SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
   [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the quarterly period ended September 30, 2001.

   [  ]  Transition report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the transition period from              to               .
                                           ------------    --------------


         Commission file number: 000-26927
                                 ---------


                                  NOVAMED, INC.
        (Exact name of small business issuer as specified in its charter)





                 Nevada                               77-0443643
                --------                             ------------
    (State or other jurisdiction of      (I.R.S. Employer Identification No.)
     incorporation or organization)





                 623 Hoover Street, Minneapolis, Minnesota 55413
           -----------------------------------------------------------
               (Address of principal executive office) (Zip Code)


                                 (612) 378-1437
                         ------------------------------
                           (Issuer's telephone number)


Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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 outstanding shares of the issuer's common stock, $0.001 par value
(the only class of voting stock), as of November 5, 2001 was 43,486,464.

                                        1

<PAGE>



                                TABLE OF CONTENTS

                                     PART I

ITEM 1.  FINANCIAL STATEMENTS.................................................3

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS.................................4


                                     PART II

ITEM 1.  LEGAL PROCEEDINGS....................................................6

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.....................................6

SIGNATURES....................................................................7

INDEX TO EXHIBITS.............................................................8











                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY]

                                        2

<PAGE>



ITEM 1.           FINANCIAL STATEMENTS

As used herein, the term "Company" refers to NovaMed, Inc., a Nevada
corporation, and its subsidiaries and predecessors unless otherwise indicated.
Consolidated, unaudited, condensed interim financial statements including a
balance sheet for the Company as of the quarter ended September 30, 2001, and
statements of operations, and statements of cash flows for the interim period up
to the date of such balance sheet and the comparable period of the preceding
year are attached hereto as Pages F-1 through F-5 and are incorporated herein by
this reference.










                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY]



                                        3

<PAGE>





                                  NOVAMED, Inc.
                      Unaudited Consolidated Balance Sheet
                            As of September 30, 2001
<TABLE>
<CAPTION>
                                                                                                     September 30, 2001
                                                                                                        (unaudited)
                                                                                                  ------------------------
<S>                                                                                           <C>
ASSETS
      Cash                                                                                     $                     3,598
      Inventories, net of allowances                                                                                79,204
                                                                                                  ------------------------

      AssetsCurrent Assets                                                                                          82,802

      Property and equipment, net                                                                                   37,552

TOTAL ASSETS                                                                                                       120,354

                                                                                                  ------------------------

LIABILITIES AND STOCK HOLDERS' EQUITY
      Current Liabilities:
                  Accounts payable and accrued liabilities                                     $                   122,373
                  Notes payable                                                                                     20,000
                                                                                                  ------------------------
            Total Current Liabilities
                Total Current Liabilities                                                                          142,373

      Convertible Debentures                                                                                       200,000

      Stockholders' equity
            Common stock, $.01 par value, 50,000,000 shares authorized;
                 43,486,464 shares issued and outstanding September 30, 2001                                        43,487
            Additional paid in capital                                                                           6,668,710
            Stock subscription receivable                                                                         (430,010)
            Accumulated deficit                                                                                 (6,504,206)
                                                                                                  ------------------------

                 Total stockholders' equity (deficit)                                                             (222,019)
                                                                                                  ------------------------

TOTAL LIABILITIES AND EQUITY (DEFICIT)                                                         $                   120,354
                                                                                                  =========================


</TABLE>


                                       F-1

<PAGE>











                                  NOVAMED, Inc.
                 Unaudited Consolidated Statements of Operations
         For the Three and Nine Months Ended September 30, 2001 and 2000
<TABLE>
<CAPTION>
                                                          Three                Three               Nine                 Nine
                                                          Months              Months              Months               Months
                                                          Ended                Ended               Ended               Ended
                                                        September            September           September           September
                                                         30, 2001            30, 2000            30, 2001             30, 2000
                                                      --------------      ---------------     ---------------      --------------
<S>                                               <C>                  <C>                 <C>                 <C>
Net Sales                                          $               -    $         245,000   $               -   $         990,000

Costs and expenses:
      Cost of sales/manufacturing                                622              116,000              29,058             486,000
      Selling, general and administrative                     69,017              213,000             459,772           1,011,000
      Research and development                                     -                4,000                   -              60,000
                                                      --------------      ---------------     ---------------      --------------
Total costs and expenses                                      69,639              333,000             488,830           1,557,000

Other Income (Expense)                                             -                8,000                   -               8,000

Extraordinary Items
      Write-down of inventory value                           50,000                    -              50,000                   -

Net Income ( Loss) Before Income Taxes             $        (119,639)   $         (80,000)  $        (538,830)  $        (559,000)

                                                      --------------      ---------------     ---------------      --------------

Provision for income taxes                                         -                    -                   -                   -

Net Income (Loss)                                  $        (119,639)   $         (80,000)  $        (538,830)  $        (559,000)
                                                      --------------      ---------------     ---------------      --------------

Loss per common share-basic and diluted            $            0.00    $           (0.01)  $           (0.01)  $           (0.04)
                                                      --------------      ---------------     ---------------      --------------

Weighted average common shares - basic
and diluted                                               43,486,000           15,516,000          43,486,000          15,400,000
                                                      ==============      ===============     ===============      ==============

</TABLE>

    The accompanying notes are an integral part of these financial statements

                                       F-2

<PAGE>

                                  NOVAMED, Inc.
                 Unaudited Consolidated Statements of Cash Flows
              For The Six Months Ended September 30, 2001 and 2000
<TABLE>
<CAPTION>
                                                                                              Nine months ended
                                                                                                September 30,
                                                                                       2001                       2000
                                                                               ---------------------        --------------------
<S>                                                                         <C>                           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net Loss                                                                 $             (538,830)       $           (559,000)
    Adjustments to reconcile net loss to net cash provided by (used in)
    operations:
       Depreciation                                                                          13,443                      21,000
       Stock issued for royalties and license fees                                          262,500                      41,000
       (Increase) decrease in:
             Receivables                                                                          -                      46,000
             Inventories                                                                     50,000                     281,000
             Prepaid expenses                                                                     -                           -
             Other assets                                                                         -                      35,000
       Increase (decrease) in:
             Cash overdrafts                                                                      -                     (7,000)
             Accounts payable and accrued expenses                                            4,706                   (359,000)
             Related party payables                                                               -                     209,000
                                                                               --------------------        --------------------
    Net cash provided by (used in ) Operating Activities                                   (208,181)                   (292,000)
                                                                               --------------------        --------------------


CASH FLOWS FROM INVESTING ACTIVITIES                                                              -                           -
                                                                               --------------------        --------------------


CASH FLOWS FROM FINANCING ACTIVITIES
    Collection of stock subscription receivable                                                   -                           -
    Proceeds from notes payable                                                                   -                      20,000
    Issuance of convertible debentures                                                      200,000                           -
    Issuance of common stock                                                                      -                     145,000
                                                                               --------------------        --------------------
Net cash provided by Financing Activities                                                   200,000                     165,000

Effect of exchange rates on cash                                                                  -                     111,000
                                                                               --------------------        --------------------

NET CASH INCREASE (DECREASE) FOR PERIOD                                                      (8,181)                    (16,000)

CASH, BEGINNING OF PERIOD                                                                    11,779                      16,000

CASH, END OF PERIOD                                                          $                3,598        $                  -
                                                                               ====================        ====================
</TABLE>

    The accompanying notes are an integral part of these financial statements

                                       F-3

<PAGE>



                                  NOVAMED, INC
              NOTES TO CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
                               September 30, 2001


1.  Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared by
management in accordance with the instructions in Form 10-QSB and, therefore, do
not include all information and footnotes required by generally accepted
accounting principles and should, therefore, be read in conjunction with the
Company's financial statements filed on Form 10-KSB, filed with the Securities
and Exchange Commission on April 2, 2001. These statements do include all normal
recurring adjustments which the Company believes necessary for a fair
presentation of the statements. The interim operations results are not
necessarily indicative of the results for the full year ended December 31, 2001.

2.  Additional footnotes included by reference

Except as indicated in Notes above, there have been no other material changes in
the information disclosed in the notes to the financial statements included in
the Company's Form 10-KSB, filed with the Securities and Exchange Commission on
April 2, 2001. Therefore, those footnotes are included herein by reference.





                                       F-4

<PAGE>




ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Forward Looking Statement

This Quarterly Report contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to be
covered by the safe harbors created thereby. Investors are cautioned that all
forward-looking statements involve risks and uncertainty, including without
limitation, the ability of the Company to continue its expansion strategy,
changes in costs of raw materials, labor, and employee benefits, as well as
general market conditions, competition and pricing. Although the Company
believes that the assumptions underlying the forward- looking statements
contained herein are reasonable, any of the assumptions could be inaccurate, and
therefore, there can be no assurance that the forward-looking statements
included in this Quarterly Report will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives and plans
of the Company will be achieved.

General

As used herein the term Company refers to NovaMed, Inc., its subsidiaries and
predecessors, unless the context indicates otherwise. The Company is a medical
device holding company that developed, manufactured, and marketed hydrogel and
saline filled breast implant products that were used in primary augmentations,
revisions, or reconstructive procedures.

The Company through the period ended December 31, 2000, derived substantially
all of its sales revenue from the sale of prosthesis products outside of North
America. On December 11, 2000, the Medical Device Agency ("MDA") of the British
Department of Health issued a device alert in connection with the recall of the
Company's NOVAGOLD(TM) breast implant product. The decision to issue a device
alert was made after discussions with the Company's subsidiary, Novamedical
Products GmbH, which voluntarily agreed to suspend any further shipment or sale
of the NOVAGOLD(TM) product in Britain until such time as the MDA was satisfied
that the Company had completed an "adequate" biological safety assessment of the
Company's hydrogel filling material. The device alert did not advise that the
NOVAGOLD(TM) breast implant was unsafe, rather the MDA's position was that the
Company did not satisfy the European device regulations for selling breast
implants.

The MDA device alert stated that the MDA had not identified any definite risk
associated with the NOVAGOLD(TM) implant and did not recommend explanation for
the approximately 250 patients in Britain. The device alert further provided
that there was no information to indicate that there were specific risks to
women or their children, either during pregnancy or from breast feeding
associated with the NOVAGOLD(TM) breast implant.

Concurrent with the MDA device alert, which was relevant only to sales in
Britain, the Company was in the process of re-certifying its approval to sell
the NOVAGOLD(TM) product throughout the European Union. Permission to sell
throughout the European Union requires a CE Mark awarded by a notified body from
one of the member nations. Notified bodies are certified by government health
authorities and given the responsibility of examining products for safety and
efficacy before allowing sales within the European Union. Once the device alert
was issued in Britain, the MDA's justifications for issuing the alert were
published throughout the European Union. The ECM (the Company's notified body
certified by the German government) learned of the MDA's device alert and
decided not to re-certify the NOVAGOLD(TM) product for sale in the European
Union until such time as the Company provided new testing data and a new CE Mark
application to support the contention that the product was safe. Further, the
ECM advised the Company to discontinue its sale of the NOVAGOLD(TM) until such
time as a new CE Mark was obtained.



                                        4

<PAGE>



The Company has engaged technical, regulatory and scientific specialists to
reexamine all design criteria for the NOVAGOLD(TM) product and to revisit our
test data. The results of this examination will determine what further action on
the part of the Company, is required to satisfy the MDA's mandate. Our
examination to date has revealed no scientific evidence that the NOVAGOLD(TM)
implant is unsafe.

The loss of the CE mark on the NOVAGOLD(TM) breast implant precludes the Company
from generating any significant sales revenues until such time as the Company
can be approved for a new CE Mark. The Company intends to file a new CE Mark
application with a European Union notified body for the NOVAGOLD(TM) breast
implant or some variation of this alternative fill product as soon as sufficient
funding is made available to complete the requisite testing and application
procedures.

The Company also submitted a Investigational Device Exemption (IDE) application
to the Food and Drug Administration ("FDA") on January 9, 1999 for the purpose
of obtaining permission from the FDA to start a clinical trial of the
NOVAGOLD(TM) breast implant in the United States. The FDA responded on February
11, 1999 with certain deficiencies related to the IDE submission that required a
Company response. The Company resubmitted its NOVAGOLD(TM) IDE submission on
March 28, 2000 with responses to the FDA's noted deficiencies and additional
information pertaining to the NOVAGOLD(TM). The Company's application approving
the IDE is still pending the results of additional testing. Clinical trials in
the United States cannot commence until the FDA approves the Company's IDE
application.

The Company's ability to obtain permission to proceed with its IDE and begin
clinical trials cannot be anticipated at this time due to a lack of the
necessary capital required to proceed with the testing of the NOVAGOLD(TM)
product and the evaluation of the test results. Consequently, unless or until
such time as the Company obtains sufficient funding, it may never be able to
determine whether its NOVAGOLD(TM) product is suitable for sale in the United
States.

On April 22, 1999, the Company submitted a 510k application to obtain clearance
from the FDA for the NOVASALINE(TM) inflatable breast implant. On June 8, 1999,
the Company submitted a 510k application to obtain clearance for the
NOVASALINE(TM) pre-filled breast implant. The Company subsequently obtained
scientific clearance to market both products subject to an audit of the
designated manufacturing facility. However, the FDA announced on August 18, 1999
(21 CFR Part 878), that all companies involved in the sale of saline filled
implants in the United States must evidence the collection of sufficient
clinical information through the submission of a Pre- Market Approval (PMA)
document by November 17, 1999 in order to continue or commence the distribution
of saline filled implants. Since the Company had not commenced the sale of
saline filled implants in the United States, it was unable to produce the
requisite clinical data that would satisfy the FDA's requirement. The Company is
currently not in the position to pursue an IDE for either of its NOVASALINE(TM)
breast implants due to the high cost of conducting appropriate clinical trials,
in addition to continuing regulatory and competitive marketing developments.

The Company decided to relocate and consolidate its German operating facilities
to the Company's headquarters in Minneapolis, Minnesota in December 2000. The
decision was made due to the lack of substantial revenues at year end from sales
in Europe with an indefinite prospect of future revenues coupled with the
expense of operating two manufacturing facilities in two separate countries. The
termination of the Inamed Agreement, the MDA device alert, and the Company's
inability to re-certify the CE Mark for the NOVAGOLD(TM) breast implant product
were added factors crucial to the decision. Management agreed that in order to
increase manufacturing efficiencies and faithfully address quality control
issues that a consolidation of all activities in Minneapolis would be in the
best interests of the Company. Accordingly, all plans to construct a new
facility in Germany to increase manufacturing capabilities in Germany by taking
advantage of German loan and grant programs have been abandoned.




                                        5

<PAGE>



The Company will now devote its resources to improving its facilities at 623
Hoover Street, Minneapolis, Minnesota. Management believes that the relocation
and consolidation of the Company's office and manufacturing facilities will
decrease costs and improve efficiencies until such time as the Company is able
to obtain a new CE mark and progress the FDA approval process. Management
believes that when and if revenues are realized through sales in Europe or the
United States at some future juncture, that consolidation of the Company's
business will enable profitable operations.

Results of Operations

Net sales were $0 for the three and nine months ended September 30, 2001,
compared to $245,000 for the three months and $990,000 for the nine months ended
September 30, 2000, a decrease of 100% for the three and nine month periods
ended September 30, 2001. The decrease in net sales was the result of a
suspension of sales of the Company's products due to the MDA alert notice and
the refusa l of German regulatory authorities to re-certify our products for
sale in Europe.

Cost of Sales

Cost of sales were $662 for the three months ended on September 30, 2001,
compared to $116,000 for the comparable period in 2000, a decrease of 99% for
the three month period ended September 30, 2001. Cost of sales were $29,058 for
the nine months ended on September 30, 2001, compared to $486,000 for the
comparable period in 2000, a decrease of 94% for the nine month period ended
September 30, 2001. The decrease in cost of sales was a result of limited
operations.
Losses

The Company recorded net losses of $119,639 for the three months ended September
30, 2001, compared to $80,000 for the comparable period in 2000, a decrease of
50% for the three month period ended September 30, 2001. The increase was the
result of write downs of the inventory valuation, limited operations coupled
with a corresponding reduction in expenses. .

The Company recorded net losses of $538,830 for the nine months ended September
30, 2001, compared to $559,000 for the comparable period in 2000, an decrease of
4% for the nine month period ended September 30, 2001. The decrease was the
result of limited operations coupled with a corresponding reduction in expenses
 .

The Company expects to continue to incur losses at least through fiscal 2001 and
there can be no assurance that the Company will achieve or maintain
profitability or that revenue will be forthcoming in the future.

Expenses

Selling, general and administrative expenses were $69,017 for the three months
ended September 30, 2001, as compared to $213,000 for the comparable period in
2000, a decrease of 68% for the three month period ending September 30, 2001.
The decrease in selling, general and administrative costs was the result of
limited operations and the lack of costs that were associated with the operation
of the Company's former German subsidiary. Selling, general and administrative
expenses were $459,772 for the nine months ended September 30, 2001, as compared
to $1,011,000 for the comparable period in 2000.

Capital Resources and Liquidity

Historically, the Company has expended significant resources on research and
development which includes regulatory compliance expenses and marketing. The
trend is likely to continue into the near future, should funds become available,
as the Company plans to re-certify regulatory compliance for its products in
Europe and continue in its efforts to introduce products into the United States.


                                        6

<PAGE>



Therefore, the Company does not expect a change from using cash in operating
activities to providing cash from operating activities until the Company is able
to rectify its products and generate sales while controlling costs.

At September 30, 2001, the Company had current assets of $82,802 and total
assets of $120,354. At September 30, 2001 the Company had a net working deficit
of $59,571.

Net cash flow used in operations were $208,181 for nine months ended September
30, 2001 as compared to cash flows used in operations of $292,000 for the
comparable period in 2000. The decrease in cash flows used in operations for the
nine months ended September 30, 2001, was mainly the result of the issuances of
stock for royalties and licenses as well as increases in inventory reserves.

Cash flow generated from financing activities was $200,000 for the nine months
ended September 30, 2001 and $165,000 for the comparable period in 2000. The
Company's financing activities consisted of issuing eight convertible debentures
with a face value of $25,000 each.

The Company has funded its cash needs from inception through September 30, 2001
with revenues from operations, a series of debt and equity transactions,
including several private placements and issuance of convertible debentures. The
Company expects its cash needs over the next twelve months will be meet
primarily by new cash infusions.


                                     PART II

ITEM 1.           LEGAL PROCEEDINGS

         The Company is not a party to any material legal proceedings.


ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits.Exhibits required to be attached by Item 601 of Regulation S-B
         are listed in the Index to Exhibits on page 9 of this Form 10-QSB, and
         are incorporated herein by this reference.

(b)      Reports on Form 8-K.
         The Company did not file a Form 8-K during the quarter covered by this
report.



                                        7

<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, this 5th day of November, 2001.




NOVAMED, INC.


/s/ Ruairidh Campbell
----------------------------------
Ruairidh Campbell                                       November 14, 2001
President, Chief Executive Officer and Director







                                        8

<PAGE>


                                INDEX TO EXHIBITS


EXHIBIT  PAGE
NO.      NO.    DESCRIPTION

3(i)     *     Articles of Incorporation of the Company formerly known as
               Conceptual Technologies, Inc., a Nevada corporation dated
               November 26, 1996. (Incorporated herein by reference to the
               Company's Form 10SB/A-1 filed on November 2, 1999 as exhibit
               2(i)).

3(ii)    *     By-laws of the Company adopted on November 12, 1996.(Incorporated
               herein by reference to the Company's Form 10SB/A-1 filed on as
               exhibit 2(iv)).


                                    MATERIAL CONTRACTS

No Material Contracts were entered into during the quarter ended September 30,
2001.
















                                        9