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

                                 Form 10QSB/A#1

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

                  For the Quarterly Period Ended March 31, 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 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 1, 2004 was 15,982,993 shares.




                                       1

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET


                              ASSETS
                              ------
                                              As of
                                             March 31,
                                              2004
                                           (Unaudited)
                                           -----------

        CURRENT ASSETS:
           Cash                             $    1,407
           Securities available for sale             1
           Prepaid expenses and other              200

                                            ----------
                Total current assets             1,608


        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $253,343                 531

                                            ----------


                Total assets                $    2,139
                                            ==========






















            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,
                                                           2004
                                                          ------
                                                       (Unaudited)

        CURRENT LIABILITIES:
           Related party consulting fees payable       $    72,000
           Accrued expenses                                 54,912
           Note Payable                                     42,772
           Accounts payable                                 19,971
           Preferred stock dividend payable                 20,806
                                                      ------------

                Total current liabilities                  210,461
                                                       -----------

            MINORITY INTEREST                               98,651
                                                       -----------

        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,
            15,982,993 issued and outstanding               15,983
           Additional paid-in capital                    8,024,260
           Accumulated deficit                          (8,441,789)
                                                        ----------

                Total stockholders equity                 (306,973)
                                                        ----------
                Total liabilities and
                 stockholders' equity                   $   2,139
                                                        ==========











            See notes to consolidated financial statements


                                       3
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                               For the Three
                                               Months Ended
                                                 March 31,
                                             2004        2003
                                           --------    --------
                                                (Unaudited)
          TOTAL ROYALTY REVENUES            $   -0-         -0-
                                           --------    --------

          OPERATING EXPENSES:
            General and
              administrative                 40,810      62,097
            Research and
             development                      3,756       1,841
                                           --------    --------
              Total operating expenses       44,566      63,938
                                           --------    --------

          LOSS FROM OPERATIONS              (44,566)    (63,938)
                                           --------    --------

          OTHER INCOME:
            Other income, net                   -0-          20
                                           --------    --------
             Total other income, net            -0-          20
                                           --------    --------

          LOSS BEFORE MINORITY INTEREST     (44,566)    (63,918)

          MINORITY INTEREST                   5,430       9,600
                                           --------    --------
              NET LOSS                      (39,136)    (54,318)

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

          NET LOSS APPLICABLE TO
           COMMON STOCKHOLDERS             $(41,028) $ (56,209)
                                           ========   ========
          NET LOSS PER COMMON SHARE
            (BASIC AND DILUTED)            $   (.00)  $   (.00)
                                           ========   ========

          Weighted average number
            of common shares outstanding  15,982,993  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,
                                                    2004       2003
                                                  --------   --------
                                                      (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                  $ (39,136) $( 54,318)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation and amortization                44         44
           Minority interest in losses              (5,430)    (9,600)
           Change in assets and liabilities
             Prepaid expenses and other                -0-        625
             Consulting fee payable to
               related party                         6,000      6,000
             Note payable                           42,772        -0-
             Accounts payable                       (4,069)      (704)
                                                  --------   --------
                Net cash used in
                  operating activities                 181    (57,953)
                                                  --------   --------

     CASH FLOWS USED IN INVESTING ACTIVITES:
       Purchase of equipment and furniture             -0-        -0-
                                                  --------   --------
                Net cash used in investing
                   activities                          -0-        -0-
                                                 ---------  --------

     CASH FLOWS FROM FINANCING ACTIVITIES:
       Preferred stock dividend                        -0-        -0-

                                                  --------   --------
                Net cash used in financing
                  activities                           -0-        -0-
                                                  ---------- --------














           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,
                                                     2004       2003
                                                   ---------- -------
                                                       (Unaudited)


   NET INCREASE (DECREASE) IN CASH                   181      (57,953)

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

   CASH AT END OF PERIOD                        $  1,407     $39,478
                                                 =======      =======







































          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 and its majority owned subsidiary,  MicroCor, Inc. (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 $39,136 and $54,318 for the three month  periods  ended
March 31, 2004 and 2003,  respectively,  and positive cash flows from operations
of $181 for the three month period ended March 31, 2004,  and negative cash flow
from  operations  of $57,953 for the three month period ended march 31, 2003. As
of March 31, 2004,  the Company had an  accumulated  deficit of  $8,441,789.  At
March 31, 2004, the Company had a stockholders'  equity (deficit) of $(306,973).
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 the clinical trials that
will be  required  for FDA  approval  for the  medical  products  that are under
development,  pursuant  to the  Chi Lin  development  agreement,  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.



                                       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.

Item 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

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 bloodcells 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

                                       8

<PAGE>

additional  research and development.  The Company's  officers and Chairman also
agreed to accrual of their wages and consulting fees pending receipt of funds to
pay those obligations.

PLAN OF OPERATION. During the next 12 months, the Company's plan of operation is
to  demonstrate  the  Company's  portable  hematocrit  device  to large  medical
technology  companies and to smaller companies that have established  capability
to research,  develop and pursue FDA clearance of the technology.  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.  The Company will
also seek loans from such  companies  in order to fund  administrative  expenses
during the evaluation  process and without such loans or other funding,  will be
unable to pay obligations and expenses during 2004. Further, the Company will be
unable to pay any research or development  expenses during 2004 without loans or
additional funding.  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.  InMedica  continues to look for
other funding sources.


LIQUIDITY  AND CAPITAL  RESOURCES.  During the three months ended March 31, 2003
liquidity  resulted  from  the  sale of stock  by  InMedica  and its  subsidiary
MicroCor  pursuant to the Stock  Purchase  Agreement  dated May 10, 2001.  As of
March 31, 2003 InMedica and MicroCor had each received payments of $500,000 from
Chi Lin and Chi Lin's stock purchase obligation had been satisfied.

The funds  generated  from the sale of stock in 2001 were the sole source of the
Company's cash flow and were sufficient to meet the Company's operating expenses
only  through  June 30, 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 three  months  ended  March 31,  2004  $42,772  was  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

                                       9

<PAGE>

time. In the event the entity withdraws from further participation,  the Company
will be obligated  to repay  $10,171.52.  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 three  month
period ended March 31, 2004 and 2003. The Company had an accumulated  deficit of
$8,441,789 as of March 31, 2004. No revenues from operations are expected in the
foreseeable  future.  The net loss for the period ended March 31, 2004 decreased
to $39,136  compared  to the net loss of  $54,318  for 2003  primarily  due to a
decrease  in total  operating  expenses of $19,372.  The  decrease in  operating
expenses is the result of reduced insurance costs, payroll, accounting and legal
fees.

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  Annual  Report on Form
10-KSB,  that the Company's  disclosure  controls and  procedures (as defined in
Exchange Act Rules 13a - 15(e) or  240.15d-15(e))  have functioned  effectively.
For purposes of this Item, the term  DISCLOSURE  CONTROLS AND  PROCEDURES  means
controls  and other  procedures  of the Company that are designed to ensure that
information required to be disclosed by the Company in the reports that it files
or  submits  under  the  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.

                                       10

<PAGE>

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.    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

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

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

         (32.1)   Sarbanes-Oxley Section 906 Certification

         Reports on Form 8-K: None






                                       12

<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,  there-unto
duly authorized.

                            INMEDICA DEVELOPMENT CORPORATION
Dated: December 27, 2004
--------------------
                                By /s/ Ralph Henson
                                -------------------
                                Ralph Henson, CEO


                                By /s/ Richard Bruggeman
                                ------------------------
                                Richard Bruggeman, Treasurer














                                       13

<PAGE>


                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
              FORM 10QSB/A#1 - FOR THE QUARTER ENDED MARCH 31, 2004

Exhibit 31.1      CERTIFICATION PURSUANT TO SECTION 302
                  OF THE SARBANES-OXLEY ACT OF 2002 - Ralph Henson

Exhibit 31.2      CERTIFICATION PURSUANT TO SECTION 302
                  OF THE SARBANES-OXLEY ACT OF 2002 - Richard Bruggeman

Exhibit 32.1      CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350 AS
                  ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-
                  OXLEY ACT OF 2002








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