----

----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Nevada                                   |   | 98-0539775          |
|------------------------------------------|--------|---------------------|
| (State or other jurisdiction of          |   | (I.R.S. Employer    |
| incorporation or organization)           |   | Identification No.) |
|                                     |   |                |
| 9192 Red Branch Road, Suite 110          |   |                |
| Columbia, Maryland                       |   | 21045               |
| (Address of principal executive offices) |   | (Zip Code)          |

| Large accelerated filer                                             |  ̈ | Accelerated filer         |  ̈ |
|---------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                |   |                      |   |
| Non-accelerated filer (Do not check if a smaller reporting company) |  ̈ | Smaller reporting company | x      |

----

----

----

| PART I FINANCIAL INFORMATION                                                                  |   |
|-----------------------------------------------------------------------------------------------|--------|
|                                                                                          |   |
| Item 1. Financial Statements (Unaudited)                                                      |   |
|                                                                                          |   |
| Balance Sheets                                                                                | 3      |
|                                                                                          |   |
| Statements of Operations                                                                      | 4      |
|                                                                                          |   |
| Statements of Stockholders’ Equity (Deficit)                                            | 5      |
|                                                                                          |   |
| Statements of Cash Flows                                                                      | 6      |
|                                                                                          |   |
| Notes to Financial Statements                                                                 | 7      |
|                                                                                          |   |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 10     |
|                                                                                          |   |
| Item 4. Controls and Procedures                                                          | 14     |
|                                                                                          |   |
| PART II OTHER INFORMATION                                                                     |   |
|                                                                                          |   |
| Item 1. Legal Proceedings                                                                     | 15     |
|                                                                                          |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                           | 15     |
|                                                                                          |   |
| Item 3. Defaults Upon Senior Securities                                                       | 15     |
|                                                                                          |   |
| Item 5. Other Information                                                                     | 15     |
|                                                                                          |   |
| Item 6. Exhibits                                                                              | 15     |
|                                                                                          |   |
| Signatures                                                                                    | 16     |
|                                                                                          |   |
| Certifications                                                                                |   |

----

|                                                                                                                                  |   | May 31, |     |   | August 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------|----------|--------|------------|--------|
|                                                                                                                                  |   | 2011    |     |   | 2010       |   |
|                                                                                                                                  |   |    |     |   |       |   |
| ASSETS                                                                                                                                |   |    |     |   |       |   |
| Current assets                                                                                                                        |   |    |     |   |       |   |
| Cash and cash equivalents                                                                                                             |   | $       | 122,502  |   |       | $      | 168,464 |   |
| Prepaid expenses                                                                                                                      |   |    | 4,326    |   |       |   | - |   |
| Total current assets                                                                                                                  |   |    | 126,828  |   |       |   | 168,464 |   |
|                                                                                                                                  |   |    |     |   |       |   |   |   |
| Total assets                                                                                                                          |   | $       | 126,828  |   |       | $      | 168,464 |   |
|                                                                                                                                  |   |    |     |   |       |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                  |   |    |     |   |       |   |   |   |
|                                                                                                                                  |   |    |     |   |       |   |   |   |
| Current liabilities                                                                                                                   |   |    |     |   |       |   |   |   |
| Accounts payable                                                                                                                      |   | $       | 1,089    |   |       | $      | 1,766 |   |
| Total current liabilities                                                                                                             |   |    | 1,089    |   |       |   | 1,766 |   |
|                                                                                                                                  |   |    |     |   |       |   |   |   |
| Stockholders' equity                                                                                                                  |   |    |     |   |       |   |   |   |
| Common stock: $0.0001 par value; 300,000,000 shares authorized, 53,864,600 issued and outstanding at May 31, 2011 and August 31, 2010 |   |    | 5,386    |   |       |   | 5,386 |   |
| Additional paid-in capital                                                                                                            |   |    | 556,711  |   |       |   | 556,711 |   |
| Deficit accumulated during the development stage                                                                                      |   |    | (436,358 | )      |       |   | (395,399 | ) |
| Total stockholders' equity                                                                                                            |   |    | 125,739  |   |       |   | 166,698 |   |
|                                                                                                                                  |   |    |     |   |       |   |   |   |
| Total liabilities and stockholders' equity                                                                                            |   | $       | 126,828  |   |       | $      | 168,464 |   |

----

|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   | Cumulative   |       |
|-------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|------------|-------------------|--------|--------|------------|--------|--------|--------------|------------|
|                                                        |   | Three Months Ended |       |   | Nine Months Ended |   |       | February 28, 2005 |   |
|                                                        |   | May 31,            |       |   | May 31,           |   |       | (inception) to    |   |
|                                                        |   | 2011               |       |   | 2010              |   |       | 2011              |   |   | 2010       |   |   | May 31, 2011 |       |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |
| Revenue                                                     |   | $                  | -          |   |              | $      | -          |              |   | $      | -          |   |   | $            | -          |   |   | $ | - |   |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Operating expenses                                          |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Option fee                                                  |   |               | -          |   |              |   | -          |              |   |   | -          |   |   |         | -          |   |   |   | 2,000 |   |
| Research and development                                    |   |               | -          |   |              |   | -          |              |   |   | -          |   |   |         | -          |   |   |   | 175,839 |   |
| Director and officer fees                                   |   |               | 2,250      |   |              |   | 6,750      |              |   |   | 6,750      |   |   |         | 20,250     |   |   |   | 77,950 |   |
| Professional fees                                           |   |               | 5,515      |   |              |   | 6,694      |              |   |   | 32,702     |   |   |         | 34,369     |   |   |   | 162,891 |   |
| Other operating expenses                                    |   |               | 95         |   |              |   | 95         |              |   |   | 1,507      |   |   |         | 595        |   |   |   | 26,618 |   |
| Total operating expenses                                    |   |               | 7,860      |   |              |   | 13,539     |              |   |   | 40,959     |   |   |         | 55,214     |   |   |   | 445,298 |   |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Loss from operations                                        |   |               | (7,860     | )      |              |   | (13,539    | )                 |   |   | (40,959    | )      |   |         | (55,214    | ) |   |   | (445,298 | ) |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Other income                                                |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Interest income                                             |   |               | -          |   |              |   | -          |              |   |   | -          |   |   |         | -          |   |   |   | 8,940 |   |
| Total other income                                          |   |               | -          |   |              |   | -          |              |   |   | -          |   |   |         | -          |   |   |   | 8,940 |   |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Net loss                                                    |   | $                  | (7,860     | )      |              | $      | (13,539    | )                 |   | $      | (40,959    | )      |   | $            | (55,214    | ) |   | $ | (436,358 | ) |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Net loss per common share: basic                            |   | $                  | (0.00      | )      |              | $      | (0.00      | )                 |   | $      | (0.00      | )      |   | $            | (0.00      | ) |   |   |   |   |
|                                                        |   |               |       |   |              |   |       |              |   |   |       |   |   |         |       |   |   |   |   |   |
| Weighted average number of common shares outstanding: basic |   |               | 53,864,600 |   |              |   | 53,864,600 |              |   |   | 53,864,600 |   |   |         | 53,864,600 |   |   |   |   |   |

----

|                                            |   |         |       |   |       |   |   |            |   |   | Deficit accumulated |   |   |             |     |
|-------------------------------------------------|--------|--------------|------------|--------|------------|--------|--------|-----------------|--------|--------|---------------------|--------|--------|------------------|----------|
|                                            |   | Common Stock |       |   | Additional |   |   | during the      |   |   | Total stockholders' |   |
|                                            |   | Shares       |       |   | Amount     |   |   | paid-in capital |   |   | development stage   |   |   | equity (deficit) |     |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |
| Common stock issued at $0.0001 per share        |   |         | 53,864,600 |   |       | $      | 5,386  |            |   | $      | (5,286              | )      |   | $                | -        |   |   | $ | 100 |   |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the period ended August 31, 2005   |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (52,898  | ) |   |   | (52,898 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, August 31, 2005                        |   |         | 53,864,600 |   |       |   | 5,386  |            |   |   | (5,286              | )      |   |             | (52,898  | ) |   |   | (52,798 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the year ended August 31, 2006     |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (82,739  | ) |   |   | (82,739 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, August 31, 2006                        |   |         | 53,864,600 |   |       |   | 5,386  |            |   |   | (5,286              | )      |   |             | (135,637 | ) |   |   | (135,537 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Conversion of debt to equity on August 31, 2007 |   |         | -          |   |       |   | -      |            |   |   | 561,997             |   |   |             | -        |   |   |   | 561,997 |   |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the year ended August 31, 2007     |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (27,405  | ) |   |   | (27,405 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, August 31, 2007                        |   |         | 53,864,600 |   |       |   | 5,386  |            |   |   | 556,711             |   |   |             | (163,042 | ) |   |   | 399,055 |   |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the year ended August 31, 2008     |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (84,635  | ) |   |   | (84,635 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, August 31, 2008                        |   |         | 53,864,600 |   |       |   | 5,386  |            |   |   | 556,711             |   |   |             | (247,677 | ) |   |   | 314,420 |   |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the year ended August 31, 2009     |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (77,593  | ) |   |   | (77,593 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, August 31, 2009                        |   |         | 53,864,600 |   |       |   | 5,386  |            |   |   | 556,711             |   |   |             | (325,270 | ) |   |   | 236,827 |   |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the year ended August 31, 2010     |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (70,129  | ) |   |   | (70,129 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, August 31, 2010                        |   |         | 53,864,600 |   |       |   | 5,386  |            |   |   | 556,711             |   |   |             | (395,399 | ) |   |   | 166,698 |   |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Net loss for the nine months ended May 31, 2011 |   |         | -          |   |       |   | -      |            |   |   | -                   |   |   |             | (40,959  | ) |   |   | (40,959 | ) |
|                                            |   |         |       |   |       |   |   |            |   |   |                |   |   |             |     |   |   |   |   |   |
| Balance, May 31, 2011                           |   |         | 53,864,600 |   |       | $      | 5,386  |            |   | $      | 556,711             |   |   | $                | (436,358 | ) |   | $ | 125,739 |   |

----

|                                                                        |   |              |    |   |              |   |    | Cumulative   |   |
|-----------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|---------|--------------|--------|
|                                                                        |   | Nine Months Ended |    |   | February 28, 2005 |   |
|                                                                        |   | May 31,           |    |   | (inception) to    |   |
|                                                                        |   | 2011              |    |   | 2010              |   |    | May 31, 2011 |   |
|                                                                        |   |              |    |   |              |   |    |         |   |
| Cash flows from operating activities                                        |   |              |    |   |              |   |    |         |   |
| Net loss                                                                    |   | $                 | (40,959 | )      |              | $      | (55,214 | )            |   | $ | (436,358 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |              |    |   |              |   |    |         |   |   |   |   |
| Changes in operating assets and liabilities:                                |   |              |    |   |              |   |    |         |   |   |   |   |
| Increase in prepaid expenses                                                |   |              | (4,326  | )      |              |   | -       |         |   |   | (4,326 | ) |
| Increase (decrease) in accounts payable                                     |   |              | (677    | )      |              |   | (43     | )            |   |   | 1,089 |   |
| Net cash used in operating activities                                       |   |              | (45,962 | )      |              |   | (55,257 | )            |   |   | (439,595 | ) |
|                                                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Cash flows from financing activities                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Increase in payable - related party                                         |   |              | -       |   |              |   | -       |         |   |   | 561,997 |   |
| Proceeds from the issuance of common stock                                  |   |              | -       |   |              |   | -       |         |   |   | 100 |   |
| Net cash provided by financing activities                                   |   |              | -       |   |              |   | -       |         |   |   | 562,097 |   |
|                                                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                            |   |              | (45,962 | )      |              |   | (55,257 | )            |   |   | 122,502 |   |
|                                                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Cash and cash equivalents at beginning of period                            |   |              | 168,464 |   |              |   | 241,845 |         |   |   | - |   |
|                                                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Cash and cash equivalents at end of period                                  |   | $                 | 122,502 |   |              | $      | 186,588 |         |   | $ | 122,502 |   |
|                                                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Supplemental disclosure of cash flow information:                           |   |              |    |   |              |   |    |         |   |   |   |   |
| Interest paid in cash                                                       |   | $                 | -       |   |              | $      | -       |         |   | $ | - |   |
| Income taxes paid in cash                                                   |   |              | -       |   |              |   | -       |         |   |   | - |   |
|                                                                        |   |              |    |   |              |   |    |         |   |   |   |   |
| Supplemental disclosure of non-cash transaction:                            |   |              |    |   |              |   |    |         |   |   |   |   |
| Conversion of debt to equity                                                |   | $                 | -       |   |              | $      | -       |         |   | $ | 561,997 |   |

----

----

----

|                                                                       |   | Three Months Ended |       |   | Nine Months Ended |   |
|----------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                       |   | May 31,            |       |   | May 31,           |   |
|                                                                       |   | 2011               |       |   | 2010              |   |   | 2011 |   |   | 2010 |   |
|                                                                       |   |               |       |   |              |   |   |   |   |   |   |   |
| Numerator - net loss                                                       |   | $                  | (7,860     | )      |              | $      | (13,539 | ) |   | $ | (40,959 | ) |   | $ | (55,214 | ) |
|                                                                       |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Denominator - weighted average number of common shares outstanding - basic |   |               | 53,864,600 |   |              |   | 53,864,600 |   |   |   | 53,864,600 |   |   |   | 53,864,600 |   |
|                                                                       |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic net loss per common share                                            |   | $                  | (0.00      | )      |              | $      | (0.00 | ) |   | $ | (0.00 | ) |   | $ | (0.00 | ) |

----

----

|                      |   | Three Months Ended |   |   |       |   |   |       |   |
|---------------------------|--------|--------------------|--------|--------|------------|--------|--------|------------|--------|
|                      |   | May 31,            |   |   | Increase / |   |   | Percentage |   |
|                      |   | 2011               |   |   | 2010       |   |   | (Decrease) |   |   | Change |   |
|                      |   |               |   |   |       |   |   |       |   |   |   |   |
| Operating expenses        |   |               |   |   |       |   |   |       |   |   |   |   |
| Director and officer fees |   | $                  | 2,250  |   |       | $      | 6,750  |       |   | $ | (4,500 | ) |   |   | (67 | )% |
| Professional fees         |   |               | 5,515  |   |       |   | 6,694  |       |   |   | (1,179 | ) |   |   | (18 | ) |
| Other operating expenses  |   |               | 95     |   |       |   | 95     |       |   |   | - |   |   |   | - |   |
| Total operating expenses  |   | $                  | 7,860  |   |       | $      | 13,539 |       |   | $ | (5,679 | ) |   |   | (42 | )% |

|                      |   | Nine Months Ended |   |   |       |   |   |       |   |
|---------------------------|--------|-------------------|--------|--------|------------|--------|--------|------------|--------|
|                      |   | May 31,           |   |   | Increase / |   |   | Percentage |   |
|                      |   | 2011              |   |   | 2010       |   |   | (Decrease) |   |   | Change |   |
|                      |   |              |   |   |       |   |   |       |   |   |   |   |
| Operating expenses        |   |              |   |   |       |   |   |       |   |   |   |   |
| Director and officer fees |   | $                 | 6,750  |   |       | $      | 20,250 |       |   | $ | (13,500 | ) |   |   | (67 | )% |
| Professional fees         |   |              | 32,702 |   |       |   | 34,369 |       |   |   | (1,667 | ) |   |   | (5 | ) |
| Other operating expenses  |   |              | 1,507  |   |       |   | 595    |       |   |   | 912 |   |   |   | 153 |   |
| Total operating expenses  |   | $                 | 40,959 |   |       | $      | 55,214 |       |   | $ | (14,255 | ) |   |   | (26 | )% |

----

----

----

----

| Exhibit No. |         | Description of Exhibit                                                                                                                                                                                                 |
|------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |         |                                                                                                                                                                                                                   |
| 3.1              |         | Articles of Incorporation, as amended. (3)                                                                                                                                                                             |
|             |         |                                                                                                                                                                                                                   |
| 3.2              |         | By Laws. (1)                                                                                                                                                                                                           |
|             |         |                                                                                                                                                                                                                   |
| 10.1             |         | Option Agreement, dated April 29, 2005, between MicroChannel Technologies Corporation and Iowa State Research Foundation, Inc. (1)                                                                                     |
|             |         |                                                                                                                                                                                                                   |
| 10.2             |         | Amended Option Agreement No. 1 between MicroChannel Technologies Corporation and Iowa State Research Foundation, Inc. dated October 13, 2005. (1)                                                                      |
|             |         |                                                                                                                                                                                                                   |
| 10.3             |         | Amended Option Agreement No. 2 between MicroChannel Technologies Corporation and Iowa State Research Foundation, Inc. dated February 8, 2007. (1)                                                                      |
|             |         |                                                                                                                                                                                                                   |
| 10.4             |         | Amended Option Agreement No. 3 between MicroChannel Technologies Corporation and Iowa State Research Foundation, Inc. dated November 12, 2007. (2)                                                                     |
|             |         |                                                                                                                                                                                                                   |
| 31.1             |         | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13(a)-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * |
|             |         |                                                                                                                                                                                                                   |
| 32.1             |    | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 USC. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *                                 |

----

----

|          | MicroChannel Technologies Corporation |
|---------------|---------------------------------------|
|          | (Registrant)                          |
|          |                                  |
| July 14, 2011 | By:                              | /s/ David Gamache |
|          | David Gamache                         |
|          | President, Chief Executive Officer,   |
|          | Chief Financial Officer, and Director |

----