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 March 31, 2000.

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

         Commission file number: 0-26927
                                 -------


                                  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
 incorporation or organization)                         Identification No.)





                 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 XX           No

The number of outstanding shares of the issuer's common stock,  $0.001 par value
(the only class of voting stock), as of May 11, 2000 was 15,531,464.

                                        1


<PAGE>



                                TABLE OF CONTENTS

                                     PART I

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

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION...........5


                                     PART II

ITEM 1.  LEGAL PROCEEDINGS...................................................7

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K....................................7


SIGNATURES...................................................................8

INDEX TO EXHIBITS............................................................9











                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]

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<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  March  31,  2000 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-4 and are incorporated herein by
this reference.

                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY.]











                                        3


<PAGE>



                                                                   NOVAMED, INC.

                                      Index to Consolidated Financial Statements

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





                                                                         Page

Consolidated balance sheet at March 31, 2000 (unaudited)                 F-1



Consolidated statement of operations for three months
ended March 31, 2000 and 1999 (unaudited)                                F-2



Consolidated statement of cash flows for the three months
ended March 31, 2000 and 1999 (unaudited)                                F-3



Notes to consolidated financial statements                               F-4




                                        4


<PAGE>



                                                                   NOVAMED, INC.
                                                      Consolidated Balance Sheet

                                                      March 31, 2000 (Unaudited)
--------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                      Assets
<S>                                                                                    <C>

Current assets:
              Cash                                                                      $          108,000
              Receivables, net                                                                     172,000
              Inventories                                                                          529,000
              Prepaid expense                                                                        6,000
                                                                                        ------------------

                           Current assets                                                          815,000

Property and equipment, net                                                                         69,000
Other assets                                                                                        21,000
                                                                                        ------------------

                           Total assets                                                 $          905,000
                                                                                        ==================

----------------------------------------------------------------------------------------------------------
                      Liabilities and Stockholders' Equity

Current liabilities:
              Accounts payable and accrued liabilities                                  $          695,000
              Related party payables                                                                94,000
                                                                                        ------------------

                           Total current liabilities                                               789,000
                                                                                        ------------------

Commitments and contingencies                                                                            -

Stockholders' equity:
              Common stock, par value $.001 per share;
                authorized 50,000,000 shares, issued and
                outstanding 15,416,000 shares                                                       15,000
              Additional paid-in capital                                                         5,269,000
              Stock subscription receivable                                                       (407,000)
              Cumulative translation adjustment                                                    (11,000)
              Accumulated deficit                                                               (4,750,000)
                                                                                        ------------------

                           Total stockholders' equity                                              116,000
                                                                                        ------------------

                           Total liabilities and stockholders' equity                   $          905,000
                                                                                        ==================
</TABLE>




                                                                             F-1


<PAGE>



                                                                   NOVAMED, INC.

                                            Consolidated Statement of Operations

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




<TABLE>
<CAPTION>

                                                                                     Three Months Ended
                                                                                         March 31,
                                                                                        (Unaudited)

                                                                         ------------------------------------------
                                                                                    2000                  1999
                                                                         ------------------------------------------
<S>                                                                     <C>                       <C>
Net sales                                                                $             371,000     $        434,000
                                                                         ------------------------------------------

Costs and expenses:
  Cost of sales                                                                        259,000              237,000
  Selling, general and administrative                                                  385,000              359,000
  Research and development                                                              12,000               49,000
                                                                         ------------------------------------------

                                                                                       656,000              645,000
                                                                         ------------------------------------------

Loss before income taxes                                                              (285,000)            (211,000)

Provision for income taxes                                                                   -                    -
                                                                         ------------------------------------------

              Net loss                                                   $            (285,000$    $       (211,000)
                                                                         ===========================================

Loss per common share -
  basic and diluted                                                      $                (.02)    $          (.02)
                                                                         ==========================================

Weighted average common shares - basic and
  diluted                                                                           15,200,000           13,446,000
                                                                         ==========================================
</TABLE>





                                                                             F-2


<PAGE>



                                                                   NOVAMED, INC.

                                            Consolidated Statement of Cash Flows

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


<TABLE>
<CAPTION>
                                                                               Three Months Ended
                                                                                    March 31,
                                                                                   (Unaudited)
                                                                       -----------------------------------
                                                                             2000              1999
                                                                       -----------------------------------
Cash flows from operating activities:
<S>                                                                   <C>                 <C>

              Net loss                                                 $        (285,000   $      (211,000)
              Adjustments to reconcile net loss to
                net cash used in operating activities:
                  Depreciation                                                     8,000             1,000
                  (Increase) decrease in:
                      Receivables                                                 60,000            33,000
                      Inventories                                                229,000           141,000
                      Prepaid expenses                                            (6,000)            2,000
                      Other assets                                                38,000           (87,000)
                  Increase (decrease) in:
                      Cash overdraft                                             (40,000)                -
                      Accounts payable and accrued liabilities                  (125,000)          223,000
                      Related party payables                                      94,000          (108,000)
                                                                       -----------------------------------

                           Net cash used in
                           operating activities                                  (27,000)           (6,000)
                                                                       -----------------------------------

Cash flows from investing activities-                                                  -                 -
                                                                       -----------------------------------

Cash flows from financing activities:

              Collection of stock subscription receivable                         33,000                 -
              Issuance of common stock                                            98,000                 -
                                                                       -----------------------------------

                           Net cash provided by
                           financing activities                                  131,000                 -
                                                                       -----------------------------------

Effect of exchange rate changes on cash                                          (12,000)          (30,000)
                                                                       -----------------------------------

Net increase (decrease) in cash                                                   92,000           (36,000)

Cash, beginning of period                                                         16,000           130,000
                                                                       -----------------------------------

Cash, end of period                                                    $         108,000   $        94,000
                                                                       ===================================
</TABLE>




                                                                             F-3


<PAGE>



                                                                   NOVAMED, INC.

                                      Notes to Consolidated Financial Statements

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



(1)  The unaudited  consolidated  financial  statements  include the accounts of
     NovaMed,  Inc. and include all adjustments  (consisting of normal recurring
     items) which are, in the opinion of management, necessary to present fairly
     the  financial  position as of March 31, 2000 and the results of operations
     and cash flows for the three  months  ended  March 31,  2000 and 1999.  The
     results of  operations  and cash flows for the three  months March 31, 2000
     are not necessarily indicative of the results to be expected for the entire
     year.

(2)  Loss  per  share  is  based  on  the  weighted  average  number  of  shares
     outstanding at March 31, 2000 and 1999, respectively.
















                                                                             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 develops,  manufactures,  and markets  hydrogel and
saline filled breast  implant  products that are used in primary  augmentations,
revisions, or reconstructive procedures.

The Company  manufactures  and markets two  different  pre-filled  single  lumen
mammary  prostheses  (breast  implants),  the NOVAGOLDTM and the  NOVASALINETM .
These  products  are  designed to address the safety  concerns  associated  with
silicone gel-filled  implants,  as voiced by the FDA's decision in April of 1992
which  mandated that silicone gel implants  would  thereafter  only be available
under controlled  clinical studies.  Both products are used for routine cosmetic
breast augmentation and for breast reconstruction  following either subcutaneous
or modified radical mastectomy. The Company's flagship product is the NOVAGOLDTM
breast  implant,  which  utilizes a unique water based filling  material that is
designed to be  biocompatible  and therefore safe for human use. The Company has
further developed an inflatable NOVASALINETM breast implant product. The Company
has not obtained FDA approval to sell any of its products in the United States.

The  NOVAGOLDTM  product has been  submitted  to the FDA for review and approval
under the Investigational Device Exemption  ("IDE")/Pre-Market  Approval ("PMA")
process.  The IDE includes  the  clinical  protocol,  a risk  assessment,  and a
strategic  plan as to how risks are minimized and handled in the event of device
failure.  Upon  FDA  acceptance  of the  IDE and the  collection  of  sufficient
clinical data from controlled  clinical  trials, a PMA summary will be submitted
to the FDA.  The FDA  reviews  the PMA and  grants  or  withholds  approval.  If
approved,  the NOVAGOLDTM  may be sold freely in the United States.  The Company
anticipates  that the product  could be cleared  for full market  release in the
U.S. by 2004.  There is no guarantee the Company will obtain approval by 2004 or
may never be able to obtain FDA approval

Results of Operations

Net sales were  $371,000 for the three months ended March 31, 2000,  compared to
$434,000  for the  comparable  period in 1999,  a decrease  of 15% for the three
month period ended March 31, 2000. The decrease in net sales was the result of a
decrease in orders for the Company's products outside of Germany.

Cost of Sales

Cost of sales  were  $259,000  for the three  months  ended on March  31,  2000,
compared to $237,000 for the  comparable  period in 1999,  an increase of 9% for
the three month period ended March 31, 2000. The increase in cost of sales was a
result of an increase in direct labor costs.

                                        5


<PAGE>



Losses

The Company recorded net losses of $285,000 for the three months ended March 31,
2000, compared to $211,000 for the comparable period in 1999, an increase of 35%
for the three month period ended March 31, 2000 . The increase in losses was the
result of the  decrease  in net  sales,  the  increase  in cost of sales and the
increase in selling, general and administrative expenses for the period.

The Company expects to continue to incur losses at least through fiscal 2000 and
there  can  be  no   assurance   that  the  Company  will  achieve  or  maintain
profitability or that its revenue growth can be sustained in the future.

Expenses

Selling,  general and administrative expenses were $385,000 for the three months
ended March 31, 2000 as compared to $359,000 for the comparable  period in 1999,
an increase of 7% for the three month period ending March 31, 2000. The increase
in selling,  general and administrative costs was the result of costs related to
efforts made to obtain government guaranteed funding in Germany.

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  as new  products  seek
introduction in the United States and new expenses are incurred in marketing the
Company's  products  outside of North America.  Therefore,  the Company does not
expect a change from using cash in operating  activities to providing  cash from
operating  activities  until the last quarter in 2000 when sales are anticipated
to increase over costs.

At March 31, 2000,  the Company had current  assets of $815,000 and total assets
of $905,000. At March 31, 2000 the Company had net working capital of $26,000.

Net cash flow used in  operations  were $27,000 for three months ended March 31,
2000 as compared to cash flows used in operations  of $6,000 for the  comparable
period in 1999.  The  increase  in cash flows used in  operations  for the three
months  ended March 31, 2000,  was the result of a decrease in accounts  payable
and an increase in the quarter to date loss.

Cash flow generated from financing  activities was $131,000 for the three months
ended March 31, 2000 and $0 for the  comparable  period in 1999.  The  Company's
financing  activities  primarily  consisted of private  placements of its common
stock.

The Company has funded its cash needs from inception through March 31, 2000 with
a revenues from operations, a series of debt and equity transactions,  including
several private placements and a convertible bond issuance.  The Company expects
its cash needs to be primarily  satisfied  from sales of its  products  over the
next twelve months.

                                        6


<PAGE>



                                     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. No reports were filed on Form 8-K during the quarter.





                                        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 12th day of May 2000.

NOVAMED, INC.

/s/  Ruairidh Campbell
---------------------
Ruairidh Campbell                                       May 12 , 2000
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 March 31, 2000.

                                        9


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