U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10QSB

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

                  For the Quarterly Period Ended March 31, 2005

                           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 of organization)       Identification Number)

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

                         Registrant's telephone number:
                                 (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 past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the 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 May 12, 2005 was 17,413,993 shares.





                                       1
<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET


                              ASSETS
                              ------
                                              As of
                                             March 31,
                                              2005
                                           (Unaudited)
                                           -----------

        CURRENT ASSETS:
           Cash & cash equivalents          $    5,310
           Notes receivable current
             net of unamortized
             discount of $4,312                175,688
           Prepaid expenses and other              200

                                             ----------
                Total current assets           181,198


        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $253,521                 353

                                            ----------


                Total assets                $  181,551
                                            ==========




















            See notes to consolidated financial statements


                                       2
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEET (Continued)

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      -------------------------------------
                                                          As of
                                                         March 31,
                                                           2005
                                                          ------
                                                       (Unaudited)

        CURRENT LIABILITIES:
           Related party consulting fees payable       $    12,000
           Accrued expenses                                  3,412
           Note payable                                    116,687
           Accrued interest                                    429
           Accounts payable                                 30,428
           Preferred stock dividend payable                 28,372
                                                      ------------

                Total current liabilities                  191,328
                                                       -----------

            MINORITY INTEREST                               (6,840)
                                                       -----------

        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 issued and
            outstanding                                     94,573
           Common stock, $.001 par value;
            40,000,000 shares authorized,
            17,413,993 issued and outstanding               17,413
           Additional paid-in capital                    8,165,929
           Accumulated deficit                          (8,280,852)
                                                        ----------

                Total stockholders equity                   (2,937)
                                                        ----------
                Total liabilities and
                 stockholders' equity                   $  181,551
                                                        ==========










            See notes to consolidated financial statements

                                       3
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                               For the Three
                                               Months Ended
                                                 March 31,
                                             2005        2004
                                           --------    --------
                                                (Unaudited)
          TOTAL ROYALTY REVENUES            $   -0-         -0-
                                           --------    --------

          OPERATING EXPENSES:
            General and
              administrative                 61,413      40,810
            Research and
             development                      1,145       3,756
                                           --------    --------
              Total operating expenses       62,558      44,566
                                           --------    --------

          LOSS FROM OPERATIONS              (62,558)    (44,566)
                                           --------    --------

          OTHER INCOME:
            Other income, net                 3,337         -0-
                                           --------    --------
             Total other income, net          3,337         -0-
                                           --------    --------

          LOSS BEFORE MINORITY INTEREST     (59,221)    (44,566)

          MINORITY INTEREST                   5,287       5,430
                                           --------    --------
              NET LOSS                     (53,934)    (39,136)

              PREFERRED STOCK DIVIDENDS     (1,892)     (1,892)
                                           --------    --------

          NET LOSS APPLICABLE TO
           COMMON STOCKHOLDERS             $(55,826) $ (41,028)
                                           ========   =========
          NET LOSS PER COMMON SHARE
            (BASIC AND DILUTED)            $   (.00)  $   (.00)
                                           ========   ========

          Weighted average number
           of common shares outstanding   17,278,949   15,982,993
                                           =========  =========






            See notes to consolidated financial statements.

                                       4
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                    For the Three
                                                     Months Ended
                                                       March 31,
                                                    2005       2004
                                                  --------   --------
                                                     (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                  $ (53,934) $( 39,136)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation and amortization                45         44
           Interest income from amortization
             or discount on notes receivable        (2,297)       -0-
           Minority interest in losses              (5,287)    (5,430)
           Change in assets and liabilities
             Consulting fee payable to
               related party                       (38,000)     6,000
             Accounts payable                       (2,871)    (4,069)
             Accrued interest payable                   50        -0-
             Accrued payroll and related taxes     (32,521)       -0-
                                                  --------   --------
                Net cash used in
                  operating activities            (134,815)   (42,591)
                                                  --------   --------

     CASH FLOWS FROM INVESTING ACTIVITIES:
       Proceeds from note receivable                45,000        -0-
                                                  --------   --------
                       Net cash provided by
                         investing activities       45,000        -0-
                                                  ---------  --------

     CASH FLOWS FROM FINANCING ACTIVITIES:
       Proceeds from notes payable                  20,000     42,772
       Payments on notes payable                    (7,575)       -0-
       Proceeds from sale of common stock           79,100        -0-
                                                    -------  -------
                Net cash provided by
                  financing activities              91,525     42,772
                                                  --------   --------










           See notes to consolidated financial statements.

                                       5
<PAGE>

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

                                                      For the Three
                                                       Months Ended
                                                         March 31,
                                                     2005       2004
                                                   ---------- -------
                                                       (Unaudited)


   NET INCREASE IN CASH                            1,710          181

   CASH AT BEGINNING OF PERIOD                     3,600        1,226
                                                 -------     --------

   CASH AT END OF PERIOD                        $  5,310      $ 1,407
                                                 =======      =======






































          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  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 $62,558 and $44,566 for the three month periods
ended  March 31,  2005 and 2004,  respectively,  and  negative  cash  flows from
operations  of $134,815 and $42,591 for the three month  periods ended March 31,
2005  and  2004,  respectively.  As of  March  31,  2005,  the  Company  had  an
accumulated  deficit  of  $8,280,852.  At March  31,  2005,  the  Company  had a
stockholder's  deficit of $2,937. 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 working
with Wescor to complete  research,  development and, if warranted,  marketing of
its  hematocrit   technology  and/or  pursuing  other  strategic  alliances  and
licensing  agreements such as the current Agreement with Wescor, Inc. See Item 2
- "Management's Discussion and Analysis."

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-KSB for the year ended December 31, 2004.




                                       7
<PAGE>

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.

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.

                    BALANCE OF THIS PAGE INTENTIONALLY BLANK




























                                       8
<PAGE>




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

OVERVIEW.  Since 1989, the Company has engaged in research and  development of a
device  to  measure  hematocrit   non-invasively  the  "Non-Invasive  Hematocrit
Technology"  and/or the "Technology") and fund raising to finance the payment of
research,  development and administrative expenses. Hematocrit is the percentage
of red blood cells in a given volume of human blood.  Research,  development and
administrative  expenses of the Company  relating to the Technology  were funded
during  the  1990's by  borrowing  and by  royalty  revenues  from the sale of a
portable ECG monitor  which  incorporated  Company  technology.  The monitor was
marketed by  Critikon,  Inc.,  then a Johnson and  Johnson  subsidiary.  However
Critikon  discontinued  the  monitor  in 2001 and  InMedica  has not  since  had
revenues from Operations. During 2001 the Company and its subsidiary,  MicroCor,
Inc. sold restricted common stock to Chi Lin Technologies,  Ltd. of the Republic
of China  (Taiwan)  for  $1,000,000  and used the funds to  continue  funding of
research,  development  and  administrative  expenses.  Chi Lin  also  signed  a
development agreement under which it performed or financed the Company's primary
research and development  effort conducted  initially in Taiwan and later in the
United States.  When payments from the stock sale were expended during 2003, the
Company  began  searching  for  additional  funding  and/or a partner to conduct
additional  research and development.  The Company's  officers and Chairman also
agreed to the  accrual of their wages and  consulting  fees  pending  receipt of
funds to pay those obligations. In January 2005, the shareholders of the Company
approved  an  Agreement  with  Wescor  which  provides  additional  funding  for
administrative  expenses  and  provides  for  research  and  development  of the
Hematocrit Technology by Wescor.

PLAN OF OPERATION.  During the 12 months beginning  January,  2005 the Company's
plan of operation is to work  cooperatively  with Wescor in the  development and
possible  demonstration  of the Company's  portable  hematocrit  device to other
companies.   In   connection   with  this  effort,   the  Company  will  require
confidentiality  agreements  from parties to which  disclosure  is made and will
allow such parties to informally  evaluate the  technology in order to determine
their  interest.  During  2005,  Wescor is  expected  to fund the  research  and
development  efforts of MicroCor  pursuant to the Joint  Development  Agreement.


                                       9
<PAGE>

During  2004,  the  Company  borrowed  from  Wescor  in order to meet  operating
expenses and may need to rely on  borrowing  in the future to meet  obligations.
While the Company has in the past borrowed from  affiliates,  such  borrowing is
not  expected  to be  available  in the  future  to meet  obligations  and  fund
continued research and development.  If necessary,  InMedica will look for other
funding sources.

LIQUIDITY AND CAPITAL RESOURCES.

The funds  generated  from the sale of stock in 2001 were the sole source of the
Company's  cash  flow  from  May 10,  2001  until  December  31,  2003  and were
sufficient to meet the Company's  operating  expenses only through  December 31,
2003. During the year 2004 liquidity was generated by borrowings from Wescor and
from  the  proceeds  of the  sale of  MicroCor  stock  to  Wescor  and  sales of
restricted  stock to  members of  management.  The  Company  expects to fund its
administrative  operations during 2005 with funds from installment payments from
Wescor for the  purchase  of the  MicroCor  stock and with  additional  sales of
restricted  common  stock to  Company  insiders  and  other  private  investors.
Research and  development  efforts of Wescor will be  compensated  by additional
issuances of MicroCor stock pursuant to the Joint Development Agreement.

During  the three  months  ended  March 31,  2005  cash flow was  provided  from
installment  payments from Wescor, Inc., a Utah based medical technology company
that agreed to conduct  additional  research and  development  of the  Company's
hematocrit  technology  pursuant to an  agreement  dated  September 7, 2004 (the
"Agreement").  See Form 8-K filed  September 14, 2004.  Among other things,  the
Agreement may result in the disposition of ownership of part or all of the stock
of  MicroCor,  Inc. the  Company's  subsidiary  that owns all of the  hematocrit
patents, business and intellectual property.  However, payments made to InMedica
from the sale of  MicroCor  stock  are  expected  to  provide  funding  of basic
administrative  expenses of the Company during the next 14 months.  If Wescor is
successful  in  completing  the  development,  regulatory  approvals and product
introduction,  the  Company  would also be entitled to a royalty on sales of the
product.



                                       10
<PAGE>

RESULTS OF OPERATIONS.

InMedica  incurred  net losses from  operations  during the three month  periods
ended  March 31,  2005 and 2004.  The  Company  had an  accumulated  deficit  of
$8,280,852 as of March 31, 2005. No revenues from operations are expected in the
foreseeable  future.  The net loss from  operations  for the three month  period
ended March 31, 2005  increased  to $62,558  compared to the net loss of $44,566
for 2004 primarily due to an increase in general and administrative  expenses of
$17,992.  The  increase in general and  administrative  expenses  resulted  from
additional  professional fees incurred in conjunction with a shareholder meeting
held in January 2005.

Item 3:   CONTROLS AND PROCEDURES

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,
conducted as of the end of the period covered by this  Quarterly  Report on Form
10-QSB,  that the Company's  disclosure  controls and  procedures (as defined in
Exchange Act Rules 13a - 15e 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  Securities  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 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 Securities  Exchange Act
of 1934,  that occurred  during the Company's last fiscal quarter (the Company's
fourth  fiscal  quarter in the case of an annual  report)  that have  materially
affected,  or is reasonably likely to materially  affect, the Company's internal
control over financial reporting.




                                       11
<PAGE>




     PART II - OTHER INFORMATION

Item 1. Legal Proceedings: None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:

During  the last  three  years  the  Company  has made  the  following  sales of
unregistered common stock in reliance upon Section 4(2) of the Securities Act of
1933:  5/2/2005,  715,500 shares1 to Chi Lin Technology  Company,  Ltd.; 1/24/05
440,000 shares to Larry E. Clark;  1/19/05 101,000 shares to Richard  Bruggeman;
12/30/04  240,000  shares to Ralph Henson;  10/14/04  400,000 shares to Larry E.
Clark.  The  foregoing  sales were of restricted  securities  and were issued to
officers,  directors and/or principal  shareholders of the Company who purchased
the securities  based upon their  representations  that they were purchasing for
their own account and not for resale.

Item 3. Defaults Upon Senior Securities: None

Item 4.  Submission  of Matters to a Vote of  Security  Holders:

Pursuant to an  Information  Statement  filed with the  Securities  and Exchange
Commission,  the  shareholders  of the Company  approved the sale and  potential
issuances  of MicroCor  stock to Wescor,  Inc.  pursuant to a Joint  Development
Agreement dated September 7, 2004 at a special shareholders meeting held January
24, 2005. The shareholders  also approved the election of Larry E. Clark,  Ralph
Henson,  Richard  Bruggeman,  Sheng Jung Chiang and Mao-Song Lee as directors of
the  Company and  ratified  the  appointment  of Robison  Hill as the  Company's
independent  public  accountant.  The proposal to approve the sale and potential
issuances  of the  MicroCor  stock,  the  election  of  each  director  and  the
ratification  of the appointment of Robison Hill were each approved by a vote of
9,508,271 in favor with no contrary votes or abstentions.

Item 5.   Other Information: None




1 - Not yet included in issued and outstanding shares reported on the cover page
pending  completion  of the  issuance.  These  shares were  purchased by Chi Lin
pursuant to its  anti-dilution  rights under the Stock Purchase  Agreement dated
May 10, 2001.


                                       12
<PAGE>

Item 6.   Exhibits:

(31.1)   Sarbanes-Oxley Section 302 Certification - Ralph Henson

(31.2)   Sarbanes- Oxley Section 302 Certification- Richard Bruggeman

(32.1)   Sarbanes-Oxley Section 906 Certification

 Reports on Form 8-K: None



                                       13
<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:  May 13, 2005         By Richard Bruggeman, Treasurer























                                       14
<PAGE>



                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                   FORM 10QSB - SEPTEMBER 30, 2004

EXHIBIT NUMBER    DESCRIPTION

         31.1     Section 302 Certifications of Ralph Henson

         31.2     Section 302 Certifications of Richard Bruggeman

         32.2     Sarbanes-Oxley Section 906 Certification



                                       15