----

----

| 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 incorporation or organization) | (I.R.S. Employer 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      |

----

----

----

MICROCHANNEL 

| 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 | 11     |
|                                               |                                                                                  |   |
| Item 4.                                            | Controls and Procedures                                                               | 15     |
|                                               |                                                                                  |   |
| PART II   OTHER INFORMATION         |
|                                               |                                                                                  |   |
| Item 1.                                            | Legal Proceedings                                                                     | 16     |
|                                               |                                                                                  |   |
| Item 2.                                            | Unregistered Sales of Equity Securities and Use of Proceeds                           | 16     |
|                                               |                                                                                  |   |
| Item 3.                                            | Defaults Upon Senior Securities                                                       | 16     |
|                                               |                                                                                  |   |
| Item 5.                                            | Other Information                                                                     | 16     |
|                                               |                                                                                  |   |
| Item 6.                                            | Exhibits                                                                              | 16     |
|                                               |                                                                                  |   |
| Signatures                                         |   17                                                                             |
|                                               |                                                                                  |   |
| Certifications                                     |                                                                                  |

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Table of Contents

PART 

|                                                                                                                                       |   | November 30, 2010 |     |   | August 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|--------|----------------------|--------|
|                                                                                                                                       |   |                   |     |   |                 |   |
| ASSETS                                                                                                                                     |   |                   |     |   |                 |   |
| Current assets                                                                                                                             |   |                   |     |   |                 |   |
| Cash and cash equivalents                                                                                                                  |   | $                      | 153,203  |   |                 | $      | 168,464 |   |
| Total current assets                                                                                                                       |   |                   | 153,203  |   |                 |   | 168,464 |   |
|                                                                                                                                       |   |                   |     |   |                 |   |   |   |
| Total assets                                                                                                                               |   | $                      | 153,203  |   |                 | $      | 168,464 |   |
|                                                                                                                                       |   |                   |     |   |                 |   |   |   |
|                                                                                                                                       |   |                   |     |   |                 |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                       |   |                   |     |   |                 |   |   |   |
|                                                                                                                                       |   |                   |     |   |                 |   |   |   |
| Current liabilities                                                                                                                        |   |                   |     |   |                 |   |   |   |
| Accounts payable                                                                                                                           |   | $                      | 8,451    |   |                 | $      | 1,766 |   |
| Total current liabilities                                                                                                                  |   |                   | 8,451    |   |                 |   | 1,766 |   |
|                                                                                                                                       |   |                   |     |   |                 |   |   |   |
| Stockholders' equity                                                                                                                       |   |                   |     |   |                 |   |   |   |
| Common stock: $0.0001 par value; 300,000,000 shares authorized, 53,864,600 issued and outstanding at November 30, 2010 and August 31, 2010 |   |                   | 5,386    |   |                 |   | 5,386 |   |
| Additional paid-in capital                                                                                                                 |   |                   | 556,711  |   |                 |   | 556,711 |   |
| Deficit accumulated during the development stage                                                                                           |   |                   | (417,345 | )      |                 |   | (395,399 | ) |
| Total stockholders' equity                                                                                                                 |   |                   | 144,752  |   |                 |   | 166,698 |   |
|                                                                                                                                       |   |                   |     |   |                 |   |   |   |
| Total liabilities and stockholders' equity                                                                                                 |   | $                      | 153,203  |   |                 | $      | 168,464 |   |

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MICROCHANNEL 

|                                                        |   | Three Months EndedNovember 30, |       |   | Cumulative February 28, 2005 (inception) to November 30, |   |
|-------------------------------------------------------------|--------|-------------------------------------|------------|--------|--------------------------------------------------------------------|--------|
|                                                        |   | 2010                                |       |   | 2009                                                               |   |   | 2010 |   |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |
| Revenue                                                     |   | $                                   | -          |   |                                                               | $      | - |   |   | $ | - |   |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Operating expenses (income)                                 |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Option fee                                                  |   |                                | -          |   |                                                               |   | - |   |   |   | 2,000 |   |
| Research and development                                    |   |                                | -          |   |                                                               |   | - |   |   |   | 175,839 |   |
| Director and officer fees                                   |   |                                | 2,250      |   |                                                               |   | 6,750 |   |   |   | 73,450 |   |
| Professional fees                                           |   |                                | 19,608     |   |                                                               |   | 16,496 |   |   |   | 149,798 |   |
| Other operating expenses                                    |   |                                | 88         |   |                                                               |   | 500 |   |   |   | 25,198 |   |
| Total operating expenses                                    |   |                                | 21,946     |   |                                                               |   | 23,746 |   |   |   | 426,285 |   |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Loss from operations                                        |   |                                | (21,946    | )      |                                                               |   | (23,746 | ) |   |   | (426,285 | ) |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Other income                                                |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Interest income                                             |   |                                | -          |   |                                                               |   | - |   |   |   | 8,940 |   |
| Total other income                                          |   |                                | -          |   |                                                               |   | - |   |   |   | 8,940 |   |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Net loss                                                    |   | $                                   | (21,946    | )      |                                                               | $      | (23,746 | ) |   | $ | (417,345 | ) |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Net loss per common share: basic                            |   | $                                   | (0.00      | )      |                                                               | $      | (0.00 | ) |   |   |   |   |
|                                                        |   |                                |       |   |                                                               |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding: basic |   |                                | 53,864,600 |   |                                                               |   | 53,864,600 |   |   |   |   |   |

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MICROCHANNEL 

|                                                  |   | Common Stock |       |   | Additionalpaid-in |   |   | Deficit accumulated during the development |   |   | Total stockholders' equity |   |
|-------------------------------------------------------|--------|--------------|------------|--------|-------------------|--------|--------|--------------------------------------------|--------|--------|----------------------------|--------|
|                                                  |   | Shares       |       |   | Amount            |   |   |  capital                              |   |   | stage                      |   |   | (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 three months ended November 30, 2010 |   |         | -          |   |              |   | -      |                                       |   |   | -                          |   |   |   | (21,946 | ) |   |   | (21,946 | ) |
|                                                  |   |         |       |   |              |   |   |                                       |   |   |                       |   |   |   |   |   |   |   |   |   |
| Balance, November 30, 2010                            |   |         | 53,864,600 |   |              | $      | 5,386  |                                       |   | $      | 556,711                    |   |   | $ | (417,345 | ) |   | $ | 144,752 |   |

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MICROCHANNEL 

|                                                                        |   | Three Months EndedNovember 30, |    |   | Cumulative February 28, 2005 (inception) to November 30, |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------------------------------------|--------|
|                                                                        |   | 2010                                |    |   | 2009                                                               |   |   |  2010 |   |
|                                                                        |   |                                |    |   |                                                               |   |   |   |   |
| Cash flows from operating activities                                        |   |                                |    |   |                                                               |   |   |   |   |
| Net loss                                                                    |   | $                                   | (21,946 | )      |                                                               | $      | (23,746 | ) |   | $ | (417,345 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                |    |   |                                                               |   |   |   |   |   |   |   |
| Changes in operating assets and liabilities:                                |   |                                |    |   |                                                               |   |   |   |   |   |   |   |
| Increase in accounts payable                                                |   |                                | 6,685   |   |                                                               |   | 7,067 |   |   |   | 8,451 |   |
| Net cash used in operating activities                                       |   |                                | (15,261 | )      |                                                               |   | (16,679 | ) |   |   | (408,894 | ) |
|                                                                        |   |                                |    |   |                                                               |   |   |   |   |   |   |   |
| 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                            |   |                                | (15,261 | )      |                                                               |   | (16,679 | ) |   |   | 153,203 |   |
|                                                                        |   |                                |    |   |                                                               |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                            |   |                                | 168,464 |   |                                                               |   | 241,845 |   |   |   | - |   |
|                                                                        |   |                                |    |   |                                                               |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                  |   | $                                   | 153,203 |   |                                                               | $      | 225,166 |   |   | $ | 153,203 |   |
|                                                                        |   |                                |    |   |                                                               |   |   |   |   |   |   |   |
| 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 |   |

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MICROCHANNEL 

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|                                                                       |   | Three Months Ended November 30, |       |
|----------------------------------------------------------------------------|--------|--------------------------------------|------------|
|                                                                       |   | 2010                                 |       |   | 2009 |   |
|                                                                       |   |                                 |       |   |   |   |
| Numerator - net loss                                                       |   | $                                    | (21,946    | ) |   | $ | (23,746 | ) |
|                                                                       |   |                                 |       |   |   |   |   |   |
| Denominator - weighted average number of common shares outstanding - basic |   |                                 | 53,864,600 |   |   |   | 53,864,600 |   |
|                                                                       |   |                                 |       |   |   |   |   |   |
| Basic net loss per common share                                            |   | $                                    | (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, 2010, the Company had 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. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                      |   | Three Months Ended November 30, |   |   | Increase / |   |   | Percentage |   |
|---------------------------|--------|--------------------------------------|--------|--------|------------|--------|--------|------------|--------|
|                      |   | 2010                                 |   |   | 2009       |   |   | (Decrease) |   |   | Change |   |
|                      |   |                                 |   |   |       |   |   |       |   |   |   |   |
| Operating expenses        |   |                                 |   |   |       |   |   |       |   |   |   |   |
| Director and officer fees |   | $                                    | 2,250  |   |       | $      | 6,750  |       |   | $ | (4,500 | ) |   |   | (67 | )% |
| Professional fees         |   |                                 | 19,608 |   |       |   | 16,496 |       |   |   | 3,112 |   |   |   | 19 |   |
| Other operating expenses  |   |                                 | 88     |   |       |   | 500    |       |   |   | (412 | ) |   |   | (82 | ) |
| Total operating expenses  |   | $                                    | 21,946 |   |       | $      | 23,746 |       |   | $ | (1,800 | ) |   |   | (8 | )% |

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PART 

Item 

Item 

Item 

Item 

| 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. * |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

|             | MicroChannel Technologies Corporation |
|------------------|---------------------------------------|
|             | (Registrant)                          |
|             |                                  |   |
| January 13, 2011 | By:                              | /s/ David Gamache |
|             | David Gamache                         |
|             | President, Chief Executive Officer,   |
|             | Chief Financial Officer, Director     |

----