U.S. SECURITIES AND EXCHANGE COMMISSION


                             Washington, D.C. 20549


                                  Form 10 - QSB


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

                  For the Quarterly Period Ended June 30, 2001


                           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 Identification
 incorporation or organization)                               Number)

                   825 N. 300 West, 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 August 9, 2001 was 15,984,613 shares.

                                       1
<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET



                      ASSETS
                      ------


                                      As of June
                                       30, 2001
                                     -----------
                                     (Unaudited)

CURRENT ASSETS:
   Cash                              $   153,547
   Prepaid expenses                        7,007
                                     -----------

        Total current assets             160,554

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $252,951                   39





OTHER ASSETS                               2,196
                                    ------------


        Total assets                $    162,789
                                    ============


            See notes to condensed consolidated financial statements.

                                       2
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED BALANCE SHEET(CONTINUED)


                      LIABILITIES AND STOCKHOLDERS' DEFICIT

                                       As of June 30,
                                            2001
                                        -----------
                                        (Unaudited)
CURRENT LIABILITIES:
   Related party notes payable
     and accrued interest                   152,799
   Accounts payable                           5,900
   Note payable and accrued interest          1,600
   Preferred stock dividends payable         12,597
   Accrued payroll                              792
                                        -----------

        Total current liabilities           173,688
                                        -----------

MINORITY INTEREST                           139,099
                                        -----------

STOCKHOLDERS' DEFICIT:
   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           (550,000)
   Additional paid-in capital             8,079,247
   Accumulated deficit                   (7,789,803)
                                        -----------

        Total stockholders'
         deficit                           (149,998)
                                        -----------
        Total liabilities and
         stockholders' deficit          $   162,789
                                        ===========


            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                           For the Three                  For the Six
                                           Months Ended                   Months Ended
                                             June 30,                        June 30,
                                  ----------------------------    ----------------------------
                                       2001           2000            2001           2000
                                  ------------    ------------    ------------    ------------
                                           (Unaudited)                    (Unaudited)
<S>                               <C>             <C>             <C>             <C>
ROYALTY REVENUES                  $       --      $     31,200    $        640    $     31,200
                                  ------------    ------------    ------------    ------------

OPERATING EXPENSES:
  General and
   administrative                      181,574          46,104         241,600         107,514
  Research and
   development                           2,430          15,762           7,664          19,823
                                  ------------    ------------    ------------    ------------
  Total operating expenses             184,004          61,866         249,264         127,337
                                  ------------    ------------    ------------    ------------


LOSS FROM OPERATIONS                  (184,004)        (30,666)       (248,624)        (96,137)
                                  ------------    ------------    ------------    ------------
OTHER INCOME (EXPENSE):
  Interest income                            4               6               7              10
  Interest expense                      (6,764)         (4,074)        (17,126)         (8,119)
                                  ------------    ------------    ------------    ------------
  Total other expense                   (6,760)         (4,068)        (17,119)         (8,109)
                                  ------------    ------------    ------------    ------------


  Loss before minority interest       (190,764)        (34,734)       (265,743)       (104,246)

  Minority interest                      7,056            --             7,056            --
                                  ------------    ------------    ------------    ------------

  Net Loss                            (183,708)        (34,734)       (258,687)       (104,246)

  Preferred stock dividends             (1,892)         (2,282)         (3,783)         (4,564)
                                  ------------    ------------    ------------    ------------

  Net Loss applicable to
    Common stockholders               (185,600)        (37,016)       (262,470)       (108,810)

  Net loss per common share
    (basic and diluted)           $       (.01)   $       (.00)   $       (.02)   $       (.01)
                                  ============    ============    ============    ============
  Weighted average number
     of common shares
     outstanding                    13,124,963       8,749,384      10,998,002       8,737,566
                                  ============    ============    ============    ============
</TABLE>

            See notes to condensed consolidated financial statements.

                                       4
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                           INCREASE (DECREASE) IN CASH

                                                For the Six Months Ended
                                                       June 30,
                                                    2001         2000
                                                 ---------    ---------
                                                       (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                       $(258,687)   $(104,246)
  Adjustments to reconcile net
    loss to net cash used in
    operating activities-
      Depreciation                                      32          304
      Issuance of stock for consulting fees        105,450         --
      Minority interest                             (7,056)        --
      Change in assets and liabilities-
          Decrease in royalties receivable            --         57,120
          Decrease in prepaid expenses               9,000        9,000
          Increase in consulting fees payable
           to related party                           --         20,000
          Increase (decrease)in accounts
           payable                                 (59,558)      16,931
          Decrease in accrued payroll               (6,983)        (164)
          Decrease in notes payable & interest     (13,210)      (1,462)
                                                 ---------    ---------

          Net cash used in
           operating activities                   (231,012)      (2,517)
                                                 ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Sale of InMedica common stock                     225,000       30,000
 Sale of MicroCor common stock                     225,000         --
 Proceeds from borrowing on notes payable
    and notes payable to related parties            58,000       27,137
 Payments on related-party notes
    payable and interest                          (132,537)        --
                                                 ---------    ---------
       Net cash provided by
         financing activities                      375,463       57,137
                                                 ---------    ---------

NET INCREASE IN CASH                               144,451       54,620
CASH AT BEGINNING OF THE PERIOD                      9,096         --
                                                 ---------    ---------
CASH AT END OF THE PERIOD                        $ 153,547    $  54,620
                                                 =========    =========

            See notes to condensed consolidated financial statements.

                                       5
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note A-Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the instructions to Form 10-QSB and Item 310b of
Regulation  SB.  Accordingly,  they do not  include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  These  consolidated  statements  include the accounts of
InMedica   Development   Corporation   and  its   subsidiary,   MicroCor,   Inc.
("MicroCor").  All material  intercompany  accounts and  transactions  have been
eliminated.

In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring  adjustments)  considered  necessary for fair  presentation  have been
included.  Operating  results for the three and six-month periods ended June 30,
2001 are not necessarily  indicative of the results that may be expected for the
year  ending  December  31,  2001.  For  further   information,   refer  to  the
consolidated  financial statements included in the Company's Form 10-KSB for the
year ended December 31, 2000.

Royalties  received  from the Johnson and Johnson  agreement  terminated  during
2000. The Company generated a net loss of $183,708 and $258,687 during the three
and six month  periods ended June 30, 2001,  respectively.  As of June 30, 2001,
the  Company had an  accumulated  deficit of  $7,789,803  and  negative  working
capital of $13,134.  During the  quarter  ended June 30,  2001,  the Company was
funded  primarily from stock sales to Chi Lin Technologies Co. Ltd. and issuance
of stock to  satisfy  accrued  payroll  and  other  liabilities.  The  Company's
continued  existence is dependent upon its ability to achieve a viable operating
plan.

Note B - Significant Events

InMedica  Development   Corporation   ("InMedica"  or  the  "Company")  executed
employment  contracts with its Chief Executive  Officer,  Ralph Henson,  and its
Chief  Financial  Officer,  Richard  Bruggeman,  on April 25, 2001. Mr. Henson's
contract  reaffirms  the  provisions  of  his  prior  contract  (See  8-K of the
Registrant  dated December 1, 1999) except  paragraphs one and two thereof which
are  amended  and  restated  in their  entirety  to  provide  for his full  time
employment  for the period  April 1, 2001  until  March 31,  2003.  Compensation
payable  for his  services  during  the  period is $7,000  per month  during the

                                       6
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

remainder  of 2001 and  $8,000  per  month  for the  balance  of the term of the
contract.  Mr.  Henson is to continue as a member of the Board of  Directors  of
InMedica. Mr. Henson was also separately granted the right to earn a finders fee
of up to $15,000 for raising up to $1,000,000 for the Company.  The fee is to be
paid in restricted  common stock of the Company valued at $.12 per share,  for a
maximum of 125,000 shares. Mr.  Bruggeman's  contract provides for his part time
employment  as the Chief  Financial  Officer of the  Company  from April 1, 2001
until March 31, 2003. He has the option to increase the  employment to full time
if warranted by the Company's  business,  at a  compensation  to be  negotiated.
Compensation  under the contract is $3,500 per month beginning April 1, 2001 for
the balance of the year 2001 and  thereafter  $4,000 per month for the remaining
term of the contract.

Settlement of Loans and Other Payables. The Company also executed two promissory
notes dated April 26, 2001,  payable to its Chairman,  Larry E. Clark. The first
note  documents  a series of  existing  loans from Mr.  Clark to the  Company of
$262,250  principal  and  $26,899  accrued  interest.  The  note is due in three
payments as follows: on or before May 31, 2001, $150,000,  on or before July 15,
2001,  $75,000 and the balance on or before  October 15,  2001.  The second note
documents an additional loan from Mr. Clark to the Company of $10,000  principal
and $1,332 accrued interest.  The note is due in two payments as follows:  on or
before May 31, 2001, $5,000 and the balance on or before July 15, 2001.  Accrued
interest is included in the notes  through  May 31,  2001.  Thereafter  interest
accrues at 10% per annum. As of June 30, 2001, Mr. Clark was owed $139,150 under
the note  agreements.  Effective  April 25, 2001, the Company paid Mr. Clark for
accrued  consulting  fees and accrued  interest  by issuing to his family  trust
1,219,025  restricted  common  shares of  InMedica in  satisfaction  of $123,992
consulting  fees payable and $22,291  accrued  interest on the fees. The Company
also paid Mr.  Bruggeman  for accrued  consulting  fees and accrued  interest by
issuing to him 464,975  restricted  common shares of InMedica in satisfaction of
$52,000 consulting fees payable and $3,797 interest.  Shares were issued at $.12
per share.  The  estimated  fair value of the shares issued to Mr. Clark and Mr.
Bruggeman  on April 25,  2001 was $.17 per share and  accordingly,  the  Company
recorded additional compensation expense of $84,200.

Stock Purchase Agreement and Development, Licensing and Manufacturing Agreement.
On May 10,  2001  the  Company  entered  into a  Stock  Purchase  Agreement  and
Development,  Licensing and Manufacturing  Agreement with Chi Lin Technology Co.
Ltd.  ("Chi  Lin")of  the  Republic  of China  (Taiwan).  Pursuant  to the Stock
Purchase Agreement, the Company issued 5,328,204 shares of its restricted common
stock to Chi Lin and caused its subsidiary,  MicroCor, Inc. ("MicroCor")to issue

                                       7
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

29,420  shares  of its  restricted  common  stock  to Chi Lin.  Following  these
transactions,  Chi Lin owned 33.3% of InMedica and 20% of MicorCor.  The Company
has also issued  125,000  restricted  shares of common  stock to Ralph Henson in
connection  with this  transaction  as  payment  of a finders  fee and  recorded
expense  of  $21,250.  In  consideration  of the stock  issuances,  Chi Lin gave
InMedica its Promissory Notes committing 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 1, 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 June 30, 2001,  InMedica and MircoCor had each
received  payments of $225,000  from Chi Lin.  The  remaining  aggregate  due to
InMedica  and  MicroCor  of  $550,000  is  reflected  as  a  stock  subscription
receivable in the accompanying  consolidated  financial statements.  Chi Lin was
also granted anti-dilution rights permitting it to purchase additional shares to
maintain  its one  third  percentage  ownership  in the  event  InMedica  issued
additional  shares.  Chi Lin also has the right to receive  additional shares to
maintain  its  percentage  ownership  in the event any  outstanding  options are
exercised.  The  agreement  also provides that Chi Lin has the right to nominate
two of five  directors on the board of directors.  InMedica may not increase the
size of the board to more than five  without the prior  consent of Chi Lin.  The
Company  also   simultaneously   entered  into  a  Development,   Licensing  and
Manufacturing  Agreement with Chi Lin pursuant to which InMedica granted Chi Lin
a world-wide license to develop and manufacture products based on the hematocrit
technology.  The  primary  product  to  be  developed  is a  device  capable  of
hematocrit measurement.  The agreement also grants Chi Lin the exclusive license
to distribute the products in Australia,  New Zealand, and the countries of Asia
(excluding Russia and the Middle East). InMedica retained distribution rights in
other areas of the world.

                                       8
<PAGE>

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

Liquidity and Capital Resources
-------------------------------

On May 10, 2001 the Company entered into a Stock Purchase Agreement with Chi Lin
Technology  Co. Ltd. ("Chi Lin")of the Republic of China  (Taiwan).  Pursuant to
the  Stock  Purchase  Agreement,  the  Company  issued  5,328,204  shares of its
restricted  common stock to Chi Lin and caused its  subsidiary,  MicroCor,  Inc.
("MicroCor")to issue 29,420 shares of its restricted common stock to Chi Lin. In
consideration of the stock issuances, Chi Lin gave InMedica its Promissory Notes
committing  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 1, 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.
The Company is dependent  upon receipt of these  payments to continue to operate
and retire  obligations  as they come due. To date all payments have been timely
received.

The Company also executed two promissory notes dated April 26, 2001,  payable to
its  Chairman,  Larry E.  Clark.  The first note  documents a series of existing
loans from Mr. Clark to the Company of $262,250  principal  and $26,899  accrued
interest.  The note is due in three  payments as  follows:  on or before May 31,
2001, $150,000, on or before July 15, 2001, $75,000 and the balance on or before
October 15, 2001. The second note documents an additional loan from Mr. Clark to
the Company of $10,000 principal and $1,332 accrued interest. The note is due in
two payments as follows: on or before May 31, 2001, $5,000 and the balance on or
before July 15, 2001.  Accrued interest is included in the notes through May 31,
2001. Thereafter interest accrues at 10% per annum. To date, all payments on the
notes are current.

Effective April 25, 2001, the Company paid Mr. Clark for accrued consulting fees
and accrued interest by issuing to his family trust 1,219,025  restricted common
shares of  InMedica in  satisfaction  of $123,992  consulting  fees  payable and
$22,291  accrued  interest on the fees. The Company also paid Mr.  Bruggeman for
accrued  consulting  fees  and  accrued  interest  by  issuing  to  him  464,975
restricted common shares of InMedica in satisfaction of $52,000  consulting fees
payable and $3,797 interest. Shares were issued at $.12 per share.

                                       9
<PAGE>

Results of Operations
---------------------

InMedica is dependent upon successful completion of research and development and
manufacturing by Chi Lin Technologies Co. Ltd. and upon successful  marketing of
its hematocrit  device before it may expect to receive revenues from operations.
The net loss of $183,708 for the quarter ended June 30, 2001 compared to $34,734
for the  quarter  ended June 30,  2000  resulted  primarily  from a  substantial
increase in general and  administrative  expenses  incident to the settlement of
obligations of the Company through the issuance of restricted common stock.


                           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:

         None

Item 6.  Exhibits  and reports on Form 8-K:  The Company  filed a report on form
         8-K on May 10, 2001.

Exhibits:None

                                       10
<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


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


                                By: /s/ Richard Bruggeman
                                -------------------------
Date:  August 14, 2001                  Richard Bruggeman, Treasurer


<PAGE>