10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2012

OR

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

Commission file number 000-53665

MEDICAL CARE TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)

NEVADA

(State or other jurisdiction of incorporation or organization)

26-4227137

(I.R.S. Employer Identification No.)

 Room 815, No. 2 Building Beixiaojie, Dongzhimen Nei

Beijing, People’s Republic of China 10009

(Address of principal executive offices, including zip code.)

(8610) 6407 0580

(Registrant’s telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 last 90 days.    YES x NO o

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 x NO o

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 the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated Filer	o	Accelerated Filer	o
Non-accelerated Filer	o	Smaller Reporting Company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:  3,433,896,955 as of November 19, 2012.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Medical Care Technologies Inc.

(A Development Stage Company)

September 30, 2012

	Index
Consolidated Balance Sheets	F-1
Consolidated Statements of Expenses	F-2
Consolidated Statements of Cash Flows	F-3
Consolidated Statement of Stockholders’ Equity (Deficit)	F-4 to F-5
Notes to the Consolidated Financial Statements	F-6 to F-22

Medical Care Technologies Inc.

(A Development Stage Company)

Consolidated Balance Sheets

(Unaudited)

	September 30,			December 31,
	2012			2011
ASSETS
Current Assets
Cash and cash equivalents	$	742		$	3,380
Prepaid expenses and deposit		221,068			41,682
Total Current Assets		221,810			45,062
Property and equipment, net of accumulated depreciation of $50,000 and $50,000, respectively		31,002			6,200
Intangible asset		897,148			457,695
Deferred financing costs		2,693			4,964
Total Assets	$	1,152,653		$	513,921
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable	$	166,386		$	90,679
Accrued liabilities		277,110			20,606
Convertible note payable, net of unamortized discount of $10,402 and $23,100, respectively		70,887			93,596
Derivative liability		95,398			155,958
Due to related parties		423,577			79,635
Loan from related party		285,645			–
Loans payable		59,183			80,981
Total Current Liabilities		1,378,186			521,455
Convertible note payable, net of unamortized discount of $31,426 and $45,500, respectively		2,936			954
Loans payable		–			130,000
Total Liabilities		1,381,122			652,409
Commitments and Contingency
Stockholders’ Deficit
Preferred Stock:  100,000,000 shares authorized, $0.00001 par value, No shares issued and outstanding as of September 30, 2012 and December 31, 2011		–			–
Common Stock:  8,000,000,000 shares authorized, $0.00001 par value, 3,243,896,955 and 328,898,953 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively		32,439			3,289
Additional Paid-in Capital		6,194,911			4,047,627
Deficit Accumulated During the Development Stage		(6,757,478	)		(4,340,564	)
Total Stockholders’ Deficit		(530,128	)		(289,648	)
Non-controlling Interest		301,659			151,160
Total Stockholders’ Deficit		(228,469	)		(138,488	)
Total Liabilities and Stockholders’ Deficit	$	1,152,653		$	513,921

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

F-1

Medical Care Technologies Inc.

(A Development Stage Company)

Consolidated Statements of Expenses

(Unaudited)

													Period from
													February 27, 2007
	For the Three Months Ended						For the Nine Months Ended						(Inception)
	September 30,						September 30,						to September 30,
	2012			2011			2012			2011			2012
Expenses
General and administrative	$	372,569		$	223,073		$	786,872		$	727,226		$	2,586,665
Depreciation and amortization expense		–			8,942			–			18,402			504,918
Management fees		45,020			129,687			272,193			305,783			1,505,640
Total Operating Expenses		(417,589	)		(361,702	)		(1,059,065	)		(1,051,411	)		(4,597,223	)
Other Income (Expense)
Interest expense		(136,938	)		(135,748	)		(367,063	)		(323,152	)		(854,571	)
Loss on derivative		(156,072	)		(7,381	)		(531,544	)		(78,210	)		(717,712	)
Loss on extinguishment of debt		–			–			(18,387	)		–			(55,612	)
Loss on settlement of debt		–			–			–			(13,750	)		(13,750	)
Loss on contract cancellation		–			–			(450,000	)		–			(450,000	)
Foreign currency exchange gain (loss)		(530	)		434			(551	)		431			(1,657	)
Total Other Income (Expense)		(293,540	)		(142,695	)		(1,367,545	)		(414,681	)		(2,093,302	)
Loss Before Discontinued Operations		(711,129	)		(504,397	)		(2,426,610	)		(1,466,092	)		(6,690,525	)
Loss from Discontinued Operations		–			–			–			–			(87,310	)
Net Loss	$	(711,129	)	$	(504,397	)	$	(2,426,610	)	$	(1,466,092	)	$	(6,777,835	)
Net Loss attributable to non-controlling interest		1,318			2,857			9,696			6,198			20,357
Net Loss Attributable to Medical Care Technologies Inc.	$	(709,811	)	$	(501,540	)	$	(2,416,914	)	$	(1,459,894	)	$	(6,757,478	)
Net Loss Per Common Share – Basic and Diluted available to Medical Care Technologies Inc.:	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Weighted Average Common Shares Outstanding –Basic and Diluted		2,513,008,000			229,920,000			1,418,963,000			192,895,000

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

F-2

Medical Care Technologies Inc.

(A Development Stage Company)

Consolidated Statements of Cash Flows

(Unaudited)

							Period from February 27, 2007
	For the Nine Months Ended						(Date of Inception)
	September 30,						to September 30,
	2012			2011			2012
Cash Flows From Operating Activities:
Net loss	$	(2,426,610	)	$	(1,466,092	)	$	(6,777,835	)
Adjustment to reconcile net loss to net cash used in operating activities:
Donated services and expenses		–			–			10,500
Depreciation and amortization		–			18,402			504,918
Stock-based compensation		755,487			731,121			3,074,570
Accretion of discount on convertible debt		292,691			301,387			744,314
Loss on derivative		531,544			78,210			717,712
Loss on extinguishment of debt		18,387			13,750			55,612
Loss on settlement of debt		–			–			13,750
Loss on contract cancellation		450,000			–			450,000
Amortization of debt financing costs		40,630			8,523			53,916
Changes in operating assets and liabilities:
Prepaid expenses and deposit		15,927			(13,498	)		(25,755	)
Accounts payable		101,403			46,012			229,778
Accrued liabilities		22,886			12,378			52,941
Net Cash Used in Operating Activities		(197,655	)		(269,807	)		(895,579	)
Cash Flows From Investing Activities:
Purchase of property, plant and equipment		–			–			(6,200	)
Cash paid for purchase of clinic license		(153,808	)		(257,695	)		(611,503	)
Net Cash Used in Investing Activities		(153,808	)		(257,695	)		(617,703	)
Cash Flows From Financing Activities:
Proceeds from sale of common stock for cash		–			–			141,000
Proceeds from loans payable		–			–			221,189
Proceeds from convertible note payable, net of debt financing costs		40,000			444,500			576,750
Due to related party		148,630			11,794			253,069
Contributions from non-controlling interest		160,195			97,515			322,016
Cash Provided by Financing Activities		348,825			553,809			1,514,024
(Decrease) Increase in Cash and Cash Equivalents		(2,638	)		26,307			742
Cash and Cash Equivalents – Beginning of Period		3,380			391			–
Cash and Cash Equivalents – End of Period	$	742		$	26,698		$	742
Supplemental Disclosures:
Interest paid		–			–			–
Income taxes paid		–			–			–
Non-Cash Disclosures:
Account payable paid through issuance of stock and convertible notes	$	54,500					$	54,500
Deposit paid directly by related party	$	195,312		$	–		$	195,312
Acquisition of property and equipment in accounts payable	$	24,802		$	–		$	24,802
Debt discount	$	276,100		$	78,901		$	795,804
Cancellation of shares	$	–		$	–		$	573
Conversion of derivative liability	$	877,428		$	391,816		$	1,467,371
Settlement of debt – non-cash	$	–		$	10,000		$	–
Reclassification of related party debt to/from accounts payable	$	–		$	–		$	48,249
Shares issued for acquisition of assets	$	–		$	–		$	504,918
Shares issued upon conversion of convertible debt and accrued interest	$	294,160		$	–		$	755,881
Purchase of clinic license paid directly by related party	$	285,645		$	306,933		$	285,645
Issuance of convertible notes to settle loans payable	$	152,000		$	–		$	152,000

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

F-3

Medical Care Technologies Inc.

(A Development Stage Company)

Consolidated Statement of Stockholders’ Equity (Deficit)

(Unaudited)

	Common Stock						Additional Paid-in			Deficit Accumulated During Development			Non– Controlling
	Shares			Amount			Capital			Stage			Interest		Total
Balance – February 27, 2007 (Inception)		–		$	–		$	–		$	–		$	–	$	–
Issuance of common stock for cash at $0.00001 per share to the President of the Company		57,500,000			575			4,425			–			–		5,000
Issuance of common stock for cash at $0.0001 per share		41,400,000			414			35,586			–			–		36,000
Donated services		–			–			5,000			–			–		5,000
Net loss for the period		–			–			–			(37,543	)		–		(37,543	)
Balance – December 31, 2007		98,900,000			989			45,011			(37,543	)		–		8,457
Donated services		–			–			5,500			–			–		5,500
Net loss for the year		–			–			–			(55,742	)		–		(55,742	)
Balance – December 31, 2008		98,900,000		$	989		$	50,511		$	(93,285	)	$	–	$	(41,785	)
Cancellation of common stock		(57,500,000	)		(575	)		(14,425	)		–			–		(15,000	)
Issuance of common stock for cash		57,500,000			575			14,425			–			–		15,000
Net loss for the year		–			–			–			(85,121	)		–		(85,121	)
Balance – December 31, 2009		98,900,000		$	989		$	50,511		$	(178,406	)	$	–	$	(126,906	)
Cancellation of common stock		(57,300,000	)		(573	)		573			–			–		–
Issuance of common stock for acquisition of assets		58,695,000			587			504,331			–			–		504,918
Issuance of common stock for cash at $0.20 per share		500,000			5			99,995			–			–		100,000
Issuance of common stock for consulting services		16,635,000			166			514,921			–			–		515,087
Issuance of common stock for management services		38,000,000			380			835,620			–			–		836,000
Issuance of common stock for director fees		500,000			5			10,995			–			–		11,000
Issuance of common stock for investor relations services		3,826,087			38			87,962			–			–		88,000
Issuance of common stock for advisory services		1,250,000			13			28,737			–			–		28,750
Stock-based compensation		–			–			3,012			–			–		3,012
Issuance of stock options		–			–			48			–			–		48
Net loss for the year		–			–			–			(2,189,271	)		–		(2,189,271	)
Balance – December 31, 2010		161,006,087		$	1,610		$	2,136,705		$	(2,367,677	)	$	–	$	(229,362	)

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

F-4

	Common Stock				Additional Paid-in			Deficit Accumulated During Development			Non– Controlling
	Shares		Amount		Capital			Stage			Interest			Total
Balance – December 31, 2010	161,006,087	$	1,610	$	2,136,705		$	(2,367,677	)	$	–		$	(229,362	)
Issuance of common stock for consulting and advisory services	45,000,000		450		411,490			–			–			411,940
Issuance of common stock upon conversion ofconvertible debt	99,929,606		999		460,722			–			–			461,721
Issuance of common stock for promissory note	1,250,000		12		23,738			–			–			23,750
Issuance of common stock for management services	11,500,000		115		165,985			–			–			166,100
Issuance of common stock for administrative services	5,125,000		52		65,216			–			–			65,268
Issuance of common stock for investor relations services	5,088,260		51		82,449			–			–			82,500
Conversion feature on convertible debt	–		–		589,943			–			–			589,943
Stock-based compensation	–		–		111,379			–			–			111,379
Net loss for the year	–		–		–			(1,972,887	)		(10,661	)		(1,983,548	)
Contribution from non-controlling interest	–		–		–			–			161,821			161,821
Balance – December 31, 2011	328,898,953	$	3,289	$	4,047,627		$	(4,340,564	)	$	151,160		$	(138,488	)
Issuance of common stock for cash	42,857,142		429		14,571			–			–			15,000
Issuance of common stock for consulting and advisory services	668,018,606		6,680		445,547			–			–			452,227
Issuance of common stock for management services	200,000,000		2,000		158,000			–			–			160,000
Issuance of common stock for administrative services	150,000,000		1,500		102,000			–			–			103,500
Issuance of common stock for engineering services	65,000,000		650		39,975			–			–			40,625
Issuance of common stock upon conversion of convertible debt	1,306,655,588		13,067		281,093			–			–			294,160
Issuance of common stock for financing fees	38,022,222		380		33,979			–			–			34,359
Issuance of common stock for commitment fees	444,444,444		4,444		195,556			–			–			200,000
Conversion feature on convertible debt	–		–		877,428			–			–			877,428
Stock-based compensation	–		–		(865	)		–			–			(865	)
Net loss for the period	–		–		–			(2,416,914	)		(9,696	)		(2,426,610	)
Contribution from non-controlling interest	–		–		–			–			160,195			160,195
Balance – September 30, 2012	3,243,896,955	$	32,439	$	6,194,911		$	(6,757,478	)	$	301,659		$	(228,469	)

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

F-5

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

1.   Nature of Operations and Continuance of Business

Medical Care Technologies Inc. (“we”, “our”, the “Company”) was incorporated in the State of Nevada on February 27, 2007 under the name of “Aventerra Explorations Inc.” and changed its name to “AM Oil Resources & Technology Inc.” on December 3, 2008. On September 28, 2009, the Company incorporated Medical Care Technologies Inc. for the sole purpose of effecting a name change. On October 6, 2009, the Company effected a merger with the wholly owned subsidiary and assumed the subsidiary’s name. In conjunction with the name change, the Company was granted a new trading symbol of MDCE. The Company is in the development stage as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, “Development Stage Entities”.

Basis of Presentation

These accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s December 31, 2011 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end December 31, 2011 as reported on Form 10-K, have been omitted.

Going Concern

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future.  These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations. As at September 30, 2012, the Company has a working capital deficit of $1,156,376 and has accumulated losses of $6,757,478 since inception. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Aventerra Explorations Ltd, a company incorporated in England, and the accounts of an incorporated venture, ReachOut Holdings Limited, in which the Company holds a 65% interest and maintains majority voting control. All inter-company accounts and transactions have been eliminated.

The Company entered into a joint venture agreement, pursuant to which the Company and the joint venture partner incorporated a new Hong Kong company on March 18, 2011 called ReachOut Holdings Limited for the purpose of operating children’s healthcare centers.

Reclassification

Certain prior year amounts have been reclassified to conform with the current year presentation.

Recently Adopted Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have impact on its financial position or results of operations.

F-6

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

2.   Property and Equipment

	Cost $		Accumulated Depreciation $		September 30, 2012 Net Carrying Value $		December 31, 2011 Net Carrying Value $
Computer hardware		30,000		30,000		–		–
Equipment		20,000		20,000		–		–
Leasehold improvements		31,002		–		31,002		6,200
		81,002		50,000		31,002		6,200

3.   Related Party Transactions

a)   On April 23, 2012, the Company entered into a CEO Agreement with the Chief Executive Officer (the “CEO”) of the Company, which has an initial term of 1 year commencing December 1, 2011.  Pursuant to the agreement, the Company agreed to pay the CEO an annual compensation of $120,000 commencing February 1, 2012 and issued 120,000,000 restricted shares of common stock to the CEO with a fair value of $96,000.

On December 30, 2010, the Company issued 500,000 stock options to the CEO of the Company with an exercise price of $0.25 per share.  The 500,000 stock options are exercisable until December 30, 2015.  125,000 stock options vested on June 28, 2011, 125,000 vested on Dec 28, 2011, and 250,000 stock options vested on June 28, 2012.  The fair value for these stock options were estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.38%, an expected volatility of 251%, and a 0% dividend yield. The weighted fair value of stock options was $0.011 per share. During the nine months ended September 30, 2012, the Company recorded stock-based compensation of $906 as management fees.

During the nine months ended September 30, 2012, the Company recognized a total of $181,906 of management fees for the CEO of the Company. At September 30, 2012, the Company is indebted to the CEO of the Company for $154,500 for management fees. The Company is also indebted to the CEO of the Company and a company controlled by the CEO of the Company for $29,003 for expenses paid on behalf of the Company.  These amounts are unsecured, bear no interest and are due on demand.

b)   On February 1, 2011, the Company entered into an Executive Officer Employment Agreement with its President (former Chief Operating Officer). Pursuant to the agreement, the Company agreed to pay a base compensation to be determined at such time when the Company secures a major financing in excess of $1,000,000. The Company issued 2,000,000 restricted shares of common stock for the first year of service at a fair value of $28,000. The Company will determine the stock based compensation for subsequent years 30 days prior to the anniversary date of the agreement. The term of the agreement is 36 months and the agreement is automatically renewable for successive one year.  On August 1, 2011, the Company amended the Executive Officer Employment Agreement.  Pursuant to the amendment, the Company issued 8,000,000 shares of common stock at a fair value of $113,600.  On April 23, 2012, the Company further amended the Executive Officer Employment Agreement.  Pursuant to the 2nd amendment, the Company agreed to pay an annual salary of $60,000 and issued an additional 80,000,000 restricted shares of common stock with a fair value of $64,000.

On February 1, 2011, the Company issued 100,000 stock options to the President with an exercise price of $0.25 per share. The 100,000 stock options are exercisable until February 1, 2016. 50,000 stock options vested on August 1, 2011, 25,000 stock options vested on January 1, 2012, and 25,000 stock options vested on August 1, 2012. The fair value for these stock options was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.48%, an expected volatility of 250%, and a 0% dividend yield. The weighted fair value of stock options was $0.014 per share. During the nine months ended September 30, 2012, the Company recorded stock-based compensation of $136 as management fees

During the nine months ended September 30, 2012, the Company recognized a total of $90,267 of management fees for the President of the Company.  At September 30, 2012, the Company is indebted to the President of the Company for $26,151 for management fees.  The Company is also indebted to the President of the Company for $8,328 for expenses paid on behalf of the Company. These amounts are unsecured, bear no interest and are due on demand.

F-7

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

c)   On December 30, 2010, the Company issued an aggregate of 250,000 stock options to four directors of the Company with an exercise price of $0.25 per share.  The 250,000 stock options are exercisable until December 30, 2015.  99,998 stock options vested on June 28, 2011, 75,001 stock options vested on December 28, 2011, and 75,001 stock options vested on June 28, 2012.  The fair value for these stock options were estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.38%, an expected volatility of 251%, and a 0% dividend yield. The weighted fair value of stock options was $0.011 per share. During the nine months ended September 30, 2012, the Company recorded stock-based compensation of $272 as management fees.

d)   On June 12, 2012, the Company entered into a loan agreement (the “Loan Agreement”) with Ocean Wise International Industrial Limited, a Hong Kong corporation (“Ocean Wise”), pursuant to which the Company received a loan of $285,645 from Ocean Wise to be used for the Company’s joint venture costs for its Shenzhen Phase 1 and 2 licenses. The loan accrues interest at 12% per annum and matures on December 12, 2012. In the event of default, all principal and accrued interest will become immediately due and payable and the Company will be required to pay Ocean Wise an initial penalty equal to 40% of the Company’s joint venture share in Reachout Holdings Limited (“Reachout”), which penalty will increase an additional 5% for every 5 days such default continues. Ocean Wise and the Company currently own 35% and 65%, respectively, in Reachout, a Hong Kong corporation.  At September 30, 2012, accrued interest of $10,283 is included in due to related parties.

e)   In May 2012, Ocean Wise made a deposit of $195,312 on behalf of Reachout to the government of China for the license to operate healthcare center in Shenzhen, China.  The deposit will be returned to Ocean Wise in November 2012.  The related liability to Ocean Wise is included in due to related parties.

4.      Loans payable

   The following table summarizes the change in loans payable for the nine months ended September 30, 2012:

Balance at December 31, 2011	$	210,981
Settlement of loan payable through issuance of convertible notes		(152,000	)
Foreign exchange translation		202
Balance at September 30, 2012	$	59,183

   As of September 30, 2012, the Company is in default of loans amounting to $59,183.

5.      Convertible Notes Payable

a)   On June 1, 2011, the Company entered into a Securities Purchase Agreement with Asher for the sale of a Convertible Promissory Note (the “Note”) in the principal amount of $32,500. The Company received net proceeds from the issuance of the Note in the amount of $30,000 and incurred debt financing costs of $2,500, which was amortized over the term of the Note. The Note, which is due on March 6, 2012, bears interest at the rate of 8% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Asher at any time after 180 days from June 1, 2011 at a conversion price equal to a 39.9% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on November 28, 2011.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $27,056 as a derivative liability, reducing the carrying value of the convertible loan to $5,444 upon the commencement of the conversion period on November 28, 2011. The initial fair value of the derivative liability at November 28, 2011 of $27,056 was determined using the Black Scholes option pricing model with a quoted market price of $0.0029, a conversion price of $0.002, expected volatility of 241%, no expected dividends, an expected term of 0.27 years and a risk-free interest rate of 0.03%. The discount on the convertible loan is accreted over the term of the convertible loan.

On December 12, 2011, the Company issued 8,333,333 restricted shares of common stock upon the conversion of the principal amount of $10,000. Before the conversion of the note on December 12, 2011, the Company recorded accretion of $2,037. Upon the conversion of the note, the Company recognized unamortized discount of $7,698 as interest expense. The fair value of the derivative liability at December 12, 2011 was $57,269 and $17,621 was reclassified to additional paid-in capital upon conversion of the principal amount of $10,000. The fair value of the derivative liability at December 12, 2011 was determined using the Black Scholes option pricing model with a quoted market price of $0.003, a conversion price of $0.0012, expected volatility of 271%, no expected dividends, an expected term of 0.23 years and a risk-free interest rate of 0.01%.

F-8

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

On December 22, 2011, the Company issued 7,692,308 restricted shares of common stock upon the conversion of the principal amount of $10,000.  Before the conversion of the note on December 22, 2011, the Company recorded accretion of $1,384.  Upon the conversion of the note, the Company recognized unamortized discount of $7,083 as interest expense.  The fair value of the derivative liability at December 22, 2011 was $34,299 and $15,244 was reclassified to additional paid-in capital upon conversion of the principal amount of $10,000.  The fair value of the derivative liability at December 22, 2011 was determined using the Black Scholes option pricing model with a quoted market price of $0.0027, a conversion price of $0.0013, expected volatility of 371%, no expected dividends, an expected term of 0.21 years and a risk-free interest rate of 0.01%.

On January 3, 2012, the Company modified the terms of the convertible promissory note.  The conversion rate for the convertible note was amended to the lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.

The modification was analyzed under ASC 470-50 “Debt – Modifications and Extinguishments,” to determine if extinguishment accounting was applicable.  Pursuant to ASC 470-50-40-11, the guidance found in ASC 470-50 does not apply to previously bifurcated embedded conversion options accounted for under ASC 815.  As a result of the guidance found in ASC 470-50, it was concluded there was no extinguishment of debt, no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized.

The Company then analyzed the modification of the conversion feature pursuant to ASC 815 “Derivatives and Hedging”.  The change in terms of the conversion features would have resulted in a change in the fair value of the derivative liability.  As the derivative liability is marked to fair value at each reporting period, the change in fair value as a result of the modification was recorded during the nine months ended September 30, 2012.

During the nine months ended September 30, 2012, the Company issued 27,600,000 restricted shares of common stock upon the conversion of the principal amount of $12,500 and accrued interest of $1,300.  Before the conversion of the note, the Compa recorded accretion of $1,782.  Upon the conversion of the note, the Company recognized unamortized discount of $6,194 as interest expense.  The fair value of the derivative liability of $36,700 was reclassified to additional paid-in capital upon conversion of the principal amount of $12,500.  The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0015 to $0.0020, a conversion price of $0.0005, expected volatility ranging from 347% to 411%, no expected dividends, an expected term ranging from 0.11 to 0.15 years and a risk-free interest rate ranging from 0.02% to 0.04%.

During the nine months ended September 30, 2012, the Company recognized a loss of $20,084 on the change in fair value of the derivative liability.

b)   On June 1, 2011, the Company entered into a Convertible Promissory Note agreement for $55,000. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to the lower of 70% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice. The loan bears interest at 8% per year and the principal amount and any interest thereon are due on May 31, 2012.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $79,141 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $24,141. The initial fair value of the derivative liability at June 1, 2011 of $79,141 was determined using the Black Scholes option pricing model with a quoted market price of $0.0180, a conversion price of $0.0094, expected volatility of 186%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.18%. The discount on the convertible loan is accreted over the term of the convertible loan.

On December 9, 2011, the Company modified the terms of the convertible promissory note.  The modified note bears interest at 15% per annum (20% during such period, if any, that the Company fails to timely file its periodic reports pursuant to the Securities Exchange Act of 1934 and 18% after the 10th day after an event of default occurs) and all unpaid principal and accrued interest on the modified note shall be due and payable on December 9, 2013 (unless extended by the note holder by the amount of days of the pendency of an event of default) in cash or common stock of the Company, at the note holder’s option.  The modified note is convertible, at any time, in whole or in part, at the note holder’s option, into common stock of the Company at an initial conversion price per share equal to 50% of the average of the five lowest intraday prices of the Company’s common stock during the previous 20 trading days.

The modified debenture also provides that 30,000,000 shares of the Company’s common stock will be held in escrow pursuant to a stock escrow agreement among the Company, the note holder and the escrow agent.

F-9

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

Pursuant to ASC 470-50, “Debt – Modification and Extinguishment,” it was determined that the original and modified notes are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note.  The modified note was initially recorded at fair value and that amount was compared to the carrying value of the original note prior to modification to determine the gain or loss on extinguishment of debt.

On December 9, 2011, prior to the modification of the convertible note, the carrying value of the convertible note was $61,586 (principal amount of $55,000 plus accrued interest of $2,302 plus derivative liability of $55,611 less unamortized discount of $51,327).

The Company determined the fair value of the embedded conversion feature of the modified debt pursuant to ASC 815, “Derivatives and Hedging.” The initial fair value of the derivative liability of the modified debt instrument at December 9, 2011 was determined using the Black Scholes option pricing model with a quoted market price of $0.0022, a conversion price of $0.0011, expected volatility of 205%, no expected dividends, an expected term of two years and a risk-free interest rate of 0.22%. The Company recognized the fair value of the embedded conversion feature of $98,811 as a derivative liability, reduced the value of the convertible loan to $0 and recognized a “day 1” derivative loss of $43,811.

The fair value of the modified debt of $98,811 (principal amount of $55,000 plus derivative liability of $98,811 less unamortized discount of $55,000) was compared to the carrying value of the original debt of $61,586 and the Company recorded a loss on extinguishment of debt of $37,225.

On December 19, 2011, the Company issued 9,000,000 restricted shares of common stock upon the conversion of the principal amount of $9,000. Before the conversion of the modified note on December 19, 2011, the Company recorded accretion of $543. Upon the conversion of the note, the Company recognized the unamortized discount of $8,911 as interest expense. The fair value of the derivative liability at December 19, 2011 was $153,398 and $25,101 was reclassified to additional paid-in capital upon the conversion of the principal amount of $9,000.  The fair value of the derivative liability at December 19, 2011 was determined using the Black Scholes option pricing model with a quote market price of $0.0030, a conversion price of $0.0010, expected volatility of 217%, no expected dividends, an expected term of 1.98 years and a risk-free interest rate of 0.24%.

During the nine months ended September 30, 2012, the Company issued 118,408,241 restricted shares of common stock upon the conversion of the principal amount of $46,000 and accrued interest of $1,710.  Before the conversion of the modified note, the Company recorded accretion of $9,241. Upon the conversion of the note, the Company recognized the unamortized discount of $36,170 as interest expense. The fair value of the derivative liability of $113,376 was reclassified to additional paid-in capital upon the conversion of the principal amount of $46,000.  The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quote market price ranging from $0.0005 to $0.0025, a conversion price ranging from $0.0003 to $0.0010, expected volatility ranging from 216% to 279%, no expected dividends, an expected term ranging from 1.49 to 1.93 years and a risk-free interest rate ranging from 0.22% to 0.27%.

During the nine months ended September 30, 2012, a loss of $7,883 was recognized on the change in fair value of the derivative liability.

c)   On July 20, 2011, the Company entered into a Securities Purchase Agreement with Asher for the sale of a Convertible Promissory Note (the “Note”) in the principal amount of $32,500. The Company received net proceeds from the issuance of the Note in the amount of $30,000 and incurred debt financing costs of $2,500, which was amortized over the term of the Note. The Note, which is due on April 23, 2012, bears interest at the rate of 8% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Asher at any time after 180 days from July 20, 2011 at a conversion price equal to a 39.9% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on January 16, 2012.

On January 3, 2012, the Company modified the terms of the convertible promissory note.  The conversion rate for the convertible note was amended to the lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.

The modification was analyzed under ASC 470-50 “Debt – Modifications and Extinguishments,” to determine if extinguishment accounting was applicable.  As a result of the guidance found in ASC 470-50, it was concluded there was no extinguishment of debt, no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized.

F-10

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $115,621 as a derivative liability, reduced the carrying value of the convertible loan to $0, and recognized a “day 1”derivative loss of $83,121 upon the commencement of the conversion period on January 16, 2012. The initial fair value of the derivative liability at January 26, 2012 of $115,621 was determined using the Black Scholes option pricing model with a quoted market price of $0.0021, a conversion price of $0.0005, expected volatility of 350%, no expected dividends, an expected term of 0.27 year and a risk-free interest rate of 0.03%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 90,588,585 restricted shares of common stock upon the conversion of the principal amount of $32,500 and accrued interest of $1,300.  Before the conversion of the note, the Company recorded accretion of $7,541. Upon the conversion of the note, the Company recognized unamortized discount of $24,959 as interest expense. The fair value of the derivative liability of $102,748 was reclassified to additional paid-in capital upon the conversion of principal amount of $32,500. The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0009 to $0.0017, a conversion price ranging from $0.0003 to $0.0005, expected volatility ranging from 299% to 360%, no expected dividends, an expected term ranging from 0.10 to 0.23 years and a risk-free interest rate ranging from 0.05% to 0.10%.

During the nine months ended September 30, 2012, a loss of $70,248 was recognized on the change in fair value of the derivative liability.

d)   On September 9, 2011, the Company entered into a Securities Purchase Agreement with Asher for the sale of a Convertible Promissory Note (the “Note”) in the principal amount of $45,000. The Company received net proceeds from the issuance of the Note in the amount of $42,500 and incurred debt financing costs of $2,500, which will be amortized over the term of the Note. The Note, which is due on June 12, 2012, bears interest at the rate of 8% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Asher at any time after 180 days from September 9, 2011 at a conversion price equal to a 45% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on March 7, 2012.

On January 3, 2012, the Company modified the terms of the convertible promissory note.  The conversion rate for the convertible note was amended to the lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.

The modification was analyzed under ASC 470-50 “Debt – Modifications and Extinguishments,” to determine if extinguishment accounting was applicable.  As a result of the guidance found in ASC 470-50, it was concluded there was no extinguishment of debt, no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $172,698 as a derivative liability, reduced the carrying value of the convertible loan to $0, and recognized a “day 1” derivative loss of $127,698 upon the commencement of the conversion period on March 7, 2012. The initial fair value of the derivative liability at March 7, 2012 of $172,698 was determined using the Black Scholes option pricing model with a quoted market price of $0.0013, a conversion price of $0.0003, expected volatility of 368%, no expected dividends, an expected term of 0.27 year and a risk-free interest rate of 0.08%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 170,376,223 restricted shares of common stock upon the conversion of principal amount of $45,000 and accrued interest of $1,800.  Before the conversion of the note, the Company recorded accretion of $13,623. Upon the conversion of the note, the Company recognized unamortized discount of $29,509 as interest expense. The fair value of the derivative liability of $120,559 was reclassified to additional paid-in capital upon the conversion of principal amount of $45,000. The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0005 to $0.0013, a conversion price ranging from $0.0002 to $0.0008, expected volatility ranging from 218% to 511%, no expected dividends, an expected term ranging from 0.08 to 0.22 years and a risk-free interest rate ranging from 0.05% to 0.09%.

During the nine months ended September 30, 2012, a loss of $75,557 was recognized on the change in fair value of the derivative liability.

F-11

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

e)   On November 17, 2011, the Company entered into Convertible Promissory Note agreement for $25,000.  Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 70% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 8% per year and the principal amount and any interest thereon are due on November 17, 2012.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $16,365 as a derivative liability and reduced the carrying value of the convertible loan to $8,635.  The initial fair value of the derivative liability at November 17, 2011 of $16,365 was determined using the Black Scholes option pricing model with a quoted market price of $0.003, a conversion price of $0.0033, expected volatility of 223%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.10%. The discount on the convertible loan is accreted over the term of the convertible loan.

On May 21, 2011, the Company modified the terms of the convertible promissory note.  The modified note bears interest at 12% per annum and all unpaid principal and accrued interest on the modified note shall be due and payable on May 21, 2013.  The modified note is convertible, at any time, in whole or in part, at the note holder’s option, into common stock of the Company at a conversion price per share equal to 50% of the lowest closing bid price of Company’s common stock during the previous 15 trading days.

Pursuant to ASC 470-50, “Debt – Modification and Extinguishment,” it was determined that the original and modified notes are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note.  The modified note was initially recorded at fair value and that amount was compared to the carrying value of the original note prior to modification to determine the gain or loss on extinguishment of debt.

On May 21, 2012, prior to the modification of the convertible note, the carrying value of the convertible note was $47,888 (principal amount of $25,000 plus accrued interest of $1,019 plus derivative liability of $32,050 less unamortized discount of $10,181).

The Company determined the fair value of the embedded conversion feature of the modified debt pursuant to ASC 815, “Derivatives and Hedging.” The initial fair value of the derivative liability of the modified debt instrument at May 21, 2012 was determined using the Black Scholes option pricing model with a quoted market price of $0.0001, a conversion price of $0.0004, expected volatility of 305%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.21%. The Company recognized the fair value of the embedded conversion feature of $66,275 as a derivative liability and reduced the value of the convertible loan to $0.

The fair value of the modified debt of $66,275 (principal amount of $25,000 plus derivative liability of $66,275 less unamortized discount of $25,000) was compared to the carrying value of the original debt of $47,888 and the Company recorded a loss on extinguishment of debt of $18,387.

During the nine months ended September 30, 2012, the Company issued 72,571,428 restricted shares of common stock upon the conversion of the principal amount of $25,000 and accrued interest of $400. Before the conversion of the note, the Company recorded accretion of $816. Upon the conversion of the note, the Company recognized unamortized discount of $24,184 as interest expense. The fair value of the derivative liability of $47,224 was reclassified to additional paid-in capital upon the conversion of principal amount of $25,000. The fair value of the derivative liability was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0007 to $0.001, a conversion price of $0.0004, expected volatility ranging from 305% to 312%, no expected dividends, an expected term ranging from 0.86 to 0.99 years and a risk-free interest rate ranging from 0.18% to 0.21%.

During the nine months ended September 30, 2012, a gain of $20,849 was recognized on the change in fair value of the derivative liability.

f)   On March 6, 2012, the Company entered into Convertible Promissory Note agreement for $10,000.  Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 80% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on March 5, 2013.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $14,058 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $4,058.  The initial fair value of the derivative liability at March 6, 2012 of $14,058 was determined using the Black Scholes option pricing model with a quoted market price of $0.001, a conversion price of $0.0006, expected volatility of 270%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.17%. The discount on the convertible loan is accreted over the term of the convertible loan.

F-12

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

During the nine months ended September 30, 2012, a loss of $2,168 was recognized on the change in fair value of the derivative liability.

g)   On March 8, 2012, the Company entered into Convertible Promissory Note agreement for $5,000.  Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 80% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 6% per year and the principal amount and any interest thereon are due on March 7, 2013.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $7,547 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $2,547 on derivative liability.  The initial fair value of the derivative liability at March 8, 2012 of $7,547 was determined using the Black Scholes option pricing model with a quoted market price of $0.0013, a conversion price of $0.0007, expected volatility of 270%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.18%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, a loss of $1,114 was recognized on the change in fair value of the derivative liability.

h)   On May 29, 2012, the Company entered into Convertible Promissory Note agreement for $65,000 in connection with a debt purchase agreement of an existing loan payable for the same amount. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on November 29, 2014.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $114,237 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $49,237.  The initial fair value of the derivative liability at May 29, 2012 of $114,237 was determined using the Black Scholes option pricing model with a quoted market price of $0.0007, a conversion price of $0.0004, expected volatility of 246%, no expected dividends, an expected term of 2.5 years and a risk-free interest rate of 0.36%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 345,000,000 restricted shares of common stock upon the conversion of the principal amount of $48,625. Before the conversion of the note, the Company recorded accretion of $781. Upon the conversion of the note, the Company recognized unamortized discount of $48,112 as interest expense. The fair value of the derivative liability of $196,515 was reclassified to additional paid-in capital upon the conversion of principal amount of $48,625. The fair value of the derivative liability was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0004 to $0.0011, a conversion price ranging from $0.00008 to $0.0004, expected volatility ranging from 240% to 260%, no expected dividends, an expected term ranging from 2.16 to 2.50 years and a risk-free interest rate ranging from 0.23% to 0.36%.

During the nine months ended September 30, 2012, a loss of $171,038 was recognized on the change in fair value of the derivative liability.

i)   On May 29, 2012, the Company entered into Convertible Promissory Note agreement for $65,000 in connection with a debt purchase agreement of an existing loan payable for the same amount. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on November 29, 2014.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $114,237 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $49,237.  The initial fair value of the derivative liability at May 29, 2012 of $114,237 was determined using the Black Scholes option pricing model with a quoted market price of $0.0007, a conversion price of $0.0004, expected volatility of 246%, no expected dividends, an expected term of 2.5 years and a risk-free interest rate of 0.36%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 355,000,000 restricted shares of common stock upon the conversion of the principal amount of $49,425. Before the conversion of the note, the Company recorded accretion of $789. Upon the conversion of the note, the Company recognized unamortized discount of $48,892 as interest expense. The fair value of the derivative liability of $213,716 was reclassified to additional paid-in capital upon the conversion of principal amount of $49,425. The fair value of the derivative liability was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0004 to $0.0011, a conversion price ranging from $0.00008 to $0.0004, expected volatility ranging from 240% to 260%, no expected dividends, an expected term ranging from 2.16 to 2.50 years and a risk-free interest rate ranging from 0.23% to 0.37%.

F-13

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

During the nine months ended September 30, 2012, a loss of $186,309 was recognized on the change in fair value of the derivative liability.

j)   On July 19, 2012, the Company entered into a Convertible Promissory Note agreement in the principal amount of $29,500 (the “Note”) and incurred debt financing costs of $2,000, which will be amortized over the term of the Note. The Note, which is due on January 13, 2013, bears interest at the rate of 10% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 12% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at any time after 180 days from July 19, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 90 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on January 15, 2013.

k)   On August 13, 2012, the Company entered into a Convertible Promissory Note agreement in the principal amount of $35,000 (the “Note”) and incurred debt financing costs of $2,000, which will be amortized over the term of the Note. The Note, which is due on February 13, 2013, bears interest at the rate of 10% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 12% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at any time after 180 days from August 13, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 30 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on February 9, 2013.

l)   On September 26, 2012, the Company entered into a Convertible Promissory Note agreement in the principal amount of $28,600 (the “Note”) pursuant to an amendment of an existing loan payable amounting to $22,000. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest 5 intraday prices for the common stock during the 20 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on September 26, 2013.  From and after the 10th day after an event of default, the interest rate to any unpaid amounts owed shall be increased to 18% per annum.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $46,592 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $17,992.  The initial fair value of the derivative liability at September 26, 2012 of $46,592 was determined using the Black Scholes option pricing model with a quoted market price of $0.0004, a conversion price of $0.0002, expected volatility of 317%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.17%. The discount on the convertible loan is accreted over the term of the convertible loan.

On September 26, 2012, the Company issued 127,111,111 shares of common stock upon the conversion of the principal amount of $28,600.  Upon the conversion of the note, the Company recognized unamortized discount of $28,600 as interest expense.  The fair value of the derivative liability of $46,592 was reclassified to additional paid-in capital upon the conversion of principal amount of $28,600.

6.   Common and Preferred Stock

The preferred stock may be divided into and issued in series by the Board of Directors. The Board is authorized to fix and determine the designations, rights, qualifications, preferences, limitations and terms, within legal limitations. As of September 30, 2012 and December 31, 2011, there was no preferred stock issued and outstanding.

On March 29, 2012, the Company held a Special Meeting of Shareholders and authorized the increasing of authorized capital of the Company from 500,000,000 shares of common stock with a par value of $0.00001 per share to 8,000,000,000 shares of common stock with a par value of $0.00001 per share and granted discretionary authority to the Company’s Board of Directors to implement a reverse stock split of the Company’s common stock, on a basis of up to five hundred pre-consolidation shares within twelve months of the date of the Special Meeting.

During the three months ended September 30, 2012:

a)      On July 26, 2012, the Company issued 42,857,142 shares of common stock at $0.00035 per share for proceeds of $15,000.  The Company also granted an option to purchase an additional 42,857,142 shares of common stock with an exercise price of $0.00035 per share to the investor.  The option expires on November 23, 2012.

F-14

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

b)   The Company issued 470,000,000 shares of common stock at a fair value of $244,000 for consulting services.

c)   The Company issued 95,000,000 shares of common stock at a fair value of $54,000 for administrative services.

d)   The Company issued 32,500,000 shares of common stock at a fair value of $14,625 for engineering services.

e)   The Company issued 768,253,968 shares of common stock upon the conversions of various convertible notes as described in Note 5.

F-15

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

During the three months ended June 30, 2012:

f)      The Company issued 168,018,606 shares of common stock at a fair value of $167,227 for consulting services.

g)      The Company issued 200,000,000 shares of common stock at a fair value of $160,000 for management services.

h)      The Company issued 55,000,000 shares of common stock at a fair value of $49,500 for administrative services.

i)       The Company issued 32,500,000 shares of common stock at a fair value of $26,000 for engineering services.

j)       The Company issued 364,247,689 shares of common stock upon the conversions of various convertible notes as described in Note 5.

k)      The Company issued 4,688,889 shares of common stock at a fair value of $4,359 pursuant to the finder’ fees agreement as described in Note 11(f).

l)       The Company issued 444,444,444 shares of common stock at a fair value of $200,000 for commitment fees.

During the three months ended March 31, 2012:

m)     In November 2011, the Company granted 90,000,000 shares of common stock pursuant to a consulting agreement.  The award vests over the 9-month term of the agreement.  For the three months ended March 31, 2012, the Company recognized stock-based compensation of $41,000 which is equivalent to the fair value of the 30,000,000 shares that vested during the period. Refer to Note 11(e).

n)     The Company issued 174,153,931 shares of common stock upon the conversions of various convertible notes as described in Note 5.

o)     The Company issued 33,333,333 restricted shares of common stock at a fair value of $30,000 for structuring and due diligence fee pursuant to the term sheet as described in Note 11(n).

7.   Stock Options

On December 30, 2010, the Company adopted a stock option plan named 2010 Stock Option Plan (the “Plan”), the purpose of which is to provide incentives to key employees, officers, directors, consultants, and agents of the Company for high levels of performance and to reward unusual efforts which increase the earnings and long-term growth of the Company. Prior to grant of options under the Plan, there were 10,000,000 shares of common stock available for issuance under the Plan.

During the year ended December 31, 2010, the Company granted 1,350,000 stock options with an exercise price of $0.25 per share. All 1,350,000 stock options are exercisable until December 30, 2015. Of the 1,350,000 stock options, 458,330 stock options vest on June 28, 2011, 383,335 stock options vest on December 28, 2011 and 508,335 stock options vest on June 28, 2012. The fair value for these stock options was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.38%, an expected volatility of 251%, and a 0% dividend yield. The weighted average fair value of stock options granted was $0.011 per share.

During the year ended December 31, 2011, the Company granted 350,000 stock options with an exercise price of $0.25 per share. Of the 350,000 stock options, 250,000 stock options are exercisable until December 30, 2015 and 100,000 stock options are exercisable until February 1, 2016. Of the 350,000 stock options, 100,000 stock options vest on June 28, 2011, 50,000 stock options vest on August 1, 2011, 75,000 stock options vest on December 28, 2011, 25,000 stock options vest on January 1, 2012, 75,000 stock options vest on June 28, 2012 and 25,000 stock options vest on August 1, 2012. The fair value for these stock options was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 9.47 years, a risk-free rate of 2.37%, an expected volatility of 214%, and a 0% dividend yield. The weighted average fair value of stock options granted was $0.0093 per share.

During the nine months ended September 30, 2012, the Company reversed stock-based compensation of $1,907 included in general and administrative expense and recorded $1,042 as management fees. During the nine months ended September 30, 2011, the Company recorded stock-based compensation of $14,476 as general and administrative expense and $4,883 as management fees.

During the nine months ended September 30, 2012, the Company granted an option to an investor to purchase 42,857,142 shares of common stock.  The option is exercisable at $0.00035 per share until November 23, 2012.

F-16

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

A summary of the Company’s stock option activity is as follows:

	Number of Options #		Weighted Average Exercise Price $		Weighted Average Remaining Contractual Life (years) #		Aggregate Intrinsic Value $
Outstanding, December 31, 2010		1,350,000		0.25
Granted		350,000		0.25
Outstanding, December 31, 2011		1,700,000		0.25
Granted		42,857,142		0.00035
Outstanding, September 30, 2012		44,557,142		0.00987		0.27		6,429
Exercisable, September 30, 2012		44,557,142		0.00987		0.27		6,429

A summary of the status of the Company’s non-vested stock options as of September 30, 2012, and changes during the nine months ended September 30, 2012 are presented below:

Non-vested options	Number of Options #			Weighted Average Grant Date Fair Value $
Non-vested at December 31, 2010		1,350,000			0.011
Granted		350,000			0.018
Vested		(1,066,665	)		0.015
Non-vested at December 31, 2011		633,335			0.008
Granted		42,857,142			–
Vested		(43,490,477	)		–
Non-vested at September 30, 2012		–			–

At September 30, 2012, there was $nil of unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Plan. There was $6,429 intrinsic value associated with the outstanding options at September 30, 2012.

8.   Share Purchase Warrants

A summary of the changes in the Company’s share purchase warrants is presented below:

	Number of Warrants #			Exercise Price $
Balance, December 31, 2010 and 2011		500,000			0.15
Expired		(500,000	)		0.15
Balance, September 30, 2012		–			–

F-17

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

9.   Derivative Instruments

In June 2008, the FASB ratified ASC 815-15, “Derivatives and Hedging – Embedded Derivatives” (“ASC 815-15”). ASC 815-15, specifies that a contract that would otherwise meet the definition of a derivative, but is both (a) indexed to its own stock and (b) classified in stockholders’ equity in the statement of financial position would not be considered a derivative financial instrument.  ASC 815-15 provides a new two-step model to be applied in determining whether a financial instrument or an embedded feature is indexed to an issuer’s own stock, including evaluating the instrument’s contingent exercise and settlement provisions, and thus able to qualify for the ASC 815-15 scope exception. It also clarifies the impact of foreign currency denominated strike prices and market-based employee stock option valuation instruments on the evaluation. ASC 815-15 is effective for the first annual reporting period beginning after December 15, 2008 and early adoption is prohibited.

Convertible Debt – The embedded conversion option in the Company’s convertible notes described in Note 5 contain a conversion feature that qualifies for embedded derivative classification.  The fair value of these liabilities will be re-measured at the end of every reporting period and the change in fair value will be reported in the consolidated statement of operations as a gain or loss on derivative financial instruments.

The following table summarizes the change in derivative liabilities for the nine months ended September 30, 2012:

Balance at December 31, 2011	$	155,958
Addition of new derivative liability		285,324
Settlement of derivative liability through conversion of debt		(877,428	)
Derivative loss included in other income (expense)		531,544
Balance at September 30, 2012	$	95,398

10.   Financial Instruments and Fair Value Measurements

ASC 820 “Fair Value Measurements” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s financial instruments consist principally of cash, accounts payable, convertible note payable, loans payable and amounts due to related parties. Pursuant to ASC 820, the fair value of cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

The Company’s operations are in Canada and China, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

F-18

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's consolidated balance sheet as of September 30, 2012 and December 31, 2011 as follows:

	Fair Value Measurements Using
	Quoted Price in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance as of September 30,  2012		Balance as of December 31, 2011
Liabilities:
Derivative Liabilities	$	–	$	–	$	95,398	$	95,398	$	155,958
Total liabilities measured at fair value	$	–	$	–	$	95,398	$	95,398	$	155,958

11.   Commitments

a)   On May 10, 2011, the Company entered into a management advisory services agreement with a consultant for an initial period of one year. In consideration for such services, the Company is required to make payments of $25,000 per quarter as well as any out-of-pocket expenses. In the event that the Company is unable to make such payments, they are given the option to issue shares for such services totalling 7,500,000. On June 29, 2011, the Company issued 3,750,000 shares of common stock at a fair value of $63,750, registered under the June 2, 2011 S-8 Registration Statement.  On August 15, 2011, the Company issued 1,250,000 shares of common stock at a fair value of $17,250, registered under the June 2, 2011 S-8 Registration Statement.

b)   On May 18, 2011, ReachOut entered into two office lease agreements, which commenced on May 22, 2011 until May 21, 2017.  The minimum rent from May 22, 2011 to May 21, 2013 is $5,550 (RMB35,060) per month, the minimum rent from May 22, 2013 to May 21, 2014 is $5,889 (RMB37,200) per month, the minimum rent from May 22, 2014 to May 21, 2015 is $6,079 (RMB38,400), the minimum rent from May 22, 2015 to May 21, 2016 is $6,269 (RMB39,600) and the minimum rent from May 22, 2016 to May 21, 2017 is $6,554 (RMB41,400).  On May 1, 2012, the Company and the lessor agreed to cease the rent payment until the opening of the health center.

c)   On September 1, 2011, the Company entered into a medical director services agreement for a period of 2 years.  Pursuant to the agreement, the Company agreed to issue 2,000,000 shares of common stock as follows: 1,000,000 shares within 10 days of the execution of the agreement; and 1,000,000 shares on September 1, 2012.  On September 19, 2011, the Company issued 1,000,000 restricted shares of common stock at a fair value of $10,000.  During the quarter ended September 30, 2012, the medical director agreed to waive the 1,000,000 shares issuable on September 1, 2012.

d)   On October 15, 2011, ReachOut entered into an interior design contract with G-Design Consultant Inc. and Art Team Limited (“G-Design”).  Pursuant to the agreement, ReachOut agreed to pay a total sum not to exceed $31,002.  The amount is payable as follows: $6,200 to be paid when the preliminary design phase and presentation have been accomplished; $13,951 to be paid on completion and acceptance of the final design concept; $10,851 to be paid when all completed design or construction drawings have been approved by Chinese government officials and departments and is ready to be used for construction.  The Company paid $6,200 to G-Design on November 14, 2011. During the nine months ended September 30, 2012, the Company accrued $13,951 upon the completion and acceptance of the final design concept and $10,851 upon the approval by the Chinese government on the completed design and construction drawings.

e)   On November 11, 2011, the Company entered into a business advisory and consulting agreement with a consultant for a term of nine months. In consideration for such services, the Company agreed to issue 10,000,000 shares of common stock of the Company each month, for a total of 90,000,000 shares of common stock, which will be registered under a Form S-8 Registration.  Pursuant to the agreement, during the period ended December 31, 2011 and September 30, 2012, the Company recognized $49,000 and $41,000, respectively, of expense related to this agreement. On March 31, 2012, the agreement was terminated.  Refer to Note 6(m).

F-19

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

f)   On November 29, 2011, the Company entered into a finder’s fee agreement with Vince Trapasso (“Trapasso”) whereby the Company agreed to pay finder’s fee in cash equal to 5% and in restricted common shares equal to 5% of the total dollar amount of the financing provided by those persons or entities who were introduced by Trapasso.  The initial term of the agreement is one year and the agreement will automatically be renewed at the expiration of the first year of service and at each anniversary of the agreement.  After the first anniversary, the agreement can be terminated by either party with 10 days notice.  During the year ended December 31, 2011, the Company paid $2,750 to Trapasso. During the nine months ended September 30, 2012, the Company issued 4,688,889 restricted shares of common stock to Trapasso.  Refer to Note 6(k).

g)   On March 8, 2012, the Company entered into a business consulting services agreement with a consultant whereby the Company agreed to issue 65,000,000 shares of common stock, which will be registered under a Form S-8 Registration agreement.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter.  On July 17, 2012, the Company has not issued any shares to the consultant and has entered into another agreement in replacement of the March 8, 2012 agreement.  Refer to Note 11(w).

h)   On April 1, 2012, the Company entered into a business advisory and consulting agreement with a consultant for a term of nine months.  In consideration for such services, the Company agreed to issue 90,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  The 90,000,000 shares will be issued in tranches throughout the term of the agreement as follows: i) 30,000,000 shares upon execution of the agreement or upon effective filing of the Form S-8; ii) 30,000,000 shares on or before August 1, 2012 and; iii) 30,000,000 shares on or before November 1, 2012.  As of September 24, 2012, the Company has fully issued the 90,000,000 shares of common stock at a total fair value of $60,000.

i)   On April 1, 2012, the Company entered into an administrative services agreement for a term of one year.  In consideration for such services, the Company agreed to issue 60,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  The 60,000,000 shares will be issued pro rata on a monthly basis with the pro rata shares being due at the end of each month. As of September 24, 2012, the Company has fully issued the 60,000,000 shares of common stock at a total fair value of $46,000.

j)   On April 9, 2012, the Company entered into a business development services agreement for a period of one year for general consulting services in connection with acquiring medical centre licenses and/or operational centres in China.  Pursuant to the agreement, the Company agreed to issue 31,885,300 shares of common stock for the introduction of three opportunities for the Company to acquire ownership within a medical center joint venture in China.  The 31,885,300 shares are issuable as follows: i) 17,918,606 shares upon execution of the agreement; ii) 3,981,913 shares after the signing of the first letter of intent to enter into a joint venture to develop a medical center; iii) 3,981,913 shares when the Company signs a contract for the first joint venture medical center in China; iv) 2,986,434 shares when the Company signs a contract for the second joint venture medical center in China; iv) 2,986,434 shares when the Company signs a contract for the third joint venture medical center in China.  During the nine months ended September 30, 2012, the Company issued 17,918,606 shares at a fair value of $16,127.

k)   On April 23, 2012, the Company entered into a consulting agreement for legal services pursuant to which the Company issued 10,000,000 shares of common stock with a fair value of $8,000.  The Company will register the shares on an S-8 registration statement.

l)   On May 1, 2012, the Company entered into an administrative and support services agreement for a term of one year.  In consideration for such services, the Company agreed to issue 60,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  The 60,000,000 shares will be issued pro rata on a monthly basis with the pro rata shares being due at the end of each month. As of September 24, 2012, the Company has fully issued the 60,000,000 shares of common stock at a total fair value of $36,500.

m)   On May 1, 2012, the Company entered into an engineering services agreement for a term of four months.  In consideration for such services, the Company agreed to pay the consultant at a rate of $16,250 for each month for which services are provided.  The Company will also issue 65,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  As of September 24, 2012, the Company has fully issued the 65,000,000 shares of common stock at a total fair value of $40,625.

F-20

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

n)   On May 2, 2012, the Company finalized, executed and delivered a Reserve Equity Financing Agreement (the “Financing Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”) with AGS Capital Group, LLC ("AGS").

Pursuant to the terms of the Financing Agreement, for a period of 48 months commencing on the date of effectiveness of the registration statement, AGS shall purchase up to $10,000,000 (the “Commitment Amount”) of the Company’s common stock. The purchase price of the shares under the Financing Agreement is equal to ninety percent (90%) of the lowest closing bid price of the Company’s common stock during the 20 consecutive trading days after the Company delivers to AGS a notice in writing requiring AGS to purchase shares, as further provided for pursuant to the terms of the Financing Agreement. The Company cannot issue any such notices to AGS until a registration statement covering these purchases is declared effective by the Securities and Exchange Commission (the “SEC’) and the number of shares sold in each advance shall not exceed 250% of the average daily trading volume. The Company is prohibited from taking certain actions, including issuing shares or convertible securities where the purchase price is determined using any floating discount.  The Company is required to pay a fee of $250,000 in case of termination of the agreement.

As compensation for AGS's structuring, legal, administrative and due diligence costs associated with the Financing Agreement, the Company issued 33,333,333 restricted common shares of the Company.  As further consideration for AGS entering into the Financing Agreement, the Company also issued 444,444,444 restricted common shares to AGS, which equals to two percent (2%) of the Commitment Amount.

In connection with the execution of the Financing Agreement, the Company entered into the Registration Rights Agreement with AGS. Pursuant to the terms of the Registration Rights Agreement, the Company is obligated to file a registration statement with the SEC to cover the shares issued and to be issued to AGS pursuant to the Financing Agreement.

On July 17, 2012, the Company terminated the financing agreement and registration rights agreement.  As of September 30, 2012, the Company has accrued the termination fee of $250,000 pursuant to the terms of the agreement.  The termination fee and the fair value of the 444,444,444 shares of $200,000 are reported as a loss on contract cancellation in the consolidated statements of expenses.

o)   On May 8, 2012, the Company entering into a business consulting services agreement with a consultant whereby the Company agreed to issue 77,000,000 shares of common stock, which will be registered under a Form S-8 Registration agreement.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter.  On August 27, 2012, the Company issued 77,000,000 shares of common stock at a fair value of $38,500.

p)   On May 16, 2012, the Company entered into a China logistics consulting agreement for a term of ten months.  In consideration for such services, the Company issued 55,000,000 restricted shares of common stock at a fair value of $66,000.

q)   On May 17, 2012, the Company entered into a communications consulting agreement for a term of three months.  In consideration for such services, the Company issued 100,000 restricted shares of common stock at a fair value of $100.

r)   On May 18, 2012, the Company entered into an administrative services agreement for a term of one year.  In consideration for such services, the Company agreed to issue 60,00,000 restricted shares of common stock, payable as follows: i) 30,000,000 shares upon execution of the agreement and; ii) 30,000,000 shares on or before November 18, 2012. On May 18, 2012, the Company issued 30,000,000 restricted shares of common stock at a fair value of $21,000.

s)   On June 1, 2012, the Company entered into an advisory agreement for a term of six months. In consideration for such services, the Company agreed to issue 80,000,000 restricted shares of common stock of the Company, payable as follows: i) 30,000,000 shares upon execution of the agreement and; ii) 50,000,000 shares on or before September 15, 2012.  On June 1, 2012, the Company issued 30,000,000 restricted shares of common stock at a fair value of $24,000.  On September 15, 2012, the Company recognized $20,000 of expense for the 50,000,000 shares that vested.

t)   On June 1, 2012, the Company entered into a consulting agreement for a term of seven months.  In consideration for such services, the Company issued 5,000,000 restricted shares of common stock of the Company at a fair value of $4,000.

u)   On June 1, 2012, the Company entered into a chief technology officer agreement for a term of six months.  In consideration for such services, the Company issued 5,000,000 restricted shares of common stock of the Company at a fair value of $4,000.

F-21

Medical Care Technologies Inc.

(A Development Stage Company)

Notes to the Consolidated Financial Statements

(Unaudited)

v)   On June 15, 2012, the Company entered into a medical director agreement for a term of six months.  In consideration for such services, the Company agreed to issue 30,000,000 restricted shares of common stock, payable as follows: i) 15,000,000 shares upon execution of the agreement; and ii) 15,000,000 shares on August 15, 2012. On June 15, 2012, the Company issued 15,000,000 shares of common stock at a fair value of $15,000.  On August 20, 2012, the Company issued 15,000,000 shares of common stock at a fair value of $7,500.

w)   On July 17, 2012, the Company entered into a business consulting services agreement with a consultant whereby the Company issued 70,000,000 restricted shares of common stock.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter.   This agreement is for replacement of the agreement as described in Note 11(g).  On July 18, 2012, the Company issued 70,000,000 shares of common stock at a fair value of $49,000.

x)   On July 31, 2012, the Company entered into a marketing consulting agreement for a term of four months.  In consideration for such services, the Company agreed to issue 198,000,000 shares of common stock upon the execution of the agreement.  Pursuant to the agreement, the Company recognized $99,000 of expense for the 198,000,000 shares of common stock upon the execution of the agreement.

12.   Subsequent Events

a)   On October 8, 2012, the Company entered into an Executive Officer Employment Agreement and appointed a new Chief Operating Officer (the “COO”).  Pursuant to the agreement, on October 9, 2012, the Company issued 80,000,000 shares of common stock to the COO.  The agreement is for 6 months, renewal upon mutual agreement.

b)   Subsequent to September 30, 2012, the Company issued 160,000,000 shares of common stock upon the conversion of $12,800 of convertible note as described in Note 5(h).

F-22

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

This quarterly report 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, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions. All forward-looking statements speak only as of the date on which they are made.  We undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they are made.

Overview

We are a children’s healthcare service provider headquartered in Beijing, China and engaged principally in opening and operating children’s integrated healthcare and wellness centers and; selling and distributing pharmaceutical and nutraceutical products. Through joint ventures or Chinese subsidiaries, we plan to develop a network of children’s health facilities in the larger urban areas throughout China. Our planned healthcare services will be geared towards the advancing economic middle-class families. Specializing in the care of children between the ages of 3-16, our business objectives are to enhance the overall well-being of the family and community and to expand our pediatric services to include preventative health and wellness education.  Through our children’s health facilities, we plan to also distribute a diverse range of industry-leading pharmaceutical and nutraceutical product lines.  Our main mission is simple – to become a healthcare service provider leader in children’s health.  We have not yet generated or realized any revenues from our business activities.

Private Pediatric Health and Wellness Centers

Our aim is to advance health care in China.  We plan to seize the opportunities available for businesses that provide medical type services in China by opening and operating private pediatric health centers and mainly locating them in economically developing and/ developed provinces and urban areas. We continue to progress discussions with Chinese health officials to initiate our pediatric health care objectives.

In 2011, we signed a Joint Venture Master Agreement with Ocean Wise International Industrial Limited (“OWII”), a private Hong Kong investment holding company, to partner in China’s rapidly expanding pediatric healthcare segment. The 65-35 joint venture partnership has established ReachOut Holdings Limited (“RHL”), incorporated in Hong Kong, in order to open and operate pediatric health centers throughout China. Under the ten- year JV Master Agreement, we own a 65% controlling interest in RHL, contributing medical software technology, technical expertise, research and development and financial resources. In turn, OWII, with its 35% interest, provides the funding necessary to establish operations, and an executive management team to negotiate lease operating agreements, license approval applications with appropriate Chinese government agencies and, the operation and management of pediatric health and wellness centers.

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In summer 2011, we received approval for our final licenses from the City of Dongguan, Guangdong Province Department of Urban Planning and Department of Health to open and operate our first flagship children’s health and wellness center.  Our first children’s health center will be named Teddyberry™ and Company, and will be a 4,000+ square foot facility in Dongguan, located within a metropolitan area of 10 million people with an estimated 1 million children. Our flagship facility is a new private healthcare model in China based on the concept of primary spa-like facilities in each geographic area.  We currently anticipate that it will offer a full range of inpatient services to Chinese communities and expatriates' families.  We believe that we are the first to introduce such a model to the country which we believe places us strategically at the forefront of a highly attractive private healthcare services market.

In May 2012, a growth opportunity was presented for a new location in a major Tier-1 city. We were officially invited to apply for a license to open a health center in Shenzhen. We applied and quickly received approval from the Chinese Ministry of Health. Shenzhen is considered to be China’s first and most successful “Special Economic Zone”, and is regarded as one of the fastest growing cities in the world with a population of over 10 million people.  Shenzhen has grown beyond the borders of the original Zone and now encompasses an area of 790 sq. miles, larger than New York, London or Los Angeles!  With a booming economy, Shenzhen has developed very rapidly into a vibrant commercial powerhouse fueled by the ambitions of its upwardly mobile, educated, entrepreneurial inhabitants. For many Chinese, Shenzhen represents China’s 21st century future (Business in Asia, March, 2012). Once license approval was granted, our consultants in Shenzhen moved to quickly select an eminent site for the health center, close to the 2011 Universiade location, in an area of this thriving city which teems with young, urban professional families. Zoning approvals from the city government have also been granted and all required licenses, bonds and zoning fees have been paid.

           Currently, we hope to add subsequent locations in other economically developing and developed Tier-1 major cities such as Beijing and Shanghai and, Tier-2 cities such as Guangzhou and Tianjin. In China, we believe that opportunities abound in Tier-2 cities because production is cheaper, real estate has more potential for appreciation in these areas, and overall economic growth rates are climbing more steeply than in the Tier-1 cities.

We believe that the Chinese government recognizes that these Tier-2 cities are quickly becoming the economic rungs on the ladder of China's growth and continues to promote development of Tier-2 cities through investment, targeted tax incentives and the establishment of economic and technological development zones.

We have been in discussions with the regulatory authorities to expand into Shanghai, Beijing, Kunshan, Zuhai, and Heilongjiang and it is our plan to open children’s health clinics in these areas.

Pharmaceutical and Nutraceutical Products

We plan to carry only State Food and Drug Administration (“SFDA”) approved products. It is our strategy to source and sell high-quality pharmaceutical and nutraceutical products and a wide variety of other merchandise, including over-the-counter medicines, herbal products, personal care products, family care products in our planned pediatric health and wellness centers, through our website, retail pharmacies and through established sales and distribution channels in China. We also plan to offer private label products, which we believe will distinguish us from our key competitors such as Baby’s Own, Enfamil, IntraKID and Source Naturals.  Further, our target customers in this segment are retail pharmacies, pharmaceutical companies, hospitals, physicians’ office practices, consumers; and industrial and food microbiology laboratories.

Our anticipated revenue streams over the next 3 years are expected to come from the i) pediatric services market and ii) pharmaceutical and nutraceutical supply market. We plan to develop in each of our business segments new products and services that provide increased benefits to patients, healthcare workers and researchers. Our ability to obtain long-term growth will depend on a number of factors, including our ability to expand our business (including geographical expansion), source new products with higher gross profit margins, and obtain operating efficiency and organizational effectiveness.

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The accompanying financial statements have been prepared on a going concern basis, which implies we will continue to realize our assets and discharge our liabilities in the normal course of business. We have not generated any revenues and we do not anticipate to generate any revenues until i) we open and begin serving patients in our children’s health and wellness centers and; ii) source, market and sell pharmaceutical and nutraceutical products. Accordingly, we must raise enough cash from private investors, through equity financings or by developing strategic alliances with other leading, world class players in the health industry. Our sources for cash are funds raised through loans and convertible promissory notes from friends, family, private investment firms and our joint venture partner, Ocean Wise International Industrial Limited. Our success or failure will be determined by opening a number of pediatric health centers throughout China and running them successfully.

Results of Operations

Comparison of Nine Months Ended September 30, 2012 and 2011

Revenues

During the nine months ended September 30, 2012, we did not generate any revenues.

Expenses

General and administrative expenses for the nine months ended September 30, 2012 was $786,872, as compared to general and administrative expenses for the nine months ended September 30, 2011 of $727,226.  These expenses are mainly comprised of audit and accounting of $64,688 (2011 - $55,350), transfer agent and filing fees of $31,486 (2011 - $21,500), legal expense of $23,592 (2011 - $17,263), financial advisory and consulting of $586,173 (2011 - $387,535), promotions and investor relations of $36,731 (2011 - $184,125) and travel of $12,371 (2011 - $23,708).

Management fees for the nine months ended September 30, 2012 was $272,193 as compared to management fees for the nine months ended September 30, 2011 of $305,783.

Other expenses for the nine months ended September 30, 2012 totalled $1,367,545 as compared to $414,681 for the nine months ended September 30, 2011. The increase was mainly due to interest expense of $367,063 (2011 - $323,152), loss on derivative of $531,544 (2011 - $78,210) – both expenses were as a result of more convertible note borrowings in addition to debt conversions into shares of common stock of the Company and, lastly, loss on contract cancellation of $450,000 (2011 - $nil) as a result of the termination of the financing agreement and registration rights agreement with AGS.

Net loss

As a result of the foregoing for the nine months ended September 30, 2012, net loss increased to a loss of $2,426,610, compared to a net loss of $1,466,092 during the nine months ended September 30, 2011. Net loss from inception (February 27, 2007) through September 30, 2012 was $6,777,835.

Liquidity and Capital Resources

Overview

As of September 30, 2012, we had cash on hand of $742.  We believe that cash on hand, as of the date of this report, will not be sufficient to fund operations, working capital needs and other short-term cash requirements.

We entered into a security sale agreement, dated July 17, 2012 with a private accredited investor, for the purchase of $15,000 of our common stock for a purchase price of $0.00035 per share. The agreement provides, among other things, that we will register the shares on a Form S-1 registration statement within 120 days and use our best efforts to have such registration statement declared effective as soon as practicable. The investor also has a right, for 120 days, to purchase an additional 42,857,142 shares of our common stock at $0.00035 per share.

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On July 19, 2012, we issued a convertible promissory note to Nicholas J. Morano, LLC, a Texas limited liability company (“Morano”), in the principal amount of $29,500. The Note matures on January 21, 2013, and accrues interest at 10% per annum. The Note contains default events which, if triggered, will result in a default interest rate of 12% per annum The Note may be prepaid in whole or in part. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Morano at any time after 180 days from issuance of the Note at a conversion price equal to a 35% discount to the average of the lowest three closing bid prices of the common stock during the 90 trading day period prior to conversion. 

On July 23, 2012, we provided formal notice to terminate the $10 million reserve equity financing agreement entered into on April 27, 2012 with AGS Capital Group, LLC (“AGS”). AGS did not render any services to us or purchase any shares of our common stock pursuant to the terms in the financing agreement.  Our cancellation notice provided for the return of 444,444,444 shares which were issued pursuant to the financing agreement. The termination provision in the financing agreement provides that if we terminate the agreement, we shall pay a termination fee of $250,000 within three days of such notice. Notwithstanding such provision, we are currently in negotiation with AGS and hope to resolve this matter amicably. Should there not be a favorable outcome to the negotiations, there may be potential liability or litigation with respect to the termination of the financing.  We have pursued other and more favourable financing for our capital needs.

On August 13, 2012, we entered into a convertible promissory note agreement in the principal amount of $35,000. We incurred debt financing costs of $2,000, which will be amortized over the term of the Note. The Note, which is due on February 13, 2013, bears interest at the rate of 10% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 12% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at any time after 180 days from August 13, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 30 trading day period prior to conversion.

To date, our limited cash resources have been used to pay for our office and administrative expenses in Beijing, our license application fees in both Dongguan and Shenzhen, China, and legal, accounting and professional services required to prepare and file our reports with the U.S. Securities and Exchange Commission (“SEC”).  As of record date, we have no cash and are currently sourcing additional financings on favorable terms.

At September 30, 2012, we had cash and cash equivalents of $742, and total liabilities of $1,381,122.  At December 31, 2011, cash and cash equivalents were $3,380 and total liabilities were $652,409.

           Our outstanding liabilities at September 30, 2012 consisted of $443,496 in accounts payable and accrued liabilities, $73,823 in convertible notes, $95,398 in derivative liabilities from convertible notes, $709,222 in related party debts and, $59,183 in loans payable.

From February 27, 2007 (inception date) to September 30, 2012, we incurred a net loss of $6,757,478 and had a working capital deficiency of $1,156,376.  

The following table summarizes our net cash used in operating activities, net cash used in investing activities and net cash provided by (used in) financing activities for the periods presented:

	Nine Months Ended September  30,
	2012			2011
Net cash used in operating activities	$	(197,655	)	$	(269,807	)
Net cash used in investing activities		(153,808	)		(257,695	)
Cash provided by financing activities		348,825			553,809

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Operating Activities

For the nine months ended September 30, 2012, cash used in operating activities was $197,655, compared to cash used in operating activities of $269,807 in the same period of 2011. Before changes in operating assets and liabilities, cash was used by operations primarily through stock-based compensation of $755,487 (2011 – 731,121), accretion on discount of convertible debt of $$292,691 (2011 - $301,387), loss on derivative of $531,544 (2011 - $78,210) and, loss on contract cancellation of $450,000 (2011 - $nil).

Net changes in operating assets and liabilities provided $140,216 for the nine months of September 30, 2012 compared to $44,892 in the same period in 2011.  Corporate activity during the nine months ended September 30, 2012 resulted in a $124,289 increase in accrued liabilities and accounts payable compared to $58,390 increase over the corresponding period in 2011.

Investing Activities

Cash used in investing activities for the nine months ended September 30, 2012 was $153,808 (2011 - $257,695) and was used for the purchase of the Shenzhen health centre license.

Financing Activities

For the nine months ended September 30, 2012, net cash provided by financing activities was $348,825 (2011 - $553,809) for the same period of 2011. There were higher borrowings in 2011 by the Company via convertible notes.

Limited Capital

We entered into a security sale agreement, dated July 17, 2012 with a private accredited investor, for the purchase of $15,000 of our common stock for a purchase price of $0.00035 per share. The agreement provides, among other things, that we will register the shares on a Form S-1 registration statement within 120 days and use our best efforts to have such registration statement declared effective as soon as practicable. The investor also has a right, for 120 days, to purchase an additional 42,857,142 shares of our common stock at $0.00035 per share.

On July 19, 2012, we issued a convertible promissory note (the “Note”) to Nicholas J. Morano, LLC, a Texas limited liability company (“Morano”), in the principal amount of $29,500. The Note matures on January 21, 2013, and accrues interest at 10% per annum. The Note contains default events which, if triggered, will result in a default interest rate of 12% per annum The Note may be prepaid in whole or in part. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Morano at any time after 180 days from issuance of the Note at a conversion price equal to a 35% discount to the average of the lowest three closing bid prices of the common stock during the 90 trading day period prior to conversion. 

On July 23, 2012, we provided formal notice to terminate the $10 million reserve equity financing agreement entered into on April 27, 2012 with AGS Capital Group, LLC (“AGS”). AGS did not render any services to us or purchase any shares of our common stock pursuant to the terms in the financing agreement.  Our cancellation notice provided for the return of 444,444,444 shares which were issued pursuant to the financing agreement. The termination provision in the financing agreement provides that if we terminate the agreement, we shall pay a termination fee of $250,000 within three days of such notice. Notwithstanding such provision, we are currently in negotiation with AGS and hope to resolve this matter amicably. Should there not be a favorable outcome to the negotiations, there may be potential liability or litigation with respect to the termination of the financing.  We have pursued other and more favourable financing for our capital needs.

On August 13, 2012, we entered into a convertible promissory note agreement in the principal amount of $35,000. We incurred debt financing costs of $2,000, which will be amortized over the term of the Note. The Note, which is due on February 13, 2013, bears interest at the rate of 10% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 12% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at any time after 180 days from August 13, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 30 trading day period prior to conversion.

We have used these funds to pay for our office and administrative expenses in Beijing, our license application fees in both Dongguan and Shenzhen, China, and legal, accounting and professional services required to prepare and file our reports with the U.S. Securities and Exchange Commission (“SEC”). As of record date, we have no cash and we are currently sourcing additional financings on favorable terms.

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Other than as described above, we have no commitments for any additional financing.  Although we have entered into verbal discussions with both current and new potential investors, there can be no assurance that we will be able to raise adequate financing to sustain our corporate and operational needs.  Our failure to raise capital for the short-term would significantly hinder our ability to operate and continue with our business operations.

Our ability to achieve profitable operations depends on developing revenue through the operation of private pediatric health centers throughout China. Our expectations are that we will not begin to show revenues from the operation of pediatric health centers until opened and operating.

In the near future, we believe that cash expected to be generated from operations and amounts estimated to be available through new financings and from other sources of debt will be sufficient to fund operations, working capital needs, capital expenditure requirements, and financing obligations. We expect to fund future cash acquisitions primarily with cash flow from operations and borrowings, but may also issue additional equity either directly or in connection with potential acquisitions.

However, until we can generate revenues from our operations, we plan to pursue additional financing, mainly for the short-term.  There can be no assurance that financings for operations and working capital needs will be available.

Management believes the ability of the Company to continue as a going concern, earn revenues and achieve profitability is highly dependent on a number of factors including our ability to obtain sufficient financing to continue our operations and to complete construction of our children’s health and wellness center in Shenzhen, China, in addition to being able to continue our growth strategy and expand our health and wellness centers throughout China.

We have not generated revenues since inception and have never paid any dividends and are unlikely to pay dividends in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from our shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to open and operate our planned children’s health and wellness centers to attain profitable operations.

As at September 30, 2012, we have a working capital deficit of $1,156,376 and have accumulated losses of $6,757,478 since inception. These factors raise substantial doubt regarding our ability to continue as a going concern.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.  CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that these disclosure controls and procedures are not effective. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on our assessment, we believe that, as of September 30, 2012, our internal control over financial reporting was not effective based on those criteria due to a lack of segregation of duties, a lack of qualified accounting staff and an overreliance on consultants in our accounting and financial reporting process. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Notwithstanding, at this time management has decided that considering the abilities of the persons involved and the control procedures now in place, the risks associated with such lack of segregation are low and the potential benefits of adding employees to further segregate duties do not justify the substantial expenses associated with such increases. Management will periodically re-evaluate this situation.

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Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

  PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A.  RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

For the nine months ended September 30, 2012:

a)   On July 17, 2012, the Company entered into a business consulting services agreement with a consultant whereby the Company agreed to issue 70,000,000 restricted shares of common stock.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter. On July 18, 2012, the Company issued 70,000,000 restricted shares of common stock.

b)   On July 17, 2012, the Company accepted stock subscriptions for 42,857,142 shares at $0.00035 per share for proceeds of $15,000.  On July 26, 2012, the Company issued the 42,857,142 shares.  The Company also issued an option to purchase an additional 42,857,142 shares with an exercise price of $0.00035 per share to the investor.  The option expires on November 23, 2012.

c)   On June 1, 2012, the Company entered into a services agreement for a term of seven months with a consultant whereby the Company agreed to issue 5,000,000 restricted shares of common stock. On July 18, 2012, the Company issued 5,000,000 restricted shares of common stock.

d)   On June 15, 2012, the Company entered into a medical director agreement for a term of six months.  In consideration for such services, the Company agreed to issue 30,000,000 restricted shares of common stock, payable as follows: i) 15,000,000 shares upon execution of the agreement; and ii) 15,000,000 shares on August 15, 2012. On June 15, 2012, the Company issued 15,000,000 restricted shares of common stock and on August 20, 2012, the Company issued the remaining 15,000,000 restricted shares of common stock.

e)   Pursuant to a May 8, 2012 business consulting services agreement and on August 27, 2012, the Company issued 77,000,000 restricted shares of common stock to the consultant.

f)   On May 29, 2012, the Company secured a $130,000 loan payable with two Convertible Promissory Notes for $65,000 each.  Pursuant to the convertible note agreements, the loans are convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The notes bear interest at 10% per year and the principal amount and any interest thereon are due on November 29, 2014. During the quarter ended September 30, 2012, the Company issued 580,000,000 shares of common stock upon the conversion of the principal amounts of $71,050.

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Subsequent to the nine months ended September 30, 2012:

a)   On October 8, 2012, the Company entered into an Executive Officer Employment Agreement and appointed a new Chief Operating Officer.  Pursuant to the agreement, on October 9, 2012, the Company issued 80,000,000 shares of restricted common stock.

b)   On October 25, 2012, the Company issued 160,000,000 shares of common stock upon the conversion of $12,800 of one of the May 29, 2012 convertible notes.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.  MINE SAFETY DISCLOSURES.

None.

ITEM 5.  OTHER INFORMATION.

None.

ITEM 6.  EXHIBITS.

The following documents are included herein:

Exhibit No.	Document Description
31.1	Certification of Principal Executive Officer pursuant to 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended.
31.2	Certification of Principal Financial Officer pursuant to 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer).
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Financial Officer).

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MEDICAL CARE TECHNOLOGIES INC.
Dated:  November 19, 2012	BY:	/s/ Ning C. Wu
		Ning C. Wu
		Chief Executive Officer and Director (Principal Executive Officer)

Dated:  November 19, 2012	BY:	/s/ Hui Liu
		Hui Liu
		Treasurer and Director (Principal Financial Officer, Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

Certification

I, Ning C. Wu, certify that:

1)           I have reviewed this Quarterly Report on Form 10-Q of Medical Care Technologies, Inc.;

2)           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)           The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:

  (a)              Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

  (b)              Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Accounting Principles Generally Accepted in the United States of America;

  (c)              Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and

  (d)              Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5)           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 19, 2012

/s/ Ning C. Wu

Name: Ning C.Wu

Title: Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification

I, Hui Liu, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Medical Technologies, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:

   (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Accounting Principles Generally Accepted in the United States of America;

   (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and

   (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

   (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

   (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 19, 2012

/s/ Hui Liu

Name: Hiu Liu

Title: Treasurer

(Principal Financial and Accounting Officer )

EX-32.1

Exhibit 32.1

Certification

I, Ning C. Wu, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Medical Technologies, Inc. (the “Company”) for the quarter ended September 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 19, 2012

/s/ Ning C. Wu

Name: Ning C. Wu

Title: Chief Executive Officer

(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification

I, Hui Liu, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Medical Technologies, Inc. (the “Company”) for the quarter ended September 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 19, 2012

/s/ Hui Liu

Name: Hui Liu

Title: Treasurer

(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Stock Option (Details 1) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Non-vested options
Beginning Balance, Number of Options	633,335	1,350,000
Granted, Number of Options		350,000	1,350,000
Vested, Number of Options	(43,490,477)	(1,066,665)
Ending Balance, Number of Options		633,335	1,350,000
Beginning Balance, Weighted Average Grant Date Fair Value	$ 0.008	$ 0.011
Granted, Weighted Average Grant Date Fair Value		$ 0.018
Vested, Weighted Average Grant Date Fair Value		$ 0.015
Ending Balance, Weighted Average Grant Date Fair Value		$ 0.008	$ 0.011

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Commitments (Details 2) (Financing Agreement [Member], USD $)	9 Months Ended
	Sep. 30, 2012
Commitment (Textual)
Restricted shares of common stock issued	33,333,333
Service agreement period	48 months
Description of purchase price of the shares	The purchase price of the shares under the Financing Agreement is equal to ninety percent (90%) of the lowest closing bid price of the Company's common stock during the 20 consecutive trading days.
Termination fee	$ 250,000
Maximum percentage shares sold of average daily trading volume	250.00%
AGS Capital Group, LLC [Member]
Commitment (Textual)
Restricted shares of common stock issued	444,444,444
Percentage of restricted common shares equals to commitment amount	2.00%
Maximum amount of shares purchase under Commitment	10,000,000
Registration Rights Agreement [Member]
Commitment (Textual)
Restricted stock issued, shares reported as loss on termination of contract	444,444,444
Restricted stock, fair value reported as loss on termination of contract	200,000
Accrued Termination Fee	$ 250,000

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Convertible Notes Payable (Details 1) (USD $)	1 Months Ended				1 Months Ended	9 Months Ended		1 Months Ended		9 Months Ended		1 Months Ended	9 Months Ended		1 Months Ended			9 Months Ended
	Dec. 31, 2011	Nov. 30, 2011	Dec. 12, 2011	Nov. 28, 2011	Jul. 31, 2011 Convertible Promissory Note Agreement Three [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Three [Member]	Jul. 20, 2011 Convertible Promissory Note Agreement Three [Member]	Jan. 31, 2012 Convertible Promissory Note Agreement Three [Member] Modified Convertible Notes [Member]	Jan. 16, 2012 Convertible Promissory Note Agreement Three [Member] Modified Convertible Notes [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Three [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Three [Member] Maximum [Member]	Sep. 30, 2011 Convertible Promissory Note Agreement Four [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Four [Member]	Sep. 09, 2011 Convertible Promissory Note Agreement Four [Member]	Mar. 31, 2012 Convertible Promissory Note Agreement Four [Member] Modified Convertible Notes [Member]	Jan. 31, 2012 Convertible Promissory Note Agreement Four [Member] Modified Convertible Notes [Member]	Mar. 07, 2012 Convertible Promissory Note Agreement Four [Member] Modified Convertible Notes [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Four [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Four [Member] Maximum [Member]
Convertible Notes Payable (Textual)
Convertible Promissory Note, principal amount							$ 32,500							$ 45,000
Net Proceeds from notes					30,000							42,500
Debt financing cost					2,500							2,500
Convertible notes, maturity date					Apr. 23, 2012							Jun. 12, 2012
Interest rate on convertible notes					8.00%							8.00%
Interest rate on defualt at maturity date					22.00%							22.00%
Convertible notes conversion period into common stock after agreement date					180 days							180 days
Convertible notes payable, conversion price, description					At any time after 180 days from July 20, 2011 at a conversion price equal to a 39.9% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion.			Lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.				After 180 days from September 9, 2011 at a conversion price equal to a 45% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion.				Lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.
Variable conversion price discount for modified conversion condition								65.00%				45.00%				65.00%
Fixed conversion price discount for modified conversion condition								$ 0.0005								$ 0.0005
Principal amount converted to restricted common stock	10,000					32,500							45,000
Restricted shares of common stock upon conversion of principal amount and accrued interest	8,333,333					90,588,585							170,376,223
Accrued interest converted to restricted common stock						1,300							1,800
Fair value of the derivative liability			57,269	27,056					115,621								172,698
Reduced carrying value of convertible loan				5,444					0								0
Recorded accretion	2,037					7,541							13,623
Quoted market price	$ 0.003	$ 0.0029						$ 0.0021		$ 0.0009	$ 0.0017				$ 0.0013			$ 0.0005	$ 0.0013
Conversion price	$ 0.0012	$ 0.002						$ 0.0005		$ 0.0003	$ 0.0005				$ 0.0003			$ 0.0002	$ 0.0008
Expected volatility	271.00%	241.00%						350.00%		299.00%	360.00%				368.00%			218.00%	511.00%
Expected dividends		0.00%						0.00%
Expected term	2 months 23 days	3 months 7 days						3 months 7 days		1 month 6 days	2 months 21 days				3 months 7 days			29 days	2 months 19 days
Risk-free interest rate	0.01%	0.03%						0.03%		0.05%	0.10%				0.08%			0.05%	0.09%
Gain (loss) on change in fair value of derivative liability						70,248		83,121					75,557		127,698
Reclassified amount to additional paid in capital upon conversion			17,621			102,748							120,559
Unamortized discount recorded as interest expense						$ 24,959							$ 29,509

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Instruments [Abstract]

Summary of change in derivative liabilities

Balance at December 31, 2011	$	155,958
Addition of new derivative liability		285,324
Settlement of derivative liability through conversion of debt		(877,428	)
Derivative loss included in other income (expense)		531,544
Balance at September 30, 2012	$	95,398

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Derivative Instruments (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Summary of change in derivative liabilities
Balance at December 31, 2011	$ 155,958
Addition of new derivative liability	285,324
Settlement of derivative liability through conversion of debt	(877,428)
Derivative loss included in other income (expense)	531,544
Balance at September 30, 2012	$ 95,398

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Common and Preferred Stock (Details) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended	12 Months Ended				3 Months Ended
	Jul. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2012	Dec. 31, 2009	Jul. 26, 2012	Mar. 26, 2012	Dec. 31, 2011	Sep. 30, 2012 Convertible notes [Member]	Jun. 30, 2012 Convertible notes [Member]	Mar. 31, 2012 Convertible notes [Member]	Sep. 30, 2012 Consulting services [Member]	Jun. 30, 2012 Consulting services [Member]	Jun. 30, 2012 Management services [Member]	Sep. 30, 2012 Administrative services [Member]	Jun. 30, 2012 Administrative services [Member]	Sep. 30, 2012 Engineering services [Member]	Jun. 30, 2012 Engineering services [Member]	Jun. 30, 2012 Finders fees agreement [Member]	Jun. 30, 2012 Commitment fees [Member]	Mar. 31, 2012 Structuring and due diligence fee [Member]
Common and preferred stock (Textual)
Common stock shares issued for services, Shares												470,000,000	168,018,606	200,000,000	95,000,000	55,000,000	32,500,000	32,500,000	4,688,889	444,444,444	33,333,333
Common stock shares issued for services, Amount												$ 244,000	$ 160,227	$ 160,000	$ 54,000	$ 49,500	$ 14,625	$ 26,000	$ 4,359	$ 200,000	$ 30,000
Issuance of common stock upon conversion of convertible debt, Shares			364,247,689						768,253,968	4,688,889	174,153,931
Common stock, Shares authorized prior to increase							500,000,000
Common stock par value prior to increase							$ 0.00001
Common Stock, shares authorized		8,000,000,000		8,000,000,000			8,000,000,000	8,000,000,000
Common Stock, par value		$ 0.00001		$ 0.00001			$ 0.00001	$ 0.00001
Reverse stock split description				Granted discretionary authority to the Company's Board of Directors to implement a reverse stock split of the Company's common stock, on a basis of up to five hundred pre-consolidation shares within twelve months of the date of the Special Meeting.
Issuance of common stock for cash, Shares	42,857,142
Share price						$ 0.00035
Issuance of common stock for cash, Amount	15,000			15,000	15,000
Stock option granted to purchase additional shares of common stock	42,857,142
Options, exercise price	$ 0.00035
Option, Expiration date	Nov. 23, 2012
Common stock granted pursuant to consulting agreement		90,000,000
Vesting period of award		9 months
Stock-based compensation		$ 41,000
Number of shares vested for which company recognized share based compensation expenses		30,000,000

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Subsequent Events (Details) (USD $)	9 Months Ended			1 Months Ended	9 Months Ended
	Sep. 30, 2012	Oct. 08, 2012	Dec. 31, 2011	Apr. 30, 2012 Chief Executive Officer [Member]	Sep. 30, 2012 Chief Operating Officer [Member]	Oct. 08, 2012 Chief Operating Officer [Member]
Subsequent Events (Textual)
Common Stock Shares, Issued	3,243,896,955	80,000,000	328,898,953			80,000,000
Term of agreement	6 months			1 year	6 months
Common stock shares issued upon conversion of convertible note, shares	160,000,000
Common stock ssares issued upon conversion of convertible note, value	$ 12,800

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Property and Equipment

9 Months Ended

Sep. 30, 2012

Property and Equipment [Abstract]

Property and Equipment

2.   Property and Equipment

	Cost $		Accumulated Depreciation $		September 30, 2012 Net Carrying Value $		December 31, 2011 Net Carrying Value $
Computer hardware		30,000		30,000		–		–
Equipment		20,000		20,000		–		–
Leasehold improvements		31,002		–		31,002		6,200
		81,002		50,000		31,002		6,200

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Financial Instruments and Fair Value Measurements (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Liabilities:
Derivative Liabilities	$ 95,398	$ 155,958
Fair Value, Measurements, Recurring [Member]
Liabilities:
Derivative Liabilities	95,398	155,958
Total liabilities measured at fair value	95,398	155,958
Fair Value, Measurements, Recurring [Member] | Quoted Price in Active Markets for Identical Instruments (Level 1) [Member]
Liabilities:
Derivative Liabilities
Total liabilities measured at fair value
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Liabilities:
Derivative Liabilities
Total liabilities measured at fair value
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Liabilities:
Derivative Liabilities	95,398
Total liabilities measured at fair value	$ 95,398

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Related Party Transaction (Details) (USD $)	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended			1 Months Ended				1 Months Ended			9 Months Ended						9 Months Ended	1 Months Ended	9 Months Ended					1 Months Ended		9 Months Ended
	Jul. 31, 2012	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Jun. 12, 2012 Parent Company [Member]	Jun. 30, 2012 Ocean Wise International Industrial Limited [Member]	May 31, 2012 Ocean Wise International Industrial Limited [Member]	Sep. 30, 2012 Ocean Wise International Industrial Limited [Member]	Jun. 12, 2012 Ocean Wise International Industrial Limited [Member]	Apr. 30, 2012 President [Member]	Aug. 31, 2011 President [Member]	Feb. 28, 2011 President [Member]	Sep. 30, 2012 President [Member]	Aug. 01, 2012 President [Member]	Apr. 23, 2012 President [Member]	Jan. 02, 2012 President [Member]	Aug. 02, 2011 President [Member]	Feb. 01, 2011 President [Member]	Sep. 30, 2012 Chief Operating Officer [Member]	Dec. 31, 2010 Director [Member]	Sep. 30, 2012 Director [Member]	Jun. 28, 2012 Director [Member]	Dec. 28, 2011 Director [Member]	Jun. 28, 2011 Director [Member]	Dec. 30, 2010 Director [Member]	Apr. 30, 2012 Chief Executive Officer [Member]	Dec. 31, 2010 Chief Executive Officer [Member]	Sep. 30, 2012 Chief Executive Officer [Member]	Jun. 28, 2012 Chief Executive Officer [Member]	Apr. 23, 2012 Chief Executive Officer [Member]	Dec. 28, 2011 Chief Executive Officer [Member]	Jun. 28, 2011 Chief Executive Officer [Member]	Dec. 30, 2010 Chief Executive Officer [Member]
Related Party Transactions (Textual)
Term of agreement			6 months										36 months							6 months							1 year
Stock-based compensation		$ 41,000																									$ 120,000
Restricted shares of common stock issued gross											80,000,000		2,000,000														120,000,000
Fair value of restricted shares of common stock																64,000			28,000												96,000
Share option issued																			100,000							250,000								500,000
Options, exercise price	$ 0.00035												$ 0.25								$ 0.25							$ 0.25
Stock options exercisable																			100,000							250,000								500,000
Stock options vested															25,000		25,000	50,000					75,001	75,001	99,998					250,000		125,000	125,000
Assumption of weighted average expected life				9 years 5 months 19 days	10 years								10 years								10 years							10 years
Risk free interest rate				2.37%	3.38%								3.48%								3.38%							3.38%
Expected volatility				214.00%	251.00%								250.00%								251.00%							251.00%
Dividend yield				0.00%	0.00%								0.00%								0.00%							0.00%
Weighted fair value of stock options																			$ 0.014							$ 0.011								$ 0.011
Stock based compensation as management fees													136									272							906
Management fees recognized														90,267															181,906
Indebted management fees														26,151															154,500
Indebted expenses paid on behalf of company														8,328															29,003
Accrued interest									10,283
Amount of major financing secured by company																			1,000,000
Description of determine stock based compensation													The Company will determine the stock based compensation for subsequent years 30 days prior to the anniversary date of the agreement.
Common shares issued by company												8,000,000
Fair value of common stock issued by company												113,600
Payment of salary											60,000
Loan from related party		(285,645)	(285,645)							285,645
Interest on loan										12.00%
Maturity date of debt							Dec. 12, 2012
Percentage of penalty							40.00%
Increase in penalty in case of default							5.00%
Period for increase in penalty in case of default							For every 5 days such default continues
Ownership percentage in related party						65.00%				35.00%
Deposit made on behalf of related party								$ 195,312

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Property and Equipment (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Schedule of property and equipment
Cost	$ 81,002
Accumulated Depreciation	50,000	50,000
Net Carrying Value	31,002	6,200
Computer hardware [Member]
Schedule of property and equipment
Cost	30,000
Accumulated Depreciation	30,000
Net Carrying Value
Equipment [Member]
Schedule of property and equipment
Cost	20,000
Accumulated Depreciation	20,000
Net Carrying Value
Leasehold improvements [Member]
Schedule of property and equipment
Cost	31,002
Accumulated Depreciation
Net Carrying Value	$ 31,002	$ 6,200

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Commitments (Details)				1 Months Ended						1 Months Ended	3 Months Ended							1 Months Ended
	Oct. 08, 2012	Sep. 30, 2012	Dec. 31, 2011	May 31, 2011 Management Advisory Services Agreement [Member]	Aug. 15, 2011 Management Advisory Services Agreement [Member] USD ($)	Jun. 29, 2011 Management Advisory Services Agreement [Member] USD ($)	May 10, 2011 Management Advisory Services Agreement [Member] USD ($)	May 18, 2011 Office Lease Agreements [Member] USD ($)	May 18, 2011 Office Lease Agreements [Member] CNY	Sep. 30, 2011 Medical Service Agreements [Member]	Sep. 30, 2012 Medical Service Agreements [Member]	Sep. 01, 2012 Medical Service Agreements [Member]	Sep. 19, 2011 Medical Service Agreements [Member] USD ($)	Sep. 01, 2011 Medical Service Agreements [Member]	Sep. 30, 2012 Interior Design Contract [Member] USD ($)	Nov. 14, 2011 Interior Design Contract [Member] USD ($)	Oct. 15, 2011 Interior Design Contract [Member] USD ($)	Apr. 30, 2012 Business Advisory and Consulting Agreement [Member]	Nov. 30, 2011 Business Advisory and Consulting Agreement [Member]	Sep. 24, 2012 Business Advisory and Consulting Agreement [Member] USD ($)	Apr. 02, 2012 Business Advisory and Consulting Agreement [Member]	Nov. 11, 2011 Business Advisory and Consulting Agreement [Member]
Commitment (Textual)
Payment for services							$ 25,000									$ 6,200
Service agreement period				1 year						2 years								9 months	9 months
Shares Issued	80,000,000	3,243,896,955	328,898,953		1,250,000	3,750,000								2,000,000								90,000,000
Common stock fair value					17,250	63,750														60,000
Common stock shares issued for services, Shares				7,500,000
Minimum rent, due in one and two years								5,550	35,060
Minimum rent, due in three years								5,889	37,200
Minimum rent, due in four years								6,079	38,400
Minimum rent, due in five years								6,269	39,600
Minimum rent, due in six years								6,554	41,400
Common stock shares issued upon execution of agreement												1,000,000		1,000,000							30,000,000
Period for Agreement Execution										10 days
Restricted shares of common stock issued										1,000,000
Restricted shares of common stock fair value													10,000
Number of issuable shares waive by medical director											1,000,000
Maximum payment to be paid under service agreement																	31,002
Payment under service agreement to G-Design																6,200
Amount payable upon Completion And Acceptance Of Final Design															13,951
Amount payable upon completed design and construction drawings approved by chinese government															$ 10,851

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Loans payable (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Summary of change in loans payable
Balance at December 31, 2011	$ 210,981
Settlement of loan payable through issuance of convertible notes	(152,000)
Foreign exchange translation	202
Balance at September 30, 2012	$ 59,183

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Loans payable (Details Textual) (USD $)	Sep. 30, 2012
Loans Payable (Textual)
Loan default amount	$ 59,183

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Nature of Operations and Continuance of Business

9 Months Ended

Sep. 30, 2012

Nature Of Operations and Continuance Of Business [Abstract]

Nature of Operations and Continuance of Business

1.   Nature of Operations and Continuance of Business

Medical Care Technologies Inc. (“we”, “our”, the “Company”) was incorporated in the State of Nevada on February 27, 2007 under the name of “Aventerra Explorations Inc.” and changed its name to “AM Oil Resources & Technology Inc.” on December 3, 2008. On September 28, 2009, the Company incorporated Medical Care Technologies Inc. for the sole purpose of effecting a name change. On October 6, 2009, the Company effected a merger with the wholly owned subsidiary and assumed the subsidiary’s name. In conjunction with the name change, the Company was granted a new trading symbol of MDCE. The Company is in the development stage as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, “Development Stage Entities”.

Basis of Presentation

These accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s December 31, 2011 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end December 31, 2011 as reported on Form 10-K, have been omitted.

Going Concern

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future.  These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations. As at September 30, 2012, the Company has a working capital deficit of $1,156,376 and has accumulated losses of $6,757,478 since inception. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Aventerra Explorations Ltd, a company incorporated in England, and the accounts of an incorporated venture, ReachOut Holdings Limited, in which the Company holds a 65% interest and maintains majority voting control. All inter-company accounts and transactions have been eliminated.

The Company entered into a joint venture agreement, pursuant to which the Company and the joint venture partner incorporated a new Hong Kong company on March 18, 2011 called ReachOut Holdings Limited for the purpose of operating children’s healthcare centers.

Reclassification

Certain prior year amounts have been reclassified to conform with the current year presentation.

Recently Adopted Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have impact on its financial position or results of operations.

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Convertible Notes Payable (Details) (USD $)	1 Months Ended					1 Months Ended			9 Months Ended			9 Months Ended		1 Months Ended	9 Months Ended			1 Months Ended			1 Months Ended	9 Months Ended
	Dec. 31, 2011	Nov. 30, 2011	Sep. 30, 2012	Dec. 12, 2011	Nov. 28, 2011	Jan. 31, 2012 Convertible Promissory Note Agreement One [Member]	Dec. 31, 2011 Convertible Promissory Note Agreement One [Member]	Jun. 30, 2011 Convertible Promissory Note Agreement One [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement One [Member]	Dec. 22, 2011 Convertible Promissory Note Agreement One [Member]	May 31, 2011 Convertible Promissory Note Agreement One [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement One [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement One [Member] Maximum [Member]	Jun. 30, 2011 Convertible Promissory Note Agreement Two [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Two [Member]	Dec. 09, 2011 Convertible Promissory Note Agreement Two [Member]	May 31, 2011 Convertible Promissory Note Agreement Two [Member]	Dec. 31, 2011 Convertible Promissory Note Agreement Two [Member] Modified Convertible Notes [Member]	Dec. 19, 2011 Convertible Promissory Note Agreement Two [Member] Modified Convertible Notes [Member]	Dec. 09, 2011 Convertible Promissory Note Agreement Two [Member] Modified Convertible Notes [Member]	Dec. 31, 2011 Convertible Promissory Note Agreement Two [Member] On conversion date December 19, 2011 [Member] Modified Convertible Notes [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Two [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Two [Member] Maximum [Member]
Convertible Notes Payable (Textual)
Convertible Promissory Note, principal amount											$ 32,500					$ 55,000	$ 55,000			$ 55,000
Debt financing cost								2,500
Net Proceeds from notes								30,000
Convertible notes, maturity date								Mar. 06, 2012						May 31, 2012				Dec. 09, 2013
Interest rate on convertible notes								8.00%						8.00%				15.00%
Interest rate on defualt at maturity date								22.00%
Convertible notes conversion period into common stock after agreement date								180 days
Convertible notes payable, conversion price, description						Lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005		Conversion price equal to a 39.9% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion.						Conversion price equal to the lower of 70% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice				Conversion price per share equal to 50% of the average of the five lowest intraday prices of the Company's common stock during the previous 20 trading days
Restricted shares of common stock upon conversion of principal amount and accrued interest	8,333,333						7,692,308		27,600,000						118,408,241			9,000,000
Principal amount converted to restricted common stock	10,000						10,000		12,500						46,000			9,000
Accrued interest converted to restricted common stock									1,300						1,710
Unamortized discount	23,100		10,402	7,698					6,194	7,083						51,327				55,000
Fair value of the derivative liability				57,269	27,056					34,299					113,376	55,611	79,141		153,398	98,811
Recorded accretion	2,037						1,384		1,782						9,241			543
Reduced carrying value of convertible loan					5,444												0			0
Quoted market price	$ 0.003	$ 0.0029					$ 0.0027					$ 0.0015	$ 0.0020	$ 0.0180				$ 0.0022			$ 0.0030	$ 0.0005	$ 0.0025
Conversion price	$ 0.0012	$ 0.002					$ 0.0013		$ 0.0005					$ 0.0094				$ 0.0011			$ 0.0010	$ 0.0003	$ 0.0010
Expected volatility	271.00%	241.00%					371.00%					347.00%	411.00%	186.00%				205.00%			217.00%	216.00%	279.00%
Expected dividends		0.00%					0.00%		0.00%					0.00%
Expected term	2 months 23 days	3 months 7 days					2 months 16 days					1 month 10 days	1 month 24 days	1 year				2 years			1 year 11 months 21 days	1 year 5 months 26 days	1 year 11 months 5 days
Risk-free interest rate	0.01%	0.03%					0.01%					0.02%	0.04%	0.18%				0.22%			0.24%	0.22%	0.27%
Gain (loss) on change in fair value of derivative liability									20,084					24,141	7,883			43,811
Reclassified amount to additional paid in capital upon conversion				17,621					36,700	15,244									25,101
Additional Paid-in Capital	4,047,627		6,194,911
Common stock shares held under stock escrow agreement																		30,000,000
Modified interest rate term, description																		20% during such period, if any, that the Company fails to timely file its periodic reports pursuant to the Securities Exchange Act of 1934 and 18% after the 10th day after an event of default occurs
Convertible notes including accrued interest																61,586
Accrued interest on convertible note																2,302
Loss on extinguishment of debt																		37,225
Unamortized discount recorded as interest expense															$ 36,170			$ 8,911

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Stock Option (Details Textual) (USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 30, 2010
Stock Options Additional (Textual)
Exercisable, Number of Options			350,000
Stock Options (Textual)
Shares of common stock available for grant			350,000		10,000,000
Granted, Number of Options			350,000	1,350,000
Granted, Number of Options	42,857,142
Granted, Weighted Average Exercise Price	$ 0.00035		$ 0.25	$ 0.25
Assumption of weighted average expected life			9 years 5 months 19 days	10 years
Risk free interest rate			2.37%	3.38%
Expected volatility			214.00%	251.00%
Dividend yield			0.00%	0.00%
Fair value of options granted			$ 0.0093	$ 0.011
Stock-based compensation reversed	$ 1,907
Management fees reversed	1,042
Stock-based compensation		14,476
Management fees		4,883
Unrecognized compensation costs
Intrinsic value	$ 6,429
December 30, 2015 [Member]
Stock Options Additional (Textual)
Exercisable, Number of Options	250,000
February 1, 2016 [Member]
Stock Options Additional (Textual)
Exercisable, Number of Options	100,000
June 28, 2011 [Member]
Stock Options Additional (Textual)
Stock option vested in current period			100,000	458,330
December 28, 2011 [Member]
Stock Options Additional (Textual)
Stock option vested in current period			75,000	383,335
June 28, 2012 [Member]
Stock Options Additional (Textual)
Stock option vested in current period			75,000	508,335
August 1, 2011 [Member]
Stock Options Additional (Textual)
Stock option vested in current period			50,000
January 1, 2012 [Member]
Stock Options Additional (Textual)
Stock option vested in current period			25,000
August 1, 2012 [Member]
Stock Options Additional (Textual)
Stock option vested in current period			25,000

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Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 742	$ 3,380
Prepaid expenses and deposit	221,068	41,682
Total Current Assets	221,810	45,062
Property and equipment, net of accumulated depreciation of $50,000 and $50,000, respectively	31,002	6,200
Intangible asset	897,148	457,695
Deferred financing costs	2,693	4,964
Total Assets	1,152,653	513,921
Current Liabilities
Accounts payable	166,386	90,679
Accrued liabilities	277,110	20,606
Convertible note payable, net of unamortized discount of $10,402 and $23,100, respectively	70,887	93,596
Derivative liability	95,398	155,958
Due to related parties	423,577	79,635
Loan from related party	285,645
Loans payable	59,183	80,981
Total Current Liabilities	1,378,186	521,455
Convertible note payable, net of unamortized discount of $31,426 and $45,500, respectively	2,936	954
Loans payable		130,000
Total Liabilities	1,381,122	652,409
Commitments and Contingency
Stockholders’ Deficit
Preferred Stock: 100,000,000 shares authorized, $0.00001 par value, No shares issued and outstanding as of September 30, 2012 and December 31, 2011
Common Stock: 8,000,000,000 shares authorized, $0.00001 par value, 3,243,896,955 and 328,898,953 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively	32,439	3,289
Additional Paid-in Capital	6,194,911	4,047,627
Deficit Accumulated During the Development Stage	(6,757,478)	(4,340,564)
Total Stockholders’ Deficit	(530,128)	(289,648)
Non-controlling Interest	301,659	151,160
Total Stockholders’ Deficit	(228,469)	(138,488)
Total Liabilities and Stockholders’ Deficit	$ 1,152,653	$ 513,921

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Commitments (Details 1) (USD $)	9 Months Ended	12 Months Ended	1 Months Ended	9 Months Ended			1 Months Ended							1 Months Ended		9 Months Ended	12 Months Ended				1 Months Ended								1 Months Ended			1 Months Ended		1 Months Ended		1 Months Ended			1 Months Ended		1 Months Ended		1 Months Ended				1 Months Ended							1 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Nov. 30, 2011 Finders Fee Agreement [Member]	Sep. 30, 2012 Finders Fee Agreement [Member]	Dec. 31, 2011 Finders Fee Agreement [Member]	Nov. 29, 2011 Finders Fee Agreement [Member]	Jul. 31, 2012 Business Consulting Services Agreement [Member]	May 31, 2012 Business Consulting Services Agreement [Member]	Mar. 31, 2012 Business Consulting Services Agreement [Member]	Aug. 27, 2012 Business Consulting Services Agreement [Member]	Jul. 17, 2012 Business Consulting Services Agreement [Member]	May 08, 2012 Business Consulting Services Agreement [Member]	Mar. 08, 2012 Business Consulting Services Agreement [Member]	Apr. 30, 2012 Business Advisory and Consulting Agreement [Member]	Nov. 30, 2011 Business Advisory and Consulting Agreement [Member]	Sep. 30, 2012 Business Advisory and Consulting Agreement [Member]	Dec. 31, 2011 Business Advisory and Consulting Agreement [Member]	Sep. 24, 2012 Business Advisory and Consulting Agreement [Member]	Apr. 02, 2012 Business Advisory and Consulting Agreement [Member]	Nov. 11, 2011 Business Advisory and Consulting Agreement [Member]	May 31, 2012 Administrative Services Agreement [Member]	Apr. 30, 2012 Administrative Services Agreement [Member]	Sep. 24, 2012 Administrative Services Agreement [Member]	May 18, 2012 Administrative Services Agreement [Member]	Apr. 02, 2012 Administrative Services Agreement [Member]	Apr. 23, 2012 Agreement For Legal Services [Member]	Sep. 24, 2012 Administrative and Support Services Agreement [Member]	May 02, 2012 Administrative and Support Services Agreement [Member]	May 31, 2012 Engineering Services Agreement [Member]	Sep. 24, 2012 Engineering Services Agreement [Member]	May 02, 2012 Engineering Services Agreement [Member]	May 31, 2012 China Logistics Consulting Agreement [Member]	May 16, 2012 China Logistics Consulting Agreement [Member]	May 31, 2012 Communications Consulting Agreement [Member]	May 17, 2012 Communications Consulting Agreement [Member]	Sep. 30, 2012 Advisory Agreement [Member]	Jun. 30, 2012 Advisory Agreement [Member]	Jun. 02, 2012 Advisory Agreement [Member]	Jun. 30, 2012 Consulting Agreement [Member]	Jun. 02, 2012 Consulting Agreement [Member]	Jun. 30, 2012 Chief Technology Officer Agreement [Member]	Jun. 02, 2012 Chief Technology Officer Agreement [Member]	Jun. 30, 2012 Medical Director Agreement [Member]	Aug. 20, 2012 Medical Director Agreement [Member]	Aug. 15, 2012 Medical Director Agreement [Member]	Jun. 15, 2012 Medical Director Agreement [Member]	Apr. 30, 2012 Business Development [Member]	Sep. 30, 2012 Business Development [Member]	Apr. 09, 2012 Business Development [Member]	Apr. 09, 2012 Business Development [Member] Medical First Center In China [Member]	Apr. 09, 2012 Business Development [Member] Medical Second Center In China [Member]	Apr. 09, 2012 Business Development [Member] Medical Third Center In China [Member]	Apr. 09, 2012 Business Development [Member] Medical First Center [Member]	Jul. 31, 2012 Marketing Consulting Agreement [Member]
Commitment (Textual)
Payment for services					$ 2,750																										$ 16,250
Service agreement period			1 year				120 days	120 days	120 days					9 months	9 months						1 year	1 year							4 months			10 months		3 months			6 months		7 months		6 months		6 months				1 year							4 months
Number of common stock issuable for services										77,000,000		77,000,000	65,000,000					90,000,000	90,000,000	90,000,000			60,000,000		60,000,000	10,000,000	60,000,000	60,000,000		65,000,000	65,000,000				100,000									15,000,000	15,000,000	15,000,000		17,918,606	31,885,300
Common stock fair value										38,500								60,000					46,000			8,000	36,500			40,625														7,500		15,000		16,127
Percentage of finder fees paid in cash						5.00%
Percentage of finder fees paid in terms of restricted common shares						5.00%
Notice period for termination of agreement			10 days
Restricted shares of common stock issued				4,688,889			70,000,000														30,000,000											55,000,000				50,000,000	30,000,000		5,000,000		5,000,000
Fair value of restricted shares of common stock											49,000													21,000									66,000		100			24,000		4,000		4,000
Common stock share issued for secrvice description														The 90,000,000 shares will be issued in tranches throughout the term of the agreement as follows: i) 30,000,000 shares upon execution of the agreement or upon effective filing of the Form S-8; ii) 30,000,000 shares on or before August 1, 2012 and; iii) 30,000,000 shares on or before November 1, 2012																																	The 31,885,300 shares are issuable as follows: i) 17,918,606 shares upon execution of the agreement; ii) 3,981,913 shares after the signing of the first letter of intent to enter into a joint venture to develop a medical center; iii) 3,981,913 shares when the Company signs a contract for the first joint venture medical center in China; iv) 2,986,434 shares when the Company signs a contract for the second joint venture medical center in China; iv) 2,986,434 shares when the Company signs a contract for the third joint venture medical center in China.
Common stock shares issued upon execution of agreement																			30,000,000					30,000,000														30,000,000								15,000,000			17,918,606	3,981,913	2,986,434	2,986,434	3,981,913	198,000,000
Common stock issued monthly under the agreement for services																				10,000,000					60,000,000			60,000,000
Restricted common stcok issued description																					In consideration for such services, the Company agreed to issue 60,00,000 restricted shares of common stock, payable as follows: i) 30,000,000 shares upon execution of the agreement and; ii) 30,000,000 shares on or before November 18, 201																In consideration for such services, the Company agreed to issue 80,000,000 restricted shares of common stock of the Company, payable as follows: i) 30,000,000 shares upon execution of the agreement and; ii) 50,000,000 shares on or before September 15, 2012						In consideration for such services, the Company agreed to issue 30,000,000 restricted shares of common stock, payable as follows: i) 15,000,000 shares upon execution of the agreement; and ii) 15,000,000 shares on August 15, 2012.
Restricted shares of common stock issued net																					6,000,000																80,000,000						30,000,000
Expenses recognized fro shares vested																																				20,000
Expenses recognized under the agreement																$ 41,000	$ 49,000																																					$ 99,000
Vested, Number of Options	43,490,477	1,066,665																																		50,000,000

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Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) (USD $)	Total	Common Stock	Additional Paid-In Capital	Deficit Accumulated During Development Stage	Noncontrolling Interest
Beginning Balance, Amount at Feb. 27, 2007
Issuance of common stock for cash at $0.00001 per share to the President of the Company, amount	$ 5,000	$ 575	$ 4,425
Issuance of common stock for cash at $0.00001 per share to the President of the Company, shares		57,500,000
Issuance of common stock for cash at $0.0001 per share, amount	36,000	414	35,586
Issuance of common stock for cash at $0.0001 per share, shares		41,400,000
Donated services	5,000		5,000
Net loss	(37,543)			(37,543)
Ending Balance, Amount at Dec. 31, 2007	8,457	989	45,011	(37,543)
Ending Balance, Shares at Dec. 31, 2007		98,900,000
Donated services	5,500		5,500
Net loss	(55,742)			(55,742)
Ending Balance, Amount at Dec. 31, 2008	(41,785)	989	50,511	(93,285)
Ending Balance, Shares at Dec. 31, 2008		98,900,000
Cancellation of common stock, Amount	(15,000)	(575)	(14,425)
Cancellation of common stock, Shares		(57,500,000)
Issuance of common stock for cash, Amount	15,000	575	14,425
Issuance of common stock for cash, Shares		57,500,000
Net loss	(85,121)			(85,121)
Ending Balance, Amount at Dec. 31, 2009	(126,906)	989	50,511	(178,406)
Ending Balance, Shares at Dec. 31, 2009		98,900,000
Cancellation of common stock, Amount		(573)	573
Cancellation of common stock, Shares		(57,300,000)
Issuance of common stock for acquisition of assets, Amount	504,918	587	504,331
Issuance of common stock for acquisition of assets, Shares		58,695,000
Issuance of common stock for cash at $0.20 per share, Amount	100,000	5	99,995
Issuance of common stock for cash at $0.20 per share, Shares		500,000
Issuance of common stock for consulting services, Amount	515,087	166	514,921
Issuance of common stock for consulting services, Shares		16,635,000
Issuance of common stock for management services, Amount	836,000	380	835,620
Issuance of common stock for management services, Shares		38,000,000
Issuance of common stock for director fees, Amount	11,000	5	10,995
Issuance of common stock for director fees, Shares		500,000
Issuance of common stock for investor relations services, Amount	88,000	38	87,962
Issuance of common stock for investor relations services, Shares		3,826,087
Issuance of common stock for advisory services, Amount	28,750	13	28,737
Issuance of common stock for advisory services, Shares		1,250,000
Stock-based compensation	3,012		3,012
Issuance of stock options	48		48
Net loss	(2,189,271)			(2,189,271)
Ending Balance, Amount at Dec. 31, 2010	(229,362)	1,610	2,136,705	(2,367,677)
Ending Balance, Shares at Dec. 31, 2010		161,006,087
Issuance of common stock for consulting and advisory services, Amount	411,940	450	411,490
Issuance of common stock for consulting and advisory services, Shares		45,000,000
Issuance of common stock for promissory note, Amount	23,750	12	23,738
Issuance of common stock for promissory note, Shares		1,250,000
Issuance of common stock for management services, Amount	166,100	115	165,985
Issuance of common stock for management services, Shares		11,500,000
Issuance of common stock for administrative services, Amount	65,268	52	65,216
Issuance of common stock for administrative services, Shares		5,125,000
Issuance of common stock for investor relations services, Amount	82,500	51	82,449
Issuance of common stock for investor relations services, Shares		5,088,260
Issuance of common stock upon conversion of convertible debt, Amount	461,721	999	460,722
Issuance of common stock upon conversion of convertible debt, Shares		99,929,606
Conversion feature on convertible debt	589,943		589,943
Stock-based compensation	111,379		111,379
Net loss	(1,983,548)			(1,972,887)	(10,661)
Contribution from non-controlling interest	161,821				161,821
Ending Balance, Amount at Dec. 31, 2011	(138,488)	3,289	4,047,627	(4,340,564)	151,160
Ending Balance, Shares at Dec. 31, 2011		328,898,953
Issuance of common stock for cash, Amount	15,000	429	14,571
Issuance of common stock for cash, Shares		42,857,142
Issuance of common stock for consulting and advisory services, Amount	452,227	6,680	445,547
Issuance of common stock for consulting and advisory services, Shares		668,018,606
Issuance of common stock for management services, Amount	160,000	2,000	158,000
Issuance of common stock for management services, Shares		200,000,000
Issuance of common stock for administrative services, Amount	103,500	1,500	102,000
Issuance of common stock for administrative services, Shares		150,000,000
Issuance of common stock for engineering services, Amount	40,625	650	39,975
Issuance of common stock for engineering services, Shares		65,000,000
Issuance of common stock upon conversion of convertible debt, Amount	249,160	13,067	281,093
Issuance of common stock upon conversion of convertible debt, Shares		1,306,655,588
Issuance of common stock for financing fees, Amount	34,359	380	33,979
Issuance of common stock for financing fees, Shares		38,022,222
Issuance of common stock for commitment fees, Amount	200,000	4,444	195,556
Issuance of common stock for commitment fees, Shares		444,444,444
Conversion feature on convertible debt	877,428		877,428
Stock-based compensation	(865)		(865)
Net loss	(2,426,610)			(2,416,914)	(9,696)
Contribution from non-controlling interest	160,195				160,195
Ending Balance, Amount at Sep. 30, 2012	$ (228,469)	$ 32,439	$ 6,194,911	$ (6,757,478)	$ 301,659
Ending Balance, Shares at Sep. 30, 2012		3,243,896,955

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Convertible Notes Payable (Details 3) (USD $)	1 Months Ended				1 Months Ended	9 Months Ended		1 Months Ended	9 Months Ended		9 Months Ended		1 Months Ended	9 Months Ended		9 Months Ended
	Dec. 31, 2011	Nov. 30, 2011	Dec. 12, 2011	Nov. 28, 2011	Mar. 31, 2012 Convertible Promissory Note Agreement Seven [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Seven [Member]	Mar. 08, 2012 Convertible Promissory Note Agreement Seven [Member]	May 31, 2012 Convertible Promissory Note Agreement Eight [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Eight [Member]	May 29, 2012 Convertible Promissory Note Agreement Eight [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Eight [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Eight [Member] Maximum [Member]	May 31, 2012 Convertible Promissory Note Agreement Nine [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Nine [Member]	May 29, 2012 Convertible Promissory Note Agreement Nine [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Nine [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Nine [Member] Maximum [Member]
Convertible Notes Payable (Textual)
Convertible Promissory Note, principal amount							$ 5,000			$ 65,000					$ 65,000
Convertible notes, maturity date					Mar. 07, 2013			Nov. 29, 2014					Nov. 29, 2014
Interest rate on convertible notes					6.00%			10.00%					10.00%
Convertible notes payable, conversion price, description					At a variable conversion price equal to 80% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.			At a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.					At a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.
Variable conversion price discount for modified conversion condition					80.00%			50.00%					50.00%
Principal amount converted to restricted common stock	10,000								48,625					49,425
Restricted shares of common stock upon conversion of principal amount and accrued interest	8,333,333								345,000,000					355,000,000
Fair value of the derivative liability			57,269	27,056			7,547			114,237					114,237
Reduced carrying value of convertible loan				5,444			0			0					0
Recorded accretion	2,037								781					789
Quoted market price	$ 0.003	$ 0.0029			$ 0.0013			$ 0.0007			$ 0.0004	$ 0.0011	$ 0.0007			$ 0.0004	$ 0.0011
Conversion price	$ 0.0012	$ 0.002			$ 0.0007			$ 0.0004			$ 0.00008	$ 0.0004	$ 0.0004			$ 0.00008	$ 0.0004
Expected volatility	271.00%	241.00%			270.00%			246.00%			240.00%	260.00%	246.00%			240.00%	260.00%
Expected dividends		0.00%
Weighted average expected life	2 months 23 days	3 months 7 days			1 year			2 years 6 months			2 years 1 month 28 days	2 years 6 months	2 years 6 months			2 years 1 month 28 days	2 years 6 months
Risk-free interest rate	0.01%	0.03%			0.18%			0.36%			0.23%	0.36%	0.36%			0.23%	0.37%
Gain (loss) on change in fair value of derivative liability					(2,547)	(1,114)		(49,237)	(171,038)				(49,237)	(186,309)
Reclassified amount to additional paid in capital upon conversion			17,621						196,515					213,716
Unamortized discount recorded as interest expense									$ 48,112					$ 48,892

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Loans payable (Tables)

9 Months Ended

Sep. 30, 2012

Loans Payable and Convertible Notes Payable [Abstract]

Summary of change in loans payable

Balance at December 31, 2011	$	210,981
Settlement of loan payable through issuance of convertible notes		(152,000	)
Foreign exchange translation		202
Balance at September 30, 2012	$	59,183

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Convertible Notes Payable (Details 4) (USD $)	1 Months Ended				1 Months Ended		1 Months Ended		1 Months Ended
	Dec. 31, 2011	Nov. 30, 2011	Dec. 12, 2011	Nov. 28, 2011	Jul. 31, 2012 Convertible Promissory Note Agreement Ten [Member]	Jul. 19, 2012 Convertible Promissory Note Agreement Ten [Member]	Aug. 31, 2012 Convertible Promissory Note Agreement Eleven [Member]	Aug. 13, 2012 Convertible Promissory Note Agreement Eleven [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Twelve [Member]	Sep. 26, 2012 Convertible Promissory Note Agreement Twelve [Member]
Convertible Notes Payable (Textual)
Convertible Promissory Note, principal amount						$ 29,500		$ 35,000		$ 28,600
Loan payable amount pursuant to amendment										22,000
Debt financing cost					2,000		2,000
Convertible notes, maturity date					Jan. 13, 2013		Feb. 13, 2013		Sep. 26, 2013
Interest rate on convertible notes					10.00%		10.00%		10.00%
Interest rate on defualt at maturity date					12.00%		12.00%		18.00%
Convertible notes conversion period into common stock after agreement date					180 days		180 days
Convertible notes payable, conversion price, description					At any time after 180 days from July 19, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 90 trading day period prior to conversion.		At any time after 180 days from August 13, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 30 trading day period prior to conversion.		At a variable conversion price equal to 50% of the average of the lowest 5 intraday prices for the common stock during the 20 trading days prior to the date of the conversion notice.
Modified interest rate term, description									From and after the 10th day after an event of default, the interest rate to any unpaid amounts owed shall be increased to 18% per annum.
Fair value of the derivative liability			57,269	27,056						46,592
Reduced carrying value of convertible loan				5,444						0
Quoted market price	$ 0.003	$ 0.0029							$ 0.0004
Conversion price	$ 0.0012	$ 0.002							$ 0.0002
Expected volatility	271.00%	241.00%							317.00%
Expected dividends		0.00%
Weighted average expected life	2 months 23 days	3 months 7 days							1 year
Risk-free interest rate	0.01%	0.03%							0.17%
Gain (loss) on change in fair value of derivative liability									(17,992)
Common stock issued upon the conversion of the principal amount									127,111,111
Unamortized discount recorded as interest expense									28,600
Reclassified amount to additional paid in capital upon conversion			$ 17,621							$ 46,592

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Share Purchase Warrants (Tables)

9 Months Ended

Sep. 30, 2012

Share Purchase Warrants Disclosure [Abstract]

Share purchase warrants

	Number of Warrants #			Exercise Price $
Balance, December 31, 2010 and 2011		500,000			0.15
Expired		(500,000	)		0.15
Balance, September 30, 2012		–			–

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Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) (USD $)	10 Months Ended	12 Months Ended
	Dec. 31, 2007	Dec. 31, 2009
Statement Of Stockholders' Equity [Abstract]
Issuance of common stock for cash at $0.00001 per share to the President of the Company	$ 0.00001
Issuance of common stock for cash at $0.0001 per share	$ 0.0001
Issuance of common stock for cash at $0.20 per share		$ 0.20

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Accumulated Depreciation	$ 50,000	$ 50,000
Unamortized discount, current	10,402	23,100
Unamortized discount, non current	$ 31,426	$ 45,500
Preferred Stock, par value	$ 0.00001	$ 0.00001
Preferred Stock, shares authorized	100,000,000	100,000,000
Preferred Stock, shares issued
Preferred Stock, shares outstanding
Common Stock, par value	$ 0.00001	$ 0.00001
Common Stock, shares authorized	8,000,000,000	8,000,000,000
Common Stock Shares, Issued	3,243,896,955	328,898,953
Common Stock, shares outstanding	3,243,896,955	328,898,953

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Financial Instruments and Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Financial Instruments and Fair Value Measurements [Abstract]

Financial Instruments and Fair Value Measurements

10.   Financial Instruments and Fair Value Measurements

ASC 820 “Fair Value Measurements” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s financial instruments consist principally of cash, accounts payable, convertible note payable, loans payable and amounts due to related parties. Pursuant to ASC 820, the fair value of cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

The Company’s operations are in Canada and China, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

 Assets and liabilities measured at fair value on a recurring basis were presented on the Company's consolidated balance sheet as of September 30, 2012 and December 31, 2011 as follows:

	Fair Value Measurements Using
	Quoted Price in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance as of September 30,  2012		Balance as of December 31, 2011
Liabilities:
Derivative Liabilities	$	–	$	–	$	95,398	$	95,398	$	155,958
Total liabilities measured at fair value	$	–	$	–	$	95,398	$	95,398	$	155,958

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Nov. 19, 2012
Document and Entity Informations [Abstract]
Entity Registrant Name	Medical Care Technologies Inc.
Entity Central Index Key	0001404593
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,433,896,955

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Commitments

9 Months Ended

Sep. 30, 2012

Commitments [Abstract]

Commitments

11.   Commitments

a)   On May 10, 2011, the Company entered into a management advisory services agreement with a consultant for an initial period of one year. In consideration for such services, the Company is required to make payments of $25,000 per quarter as well as any out-of-pocket expenses. In the event that the Company is unable to make such payments, they are given the option to issue shares for such services totalling 7,500,000. On June 29, 2011, the Company issued 3,750,000 shares of common stock at a fair value of $63,750, registered under the June 2, 2011 S-8 Registration Statement.  On August 15, 2011, the Company issued 1,250,000 shares of common stock at a fair value of $17,250, registered under the June 2, 2011 S-8 Registration Statement.

b)   On May 18, 2011, ReachOut entered into two office lease agreements, which commenced on May 22, 2011 until May 21, 2017.  The minimum rent from May 22, 2011 to May 21, 2013 is $5,550 (RMB35,060) per month, the minimum rent from May 22, 2013 to May 21, 2014 is $5,889 (RMB37,200) per month, the minimum rent from May 22, 2014 to May 21, 2015 is $6,079 (RMB38,400), the minimum rent from May 22, 2015 to May 21, 2016 is $6,269 (RMB39,600) and the minimum rent from May 22, 2016 to May 21, 2017 is $6,554 (RMB41,400).  On May 1, 2012, the Company and the lessor agreed to cease the rent payment until the opening of the health center.

c)   On September 1, 2011, the Company entered into a medical director services agreement for a period of 2 years.  Pursuant to the agreement, the Company agreed to issue 2,000,000 shares of common stock as follows: 1,000,000 shares within 10 days of the execution of the agreement; and 1,000,000 shares on September 1, 2012.  On September 19, 2011, the Company issued 1,000,000 restricted shares of common stock at a fair value of $10,000.  During the quarter ended September 30, 2012, the medical director agreed to waive the 1,000,000 shares issuable on September 1, 2012.

d)   On October 15, 2011, ReachOut entered into an interior design contract with G-Design Consultant Inc. and Art Team Limited (“G-Design”).  Pursuant to the agreement, ReachOut agreed to pay a total sum not to exceed $31,002.  The amount is payable as follows: $6,200 to be paid when the preliminary design phase and presentation have been accomplished; $13,951 to be paid on completion and acceptance of the final design concept; $10,851 to be paid when all completed design or construction drawings have been approved by Chinese government officials and departments and is ready to be used for construction.  The Company paid $6,200 to G-Design on November 14, 2011. During the nine months ended September 30, 2012, the Company accrued $13,951 upon the completion and acceptance of the final design concept and $10,851 upon the approval by the Chinese government on the completed design and construction drawings.

e)   On November 11, 2011, the Company entered into a business advisory and consulting agreement with a consultant for a term of nine months. In consideration for such services, the Company agreed to issue 10,000,000 shares of common stock of the Company each month, for a total of 90,000,000 shares of common stock, which will be registered under a Form S-8 Registration.  Pursuant to the agreement, during the period ended December 31, 2011 and September 30, 2012, the Company recognized $49,000 and $41,000, respectively, of expense related to this agreement. On March 31, 2012, the agreement was terminated.  Refer to Note 6(m).

f)   On November 29, 2011, the Company entered into a finder’s fee agreement with Vince Trapasso (“Trapasso”) whereby the Company agreed to pay finder’s fee in cash equal to 5% and in restricted common shares equal to 5% of the total dollar amount of the financing provided by those persons or entities who were introduced by Trapasso.  The initial term of the agreement is one year and the agreement will automatically be renewed at the expiration of the first year of service and at each anniversary of the agreement.  After the first anniversary, the agreement can be terminated by either party with 10 days notice.  During the year ended December 31, 2011, the Company paid $2,750 to Trapasso. During the nine months ended September 30, 2012, the Company issued 4,688,889 restricted shares of common stock to Trapasso.  Refer to Note 6(k).

g)   On March 8, 2012, the Company entered into a business consulting services agreement with a consultant whereby the Company agreed to issue 65,000,000 shares of common stock, which will be registered under a Form S-8 Registration agreement.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter.  On July 17, 2012, the Company has not issued any shares to the consultant and has entered into another agreement in replacement of the March 8, 2012 agreement.  Refer to Note 11(w).

h)   On April 1, 2012, the Company entered into a business advisory and consulting agreement with a consultant for a term of nine months.  In consideration for such services, the Company agreed to issue 90,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  The 90,000,000 shares will be issued in tranches throughout the term of the agreement as follows: i) 30,000,000 shares upon execution of the agreement or upon effective filing of the Form S-8; ii) 30,000,000 shares on or before August 1, 2012 and; iii) 30,000,000 shares on or before November 1, 2012.  As of September 24, 2012, the Company has fully issued the 90,000,000 shares of common stock at a total fair value of $60,000.

i)   On April 1, 2012, the Company entered into an administrative services agreement for a term of one year.  In consideration for such services, the Company agreed to issue 60,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  The 60,000,000 shares will be issued pro rata on a monthly basis with the pro rata shares being due at the end of each month. As of September 24, 2012, the Company has fully issued the 60,000,000 shares of common stock at a total fair value of $46,000.

j)   On April 9, 2012, the Company entered into a business development services agreement for a period of one year for general consulting services in connection with acquiring medical centre licenses and/or operational centres in China.  Pursuant to the agreement, the Company agreed to issue 31,885,300 shares of common stock for the introduction of three opportunities for the Company to acquire ownership within a medical center joint venture in China.  The 31,885,300 shares are issuable as follows: i) 17,918,606 shares upon execution of the agreement; ii) 3,981,913 shares after the signing of the first letter of intent to enter into a joint venture to develop a medical center; iii) 3,981,913 shares when the Company signs a contract for the first joint venture medical center in China; iv) 2,986,434 shares when the Company signs a contract for the second joint venture medical center in China; iv) 2,986,434 shares when the Company signs a contract for the third joint venture medical center in China.  During the nine months ended September 30, 2012, the Company issued 17,918,606 shares at a fair value of $16,127.

k)   On April 23, 2012, the Company entered into a consulting agreement for legal services pursuant to which the Company issued 10,000,000 shares of common stock with a fair value of $8,000.  The Company will register the shares on an S-8 registration statement.

l)   On May 1, 2012, the Company entered into an administrative and support services agreement for a term of one year.  In consideration for such services, the Company agreed to issue 60,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  The 60,000,000 shares will be issued pro rata on a monthly basis with the pro rata shares being due at the end of each month. As of September 24, 2012, the Company has fully issued the 60,000,000 shares of common stock at a total fair value of $36,500.

m)   On May 1, 2012, the Company entered into an engineering services agreement for a term of four months.  In consideration for such services, the Company agreed to pay the consultant at a rate of $16,250 for each month for which services are provided.  The Company will also issue 65,000,000 shares of common stock of the Company, which will be registered under a Form S-8 Registration.  As of September 24, 2012, the Company has fully issued the 65,000,000 shares of common stock at a total fair value of $40,625.

n)   On May 2, 2012, the Company finalized, executed and delivered a Reserve Equity Financing Agreement (the “Financing Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”) with AGS Capital Group, LLC ("AGS").

Pursuant to the terms of the Financing Agreement, for a period of 48 months commencing on the date of effectiveness of the registration statement, AGS shall purchase up to $10,000,000 (the “Commitment Amount”) of the Company’s common stock. The purchase price of the shares under the Financing Agreement is equal to ninety percent (90%) of the lowest closing bid price of the Company’s common stock during the 20 consecutive trading days after the Company delivers to AGS a notice in writing requiring AGS to purchase shares, as further provided for pursuant to the terms of the Financing Agreement. The Company cannot issue any such notices to AGS until a registration statement covering these purchases is declared effective by the Securities and Exchange Commission (the “SEC’) and the number of shares sold in each advance shall not exceed 250% of the average daily trading volume. The Company is prohibited from taking certain actions, including issuing shares or convertible securities where the purchase price is determined using any floating discount.  The Company is required to pay a fee of $250,000 in case of termination of the agreement.

As compensation for AGS's structuring, legal, administrative and due diligence costs associated with the Financing Agreement, the Company issued 33,333,333 restricted common shares of the Company.  As further consideration for AGS entering into the Financing Agreement, the Company also issued 444,444,444 restricted common shares to AGS, which equals to two percent (2%) of the Commitment Amount.

In connection with the execution of the Financing Agreement, the Company entered into the Registration Rights Agreement with AGS. Pursuant to the terms of the Registration Rights Agreement, the Company is obligated to file a registration statement with the SEC to cover the shares issued and to be issued to AGS pursuant to the Financing Agreement.

On July 17, 2012, the Company terminated the financing agreement and registration rights agreement.  As of September 30, 2012, the Company has accrued the termination fee of $250,000 pursuant to the terms of the agreement.  The termination fee and the fair value of the 444,444,444 shares of $200,000 are reported as a loss on contract cancellation in the consolidated statements of expenses.

o)   On May 8, 2012, the Company entering into a business consulting services agreement with a consultant whereby the Company agreed to issue 77,000,000 shares of common stock, which will be registered under a Form S-8 Registration agreement.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter.  On August 27, 2012, the Company issued 77,000,000 shares of common stock at a fair value of $38,500.

p)   On May 16, 2012, the Company entered into a China logistics consulting agreement for a term of ten months.  In consideration for such services, the Company issued 55,000,000 restricted shares of common stock at a fair value of $66,000.

q)   On May 17, 2012, the Company entered into a communications consulting agreement for a term of three months.  In consideration for such services, the Company issued 100,000 restricted shares of common stock at a fair value of $100.

r)   On May 18, 2012, the Company entered into an administrative services agreement for a term of one year.  In consideration for such services, the Company agreed to issue 60,00,000 restricted shares of common stock, payable as follows: i) 30,000,000 shares upon execution of the agreement and; ii) 30,000,000 shares on or before November 18, 2012. On May 18, 2012, the Company issued 30,000,000 restricted shares of common stock at a fair value of $21,000.

s)   On June 1, 2012, the Company entered into an advisory agreement for a term of six months. In consideration for such services, the Company agreed to issue 80,000,000 restricted shares of common stock of the Company, payable as follows: i) 30,000,000 shares upon execution of the agreement and; ii) 50,000,000 shares on or before September 15, 2012.  On June 1, 2012, the Company issued 30,000,000 restricted shares of common stock at a fair value of $24,000.  On September 15, 2012, the Company recognized $20,000 of expense for the 50,000,000 shares that vested.

t)   On June 1, 2012, the Company entered into a consulting agreement for a term of seven months.  In consideration for such services, the Company issued 5,000,000 restricted shares of common stock of the Company at a fair value of $4,000.

u)   On June 1, 2012, the Company entered into a chief technology officer agreement for a term of six months.  In consideration for such services, the Company issued 5,000,000 restricted shares of common stock of the Company at a fair value of $4,000.

v)   On June 15, 2012, the Company entered into a medical director agreement for a term of six months.  In consideration for such services, the Company agreed to issue 30,000,000 restricted shares of common stock, payable as follows: i) 15,000,000 shares upon execution of the agreement; and ii) 15,000,000 shares on August 15, 2012. On June 15, 2012, the Company issued 15,000,000 shares of common stock at a fair value of $15,000.  On August 20, 2012, the Company issued 15,000,000 shares of common stock at a fair value of $7,500.

w)   On July 17, 2012, the Company entered into a business consulting services agreement with a consultant whereby the Company issued 70,000,000 restricted shares of common stock.  The term of this agreement shall commence on the date common stock share compensation is delivered to the consultant and shall continue for a period of 120 days thereafter.   This agreement is for replacement of the agreement as described in Note 11(g).  On July 18, 2012, the Company issued 70,000,000 shares of common stock at a fair value of $49,000.

x)   On July 31, 2012, the Company entered into a marketing consulting agreement for a term of four months.  In consideration for such services, the Company agreed to issue 198,000,000 shares of common stock upon the execution of the agreement.  Pursuant to the agreement, the Company recognized $99,000 of expense for the 198,000,000 shares of common stock upon the execution of the agreement.

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Consolidated Statements of Expenses (Unaudited) (USD $)	3 Months Ended		9 Months Ended		67 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Expenses
General and administrative	$ 372,569	$ 223,073	$ 786,872	$ 727,226	$ 2,586,665
Depreciation and amortization expense		8,942		18,402	504,918
Management fees	45,020	129,687	272,193	305,783	1,505,640
Total Operating Expenses	(417,589)	(361,702)	(1,059,065)	(1,051,411)	(4,597,223)
Other Income (Expense)
Interest expense	(136,938)	(135,748)	(367,063)	(323,152)	(854,571)
Loss on derivative	(156,072)	(7,381)	(531,544)	(78,210)	(717,712)
Loss on extinguishment of debt			(18,387)		(55,612)
Loss on settlement of debt				(13,750)	(13,750)
Loss on contract cancellation			(450,000)		(450,000)
Foreign currency exchange gain (loss)	(530)	434	(551)	431	(1,657)
Total Other Income (Expense)	(293,540)	(142,695)	(1,367,545)	(414,681)	(2,093,302)
Loss Before Discontinued Operations	(711,129)	(504,397)	(2,426,610)	(1,466,092)	(6,690,525)
Loss from Discontinued Operations					(87,310)
Net Loss	(711,129)	(504,397)	(2,426,610)	(1,466,092)	(6,777,835)
Net Loss attributable to non-controlling interest	1,318	2,857	9,696	6,198	20,357
Net Loss Attributable to Medical Care Technologies Inc.	$ (709,811)	$ (501,540)	$ (2,416,914)	$ (1,459,894)	$ (6,757,478)
Net Loss Per Common Share - Basic and Diluted available to Medical Care Technologies Inc.:	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
Weighted Average Common Shares Outstanding –Basic and Diluted	2,513,008,000	229,920,000	1,418,963,000	192,895,000

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Convertible Notes Payable

9 Months Ended

Sep. 30, 2012

Loans Payable and Convertible Notes Payable [Abstract]

Convertible Notes Payable

5.      Convertible Notes Payable

a)   On June 1, 2011, the Company entered into a Securities Purchase Agreement with Asher for the sale of a Convertible Promissory Note (the “Note”) in the principal amount of $32,500. The Company received net proceeds from the issuance of the Note in the amount of $30,000 and incurred debt financing costs of $2,500, which was amortized over the term of the Note. The Note, which is due on March 6, 2012, bears interest at the rate of 8% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Asher at any time after 180 days from June 1, 2011 at a conversion price equal to a 39.9% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on November 28, 2011.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $27,056 as a derivative liability, reducing the carrying value of the convertible loan to $5,444 upon the commencement of the conversion period on November 28, 2011. The initial fair value of the derivative liability at November 28, 2011 of $27,056 was determined using the Black Scholes option pricing model with a quoted market price of $0.0029, a conversion price of $0.002, expected volatility of 241%, no expected dividends, an expected term of 0.27 years and a risk-free interest rate of 0.03%. The discount on the convertible loan is accreted over the term of the convertible loan.

On December 12, 2011, the Company issued 8,333,333 restricted shares of common stock upon the conversion of the principal amount of $10,000. Before the conversion of the note on December 12, 2011, the Company recorded accretion of $2,037. Upon the conversion of the note, the Company recognized unamortized discount of $7,698 as interest expense. The fair value of the derivative liability at December 12, 2011 was $57,269 and $17,621 was reclassified to additional paid-in capital upon conversion of the principal amount of $10,000. The fair value of the derivative liability at December 12, 2011 was determined using the Black Scholes option pricing model with a quoted market price of $0.003, a conversion price of $0.0012, expected volatility of 271%, no expected dividends, an expected term of 0.23 years and a risk-free interest rate of 0.01%.

On December 22, 2011, the Company issued 7,692,308 restricted shares of common stock upon the conversion of the principal amount of $10,000.  Before the conversion of the note on December 22, 2011, the Company recorded accretion of $1,384.  Upon the conversion of the note, the Company recognized unamortized discount of $7,083 as interest expense.  The fair value of the derivative liability at December 22, 2011 was $34,299 and $15,244 was reclassified to additional paid-in capital upon conversion of the principal amount of $10,000.  The fair value of the derivative liability at December 22, 2011 was determined using the Black Scholes option pricing model with a quoted market price of $0.0027, a conversion price of $0.0013, expected volatility of 371%, no expected dividends, an expected term of 0.21 years and a risk-free interest rate of 0.01%.

On January 3, 2012, the Company modified the terms of the convertible promissory note.  The conversion rate for the convertible note was amended to the lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.

The modification was analyzed under ASC 470-50 “Debt – Modifications and Extinguishments,” to determine if extinguishment accounting was applicable.  Pursuant to ASC 470-50-40-11, the guidance found in ASC 470-50 does not apply to previously bifurcated embedded conversion options accounted for under ASC 815.  As a result of the guidance found in ASC 470-50, it was concluded there was no extinguishment of debt, no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized.

The Company then analyzed the modification of the conversion feature pursuant to ASC 815 “Derivatives and Hedging”.  The change in terms of the conversion features would have resulted in a change in the fair value of the derivative liability.  As the derivative liability is marked to fair value at each reporting period, the change in fair value as a result of the modification was recorded during the nine months ended September 30, 2012.

During the nine months ended September 30, 2012, the Company issued 27,600,000 restricted shares of common stock upon the conversion of the principal amount of $12,500 and accrued interest of $1,300.  Before the conversion of the note, the Compa recorded accretion of $1,782.  Upon the conversion of the note, the Company recognized unamortized discount of $6,194 as interest expense.  The fair value of the derivative liability of $36,700 was reclassified to additional paid-in capital upon conversion of the principal amount of $12,500.  The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0015 to $0.0020, a conversion price of $0.0005, expected volatility ranging from 347% to 411%, no expected dividends, an expected term ranging from 0.11 to 0.15 years and a risk-free interest rate ranging from 0.02% to 0.04%.

During the nine months ended September 30, 2012, the Company recognized a loss of $20,084 on the change in fair value of the derivative liability.

b)   On June 1, 2011, the Company entered into a Convertible Promissory Note agreement for $55,000. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to the lower of 70% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice. The loan bears interest at 8% per year and the principal amount and any interest thereon are due on May 31, 2012.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $79,141 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $24,141. The initial fair value of the derivative liability at June 1, 2011 of $79,141 was determined using the Black Scholes option pricing model with a quoted market price of $0.0180, a conversion price of $0.0094, expected volatility of 186%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.18%. The discount on the convertible loan is accreted over the term of the convertible loan.

On December 9, 2011, the Company modified the terms of the convertible promissory note.  The modified note bears interest at 15% per annum (20% during such period, if any, that the Company fails to timely file its periodic reports pursuant to the Securities Exchange Act of 1934 and 18% after the 10th day after an event of default occurs) and all unpaid principal and accrued interest on the modified note shall be due and payable on December 9, 2013 (unless extended by the note holder by the amount of days of the pendency of an event of default) in cash or common stock of the Company, at the note holder’s option.  The modified note is convertible, at any time, in whole or in part, at the note holder’s option, into common stock of the Company at an initial conversion price per share equal to 50% of the average of the five lowest intraday prices of the Company’s common stock during the previous 20 trading days.

The modified debenture also provides that 30,000,000 shares of the Company’s common stock will be held in escrow pursuant to a stock escrow agreement among the Company, the note holder and the escrow agent.

Pursuant to ASC 470-50, “Debt – Modification and Extinguishment,” it was determined that the original and modified notes are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note.  The modified note was initially recorded at fair value and that amount was compared to the carrying value of the original note prior to modification to determine the gain or loss on extinguishment of debt.

On December 9, 2011, prior to the modification of the convertible note, the carrying value of the convertible note was $61,586 (principal amount of $55,000 plus accrued interest of $2,302 plus derivative liability of $55,611 less unamortized discount of $51,327).

The Company determined the fair value of the embedded conversion feature of the modified debt pursuant to ASC 815, “Derivatives and Hedging.” The initial fair value of the derivative liability of the modified debt instrument at December 9, 2011 was determined using the Black Scholes option pricing model with a quoted market price of $0.0022, a conversion price of $0.0011, expected volatility of 205%, no expected dividends, an expected term of two years and a risk-free interest rate of 0.22%. The Company recognized the fair value of the embedded conversion feature of $98,811 as a derivative liability, reduced the value of the convertible loan to $0 and recognized a “day 1” derivative loss of $43,811.

The fair value of the modified debt of $98,811 (principal amount of $55,000 plus derivative liability of $98,811 less unamortized discount of $55,000) was compared to the carrying value of the original debt of $61,586 and the Company recorded a loss on extinguishment of debt of $37,225.

On December 19, 2011, the Company issued 9,000,000 restricted shares of common stock upon the conversion of the principal amount of $9,000. Before the conversion of the modified note on December 19, 2011, the Company recorded accretion of $543. Upon the conversion of the note, the Company recognized the unamortized discount of $8,911 as interest expense. The fair value of the derivative liability at December 19, 2011 was $153,398 and $25,101 was reclassified to additional paid-in capital upon the conversion of the principal amount of $9,000.  The fair value of the derivative liability at December 19, 2011 was determined using the Black Scholes option pricing model with a quote market price of $0.0030, a conversion price of $0.0010, expected volatility of 217%, no expected dividends, an expected term of 1.98 years and a risk-free interest rate of 0.24%.

During the nine months ended September 30, 2012, the Company issued 118,408,241 restricted shares of common stock upon the conversion of the principal amount of $46,000 and accrued interest of $1,710.  Before the conversion of the modified note, the Company recorded accretion of $9,241. Upon the conversion of the note, the Company recognized the unamortized discount of $36,170 as interest expense. The fair value of the derivative liability of $113,376 was reclassified to additional paid-in capital upon the conversion of the principal amount of $46,000.  The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quote market price ranging from $0.0005 to $0.0025, a conversion price ranging from $0.0003 to $0.0010, expected volatility ranging from 216% to 279%, no expected dividends, an expected term ranging from 1.49 to 1.93 years and a risk-free interest rate ranging from 0.22% to 0.27%.

During the nine months ended September 30, 2012, a loss of $7,883 was recognized on the change in fair value of the derivative liability.

c)   On July 20, 2011, the Company entered into a Securities Purchase Agreement with Asher for the sale of a Convertible Promissory Note (the “Note”) in the principal amount of $32,500. The Company received net proceeds from the issuance of the Note in the amount of $30,000 and incurred debt financing costs of $2,500, which was amortized over the term of the Note. The Note, which is due on April 23, 2012, bears interest at the rate of 8% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Asher at any time after 180 days from July 20, 2011 at a conversion price equal to a 39.9% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on January 16, 2012.

On January 3, 2012, the Company modified the terms of the convertible promissory note.  The conversion rate for the convertible note was amended to the lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.

The modification was analyzed under ASC 470-50 “Debt – Modifications and Extinguishments,” to determine if extinguishment accounting was applicable.  As a result of the guidance found in ASC 470-50, it was concluded there was no extinguishment of debt, no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $115,621 as a derivative liability, reduced the carrying value of the convertible loan to $0, and recognized a “day 1”derivative loss of $83,121 upon the commencement of the conversion period on January 16, 2012. The initial fair value of the derivative liability at January 26, 2012 of $115,621 was determined using the Black Scholes option pricing model with a quoted market price of $0.0021, a conversion price of $0.0005, expected volatility of 350%, no expected dividends, an expected term of 0.27 year and a risk-free interest rate of 0.03%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 90,588,585 restricted shares of common stock upon the conversion of the principal amount of $32,500 and accrued interest of $1,300.  Before the conversion of the note, the Company recorded accretion of $7,541. Upon the conversion of the note, the Company recognized unamortized discount of $24,959 as interest expense. The fair value of the derivative liability of $102,748 was reclassified to additional paid-in capital upon the conversion of principal amount of $32,500. The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0009 to $0.0017, a conversion price ranging from $0.0003 to $0.0005, expected volatility ranging from 299% to 360%, no expected dividends, an expected term ranging from 0.10 to 0.23 years and a risk-free interest rate ranging from 0.05% to 0.10%.

During the nine months ended September 30, 2012, a loss of $70,248 was recognized on the change in fair value of the derivative liability.

d)   On September 9, 2011, the Company entered into a Securities Purchase Agreement with Asher for the sale of a Convertible Promissory Note (the “Note”) in the principal amount of $45,000. The Company received net proceeds from the issuance of the Note in the amount of $42,500 and incurred debt financing costs of $2,500, which will be amortized over the term of the Note. The Note, which is due on June 12, 2012, bears interest at the rate of 8% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at the election of Asher at any time after 180 days from September 9, 2011 at a conversion price equal to a 45% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on March 7, 2012.

On January 3, 2012, the Company modified the terms of the convertible promissory note.  The conversion rate for the convertible note was amended to the lesser of the variable conversion price of 65% discount to the average of the 3 closing bid prices of the common stock during the 10 trading day period prior to the conversion and the fixed conversion price of $0.0005.

The modification was analyzed under ASC 470-50 “Debt – Modifications and Extinguishments,” to determine if extinguishment accounting was applicable.  As a result of the guidance found in ASC 470-50, it was concluded there was no extinguishment of debt, no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $172,698 as a derivative liability, reduced the carrying value of the convertible loan to $0, and recognized a “day 1” derivative loss of $127,698 upon the commencement of the conversion period on March 7, 2012. The initial fair value of the derivative liability at March 7, 2012 of $172,698 was determined using the Black Scholes option pricing model with a quoted market price of $0.0013, a conversion price of $0.0003, expected volatility of 368%, no expected dividends, an expected term of 0.27 year and a risk-free interest rate of 0.08%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 170,376,223 restricted shares of common stock upon the conversion of principal amount of $45,000 and accrued interest of $1,800.  Before the conversion of the note, the Company recorded accretion of $13,623. Upon the conversion of the note, the Company recognized unamortized discount of $29,509 as interest expense. The fair value of the derivative liability of $120,559 was reclassified to additional paid-in capital upon the conversion of principal amount of $45,000. The fair value of the derivative liability at the conversion dates was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0005 to $0.0013, a conversion price ranging from $0.0002 to $0.0008, expected volatility ranging from 218% to 511%, no expected dividends, an expected term ranging from 0.08 to 0.22 years and a risk-free interest rate ranging from 0.05% to 0.09%.

During the nine months ended September 30, 2012, a loss of $75,557 was recognized on the change in fair value of the derivative liability.

e)   On November 17, 2011, the Company entered into Convertible Promissory Note agreement for $25,000.  Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 70% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 8% per year and the principal amount and any interest thereon are due on November 17, 2012.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $16,365 as a derivative liability and reduced the carrying value of the convertible loan to $8,635.  The initial fair value of the derivative liability at November 17, 2011 of $16,365 was determined using the Black Scholes option pricing model with a quoted market price of $0.003, a conversion price of $0.0033, expected volatility of 223%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.10%. The discount on the convertible loan is accreted over the term of the convertible loan.

On May 21, 2011, the Company modified the terms of the convertible promissory note.  The modified note bears interest at 12% per annum and all unpaid principal and accrued interest on the modified note shall be due and payable on May 21, 2013.  The modified note is convertible, at any time, in whole or in part, at the note holder’s option, into common stock of the Company at a conversion price per share equal to 50% of the lowest closing bid price of Company’s common stock during the previous 15 trading days.

Pursuant to ASC 470-50, “Debt – Modification and Extinguishment,” it was determined that the original and modified notes are substantially different and the Company treated the original convertible note extinguished and exchanged for a new convertible note.  The modified note was initially recorded at fair value and that amount was compared to the carrying value of the original note prior to modification to determine the gain or loss on extinguishment of debt.

On May 21, 2012, prior to the modification of the convertible note, the carrying value of the convertible note was $47,888 (principal amount of $25,000 plus accrued interest of $1,019 plus derivative liability of $32,050 less unamortized discount of $10,181).

The Company determined the fair value of the embedded conversion feature of the modified debt pursuant to ASC 815, “Derivatives and Hedging.” The initial fair value of the derivative liability of the modified debt instrument at May 21, 2012 was determined using the Black Scholes option pricing model with a quoted market price of $0.0001, a conversion price of $0.0004, expected volatility of 305%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.21%. The Company recognized the fair value of the embedded conversion feature of $66,275 as a derivative liability and reduced the value of the convertible loan to $0.

The fair value of the modified debt of $66,275 (principal amount of $25,000 plus derivative liability of $66,275 less unamortized discount of $25,000) was compared to the carrying value of the original debt of $47,888 and the Company recorded a loss on extinguishment of debt of $18,387.

During the nine months ended September 30, 2012, the Company issued 72,571,428 restricted shares of common stock upon the conversion of the principal amount of $25,000 and accrued interest of $400. Before the conversion of the note, the Company recorded accretion of $816. Upon the conversion of the note, the Company recognized unamortized discount of $24,184 as interest expense. The fair value of the derivative liability of $47,224 was reclassified to additional paid-in capital upon the conversion of principal amount of $25,000. The fair value of the derivative liability was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0007 to $0.001, a conversion price of $0.0004, expected volatility ranging from 305% to 312%, no expected dividends, an expected term ranging from 0.86 to 0.99 years and a risk-free interest rate ranging from 0.18% to 0.21%.

During the nine months ended September 30, 2012, a gain of $20,849 was recognized on the change in fair value of the derivative liability.

f)   On March 6, 2012, the Company entered into Convertible Promissory Note agreement for $10,000.  Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 80% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on March 5, 2013.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $14,058 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $4,058.  The initial fair value of the derivative liability at March 6, 2012 of $14,058 was determined using the Black Scholes option pricing model with a quoted market price of $0.001, a conversion price of $0.0006, expected volatility of 270%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.17%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, a loss of $2,168 was recognized on the change in fair value of the derivative liability.

g)   On March 8, 2012, the Company entered into Convertible Promissory Note agreement for $5,000.  Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 80% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 6% per year and the principal amount and any interest thereon are due on March 7, 2013.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $7,547 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $2,547 on derivative liability.  The initial fair value of the derivative liability at March 8, 2012 of $7,547 was determined using the Black Scholes option pricing model with a quoted market price of $0.0013, a conversion price of $0.0007, expected volatility of 270%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.18%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, a loss of $1,114 was recognized on the change in fair value of the derivative liability.

h)   On May 29, 2012, the Company entered into Convertible Promissory Note agreement for $65,000 in connection with a debt purchase agreement of an existing loan payable for the same amount. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on November 29, 2014.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $114,237 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $49,237.  The initial fair value of the derivative liability at May 29, 2012 of $114,237 was determined using the Black Scholes option pricing model with a quoted market price of $0.0007, a conversion price of $0.0004, expected volatility of 246%, no expected dividends, an expected term of 2.5 years and a risk-free interest rate of 0.36%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 345,000,000 restricted shares of common stock upon the conversion of the principal amount of $48,625. Before the conversion of the note, the Company recorded accretion of $781. Upon the conversion of the note, the Company recognized unamortized discount of $48,112 as interest expense. The fair value of the derivative liability of $196,515 was reclassified to additional paid-in capital upon the conversion of principal amount of $48,625. The fair value of the derivative liability was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0004 to $0.0011, a conversion price ranging from $0.00008 to $0.0004, expected volatility ranging from 240% to 260%, no expected dividends, an expected term ranging from 2.16 to 2.50 years and a risk-free interest rate ranging from 0.23% to 0.36%.

During the nine months ended September 30, 2012, a loss of $171,038 was recognized on the change in fair value of the derivative liability.

i)   On May 29, 2012, the Company entered into Convertible Promissory Note agreement for $65,000 in connection with a debt purchase agreement of an existing loan payable for the same amount. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on November 29, 2014.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $114,237 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $49,237.  The initial fair value of the derivative liability at May 29, 2012 of $114,237 was determined using the Black Scholes option pricing model with a quoted market price of $0.0007, a conversion price of $0.0004, expected volatility of 246%, no expected dividends, an expected term of 2.5 years and a risk-free interest rate of 0.36%. The discount on the convertible loan is accreted over the term of the convertible loan.

During the nine months ended September 30, 2012, the Company issued 355,000,000 restricted shares of common stock upon the conversion of the principal amount of $49,425. Before the conversion of the note, the Company recorded accretion of $789. Upon the conversion of the note, the Company recognized unamortized discount of $48,892 as interest expense. The fair value of the derivative liability of $213,716 was reclassified to additional paid-in capital upon the conversion of principal amount of $49,425. The fair value of the derivative liability was determined using the Black Scholes option pricing model with a quoted market price ranging from $0.0004 to $0.0011, a conversion price ranging from $0.00008 to $0.0004, expected volatility ranging from 240% to 260%, no expected dividends, an expected term ranging from 2.16 to 2.50 years and a risk-free interest rate ranging from 0.23% to 0.37%.

During the nine months ended September 30, 2012, a loss of $186,309 was recognized on the change in fair value of the derivative liability.

j)   On July 19, 2012, the Company entered into a Convertible Promissory Note agreement in the principal amount of $29,500 (the “Note”) and incurred debt financing costs of $2,000, which will be amortized over the term of the Note. The Note, which is due on January 13, 2013, bears interest at the rate of 10% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 12% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at any time after 180 days from July 19, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 90 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on January 15, 2013.

k)   On August 13, 2012, the Company entered into a Convertible Promissory Note agreement in the principal amount of $35,000 (the “Note”) and incurred debt financing costs of $2,000, which will be amortized over the term of the Note. The Note, which is due on February 13, 2013, bears interest at the rate of 10% per annum. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 12% per annum from the due date thereof until the same is paid. All principal and accrued interest on the Note is convertible into shares of the Company’s common stock at any time after 180 days from August 13, 2012 at a conversion price equal to 35% of the average of the 3 lowest trading prices of the common stock during the 30 trading day period prior to conversion. The derivative treatment would not become applicable until the Note becomes convertible on February 9, 2013.

l)   On September 26, 2012, the Company entered into a Convertible Promissory Note agreement in the principal amount of $28,600 (the “Note”) pursuant to an amendment of an existing loan payable amounting to $22,000. Pursuant to the agreement, the loan is convertible into shares of common stock at a variable conversion price equal to 50% of the average of the lowest 5 intraday prices for the common stock during the 20 trading days prior to the date of the conversion notice.  The loan bears interest at 10% per year and the principal amount and any interest thereon are due on September 26, 2013.  From and after the 10th day after an event of default, the interest rate to any unpaid amounts owed shall be increased to 18% per annum.

Pursuant to ASC 815, “Derivatives and Hedging,” the Company recognized the fair value of the embedded conversion feature of $46,592 as a derivative liability, reduced the carrying value of the convertible loan to $0 and recognized a “day 1” derivative loss of $17,992.  The initial fair value of the derivative liability at September 26, 2012 of $46,592 was determined using the Black Scholes option pricing model with a quoted market price of $0.0004, a conversion price of $0.0002, expected volatility of 317%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.17%. The discount on the convertible loan is accreted over the term of the convertible loan.

On September 26, 2012, the Company issued 127,111,111 shares of common stock upon the conversion of the principal amount of $28,600.  Upon the conversion of the note, the Company recognized unamortized discount of $28,600 as interest expense.  The fair value of the derivative liability of $46,592 was reclassified to additional paid-in capital upon the conversion of principal amount of $28,600.

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Loans payable

9 Months Ended

Sep. 30, 2012

Loans Payable and Convertible Notes Payable [Abstract]

Loans payable

4.      Loans payable

   The following table summarizes the change in loans payable for the nine months ended September 30, 2012:

Balance at December 31, 2011	$	210,981
Settlement of loan payable through issuance of convertible notes		(152,000	)
Foreign exchange translation		202
Balance at September 30, 2012	$	59,183

   As of September 30, 2012, the Company is in default of loans amounting to $59,183.

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Stock Options (Tables)

9 Months Ended

Sep. 30, 2012

Stock Options [Abstract]

Company stock option activity

	Number of Options #		Weighted Average Exercise Price $		Weighted Average Remaining Contractual Life (years) #		Aggregate Intrinsic Value $
Outstanding, December 31, 2010		1,350,000		0.25
Granted		350,000		0.25
Outstanding, December 31, 2011		1,700,000		0.25
Granted		42,857,142		0.00035
Outstanding, September 30, 2012		44,557,142		0.00987		0.27		6,429
Exercisable, September 30, 2012		44,557,142		0.00987		0.27		6,429

Schedule of non-vested stock options activity

Non-vested options	Number of Options #			Weighted Average Grant Date Fair Value $
Non-vested at December 31, 2010		1,350,000			0.011
Granted		350,000			0.018
Vested		(1,066,665	)		0.015
Non-vested at December 31, 2011		633,335			0.008
Granted		42,857,142			–
Vested		(43,490,477	)		–
Non-vested at September 30, 2012		–			–

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Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

12.   Subsequent Events

a)   On October 8, 2012, the Company entered into an Executive Officer Employment Agreement and appointed a new Chief Operating Officer (the “COO”).  Pursuant to the agreement, on October 9, 2012, the Company issued 80,000,000 shares of common stock to the COO.  The agreement is for 6 months, renewal upon mutual agreement.

b)   Subsequent to September 30, 2012, the Company issued 160,000,000 shares of common stock upon the conversion of $12,800 of convertible note as described in Note 5(h).

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Share Purchase Warrants

9 Months Ended

Sep. 30, 2012

Share Purchase Warrants Disclosure [Abstract]

Share Purchase Warrants

8.   Share Purchase Warrants

A summary of the changes in the Company’s share purchase warrants is presented below:

	Number of Warrants #			Exercise Price $
Balance, December 31, 2010 and 2011		500,000			0.15
Expired		(500,000	)		0.15
Balance, September 30, 2012		–			–

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Common and Preferred Stock

9 Months Ended

Sep. 30, 2012

Common and Preferred Stock [Abstract]

Common and Preferred Stock

6.   Common and Preferred Stock

The preferred stock may be divided into and issued in series by the Board of Directors. The Board is authorized to fix and determine the designations, rights, qualifications, preferences, limitations and terms, within legal limitations. As of September 30, 2012 and December 31, 2011, there was no preferred stock issued and outstanding.

On March 29, 2012, the Company held a Special Meeting of Shareholders and authorized the increasing of authorized capital of the Company from 500,000,000 shares of common stock with a par value of $0.00001 per share to 8,000,000,000 shares of common stock with a par value of $0.00001 per share and granted discretionary authority to the Company’s Board of Directors to implement a reverse stock split of the Company’s common stock, on a basis of up to five hundred pre-consolidation shares within twelve months of the date of the Special Meeting.

During the three months ended September 30, 2012:

a)      On July 26, 2012, the Company issued 42,857,142 shares of common stock at $0.00035 per share for proceeds of $15,000.  The Company also granted an option to purchase an additional 42,857,142 shares of common stock with an exercise price of $0.00035 per share to the investor.  The option expires on November 23, 2012.

b)   The Company issued 470,000,000 shares of common stock at a fair value of $244,000 for consulting services.

c)   The Company issued 95,000,000 shares of common stock at a fair value of $54,000 for administrative services.

d)   The Company issued 32,500,000 shares of common stock at a fair value of $14,625 for engineering services.

e)   The Company issued 768,253,968 shares of common stock upon the conversions of various convertible notes as described in Note 5.

During the three months ended June 30, 2012:

f)      The Company issued 168,018,606 shares of common stock at a fair value of $167,227 for consulting services.

g)      The Company issued 200,000,000 shares of common stock at a fair value of $160,000 for management services.

h)      The Company issued 55,000,000 shares of common stock at a fair value of $49,500 for administrative services.

i)       The Company issued 32,500,000 shares of common stock at a fair value of $26,000 for engineering services.

j)       The Company issued 364,247,689 shares of common stock upon the conversions of various convertible notes as described in Note 5.

k)      The Company issued 4,688,889 shares of common stock at a fair value of $4,359 pursuant to the finder’ fees agreement as described in Note 11(f).

l)       The Company issued 444,444,444 shares of common stock at a fair value of $200,000 for commitment fees.

During the three months ended March 31, 2012:

m)     In November 2011, the Company granted 90,000,000 shares of common stock pursuant to a consulting agreement.  The award vests over the 9-month term of the agreement.  For the three months ended March 31, 2012, the Company recognized stock-based compensation of $41,000 which is equivalent to the fair value of the 30,000,000 shares that vested during the period. Refer to Note 11(e).

n)     The Company issued 174,153,931 shares of common stock upon the conversions of various convertible notes as described in Note 5.

o)     The Company issued 33,333,333 restricted shares of common stock at a fair value of $30,000 for structuring and due diligence fee pursuant to the term sheet as described in Note 11(n).

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Stock Options

9 Months Ended

Sep. 30, 2012

Stock Options [Abstract]

Stock Options

7.   Stock Options

On December 30, 2010, the Company adopted a stock option plan named 2010 Stock Option Plan (the “Plan”), the purpose of which is to provide incentives to key employees, officers, directors, consultants, and agents of the Company for high levels of performance and to reward unusual efforts which increase the earnings and long-term growth of the Company. Prior to grant of options under the Plan, there were 10,000,000 shares of common stock available for issuance under the Plan.

During the year ended December 31, 2010, the Company granted 1,350,000 stock options with an exercise price of $0.25 per share. All 1,350,000 stock options are exercisable until December 30, 2015. Of the 1,350,000 stock options, 458,330 stock options vest on June 28, 2011, 383,335 stock options vest on December 28, 2011 and 508,335 stock options vest on June 28, 2012. The fair value for these stock options was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.38%, an expected volatility of 251%, and a 0% dividend yield. The weighted average fair value of stock options granted was $0.011 per share.

During the year ended December 31, 2011, the Company granted 350,000 stock options with an exercise price of $0.25 per share. Of the 350,000 stock options, 250,000 stock options are exercisable until December 30, 2015 and 100,000 stock options are exercisable until February 1, 2016. Of the 350,000 stock options, 100,000 stock options vest on June 28, 2011, 50,000 stock options vest on August 1, 2011, 75,000 stock options vest on December 28, 2011, 25,000 stock options vest on January 1, 2012, 75,000 stock options vest on June 28, 2012 and 25,000 stock options vest on August 1, 2012. The fair value for these stock options was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 9.47 years, a risk-free rate of 2.37%, an expected volatility of 214%, and a 0% dividend yield. The weighted average fair value of stock options granted was $0.0093 per share.

During the nine months ended September 30, 2012, the Company reversed stock-based compensation of $1,907 included in general and administrative expense and recorded $1,042 as management fees. During the nine months ended September 30, 2011, the Company recorded stock-based compensation of $14,476 as general and administrative expense and $4,883 as management fees.

During the nine months ended September 30, 2012, the Company granted an option to an investor to purchase 42,857,142 shares of common stock.  The option is exercisable at $0.00035 per share until November 23, 2012.

A summary of the Company’s stock option activity is as follows:

	Number of Options #		Weighted Average Exercise Price $		Weighted Average Remaining Contractual Life (years) #		Aggregate Intrinsic Value $
Outstanding, December 31, 2010		1,350,000		0.25
Granted		350,000		0.25
Outstanding, December 31, 2011		1,700,000		0.25
Granted		42,857,142		0.00035
Outstanding, September 30, 2012		44,557,142		0.00987		0.27		6,429
Exercisable, September 30, 2012		44,557,142		0.00987		0.27		6,429

A summary of the status of the Company’s non-vested stock options as of September 30, 2012, and changes during the nine months ended September 30, 2012 are presented below:

Non-vested options	Number of Options #			Weighted Average Grant Date Fair Value $
Non-vested at December 31, 2010		1,350,000			0.011
Granted		350,000			0.018
Vested		(1,066,665	)		0.015
Non-vested at December 31, 2011		633,335			0.008
Granted		42,857,142			–
Vested		(43,490,477	)		–
Non-vested at September 30, 2012		–			–

At September 30, 2012, there was $nil of unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Plan. There was $6,429 intrinsic value associated with the outstanding options at September 30, 2012.

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Derivative Instruments

9 Months Ended

Sep. 30, 2012

Derivative Instruments [Abstract]

Derivative Instruments

9.   Derivative Instruments

In June 2008, the FASB ratified ASC 815-15, “Derivatives and Hedging – Embedded Derivatives” (“ASC 815-15”). ASC 815-15, specifies that a contract that would otherwise meet the definition of a derivative, but is both (a) indexed to its own stock and (b) classified in stockholders’ equity in the statement of financial position would not be considered a derivative financial instrument.  ASC 815-15 provides a new two-step model to be applied in determining whether a financial instrument or an embedded feature is indexed to an issuer’s own stock, including evaluating the instrument’s contingent exercise and settlement provisions, and thus able to qualify for the ASC 815-15 scope exception. It also clarifies the impact of foreign currency denominated strike prices and market-based employee stock option valuation instruments on the evaluation. ASC 815-15 is effective for the first annual reporting period beginning after December 15, 2008 and early adoption is prohibited.

Convertible Debt – The embedded conversion option in the Company’s convertible notes described in Note 5 contain a conversion feature that qualifies for embedded derivative classification.  The fair value of these liabilities will be re-measured at the end of every reporting period and the change in fair value will be reported in the consolidated statement of operations as a gain or loss on derivative financial instruments.

The following table summarizes the change in derivative liabilities for the nine months ended September 30, 2012:

Balance at December 31, 2011	$	155,958
Addition of new derivative liability		285,324
Settlement of derivative liability through conversion of debt		(877,428	)
Derivative loss included in other income (expense)		531,544
Balance at September 30, 2012	$	95,398

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Convertible Notes Payable (Details 2) (USD $)	1 Months Ended					1 Months Ended		9 Months Ended			1 Months Ended			9 Months Ended		1 Months Ended	9 Months Ended
	Dec. 31, 2011	Nov. 30, 2011	Sep. 30, 2012	Dec. 12, 2011	Nov. 28, 2011	May 31, 2012 Convertible Promissory Note Agreement Five [Member]	Nov. 30, 2011 Convertible Promissory Note Agreement Five [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Five [Member]	May 21, 2012 Convertible Promissory Note Agreement Five [Member]	Nov. 17, 2011 Convertible Promissory Note Agreement Five [Member]	May 31, 2012 Convertible Promissory Note Agreement Five [Member] Modified Convertible Notes [Member]	May 31, 2011 Convertible Promissory Note Agreement Five [Member] Modified Convertible Notes [Member]	May 21, 2012 Convertible Promissory Note Agreement Five [Member] Modified Convertible Notes [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Five [Member] Minimum [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Five [Member] Maximum [Member]	Mar. 31, 2012 Convertible Promissory Note Agreement Six [Member]	Sep. 30, 2012 Convertible Promissory Note Agreement Six [Member]	Mar. 06, 2012 Convertible Promissory Note Agreement Six [Member]
Convertible Notes Payable (Textual)
Convertible Promissory Note, principal amount									$ 25,000	$ 25,000			$ 25,000					$ 10,000
Carrying value of convertible note									47,888
Convertible notes, maturity date							Nov. 17, 2012					May 21, 2013				Mar. 05, 2013
Interest rate on convertible notes							8.00%					12.00%				10.00%
Convertible notes payable, conversion price, description							Variable conversion price equal to 70% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.					At any time, in whole or in part, at the note holder's option, into common stock of the Company at a conversion price per share equal to 50% of the lowest closing bid price of Company's common stock during the previous 15 trading days.				At a variable conversion price equal to 80% of the average of the lowest three closing bid prices for the common stock during the 10 trading days prior to the date of the conversion notice.
Variable conversion price discount for modified conversion condition							70.00%					50.00%				80.00%
Restricted shares of common stock upon conversion of principal amount and accrued interest	8,333,333							72,571,428
Principal amount converted to restricted common stock	10,000							25,000
Accrued interest						1,019
Accrued interest converted to restricted common stock								400
Unamortized discount	23,100		10,402	7,698				24,184	10,181				25,000
Fair value of the derivative liability				57,269	27,056				32,050	16,365			66,275					14,058
Fair value of debt													66,275
Recorded accretion	2,037							816
Reduced carrying value of convertible loan					5,444				0	8,635								0
Quoted market price	$ 0.003	$ 0.0029				$ 0.0001	$ 0.003							$ 0.0007	$ 0.001	$ 0.001
Conversion price	$ 0.0012	$ 0.002				$ 0.0004	$ 0.0033	$ 0.0004								$ 0.0006
Expected volatility	271.00%	241.00%				305.00%	223.00%							305.00%	312.00%	270.00%
Expected dividends		0.00%
Weighted average expected life	2 months 23 days	3 months 7 days				1 year	1 year							10 months 22 days	11 months 26 days	1 year
Risk-free interest rate	0.01%	0.03%				0.21%	0.10%							0.18%	0.21%	0.17%
Gain (loss) on change in fair value of derivative liability								20,849								(4,058)	(2,168)
Reclassified amount to additional paid in capital upon conversion				17,621				47,224
Loss on extinguishment of debt											$ (18,387)

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2012

Property and Equipment [Abstract]

Schedule of property and equipment

	Cost $		Accumulated Depreciation $		September 30, 2012 Net Carrying Value $		December 31, 2011 Net Carrying Value $
Computer hardware		30,000		30,000		–		–
Equipment		20,000		20,000		–		–
Leasehold improvements		31,002		–		31,002		6,200
		81,002		50,000		31,002		6,200

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Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Financial Instruments and Fair Value Measurements [Abstract]

Assets and liabilities measured at fair value on a recurring basis

	Fair Value Measurements Using
	Quoted Price in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)		Balance as of September 30,  2012		Balance as of December 31, 2011
Liabilities:
Derivative Liabilities	$	–	$	–	$	95,398	$	95,398	$	155,958
Total liabilities measured at fair value	$	–	$	–	$	95,398	$	95,398	$	155,958

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Share Purchase Warrants (Details) (Warrant [Member], USD $)	9 Months Ended
	Sep. 30, 2012
Warrant [Member]
Summary of the changes in Company’s share purchase warrant
Beginning Balance, Number of Warrants	500,000
Expired, Number of Warrants	(500,000)
Ending Balance, Number of Warrants
Beginning Balance, Exercise Price	$ 0.15
Expired, Exercise Price	$ 0.15
Ending Balance, Exercise Price

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		67 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Cash Flows From Operating Activities:
Net loss	$ (2,426,610)	$ (1,466,092)	$ (6,777,835)
Adjustment to reconcile net loss to net cash used in operating activities:
Donated services and expenses			10,500
Depreciation and amortization		18,402	504,918
Stock-based compensation	755,487	731,121	3,074,570
Accretion of discount on convertible debt	292,691	301,387	744,314
Loss on derivative	531,544	78,210	717,712
Loss on extinguishment of debt	18,387		55,612
Loss on settlement of debt			13,750
Loss on contract cancellation	450,000		450,000
Amortization of debt financing costs	40,630	8,523	53,916
Changes in operating assets and liabilities:
Prepaid expenses and deposit	15,927	(13,498)	(25,755)
Accounts payable	101,403	46,012	229,778
Accrued liabilities	22,886	12,378	52,941
Net Cash Used in Operating Activities	(197,655)	(269,807)	(895,579)
Cash Flows From Investing Activities:
Purchase of property, plant and equipment			(6,200)
Cash paid for purchase of clinic license	(153,808)	(257,695)	(611,503)
Net Cash Used in Investing Activities	(153,808)	(257,695)	(617,703)
Cash Flows From Financing Activities:
Proceeds from sale of common stock for cash			141,000
Proceeds from loans payable			221,189
Proceeds from convertible note payable, net of debt financing costs	40,000	444,500	576,750
Due to related party	148,630	11,794	253,069
Contributions from non-controlling interest	160,195	97,515	322,016
Cash Provided by Financing Activities	348,825	553,809	1,514,024
(Decrease) Increase in Cash and Cash Equivalents	(2,638)	26,307	742
Cash and Cash Equivalents – Beginning of Period	3,380	391
Cash and Cash Equivalents – End of Period	742	26,698	742
Supplemental Disclosures:
Interest paid
Income taxes paid
Non-Cash Disclosures:
Account payable paid through issuance of stock and convertible notes	54,500		54,500
Deposit paid directly by related party	195,312		195,312
Acquisition of property and equipment in accounts payable	24,802		24,802
Debt discount	276,100	78,901	795,804
Cancellation of shares			573
Conversion of derivative liability	877,428	391,816	1,467,371
Settlement of debt-non-cash		10,000
Reclassification of related party debt to/from accounts payable			48,249
Shares issued for acquisition of assets			504,918
Shares issued upon conversion of convertible debt and accrued interest	294,160		755,881
Purchase of clinic license paid directly by related party	285,645	306,933	285,645
Issuance of convertible notes to settle loans payable	$ 152,000		$ 152,000

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Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

3.   Related Party Transactions

a)   On April 23, 2012, the Company entered into a CEO Agreement with the Chief Executive Officer (the “CEO”) of the Company, which has an initial term of 1 year commencing December 1, 2011.  Pursuant to the agreement, the Company agreed to pay the CEO an annual compensation of $120,000 commencing February 1, 2012 and issued 120,000,000 restricted shares of common stock to the CEO with a fair value of $96,000.

On December 30, 2010, the Company issued 500,000 stock options to the CEO of the Company with an exercise price of $0.25 per share.  The 500,000 stock options are exercisable until December 30, 2015.  125,000 stock options vested on June 28, 2011, 125,000 vested on Dec 28, 2011, and 250,000 stock options vested on June 28, 2012.  The fair value for these stock options were estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.38%, an expected volatility of 251%, and a 0% dividend yield. The weighted fair value of stock options was $0.011 per share. During the nine months ended September 30, 2012, the Company recorded stock-based compensation of $906 as management fees.

During the nine months ended September 30, 2012, the Company recognized a total of $181,906 of management fees for the CEO of the Company. At September 30, 2012, the Company is indebted to the CEO of the Company for $154,500 for management fees. The Company is also indebted to the CEO of the Company and a company controlled by the CEO of the Company for $29,003 for expenses paid on behalf of the Company.  These amounts are unsecured, bear no interest and are due on demand.

b)   On February 1, 2011, the Company entered into an Executive Officer Employment Agreement with its President (former Chief Operating Officer). Pursuant to the agreement, the Company agreed to pay a base compensation to be determined at such time when the Company secures a major financing in excess of $1,000,000. The Company issued 2,000,000 restricted shares of common stock for the first year of service at a fair value of $28,000. The Company will determine the stock based compensation for subsequent years 30 days prior to the anniversary date of the agreement. The term of the agreement is 36 months and the agreement is automatically renewable for successive one year.  On August 1, 2011, the Company amended the Executive Officer Employment Agreement.  Pursuant to the amendment, the Company issued 8,000,000 shares of common stock at a fair value of $113,600.  On April 23, 2012, the Company further amended the Executive Officer Employment Agreement.  Pursuant to the 2nd amendment, the Company agreed to pay an annual salary of $60,000 and issued an additional 80,000,000 restricted shares of common stock with a fair value of $64,000.

On February 1, 2011, the Company issued 100,000 stock options to the President with an exercise price of $0.25 per share. The 100,000 stock options are exercisable until February 1, 2016. 50,000 stock options vested on August 1, 2011, 25,000 stock options vested on January 1, 2012, and 25,000 stock options vested on August 1, 2012. The fair value for these stock options was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.48%, an expected volatility of 250%, and a 0% dividend yield. The weighted fair value of stock options was $0.014 per share. During the nine months ended September 30, 2012, the Company recorded stock-based compensation of $136 as management fees

During the nine months ended September 30, 2012, the Company recognized a total of $90,267 of management fees for the President of the Company.  At September 30, 2012, the Company is indebted to the President of the Company for $26,151 for management fees.  The Company is also indebted to the President of the Company for $8,328 for expenses paid on behalf of the Company. These amounts are unsecured, bear no interest and are due on demand.

c)   On December 30, 2010, the Company issued an aggregate of 250,000 stock options to four directors of the Company with an exercise price of $0.25 per share.  The 250,000 stock options are exercisable until December 30, 2015.  99,998 stock options vested on June 28, 2011, 75,001 stock options vested on December 28, 2011, and 75,001 stock options vested on June 28, 2012.  The fair value for these stock options were estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 3.38%, an expected volatility of 251%, and a 0% dividend yield. The weighted fair value of stock options was $0.011 per share. During the nine months ended September 30, 2012, the Company recorded stock-based compensation of $272 as management fees.

d)   On June 12, 2012, the Company entered into a loan agreement (the “Loan Agreement”) with Ocean Wise International Industrial Limited, a Hong Kong corporation (“Ocean Wise”), pursuant to which the Company received a loan of $285,645 from Ocean Wise to be used for the Company’s joint venture costs for its Shenzhen Phase 1 and 2 licenses. The loan accrues interest at 12% per annum and matures on December 12, 2012. In the event of default, all principal and accrued interest will become immediately due and payable and the Company will be required to pay Ocean Wise an initial penalty equal to 40% of the Company’s joint venture share in Reachout Holdings Limited (“Reachout”), which penalty will increase an additional 5% for every 5 days such default continues. Ocean Wise and the Company currently own 35% and 65%, respectively, in Reachout, a Hong Kong corporation.  At September 30, 2012, accrued interest of $10,283 is included in due to related parties.

e)   In May 2012, Ocean Wise made a deposit of $195,312 on behalf of Reachout to the government of China for the license to operate healthcare center in Shenzhen, China.  The deposit will be returned to Ocean Wise in November 2012.  The related liability to Ocean Wise is included in due to related parties.

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Nature of Operations and Continuance of Business (Details) (USD $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Nature of Operations and Continuance of Business (Textual)
Working capital deficit	$ 1,156,376
Deficit Accumulated During the Development Stage	$ (6,757,478)	$ (4,340,564)
Ownership interest in subsidiary	65.00%

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Stock Options (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 12, 2011
Summary of the Company’s stock option activity
Granted, Number of Options	42,857,142
Exercisable, Number of Options		350,000
Granted, Weighted Average Exercise Price	$ 0.00035	$ 0.25	$ 0.25
Unamortized discount, current	$ 10,402	$ 23,100		$ 7,698
Stock Options [Member]
Summary of the Company’s stock option activity
Beginning Balance, Number of Warrants	1,700,000	1,350,000
Granted, Number of Options	42,857,142	350,000
Ending Balance, Number of Warrants	44,557,142	1,700,000
Exercisable, Number of Options	44,557,142
Beginning Balance, Exercise Price	$ 0.25	$ 0.25
Granted, Weighted Average Exercise Price	$ 0.00035	$ 0.25
Ending Balance, Exercise Price	$ 0.00987	$ 0.25
Exercisable, Weighted Average Exercise Price	$ 0.00987
Outstanding, Weighted Average Remaining Contractual Life (years)	3 months 7 days
Exercisable, Weighted Average Remaining Contractual Life (years)	3 months 7 days
Outstanding, Aggregate Intrinsic Value	6,429
Exercisable, Aggregate Intrinsic Value	$ 6,429

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Nature of Operations and Continuance of Business (Policies)

9 Months Ended

Sep. 30, 2012

Nature Of Operations and Continuance Of Business [Abstract]

Basis of Presentation

Basis of Presentation

These accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s December 31, 2011 Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year end December 31, 2011 as reported on Form 10-K, have been omitted.

Going Concern

Going Concern

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future.  These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations. As at September 30, 2012, the Company has a working capital deficit of $1,156,376 and has accumulated losses of $6,757,478 since inception. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Consolidation

Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Aventerra Explorations Ltd, a company incorporated in England, and the accounts of an incorporated venture, ReachOut Holdings Limited, in which the Company holds a 65% interest and maintains majority voting control. All inter-company accounts and transactions have been eliminated.

The Company entered into a joint venture agreement, pursuant to which the Company and the joint venture partner incorporated a new Hong Kong company on March 18, 2011 called ReachOut Holdings Limited for the purpose of operating children’s healthcare centers.

Reclassification

Reclassification

Certain prior year amounts have been reclassified to conform with the current year presentation.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have impact on its financial position or results of operations.

Fair Value Measurements

ASC 820 “Fair Value Measurements” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s financial instruments consist principally of cash, accounts payable, convertible note payable, loans payable and amounts due to related parties. Pursuant to ASC 820, the fair value of cash equivalents is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of all of other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

The Company’s operations are in Canada and China, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Derivatives and Hedging - Embedded Derivatives

In June 2008, the FASB ratified ASC 815-15, “Derivatives and Hedging – Embedded Derivatives” (“ASC 815-15”). ASC 815-15, specifies that a contract that would otherwise meet the definition of a derivative, but is both (a) indexed to its own stock and (b) classified in stockholders’ equity in the statement of financial position would not be considered a derivative financial instrument.  ASC 815-15 provides a new two-step model to be applied in determining whether a financial instrument or an embedded feature is indexed to an issuer’s own stock, including evaluating the instrument’s contingent exercise and settlement provisions, and thus able to qualify for the ASC 815-15 scope exception. It also clarifies the impact of foreign currency denominated strike prices and market-based employee stock option valuation instruments on the evaluation. ASC 815-15 is effective for the first annual reporting period beginning after December 15, 2008 and early adoption is prohibited.