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, 1999.

   [ ]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                       NO XX

         The number of outstanding  shares of the issuer's common stock,  $0.001
par value  (the  only  class of  voting  stock),  as of  November  10,  1999 was
13,845,852.

                                        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 INTENTIONALLY LEFT BLANK]


                                        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, 1999 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>

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

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





                                                                        PAGE

Consolidated balance sheet at September 30, 1999 (unaudited).................F-2

Consolidated statement of operations for three months
     and nine months ended September 30, 1999 and 1998 (unaudited)...........F-3

Consolidated statement of cash flows for the nine months
     ended September 30, 1999 and 1998 (unaudited)...........................F-4

Notes to consolidated financial statements...................................F-5












                                                                             F-1

<PAGE>


                                                                   NOVAMED, INC.



                                                      CONSOLIDATED BALANCE SHEET
                                                  SEPTEMBER 30, 1999 (UNAUDITED)

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



                                     ASSETS

Current assets:

     Cash                                                    $           72,905
     Receivables, net                                                   344,658
     Inventories                                                        670,439
     Prepaid expense                                                          -
                                                             ------------------

                  Current assets                                      1,088,002

Property and equipment, net                                              44,580
Other assets                                                             73,768
                                                             ------------------
                                                             $        1,206,350
                                                             ------------------


                      LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

     Accounts payable and accrued liabilities                $          964,842
     Related party payables                                              69,622
                                                             ------------------

                  Total current liabilities                           1,034,464
                                                             ------------------

Commitments and contingencies                                                 -
                                                             ------------------

                  Total liabilities                                   1,034,464
                                                             ------------------

Stockholders' equity:

     Common stock, par value $.001 per share;
       authorized 50,000,000 shares, issued and

       outstanding 13,845,852 shares                                     13,846
     Additional paid-in capital                                       4,266,480
     Stock subscription receivable                                      (55,000)
     Cumulative translation adjustment                                   65,615
     Accumulated deficit                                             (4,119,055)
                                                             ------------------

                  Total stockholders' equity                            171,886
                                                             ------------------
                  Total liabilities and
                    stockholders' equity                     $        1,206,350
                                                             ------------------


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

                 See Notes to Consolidated Financial Statements

                                                                             F-2


<PAGE>


                                                                   NOVAMED, INC.



<TABLE>
<CAPTION>

                                            CONSOLIDATED STATEMENT OF OPERATIONS

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





                                                 Three Months Ended              Nine Months Ended
                                                   September 30,                   September 30,

                                                    (Unaudited)                     (Unaudited)

                                          ----------------------------------------------------------------
                                                    1999            1998           1999            1998
                                          ----------------------------------------------------------------
<S>                                       <C>                 <C>             <C>             <C>
Net sales                                 $        318,511    $    237,433     $ 1,304,638     $   871,564
                                          ----------------------------------------------------------------

Costs and expenses:

  Cost of sales                                    173,920         178,417         714,892         650,571
  Selling, general and administrative              367,761         611,274       1,165,750         825,342
  Research and development                           3,456               -         207,556               -
                                          ----------------------------------------------------------------
                                                   545,137         789,691       2,088,198       1,475,913
                                          ----------------------------------------------------------------

Operating loss                                    (226,626)       (552,258)       (783,560)       (604,349)

Other income                                           210               -         100,597               -
                                          ----------------------------------------------------------------

Loss before income taxes                          (226,416)       (552,258)       (682,963)       (604,349)

Income taxes                                             -               -               -               -
                                          ----------------------------------------------------------------

     Net loss                             $       (226,416      $ (552,258)    $  (682,963)     $ (604,349)
                                          ----------------------------------------------------------------

Loss per common shares -
  basic and diluted                       $           (.02)    $     (.07)    $      (.05)     $     (.13)
                                          ----------------------------------------------------------------

Weighted average shares basic and
  diluted                                       13,513,000       7,492,000      13,634,000       4,692,000
                                          ----------------------------------------------------------------
</TABLE>



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


                 See Notes to Consolidated Financial Statements
                                                                            F-3


<PAGE>


                                                                   NOVAMED, INC.



                                            CONSOLIDATED STATEMENT OF CASH FLOWS

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


<TABLE>
<CAPTION>

                                                                                Nine Months Ended
                                                                                  September 30,

                                                                                   (Unaudited)

                                                                       -----------------------------------
                                                                             1999              1998
                                                                       -----------------------------------
<S>                                                                    <C>                   <C>

CASH FLOWS FROM OPERATING ACTIVITIES:

     Net loss                                                          $        (682,963)    $    (604,349)
     Adjustments to reconcile net income (loss) to
       net cash provided by (used in) operating activities:

         Depreciation                                                              3,803             6,762
         Stock issued for services                                               220,000                 -
         Stock based compensation                                                127,803                 -
         (Increase) decrease in:

              Receivables                                                        (13,832)         (103,010)
              Inventories                                                       (187,139)           69,932
              Prepaid expenses                                                     1,707            24,318
              Other                                                              (73,768)          (17,902)
         Increase (decrease) in:

              Accounts payable and accrued liabilities                           523,538            92,078
              Related party payable                                             (109,778)       (3,226,441)
                                                                       -----------------------------------

                  Net cash provided by (used in)

                  operating activities                                          (190,629)       (3,758,612)
                                                                       -----------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES-

     purchase of property and equipment                                          (12,307)           (9,995)
                                                                       -----------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:

     Proceeds from note payable                                                        -                 -
     Issuance of common stock                                                    165,000         4,067,752
                                                                       -----------------------------------

                  Net cash provided by

                  financing activities                                           165,000         4,067,752
                                                                       -----------------------------------

Effect of exchange rate changes on cash                                          (18,913)          (27,786)
                                                                       -----------------------------------

Net increase (decrease) in cash                                                  (56,849)          271,359

Cash, beginning of period                                                        129,754            46,465
                                                                       -----------------------------------

Cash, end of period                                                    $          72,905$          317,824
                                                                       -----------------------------------
</TABLE>


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


                 See Notes to Consolidated Financial Statements

                                                                             F-4


<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  September  30,  1999  and the  results  of
     operations  for the nine months and three months ended  September  30, 1999
     and 1998 and cash flows for the nine months  ended  September  30, 1999 and
     1998.  The  results of  operations  and cash flows for the nine  months and
     three months ended September 30, 1999 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 September 30, 1999 and 1998, respectively.














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



                                                                             F-5


<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 NOVAGOLD(TM) AND THE  NOVASALINE(TM).
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 State.

The Company had anticipated being able to sell the NOVASALINE(TM)  implants into
the United States by the end of 1999.  However,  the FDA announced on August 19,
1999 (21 CFR Part 878) that all saline filled implants sold in the United States
must  evidence the  collection of sufficient  clinical  information  through the
submission to the FDA of a Pre-Market  Approval  (PMA)  document by November 17,
1999 in order to continue distribution of saline filled implants. The Company is
yet to place either the  pre-filled or inflatable  NOVASALINE(TM)  implants into
production for  distribution  in the United States and as a result does not have
the requisite clinical  information that would satisfy the FDA's call for a PMA.
Therefore, the Company does not expect to be able to market in the United States
either the pre-filled  NovaSaline(TM) product nor the inflatable  NovaSaline(TM)
product  prior to 2002.  The Company  intends to file an IDE for the  pre-filled
NovaSaline(TM)  product which will require at least eighteen  months of clinical
study and  submission  to the FDA prior to  receiving  clearance  to market this
product in the United States. The Company has no present intention of conducting
a clinical  trial for the  inflatable  NovaSaline(TM)  though  this  decision is
subject to ongoing regulatory and competitive marketing  developments.  Further,
the Company must pass a FDA audit of the Minneapolis,  Minnesota  facility prior
to manufacturing  products for sale in the United States. The Company reasonably
expects to pass an FDA audit prior to  obtaining  clearance  for  marketing  its
products in the United States.

THE NOVAGOLD(TM) product has been submitted  to the FDA for  review and approval

                                        4


<PAGE>



under  an  InvestigationDevice  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 NOVAGOLD(TM) 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  $318,511  and  $1,304,638  for the three and nine  months  ended
September 30, 1999,  compared to $237,433 and $871,564 for the comparable period
in 1998,  an  increase  of 34% for the three  month  period and 50% for the nine
period ended September 30 ,1999.  The increase in net sales was the result of an
increased demand for the Company's product in Germany.

COST OF SALES

Costs of sales were $173,920 and $714,892 for the three and nine months ended on
September 30, 1999, compared to $178,417 and $650,571 for the comparable periods
in 1998. The costs of sales  decreased in relation to net sales as a result of a
decrease in selling, general and adminstrative expenses.


LOSSES

The Company  recorded net losses of $226,416 and $682,963 for the three and nine
months ended  September 30, 1999 as compared to net losses $552,258 and $604,349
for the comparable  period in 1998. The  substantial  decrease in losses for the
three months ended September 30, 1999, were attributable to an increase in sales
and a substantial decrease in selling,  general and administrative  expenses for
the quarter.

The Company expects to continue to incur losses at least through fiscal 1999 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 $367,761 and $1,165,750 for
the three and nine months ended  September  30, 1999 as compared to $611,274 and
$825,342  for  the  comparable   period  in  1998.  The  selling,   general  and
administrative  costs  decreased  $243,513or  40% for  the  three  months  ended
September  30,  1999 over the  comparable  period as a result of a  decrease  in
outside consulting fees paid. However, selling, general and administrative costs
increased $340,408 or 41% for the nine months ended September 30, 1999, over the
comparable period in 1998 as result of increased marketing activities.

CAPITAL RESOURCES AND LIQUIDITY

Historically,  the Company has  expended  significant  resources on Research and
Development which includes regulatory  compliance expenses.  The trend is likely
to continue into the near future as new products seek introduction in the United
States.  However,  sales are now rising  significantly,  therefore,  the Company
expects a swing from using cash in operating  activities to providing  cash from
operating activities for the last quarter in 1999.

At September 30, 1999,  the Company had current  assets of $1,088,002  and total
assets of  $1,206,350  as compared to $945,587  and  $981,663,  respectively  at
December 31, 1998. At September 30, 1999, the Company had net working capital of
$53,538.

Net cash flow used in operations  were $190,629 for nine months ended  September
30, 1999 as  compared  to cash flows used in  operation  of  $3,758,612  for the
comparable  period in 1998.  The  substantial  decrease  in cash  flows  used in
operations  for  the  nine  months  ended  September  30,  1999,  was  primarily
attributable to a $3,648,834 decrease in related party payables.

                                        5


<PAGE>




Cash flow generated  from financing  activities was $165,000 for the nine months
ended  September 30, 1999 and $4,067,752 for the comparable  period in 1998. The
Company's financing  activities primarily consisted of private placements of its
common stock.

The Company has funded its cash needs from inception  through September 30, 1999
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.


                                     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 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.



                                        6


<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 day of November 1999.

NOVAMED, INC.

      /s/
--------------------
Ruairidh Campbell                                       November 15 , 1999
President, Chief Executive Officer and Director


    /s/                                                 November 15 , 1999
--------------------
Ruairidh Campbell
Chief Financial Officer




                                        7


<PAGE>



                                INDEX TO EXHIBITS

EXHIBIT       PAGE         DESCRIPTION

NO.      NO.

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  CONTRACT WERE ENTERED INTO DURING THE QUARTER  ENDED  SEPTEMBER 30,
1999.

27       9            Financial Data Schedule  "CE"





                                        8