Quarterly Report (10-q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2016

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

For the transition period from ____________ to ____________

Commission file number: 000-31469

Medical International Technology, Inc.

(Exact name of registrant as specified in its charter)

Colorado

84-1509950

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1872 Beaulac, Ville Saint-Laurent

Montreal, Quebec, Canada HR4 2E7

(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (514) 339-9355

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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

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

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☒
(Do not check is a smaller reporting company)

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

The number of shares outstanding of the registrant’s common stock as of November 7, 2016 was 84,304,627.

MEDICAL INTERNATIONAL TECHNOLOGY, INC.

FORM 10-Q

March 31, 2016

(Unaudited)

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements

	Consolidated Balance Sheet	5-6

	Consolidated Statements of Operations	7

	Consolidated Statements of Cash Flows	8

	Consolidated Statements of Comprehensive Income (Loss)	9

	Notes to Unaudited Consolidated Financial Statements	10-13

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17

Item 4.	Controls and Procedures	17

Part II. OTHER INFORMATION		18

Item 1.	Legal Proceedings	18

Item 1A.	Risk Factors	18

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18

Item 3.	Defaults upon Senior Securities	18

Item 4.	Mine Safety Disclosures	18

Item 5.	Other Information	18

Item 6.	Exhibits	18

SIGNATURES		19

CAUTIONARY STATEMENT RELATED TO FORWARD LOOKING STATEMENTS

This Periodic Report on Form 10Q (this “Report”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as “anticipate,” “believe,” “estimate,” “intend,” “could,” “should,” “would,” “may,” “seek,” “plan,” “might,” “will,” “expect,” “predict,” “project,” “forecast,” “potential,” “continue” negatives thereof or similar expressions. These forward-looking statements are found at various places throughout this Report and include information concerning possible or assumed future results of our operations; business strategies; future cash flows; financing plans; plans and objectives of management; any other statements regarding future operations, future cash needs, business plans and future financial results, and any other statements that are not historical facts.

From time to time, forward-looking statements also are included in our other periodic reports on Forms 10-Q and 8-K, in our press releases, in our presentations, on our website and in other materials released to the public. Any or all of the forward-looking statements included in this Report and in any other reports or public statements made by us are not guarantees of future performance and may turn out to be inaccurate. These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. All subsequent written and oral forward-looking statements concerning other matters addressed in this Report and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Report.

Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.

To Our Shareholders

The future of our Corporation has always been our key priority and at the core of our considerations from the start of the Corporation. From quarter to quarter we reassess our positioning in our different markets with each of our distributors and agents we have nationally and internationally, thereafter we take the decisions we deemed the most accurate for the Corporation to gradually improve its results and achieve growth within the medium term. The technological advances we have achieved over the past years in our Needle-Free jet injector market segment firmly places us as the most advanced devices on the market combining speed, regulated pressure, dosage/volume adjustability and accuracy to produce the most efficient method of drug delivery.

From the start of our business and to facilitate its rapid market penetration MIT is developing strategic alliances with distributors and agents per Country that have established a successful distribution network in each of the niche market where MIT products can be sold. MIT has developed, during the past several years, distribution networks in a few countries. MIT selects its distributors with the goal of building long-term relationships to ensure the success of MIT’s Needle-Free Injectors.

In our last year end financials (2015) we explained the benefits and the disadvantages of such a business model working with distributors. “The disadvantages are when the distributor for different reasons being political, economical or personnel could not perform as expected resulting in loss of sales and profits.”

We continue to believe that our marketing policy and strategy this year and in the future is to continue the search for distributors in different markets with the following criteria in place to become an MIT distributor:

●

Financial stability.

●

Strong management.

●

Strong marketing and sales team.

●

Understanding MIT technologies and have a medical team.

●

A strong technical support team.

We continue to believe the importance of providing adequate support to our distributors as we expand our network in order to increases sales. The Company could not establish an internal marketing representative to provide support for its distributors for financial reasons; the management and the operation director has regularly assisted our network of distributors in their marketing activities by training the distributor’s sales representatives via video-conferences, providing support for after-sales service, making regular visits, be present at certain important national and international exhibitions or presentations to potential buyers. In addition, MIT’s main priority has and always will be its customer satisfaction.

MIT’s marketing and sales strategies in the medium and long term are the following:

●

Conduct more trials with renowned doctors to respond to new needs in the medical community.

●

Hire and train qualified marketing representatives with international experiences.

●

Searching for new dynamic and experience distributors worldwide.

New products in 2015

MIT introduced in the second and third quarter of 2015 two new products:

MED-JET MIT H-4 targeted all vaccination clinics, hospitals, and many other departments that had needs for single use disposable cartridge biologic injections.

MINI-JET for day old chick vaccination in hatcheries.

●

The first new product MED-JET MIT H-4 was used in different markets for human vaccination and other medications in different countries including Africa, Asia and the Middle East.

●

The second new product MINI-JET was introduced in different markets for day old chick’s vaccination in different countries including USA, Canada, Europe, Africa, Asia and the Middle East.

These two new products should help the Company increase its sales with our existing distributors and new potential agent and distributors in different countries that are in negotiation for a potential agreement.

Publications issued in 2014:

●

Treatment of Nail Psoriasis with Intralesional Triamcinolone Acetonide Using a Needle-Free Jet Injector:

A Prospective Trial by Melissa Nantel-Battista, Vincent Richer, Isabelle Marcil, and AntranikBenohanian

Canadian Dermatology Association | Journal of Cutaneous Medicine and Surgery, Vol 18, No 1 (January/February), 2014: pp 38–42

From the Department of Dermatology.St.Luc Hospital. Centre Hospitalier de l’Universite´ de Montreal (CHUM), Montreal, QC. Address reprint requests to: Melissa Nantel-Battista, MD, FRCPC. Department of Dermatology, St. Luc Hospital, CHUM, 264 Rene-Levesque, Est., Montreal, QC H2X 1P1; e-mail: melissa.nantel-battista@umontreal.ca

DOI 10.2310/7750.2013.13078

Publications issued in 2013:

●

Selection of Safe Parameters for Jet Injection of Botulinum Toxin in Palmar Hyperhidrosis Aesthetic Surgery Journal February 2013 33: 295-297, http://www.sagepublications.com /

●

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Information

MEDICAL INTERNATIONAL TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEET

(Unaudited)

	March 31, 2016			September 30, 2015

Assets
Current Assets
Cash and cash equivalents	$	555,478		$	-
Accounts receivable, net of allowance for bad debts of $7,900 at March 31, 2016		34,736			57,031
Inventories		239,010			210,579
Prepaid expenses		11,602			7,183

Total Current Assets		840,826			274,793

Property and Equipment
Tooling and machinery		576,965			558,706
Furniture and office equipment		132,351			128,163
Leasehold improvements		23,618			22,871
		732,934			709,740

Less accumulated depreciation		(632,322	)		(578,738	)
Total property and equipment, net		100,612			131,002
Other Assets
Patents (net of accumulated amortization of $71,702 and $56,993)		61,597			53,041
Total assets	$	1,003,035		$	458,836

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

MEDICAL INTERNATIONAL TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEET

(Unaudited)

	March 31, 2016			September 30, 2015

Liabilities and Stockholders' Equity
Current Liabilities
Bank line	$	-		$	74,663
Deferred income		12,877			-
Accounts payable and accrued expenses		55,665			109,712
Advance from related party		500,000			30,000
Short term borrowings		300,000			-
Current portion of long term debts		17,848			35,795
		886,390			250,170
Total Liabilities		886,390			250,170

Commitments

Stockholders' Equity
Preferred stock, $.0001 par value; 3,000,000 shares authorized; No issued and outstanding shares as of March 31, 2016 and September 30, 2015.		-			-
Common stock, $.0001 par value; 100,000,000 shares authorized; 84,304,627 issued and outstanding shares as of March 31, 2016 and September 30, 2015.		8,430			8,430

Additional paid-in capital		12,917,025			12,917,025
Accumulated deficit		(12,457,196	)		(12,330,450	)
Other comprehensive loss		(351,614	)		(386,339	)

Total Stockholders' Equity		116,645			208,666
Total Liabilities and Stockholders' Equity	$	1,003,035		$	458,836

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

MEDICAL INTERNATIONAL TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three-Months Period Ended March 31,						Six-Months Period Ended March 31,
	2016			2015			2016			2015
Sales	$	90,013		$	165,306		$	241,250		$	298,304
Cost of sales		(33,584	)		(38,105	)		(75,280	)		(80,979	)
Gross profit		56,429			127,201			165,970			217,325

Selling, general, and administrative expenses		(121,852	)		(69,728	)		(290,688	)		(168,699	)
		(121,852	)		(69,728	)		(290,688	)		(168,699	)

Profit (loss) from operations		(65,423	)		57,473			(124,718	)		48,626

Other Income (Expense)
Interest income		228			204			392			499
Interest expense		(924	)		(2,931	)		(2,420	)		(5,329	)
		(696	)		(2,727	)		(2,028	)		(4,830	)

Net profit (loss)	$	(66,119	)	$	54,746		$	(126,746	)	$	43,796

Basic profit (loss) per share	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00

Basic weighted average shares outstanding		84,304,627			84,304,627			84,304,627			84,304,627

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

MEDICAL INTERNATIONAL TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six-Month Period Ended
	March 31,			March 31,
	2016			2015
Cash flows from operating activities:
Net income (loss)	$	(126,746	)	$	43,796
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization expense		54,076			41,221

Changes in:
Accounts receivable		22,295			(7,379	)
Inventories		(28,431	)		39,913
Prepaid expenses		(4,419	)		(8,532	)
Accounts payable and accrued liabilities		(54,047	)		(87,484	)
Deferred income		12,877			3,361
Net cash provided by (used by) operating activities		(124,395	)		24,896

Cash flows from investing activities:
Acquisition of patents		(21,086	)		(17,889	)
Tooling and machinery		-			(11,212	)
Net cash used by investing activities		(21,086	)		(29,101	)

Cash flows from financing activities:
Bank line		(74,663	)		(411	)
Bank loans		(17,947	)		(29,665	)
Proceeds from issuance of stock, net		-			50,000
Increase (decrease) in amounts due to related parties		470,000			(20,000	)
Proceeds from short term borrowings		300,000			-
Repayment on notes payable		-			(30,000	)
Net cash used by financing activities		677,390			(30,076	)

Effect of exchange rates		23,569			45,424

Increase in cash		555,478			11,143
Cash, beginning of period		-			33,767
Cash, end of period	$	555,478		$	44,910
Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,028		$	5,329
Cash paid for federal income taxes	$	-		$	-

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

MEDICAL INTERNATIONAL TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Six Months Ended March 31, 2016			Six Months Ended March 31, 2015
Net income (loss)	$	(126,746	)	$	43,796
Other comprehensive income (loss)
Foreign currency translation adjustment		34,725			7,671

Net comprehensive income (loss)	$	(92,021	)	$	51,467

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

Medical International Technology, Inc.

Notes to Financial Statements

March 31, 2016

(Unaudited)

Note 1 – Basis of Presentation

Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements of Medical International Technology, Inc. (“MIT” or the “Company”) and its subsidiary (collectively referred to as the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany balances and transactions have been eliminated. These financial statements do not include all information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. It is recommended that these interim unaudited condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2015.

In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six month periods ended March 31, 2016 are not necessarily indicative of the results which may be expected for any other interim periods or for the year ending September 30, 2016. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Going concern

There can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that funds will be available from external sources such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate cash flow from operations or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Further, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company’s existing stockholders.

The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

Note 2 – Inventories

Inventories at March 31, 2016 and September 30, 2015 consist of the following:

	March 31, 2016		September 30, 2015
Raw materials	$	153,108	$	136,842
Work in process		52,635		51,511
Finished goods		33,267		22,226
Total	$	239,010	$	210,579

Note 3 – Property and Equipment

The cost of property and equipment is depreciated over the estimated useful lives of the related assets, which range from 5 to 7 years. Depreciation is computed on the straight-line method for financial reporting purposes and on the declining balance method for income tax reporting purposes. Depreciation expense for the six months ended March 31, 2016 and 2015 was $40,746 and $31,260, respectively

Medical International Technology, Inc.

Notes to Financial Statements

March 31, 2016

(Unaudited)

Note 4 – Intangible Assets

As of March 31, 2016 the Company has net patents on certain technologies aggregating $61,597. Amortization expense for the six months ended March 31, 2016 and 2015 were $13,330 and $9,961, respectively. During the six months ended March 31, 2016, the Company capitalized patent costs on its needle-free injector of $21,086. Following is a detail of patents at March 31, 2016.

		Gross Intangible Assets				Accumulated Amortization				Net Intangible Assets				Weighted Average Life (Years)
Patents		$	133,299			$	71,702			$	61,597			7.5 through 15

Note 5 – Joint venture agreement

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

Under the Joint Venture Agreement, the Company appointed 1 member, and Jiangsu Hualan appointed 2 members, to the board of directors of the Joint Venture. Profits of the Joint Venture will be allocated based upon each party’s investment in the registered capital.

In March 2012, MIT China agreed and sold 9% of the joint venture for an investment of 18,000,000 RMB (US$3,000,000). Jiangsu Hualan now has 46.41%, the Company has 44.59%, and Taizhou Amazon Investment Center has 9% ownership in the MIT China joint venture.

The Company accounts for its investment in MIT China in accordance with Financial Accounting Standards Board Accounting Standards Codification 323, “Investment — Equity Method and Joint Venture” (ASC 323), previously referred to as Accounting Principles Board Opinion No. 18, “The Equity Method of Accounting for Investments in Common Stock.” Accordingly, the Company adjusts the carrying amount of its investment in MIT China to recognize its share of earnings or losses. As of March 31, 2016 and September 30, 2015, the Company’s had no recorded investment remaining in the MIT China.

During the six and three months ended March 31, 2016, the Company had $95,610 and $51,780 in sales of products to the joint venture. As of March 31, 2016 and September 30, 2015, the Company had a receivable from the joint venture of $32,390 and $51,165, respectively.

During the six and three months ended March 31, 2015, the Company had approximately $127,000 and $61,000 in sales of products to the joint venture.

As of March 31, 2016 and September 30, 2015, the Company had an advance from the joint venture of $500,000 and $0, respectively. The advance bears no interest and has no formal payment terms.

Medical International Technology, Inc.

Notes to Financial Statements

March 31, 2016

(Unaudited)

Note 6 – Bank Line

The Company, through a hypothec agreement, has a line of credit up to a maximum of $100,000. The line is secured by Investissement Quebec (a Quebec government entity) and by Karim Menassa (personally) and by account receivables, inventories, equipment and all other assets of the Company. The line bears interest at the prime rate plus 2.5% (5.75% at September 30, 2015). At March 31, 2016 and September 30, 2015, the Company had $0 and $74,663 outstanding under the agreement.

Note 7 – Related Party Transactions

Related party balances consist of the following at March 31, 2016 and September 30, 2015:

	March 31, 2016		September 30, 2015
Payable to 9211-0766 Quebec Inc – interest at 8%, due December 31, 2015	$	-	$	30,000
Advance from MIT China – no interest, no maturity date		500,000		-
	$	500,000	$	30,000

During the six and three months ended March 31, 2016, the Company paid approximately $107,000 and $25,000 to a company owned by the President and CEO for consulting fees.

During the six and three months ended March 31, 2015, the Company paid approximately $56,300 and $8,300 to a company owned by the President and CEO for consulting fees.

Note 8 – Stockholders' Equity (Deficit)

Issuance of Common Stock

From time to time, the Company will issue common stock for services rendered, debt reductions or as part of private placement offerings.

For the three and six months ended March 31, 2016, there was no common stock issuance.

Preferred Stock

As of March 31, 2016, there was no preferred stock outstanding. Dividend features and voting rights are at the discretion of the Board of Directors without the requirement of shareholder approval.

Outstanding Options

As of March 31, 2016 and 2015, there are no options outstanding to purchase shares of the Company’s common stock.

Outstanding Warrants

There are no outstanding warrants

Medical International Technology, Inc.

Notes to Financial Statements

March 31, 2016

(Unaudited)

Note 9 –Operating Leases

The Company leases its office and warehouse space under an operating lease that expires on December 31, 2021. The lease calls for a monthly rent of $3,600 (CND). Rent expense for the three months ended March 31, 2016 was approximately $20,500.

Future minimum lease commitments pertaining to the lease expire as follow:

Year ended

March 31, 2017	$	27,000
March 31, 2018		30,000
March 31, 2019		30,000
March 31, 2020		30,000
March 31, 2021		30,000
	$	147,000

Note 10 –Debt

Debt consists of the following at March 31, 2016 and September 30, 2015:

	March 31, 2016		September 30, 2015
Note payable to a bank, bearing interest at prime plus 3% (6.25% at September 30, 2015), secured by equipment, due December 20, 2016.	$	13,964	$	24,515
Loan Canada Economic Development, no interest, repayment of the contribution in sixteen (16) Equal and consecutive quarterly installments of $5,035 (CND) through May 2016.		3,884		11,280
Short term borrowing payable to an individual, bearing zero interest and no payment terms or maturity date		300,000		-
Total debt (all current)	$	317,848	$	35,795

Note 11 – Contingencies

Legal Proceedings

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

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

The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

Business Development

Expanding the product line:

Medical International Technology Inc. (“MIT or the “Company”) has been expanding financial resources in R&D in the last 5 years. MIT already has 5 products for the human market and 9 products for the animal market. The company has unveiled two new additions one for the human line and one for its animal line to our distributors.

MIT’s patented technology has received approval in several countries worldwide. The Company expects that the two new products will be no exception.

The Company has decided not to put any physical nor financial effort at this time in pursuing its efforts for the FDA certification and will resume its effort in fiscal year 2017/2018.

The Company has decided to put more effort in its existing products and existing market for the next three quarters and the year 2016/2017, in order to better consolidate and serve our existing Distributor.

Projected Sales and Market Breakdown

The following information will outline market expectations by category and timeframe:

Human applications:

The Company has decided for the next three quarters and the year 2016/2017 to put more effort in expanding our cosmetic dermatology, plastic surgery, podiatry market, it will do so through the use of the Med-Jet models MIT MBX, MIT-H-III and the MESO-JET.

Animal applications:

The Company has decided for the next three quarters and the year 2016/2017 to put more effort in expanding the pork, cattle, and poultry markets, using our existing products for mass animal vaccination.

China Joint Venture

The creation of MIT China in June of 2009 has given MIT a unique advantage to expand its production operations and increase its sales and profits in the multi-billion dollar worldwide needle-free injector market. Furthermore, MIT China venture will help MIT supply large production volumes in lesser time, which will attract large medical and pharmaceutical partners.

The introduction of our Agro-Jet needle-free injector for animal application is progressing well; our veterinary staff has been successfully job training our distributors in various regions. We expect that these efforts will result in sales growth for the coming fiscal quarters and years.

During the third quarter of fiscal year 2011, MIT China purchased 151,000 sq. ft. of land and began construction of their first building in Taizhou (China Medical City). This first building of 40,000 sq. ft. when finalized will be used for the production of injectors for the Chinese market only.

The work in progress at MIT China for the construction of its 40,000 sq. ft. building is expected to be completed and certified by the Chinese SFDA by March 2014. We will start planning and purchasing much of the equipment and tools necessary for the assembly and production of some of our Agro-Jet and Med-Jet products. The production facility should be able to supply a large number of injectors and disposables to the Chinese market.

Per the recent discussions and understanding of our general manager, Ethan Sun, with our Joint Venture partner, our plan of sales and expansion into the Chinese market is progressing and MIT China agreed and sold 9% of their joint venture for an investment of 18,000,000 RMB (US$3,000,000). MIT China now has 46.41%, we have 44.59%, and Taizhou Amazon Investment Center has 9% ownership in such venture.

Our objective is to ensure that our injectors become an indispensable and environmentally friendly product for doctors, dentists, veterinarians and home users around the world.

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

Results of Operations

Results of Operations for the three months ended March 31, 2016 and 2015

For the three-month period ended March 31, 2016 the Company experienced a loss net from operations of $65,423 which was primarily due to selling, general and administrative expenses of $121,852 and sales of $90,013. Gross profits for the period were $56,429.

For the three-month period ended March 31, 2015 the Company experienced a profit net from operations of $57,473 which was primarily due to selling, general and administrative expenses of $68,728 and sales of $165,306. Gross profits for the period were $127,201.

The growing net loss between the comparable quarters was due to decreased sales as the Company continues to push its products into the market along with reduced research and development costs. Sales for the three-month period ending March 31, 2016 were $90,013 compared to sales of $165,306 for the same period last year. Gross profits for the three month period ending March 31, 2016 represented 63% of sales, where gross profits for the same period last year represented 77% of sales.

Results of Operations for the six months ended March 31, 2016 and 2015

For the six-month period ended March 31, 2016 the Company experienced a net loss from operations of $124,718 which was primarily due to selling, general and administrative expenses of $290,688 and sales of $241,250. Gross profits for the period were $165,970.

For the six-month period ended March 31, 2015 the Company experienced a net profit from operations of $48,626 which was primarily due to selling, general and administrative expenses of $168,699 and sales of $298,304. Gross profits for the period were $217,325.

The growing net loss between the comparable quarters was due to decreased sales as the Company continues to push its products into the market along with reduced research and development costs. Sales for the six-month period ending March 31, 2016 were $241,250 compared to sales of $298,304 for the same period last year. Gross profits for the period ending March 31, 2016 represented 69% of sales, where gross profits for the same period last year represented 73% of sales.

Liquidity and Capital Resources

For the six-month period ending March 31, 2016, the Company’s cash position, including access to cash through a revolving line of credit, increased to $555,478. Net cash used in operating activities was $124,395. Cash used by financing activities was $677,390 which was primarily a result of net advances from related parties of $470,000 and repayment on bank line of $74,663. Cash used by investing activities was $21,086, which was a result of acquisitions of new patent rights. The effect of exchange rates on cash increased cash balances by $21,176.

For the six-month period ending March 31, 2015, the Company’s cash position, including access to cash through a revolving line of credit, increased to $44,910. Net cash provided operating activities was $24,896. Cash used by financing activities was $30,076 which was primarily a result of amount due to related parties of $20,000 and repayment on notes payables of $30,000. Cash used by investing activities was $29,101, which was a result of acquisitions of new patent rights. The effect of exchange rates on cash increased cash balances by $45,424.

Plan of Operations

Medical International Technology's intends to concentrate its activities in the medical and veterinary sectors, in particular, in the field of equipment and instrumentation. The company's strategy is to build good, reliable and cost effective products, seek and establish strategic alliances with different pharmaceutical companies and manufacturers to ensure good distribution channels for its products.

MIT promotes and sells products in over 30 countries including the United States of America. MIT is exerting every effort and using its resources to promote its products and to open markets for its technology. As we continue to market our products, we hope to gain broader acceptance of the needle-free injection technology. MIT is continually researching and developing its products to the market needs.

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

Product Development

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

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

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

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

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

Off Balance Sheet Arrangements

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

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required for Smaller Reporting Companies.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are not effective due to lack of timely filing to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Not required for Smaller Reporting Companies.

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

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other information

None.

Item 6. Exhibits

Exhibits

31.1		Certification of Principal Executive Officer and Principal Financial Officer of the Registrant pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 *		Certification of Principal Executive Officer and Principal Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS **		XBRL Instance Document
101.SCH **		XBRL Taxonomy Schema
101.CAL **		XBRL Taxonomy Calculation Linkbase
101.DEF **		XBRL Taxonomy Definition Linkbase
101.LAB **		XBRL Taxonomy Label Linkbase
101.PRE **		XBRL Taxonomy Presentation Linkbase

* In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

** Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURES

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

	Medical International Technology, Inc.

Date: November 7, 2016	By:	/s/ Karim Menassa
		Karim Menassa
		President, Chief Executive Officer, and Chief Financial Officer
		(Duly Authorized Officer, Principal Executive Officer, and Principal Financial Officer)