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 June 30, 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   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 August 7, 2000 was 15,531,464.

                                        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  June  30,  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-5 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 June 30, 2000 (unaudited)......................F-2



Consolidated statement of operations for three months
and six months ended June 30, 2000 and 1999 (unaudited)......................F-3



Consolidated statement of cash flows for the six months
ended June 30, 2000 and 1999 (unaudited).....................................F-4



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





                                                                             F-1


<PAGE>


                                                                   NOVAMED, INC.
                                                      Consolidated Balance Sheet

                                                       June 30, 2000 (Unaudited)

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

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

Assets

Current assets:
         Cash                                                                           $           18,000
         Receivables, net                                                                          278,000
         Inventories                                                                               443,000
                                                                                        ------------------

Current assets                                                                                     739,000

Property and equipment, net                                                                         64,000
Other assets                                                                                        22,000
                                                                                        ------------------

                                                                                        $          825,000
                                                                                        ==================

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

                           Liabilities and Stockholders' Deficit

Current liabilities:
         Cash Overdraft                                                                  $          27,000
       Accounts payable and accrued liabilities                                                    623,000
         Related party payables                                                                    127,000
                                                                                        ------------------

                                    Total current liabilities                                      777,000
                                                                                        ------------------

Commitments and contingencies                                                                            -

Stockholders' equity:
         Common stock, par value $.001 per share;
           authorized 50,000,000 shares, issued and
           outstanding 15,531,464 shares                                                            16,000
         Additional paid-in capital                                                              5,334,000
         Stock subscription receivable                                                            (418,000)
         Cumulative translation adjustment                                                          60,000
         Accumulated deficit                                                                    (4,944,000)
                                                                                        ------------------

                                    Total stockholders' equity                                      48,000
                                                                                        ------------------

                                                                                        $          825,000
                                                                                        ==================
</TABLE>



                 See Notes to Consolidated Financial Statements

                                                                             F-2


<PAGE>


                                                                   NOVAMED, INC.

                                            Consolidated Statement of Operations

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



<TABLE>
<CAPTION>


                                                 Three Months Ended               Six Months Ended
                                                      June 30,                        June 30,
                                                    (Unaudited)                     (Unaudited)

                                          ----------------------------------------------------------------
                                                    2000            1999            2000            1999
                                          ----------------------------------------------------------------
<S>                                      <C>                <C>            <C>             <C>
Net sales                                 $        375,000  $      552,000  $      745,000  $      986,000
                                          ----------------------------------------------------------------

Costs and expenses:
  Cost of sales                                    111,000         454,000         370,000         691,000
  Selling, general and administrative              413,000         289,000         798,000         648,000
  Research and development                          44,000         156,000          56,000         204,000
                                          ----------------------------------------------------------------
                                                   568,000         899,000       1,224,000       1,543,000
                                          ----------------------------------------------------------------
Operating loss                                    (193,000)       (347,000)       (479,000)       (557,000)

Other income                                             -         100,000               -         100,000
                                          ----------------------------------------------------------------
Loss before income taxes                          (193,000)       (247,000)       (479,000)       (457,000)

Income taxes                                             -               -               -               -
                                          ----------------------------------------------------------------
         Net loss                         $       (193,000) $     (247,000) $     (479,000) $     (457,000)
                                          ================================================================
Loss per common shares -
  basic and diluted                       $           (.01) $         (.02) $        (.03)  $         (.03)
                                          ================================================================
Weighted average shares basic and
  diluted                                       15,479,000      13,579,000      15,341,000      13,513,000
                                          ================================================================
</TABLE>








                 See Notes to Consolidated Financial Statements

                                                                             F-3


<PAGE>


                                                                   NOVAMED, INC.

                                            Consolidated Statement of Cash Flows

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

<TABLE>
<CAPTION>

                                                                                Six Months Ended
                                                                                    June 30,
                                                                                   (Unaudited)
                                                                       -------------------------------
                                                                             2000              1999
                                                                       -------------------------------
<S>                                                                   <C>            <C>
Cash flows from operating activities:

Net loss                                                               $    (479,000  $       (457,000)
Adjustments to reconcile net income (loss) to
  net cash provided by (used in) operating activities:
         Depreciation                                                         13,000             2,000
         Stock issued for services                                            20,000           220,000
         Stock based compensation                                                  -           128,000
         Royalty expense                                                      21,000                 -
            (Increase) decrease in:
                  Receivables                                                (46,000)          (41,000)
                  Inventories                                                315,000           183,000
                  Prepaid expenses                                                 -           (25,000)
                  Other                                                       37,000                 -
         Increase (decrease) in:
                  Cash Overdraft                                             (13,000)
            Accounts payable and accrued liabilities                        (197,000)          (50,000)
                  Related party payable                                      127,000           (16,000)
                                                                       -------------------------------

Net cash provided by (used in)
operating activities                                                        (202,000)           44,000
                                                                       -------------------------------
Cash flows from investing activities-
                                                                                   -                 -
                                                                       -------------------------------
Cash flows from financing activities:

         Issuance of common stock                                            145,000            55,000
                                                                       -------------------------------
Effect of exchange rate changes on cash                                       59,000           (10,000)
                                                                       -------------------------------
Net increase (decrease) in cash                                                2,000            89,000

Cash, beginning of period                                                     16,000           130,000
                                                                       -------------------------------
Cash, end of period                                                    $      18,000  $        219,000
                                                                       ===============================
</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 June 30, 2000 and the results of  operations
     for the six months and three  months  ended June 30, 2000 and 1999 and cash
     flows for the six  months  ended  June 30,  2000 and 1999.  The  results of
     operations  and cash flows for the six months and three  months  ended June
     30, 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 June 30, 2000 and 1999, respectively.

(3)  During  the six  months  ended  June  30,  2000,  NovaMed  decreased  stock
     subscription receivable and recognized $21,000 in royalty expense, due to a
     stockholder paying the royalty expense on behalf of NovaMed.

                                                                             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
NOVAGOLD(TM)  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  NOVASALINE(TM)  breast implant
product.  The Company has not  obtained FDA approval to sell any of its products
in the United States.

The  NOVAGOLD(TM)  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 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  $375,000 for the three  months ended June 30, 2000,  compared to
$552,000  for the  comparable  period in 1999,  a decrease  of 32% for the three
month period ended June 30, 2000.  The decrease in net sales was due to the drop
in the number of orders for the Company's products outside of Germany by foreign
distributors uncertain as to their status as sellers of the Company's products.

                                        4


<PAGE>




Cost of Sales

Cost of sales  were  $111,000  for the  three  months  ended  on June 30,  2000,
compared to $454,000  for the  comparable  period in 1999, a decrease of 76% for
the three month period ended June 30, 2000.  The decrease in cost of sales was a
result of a reduction in  manufacturing  activities due to the decrease in sales
and rise in product inventory levels as compared to the corresponding period.

Losses

The Company  recorded net losses of $193,000 for the three months ended June 30,
2000,  compared to $247,000 for the comparable period in 1999, a decrease of 22%
for the three month  period ended June 30, 2000 . The decrease in losses was the
result of limited  research and development  expenditures  and a decrease in the
cost of sales 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 revenue growth can be sustained in the future.

Expenses

Selling,  general and administrative expenses were $413,000 for the three months
ended June 30, 2000 as compared to $289,000 for the  comparable  period in 1999,
an increase of 30% for the three month period ending June 30, 2000. The increase
in selling,  general and administrative costs was the result of costs related to
new marketing efforts to increase sales 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 second quarter in 2001 when sales are anticipated
to increase over costs.

At June 30, 2000, the Company had current assets of $739,000 and total assets of
$825,000.  At June 30,  2000 the  Company had  negative  net working  capital of
$38,000.

Net cash flow used in  operations  were  $202,000  for six months ended June 30,
2000 as  compared  to cash flows  provided  from  operations  of $44,000 for the
comparable period in 1999. The increase in cash flows used in operations for the
six months ended June 30, 2000,  resulted in a decrease in accounts  payable and
accrued liabilities.

Cash flow generated  from  financing  activities was $145,000 for the six months
ended June 30,  2000 and $ 55,000 for the  comparable  period in 1999.  The cash
flow was generated from the exercise of common stock options.

The Company has funded its cash needs from inception  through June 30, 2000 with
a revenues from operations, a series of debt and equity transactions,  including
several  private  placements  and a loan.  The Company  expects to fund its cash
needs in this  varied  manner  over the next  twelve  months  until such time as
product sales exceed our expenses.

                                        5


<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 8 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 11th day of August 2000.

NOVAMED, INC.

/s/  Ruairidh Campbell                            August 11 , 2000
------------------------------------
Ruairidh Campbell
President, Chief Executive
Officer and Director







                                        7


<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  10-SB  filed on August  4, 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
                    10-SB filed on August 4, 1999 as exhibit 2(iv)).

27        9         Financial Data Schedule "CE"


                               MATERIAL CONTRACTS

No Material Contracts were entered into during the quarter ended June 30, 2000.














                                        8


<PAGE>