U.S. SECURITIES AND EXCHANGE COMMISSION


                             Washington, D.C. 20549


                                Form 10 - QSB/A#1

                   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.



                                       2
<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.



                                       3
<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.



                                       4
<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.



                                       5
<PAGE>





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

                                         For the Six Months Ended
                                         -----------------------
                                          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.




                                       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.
(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.



                                       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.





























                                       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 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
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

                                       9

<PAGE>

and fund  continued  research and  development.  InMedica  continues to 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. 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 $95,869 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 time.
In the event the entity withdraws from further  participation,  the Company will
be obligated to repay  $10,172.52.  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 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.



                                       10

<PAGE>

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.

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 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

(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

                                       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, thereunto duly
authorized.

                        INMEDICA DEVELOPMENT CORPORATION


                                /s/ Ralph Henson ___
                                By Ralph Henson, President


                                /s/ Richard Bruggeman
Date:  December 27, 2004       By Richard Bruggeman, Treasurer
























                                       13

<PAGE>


                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
              FORM 10QSB/A#1 - FOR THE QUARTER ENDED JUNE 30, 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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