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 September 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 November 9, 2004 was 16,382,993 shares.



                                       1

<PAGE>





PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET



                                     ASSETS

                                        As of
                                      September 30,
                                         2004
                                      (Unaudited)

CURRENT ASSETS:
   Cash                             $      2,898
   Note receivable                       270,000
   Securities available for sale               1
   Prepaid expenses and other                200
                                    ------------

        Total current assets             273,099

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $253,432                  442
                                    ------------






        Total assets                $    273,541
                                    ============







                See notes to consolidated financial statements.

                                       2
<PAGE>




                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEET (CONTINUED)


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                 As Of
                                              September 30,
                                                  2004
                                              (Unaudited)


CURRENT LIABILITIES:
   Related party consulting fees payable     $   84,000
   Accrued expenses                              54,912
   Note payable                                 108,970
   Interest payable                               2,605
   Accounts payable                              20,879
   Preferred stock dividend payable              24,589
                                             ----------


        Total current liabilities               295,955
                                             ----------

MINORITY INTEREST                               (62,386)
                                             ----------


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                8,264,260
   Accumulated deficit                      (8,334,844)
                                            ----------

        Total stockholders'
         equity                                 39,972
                                            ----------
        Total liabilities and
         stockholders' equity               $  273,541
                                            ==========

                See notes to consolidated financial statements.

                                       3
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                  For the Three            For the Nine
                                  Months Ended             Months Ended
                                  September 30,            September 30,
                                  2004       2003         2004        2003
                                    (Unaudited)             (Unaudited)

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

OPERATING EXPENSES:
  General and
    administrative                 58,595     17,167      153,545    100,429
  Research and
    development                       505      3,581        9,929     10,306
                              -----------  ---------- -----------  ---------

  Total operating expenses         59,100     20,748      163,474    110,735
                              ------------ ---------- ------------ ---------


LOSS FROM OPERATIONS              (59,100)   (20,748)    (163,474)  (110,735)
                              -----------  ---------  -----------  ---------

OTHER INCOME (EXPENSE):
  Gain from sale of subsidary      60,000        -         60,000        -
  Other income,                    11,202          7       11,202         46
  Interest expense                 (2,605)       -         (2,605)       -
                              -----------  ---------  -----------  ----------

  Total other income, net          68,597          7       68,597         46
                              -----------  ---------- -----------  ---------

LOSS BEFORE MINORITY INTEREST       9,497   (20,741)      (94,877)  (110,689)

MINORITY INTEREST                 153,137      2,103      166,468     14,067
                              ----------- ----------  ----------- ----------

NET INCOME (LOSS)                 162,634    (18,638)      71,591    (96,622)

PREFERRED STOCK DIVIDENDS          (1,891)    (1,891)      (5,674)    (5,674)
                              ----------- ----------  ----------- ----------

NET INCOME (LOSS) APPLICABLE
  TO COMMON STOCKHOLDERS          160,743    (20,529)      65,917   (102,296)

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 Nine Months Ended
                                                 September 30,
                                             2004             2003
                                            -----            -------
                                                  (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net income (loss)                      $    71,591     $   (96,622)
  Adjustments to reconcile net
    Loss to net cash used in
    Operating activities-
      Depreciation and amortization              133             133
      Minority interest in losses           (166,468)        (14,067)
      Gain on sale of subsidiary             (60,000)              -
      Change in assets and liabilities
        Prepaid expenses and other                -            1,250
        Related party consulting fee payable  18,000          18,000
        Interest payable                       2,606             -
        Accounts payable                      (3,160)          5,857
                                           ---------       ---------

          Net cash used in
           operating activities             (137,298)       (85,449)
                                           ---------      ---------


CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sale of subsidiary              30,000             -
                                           ---------       ---------

          Net cash provided by
           Investing activities               30,000             -
                                           ---------       ---------












             See notes to consolidated financial statements.

                                       5
<PAGE>




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

                                          For the Nine Months Ended
                                                September 30,
                                              2004        2003
                                                (Unaudited)



CASH FLOWS FROM FINANCING ACTIVITIES:
  Preferred stock dividend                        -          -
  Payments on note payable                    (6,000)        -
  Proceeds from note payable                 114,970         -
                                           ---------    ---------

       Net cash provided by
         financing activities                108,970         -
                                           ----------   ---------



NET INCREASE (DECREASE)IN CASH                 1,672     (85,449)

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

CASH AT END OF THE PERIOD                   $  2,898     $11,982
                                            =========    ========

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Notes receivable from sale of subsidiary    $ 270,000    $     -


                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 a net income of $71,591 and a net loss of $96,622 for the
nine month periods ended September 30, 2004 and 2003, respectively, and negative
cash flows from  operations  of $137,298 and $85,449 for the nine month  periods
ended September 30, 2004 and 2003,  respectively.  As of September 30, 2004, the
Company had an  accumulated  deficit of  $8,334,844.  At September 30, 2004, the
Company  had  a  stockholders'   equity  of  $39,972.   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 - "Managements 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, 2003.

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<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.

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<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 seek  shareholder  approval of the September 7, 2004 agreement with Wescor in
order to obtain approval of the current  agreement for sale of MicroCor stock to
Wescor in exchange for cash and research and development  services. In the event
Wescor  withdraws from  participation  which it has the right to do at any time,
the Company intends to continue 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  would  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.

                                       9
<PAGE>

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.  Since that time,  additional  funds have been  advanced to the Company by
Wescor.  Further,  three  directors/  officers  of  the  Company  have  recently
subscribed  to  purchase  1,181,000  restricted  shares of  common  stock of the
Company for $118,100 ($.10 per share) of which $40,000 has been paid.  (See Item
5 "Other"  for further  description  of this  transaction).  The  purchases  are
contingent  upon payment of accrued but unpaid  salaries and consulting  fees to
the directors and will permit the Company to satisfy  certain  outstanding  wage
and fee accruals while receiving cash to continue operations.

During the nine months ended  September  30, 2004  $108,970 was provided by cash
advances 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 17 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.  The  Agreement
requires shareholder approval of the transactions contemplated thereunder within
90 days and the Company has submitted a preliminary information statement to the
Securities  and  Exchange  Agreement  to be  used  in  seeking  approval  of the
transactions.  Should Wescor withdraw from further participation in the project,
which it may do at anytime,  the Company will continue to look for other sources
of funding and will be  obligated to repay  $108,970 to Wescor,  as of September
30, 2004.



                                       10
<PAGE>

RESULTS OF OPERATIONS.

InMedica  incurred net losses from operations during the nine month period ended
September  30,  2004  and  2003.  The  Company  had an  accumulated  deficit  of
$8,334,844 as of September 30, 2004. No revenues from operations are expected in
the foreseeable  future. The net loss from operations for the three month period
ended  September  30,  2004  increased  to $59,100  compared  to the net loss of
$20,748 for 2003  primarily  due to an  increase  in general and  administrative
expenses  of  $41,428.  The  increase  in  operating  expenses  is the result of
increased  payroll and legal fees.  Payroll  for the three  month  period  ended
September 30, 2003 was paid at a significantly reduced rate compared to the same
period  ended  September  30,  2004 as an effort 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  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 - 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.

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                                       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:

      Effective  September  27,  2004 Larry E. Clark,  Ralph  Henson and Richard
Bruggeman  each  subscribed  to purchase  shares of the Company in the following
amounts  respectively:  840,000,  240,000,  and  101,000  at a price of $.10 per
share. The closing bid price on the date of subscription was $.10 per share. The
Subscription  exercise is  contingent  on the  Company  paying each of the three
individuals  the amount of their accrued but unpaid wages or consulting  fees in
the amounts of $84,000, $34,998, and $16,002, respectively. The 1,181,000 shares
to be purchased will constitute 7.6% of the issued and outstanding  stock of the
Company,  acquired for total  consideration of $118,100.  Effective  October 14,
2004,  the Company  paid Mr.  Clark  $40,000 in accrued  consulting  fees and he
purchased 400,000 Shares of restricted common stock from the Company for $40,000
cash.

     Ralph Henson, the Company's  President,  has been requested by Wescor, Inc.
("Wescor") to consult for MicroCor for  three-quarters  of his working time, for
which Mr. Henson will be compensated by Wescor at the current rate of $5,000 per
month.  The  consulting  agreement is an oral agreement and may be terminated or
modified at any time. The  arrangement has been agreed to by the Company's board
of directors.


Item 6.   Exhibits:

         10       Joint  Development  Agreement  dated  September 7, 2004,  with
                  Wescor,  Inc.,  incorporated  by  reference  to Form 8-K filed
                  September 14, 2004.

         (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
         (99.1)   Letter of Intent dated January 28, 2004 between  Wescor,  Inc.
                  and InMedica.
         (99.2)   Loan Agreement dated February 1, 2004 between Wescor, Inc. and
                  InMedica.
         (99.3)   Assignment  and  Security  Agreement  dated  February  1, 2004
                  between Wescor, Inc. and InMedica.
         (99.4)   Technology  Modifications  Note of InMedica dated February 19,
                  2004.
         (99.5)   Overhead Note of InMedica dated February 19, 2004.
         (99.6)   Accrued Expense Note of InMedica dated February 19, 2004.

 Reports on Form 8-K:

The  Company  filed a report on Form 8-K on  September  14,  2004  reporting  an
Agreement with Wescor, Inc. dated September 7, 2004.



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                                   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
























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<PAGE>

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

EXHIBIT NUMBER    DESCRIPTION

         10       Joint  Development  Agreement  dated  September 7, 2004,  with
                  Wescor,  Inc.,  incorporated  by  reference  to Form 8-K filed
                  September 14, 2004.

         31.1     Section 302 Certifications of Ralph Henson

         31.2     Section 302 Certifications of Richard Bruggeman

         32.2     Sarbanes-Oxley Section 906 Certification

         (99.1)   Letter of Intent dated January 28, 2004 between  Wescor,  Inc.
                  and InMedica.
         (99.2)   Loan Agreement dated February 1, 2004 between Wescor, Inc. and
                  InMedica.
         (99.3)   Assignment  and  Security  Agreement  dated  February  1, 2004
                  between Wescor, Inc. and InMedica.
         (99.4)   Technology  Modifications  Note of InMedica dated February 19,
                  2004.
         (99.5)   Overhead Note of InMedica dated February 19, 2004.
         (99.6)   Accrued Expense Note of InMedica dated February 19, 2004.




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