U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB
                      Annual Report Pursuant to Section 13
                 or 15(d) of the Securities Exchange Act of 1934

                      For the Year Ended December 31, 2000

                           Commission File No. 0-12968

                        INMEDICA DEVELOPMENT CORPORATION

                                 Utah 87-0397815
              -----------------------------------------------------
          (State of Incorporation) (I.R.S. Employer Identification No.)

                               825 North 300 West
                           Salt Lake City, Utah 84103
                                 (801) 521-9300

           Securities Registered Pursuant to Section 12(g) of the Act:
                                             Name of Each Exchange
                Title of Each Class           on which Registered
                -------------------           --------------------

                Common Stock, $.001 par value        None

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or Section  15(d) of the Exchange Act during the past 12 months,  and (2) has
been subject to such filing  requirements  for the past 90 days.  [X] yes [ ] no
Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation SB contained in this form, and no disclosures  will be contained,  to
the best of  registrant's  knowledge,  in any  definitive  proxy or  information
statement  incorporated  by  reference  in Part III of this  Form  10-KSB or any
amendments to this Form 10-KSB [X]

Issuer's  revenues  for its most recent  fiscal year:  $ 52,960.  The  aggregate
market  value of voting stock held by  non-affiliates  of the  registrant  as of
March 9, 2001 was approximately  $750,3561.  The number of shares outstanding of
the issuer's common stock, $.001 par value, as of March 23, 2001 was 8,847,409.

DOCUMENTS INCORPORATED BY REFERENCE: None
--------------------
1 Based on  5,174,869  non-affiliate  shares at $.145 per  share,  which was the
average of the bid and asked price on that date

                                       1
<PAGE>

Item 1. Business General.

InMedica  Development  Corporation  ("InMedica")  was  incorporated  as  a  Utah
corporation  on June 16, 1983.  During the last three fiscal  years,  InMedica's
primary  activity  has been the  operation  of the  business of  MicroCor,  Inc.
("MicroCor"),  a  wholly  owned  subsidiary.  MicroCor  was  acquired  effective
December 31, 1985.  MicroCor has engaged in the  development  or sale of certain
medical technology products.  However,  royalty income received by MicroCor from
the  development  and sale of technology  has now  terminated.  (See "Results of
Operations").  During the last fiscal year the Company's  activities  focused on
searching for additional funding.

Preferred  Stock.  See  Note  5 to the  Consolidated  Financial  Statements  for
information  regarding the preferred stock of the Company.  The Company has four
preferred  stockholders  holding an aggregate  of 21,016  shares of the Series A
Preferred  Stock  which is 8%  cumulative  convertible  preferred  stock.  Total
aggregate  dividends payable on the preferred stock outstanding was $8,814 as of
December 31, 2000.

Principal  Products.  During  the  years  1986  and  1987,  MicroCor  developed,
manufactured and marketed a portable  electrocardiograph  ("ECG") monitor. About
450 units were  manufactured and sold. In July 1989,  MicroCor signed a research
and  development  contract  with  Critikon (a  predecessor  to Johnson & Johnson
Medical,  Inc.) to develop a medical  instrument  which  would  incorporate  and
enhance the technologies  already developed in the MicroCor portable ECG monitor
and combine  them with  technologies  developed  by  Critikon.  The research and
development  portion of the contract was completed in July 1990, and resulted in
the design of a new product line. The product line was successfully  marketed by
Johnson & Johnson Medical,  Inc. during the 1990's,  providing royalty income to
InMedica. The product line has been phased out and the royalty income terminated
during 2000.

Product  Development.  For the past 10 years, the Company has conducted research
or engaged in fund  raising to  support  development  of a method for  measuring
hematocrit  non-invasively  (without  drawing blood) and has applied for patents
covering this  technology.  Hematocrit is the percentage of blood volume made up
by  red  blood  cells  and  is a  common  laboratory  test  currently  performed
invasively  by drawing a blood  sample from the  patient.  During May 1997,  the
Company  employed Dr. Gail Billings,  a bio-medical  researcher  and,  effective
August 29,  1997,  the Company  engaged  Medical  Physics,  Inc.,  a  biomedical
research company located in Salt Lake City, Utah to conduct further research and
development  on the project.  The  researchers  engaged in  additional  research
through  1998.   During  1999,  the  researchers   completed   production  of  a
transportable  prototype device for use in demonstrating the technology.  During
2000,  the  Company  attempted  to  secure  additional  funding  through  direct
investment,  or to enter into development,  distribution or licensing agreements
with industry partners for the development of the technology, although it has no
commitments at the present time.

                                       2
<PAGE>

Government Regulation. Medical products may be subject to regulation by the Food
and Drug  Administration  (the "FDA")  pursuant to the  Federal  Food,  Drug and
Cosmetic  Act and  other  federal  and  state  laws  regarding  the  regulation,
manufacture  and  marketing of products in which  InMedica may be involved.  The
laws of foreign  nations may also apply to any  international  marketing of such
products.  To the extent  InMedica  has  acquired  or  developed  an interest in
medical  products  or the  companies  manufacturing  such  products,  InMedica's
business may be indirectly affected by such regulation. Testing of the Company's
non-invasive  hematocrit technology is subject to prior approval and supervision
of an  Internal  Review  Board of a medical  facility  overseeing  the  testing.
Marketing of any new product line that might be developed based on the Company's
non-invasive hematocrit device would be subject to prior approval by the FDA.

Patents.  As of  December  12,  1995,  the  Company's  application  for a patent
entitled "Method and Apparatus for Non-Invasively  Determining  Hematocrit," was
allowed by the U.S.  Patent Office and the Patent issued on June 18, 1996 with a
term of 17 years.  The  Company  was issued an  additional  patent  that  claims
priority from October 4, 1990,  the date of filing of the Company's  "Method and
Apparatus for Non-Invasively Determining Hematocrit".  The patent term runs from
October 4, 1990 for a period of 17 years. As of October 3, 2000, the Company was
issued  a  third  patent  called  "System  and  Method  for  Invivo   Hematocrit
Measurement Using Impedence and Pressure Plethysmography." The Company filed for
a continuation of the third patent in June, 2000.

Raw Materials.  Materials and electronic  components  used in the production and
development of ECG monitors and like products are components  readily  available
through various suppliers.

Competition.  InMedica  is not  presently  a  significant  factor in the medical
products  industry  and does  not  presently  compete  directly  in the  medical
products  field.  The medical  products  industry is dominated by large and well
established  corporations with vastly greater financial and personnel  resources
than  those of  InMedica.  There  can be no  assurance  that the  companies  and
products in which InMedica has an interest will be able to compete profitably in
the marketplace. Further, there is no assurance that the Company will be able to
complete  research,  development  and marketing of its hematocrit  technology in
advance of any competitors who may be developing competing technologies.

Research and Development Costs. Research and development costs for the two years
ended December 31, 2000 and 1999, were $55,059 and $66,818,  respectively.  None
of the expenses were incurred on customer-sponsored research activities relating
to the development of new products.

Employees.  InMedica and MicroCor had one full time  employee as of December 31,
2000.

                                       3
<PAGE>

Item 2. Properties

Office.  The Company  presently uses  facilities  provided at no cost by Medical
Physics, Inc. for its offices.

Item 3. Legal Proceedings

There are no pending legal proceedings.

Item 4. Submission of Matters to a Vote of Security Holders

There were no matters submitted during the fourth quarter of the fiscal year
covered by this report to a vote of security holders.

                                       4
<PAGE>

                                     PART II

Item 5. Market for the  Registrant's  Common Stock and Related  Security  Holder
Matters.

(a)  Price Range of Common Stock.

     The Common Stock of InMedica is traded in the  over-the-counter  market and
     is quoted on the "NASD OTC Bulletin Board". The following table sets forth,
     for the calendar  quarters  indicated,  the high and low closing bid prices
     for the InMedica  Common Stock as reported by the NASD OTC Bulletin  Board.
     These quotations  represent  prices between dealers without  adjustment for
     retail  markups,  markdowns or  commissions  and may not  represent  actual
     transactions.

                                           Bid Price
     Quarter Ended                    High             Low
                                    --------         -------

     March 31, 1999                  $ .34           $  .28
     June 30, 1999                     .81              .28
     September 30, 1999                .35              .19
     December 31, 1999                 .34              .21

     March 31, 2000                  $ .44           $  .30
     June 30, 2000                     .44              .28
     September 30, 2000                .38              .25
     December 31, 2000                 .38              .10

As of March 23, 2000,  there were  approximately  510 record holders of InMedica
Common Stock.  Such record  holders do not include  individual  participants  in
securities position listings.  The Company also has five holders of its Series A
Preferred Stock. There is no public market for the Series A Preferred Stock (see
"Preferred Stock"). InMedica has not paid any cash dividends on its Common Stock
since organization.  For the foreseeable future, InMedica expects that earnings,
if  any,  will  be  retained  for  use in the  business  or be  used  to  retire
obligations of the Company.  For  information as to the Company's  obligation to
pay dividends on Preferred Stock, see "Preferred Stock."

                                       5
<PAGE>

Item 6. Management's  Discussion and Analysis of Financial Condition and Results
of Operations.

Liquidity and Capital Resources. For the year ended December 31, 1999, liquidity
was  generated  primarily  from royalty  income  received from Johnson & Johnson
Medical,  Inc.  ("JJMI") and borrowing  from  affiliates.  During the year ended
December 31,  2000,  liquidity  was  generated  primarily  from  borrowing  from
affiliates  and from the sale of 100,000  shares of restricted  common stock for
$30,000.  Royalty income has now terminated.  Borrowings from affiliates are not
expected to be sufficient to provide  future  liquidity  needs,  retire debt and
fund continued  research and development.  InMedica  continues to look for other
funding  sources,  however  to date it has no  commitments.  Funds  invested  to
develop the  hematocrit  device have been expensed as research and  development.
However,  the Company plans to use the  transportable  prototype  device and its
intellectual  property  rights to search for additional  funding  through direct
investment or through  development,  distribution  or licensing  agreements with
industry partners, although it has no commitments at the present time.

Results  of  Operations.  InMedica  incurred  net  losses in 2000 and 1999.  The
Company  had an  accumulated  deficit of  $7,527,333  as of December  31,  2000.
Operating  revenues  have been derived only from  royalties  during the two-year
period ended  December 31,  2000.  During the years ended  December 31, 2000 and
1999 royalty revenue totaled $52,960 and $105,480, respectively. The net loss of
$288,251  for the year  ended  December  31,  2000  compared  to the net loss of
$140,414  for 1999,  resulted  primarily  from a  $52,520  decrease  in  royalty
revenues and an increase in general and administrative  expenses of $77,720. The
increase  in  expenses  was due to  payment  of salary  to the  Chief  Executive
Officer.  During  2000,  the  Company  met  its  research  and  development  and
administrative  expenditure  requirements  from existing  cash,  loan  proceeds,
royalty receipts and the issuance of stock. The Company also continued to accrue
salaries and consulting fees payable to two officers.  During 2000, research and
development expense decreased $11,759 as the Company restricted expenditures due
to restricted cash flow.

                                       6
<PAGE>

Item 7. Financial Statements

                                                               Beginning at Page
     Report of Independent Public Accountants                         F-1

     Consolidated Balance Sheet as of December 31, 2000               F-2

     Consolidated Statements of Operations for the
     years ended December 31, 2000 and 1999                           F-3

     Consolidated Statements of Stockholders' Deficit for the
     years ended December 31, 2000 and 1999                           F-4

     Consolidated Statements of Cash Flows for the
      years ended December 31, 2000 and 1999                          F-5

     Notes to Consolidated Financial Statements                       F-6

                                       7
<PAGE>
Report of Independent Public Accountants


To InMedica Development Corporation:

We  have  audited  the  accompanying  consolidated  balance  sheet  of  InMedica
Development  Corporation (a Utah  corporation) and subsidiary as of December 31,
2000,  and the related  consolidated  statements  of  operations,  stockholders'
deficit and cash flows for the years  ended  December  31, 2000 and 1999.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,   the  financial   position  of  InMedica   Development
Corporation  and  subsidiary  as of December 31, 2000,  and the results of their
operations  and their cash flows for the years ended  December 31, 2000 and 1999
in  conformity  with  accounting  principles  generally  accepted  in the United
States.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 1 to the
consolidated  financial statements,  the Company suffered net losses of $288,251
and $140,414  during 2000 and 1999,  respectively.  The Company's sole source of
revenue was a royalty  arrangement  that  terminated in 2000. As of December 31,
2000, the Company had an  accumulated  deficit of  $7,527,333,  a  stockholders'
deficit of $498,894 and negative  working capital of $501,161.  These conditions
raise  substantial  doubt  about the  Company's  ability to  continue as a going
concern.  Management's  plans in regard to these  matters also are  discussed in
Note 1. The  consolidated  financial  statements do not include any  adjustments
relating to the  recoverability  and classification of asset carrying amounts or
the amount and  classification  of  liabilities  that  might  result  should the
Company be unable to continue as a going concern.


By: /s/ Arthur Andersen, LLP
----------------------------
        Arthur Andersen, LLP


Salt Lake City, Utah
March 12, 2001

                                       F-1
<PAGE>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

Consolidated Balance Sheet
As of December 31, 2000
<TABLE>
<CAPTION>

Assets
<S>                                                                                   <C>
Current assets:
   Cash                                                                               $        9,096
   Prepaid expenses and other                                                                 16,007
                                                                                      --------------
                Total current assets                                                          25,103

Equipment and furniture, at cost, less accumulated depreciation of $252,918                       71
Other assets                                                                                   2,196
                                                                                      --------------
                Total assets                                                          $       27,370
                                                                                      ==============

Liabilities and stockholders' deficit

Current liabilities:
   Related party notes payable and accrued interest                                   $      234,404
   Related party consulting fees payable and accrued interest                                195,003
   Note payable and accrued interest                                                          14,810
   Accounts payable                                                                           65,458
   Accrued payroll                                                                             7,775
   Preferred stock dividends payable                                                           8,814
                                                                                      --------------
                Total current liabilities                                                    526,264
                                                                                      --------------
Commitments and contingencies (Notes 1, 6, 7 and 8) Stockholders' deficit:
   Preferred stock, 10,000,000 shares authorized; Series A convertible preferred
     stock, 8% cumulative, $4.50 par value, 1,000,000 shares designated, 21,016
     shares outstanding
     (aggregate liquidation preference of $102,139)                                           94,573
   Common stock, $.001 par value; 20,000,000 shares authorized,
     8,847,409 shares outstanding                                                              8,847
   Additional paid-in capital                                                              6,925,019
   Accumulated deficit                                                                    (7,527,333)
                                                                                      --------------
                Total stockholders' deficit                                                 (498,894)
                                                                                      --------------
                Total liabilities and stockholders' deficit                           $       27,370
                                                                                      ==============
</TABLE>



The accompanying notes to consolidated financial statements are an integral part
of these consolidated statements.

                                       F-2
<PAGE>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

Consolidated Statements of Operations
For the Years Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>

                                                                                           2000                1999
                                                                                       -------------       -------------
<S>                                                                                    <C>                 <C>
Royalty revenues                                                                       $      52,960       $     105,480
                                                                                       -------------       -------------
Operating expenses:
   General and administrative                                                                242,663             164,943
   Research and development                                                                   55,059              66,818
                                                                                       -------------       -------------
                Total operating expenses                                                     297,722             231,761
                                                                                       -------------       -------------
                Loss from operations                                                        (244,762)           (126,281)
                                                                                       -------------       -------------
   Interest                                                                                  (42,500)            (13,884)
   Other, net                                                                                   (989)               (249)
                                                                                       -------------       -------------
                Total other expense, net                                                     (43,489)            (14,133)
                                                                                       -------------       -------------
Net loss                                                                                    (288,251)           (140,414)
Preferred stock dividends                                                                     (8,814)             (9,128)
                                                                                       -------------       -------------
Net loss applicable to common stockholders                                             $    (297,065)      $    (149,542)
                                                                                       =============       =============
Net loss per common share (basic and diluted)                                          $       (.03)       $       (.02)
                                                                                       =============       =============
Weighted average number of common shares outstanding
   (basic and diluted)                                                                     8,795,505           8,673,535
                                                                                       =============       =============
</TABLE>




The accompanying notes to consolidated financial statements are an integral part
of these consolidated statements.

                                       F-3
<PAGE>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

Consolidated Statements of Stockholders' Deficit
For The Years Ended December 31, 2000 and 1999

<TABLE>
<CAPTION>

                                               Series A                                  Additional                       Total
                                            Preferred Stock         Common Stock           Paid-in       Accumulated   Stockholders'
                                           Shares     Amount      Shares      Amount       Capital         Deficit        Deficit
                                         ---------  ----------- ----------- ----------- -------------   -------------  -------------
<S>                                      <C>        <C>         <C>         <C>         <C>             <C>            <C>
Balance, December 31, 1998                  25,356  $   114,102   8,660,899 $     8,661 $   6,835,840   $  (7,080,726) $   (122,123)
   Common stock issued for services           --           --        75,000          75        23,370            --          23,445
   Deemed contribution related to
     transfer of common stock from
     principal stockholder to an
     employee for services                    --           --          --          --           7,825            --           7,825
   Preferred stock dividends                  --           --          --          --            --            (9,128)       (9,128)
   Net loss                                   --           --          --          --            --          (140,414)     (140,414)
                                         ---------  ----------- ----------- ----------- -------------- ---------------- ------------
Balance, December 31, 1999                  25,356      114,102   8,735,899       8,736     6,867,035      (7,230,268)     (240,395)
   Sale of common stock for cash              --           --       100,000         100        29,900            --          30,000
   Conversion of Series A preferred
     stock to common stock                  (4,340)     (19,529)      6,510           6        19,523            --            --
   Common stock issued to consultants
     for services                             --           --         5,000           5         1,870            --           1,875
   Common stock options granted to
     consultants for services                 --           --          --          --           6,691            --           6,691
   Preferred stock dividends                  --           --          --          --            --            (8,814)       (8,814)
   Net loss                                   --           --          --          --            --          (288,251)     (288,251)
                                         ---------  ----------- ----------- ----------- -------------- ---------------- ------------
Balance, December 31, 2000                  21,016  $    94,573   8,847,409 $     8,847 $   6,925,019  $   (7,527,333)  $  (498,894)
                                         =========  =========== =========== =========== ============== ================ ============
</TABLE>



The accompanying notes to consolidated financial statements are an integral part
of these consolidated statements.

                                       F-4
<PAGE>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
<TABLE>
<CAPTION>

Consolidated Statements of Cash Flows
For The Years Ended December 31, 2000 and 1999
                                                                                        2000               1999
                                                                                  ----------------    --------------
Cash flows from operating activities:
<S>                                                                               <C>                 <C>
   Net loss                                                                       $       (288,251)   $     (140,414)
   Adjustments to reconcile net loss to net cash used in operating activities-
     Depreciation and amortization                                                             635               865
     Compensation on issuance of common stock and stock options for services
                                                                                             8,566            31,270
     Changes in assets and liabilities-
       Decrease (increase) in royalties receivable                                          57,120           (11,200)
       Decrease in prepaid expenses and other                                                   44               736
       Increase in accounts payable                                                         27,560             9,210
       Increase (decrease) in accrued payroll                                                6,819              (112)
       Increase in related party accrued interest on notes payable                          18,904              --
       Increase in related party consulting fees payable and
         accrued interest                                                                   89,011            53,996
                                                                                  ----------------    --------------
                Net cash used in operating activities                                      (79,592)          (55,649)
                                                                                  ----------------    --------------
Cash flows from financing activities:
   Proceeds from borrowings on note payable and notes
       payable to related parties                                                           58,688            26,212
   Proceeds from sale of common stock                                                       30,000              --
   Preferred stock dividends                                                                  --              (9,128)
                                                                                  ----------------    --------------
   Net cash provided by financing activities                                                88,688            17,084
                                                                                  ----------------    --------------
Net increase (decrease) in cash                                                              9,096           (38,565)
Cash at beginning of the year                                                                 --              38,565
                                                                                  ----------------    --------------
Cash at end of the year                                                              $       9,096      $       --
                                                                                  ================    ==============

Supplemental disclosure of cash flow information:
   Cash paid during the year for interest                                            $        --      $       13,884
</TABLE>



The accompanying notes to consolidated financial statements are an integral part
of these consolidated statements.

                                       F-5
<PAGE>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

Notes To Consolidated Financial Statements


(1)   Nature of Operations and Significant Accounting Policies

Nature of Operations

InMedica Development  Corporation  ("InMedica") and its wholly owned subsidiary,
MicroCor,  Inc.  ("MicroCor")  (collectively,  the "Company")  historically have
engaged in the research,  development  and sale of medical  technology  and fund
raising  to support  such  activity.  During  the years 1986 and 1987,  MicroCor
developed  and  marketed  a  portable  electrocardiograph  ("ECG")  monitor  and
manufactured and sold about 450 units. In July 1989,  MicroCor signed a research
and development contract with a predecessor of Johnson and Johnson Medical, Inc.
("Johnson and  Johnson") for further  development  of the ECG  technology.  As a
result of the agreement, Johnson and Johnson manufactured and marketed a product
line under the name of Dinamap  Plus(TM)  which  incorporated  the Company's ECG
technology.  Royalties received from Johnson and Johnson were the Company's sole
source of  revenue.  During 2000 the  royalties  from  Johnson and Johnson  were
terminated.

Since 1989,  the Company has engaged in research and  development of a device to
measure hematocrit  non-invasively (the "Non-Invasive  Hematocrit  Technology").
During  1996,  the  Company  was issued  patent No.  5526808  related to certain
aspects  of its  Non-Invasive  Hematocrit  Technology.  Additionally,  a  patent
application was allowed in November 1996 related to this technology.  Hematocrit
is the percentage of red blood cells in a given volume of blood.  At the present
time, the test for hematocrit is performed  invasively by drawing blood from the
patient and testing the blood sample in the laboratory. Commercialization of the
Non-Invasive Hematocrit Technology is dependent upon favorable testing, Food and
Drug Administration approval, financing of further research and development and,
if warranted,  financing of manufacturing and marketing activities. During 1999,
the researchers completed production of a transportable prototype device for use
in demonstrating  the technology.  During 2000, the Company  continued to pursue
further development of the technology. During 2001, the Company plans to use the
prototype  and  its  intellectual  property  rights  in  an  attempt  to  secure
additional  funding  through direct  investment,  or to enter into  development,
distribution  or  licensing  agreements  with  industry  partners  for the final
development  of the  technology,  although it has no  commitments at the present
time.

The Company  generated net losses of $288,251 and $140,414 during 2000 and 1999,
respectively. As of December 31, 2000, the Company had an accumulated deficit of
$7,527,333,  a stockholders' deficit of $498,894 and negative working capital of
$501,161.  These conditions raise  substantial doubt as to the Company's ability
to continue as a going concern.  During 2000,  the Company was funded  primarily
from loans from related parties.  The Company's continued existence is dependent
upon its  ability to achieve a viable  operating  plan and to obtain  additional
debt or equity financing. There can be no assurance the necessary debt or equity
financing  will be  available,  or will be available on terms  acceptable to the
Company.

Management's   operating  plan  includes  continuing  to  search  for  financing
alternatives,  including the formation of strategic alliances or partnerships to
continue  research  and,  if  warranted,  the  manufacture  and sale of products
developed from the Non-Invasive Hematocrit Technology.  However, at present, the
Company has no commitments related to these matters.

Principles of Consolidation

The  consolidated  financial  statements  include the  accounts of InMedica  and
MicroCor.   All  material  intercompany  accounts  and  transactions  have  been
eliminated.

Revenue Recognition

Royalty  revenues are  recognized as sales  information is received from Johnson
and Johnson and cash receipts are assured.

                                       F-6
<PAGE>

Equipment and Furniture

Equipment  and  furniture  are  recorded  at  cost  and  depreciated  using  the
straight-line  method over the estimated  useful lives of the assets.  The asset
cost and  accumulated  depreciation  for property  retirements and disposals are
eliminated from the respective accounts, and any gain or loss is included in the
determination  of net loss. The costs of major  additions and  improvements  are
capitalized  while the cost of maintenance and repairs are charged to expense as
incurred.

Equipment and furniture consisted of the following at December 31, 2000.

        Equipment                        $       242,260
        Furniture                                 10,729
                                         ----------------
                                                 252,989
        Less accumulated depreciation           (252,918)
                                         ----------------
                                         $            71
                                         ================

Depreciation has been computed using the straight-line  method over the three to
five year useful lives of the related assets.

Research and Development

Research and development costs are expensed as incurred.

Net Loss Per Common Share

The net loss per  common  share  computation  is based on the  weighted  average
number of shares of common stock outstanding  during each year.  Preferred stock
dividends are deducted from net loss in calculating net loss per common share.

Basic net loss per common share ("Basic EPS") excludes  dilution and is computed
by dividing net loss by the weighted average number of common shares outstanding
during the year.  Diluted net loss per common share ("Diluted EPS") reflects the
potential  dilution  that could  occur if stock  options or other  common  stock
equivalents  were exercised or converted into common stock.  The  computation of
Diluted EPS does not assume exercise or conversion of securities that would have
an antidilutive effect on net loss per common share.

At  December  31,  2000 and 1999,  there were  outstanding  options to  purchase
636,500 and 695,000 shares of common stock, respectively.  These shares were not
included in the computation of Diluted EPS because they would be anti-dilutive.

Income Taxes

The Company accounts for income taxes using the liability method. Deferred taxes
are determined based on the estimated future tax effects of differences  between
the financial  reporting and tax reporting bases of assets and liabilities given
the provisions of currently enacted tax laws.

Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

                                       F-7
<PAGE>

(2)  Income Taxes

As of December 31, 2000, deferred income tax assets consisted of the following:

   Net operating loss carryforwards                      $      1,018,146
   Future deductible temporary differences related to
      compensation, reserves and accruals                         236,661
   Less:  valuation allowance                                  (1,254,807)
                                                         -----------------
   Net deferred income tax assets                        $           --
                                                         =================

At  December  31,  2000,  the  Company  has   consolidated  net  operating  loss
carryforwards   ("NOLs")  for  federal  income  tax  purposes  of  approximately
$2,715,056.  These  NOLs  expire at  various  dates  beginning  in 2005  through
December 31, 2019. An NOL generated in a particular year will expire for federal
tax purposes if not utilized within 20 years. Additionally, the Internal Revenue
Code contains other provisions, which could reduce or limit the availability and
utilization of NOLs. For example,  limitations are imposed on the utilization of
NOLs if  certain  ownership  changes  have  taken  place or will take  place.  A
valuation allowance is provided when it is more likely than not that all or some
portion  of the  deferred  income tax assets  will not be  realized.  Due to the
uncertainty with respect to ultimate realization,  the Company has established a
valuation allowance for all deferred income tax assets.

(3)  Common Stock Transactions

During 1999, the Company  authorized the issuance of 75,000 shares of restricted
common  stock to an employee  for  services  rendered.  The  Company  recognized
$23,445 in compensation  expense related to these shares,  which represented the
market value of the stock at the date of grant.

During 1999, a principal stockholder of the Company transferred 25,000 shares of
his common stock to an employee for services  rendered.  The Company  recognized
$7,825 in compensation  expense related to this transfer,  which represented the
market value of the stock on the date of transfer.

During 2000,  the Company sold 100,000  shares of common stock to a  non-related
party for  $30,000  in cash.  Additionally,  5,000  shares of common  stock were
issued to  consultants  for  research  and  development  services.  The  Company
recognized $1,875 in compensation  expense related to these 5,000 shares,  which
represented the market value of the stock on the date the shares were issued.

During 2000, preferred stockholders converted 4,340 shares of Series A preferred
stock  into 6,510  shares of common  stock.  As  indicated  in Note 5,  Series A
preferred  stockholders  have the right to convert shares into common stock at a
ratio of 1.5 shares of common stock per 1 share of preferred.

(4)  Stock Options

With  respect to employees  and  directors,  the Company  accounts for its stock
incentive  plan,  formula stock option plan and certain  options granted outside
the plans  under APB  Opinion  No.  25.  The  Company  did not grant  options to
employees  during  2000 or 1999 and  accordingly,  there  would be no pro  forma
compensation cost under Statement of Financial Accounting Standards No. 123.

Stock Incentive Plan

The Company has in place an incentive  stock  option plan (the "Stock  Incentive
Plan")  for  eligible  directors  and key  employees  of the  Company,  covering
1,350,000  shares of the Company's  common  stock.  Under the terms of the Stock
Incentive  Plan, the options  granted may be either  incentive  stock options as
defined in the Internal Revenue Code or nonqualified  stock options. A committee
composed of  disinterested  members of the Board of Directors  has  authority to
determine,  among other matters,  which eligible key employees and directors are
to receive options, the price at which the nonqualified options will be granted,
the period in which the  options are  exercisable  and the type of options to be
granted. The exercise price for the incentive stock options may not be less than
100  percent of the fair  market  value of the  common  stock on the date of the
grant. The Stock Incentive Plan contains  antidilution  provisions which provide
for  adjustments to option prices or quantities in the event of certain  changes
in the number of outstanding shares of common stock or the capitalization of the
Company.

                                       F-8
<PAGE>

Under the stock  incentive  plan at December 31, 2000,  31,500 shares were under
option with exercise prices of $0.60 per share and remaining  contractual  lives
of 1.5 years. There were no options granted,  exercised, or forfeited during the
years ended  December 31, 2000 and 1999.  At December 31, 2000,  options for the
purchase of 980,769 shares were available for granting under the Stock Incentive
Plan.

Formula Stock Option Plan

The Company has in place a formula  stock option plan (the  "Formula  Plan") for
eligible  directors of the Company,  covering  100,000 shares of common stock. A
committee of the Board of Directors has the authority to determine,  among other
matters,  the term of the  options and the period  during  which the options are
exercisable.  Under the terms of the Formula Plan,  each member of the committee
which  administers the Stock Incentive Plan is eligible to receive  nonqualified
stock options  pursuant to a formula set forth in the Formula Plan. The exercise
price for options  granted  shall be 30 percent of the fair market  value of the
common stock on the date of the grant.  The Formula Plan  contains  antidilution
provisions  which provide for  adjustments to option prices or quantities in the
event of certain changes in the number of outstanding  shares of common stock or
the capitalization of the Company.

There were no options  granted or  exercised  under the Formula  Plan during the
years ended  December 31, 2000 and 1999.  At December  31,  2000,  there were no
shares  under  option  under the Formula  Plan and  options for the  purchase of
95,500 shares were available for granting.

Other Stock Options

During 1995 through  2000  nonqualified  options  were issued to  employees  and
consultants  for services.  A summary of the stock option  activity for 2000 and
1999 was as follows:


                                                                  Weighted
                                                                   Average
                                               Option shares    Exercise Price
                                              --------------   ----------------
           Outstanding at December 31, 1998          817,500    $     0.74
              Granted                                   --             --
              Forfeited or expired                  (154,000)         1.01
                                              --------------
           Outstanding at December 31, 1999          663,500          0.68
              Granted                                 54,000          0.73
              Forfeited or expired                  (112,500)         0.41
                                              --------------
           Outstanding at December 31, 2000          605,000    $     0.67
                                              ==============

All  options  are  currently  exercisable  and  the  weighted-average  remaining
contractual life is 3.5 years. Of the total options outstanding, 263,500, with a
weighted-average  exercise  price of  $0.34,  were  held by  employees  and were
granted in 1995.  The  remaining  options  outstanding  were  granted to various
consultants.  The options  granted in 2000 were to  consultants  and the Company
recorded $6,691 in expense related to these options.

(5)  Preferred Stock

The Company is authorized to issue  10,000,000  shares of preferred  stock.  The
Company's board of directors designated 1,000,000 shares of this preferred stock
as Series A Cumulative Convertible Preferred Stock ("Series A Preferred") with a
par value of $4.50 per share.  Holders of the Series A Preferred  receive annual
cumulative  dividends of eight percent,  payable quarterly,  which dividends are
required to be fully paid or set aside before any other dividend on any class or
series  of stock of the  Company  is paid.  Holders  of the  Series A  Preferred
receive no voting  rights but do receive a  liquidation  preference of $4.50 per
share, plus accrued and unpaid dividends.  Series A Preferred  stockholders have
the right to convert  each share of Series A Preferred to the  Company's  common
stock at a rate of 1.5 common shares to 1 preferred share.

                                       F-9
<PAGE>

(6)  Notes Payable to Related Parties

During 1997,  the  Company's  chairman  paid a $355,000 note payable owed by the
Company to a bank (on which the  president was the  co-obligor)  and the Company
entered  into a line  of  credit  loan  agreement  (the  "Agreement")  with  the
chairman,  and borrowed an initial  amount  thereunder  of $355,000.  Borrowings
under the Agreement  carry terms that are not less favorable than the terms of a
loan that the chairman  has with a bank which loan was used by the  president to
fund the advance  under the  Agreement to the Company.  As of December 31, 2000,
there was  outstanding  principal  of $204,250  and accrued  interest of $17,160
under the  Agreement.  Interest  currently  accrues at 10 percent on outstanding
principal  amounts.  Interest accrued at the bank's prime rate plus 0.25 percent
prior to January  1,  2000.  The  Agreement  is secured by all of the  Company's
intellectual property.

During 1999, the Company entered into unsecured note payable agreements with two
board  members for $7,500 each due in four equal  installments  of $1,875  (with
interest at an annual rate of 10 percent) through March 31, 2000. As of December
31, 2000, there was outstanding principal of $5,625 and accrued interest of $872
under each agreement. The Company is currently unable to make principal payments
on these notes,  however  they  continue to accrue  interest at the  appropriate
rate.

(7)  Note Payable

During 2000, the Company  entered into an unsecured note payable  agreement with
an Insurance  Company.  The agreement  provides for the repayment of the note in
ten equal  installments of $1,890  (including 5 percent  interest) from November
12, 2000 to November 12, 2001.  As of December 31, 2000,  there was  outstanding
principal of $13,680 and accrued interest of $1,130 under the agreement.

(8)  Related Party Transactions

During  2000 and 1999,  the  Company  incurred  interest  expense of $41,523 and
$13,662, respectively, on the related party notes payable described in Note 6.

The Company has a consulting  arrangement  with an entity owned by the Company's
chairman whereby the Company agreed to pay $4,333 per month during 1999.  During
2000,  the  arrangement  was modified  whereby the Company pays $2,000 per month
starting  January 1, 2000.  Either party can  terminate the  arrangement  at any
time.  As of December  31,  2000,  a principal  balance of $127,992  and accrued
interest  of $20,299  was owed  under the  arrangement.  Interest  accrues at 10
percent.

The Company also has a consulting  arrangement  with the  Treasurer  whereby the
Company  agreed  to pay  $4,000  per  quarter  during  1999.  During  2000,  the
arrangement  was modified  whereby the Company  agreed to pay $8,000 per quarter
starting  January 1, 2000.  Either party can  terminate the  arrangement  at any
time.  As of  December  31,  2000,  a  principal  balance of $44,000 and accrued
interest  of $2,712  was owed  under the  arrangement.  Interest  accrues  at 10
percent.

                                       F-10
<PAGE>
Item 8. Disagreements With Accountants on Accounting and Financial Disclosures.

There have been no changes in or  disagreements  with  accountants on accounting
and financial disclosures, as provided in Regulation S-B, Item 304.

                                    PART III

Item 9.

Directors,  Executive Officers,  Promoters and Control Persons;  Compliance with
Section 16(a) of the Exchange Act.

Directors and Executive  Officers of InMedica.  The  following  table  furnishes
information  concerning  the  executive  officers and  directors of InMedica and
their business backgrounds for at least the last five years.

     Name                    Age            Director Since
     Larry E. Clark           79                 1995
     Ralph Henson             56                 1999
     Richard Bruggeman        45                 1995

LARRY E. CLARK - Chairman of the Board. Mr. Clark was president of Clark-Knoll &
Associates,  Inc., a Denver, Colorado management consulting firm specializing in
mergers  and  acquisitions  from  1963  to  1969.  He  served  as  president  of
Petro-Silver,  Inc., a small public company based in Salt Lake City, Utah, which
engaged  in the oil and gas  business  from 1970 to 1975.  From 1975 to 1981 Mr.
Clark was president of Larry Clark & Associates, a private company which engaged
in a corporate  mergers and  acquisitions  business.  In 1981,  Mr. Clark formed
Hingeline-Overthrust  Oil & Gas, Inc., a Utah public company,  which merged with
Whiting  Petroleum  Corporation of Denver,  Colorado in December 1983. Mr. Clark
served as a director  of  Whiting  Petroleum  from 1983 until 1992 when  Whiting
Petroleum  merged  with IES  Industries  and Mr.  Clark  returned  to full  time
employment as president of Larry Clark & Associates.  Mr. Clark  graduated  from
the U.S.  Merchant  Marine Academy with a BS degree in Naval Science in 1943 and
received a degree in Business  Administration  from the University of Wyoming in
1948.

RALPH HENSON - Director,  President and Chief Executive Officer.  Mr. Henson was
previously  employed from 1986 to 1999 as Director of Sales and acting  Director
of Clinical  Programs of In-line  Diagnostics of  Farmington,  Utah. He was also
employed  from 1987 to 1994 with  Mallinckrodt  Medical in sales and  marketing,
including  service as Export Sales and Marketing Manger for Mallinckrodt  Sensor
Systems of Hannef, Germany. From 1994 to 1995 he was national sales manager with
HemoCue, Inc. of Mission Viejo, California.

RICHARD BRUGGEMAN - Director and Secretary/Treasurer and Chief Financial Officer
of the  Company.  Since  1993,  he has been  employed as  Controller  of Kitchen
Specialties,  Inc., a Salt Lake City firm distributing kitchen appliances in the
United States and Canada.  From 1986 until 1993 he was employed by the Company's
subsidiary, MicroCor, Inc. as financial manager. During the period 1983-1985, he
was a sole  practitioner in accounting and from 1981-1983 he was employed by the
Salt Lake City public  accounting  firm of Robison Hill & Co. He graduated  from
the University of Utah in 1981 with a B.S. degree in accounting.

                                       8
<PAGE>

Each director  serves until the next annual meeting of  shareholders  or until a
successor is elected and qualified.  Officers serve at the pleasure of the board
of directors.  Section 16(a) of the Securities Exchange Act of 1934 requires the
Company's  directors and executive  officers,  and persons who own more than ten
percent of a registered  class of the Company's  equity  securities to file with
the Securities and Exchange  Commission initial reports of ownership and reports
of changes in ownership of equity securities of the Company. Officers, directors
and greater  than ten percent  shareholders  are required to furnish the Company
with copies of all Section 16(a) forms they file.  To the  Company's  knowledge,
based  solely on  review of the  copies  of any such  reports  furnished  to the
Company, during the fiscal year ended December 31, 1999 all Section 16(a) filing
requirements  applicable  to  officers,  directors  and greater than ten percent
shareholders were complied with.

Item 10. Executive Compensation.

Executive  Compensation.  No  executive  officer  of the  Company  has  received
compensation  during the three fiscal years ended  December 31, 2000,  except as
disclosed in the table below:
<TABLE>
<CAPTION>

                                                      Annual Compensation
                                                          Long Term
                                                      Compensation Awards      Common Stock
     Name                         Year      Salary          Bonus            Underlying Options   Other
     --------------------------------------------------------------------------------------------------------
     <S>                          <C>      <C>                                                    <C>
     Ralph Henson   (CEO)         2000     $ 69,999
     Ralph Henson   (CEO)         1999     $  5,833                                               $31,270*
     Larry E. Clark (CEO)         1999     $                                                      $12,000**
     Larry E. Clark (CEO)         1998     $                                                      $51,996**
</TABLE>

*Mr.  Henson  received  75,000  shares of  restricted  stock from the Company in
connection with his employment and an additional  25,000  restricted shares from
Larry Clark.  ** consulting  fees accrued for payment to a corporation  owned by
Larry E. Clark.

Director  Compensation.  Directors  may be  compensated  at the rate of $100 for
attendance at each board meeting,  but did not receive compensation for meetings
in 2000 and 1999.

Compensation  Committee  Interlocks and Insider  Participation.  Compensation of
officers and employees is determined by the Board of Directors.  Ralph Henson is
a member of the Board of Directors.

                                       9
<PAGE>

Other  Compensation  Plans.  On  December 6, 1991,  the Company  adopted a stock
incentive plan (the "Stock Incentive Plan") and a formula stock option plan (the
"Formula  Plan").  On May 30,  1992,  at the  annual  shareholder  meeting,  the
shareholders  approved the Stock  Incentive Plan and the Formula Plan. The Stock
Incentive Plan covers 1,350,000 shares of the Company's common stock.  Under the
terms of the plan, the options  granted to eligible key employees and directors,
shall be either  incentive  stock  options  as  defined  in  Section  422 of the
Internal  Revenue Code of 1986, as amended,  or non-qualified  stock options.  A
committee  composed  of  disinterested  members  of the Board of  Directors  has
authority to determine,  among other  matters,  which eligible key employees and
directors are to receive options,  the price at which the non-qualified  options
will be granted, the period in which the options are exercisable and the type of
options granted. The exercise price for the incentive stock options shall not be
less than 100 percent of the fair market  value of the common  stock on the date
of the grant. The Formula Plan covers 100,000 shares of common stock.  Under the
terms of the plan  each  member of the  committee  which  administers  the Stock
Incentive Plan is eligible to receive  non-qualified stock options pursuant to a
formula set forth in the plan. The exercise  price for options  granted shall be
30  percent  of the fair  market  value of the  common  stock on the date of the
grant.  A committee of the Board of Directors  has the  authority to  determine,
among other matters, the term of options and the period during which the options
are exercisable.

The following tables show certain information regarding stock options granted to
and exercised by officers named in the executive compensation table:

                     OPTIONS GRANTED IN THE LAST FISCAL YEAR

                         % of Total
                          Options
                          Granted to         Exercise
             Options     Employees in         Price               Expiration
     Name    Granted       FY 2000           ($/Share)               Date
     ---------------------------------------------------------------------------

     None


                      AGGREGATED OPTIONS EXERCISED IN LAST
                  FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES

                                                            Value of Unexercised
                                        Number of              In-The-Money
                                    Unexercised Options      Options at Fiscal
               Shares               at Fiscal Year End           Year End
             Acquired on   Value       Exercisable/            Exercisable/
     Name     Exercise    Realized    Unexercisable            Unexercisable
     ---------------------------------------------------------------------------

     None

                                       10
<PAGE>

The  Company  presently  has no plan for the  payment of any  annuity or pension
retirement  benefits  to  any  of  its  officers  or  directors,  and  no  other
remuneration payments,  contingent or otherwise,  are proposed to be paid in the
future to any officer or director, directly or indirectly.

 Item 11. Security Ownership of Certain Beneficial Owners and Management.

     The  following  table  furnishes  information  concerning  the common stock
ownership of directors,  officers,  and principal  shareholders  as of March 23,
2001:

                        Nature of Number of
Name and Position            Ownership           Shares Owned       Percent
--------------------------------------------------------------------------------

Larry E. Clark                Direct               1,428,000         16.1%
Chairman

Allan L. Kaminsky             Direct                 798,875          9.0%
4602 S. Fortuna Way
S.L.C., Utah 84124
Principal Shareholder

Paul J. Diehl                 Direct and             719,230(1)       8.1%
2963 E. Fallentine Rd.        Indirect
Sandy, Utah 84092
Principal Shareholder

J. Lynn Smith                 Direct and             452,048(2)       5.1%
5770 S. 250 East #115         Indirect
Murray, Utah 84107-8100
Principal Shareholder

Ralph Henson                  Direct                 100,000          1.1%
President, Director
Chief Executive Officer

Richard Bruggeman             Direct and             174,387(3)       2.0%
Director, Chief               Indirect
Financial Officer             Options                106,500          1.2%
                                               Total 280,887          3.1%
                                                   =========
All Executive Officers        Direct and           1,702,387         19.2%
and Directors as a            Indirect
group (3 persons)             Options                106,500          1.2%
                                             Total 1,808,887         20.2%
                                                   =========

                                       11
<PAGE>

(1) - Includes 639,599 shares held by the Paul J. Diehl, M.D.P.C. profit sharing
plan, one share held by Paul J. Diehl,  P.C. and 79,630 shares held by Dr. Diehl
as custodian for his wife's daughter, Shanon.
(2) - Includes 186,048 shares held directly by Dr. Smith and 266,000 shares held
by the J.Lynn Smith Family Limited Partnership.
(3) - Includes  400 shares  held in  individual  retirement  accounts  and 4,620
shares held in a family trust of which Mr. Bruggeman is Trustee.

Shares shown in the forgoing table as directly owned are owned  beneficially and
of  record,  and such  record  shareholder  has  sole  voting,  investment,  and
dispositive  power.  Calculations  of the  percentage  of  ownership  of  shares
outstanding in the foregoing table assume the exercise of options,  to which the
percentage  relates.  Percentages  calculated  for totals assume the exercise of
options comprising such totals.

Item 12. Certain Relationships and Related Transactions.

The Company owes  $221,410 of principal  and accrued  interest to its  Chairman,
Larry E. Clark,  for loans made by Mr.  Clark in prior  years and an  additional
$148,291 for consulting fees payable, including interest.  Repayment of the loan
is secured by all of the Company's intellectual property. See also Note 6 to the
Financial  Statements.  The Company owed  consulting  fees and wages  payable to
Richard  Bruggeman  of $46,712,  including  accrued  interest as of December 31,
2000.

                                       12
<PAGE>

Item 13. Exhibits and Reports on Form 8-K.

(a) Exhibits Exhibit No.      S-K No.                   Description

                                        (3)      Articles of  Incorporation  and
                                                 Bylaws      incorporated     by
                                                 reference  to the  exhibits  to
                                                 Form  10-K for the  year  ended
                                                 December 31, 1983

                                        (3)      Articles  of  Amendment  to the
                                                 Articles  of  Incorporation  of
                                                 the   Company    changing   the
                                                 Company's   name  to  "InMedica
                                                 Development        Corporation"
                                                 incorporated  by  reference  to
                                                 Exhibit  1 to Form 10-K for the
                                                 year ended December 31, 1984

                                        (3)      Articles  of  Amendment,  dated
                                                 June 16,  1995 to the  Articles
                                                 of Incorporation of the Company
                                                 adopting  a class of  Preferred
                                                 Stock,      incorporated     by
                                                 reference  to Exhibit 1 to Form
                                                 10-QSB  for  the  period  ended
                                                 September 30, 1995

                                        (3)      Articles  of  Amendment,  dated
                                                 September   25,   1995  to  the
                                                 Articles  of  Incorporation  of
                                                 the Company adopting a Series A
                                                 Preferred  Stock,  incorporated
                                                 by  reference  to  Exhibit 2 to
                                                 Form   10-QSB  for  the  period
                                                 ended September 30, 1995 14

                                        (10)     Agreement   between   MicroCor,
                                                 Inc.   and  Johnson  &  Johnson
                                                 Medical,  Inc.  dated  June 15,
                                                 1995, incorporated by reference
                                                 to Form 8-K dated June 30, 1995

                                        (10)     Loan Agreement between Larry E.
                                                 Clark    and    the    InMedica
                                                 Development  Corporation  dated
                                                 June 23, 1997,  incorporated by
                                                 reference  to  Exhibits of Form
                                                 10QSB  for  the  Quarter  ended
                                                 June 30, 1997.
                                       13
<PAGE>

                                        (10)     Hematocrit    Development   and
                                                 Option    Agreement     between
                                                 InMedica            Development
                                                 Corporation     and     Medical
                                                 Physics,  dated August 29, 1997
                                                 incorporated  by  reference  to
                                                 Exhibits  of Form 10QSB for the
                                                 Quarter  ended   September  30,
                                                 1997.

                                        (10)     First    Amendment    to    the
                                                 Hematocrit    Development   and
                                                 Option    Agreement     between
                                                 InMedica            Development
                                                 Corporation     and     Medical
                                                 Physics, dated March 1, 1998.

                                        (10)     Employment Agreement, effective
                                                 as of December 1, 1999  between
                                                 Ralph Henson and the Registrant
                                                 and Investment  letter of Ralph
                                                 Henson,     incorporated     by
                                                 reference  to  the  8-K  of the
                                                 Registrant  dated  December  1,
                                                 1999.

                                        (11)     Statement regarding Computation
                                                 of   Per   Share    Loss   (see
                                                 Consolidated    Statements   of
                                                 Operations  for the years ended
                                                 December 31, 1997 and 1996

                                        (21)     Subsidiaries   of  the  Company
                                                 (MicroCor,    Inc.,    a   Utah
                                                 corporation)

(b) No reports on Form 8-K were filed during the fourth quarter of the year
ended December 31, 2000.

                                       14
<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

INMEDICA DEVELOPMENT CORPORATION

By: /s/ Ralph Henson
--------------------
       Ralph Henson, President Chief Executive Officer

By: /s/Richard Bruggeman
------------------------
       Richard Bruggeman Chief Financial Officer

Date: March 28 ,2000

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the  Registrant and in the capacities and on the
dates indicated.

By: /s/ Larry E. Clark
        Larry E. Clark, Director

By: /s/ Richard Bruggeman
        Richard Bruggeman, Director

By: /s/ Ralph Henson
        Ralph Henson, Director

Date: March 28 ,2000

                                       15
<PAGE>