----

----

----

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

| o | 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                                             |  o |   | Accelerated filer         |  o |   |
|---------------------------------------------------------------------|-----------------|--------|---------------------------|-----------------|--------|
|                                                                |            |   |                      |            |   |
| Non-accelerated filer (Do not check if a smaller reporting company) |  o |   | 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                                         |   |
|                                               |   |   |
| Certifications                                     |   |

----

|                                                                                                                                       |   | February 28, |     |   | August 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|-----------------|--------|
|                                                                                                                                       |   | 2011              |     |   | 2010            |   |
|                                                                                                                                       |   |              |     |   |            |   |
| ASSETS                                                                                                                                     |   |              |     |   |            |   |
| Current assets                                                                                                                             |   |              |     |   |            |   |
| Cash and cash equivalents                                                                                                                  |   | $                 | 134,652  |   |            | $      | 168,464 |   |
| Prepaid expenses                                                                                                                           |   |              | 1,567    |   |            |   | - |   |
| Total current assets                                                                                                                       |   |              | 136,219  |   |            |   | 168,464 |   |
|                                                                                                                                       |   |              |     |   |            |   |   |   |
| Total assets                                                                                                                               |   | $                 | 136,219  |   |            | $      | 168,464 |   |
|                                                                                                                                       |   |              |     |   |            |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                       |   |              |     |   |            |   |   |   |
|                                                                                                                                       |   |              |     |   |            |   |   |   |
| Current liabilities                                                                                                                        |   |              |     |   |            |   |   |   |
| Accounts payable                                                                                                                           |   | $                 | 2,620    |   |            | $      | 1,766 |   |
| Total current liabilities                                                                                                                  |   |              | 2,620    |   |            |   | 1,766 |   |
|                                                                                                                                       |   |              |     |   |            |   |   |   |
| Stockholders' equity                                                                                                                       |   |              |     |   |            |   |   |   |
| Common stock: $0.0001 par value; 300,000,000 shares authorized, 53,864,600 issued and outstanding at February 28, 2011 and August 31, 2010 |   |              | 5,386    |   |            |   | 5,386 |   |
| Additional paid-in capital                                                                                                                 |   |              | 556,711  |   |            |   | 556,711 |   |
| Deficit accumulated during the development stage                                                                                           |   |              | (428,498 | )      |            |   | (395,399 | ) |
| Total stockholders' equity                                                                                                                 |   |              | 133,599  |   |            |   | 166,698 |   |
|                                                                                                                                       |   |              |     |   |            |   |   |   |
| Total liabilities and stockholders' equity                                                                                                 |   | $                 | 136,219  |   |            | $      | 168,464 |   |

----

|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   | Cumulative                  |       |
|-------------------------------------------------------------|--------|------------------------------|------------|--------|----------------------------|--------|------------|-----------------------------|--------|--------|------------|--------|--------|-----------------------------|------------|
|                                                        |   | Three Months Ended |       |   | Six Months Ended |   |       | February 28, 2005 |   |
|                                                        |   | February 28,            |       |   | February 28,          |   |       | (inception) to         |   |
|                                                        |   | 2011                         |       |   | 2010                       |   |       | 2011                        |   |   | 2010       |   |   | February 28, 2011 |       |
|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |
| Revenue                                                     |   | $                            | -          |   |                       | $      | -          |                        |   | $      | -          |   |   | $                           | -          |   |   | $ | - |   |
|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| Operating expenses                                          |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| Option fee                                                  |   |                         | -          |   |                       |   | -          |                        |   |   | -          |   |   |                        | -          |   |   |   | 2,000 |   |
| Research and development                                    |   |                         | -          |   |                       |   | -          |                        |   |   | -          |   |   |                        | -          |   |   |   | 175,839 |   |
| Director and officer fees                                   |   |                         | 2,250      |   |                       |   | 6,750      |                        |   |   | 4,500      |   |   |                        | 13,500     |   |   |   | 75,700 |   |
| Professional fees                                           |   |                         | 7,578      |   |                       |   | 11,179     |                        |   |   | 27,186     |   |   |                        | 27,675     |   |   |   | 157,376 |   |
| Other operating expenses                                    |   |                         | 1,325      |   |                       |   | -          |                        |   |   | 1,413      |   |   |                        | 500        |   |   |   | 26,523 |   |
| Total operating expenses                                    |   |                         | 11,153     |   |                       |   | 17,929     |                        |   |   | 33,099     |   |   |                        | 41,675     |   |   |   | 437,438 |   |
|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| Loss from operations                                        |   |                         | (11,153    | )      |                       |   | (17,929    | )                           |   |   | (33,099    | )      |   |                        | (41,675    | ) |   |   | (437,438 | ) |
|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| Other income                                                |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| Interest income                                             |   |                         | -          |   |                       |   | -          |                        |   |   | -          |   |   |                        | -          |   |   |   | 8,940 |   |
| Total other income                                          |   |                         | -          |   |                       |   | -          |                        |   |   | -          |   |   |                        | -          |   |   |   | 8,940 |   |
|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| Net loss                                                    |   | $                            | (11,153    | )      |                       | $      | (17,929    | )                           |   | $      | (33,099    | )      |   | $                           | (41,675    | ) |   | $ | (428,498 | ) |
|                                                        |   |                         |       |   |                       |   |       |                        |   |   |       |   |   |                        |       |   |   |   |   |   |
| 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 six months ended February 28, 2011 |   |              | -          |   |       |   | -      |                 |   |   | -                        |   |   |                  | (33,099  | ) |   |   | (33,099 | ) |
|                                                |   |              |       |   |       |   |   |                 |   |   |                     |   |   |                  |     |   |   |   |   |   |
| Balance, February 28, 2011                          |   |              | 53,864,600 |   |       | $      | 5,386  |                 |   | $      | 556,711                  |   |   | $                     | (428,498 | ) |   | $ | 133,599 |   |

----

|                                                                        |   |                       |    |   |                        |   |    | Cumulative                  |   |
|-----------------------------------------------------------------------------|--------|----------------------------|---------|--------|-----------------------------|--------|---------|-----------------------------|--------|
|                                                                        |   | Six Months Ended |    |   | February 28, 2005 |   |
|                                                                        |   | February 28,          |    |   | (inception) to         |   |
|                                                                        |   | 2011                       |    |   | 2010                        |   |    | February 28, 2011 |   |
|                                                                        |   |                       |    |   |                        |   |    |                        |   |
| Cash flows from operating activities                                        |   |                       |    |   |                        |   |    |                        |   |
| Net loss                                                                    |   | $                          | (33,099 | )      |                        | $      | (41,675 | )                           |   | $ | (428,498 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                       |    |   |                        |   |    |                        |   |   |   |   |
| Changes in operating assets and liabilities:                                |   |                       |    |   |                        |   |    |                        |   |   |   |   |
| Increase in accounts payable                                                |   |                       | 854     |   |                        |   | 4,087   |                        |   |   | 2,620 |   |
| Increase in prepaid expenses                                                |   |                       | (1,567  | )      |                        |   | -       |                        |   |   | (1,567 | ) |
| Net cash used in operating activities                                       |   |                       | (33,812 | )      |                        |   | (37,588 | )                           |   |   | (427,445 | ) |
|                                                                        |   |                       |    |   |                        |   |    |                        |   |   |   |   |
| 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                            |   |                       | (33,812 | )      |                        |   | (37,588 | )                           |   |   | 134,652 |   |
|                                                                        |   |                       |    |   |                        |   |    |                        |   |   |   |   |
| Cash and cash equivalents at beginning of period                            |   |                       | 168,464 |   |                        |   | 241,845 |                        |   |   | - |   |
|                                                                        |   |                       |    |   |                        |   |    |                        |   |   |   |   |
| Cash and cash equivalents at end of period                                  |   | $                          | 134,652 |   |                        | $      | 204,257 |                        |   | $ | 134,652 |   |
|                                                                        |   |                       |    |   |                        |   |    |                        |   |   |   |   |
| 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 |       |   | Six Months Ended |   |
|----------------------------------------------------------------------------|--------|------------------------------|------------|--------|----------------------------|--------|
|                                                                       |   | February 28,            |       |   | February 28,          |   |
|                                                                       |   | 2011                         |       |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
|                                                                       |   |                         |       |   |                       |   |   |   |   |   |   |   |
| Numerator - net loss                                                       |   | $                            | (11,153    | )      |                       | $      | (17,929 | ) |   | $ | (33,099 | ) |   | $ | (41,675 | ) |
|                                                                       |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| 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 | ) |

| - | Payment of $2,000 in option fees upon execution of the ISURF Agreement; |
|---|-------------------------------------------------------------------------|

| - | Payment of $155,839 to support the research project entitled “Conduits with Micropatterned Film for Peripheral Nerve   Regeneration” of which $50,000 was due within 90 days of execution of the ISURF Agreement, and four subsequent equal payments of $26,460 each due quarterly, beginning on January 31, 2006.  An additional $50,000 was payable in five equal installments of $10,000 each due every two months upon the execution of the Amended ISURF Agreement on November 12, 2007.  As of February 28, 2011, the Company has paid $155,839 pursuant to the original ISURF Agreement and $20,000 pursuant to the Amended ISURF Agreement. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | Contingent upon satisfactory progress and success of the above project, provide an additional $73,166 for the project entitled “Conduits with Micropatterned Films for Optic Nerve Regeneration”.  The Company did not initiate the second research project. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                      |   | Three Months Ended |   |   |            |   |   |       |   |
|---------------------------|--------|------------------------------|--------|--------|-----------------|--------|--------|------------|--------|
|                      |   | February 28,            |   |   | Increase / |   |   | Percentage |   |
|                      |   | 2011                         |   |   | 2010            |   |   | (Decrease) |   |   | Change |   |
|                      |   |                         |   |   |            |   |   |       |   |   |   |   |
| Operating expenses        |   |                         |   |   |            |   |   |       |   |   |   |   |
| Director and officer fees |   | $                            | 2,250  |   |            | $      | 6,750  |       |   | $ | (4,500 | ) |   |   | (67 | )% |
| Professional fees         |   |                         | 7,578  |   |            |   | 11,179 |       |   |   | (3,601 | ) |   |   | (32 | ) |
| Other operating expenses  |   |                         | 1,325  |   |            |   | -      |       |   |   | 1,325 |   |   |   | * |   |
| Total operating expenses  |   | $                            | 11,153 |   |            | $      | 17,929 |       |   | $ | (6,776 | ) |   |   | (38 | )% |

|                      |   | Six Months Ended |   |   |            |   |   |       |   |
|---------------------------|--------|----------------------------|--------|--------|-----------------|--------|--------|------------|--------|
|                      |   | February 28,          |   |   | Increase / |   |   | Percentage |   |
|                      |   | 2011                       |   |   | 2010            |   |   | (Decrease) |   |   | Change |   |
|                      |   |                       |   |   |            |   |   |       |   |   |   |   |
| Operating expenses        |   |                       |   |   |            |   |   |       |   |   |   |   |
| Director and officer fees |   | $                          | 4,500  |   |            | $      | 13,500 |       |   | $ | (9,000 | ) |   |   | (67 | )% |
| Professional fees         |   |                       | 27,186 |   |            |   | 27,675 |       |   |   | (489 | ) |   |   | (2 | ) |
| Other operating expenses  |   |                       | 1,413  |   |            |   | 500    |       |   |   | 913 |   |   |   | 183 |   |
| Total operating expenses  |   | $                          | 33,099 |   |            | $      | 41,675 |       |   | $ | (8,576 | ) |   |   | (21 | )% |

----

----

----

| 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)                          |
|           |                                  |   |
| April 12, 2011 | By:                              | /s/ David Gamache |
|           | David Gamache                         |
|           | President, Chief Executive Officer,   |
|           | Chief Financial Officer, Director     |

----