Table of
Contents
 
 UNITED STATES
 SECURITIES AND EXCHANGE
COMMISSION
 Washington, D.C.
20549
 
 FORM 10-Q
 þ
                  
                  QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the quarterly period ended March 31,
      2009o
                  
                  TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the transition period from __________ to
  __________
  Commission
file number:  0-12968
  INMEDICA DEVELOPMENT CORPORATION
 (Exact
name of registrant as specified in its charter)
  Utah
                        
                        87-0397815(State
      or other jurisdiction of
                        
                        (IRS
      Employer Identification
      No.)incorporation
      or organization)
  3104
E. Camelback Road, Suite 242
 Phoenix,
Arizona 85016
 (Address
of principal executive offices)
 (480)
991-9500
 (Registrant’s
telephone number, including area code)
   Indicate
by check mark whether the registrant: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.  Yes  þNo 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” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.  (Check one):
  Large accelerated
      filer    o
                    Accelerated
      filer    oNon-accelerated
      filer    o
                    Small
      reporting company    þ
 Indicate
by check mark whether the registrant is a shell company (as defined by Rule
12b-2 of the Exchange Act).  Yes  oNo þ
 As of May
15, 2009, 18,629,493 shares of the issuer’s common stock were
outstanding.
 Table of
Contents




INMEDICA DEVELOPMENT
CORPORATION





Table of
      ContentsPART I.
       FINANCIAL INFORMATION
                  Page
      No.Item 1.
                  Financial StatementsConsolidated
      Balance Sheets as of March 31, 2009 and December 31,2008
                  3Consolidated Statements of Income for the Three Months
      ended March 31, 2009 and 2008
                  4Consolidated
      Statements of Cash Flows for the Three Months ended
      March 31, 2009 and 2008
                  5Notes to the Consolidated Financial
      Statements
                  6Item 2.
                  Management’s Discussion and Analysis of Financial Condition
      and Results of Operations
                  10Item 3.
                  Quantitative and Qualitative Disclosures About Market
      Risk
                  14Item 4T.
                  Controls and Procedures
                  14PART
      II.  OTHER INFORMATIONItem 1.
                  Legal Proceedings
                  15Item 1A.
                  Risk Factors
                  15Item 2.
                  Unregistered Sales of Equity Securities and Use of
      Proceeds
                  15Item 3.
                  Defaults Upon Senior Securities
                  15Item 4.
                  Submission of Matters to a Vote of Security
      Holders
                  15Item 5.
                  Other Information
                  15Item 6.
                  Exhibits
                  16Signatures
                  17


2
 Table of
Contents




INMEDICA DEVELOPMENT
CORPORATION
  FORWARD-LOOKING STATEMENTS
  This
Quarterly Report on Form 10-Q (“Quarterly Report”) contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and should be read in conjunction with the Financial Statements of
InMedica Development Corporation (the “Company” or “InMedica”).  Such
statements are not historical facts and reflect our current views regarding
matters such as operations and financial performance. In general,
forward-looking statements are identified by such words or phrases as “expects,”
“anticipates,” “believes,” “could,” “approximates,” “estimates,” “may,”
“intends,” “predicts,” “projects,” “plans,” or “will,” or the negative of those
words or other terminology. These
statements are not guarantees of future performance and involve certain 
known and unknown inherent risks, uncertainties and other factors that are
difficult to predict;our actual results could differ materially from
those expressed in these forward-looking statements, including those risks and
other factors described elsewhere in this Quarter Report.  The
cautionary factors, risks and other factors presented should not be construed as
exhaustive.   Other risks not presently known to us, or that we
currently believe are immaterial, could also adversely affect our business,
financial condition or results of operations.
  Each forward-looking statement
should be read in context with, and with an understanding of, the various
disclosures concerning our business made elsewhere in this Quarterly Report, as
well as other public reports filed by us with the United States Securities and
Exchange Commission. Readers should not place undue reliance on any
forward-looking statement as a prediction of actual results of developments.
Except as required by applicable law or regulation, we undertake no obligation
to update or revise any forward-looking statement contained in this Quarterly
Report.
  3
 Table of
Contents


PART
      I.
              FINANCIAL
      INFORMATION




Item 1.
            Financial
      Statements


INMEDICA DEVELOPMENT CORPORATION AND
SUBSIDIARY
 CONSOLIDATED
BALANCE SHEETS
 March
      31,
                      
                      
                      December
      31,2009
                      
                      
                      2008ASSETS
                      
                      (Unaudited)Current
      AssetsCash
      & Cash Equivalents
                      
                      $
                      1,217
                      
                      
                      $
                      1,794Prepaid
      Expenses & Other
                      
                      
                      200
                      
                      
                      
                      1,100Total
      Current Assets
                      
                      
                      1,417
                      
                      
                      
                      2,894Equipment
      & Furniture, at Cost,Less
      Accumulated Depreciation of $255,221and
      $254,856, respectively
                      
                      
                      –
                      
                      
                      
                      –TOTAL
      ASSETS
                      
                      $
                      1,417
                      
                      
                      $
                      2,894LIABILITIES
      & STOCKHOLDERS’
      EQUITYCurrent
      LiabilitiesRelated
      Party Consulting Fees Payable
                      
                      $
                      –
                      
                      
                      $
                      –Accounts
      Payable
                      
                      
                      22,408
                      
                      
                      
                      6,665Accrued
      Interest
                      
                      
                      37,395
                      
                      
                      
                      34,351Related
      Party Royalty Payable
                      
                      
                      123,333
                      
                      
                      
                      113,333Related
      Party Note Payable
                      
                      
                      187,385
                      
                      
                      
                      187,385Note
      Payable
                      
                      
                      21,509
                      
                      
                      
                      21,509Preferred
      Stock Dividends Payable
                      
                      
                      58,635
                      
                      
                      
                      56,743Current
      Portion of Long-Term Debt
                      
                      
                      160,000
                      
                      
                      
                      160,000Total
      Current Liabilities
                      
                      
                      610,665
                      
                      
                      
                      579,986Long-Term
      Convertible Promissory Note
                      
                      
                      72,633
                      
                      
                      
                      72,633Total
      Liabilities
                      
                      
                      683,298
                      
                      
                      
                      652,619Minority
      Interest
                      
                      
                      (297,093
                      )
                      
                      
                      (291,211
                      )Stockholders’
      Equity (Deficit)Preferred
      Stock, 10,000,000 shares authorized; Series A cumulativeconvertible
      preferred stock, 8% cumulative, $4.50 par value,1,000,000
      shares designated, 21,016 shares outstanding (aggregateliquidation
      preference of $151,316)
                      
                      
                      94,573
                      
                      
                      
                      94,573Common
      Stock, $.001 par value: 40,000,000 shares authorized,18,629,493
      shares outstanding
                      
                      
                      18,629
                      
                      
                      
                      18,629Additional
      Paid-in Capital
                      
                      
                      8,571,249
                      
                      
                      
                      8,571,249Accumulated
      Deficit
                      
                      
                      (9,072,073
                      )
                      
                      
                      (9,042,965
                      )Total
      Stockholders’ Equity (Deficit)
                      
                      
                      (387,622
                      )
                      
                      
                      (358,514
                      )TOTAL
      LIABILITIES &  STOCKHOLDERS’ EQUITY
                      
                      $
                      1,417
                      
                      
                      $
                      2,894
  The
accompanying notes are an integral part of these financial
statements.
 4
 Table of
Contents
 INMEDICA DEVELOPMENT CORPORATION AND
SUBSIDIARY
 CONSOLIDATED STATEMENTS OF
OPERATIONS
 For
      the Three Months EndedMarch
      31,2009
                            
                            
                            2008ROYALTY
      REVENUES
                            
                            $
                            –
                            
                            
                            $
                            –OPERATING
      EXPENSESGeneral
      & Administrative
                            
                            
                            30,056
                            
                            
                            
                            58,973Compensation
      Expense from Stock Options
                            
                            
                            –
                            
                            
                            
                            –Research
      & Development
                            
                            
                            –
                            
                            
                            
                            –Total
      Operating Expense
                            
                            
                            30,056
                            
                            
                            
                            58,973INCOME
      (LOSS) FROM OPERATIONS
                            
                            
                            (30,056
                            )
                            
                            
                            (58,973
                            )OTHER
      INCOME (EXPENSE)Interest
      Income
                            
                            
                            –
                            
                            
                            
                            –Interest
      Expense
                            
                            
                            (3,043
                            )
                            
                            
                            (3,867
                            )Other
      Income
                            
                            
                            –
                            
                            
                            
                            –Total
      Other Income (Expenses), Net
                            
                            
                            (3,043
                            )
                            
                            
                            (3,867
                            )INCOME
      (LOSS) BEFORE MINORITY INTEREST
                            
                            
                            (33,099
                            )
                            
                            
                            (62,840
                            )MINORITY
      INTEREST
                            
                            
                            5,882
                            
                            
                            
                            24,558NET
      INCOME (LOSS)
                            
                            
                            (27,217
                            )
                            
                            
                            (38,282
                            )PREFERRED
      STOCK DIVIDENDS
                            
                            
                            (1,891
                            )
                            
                            
                            (1,892
                            )NET
      INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS
                            
                            $
                            (29,108
                            )
                            
                            $
                            (40,174
                            )NET
      INCOME (LOSS) PER COMMON SHARE (BASIC & DILUTED)
                            
                            $
                            (.00
                            )
                            
                            $
                            (.00
                            )WEIGHTED
      AVERAGE NUMBER OF COMMON SHARES OUTSTANDINGBASIC
                            
                            
                            18,629,493
                            
                            
                            
                            18,629,493DILUTED
                            
                            
                            18,661,017
                            
                            
                            
                            18,661,017
 The
accompanying notes are an integral part of these financial
statements.
 5
 Table
of Contents
 
 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
 CONSOLIDATED
STATEMENTS OF CASH FLOWS
 For
      the Three Months EndedMarch
      31,2009
                        
                        
                        2008CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      Income (Loss)
                        
                        $
                        (27,217
                        )
                        
                        $
                        (38,282
                        )Adjustments
      to reconcile net loss to net cash used inoperating
      activities:Depreciation
      and amortization
                        
                        
                        –
                        
                        
                        
                        91Stock
      option compensation expense
                        
                        
                        –
                        
                        
                        
                        –Interest
      income from amortization or discount on notes receivable
                        
                        
                        –
                        
                        
                        
                        –Minority
      interest in losses
                        
                        
                        (5,882
                        )
                        
                        
                        (24,558
                        )Changes
      in assets and liabilities:Prepaid
      expenses
                        
                        
                        900
                        
                        
                        
                        –Related
      party consulting fees payable
                        
                        
                        –
                        
                        
                        
                        16,000Accounts
      payable
                        
                        
                        18,578
                        
                        
                        
                        15,750Accrued
      interest
                        
                        
                        3,044
                        
                        
                        
                        3,866Related
      party royalty payable
                        
                        
                        10,000
                        
                        
                        
                        12,000Accrued
      payroll and related taxes
                        
                        
                        –
                        
                        
                        
                        –Net
      cash used in operating activities
                        
                        
                        (577
                        )
                        
                        
                        (15,153
                        )CASH
      FLOWS FROM INVESTING ACTIVITIES:Purchase
      of equipment
                        
                        
                        –
                        
                        
                        
                        –Proceeds
      from note receivable
                        
                        
                        –
                        
                        
                        
                        –Net
      cash provided by (used in) investing activities
                        
                        
                        –
                        
                        
                        
                        –CASH
      FLOWS FROM FINANCING ACTIVITIES:Proceeds
      from notes payable
                        
                        
                        –
                        
                        
                        
                        24,416Proceeds
      from related party loans
                        
                        
                        –
                        
                        
                        
                        –Payments
      on notes payable
                        
                        
                        –
                        
                        
                        
                        –Proceeds
      from sale of common stock
                        
                        
                        –
                        
                        
                        
                        –Net
      cash provided by (used in) financing activities
                        
                        
                        –
                        
                        
                        
                        24,416NET
      INCREASE IN CASH
                        
                        
                        (577
                        )
                        
                        
                        9,263CASH
      AT BEGINNING OF THE YEAR
                        
                        
                        1,794
                        
                        
                        
                        2,706CASH
      AT END OF THE YEAR
                        
                        $
                        1,217
                        
                        
                        $
                        11,969SUPPLEMENTAL
      DISCLOSURE OF CASH FLOWCash
      paid during the year for interest
                        
                        $
                        3,043
                        
                        
                        $
                        3,861Cash
      paid during the year for income taxes
                        
                        $
                        –
                        
                        
                        $
                        –
 The
accompanying notes are an integral part of these financial
statements.
 6
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 Notes to Consolidated Financial
Statements (Unaudited)
  NOTE 1 –
BASIS  OF PRESENTATION
  The
accompanying unaudited consolidated financials statements of InMedica
Development Corporation and its majority owned subsidiary, MicroCor, Inc.
(collectively the Company) have been prepared on a going concern basis which
contemplates the realization of assets and satisfaction of liabilities that
might be necessary should the Company be unable to continue as a going
concern.  The Company generated a net loss of $27,217 and $38,282 for
the three month periods ended March 31, 2009 and 2008, respectively, and
negative cash flows from operations of $577 and $15,153 for the three month
periods ended March 31, 2009 and 2008, respectively.  As of March 31,
2009, the Company had an accumulated deficit of $9,072,073.  At March 31,
2009, the Company had a stockholders’ deficit of
$387,622.  These conditions raise substantial doubt as to the
Company’s ability to continue as a going concern.  The Company’s
continued existence is dependent upon its ability to execute its operating plan
and to obtain additional debt or equity financing.  There can be no
assurance that the necessary debt or equity financing will be available, or will
be available on terms acceptable to the Company.
  The
accompanying consolidated financial statements of the Company are unaudited.
However, in management’s opinion, all adjustments, consisting only of normal
recurring adjustments necessary for fair presentation of results for the interim
periods shown, have been made. Results for interim periods are not necessarily
indicative of those to be expected for the full year.  These
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements and notes to consolidated financial statements
included in the Company’s annual report on form 10-K for the year ended December
31, 2008.
  NOTE 2 –
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Principles of
Consolidation
  The
consolidated financial statements include the accounts of InMedica and
MicroCor.  All material inter-company accounts and transactions have
been eliminated.
 
 Use of Estimates
  The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those
estimates.
 
 Patents
 
 The
Company has four patents covering various aspects of its hematocrit technology
which expire from 2007 to 2013.
 7
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 Notes to Consolidated Financial
Statements (Unaudited)
   NOTE 2 –
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued) Research
and Development
  Research
and development costs are expensed as incurred.
 
 Net Loss Per Common
Share
  Basic net
loss per common share is computed by dividing net loss by the weighted average
number of common shares outstanding during the year.  Diluted net loss
per common share (“Diluted EPS”)
reflects the potential dilution that could occur if stock options or other
common stock equivalents were exercised or converted into common
stock.  At March 31, 2009 and December 31, 2008, respectively, there
were 31,524 and 31,524 potentially dilutive common stock
equivalents.  The computation of Diluted EPS does not assume exercise
or conversion of securities that would have an anti-dilutive effect on net loss
per common share.
  NOTE 3 – PREFERRED
STOCK
  The
Company is authorized to issue 10,000,000 shares of preferred
stock.  The Company’s board of directors designated 1,000,000 shares
of this preferred stock as Series A Cumulative Convertible Preferred Stock
(“Series A Preferred”) with a par value of $4.50 per share.  Holders
of the Series A Preferred receive annual cumulative dividends of eight percent,
payable quarterly, which dividends are required to be fully paid or set aside
before any other dividend on any class or series of stock of the Company is
paid.  As of March 31, 2009, cumulative preferred stock
dividends are due and payable in the amount of $58,635.  Holders
of the Series A Preferred receive no voting rights but do receive a liquidation
preference of $4.50 per share, plus accrued and unpaid
dividends.  Series A Preferred stockholders have the right to convert
each share of Series A Preferred to the Company’s common stock at a rate of 1.5
common shares to 1 preferred share.
  On
January 30, 2009, the Company entered into an agreement with MicroCor, its
subsidiary (the “MicroCor Agreement”).  The MicroCor Agreement
provides for the Company to create a Series B class of preferred stock, without
dividend or voting rights (the “Series B Preferred”), which will receive 100% of
any future benefit from the sale, spin-off, merger or liquidation of MicroCor or
the commercialization of its hematocrit technology.  The shares of the
Series B Preferred will be distributed as a dividend, subject to compliance with
federal and state securities laws and regulations, to the Company’s common
stockholders, as of January 30, 2009.  The creation of the Series B
Preferred will prevent any holder of the Company’s common stock after January
30, 2009 from sharing in any future benefit of or to MicroCor through the
expiration date of January 30, 2011.
 8
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 Notes to Consolidated Financial
Statements (Unaudited)
 NOTE 4 – EARNINGS
PER SHARE
  The
following data show the amounts used in computing earnings per share and the
effect on income and the weighted average number of shares of dilutive potential
common stock:
 
 For
      the Quarters EndedMarch 31,2009
                                
                                
                                2008Net
      Income (Loss)
                                
                                $
                                29,108
                                
                                
                                $
                                40,174Less:
      preferred dividends
                                
                                
                                (1,891
                                )
                                
                                
                                (1,891
                                )Income
      (Loss) available to common stockholders used in basic EPS
                                
                                $
                                27,217
                                
                                
                                $
                                38,283Convertible
      preferred stock
                                
                                
                                1,891
                                
                                
                                
                                1,891Convertible
      notes payable
                                
                                
                                –
                                
                                
                                
                                –Income
      (Loss) available to common stockholders after assumedconversion
      of dilutive securities
                                
                                $
                                29,108
                                
                                
                                $
                                40,174Weighted
      average number of common shares used in basic EPS
                                
                                
                                18,629,493
                                
                                
                                
                                18,629,493Effect
      of dilutive securities:Convertible
      preferred stock
                                
                                
                                31,524
                                
                                
                                
                                31,524Convertible
      notes payable
                                
                                
                                –
                                
                                
                                
                                –Options
                                
                                
                                –
                                
                                
                                
                                –Weighted
      average number of common shares and dilutive potentialcommon
      stock used in diluted EPS
                                
                                
                                18,661,017
                                
                                
                                
                                18,661,017
 9
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 Item
      2.
                          Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations.
 Overview
 
 The
following is a discussion of the financial condition of the Company as of March
31, 2009 and December 31, 2008, and results of operations of the Company as of
and for the periods ended March 31, 2009 and 2008.  This discussion
should be read in conjunction with the Financial Statements of the Company and
the related notes included in the Company’s Annual Report on Form 10-K for
fiscal year ended December 31, 2008.
 General
  InMedica
Development Corporation (“InMedica” or the “Company”) was incorporated as a Utah
corporation on June 16, 1983. In 1985, the Company acquired MicroCor, Inc., a
Utah corporation (“MicroCor”), engaged in the development of certain medical
technology products. During 2008, MicroCor, a 57% owned subsidiary of the
Company, continued to engage in research and development on MicroCor’s
hematocrit technology (a method for measuring hematocrit non-invasively (without
drawing blood)) pursuant to the Joint Development Agreement (the “Agreement”)
with Wescor, Inc. (“Wescor”). Wescor assumed day-to-day management of MicroCor
as of September 7, 2004; however, since December 30, 2008, the day-to-day
management was transferred to three of MicroCor’s directors: Larry Clark, Ralph
Henson and Richard Bruggeman.
  On December 8,
2008, the Company entered into a stock purchase option agreement with SNG
Consulting, LLC, an Arizona limited liability company (“SNG”). The agreement
with SNG is hereinafter referred to as (the “SNG Agreement”). Pursuant to the
terms of the SNG Agreement, the Company granted to SNG a one-year option to
purchase up to 5,000,000 restricted shares of Company’s common stock at a
purchase price of $0.01 per share (the “SNG Option”). The SNG Agreement is
transferable by SNG. As consideration for the SNG Agreement, SNG transferred to
the Company 100% ownership of ValuMobile, LLC, a Nevada limited liability
company (“ValuMobile”). ValuMobile was newly formed at the time the SNG
Agreement was entered into by the Company. The SNG Agreement further provides
that SNG and any of its affiliates shall not collectively acquire more than 88%
of the outstanding common stock of the Company until such time as the Company or
ValuMobile has been funded with at least $1,500,000. The SNG Option expires on
December 31, 2009. The sole member of SNG is Ashley Conquest, the daughter of
Ronald Conquest. Mr. Conquest is the new Chairman of the Board and Chief
Executive Officer of the Company (see, “Appointment of New Directors and Officers”
below). Ashley Conquest and Ronald Conquest serve as the co-managers of
ValuMobile.
 10
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 On December 8,
2008, the Company entered into a stock purchase option agreement with Law
Investments CR, S.A., a Costa Rica corporation (“LI”). The agreement with LI is
hereinafter referred to as (the “LI Agreement”). Pursuant to the terms of the LI
Agreement, the Company granted to LI a one-year option to purchase up to
15,000,000 restricted shares of the Company’s common stock at a purchase price
of $0.0075 per share (the “LI Option”). The LI Agreement is transferable by LI.
The LI Agreement provides that the first $75,000 received from the purchase of
Company’s common stock pursuant to the LI Agreement shall be distributed to
Company’s wholly-owned subsidiary, ValuMobile, as a contribution to capital. The
LI Agreement further provides that LI and any of its affiliates shall not
collectively acquire more than 88% of the outstanding common stock of the
Company until such time as the Company or ValuMobile has been funded with at
least $1,500,000. The LI Option expires on December 31, 2009. Ronald Conquest,
who is the new Chairman of the Board and Chief Executive Officer of the Company
(see, “Appointment of New Directors and
Officers” below), is a director and President of LI.
 Prior Plan of
Operation
 During
the 12 months beginning January 2008, the Company’s plan of operation was to
continue to work cooperatively with MicroCor and Wescor in the development of
the Company’s portable hematocrit device.  However, Wescor advised the
Company that its parent corporation was interested in shifting Wescor’s
resources previously dedicated to the research and development of the hematocrit
technology to other projects.  As a result, Wescor ceased all research
and development efforts on the hematocrit technology.  During 2008,
the Company funded administrative operations with the proceeds of minimum
royalty payments from MicroCor and from loans from the Company’s officers and
directors.Wescor,
in the past, has loaned MicroCor sufficient funds to enable MicroCor to pay
one-half of the minimum royalty.  These minimum payments to the
Company from MicroCor have ceased.  Payment of the balance of the
minimum royalty was deferred by the Company.
  Agreement
with MicroCor, Inc.
  On
January 30, 2009, the Company entered into an agreement with MicroCor, LI
and SNG (the “MicroCor
Agreement”). In the
MicroCor Agreement, the parties agreed that the Company, LI, and SNG will vote
their respective ownership interest in MicroCor, if any, for the election of
Larry E. Clark, Ralph Henson, and Richard Bruggeman, the three former Directors
of Company (see, “Appointment of New Directors and
Officers” below), as Directors of MicroCor.  The
MicroCor Agreement also provides for the Company to create a class of preferred
stock, without dividend or voting rights, which will receive 100% of any future
benefit from the sale, spin off, merger or liquidation of MicroCor or the
commercialization of its hematocrit technology (the “Series B Preferred
Stock”).  The shares of the Series B Preferred Stock will be
distributed as a dividend, subject to compliance with federal and state
securities laws and regulations, to the Company’s common stockholders, as of the
record date of January 30, 2009.  The MicroCor Agreement also provides
that the MicroCor Board of Directors shall have sole discretion to reach
agreements and settlements with creditors and shareholders of MicroCor,
including the Company, without the consent of the Company’s Board of Directors
as then constituted.  These settlements and agreements may be in the
best interest of MicroCor and the holders of the Series B Preferred Stock, and
not necessarily the Company.  The term of the MicroCor Agreement and
the Series B Preferred Stock is the later of:  (i) two years
commencing on January 30, 2009; (ii) the resolution of the MicroCor Board to
abandon further development of the hematocrit technology; or (iii) the spin off,
merger or liquidation of MicroCor or its hematocrit
technology.
 11
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 The creation of the Series
B Preferred Stock, as discussed above, will modify the rights of those who
become holders of the Company’s common stock after January 30, 2009.  All
financial benefits from MicroCor’s hematocrit technology, if any, will be
distributed to the holders of the Series B Preferred Stock after payment of all
MicroCor’s debts and no MicroCor assets will be distributed to the Company’s
common stockholders.
  Appointment
of New Directors and Officers
 Effective
January 30, 2009, Larry E. Clark, Ralph Henson and Richard Bruggeman resigned
Directors of the Company.  Further, Mr. Clark resigned as Chairman of
the Company, Mr. Henson resigned as President and Chief Executive Officer of the
Company, and Mr. Bruggeman resigned as Secretary/Treasurer and Chief Financial
Officer of the Company, all effective January 30, 2009.  There were no
disagreements between Mr. Clark, Mr. Henson, Mr. Bruggeman and the
Company.
 Effective
January 30, 2009, Ronald Conquest, Wayne R. Myers, and Christopher R. Miller
were appointed as Directors of the Company.  Additionally, Mr.
Conquest was appointed as Chairman and Principal Executive Officer, Mr. Myers
was appointed as President and Principal Operating Officer, and Mr. Miller was
appointed as Secretary/Treasurer and Principal Financial
Officer.  There are no family relationships between
Messrs.  Conquest, Myers and Miller.
  With
the resignation of the Company’s three Directors and officers and the
appointment of three new Directors and officers, control of the
Company has changed.
  Since
January 30, 2009, the Company’s new management team has been investigating
new areas of business and sources of funding for the Company.  See, “Subsequent Event”
below.
 Results of
Operations
  The
Company had an accumulated deficit of ($9,072,073) as of March 31,
2009.  No revenues from operations were received in 2008 and
2007.  The Company had a net loss from operations of ($30,056) for the
quarter ended March 31, 2009, compared to a net loss from operations of
($58,973) for the quarter ended March 31, 2008.  The decrease in net
loss from operations resulted primarily from no officer salaries being accrued
in the 2009 quarter.
 12
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 Liquidity and
Capital Resources
  During
2008, the minimum royalty payments and loans from the Company’s officers and
directors provided minimum operating capital to the Company.  These
royalty payments and loans ended in 2008.
 
 The
Company will need to engage in fund raising during 2009 in order to meet
future cash needs.
  ValuMobile
Operations
 Since
January 30, 2009, the ability of the Company to commence operations in its new
ValuMobile subsidiary has been hampered by the recent economic recession. The
Company’s future operations in its ValuMobile subsidiary will be dependent on
securing funding.  At the present time the Company has entered into no
agreement or understanding to obtain any funding.
  Subsequent
Events
  SNG
Option Cancelled
 
 Effective
April 10, 2009, the Company and SNG agreed to rescind and cancel the transaction
in which the SNG Option was granted, with no shares being issued under such
option.  The Company assigned its 100% interest in ValuMobile to SNG
effective as of April 10, 2009.
 Wind Sail Receptor, Inc.
License
  On April
17, 2009, the Company entered into a license agreement (the “License”) with
Wind Sail Receptor, Inc. of Boulder City, Nevada (“WSR”), pursuant to which the
Company was granted the exclusive license to sell WSR’s wind sail receptor
blades of 15 feet in length or less in the United States, Canada and the United
Kingdom.  Under the License, the Company must acquire 100 blades from
WSR during the year after WSR is able to manufacture the
receptors.  WSR is hopeful of commencing manufacture of the blades in
2009.  The Company will market WSR’s wind receptor blades through its new
division called WindGen Energy.
 13
 Table of
Contents
 INMEDICA DEVELOPMENT
CORPORATION


Item
      3.
                                            Quantitative and Qualitative
      Disclosures About Market
Risk.
 Not
applicable.
 Item
      4T.
                                      Controls and
      Procedures.
 Management
is responsible for establishing and maintaining adequate internal control over
financial reporting for the small business issuer.  The Company’s
Chief Executive Officer and Chief Financial Officer have concluded, based on an
evaluation required by paragraph (b) of Section 240.13a-15 or 240.15d-15 of the
Rules of the Securities Exchange Act of 1934 (the “Exchange Act”),
conducted as of the end of the period covered by this Quarterly Report on Form
10-Q, that the Company’s disclosure controls and procedures (as defined in
Exchange Act Rules 13a–15(e) or 240.15d-15(e)) have functioned
effectively.   For purposes of this Item, the term “disclosure controls and
procedures” means
controls and other procedures of the Company that are designed to ensure that
information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act (15 U.S.C. 78a et seq.) is recorded,
processed, summarized and reported, within the time periods specified in the
Commission’s rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the issuer’s
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.
 There
have been no changes in the Company’s internal control over financial reporting
identified in connection with the evaluation required by paragraph (d) of
Section 240.13a-15 or 240.15d-15 of the Rules of the Exchange Act, that occurred
during the Company’s last fiscal quarter that have materially affected, or is
reasonably likely to materially affect, the Company’s internal control over
financial reporting.  There
was, however, a change in the Company’s internal control over financial
reporting on January 30, 2009, as a result of the Company’s officers and
Directors resigning on that date and new officers and Directors being appointed.
At this time the Company does not believe this change in management has
materially affected the effectiveness of the Company’s internal control over
financial reporting.  (See “Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations -- Appointment of New Directors and Officers” above.)
 14
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION


PART
      II.
                  OTHER
      INFORMATION
 Item
      1.
                Legal
      Proceedings.  
None.
  Item
      1A.
                  Risk
      Factors.   Not
applicable.
 Item
      2.
                Unregistered Sales of Equity
      Securities and Use of
    Proceeds.   None.
 
 Item
      3.
                Defaults Upon Senior
      Securities.None.
 
 Item
      4.
                Submission of Matters to a Vote
      of Security Holders.None.
 
 Item
      5.
                Other Information.None.
 15
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
 Item
      6.
                Exhibits


Exhibit
    No.
                                                                      
                                                                      Description10.1a
                                                                      
                                                                      Option to
      Purchase Common Stock between Synergistic Equities Ltd. and Chi Lin
      Technologies Co., Ltd., dated September 10, 2008
      (1)10.1b
                                                                      
                                                                      Proxy
      dated September 10, 2008 (2)10.2
                                                                      
                                                                      Stock
      Purchase Option Agreement between Registrant and SNG Consulting, LLC,
      dated December 8, 2008 (3)10.3
                                                                      
                                                                      Stock
      Purchase Option Agreement between Registrant and Law Investments CR, S.A.,
      dated December 8, 2008 (4)10.4
                                                                      
                                                                      Agreement
      between InMedica Development Corporation, MicroCor, Inc., Law Investments
      CR, S.A., and SNG Consulting, LLC, dated January 30, 2009
    (5)10.5
                                                                      
                                                                      Exclusive
      License Agreement between InMedica Development Corporation and Wind Sail
      Receptor, Inc. dated April 17, 2009 (6)31.1
                                                                      
                                                                      Certification
      by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
      Act *31.2
                                                                      
                                                                      Certification
      by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
      Act *32.1
                                                                      
                                                                      Certification
      by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted
      Pursuant to Section 906 of the Sarbanes-Oxley Act *32.2
                                                                      
                                                                      Certification
      by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted
      Pursuant to Section 906 of the Sarbanes-Oxley Act
  *
  *
                    Filed
      herewith.
 (1)
                    Incorporated by
      reference to Exhibit 2.4 of the Current Report on Form 8-K filed by the
      Company on February 9, 2009.
 (2)
                      Incorporated by
      reference to Exhibit 99.2 of the Form 10-Q for the Quarter Ended September
      30, 2008 filed by the Company on November 14,
  2008.
 (3)
                      Incorporated by
      reference to Exhibit 2.3 of the Current Report on Form 8-K filed by the
      Company on February 9, 2009.
 (4)
                        Incorporated by
      reference to Exhibit 2.2 of the Current Report on Form 8-K filed by the
      Company on February 9, 2009.
 (5)
                          Incorporated by
      reference to Exhibit 2.1 of the Current Report on Form 8-K filed by the
      Company on February 9,
2009.
 (6)
                    Incorporated by
      reference to Exhibit 10.1 of the Current Report on Form 8-K filed by the
      Company on April 23,
2009.
 16
 Table of
Contents
  INMEDICA DEVELOPMENT
CORPORATION
   Signatures
 
 Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.


INMEDICA
      DEVELOPMENT CORPORATIONDated:   May 20,
    2009
                                          By:
                                          /s/ 
      Ronald ConquestRonald
      Conquest
                                            Chairman of the
      Board
                                            and
      Chief Executive Officer
                                            (PrincipalExecutive
      Officer)
 Dated:   May
      20, 2009
                                                By:
                                                /s/ 
      Christopher R. MillerChristopher
      R. Miller
                                                  Secretary/Treasurer,
                                                      Chief Financial Officer and Director
                                                      (Principal
      Accounting Officer)
  17