Item 2. Management's Discussion and Analysis of Financial Condition and Plan of Operations
All statements that are included in this Quarterly Report, other than statements of historical fact, are forward looking statements. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
Financial Summary
Results of Operations for the Six-Months ended March 31, 2009 and 2008
For the six-month period ended March 31, 2009, the Company experienced a net loss from operations of $1,093,083 which was primarily due to research and development costs of $900,000 and selling, general and administrative expenses of $266,239. Gross profits for the period were $73,156.
For the six-month period ended March 31, 2008, the Company's net loss from operations was $450,981, which was primarily due to research and development costs of $181,053 and selling, general and administrative expenses of $336,101. Gross profits for this period were $66,176.
For the six-months ended March 31, 2009, the Company experienced a decrease in sales compared to sales for the same period last year. Sales for the six-month period ending March 31, 2009 were $158,917 compared to sales of $165,507 for the same period last year. Gross profits for the period ending March 31, 2009 represented 46% of sales, where gross profits for the same period last year represented 40% of sales.
Liquidity and Capital Resources
For the six-month period ending March 31, 2009, the Company's cash position decreased $46,597. Net cash used in operating activities was $824,113; financing activities provided $681,602; and the effect of exchange rates on cash provided $95,914
For the six-month period ending March 31, 2008, the Company's cash position increased $261,419. Net cash used in operating activities was $734,739; financing activities provided $317,518; and the effect of exchange rates on cash provided $152,379.
Management Plan of Operations
Medical International Technology, Inc. ("MIT") is engaged in the business of research, development, marketing and sales of needle-free jet injector technology and products for humans and animals, for single and mass injections.
We continue to market our product in all available markets, seek regulatory approvals to expand those market opportunities and improve our products for application to new markets.
Medical International Technology, Inc. will continue to seek additional funding to expand operations and develop sales revenue to a volume sufficient to sustain operations.
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Medical International Technology, Inc.
Product Development
Medical International Technologies is still working towards getting FDA approval for its needle-free injector, few more test are required and are being planned - the MED-JET, designed specifically for human mass 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 stuck 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 our 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 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.
On December 15, 2005, Medical International Technologies, Inc announced that it has received full certification granted under the International Organization for Standardization, as well as the Canadian Medical Device Conformity Assessment System, for devices to be licensed by HEALTH CANADA. These certifications allow MIT to market the Med-Jet Needle-Free Injector for human use in all countries other than the U.S., MIT is working towards getting FDA approval, more test are required and are being planned at this point. The Med-Jet injector will be submitted for FDA approval as soon as we complete the required testing which, if accepted, will allow MIT to sell the Med-Jet in the United States, making it a truly worldwide system.
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 world wide pandemic 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.
Now that MIT is able to sell its Med-Jet in all countries, other than the U.S., it is working to complete the FDA filings. The first of these will be for use of the Med-Jet for injecting anesthesia in a variety of situations. The second, and most significant in light of the news coming out of Mexico and USA and other countries around the world concerning the spread of Influenza A (H1N1) to humans, will be the Med-Jet-H-III, for mass vaccination in case of a pandemic, such as Avian Influenza, Polio, Tuberculosis, Malaria or HIV.
MIT is also pursuing increasing interest in its Agro-Jet needle-free injector. Having the same benefits as Med-Jet, Agro-Jet will become a valuable instrument in the fight against many diseases such as Swine Flue and Avian Flu via its ability to mass inoculate animals at over 1000 injections per hour.
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Medical International Technology, Inc.
Forward-Looking Statements
Certain statements concerning the Company's plans and intentions included herein may constitute forward-looking statements for purposes of the Securities Litigation Reform Act of 1995 for which the Company claims a safe harbor under that Act. There are a number of factors that may affect the future results of the Company, including, but not limited to, (a) the ability of the company to obtain additional funding for operations, (b) the continued availability of management to develop the business plan and (c) successful development and market acceptance of the company's products. This periodic report may contain both historical facts and forward-looking statements. Any forward-looking statements involve risks and uncertainties, including, but not limited to, those mentioned above. Moreover, future revenue and margin trends cannot be reliably predicted.
