                                                            | ) |   |   | 8 |   |
|     Accounts payable and accrued liabilities                            |   |                    | (223,971                                                        | ) |   |   | 205,590 |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
|     Deferred income                                                     |   |                    | (120,528                                                        | ) |   |   | (118,782 | ) |
|          Net cash used by operating activities |   |                    | 2,689,010                                                       |   |   |   | (1,603,987 | ) |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                    |                                                            |   |   |   |   |   |
|     Acquisition of patents                                              |   |                    | (10,169                                                         | ) |   |   | - |   |
|     Investment in MIT China joint venture                               |   |                    | (10,437                                                         | ) |   |   | (406,100 | ) |
|     Tooling and machinery                                               |   |                    | -                                                               |   |   |   | - | ) |
|         Net cash used by investing activities       |   |                    | (20,606                                                         | ) |   |   |           (406,100 | ) |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |                    |                                                            |   |   |   |   |   |
|    Proceeds from issuance of stock, net                                      |   |                    | 100,000                                                         |   |   |   | 649,543 |   |
|    Decrease in amounts due to related parties                                |   |                    | (3,156,564                                                      | ) |   |   | 1,299,749 |   |
|    Issuance of notes payable                                                 |   |                    | -                                                               |   |   |   | - |   |
|    Repayment on notes payable                                                |   |               |         (5,406          | ) |   |    |        (7,887 | ) |
|         Net cash provided from financing activities |   |                    | (3,061,970                                                      | ) |   |   | 1,941,405 |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
| Effect of exchange rates                                                                    |   |                    | 425,997                                                         |   |   |   | 73,957 |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
|                                                                                        |   |                    |                                                            |   |   |   |   |   |
| Increase (decrease) in cash                                                                 |   |                    | 32,431                                                          |   |   |   | 5,275 |   |
| Cash, beginning of period                                                                   |   |                    | 77,461                                                          |   |   |   | 94,834 |   |
| Cash, end of period                                                                         |   | $                       | 109,892                                                         |   |   | $ | 100 109 |   |
| Supplemental disclosure of cash flow information:                                           |   |                    |                                                            |   |   |   |   |   |
|     Cash paid for interest                                              |   | $                       | 8,099                                                           |   |   | $ | 2,027 |   |
|     Cash paid for federal income taxes                                  |   | $                       | -                                                               |   |   | $ | - |   |
| Supplemental disclosure of non-cash transactions                                            |   |                    |                                                            |   |   |   |   |   |
|    Common stock issued for debt reductions                                   |   | $                       | -                                                               |   |   | $ | - |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                 |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                        |   |
|                                                                 |   | Nine Months EndedJune 30,2010 |   |   | Nine Months EndedJune 30,2009 |   |
| Net loss                                                             |   | $ | (765,203 | ) |   | $ | (1674,452 | ) |
| Other comprehensive income (loss)                                    |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                              |   |   | 426,501 |   |   |   | 13,513 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|        Net comprehensive income (loss) |   | $ | (338,702 | ) |   | $ | (1,661,137 | ) |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                    |   |
|---------------------------------------------------------|--------|
|                                                    |   |
| CONSOLIDATED STATEMENT OF STOCKHOLDERS’ (DEFICIT) |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | Common Stock |   |   | Additional Paid in |   |
|                                                    |   | Shares |   |   | Amount |   |   | Capital |   |   | Deficit |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – 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 |   |   |   | 127 |   |   |   | 122,873 |   |   |   | - |   |
| Net loss for the period ended December 31, 2009         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (137,825 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – December 31, 2009                       |   |   | 60,357,795 |   |   | $ | 6,035 |   |   | $ | 7,822,351 |   |   | $ | (11,805,448 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services                              |   |   | 1,315,000 |   |   |   | 132 |   |   |   | 210,268 |   |   |   | - |   |
| Shares issued for cash                                  |   |   | 625,000 |   |   |   | 63 |   |   |   | 99,937 |   |   |   | - |   |
| Net loss for the period ended March 31, 2010            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (400,565 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance March  31, 2010                       |   |   | 62,297,795 |   |   | $ | 6,230 |   |   | $ | 8,132,556 |   |   | $ | (11,805,448 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Shares issued for cash                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net loss for the period ended June 30, 2010             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (226,813 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalization of related party debts                   |   |   |   |   |   |   |   |   |   |   | 3,403,982 |   |   |   | - |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Balance – June 30, 2010                           |   |   | 62,297,795 |   |   |   | 6,230 |   |   |   | 11,536,538 |   |   |   | (12,432,826 | ) |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|            |   | June 30,2010 |    |   | September 30,2009 |   |
|-----------------|--------|--------------|---------|--------|-------------------|--------|
| Raw materials   |   | $            | 176,606 |   |              | $      | 165,193 |   |
| Work in process |   |         | 51,033  |   |              |   | 42,939 |   |
| Finished goods  |   |         | 9,029   |   |              |   | 12,007 |   |
| Total           |   | $            | 236,668 |   |              | $      | 220,139 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|    |   | GrossIntangibleAssets |   |   | Accumulated Amortization |   |   | Net IntangibleAssets |   | WeightedAverageLife(Years) |
|---------|--------|-----------------------|--------|--------|--------------------------|--------|--------|---------------------------|--------|----------------------------|
| Patents |   | $                     | 21,225 |   |                     | $      | 5,761  |                      |   | $                          | 15,464 |   | 8.5 through 16 |

|                                        |   | June 30,2010 |    |   | September 30,2009 |   |
|---------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| Payable to Idee International R&D, Inc. |   | $            | ---     |   |              | $      | 3,332,463 |   |
| Payable to related parties                  |   |         | 175,899 |   |              |   |   |   |
|                                        |   | $            | 175,899 |   |              | $      | 3,332,463 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                                                 |   | June 30,2010 |   |   | September 30,2009 |   |
|------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-------------------|--------|
|                                                                                                 |   |         |   |   |              |   |
| Note payable to a bank, bearing interest at prime plus 2.5%, secured by equipment, due July 21, 2010 |   |         |   |   |              |   |
|                                                                                                 |   | $            | 608    |   |              | $      | 6,014 |   |
|                                                                                                 |   |         |   |   |              |   |   |   |
|                                                                                                 |   |         |   |   |              |   |   |   |
| Current portion of long-term debt                                                                    |   |         | (608)  |   |              |   | (6,014 | ) |
|                                                                                                 |   |         |   |   |              |   |   |   |
|                                                                                                 |   |         |   |   |              |   |   |   |
| Long-term debt                                                                                       |   | $            | -      |   |              | $      | - |   |
|                                                                                                 |   |         |   |   |              |   |   |   |

----

----

----

----

----

----

----

----

|                                                | Medical International Technology, Inc. |                                          |
|-----------------------------------------------------|----------------------------------------|-----------------------------------------------|
|                                                |                                   |                                          |   |
| Date: August 13, 2010      | By:                                    | /s/ Karim Menassa                   |   |
|                                                |                                   | Karim Menassa                                 |   |
|                                                |                                   | President and Principal Executive Officer     |   |
|                                                |                                   | Interim Secretary and Chief Financial Officer |   |