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, 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: 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 21, 2001 was 43,486,464.



<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....................................................8

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

SIGNATURES....................................................................9

INDEX TO EXHIBITS............................................................10











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










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                                        3

<PAGE>



                                                                   NOVAMED, INC.
                                      Index to Consolidated Financial Statements

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





                                                                            Page

Consolidated balance sheet at March 31, 2001 (unaudited)                     F-1



Consolidated statement of operations for three months
ended March 31, 2001 and 2000 (unaudited)                                    F-2



Consolidated statement of cash flows for the three months
ended March 31, 2001 and 2000 (unaudited)                                    F-3



Notes to consolidated financial statements                                   F-4








                                        4

<PAGE>


<TABLE>
<CAPTION>



                                                                        NOVAMED, INC.
                                                           Consolidated Balance Sheet

                                                           March 31, 2001 (Unaudited)
-------------------------------------------------------------------------------------




                      Assets
<S>                                                                   <C>
Current assets:
              Cash                                                      $       8,843
              Inventories, net of allowances                                  129,204
                                                                        -------------

                           Current assets                                     138,047

Property and equipment, net                                                    50,995

                           Total assets                                 $     189,042
                                                                        -------------

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

Current liabilities:
              Accounts payable and accrued liabilities                  $     100,935
              Notes payable                                                    20,000
                                                                        -------------

                           Total current liabilities                          120,935
                                                                        -------------

Convertible Debentures                                                        100,000

Stockholders' equity:
              Common stock, par value $.001 per share;
                authorized 50,000,000 shares, issued and
                outstanding 43,486,464 shares                                  43,487
              Additional paid-in capital                                    6,668,710
              Stock subscription receivable                                  (430,010)
              Accumulated deficit                                          (6,314,080)
                                                                        -------------

                           Total stockholders' equity                         (31,893)
                                                                        -------------

                           Total liabilities and stockholders' equity   $     189,042
                                                                        -------------
</TABLE>




                                       F-1

<PAGE>

<TABLE>
<CAPTION>


                                                                      NOVAMED, INC.
                                               Consolidated Statement of Operations

-----------------------------------------------------------------------------------
                                                           Three Months Ended
                                                               March 31,
                                                              (Unaudited)
                                                   --------------------------------
                                                         2001             2000
                                                   --------------------------------
<S>                                               <C>             <C>
Net sales                                          $               $ -      371,000
                                                   --------------------------------

Costs and expenses:
  Cost of sales/manufacturing                               8,306           259,000
  Selling, general and administrative                     340,398           385,000
  Research and development                                      -            12,000
                                                   --------------------------------

                                                          348,704           656,000
                                                   --------------------------------

Loss before income taxes                                 (348,704)         (285,000)

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

              Net loss                             $     (348,704$         (285,000)
                                                   --------------------------------

Loss per common share -
  basic and diluted                                $           (.$1)           (.02)
                                                   --------------------------------

Weighted average common shares - basic and
  diluted                                              43,486,000        15,200,000
                                                   --------------------------------
</TABLE>





                                       F-2

<PAGE>
<TABLE>
<CAPTION>


                                                                                              NOVAMED, INC.
                                                                       Consolidated Statement of Cash Flows

-----------------------------------------------------------------------------------------------------------
                                                                               Three Months Ended
                                                                                    March 31,
                                                                                   (Unaudited)
                                                                       ------------------------------------
                                                                             2001              2000
                                                                       ------------------------------------
<S>                                                                   <C>                  <C>
Cash flows from operating activities:
              Net loss                                                 $        (348,704    $      (285,000)
              Adjustments to reconcile net loss to
                net cash used in operating activities:
                  Depreciation                                                         -             8,000
                  Stock issued for royalties and license fees                    262,500                 -
                  (Increase) decrease in:
                      Receivables                                                      -            60,000
                      Inventories                                                      -           229,000
                      Prepaid expenses                                                 -            (6,000)
                      Other assets                                                     -            38,000
                  Increase (decrease) in:
                      Cash overdraft                                                   -           (40,000)
                      Accounts payable and accrued liabilities                   (16,732)         (125,000)
                      Related party payables                                           -            94,000
                                                                       -----------------------------------

                           Net cash used in
                           operating activities                                 (102,936)          (27,000)
                                                                       -----------------------------------

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

Cash flows from financing activities:
              Collection of stock subscription receivable                              -            33,000
              Issuance of convertible debentures                                 100,000                 -
              Issuance of common stock                                                 -            98,000
                                                                       -----------------------------------

                           Net cash provided by
                           financing activities                                  100,000           131,000
                                                                       -----------------------------------

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

Net increase (decrease) in cash                                                   (2,936)           92,000

Cash, beginning of period                                                         11,779            16,000
                                                                       -----------------------------------

Cash, end of period                                                    $           8,843    $      108,000
                                                                       -----------------------------------
</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, 2001 and the results of
                  operations and cash flows for the three months ended March 31,
                  2001 and 2000. The results of operations and cash flows for
                  the three months March 31, 2001 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, 2001 and 2000, 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 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  explantation 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.

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


                                        5

<PAGE>



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.

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.








                                        6

<PAGE>



Results of Operations

Net sales  were $0 for the  three  months  ended  March 31,  2001,  compared  to
$371,000  for the  comparable  period in 2000,  a decrease of 100% for the three
month period ended March 31, 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 refusal of German regulatory authorities to re-certify our products for sale
in Europe.

Cost of Sales

Cost of sales were $8,036 for the three months ended on March 31, 2001, compared
to $259,000 for the  comparable  period in 2000, a decrease of 97% for the three
month period ended March 31, 2001. The decrease in cost of sales was a result of
limited operations in the period.

Losses

The Company recorded net losses of $348,704 for the three months ended March 31,
2001, compared to $285,000 for the comparable period in 2000, an increase of 22%
for the three month period ended March 31, 2000 . The increase was the result of
limited  operations  coupled with expenses relating to elimination of the German
subsidiary  and  buyout  of the  license  fees and  royalties  relating  to that
subsidiary.

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 its revenue growth can be sustained in the future.

Expenses

Selling,  general and administrative expenses were $340,398 for the three months
ended March 31, 2001 as compared to $385,000 for the comparable  period in 2000,
a decrease of 12% for the three month period ending March 31, 2000. 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.

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.
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
2001 when the Company once again anticipate sales while controlling costs.

At March 31, 2001,  the Company had current  assets of $138,047 and total assets
of $189,042. At March 31, 2001 the Company had net working capital of $17,112.

Net cash flow used in operations  were $102,936 for three months ended March 31,
2001 as compared to cash flows used in operations of $27,000 for the  comparable
period in 2000.  The  increase  in cash flows used in  operations  for the three
months ended March 31, 2001,  was the result of the  elimination  of revenues in
the period.

Cash flow generated from financing  activities was $100,000 for the three months
ended  March 31,  2001 and  $131,000  for the  comparable  period  in 2000.  The
Company's financing activities consisted of issuing four convertible debentures.

The Company has funded its cash needs from inception through March 31, 2001 with
a 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.



                                        7

<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.   The Company filed the following report on
              Form 8-K.

              The Company  filed a Form 8K dated  January 11, 2001,  disclosing
              the  issuance of  17,500,000  shares of common stock to AAB Corp.
              and  Greaco  II,  Ltd.  in  settlement  of  royalties  due on the
              Company's licensed technology,  as a pre-payment on royalties due
              through May 1,  2001and as an  inducement  to the  licencee's  to
              enter into a new technology licence agreement with the Company.





                                        8

<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 21st day of May 2001.




NOVAMED, INC.

/s/ Ruairidh Campbell
-----------------------------------------------         ------------------
Ruairidh Campbell                                       May 21 , 2001
President, Chief Executive Officer and Director













                                        9

<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, 2001.














































                                       10

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