U.S. SECURITIES AND EXCHANGE COMMISSION


                              Washington, DC 20549


                                  Form 10 - QSB


                   Quarterly Report Under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

                For the Quarterly Period Ended September 30, 2002


                           Commission File No. 0-12968


                        INMEDICA DEVELOPMENT CORPORATION
                        --------------------------------
        (Exact name of small business issuer as specified in its charter)




            Utah                                            87-0397815
-----------------------------                      -----------------------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                        Identification Number)

             825 N. 300 West, Suite N132, Salt Lake City, Utah 84103
                    (Address of principal executive offices)

        Registrant's telephone number including area code (801) 521-9300
       -----------------------------------------------------------------


Check  whether the issuer (1) filed all reports  required to be filed by section
13 or 15(d) of the Exchange  Act of 1934 during the  preceding 12 months (or for
such shorter period that the registrant was required to file such reports),  and
(2) has been subject to such filing requirements for the past 90 days: Yes X No


The number of shares outstanding of the registrant's only class of common stock,
par value $.001 per share, as of October 29, 2002 was 15,984,613 shares.




                                       1

<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET



                                     ASSETS

                                         As of
                                     September 30,
                                          2002
                                     --------------
                                       (Unaudited)

CURRENT ASSETS:
   Cash                             $     69,911
   Securities available for sale           2,196
   Prepaid expenses and other              3,331
   Note Receivable from Chi Lin           50,000
                                    ------------

        Total current assets             125,438

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $253,078                  796
                                    ------------

        Total assets                $    126,234
                                    ============












                 See notes to consolidated financial statements.

                                       2
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED BALANCE SHEET(CONTINUED)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                               As Of
                                           September 30,
                                                2002
                                           -------------
                                            (Unaudited)


CURRENT LIABILITIES:
   Related party consulting fees payable     $   36,000
   Accounts payable                               1,000
   Preferred stock dividend payable               9,457
                                             ----------


        Total current liabilities                46,457
                                             ----------

MINORITY INTEREST                               144,055
                                             ----------


STOCKHOLDERS' EQUITY:
   Preferred stock, 10,000,000
    shares authorized; Series A
    preferred stock, cumulative
    and convertible, $4.50 par
    value, 1,000,000 shares
    designated, 21,016 shares
    outstanding                                 94,573
   Common stock, $.001 par value;
    20,000,000 shares authorized,
    15,984,613 issued and outstanding           15,985

   Stock subscription receivable               (50,000)
   Additional paid-in capital                8,024,247
   Accumulated deficit                      (8,149,083)
                                            ----------

        Total stockholders'
         deficit                               (64,278)
                                            ----------
        Total liabilities and
         stockholders' deficit              $  126,234
                                            ==========


                 See notes to consolidated financial statements.

                                       3
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                  For the Three            For the Nine
                                  Months Ended             Months Ended
                                   September 30,            September 30,
                              ----------------------  -----------------------
                                2002        2001         2002        2001
                              ---------- -----------  ----------- -----------
                                   (Unaudited)              (Unaudited)


TOTAL ROYALTY REVENUES        $      -     $    -     $      -     $     640
                              -----------  ---------- ------------ ---------

OPERATING EXPENSES:
  General and
    administrative                 70,042     65,063      234,387    306,663
  Research and
    development                     5,953      3,055       11,359     10,719
                              -----------  ---------- -----------  ---------

  Total operating expenses         75,995     68,118      245,746    317,382
                              ------------ ---------- ------------ ---------


LOSS FROM OPERATIONS              (75,995)   (68,118)    (245,746)  (316,742)
                              -----------  ---------  -----------  ---------

OTHER INCOME (EXPENSE):
  Other income, net                    32          9          107         16
  Interest expense                   (161)    (1,951)        (563)   (19,077)
                              -----------  ---------  -----------  ---------

  Total other expense, net           (129)    (1,942)        (456)   (19,061)
                              -----------  ---------  -----------  ---------


LOSS BEFORE MINORITY INTEREST     (76,124)   (70,060)    (246,202)  (335,803)

MINORITY INTEREST                  10,894      8,775       31,812     15,831
                              ----------- ----------  ----------- ----------

NET LOSS                          (65,230)   (61,285)    (214,390)  (319,972)

PREFERRED STOCK DIVIDENDS          (1,891)    (1,891)      (5,674)    (5,674)
                              ----------- ----------  ----------- ----------

NET LOSS APPLICABLE TO
  COMMON STOCKHOLDERS             (67,121)   (63,176)    (220,064)  (325,646)

NET LOSS PER COMMON SHARE
(BASIC AND DILUTED)                $  -   $      -    $     (.01) $    (.03)
                                  ======= ==========  =========== ==========

Weighed average number
  of common shares
  outstanding                  15,984,613 15,984,613   15,984,613 12,678,472
                               ========== ==========   ========== ==========

                 See notes to consolidated financial statements.

                                       4
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS



                                           For the Nine Months Ended
                                                 September 30,
                                             2002             2001
                                            -----            -------
                                                  (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net loss                               $  (214,390)    $  (319,972)
  Adjustments to reconcile net
    loss to net cash used in
    operating activities-
      Depreciation and amortization               87              50
      Issuance of stock for
          consulting fees                         -          105,450
      Minority interest in losses            (31,812)        (15,831)
      Change in assets and liabilities-
        Prepaid expenses and other            16,875          13,500
        Related party consulting fee payable  18,000              -
        Accounts payable                      (2,629)        (53,878)
        Accrued payroll                       (4,292)         (6,983)
        Note payable                         (14,000)        (14,810)
                                           ----------      ---------

          Net cash used in
           operating activities             (232,161)       (292,474)
                                           ----------      ---------


CASH FLOWS USED IN INVESTING ACTIVITIES -
  Purchase of equipment and furniture           (884)            -
                                           ----------       ---------











             See notes to consolidated financial statements.

                                       5
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                                             For the Nine Months Ended
                                                   September 30,
                                               2002             2001
                                              ------           -------
                                          (Unaudited)



CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from stock subscription receivable  100,000         300,000
 Proceeds from note receivable from Chi Lin   100,000         300,000
 Proceeds from borrowing on notes payable
    and notes payable to related parties           -           58,000
 Preferred stock dividend                      (3,783)            -
 Payments on related-party notes
    payable and interest                           -         (213,599)
                                            ---------       ---------

       Net cash provided by
         financing activities                 196,217         444,401
                                            ---------       ---------



NET INCREASE (DECREASE)IN CASH                (36,828)        151,927

CASH AT BEGINNING OF THE PERIOD               106,739           9,096
                                            ---------       ---------

CASH AT END OF THE PERIOD                   $  69,911       $ 161,023
                                            =========       =========











                 See notes to consolidated financial statements.

                                       6
<PAGE>



INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1. Basis of Presentation

The  accompanying   unaudited  consolidated  financial  statements  of  InMedica
Development   Corporation   ("InMedica")  and  its  majority  owned  subsidiary,
MicroCor, Inc. ("MicroCor") (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 net losses of $214,390 and
$319,972 for the nine months ended  September  30, 2002 and 2001,  respectively,
and negative  cash flows from  operations  of $232,161 and $292,474 for the nine
month periods ended September 30, 2002 and 2001,  respectively.  As of September
30, 2002, the Company has an accumulated deficit of $8,149,083. At September 30,
2002, the Company had stockholders'  deficit of $64,278.  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.  Management's  operating
plan includes pursuing additional strategic alliances and licensing  agreements,
and if warranted,  preparation for clinical trials required for FDA approval for
any medical  product that might be developed using the  Non-invasive  Hematocrit
Technology.

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 necessary
indicative  of  those  to be  expected  for the full  year.  These  consolidated
financial  statements  should be read in conjunction  with audited  consolidated
financial statements and notes to consolidated  financial statements included in
the Company's annual report on form 10-KSB for the year ended December 31, 2001.

2.       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.

                                       7
<PAGE>

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.

3.       Subsequent Events

On October 2, 2002, InMedica and MicroCor each received payments of $50,000 from
Chi Lin in accordance with the May 10, 2001 Stock Purchase Agreement.

4.       Note Receivable

    In June, 2000, the Company licensed its technology to an unrelated entity in
exchange for a note receivable of $150,000, due June 19, 2001. On June 19, 2001,
the  entity  defaulted  on the note and the  Company  requested  and  received a
secured note receivable from the entity for $165,000 which represents  principle
and accrued  interest as of December 19, 2001. The secured note receivable bears
interest at 10% annually and was due on June 19, 2002. However, the entity again
defaulted  on the note and the  Company is in the process of  extending  the due
date. The note is secured by all tangible and  intangible  assets of the entity.
Because  collectibility  of the note is uncertain,  the note receivable has been
fully reserved in the accompanying consolidated financial statements.























                                       8
<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
         OPERATION

Liquidity and Capital Resources

     For the three and nine month periods ended September 30, 2002 liquidity was
provided by  proceeds  received  as a result of the sale of stock  during  2001.
Pursuant to a stock Purchase Agreement,  InMedica Development Corporation,  (the
"Company")  issued  5,328,204  shares of its restricted  common stock to Chi Lin
Technologies,  Inc.  ("Chi  Lin").  The  Company's  subsidiary,  MicroCor,  Inc.
("MicorCor")  issued an additional  29,420 shares of its restricted common stock
to Chi Lin.  In  consideration  of the stock  issuances,  Chi Lin gave  InMedica
promissory notes to pay InMedica and MicroCor a total of $500,000 each according
to the following  schedule:  $150,000 to each company on or before May 31, 2001,
$75,000 to each company on or before July 1, 2001, $75,000 to each company on or
before  October 31, 2001,  $50,000 to each company on or before January 1, 2002,
$50,000 to each company on or before  April 1, 2002,  $50,000 to each company on
or before July 1, 2002 and $50,000 to each company on or before October 1, 2002.
As of September 30, 2002,  InMedica and MicroCor had each  received  payments of
$450,000 from Chi Lin. The aggregate purchase price of the InMedica and MicroCor
stock was $1,000,000.

The remaining  $50,000 due to InMedica on the  subscription  is reflected in the
consolidated  financial  statements as a $50,000 stock subscription  receivable.
The  remaining  $50,000 due MicroCor is reflected  as a note  receivable  in the
consolidated financial statements.

The  remaining  $100,000  due from Chi Lin is expected to provide  minimum  cash
requirements for Company operations during the next six months.


Results of Operations

     InMedica  incurred net losses during the three and nine month periods ended
September  30,  2002  and  2001.  The  Company  had an  accumulated  deficit  of
$8,149,083  as of  September  30,  2002.  During  the nine month  periods  ended
September 30, 2002 and 2001,  royalty revenue totaled $0 and $640  respectively.
No revenues from  operations  were received during the three month periods ended
September 30, 2002 and 2001. No further  royalty  revenues are expected from the
J&J  Medical,  Inc.  contract.  The net  loss for the nine  month  period  ended
September  30, 2002  decreased to $214,390  compared to the net loss of $319,972
for the same period in 2001,  primarily due to costs incurred in 2001 associated
with issuance of restricted  common stock in satisfaction of accrued  consulting

                                       9
<PAGE>

fees and  accrued  interest.  The net  loss for the  three  month  period  ended
September 30, increased from $61,285 in 2001 to $65,230 in 2002.  Costs, for the
three and nine month  periods  ended  September  30, 2002,  remained  relatively
constant  in  comparison  to costs for the three and nine  month  periods  ended
September 30, 2001.

ITEM 3.     DISCLOSURE CONTROLS AND PROCEDURES

        The Company's Chief Executive  Officer and Chief Financial  Officer have
concluded,  based on an evaluation  conducted within 90 days prior to the filing
date of this  Quarterly  Report on Form  10-QSB  that the  Company's  disclosure
controls and  procedures (as defined in Exchange Act Rules 13a - 14(c) and 15d -
14(c))  have  functioned  effectively  so  as  to  provide  those  officers  the
information necessary to evaluate whether:

     (i) this Quarterly Report on Form 10-QSB contains any untrue statement of a
material fact or omits 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 Quarterly Report on Form
10-QSB, and

     (ii) the financial statements,  and other financial information included in
this Quarterly  Report on Form 10-QSB,  fairly present in all material  respects
the financial condition,  results of operations and cash flows of the Company as
of, and for, the periods presented therein.

     There have been no significant  changes in the Company's  internal controls
or in other factors that could significantly affect internal controls subsequent
to the evaluation date, nor any significant  deficiencies or material weaknesses
in such  controls  requiring  corrective  actions.  As a result,  no  corrective
actions were required or taken.



                                       10
<PAGE>

     PART II - OTHER INFORMATION

Item 1.   Legal Proceedings:
          None

Item 2.   Changes in Securities:
          None

Item 3.   Defaults Upon Senior Securities:
          None

Item 4.   Submission of Matters to a Vote of Security Holders:
          None

Item 5.   Other Information:

         During October,  2002, the Board of Directors of the Company  appointed
Dr.  Mao-Song  Lee to fill the vacancy on the board of  directors of the Company
created in August of 2002 by the resignation of Dr. Ke-shieng Yang.

         Since 2001, Dr. Lee has been employed by Chi Lin Technology Co. Ltd. as
Technical Vice  President.  From 1998 until 2000 he was General  Manager,  Pilot
Plants for Union Chemical Laboratories, Industrial Technology Research Institute
of the Republic of China (Taiwan).  During the period  1994-1997 he was Director
of the Engineering Plastics Division for Union Chemical Laboratories, Industrial
Technology  Research  Institute.  From 1983  until 1991 he was  Director  of the
Polymer Division,  Union Chemical  Laboratories,  Industrial Technology Research
Institute.  He received a B.S. and M.S. from the National Cheng Kung  University
of Taiwan in 1970 and 1972, respectively. He also received a Ph.D. and an M.B.A.
from the National  Tsing Hua  University of Taiwan in 1987 and from the National
Cheng Chi University in 1994, respectively.

Item 6.   Exhibits and reports on Form 8-K:

                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                         FORM 10QSB - SEPTEMBER 30, 2002

EXHIBIT NUMBER             DESCRIPTION
      99               Sarbanes-Oxley Section 906 Certification

         The Company filed form 8-K on October 22, 2002  reporting the dismissal
of  Deloitte  & Touche as its  independent  accountant  and the  appointment  of
Robison Hill & Co. as its independent accountant.



                                       11
<PAGE>



                                   SIGNATURES

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

                                                INMEDICA DEVELOPMENT CORPORATION


                                                /s/ Ralph Henson
                                                -----------------------------
                                                By Ralph Henson, President


                                                /s/ Richard Bruggeman
                                                -----------------------------
Date:  October 31, 2002                         By Richard Bruggeman, Treasurer

                                       12
<PAGE>
                      CERTIFICATION PURSUANT TO SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002

         I, Ralph Henson,certify that:

         1. I have  reviewed  this  quarterly  report on Form 10-QSB of InMedica
Development Corporation.

         2. Based on my knowledge,  this  quarterly  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
quarterly report.

         3. Based on my knowledge, the financial statements, and other financial
information  included in this quarterly  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 quarterly report.

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

         a) designed  such  disclosure  controls and  procedures  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 quarterly report is being prepared;

         b) evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the Evaluation Date); and

         c)  presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

         5. The  registrant's  other  certifying  officers and I have disclosed,
based on our most recent evaluation,  to the registrant's auditors and the audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

         a) all significant  deficiencies in the design or operation of internal

                                       13
<PAGE>

controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors any material weaknesses in internal controls; and

         b) any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls.

         6. The registrant's  other certifying  officers and I have indicated in
this quarterly report whether or not there were significant  changes in internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

DATE: October 31, 2002


/s/ Ralph Henson
-----------------------
Ralph Henson, President


                                       14
<PAGE>

                      CERTIFICATION PURSUANT TO SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002

         I, Richard Bruggeman, certify that:

         1. I have  reviewed  this  quarterly  report on Form 10-QSB of InMedica
Development Corporation.

         2. Based on my knowledge,  this  quarterly  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
quarterly report.

         3. Based on my knowledge, the financial statements, and other financial
information  included in this quarterly  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 quarterly report.

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

         a) designed  such  disclosure  controls and  procedures  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 quarterly report is being prepared;

         b) evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the Evaluation Date); and

         c)  presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

         5. The  registrant's  other  certifying  officers and I have disclosed,
based on our most recent evaluation,  to the registrant's auditors and the audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

         a) all significant  deficiencies in the design or operation of internal

                                       15
<PAGE>

controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors any material weaknesses in internal controls; and

         b) any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls.

         6. The registrant's  other certifying  officers and I have indicated in
this quarterly report whether or not there were significant  changes in internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

DATE: October 31, 2002


/s/ Richard Bruggeman
---------------------
Richard Bruggeman,
 Chief Financial Officer

                                       16