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, 2004


                           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 August 3, 2004 was 15,982,993 shares.






<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET



                                     ASSETS

                                        As of
                                       June 30,
                                         2004
                                      (Unaudited)

CURRENT ASSETS:
   Cash                             $      1,643
   Securities available for sale               1
   Prepaid expenses and other                200
                                    ------------

        Total current assets               1,844

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $253,388                  486
                                    ------------






        Total assets                $      2,330
                                    ============







                See notes to consolidated financial statements.


<PAGE>




                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED BALANCE SHEET(CONTINUED)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                 As Of
                                                June 30,
                                                  2004
                                              (Unaudited)


CURRENT LIABILITIES:
   Related party consulting fees payable     $   78,000
   Accrued expenses                              54,912
   Note payable                                  95,869
   Accounts payable                              20,871
   Preferred stock dividend payable              22,697
                                             ----------


        Total current liabilities               272,349
                                             ----------

MINORITY INTEREST                                90,751
                                             ----------


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;
    40,000,000 shares authorized,
    15,982,993 issued and outstanding           15,983
   Additional paid-in capital                8,024,260
   Accumulated deficit                      (8,495,586)
                                            ----------

        Total stockholders'
         equity                               (360,770)
                                            ----------
        Total liabilities and
         stockholders' equity               $    2,330
                                            ==========

                See notes to consolidated financial statements.


<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                  For the Three            For the Six
                                  Months Ended             Months Ended
                                    June 30,                 June 30,
                              ----------------------  -----------------------
                                2004        2003         2004        2003
                              ---------- -----------  ----------- -----------
                                    (Unaudited) (Unaudited)

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

OPERATING EXPENSES:
  General and
    administrative                 54,140     21,165       94,950     83,262
  Research and
    development                     5,668      4,884        9,424      6,725
                              -----------  ---------- -----------  ---------

  Total operating expenses         59,808     26,049      104,374     89,987
                              ------------ ---------- ------------ ---------


LOSS FROM OPERATIONS              (59,808)   (26,049)    (104,374)   (89,987)
                              -----------  ---------  -----------  ---------

OTHER INCOME (EXPENSE):
  Other income, net                   -           19          -           39
  Interest expense                    -          -            -          -
                              -----------  ---------  -----------  ----------

  Total other expense, net            -           19          -           39
                              -----------  ---------- -----------  ---------


LOSS BEFORE MINORITY INTEREST     (59,808)   (26,030)    (104,374)   (89,948)

MINORITY INTEREST                   7,901      2,364       13,331     11,964
                              ----------- ----------  ----------- ----------

NET LOSS                          (51,907)   (23,666)     (91,043)   (77,984)

PREFERRED STOCK DIVIDENDS          (1,891)    (1,892)      (3,783)    (3,783)
                              ----------- ----------  ----------- ----------

NET LOSS APPLICABLE TO
  COMMON STOCKHOLDERS             (53,798)   (25,558)     (94,826)   (81,767)

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

Weighed average number
  of common shares
  outstanding                  15,982,993  15,982,993   15,982,993  15,982,993
                              =========== ===========  ===========  ==========

                See notes to consolidated financial statements.


<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS



                                            For the Six Months Ended
                                                   June 30,
                                            ------------------------
                                             2004             2003
                                            -----            -------
                                                  (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net loss                               $   (91,043)    $   (77,984)
  Adjustments to reconcile net
    Loss to net cash used in
    Operating activities-
      Depreciation and amortization               90              88
      Issuance of stock for
          consulting fees                         -               -
      Minority interest in losses            (13,331)        (11,964)
      Change in assets and liabilities-
        Prepaid expenses and other                -            1,250
        Related party consulting fee payable  12,000          12,000
        Accounts payable                      (3,168)           (704)
                                           ---------       ---------

          Net cash used in
           operating activities              (95,452)       (77,314)
                                           ----------     ---------


CASH FLOWS USED IN INVESTING ACTIVITIES:
  Purchase of equipment and furniture             -               -
                                           ---------        --------











                 See notes to consolidated financial statements.


<PAGE>




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

                                            For the Six Months Ended
                                                   June 30,
                                            ------------------------
                                             2004             2003
                                            -----            -------
                                                  (Unaudited)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Preferred stock dividend                        -          -
        Note payable                          95,869         -
                                           ---------    ---------

       Net cash provided by
         financing activities                 95,869          -
                                           ----------  ---------



NET INCREASE (DECREASE)IN CASH                   417     (77,314)

CASH AT BEGINNING OF THE PERIOD                1,226      97,431
                                            --------    --------

CASH AT END OF THE PERIOD                   $  1,643     $20,117
                                            =========    ========


                See notes to consolidated financial statements.



<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  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  net losses of  $91,043  and  $77,984  for the six month
periods ended June 30, 2004 and 2003, respectively, and negative cash flows from
operations  of $95,452 and $77,314 for the six month periods ended June 30, 2004
and 2003,  respectively.  As of June 30,  2004,  the Company had an  accumulated
deficit of $8,495,586. At June 30, 2004, the Company had a stockholders' deficit
of $(360,770).  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
strategic  alliances  (in  addition to the Chi Lin  Development  Agreement)  and
licensing agreements, and if warranted, preparation for the clinical trials that
will be  required  for FDA  approval  for the  medical  products  that are under
development, utilizing 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 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, 2003.

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.





<PAGE>



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


         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.  While the Company has in the past borrowed
         from  affiliates,  any  borrowing  in the future  from  affiliates,  if
         available, is not expected to be sufficient to provide future liquidity
         needs, retire obligations and fund continued research and development.

         During the six months ended June 30, 2004 some limited  operating funds
         were  provided by cash  advances  from an entity that is  investigating
         participation in development of the Hematocrit  technology.  However at
         this time there is no  definitive  agreement  for  development  and the
         entity may withdraw from further participation at any time. The Company
         will  continue  to look for other  sources of  funding  pending a final
         decision by the entity regarding participation.

         RESULTS OF  OPERATIONS.  InMedica  incurred  net losses  during the six
         month  period  ended  June  30,  2004  and  2003.  The  Company  had an
         accumulated deficit of $8,495,586 as of June 30, 2004. No revenues from
         operations are expected in the  foreseeable  future.  The net loss from
         operations  for the three month period ended June 30, 2004 increased to
         $59,808  compared to the net loss of $26,049 for 2003  primarily due to
         an  increase  in general and  administrative  expenses of $32,975.  The
         increase  in  operating  expenses is the result of  increased  payroll,
         legal and patent  fees.  Payroll for the three month  period ended June
         30, 2003 was paid at a  significantly  reduced  amount  compared to the
         same period ended June 30, 2004. This was an effort made by certain key
         employees to conserve cash.









Item 3:   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.



<PAGE>



     PART II - OTHER INFORMATION

Item 1.     Legal Proceedings:  None

Item 2.     Changes in 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: On July 20, 2004 MicroCor was issued a fourth
patent: Patent 6,766,191 "System and method for in-vivo hematocrit measurement
using impedance and pressure plethysmography."


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


<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:  August 12, 2004          By Richard Bruggeman, Treasurer
              --






<PAGE>


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

EXHIBIT NUMBER    DESCRIPTION
         31.1     Section 302 Certifications of Ralph Henson
         31.2     Section 302 Certifications of Richard Bruggeman
         32.1     Sarbanes-Oxley Section 906 Certification of Ralph Henson
         32.2     Sarbanes-Oxley Section 906 Certification of Richard Bruggeman