U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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, 2003

                           Commission File No. 0-12968

                        INMEDICA DEVELOPMENT CORPORATION

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

                         825 North 300 West, Suite N132
                           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  require-ments  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 con-tained,  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: $ 0. The  aggregate  market
value of voting stock held by  non-affiliates  of the registrant as of March 12,
2004 was  approximately  $428,701 (1). The number of shares  outstanding  of the
issuer's common stock, $.001 par value, as of March 13, 2004 was 15,984,613.

(1) Based on 7,145,022  non-affiliate  shares at $.06 per share, the average bid
and asked price on that date.

DOCUMENTS INCORPORATED BY REFERENCE: None

                                     PART I

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"),  an 80% owned  subsidiary.  MicroCor was acquired  effective
December 31, 1985 and has engaged in the  development or sale of certain medical
technology products. During the last fiscal year, InMedica and MircoCor received
no revenues from operations. (See "Results of Operations").

On May 10,  2001  the  Company  entered  into a  Stock  Purchase  Agreement  and
Development,  Licensing and  Manufacturing  Agreement (the "Agreement") with Chi
Lin  Technology  Co.  Ltd.  ("Chi  Lin") of the  Republic  of China  ("Taiwan").
Pursuant to the Stock Purchase Agreement, the Company issued 5,328,204 shares of
its restricted common stock to Chi Lin and caused its subsidiary, MicroCor, Inc.
("MicroCor")  to issue 29,420 shares of its restricted  common stock to Chi Lin.
Following  these  transactions,  Chi Lin  owned  33.3%  of  InMedica  and 20% of
MicroCor.  The Company also issued 125,000  restricted shares of common stock to
Ralph Henson in connection  with this  transaction  as payment of a finder's fee
and recorded expense of $21,250.

In consideration  of the stock  issuances,  Chi Lin gave InMedica its Promissory
Notes  committing  to pay InMedica  and  MicroCor a total of $500,000  each in a
series of payments  commencing May 31, 2001 and ending  October 1, 2002..  As of
December 31, 2002,  InMedica and MicroCor had each received payments of $500,000
from Chi Lin.  InMedica is now searching for other sources or  opportunities  to
fund operations.

The  Agreement  also  granted  Chi Lin  anti-dilution  rights  permitting  it to
purchase additional shares to maintain its one third percentage ownership in the
event InMedica issued additional  shares.  Chi Lin also has the right to receive
additional  shares  to  maintain  its  percentage  ownership  in the  event  any
outstanding options are exercised.  The agreement also provides that Chi Lin has
the right to nominate two of five directors on the board of directors.  InMedica
may not  increase  the size of the  board to more than  five  without  the prior
consent of Chi Lin.  Effective  December 21, 2001 the Company  appointed two new
directors  nominated by Chi Lin pursuant to the above  agreement.  See "Officers
and Directors."

The  Company  also  entered  into a  Development,  Licensing  and  Manufacturing
Agreement with Chi Lin pursuant to which  InMedica  granted Chi Lin a world-wide
license to develop and manufacture products based on the hematocrit  technology.
The  primary  product  to be  developed  is a  device  capable  of  non-invasive
hematocrit measurement.  The agreement also grants Chi Lin the exclusive license
to distribute the products in Australia,  New Zealand, and the countries of Asia
(excluding Russia and the Middle East). InMedica retained distribution rights in
other areas of the world. In January 2004 the Company  entered into  discussions
with a medical company which would allow that company to evaluate the commercial
and technical utility of the hematocrit technology for the purpose of pursuing a
possible business venture. As a part of this process funds have been advanced to
the Company providing the operating overhead during the period of evaluation.

Note Receivable. In June 2000, the Company licensed its hematocrit technology to
an unrelated entity in exchange for a note receivable of $150,000,  due June 19,
2001.  On June 19,  2001,  the  entity  defaulted  on the  note  and the  entity
subsequently  granted the Company a secured note  receivable  for $165,000  (the
"Note") that  represents the  outstanding  principle and accrued  interest as of
December 19, 2001.  The Note bears  interest at 10% annually and was due on June
19,  2002.  The Note is secured by all  tangible  and  intangible  assets of the
entity.  As collection of the Note is uncertain,  it has been fully  reserved in
the consolidated financial statements.  As of December 31, 2003, the full amount
of the Note plus accrued interest is unpaid and the entity is in default.

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 now been phased out and the royalty  income has
ceased.

Product  Development.  For the past 14 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.  See
"Business   General"  for  a  description  of  a   Development,   Licensing  and
Manufacturing  Agreement with Chi Lin  Technologies Co. Ltd. entered into during
2001.

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 also 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 20 years. As of October 3, 2000, the Company was
issued  a  third  patent  called  "System  and  Method  for  In-Vivo  Hematocrit
Measurement Using Impedance and Pressure Plethysmography." The Company filed for
a  continuation  of the third  patent  in June,  2000 and in  December  2003 the
Company  received  a Notice  of  Allowance  of Claim  from the U.S.  Patent  and
Trademark office

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  competitive factor in the
medical products  industry.  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 products in
which  InMedica  has an  interest  will be  successfully  developed  and 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  that may be  developing
competing technologies.

Research and Development Costs. Research and development costs for the two years
ended December 31, 2003 and 2002, were $24,723 and $10,020 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 and one part time employee as
of December 31, 2003.

Item 2. Properties

The Company  presently  leases office space on a month to month basis located at
825 North 300 West, Suite N132, in Salt Lake City, Utah.

Item 3. Legal Proceedings

There are no pending legal proceedings.



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

None

                                     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, 2002                  $.15             $ .11
     June 30, 2002                    .15               .08
     September 30, 2002               .09               .05
     December 31, 2002                .09               .03

     March 31, 2003                   .07               .06
     June 30, 2003                    .07               .07
     September 30, 2003               .08               .07
     December 31, 2003                .10               .03

On March 15, 2004 there were  approximately  520 record  holders of the InMedica
Common Stock.  Such record  holders do not include  individual  participants  in
securities position listings. InMedica has not paid 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.

Four  stockholders  own an aggregate of 21,016 shares of the Company's  Series A
Preferred Stock,  which is 8% convertible  preferred.  There is no public market
for the Series A Preferred Stock.  Total aggregate  annual dividends  payable on
the outstanding preferred stock for the year 2003 was $18,914 as of December 31,
2003. See Note 5 to the Consolidated Financial Statements.

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

Liquidity and Capital Resources.  During the years 2003 and 2002,  liquidity was
generated  from  the  sale of  stock by  InMedica  and its  subsidiary  MicroCor
pursuant to the Stock Purchase  Agreement dated May 10, 2001. As of December 31,
2002 InMedica and MicroCor had each  received  payments of $500,000 from Chi Lin
and Chi Lin's stock purchase obligation has now been satisfied.  In January 2004
the Company  entered into  discussions  with a medical company which would allow
that company to evaluate the commercial and technical  utility of the hematocrit
technology for the purpose of pursuing a possible business venture. As a part of
this  process  funds  have been  advanced  to the  Company  providing  a minimal
operating overhead for the Company during the period of evaluation.


The funds  generated  from the sale of stock in 2001 were the sole source of the
Company's cash flow and were sufficient to meet the Company's  minimal operating
expenses  through  December 31, 2003. While the Company has in the past borrowed
from affiliates,  any borrowing in the future from affiliates,  if available, is
not  expected  to be  sufficient  to  provide  future  liquidity  needs,  retire
obligations 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.

Results  of  Operations.  InMedica  incurred  net  losses in 2003 and 2002.  The
Company had an  accumulated  deficit of  $8,400,761  as of December 31, 2003. No
revenues  were  received  in 2003 and 2002.  No  revenues  from  operations  are
expected in the foreseeable future. The net loss for the year ended December 31,
2003  decreased  to  $169,152  compared  to the net loss of  $287,458  for 2002.
Reduced   expenditures   in  2003  resulted  from   significant   reductions  in
accounting/audit  fees, insurance expense,  payroll and legal fees. During 2003,
the Company met its  research and  development  and  administrative  expenditure
requirements  from existing cash  available  from the issuance of stock in 2001.
During 2003,  research and development  expense  increased as a result of patent
maintenance  and  filing  fees.  During  2003,  research  and  development  work
continued to be funded by Chi Lin.




<PAGE>


Item 7. Financial Statements

                        INMEDICA DEVELOPMENT CORPORATION


                                       -:-

                          INDEPENDENT AUDITORS' REPORT


                           DECEMBER 31, 2003 AND 2002






















<PAGE>







                                    CONTENTS
<TABLE>
<CAPTION>

                                                                                                               Page

<S>                                                                                                            <C>
Independent Auditors' Report (Robison, Hill & Co.)..............................................................F-1

Consolidated Balance Sheet as of December 31, 2003 and 2002.....................................................F-3

Consolidated Statements of Operations for the
Years Ended December 31, 2003 and 2002..........................................................................F-4

Consolidated Statements of Stockholders' Equity for the
Years Ended December 31, 2003 and 2002..........................................................................F-5

Consolidated Statements of Cash Flows for the
Years Ended December 31, 2003 and 2002..........................................................................F-6

Notes to Consolidated Financial Statements......................................................................F-7
</TABLE>

























<PAGE>



Robison, Hill & Co.                                 Certified Public Accountants
A PROFESSIONAL CORPORATION
                                                         Brent M. Davies, CPA
                                                         David O. Seal, CPA
                                                         W. Dale Westenskow, CPA
                                                         Barry D. Loveless, CPA




                          INDEPENDENT AUDITORS' REPORT



To the Board of Directors and Stockholders of
  InMedica Development Corporation

         We have audited the accompanying consolidated balance sheet of InMedica
Development  Corporation  and subsidiary (the "Company") as of December 31, 2003
and 2002, and the related consolidated  statements of operations,  stockholders'
equity,  and cash  flows for the two years then  ended  (all  expressed  in U.S.
dollars).  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 audit.

         We conducted our audit in accordance with auditing standards  generally
accepted in the United States of America.  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  audit  provides  a
reasonable basis for our opinion.

         In our  opinion,  such  financial  statements  present  fairly,  in all
material respects, the financial position of the Company as of December 31, 2003
and 2002, and the results of its operations and its cash flows for the two years
then ended in conformity with accounting  principles  generally  accepted in the
United States of America.

                                      F - 1

<PAGE>



         The accompanying  consolidated financial statements for the years ended
December  31, 2003 and 2002 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's  recurring  losses from  operations  raise
substantial doubt about its ability to continue as a going concern. Management's
plans  concerning  these matters are also described in Note 1. The  consolidated
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.

                                                     Sincerely,



                                                    /s/ Robison, Hill & Co.
                                                    Certified Public Accountants

Salt Lake City, Utah
March 29, 2004










                                      F - 2

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
                                                                                December 31,        December 31,
                                                                                    2003                2002
                                                                             ------------------  ------------------
ASSETS
Current Assets
<S>                                                                          <C>                 <C>
  Cash & Cash Equivalents                                                    $            1,226  $           97,431
   Securities Available For Sale                                                              1                   1
   Prepaid Expenses & Other                                                                 200               1,450
                                                                             ------------------  ------------------
        Total Current Assets                                                              1,427              98,882
                                                                             ------------------  ------------------

Equipment & Furniture, at Cost,
   Less Accumulated Depreciation of $253,299
        and $253,122, respectively                                                          575                 752
                                                                             ------------------  ------------------

TOTAL ASSETS                                                                 $            2,002  $           99,634
                                                                             ==================  ==================

LIABILITIES & STOCKHOLDER'S EQUITY
Current Liabilities
   Related Party Consulting Fees Payable                                     $           66,000  $           42,000
   Accounts Payable                                                                      24,039               1,704
   Accrued Expenses                                                                      54,912                   -

   Preferred Stock Dividends Payable                                                     18,914              11,349
                                                                             ------------------  ------------------
        Total Current Liabilities                                                       163,865              55,053
                                                                             ------------------  ------------------

Minority Interest                                                                       104,082             133,808
                                                                             ------------------  ------------------

Stockholders' Equity
   Preferred Stock, 10,000,000 shares authorized; Series A
cumulative
     convertible preferred stock, 8% cumulative, $4.50 par value,
     1,000,000 shares designated, 21,016 shares outstanding
(aggregate
     liquidation preference of $113,487)                                                 94,573              94,573
  Common Stock, $.001 par value: 40,000,000 shares authorized,
     15,982,993 share outstanding                                                        15,983              15,983
Additional Paid-in Capital                                                            8,024,260           8,024,260
Accumulated Deficit                                                                  (8,400,761)         (8,224,043)
                                                                             ------------------  ------------------
        Total Stockholders' Equity                                                     (265,945)            (89,227)
                                                                             ------------------  ------------------

TOTAL LIABILITIES &  STOCKHOLDERS' EQUITY                                    $            2,002  $           99,634
                                                                             ==================  ==================
</TABLE>


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

                                      F - 3

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                                      For the Years Ended
                                                                                          December 31,
                                                                             --------------------------------------
                                                                                    2003                2002
                                                                             ------------------  ------------------

<S>                                                                          <C>                 <C>
ROYALTY REVENUES                                                             $                -  $                -
                                                                             ------------------  ------------------

OPERATING EXPENSES
   General & Administrative                                                             174,203             316,874
   Research & Development                                                                24,723              10,020
                                                                             ------------------  ------------------
        Total Operating Expense                                                         198,926             326,894

LOSS FROM OPERATIONS                                                                   (198,926)           (326,894)
                                                                             ------------------  ------------------

OTHER INCOME (EXPENSE)
   Interest Income (Expense)                                                                 47                (428)
   Other Expenses, Net                                                                        -              (2,195)
                                                                             ------------------  ------------------
        Total Other Expenses, Net                                                            47              (2,623)
                                                                             ------------------  ------------------

LOSS BEFORE MINORITY INTEREST                                                          (198,879)           (329,517)

MINORITY INTEREST                                                                        29,727              42,059
                                                                             ------------------  ------------------

NET LOSS                                                                               (169,152)           (287,458)

PREFERRED STOCK DIVIDENDS                                                                (7,566)             (7,566)
                                                                             ------------------  ------------------

NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                                   $         (176,718) $         (295,024)
                                                                             ==================  ==================

NET LOSS PER COMMON SHARE (BASIC & DILUTED)                                  $          (0.01)   $          (0.02)
                                                                             ==================  ==================

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   OUTSTANDING (BASIC & DILUTED)                                                     15,982,993          15,982,993
                                                                             ==================  ==================
</TABLE>



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

                                      F - 4

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
<TABLE>
<CAPTION>
                                                                                             Stock       Additional
                                      Preferred Stock              Common Stock           Subscription    Paid-in       Accumulated
                                   Shares        Amount        Shares         Amount       Receivable      Capital        Deficit
                                 -----------   -----------   -----------    -----------    -----------    -----------   -----------
<S>                              <C>           <C>           <C>            <C>            <C>            <C>           <C>
Balance, January 1, 2002 .....        21,016   $    94,573    15,984,613    $    15,985    $  (150,000)   $ 8,024,258   $(7,929,019)

Shares cancelled .............          --            --          (1,620)            (2)          --                2          --
Payments on stock subscription
   receivable ................          --            --            --             --          150,000           --            --
Preferred stock dividends ....          --            --            --             --             --             --          (7,566)
Net loss .....................          --            --            --             --             --             --        (287,458)
                                 -----------   -----------   -----------    -----------    -----------    -----------   -----------

Balance, December 31, 2002 ...        21,016        94,573    15,982,993         15,983           --        8,024,260    (8,224,043)

Preferred stock dividends ....          --            --            --             --             --             --          (7,566)
Net loss .....................          --            --            --             --             --             --        (169,152)


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

Balance, December 31, 2003 ...        21,016   $    94,573    15,982,993    $    15,983    $      --      $ 8,024,260   $(8,400,761)
                                 ===========   ===========   ===========    ===========    ===========    ===========   ===========
</TABLE>

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

                                      F - 5

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                                      For the Years Ended
                                                                                          December 31,
                                                                             --------------------------------------
                                                                                    2003                2002
                                                                             ------------------  ------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                          <C>                 <C>
   Net Loss                                                                  $         (169,152) $         (287,458)
   Adjustments to reconcile net loss to net cash used in
      operating activities:
      Depreciation and amortization                                                         177                 133
      Write down of assets                                                                    -               2,195
      Expense related to issuance of common stock
         and common stock options for services                                                -                   -
      Minority interest in losses                                                       (29,727)            (42,059)
      Changes in assets and liabilities:
         Prepaid expenses and other                                                       1,250              18,756
         Related party consulting fees payable                                           24,000              24,000
         Accounts payable                                                                22,335              (1,925)
         Accrued payroll                                                                 54,912              (4,292)
                                                                             ------------------  ------------------
                   Net cash used in operating activities                                (96,205)           (290,650)

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of equipment & furniture                                                          -                (885)
                                                                             ------------------  ------------------
                   Net cash used in investing activities                                      -                (885)

CASH FLOWS FROM FINANCING ACTIVITIES:
   Payments on note payable                                                                   -             (14,000)
   Proceeds from stock subscription receivable                                                -             150,000
   Proceeds from note receivable from Chi Lin                                                 -             150,000
   Preferred stock dividend                                                                   -              (3,773)
                                                                             ------------------  ------------------
                   Net cash provided by financing activities                                  -             282,227

NET INCREASE IN CASH                                                                    (96,205)             (9,308)
CASH AT BEGINNING OF THE YEAR                                                            97,431             106,739
                                                                             ------------------  ------------------
CASH AT END OF THE YEAR                                                      $            1,226  $           97,431
                                                                             ==================  ==================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   Cash paid during the year for interest                                    $                -  $              563
</TABLE>

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING & FINANCING ACTIVITIES

         None.


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

                                      F - 6

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

         InMedica  Development  Corporation  ("InMedica") and its majority-owned
subsidiary,  MicroCor,  Inc.  ("MicroCor")  (collectively  referred  to  as  the
"Company"),  historically have engaged in the research,  development and sale of
medical technology and fund raising to support such activities. 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 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 PlusTM which  incorporated the
Company's ECG technology.  Royalties  received from Johnson and Johnson were the
Company's  sole source of revenue  through the year 2000.  In 2001,  Johnson and
Johnson  stopped  manufacturing  and marketing the Dinamap  PlusTM product line;
therefore, MicroCor no longer receives royalties from Johnson and Johnson.

         Since 1989,  the Company has engaged in research and  development  of a
device  to  measure  hematocrit  non-invasively  (the  "Non-Invasive  Hematocrit
Technology" and/or the "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 ("FDA") approval,
financing of further  research and development  and, if warranted,  financing of
manufacturing  and marketing  activities.  During 1999,  the Company  produced a
transportable  prototype device for use in demonstrating the technology.  During
2002 and 2003,  the  Company  continued  to pursue  further  development  of the
technology.

         In May  2001,  the  Company  entered  into an  agreement  with  Chi Lin
Technology Co. Ltd. ("Chi Lin"), a subsidiary of Chi Mei Group, Taiwan,  R.O.C.,
to further develop,  produce,  and market the Technology (see Note 3). Under the
agreement,  Chi Lin also  acquired  stock in  InMedica  and stock in  InMedica's
subsidiary, MicroCor.

Basis of Presentation

         The Company's consolidated financial statements have been prepared on a
going  concern  basis,   which   contemplates  the  realization  of  assets  and
satisfaction of liabilities in the normal course of business.  The  consolidated
financial  statements do not include any adjustment  relating to  recoverability
and  classification  of recorded amounts of assets and liabilities that might be
necessary  should the  Company be unable to  continue  as a going  concern.  The
Company generated net losses

                                      F - 7

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Basis of Presentation (Continued)

of $169,152 and $287,458 in 2003 and 2002, respectively, and negative cash flows
from  operations of $96,205 and $290,650 in 2003 and 2002,  respectively.  As of
December 31, 2003 and 2002, the Company had an accumulated deficit of $8,400,761
and  $8,224,043,  respectively.  At December 31, 2003 and 2002,  the Company had
stockholders' equity (deficit) of ($265,945) and ($89,227),  respectively. These
conditions raise  substantial doubt as to the Company's ability to continue as a
going concern.  The Company's  continued existence is dependent upon its ability
to execute its 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 pursuing  additional  strategic  alliances and licensing
agreements as well as preparation  for the clinical trials that will be required
for FDA approval for the medical products that are currently under  development,
pursuant  to the Chi  Lin  development  agreement,  utilizing  the  Non-Invasive
Hematocrit Technology.

Patents

         The  Company  has  three  patents   covering  various  aspects  of  its
Technology which expire from 2010 to 2013.

Principles of Consolidation

         The consolidated  financial statements include the accounts of InMedica
and MicroCor.  All material  inter-company  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.  In early 2001,  Johnson &
Johnson stopped  manufacturing and marketing the Dinamap PlusTM product line and
the Company no longer receives royalties from Johnson and Johnson.

Income Taxes

         The Company  accounts  for income  taxes using the asset and  liability
method.  Deferred income 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. 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.

                                      F - 8

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
(Continued)

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 which range
from three to five years.

Equipment  and  furniture  consisted  of the  following at December 31, 2003 and
2002:
<TABLE>
<CAPTION>
<S>                                                         <C>                 <C>
Equipment                                                   $         242,686   $         242,686
Furniture                                                              11,188              11,188
                                                            -----------------   -----------------
                                                                      253,874             253,874
                                                            -----------------   -----------------
Less accumulated depreciation                                        (253,299)           (253,122)
                                                            -----------------   -----------------

Total                                                       $             575   $             752
                                                            =================   =================
</TABLE>

Research and Development

         Research and development costs are expensed as incurred.

Net Loss Per Common Share

         Basic net loss per common share 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.

Use of Estimates

         The  preparation of financial  statements in conformity with accounting
principles   generally  accepted  in  the  United  States  of  America  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.

Comprehensive Income

         There are no  components  of  comprehensive  income  other than the net
loss.

                                      F - 9

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002


NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Stock Options

         The Company  accounts for its options issued to employees and directors
under the stock  incentive  plan,  formula stock option plan and certain options
granted  outside the plans issued to employees  and directors  under  Accounting
Principles  Board Opinion No. 25. The Stock incentive plan and the formula stock
option plan expired in 2001 and all options  outstanding under the plans expired
during 2002

Derivative and Hedging Activities

         Statement of Financial  Accounting Standards (SFAS) No. 133, Accounting
for Derivative Instruments and Hedging Activities, as amended, requires that all
derivative  instruments  be recognized as either assets or  liabilities  at fair
market value. The adoption of this statement on January 1, 2001 had no impact on
the Company.

Cash Equivalents

         For the purpose of  reporting  cash flows,  the Company  considers  all
highly liquid debt  instruments  purchased with maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

NOTE 2 - INCOME TAXES

         As of December 31, 2003,  deferred  income tax assets  consisted of the
following:
<TABLE>
<CAPTION>
<S>                                                                                              <C>
Net operating loss carryforwards                                                                 $        1,215,091
Future deductions temporary differences related
  to compensation, reserves, and accruals                                                                    34,076
Less valuation allowance                                                                                 (1,249,167)
                                                                                                 ------------------
Deferred income tax assets                                                                       $                -
                                                                                                 ==================
</TABLE>

         The  valuation  allowance  increased  $52,346  in  2003  and  decreased
$127,848  in  2002,  respectively.   At  December  31,  2003,  the  Company  has
consolidated net operating loss carryforwards for federal income tax purposes of
$3,563,707.  These net  operating  loss  carryforwards  expire at various  dates
beginning in 2005 through 2023. Due to the uncertainty  with respect to ultimate
realization,  the Company has established a valuation allowance for all deferred
income tax assets.


                                     F - 10

<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002

NOTE 3 - COMMON STOCK TRANSACTIONS

         On  December  16,  2002,  at the annual  meeting of  shareholders,  the
shareholders  approved an increase in the authorized  shares from  20,000,000 to
40,000,000.  On  December  19,  2002,  the  Company  filed  amended  articles of
incorporation  with the state of Utah  authorizing  40,000,000  shares of common
stock.

NOTE 4 - STOCK OPTIONS

Stock Incentive Plan

         The Company  had 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 were either incentive stock options as
defined in the Internal Revenue Code or non-qualified stock options. A committee
composed of  disinterested  members of the Board of Directors  had  authority to
determine,  among other matters, which eligible key employees and directors were
to  receive  options,  the price at which  the  non-qualified  options  would be
granted,  the  period  in which the  options  were  exercisable  and the type of
options granted. The exercise price for the incentive stock options could 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 contained anti-dilution  provisions which
provided 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.

         Under the stock  incentive  plan at December  31,  2001,  31,500  fully
vested  shares  were under  option with  exercise  prices of $0.60 per share and
remaining  contractual  lives  of less  than one  year.  There  were no  options
granted,  exercised,  or forfeited  during the years ended December 31, 2001 and
2000.  During 2001, the Stock  Incentive  Plan expired.  As of December 31, 2003
there are no outstanding options under the plan.

Formula Stock Option Plan

         The Company  had 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  had the  authority to  determine,
among other  matters,  the term of the options and the period  during  which the
options were  exercisable.  Under the terms of the Formula Plan,  each member of
the  committee  which  administered  the Stock  Incentive  Plan was  eligible to
receive  non-qualified  stock  options  pursuant  to a formula  set forth in the
Formula Plan. The exercise price for options granted were 30 percent of the fair
market  value of the common  stock on the date of the grant.  The  Formula  Plan
contained  anti-dilution  provisions  which  provided 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 - 11

<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002

NOTE 4 - STOCK OPTIONS (Continued)
----------------------

         At December 31, 2003 and 2002,  there were no shares under option under
the Formula Plan.  Prior to 2000,  4,500 options were issued to and exercised by
directors of the Company. During 2001, the Formula Plan expired.

Other Stock Options

         During  1995  through  2000,   non-qualified  options  were  issued  to
employees  and  consultants  for  services.  All  options are  exercisable  upon
granting.  A summary  of this  stock  option  activity  for 2003 and 2002 was as
follows:
<TABLE>
<CAPTION>
                                                                                                      Weighted
                                                                                                      Average
                                                                                   Option             Exercise
                                                                                   Shares              Price
                                                                             ------------------  ------------------

<S>                    <C>                                                   <C>                 <C>
Outstanding at January 1, 2002                                               $          430,000  $             0.48
  Granted                                                                                     -                   -
  Forfeited or expired                                                                        -                   -
                                                                             ------------------  ------------------

Outstanding at December 31, 2002                                                        430,000                0.48
  Granted                                                                                     -                   -
  Forfeited or expired                                                                  (54,000)               0.73
                                                                             ------------------  ------------------

Outstanding at December 31, 2003                                             $          376,000  $             0.44
                                                                             ==================  ==================
</TABLE>

The  following  table  summarizes  information  about  stock  options  issued to
employees outstanding at December 31, 2003:
<TABLE>
<CAPTION>
                             Options Outstanding                                                Options Exercisable
-----------------------------------------------------------------------------          --------------------------------------
                                             Weighted
                                             Average            Weighted                                        Weighted
     Range of                              Contractual           Average                                        Average
     Exercise             Number               Life             Exercise                     Number             Exercise
      Prices           Outstanding          (in years)            Price                   Exercisable            Price
------------------  ------------------  ------------------  -----------------          ------------------  ------------------


<S>   <C>                 <C>                  <C>                <C>                        <C>                 <C>
      $0.30               75,000               1.8                $0.30                      75,000              $0.30
==================  ==================  ==================  =================          ==================  ==================
</TABLE>
                                     F - 12
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2003 AND 2002


NOTE 4 - STOCK OPTIONS (Continued)
----------------------

The  following  table  summarizes  information  about  stock  options  issued to
non-employees outstanding at December 31, 2003:
<TABLE>
<CAPTION>
                             Options Outstanding                                                Options Exercisable
-----------------------------------------------------------------------------          --------------------------------------
                                             Weighted
                                             Average            Weighted                                        Weighted
     Range of                              Contractual           Average                                        Average
     Exercise             Number               Life             Exercise                     Number             Exercise
      Prices           Outstanding          (in years)            Price                   Exercisable            Price
------------------  ------------------  ------------------  -----------------          ------------------  ------------------

<S>                 <C>                 <C>                 <C>                        <C>                 <C>
  $0.30 - $0.39          263,500               1.9                $0.36                     263,500              $0.36
      $1.22               37,500               2.3                $1.22                      37,500              $1.22
------------------  ------------------  ------------------  -----------------          ------------------  ------------------

  $0.30 - $1.22          301,000               2.0                $0.47                     301,000              $0.47
==================  ==================  ==================  =================          ==================  ==================
</TABLE>

NOTE 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.  As of
December 31, 2003,  preferred stock dividends  payable in the amount of $18,914,
or $0.90  per share  are due and  payable.  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.

NOTE 7 - RELATED PARTY TRANSACTIONS

         The Company has a  consulting  arrangement  with an entity owned by the
Company's  chairman  whereby the Company agreed to pay $2,000 per month for 2001
and 2002.  Either party can terminate the  arrangement  at any time upon 30 days
prior  notice.  During 2000 and through May 31,  2001,  unpaid  amounts  accrued
interest  at 10%.  Beginning  April 1,  2001,  the  agreement  was  modified  to
eliminate any future accrual of interest.  As of December 31, 2003,  $66,000 was
owed under the arrangement.


                                     F - 13

<PAGE>



Item 8. Disagreements with Accountants on Accounting and Financial Disclosures.

         During the registrant's two most recent fiscal years and any subsequent
interim period  preceding the foregoing  dismissals  there were no disagreements
with accountants on any matter of accounting principles or practices,  financial
statement  disclosure or auditing scope or procedure,  which  disagreement(s) if
not resolved to the  satisfaction  of the former  accountants  would have caused
them  to  make  reference  to  the  subject  matter  of the  disagreement(s)  in
connection with their reports. The former accountants' reports for the period of
their  engagement  did not contain an adverse  opinion or disclaimer of opinion.
However the former accountants' reports were each modified for uncertainty as to
whether  the  registrant  would  continue  as a  going  concern.  There  was  no
qualification or modification as to audit scope or accounting principles


                                    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                     82                                 1995
     Ralph Henson                       59                                 1999
     Richard Bruggeman                  49                                 1995
     Sheng Jung Chiang                  58                                 2001
     Mao-Song Lee                       55                                 2002

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.  Prior to his
employment  with  InMedica,  Mr.  Henson worked 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
Manager 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.  Mr.  Bruggeman is employed with Kitchen  Resource,  Inc., a Utah based
firm  distributing  kitchen  appliances  and is also  employed  part time by the
Company. During 2002 he was employed full time by the Company. Prior to his full
time  employment  with  InMedica,  he was  employed  as  Controller  of  Kitchen
Specialties,  Inc., from 1993 - 2001, 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.
but has had no further  affiliation  with Robison Hill & Co. since that time. He
graduated from the University of Utah in 1981 with a B.S. degree in accounting.

SHENG JUNG  (ROBERT S.) CHIANG - Director.  Mr.  Chiang was vice  president  and
secretary  general of Onking  Chain  Store Co.  Ltd.  of the  Republic  of China
(hereinafter "Taiwan") from November, 1988 through June, 2000 when he became the
Vice  President of Chi Lin Technology Co. Ltd. He has been employed with Chi Lin
Technology  since  February 1, 2001.  Mr. Chiang has a BA from the National Chen
Chi University and an MBA from the National Taiwan University.

MAO-SONG  LEE -  Director.  Dr. Lee was  appointed  as a director of the Company
during October 2002.  Since 2001 he has been employed by Chi Lin Technology Co.,
Ltd., as Technical Vice President.  From 1998 until 2000 he was General Manager,
Pilot Plants for Union Chemical  Laboratories,  Industrial  Technology  Research
Institute of the Republic of China (Taiwan).  During the period 1994-1997 he was
Director of the Engineering  Plastics Division for Union Chemical  Laboratories,
Industrial  Technology Research Institute.  From 1983 until 1991 he was Director
of the Polymer  Division,  Union Chemical  Laboratories,  Industrial  Technology
Research  Institute.  He received a B.S. and M.S.  from the National  Cheng Kung
University  of Taiwan in 1970 and 1972,  respectively.  He also received a Ph.D.
and an M.B.A.  from the National Tsing Hua University of Taiwan in 1987 and from
the National Cheng Chi University in 1994, respectively.

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  shareholders  holding  greater than ten percent 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, 2003 all Section  16(a)
filing requirements  applicable to officers,  directors and shareholders holding
greater than ten percent were complied with.

Audit Committee Financial Expert

The Company's  board of directors  does not have an "audit  committee  financial
expert," within the meaning of such phrase under  applicable  regulations of the
Securities and Exchange Commission, serving on its audit committee. The board of
directors  believes  that all  members of its audit  committee  are  financially
literate and  experienced in business  matters,  and that one or more members of
the  audit  committee  are  capable  of  (i)  understanding  generally  accepted
accounting  principles  ("GAAP") and financial  statements,  (ii)  assessing the
general  application  of GAAP  principles in connection  with our accounting for
estimates,  accruals and reserves,  (iii) analyzing and evaluating our financial
statements,   (iv)  understanding  our  internal  controls  and  procedures  for
financial  reporting;  and (v) understanding audit committee  functions,  all of
which are attributes of an audit committee financial expert.  However, the board
of  directors  believes  that  there is not any audit  committee  member who has
obtained  these  attributes  through  the  experience  specified  in  the  SEC's
definition  of "audit  committee  financial  expert."  Further,  like many small
companies,  it is difficult  for the Company to attract and retain board members
who qualify as "audit  committee  financial  experts," and competition for these
individuals is significant.  The board believes that its current audit committee
is able to  fulfill  its  role  under  SEC  regulations  despite  not  having  a
designated "audit committee financial expert."


Item 10. Executive Compensation.

Executive Compensation.  The table below discloses the compensation of the chief
executive  officer of the Company  during the three fiscal years ended  December
31, 2003:
<TABLE>
<CAPTION>
                                        Annual Compensation
                                                      Restricted Stock                                Long Term Comp.
                                                            Awards                                      Common Stock
     Name                     Year Salary  Bonus                                 Underlying Options            Other
     ---------------------------------------------------------------------------------------------------------------
<S>                          <C>  <C>        <C>               <C>                        <C>              <C>
      Ralph Henson (CEO)     2003 $ 24,000   -                 -                          -                        -
      Ralph Henson (CEO)     2002 $ 96,000   -                 -                          -                        -
      Ralph Henson (CEO)     2001 $ 86,333   -                 -                          -                  $15,000 (2)
</TABLE>

         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 2003 and 2002.

         Compensation    Committee   Interlocks   and   Insider   Participation.
         Compensation  of officers and  employees is  determined by the Board of
         Directors.  Officers,  Ralph  Henson  and  Richard  Bruggeman  are also
         members of the Board of Directors.






     OPTIONS GRANTED IN THE LAST FISCAL YEAR (3)

                  % of Total
                    Options
                   Granted to         Exercise
          Options  Employees in      Price               Expiration
     Name Granted   FY 2001         ($/Share)               Date
     ------------------------------------------------------------
      None



                          AGGREGATED OPTIONS EXERCISED IN LAST
                      FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES
<TABLE>
<CAPTION>
                                                                    Value of Unexercised
                                               Number of                In-The-Money
                                          Unexercised Options      Options at Fiscal
                Shares                    at Fiscal Year End             Year End
               Acquired      Value           Exercisable/               Exercisable/
     Name     on Exercise    Realized        Unexercisable             Unexercisable

     <S>      <C>           <C>          <C>                       <C>
     None
</TABLE>
(2)  See "Certain Relationships and Related Transactions".
(3)  To persons in the executive compensation table.

         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.  The Company's 1991
Stock  Incentive Plan and 1991 Formula Stock Option Plan expired during the year
2001.  At  December  31,  2001  there  remained   31,500  fully  vested  options
exercisable  under the Stock  Incentive  Plan at $.60 per  share  which  options
expired  during 2002.  At December  31, 2003 there were no fully vested  options
exercisable under the Stock Incentive Plan.

Item 11.  Security  Ownership of Certain  Beneficial  Owners and  Management and
Related Stockholder Matters.

The following table furnishes information  concerning the common stock ownership
of directors, officers, and principal shareholders as of March 18, 2003:
<TABLE>
<CAPTION>
                                                Nature of                Number of
     Name and Position                 Ownership            Shares Owned                 Percent
     --------------------------------------------------------------------------------------------
<S>                                    <C>                  <C>                            <C>
     Chi Lin Technologies              Direct               5,328,204                      33.3%
     717 No. 71, Te Lun RD
     Jen Te Hsian
     Tainan County, Taiwan
     Principal Shareholder

     Larry E. Clark                    Direct                 978,000
     Chairman                          Indirect             1,219,025
                                                            ---------
                                       Total                2,197,025                      13.7%

     Ralph Henson                      Direct                 225,000                       1.4%
     President, Director
     Chief Executive Officer

     Richard Bruggeman                 Direct and             174,387 (4)                   1.1%
     Director, Chief                   Indirect               464,975 (5)                   2.9%
     Financial Officer                 Options                 75,000                       0.5%
                                                               ------                       ----
                                       Total                  714,362                       4.5%

     Sheng Jung (Robert S.) Chiang     Indirect                     * (6)
     Director

     Mao-Song Lee                      Indirect                     * (7)
Director

All Executive Officers                 Direct and
and Directors as a                     Indirect             8,389,591                      52.5%
group (5 persons)                      Options                 75,000                       0.5%
                                                           ----------                      ------
                                       Total                8,464,591                      53.0%
</TABLE>

(4)      Includes 400 shares held in  individual  retirement  accounts and 4,620
         shares held in a family trust of which Mr. Bruggeman is Trustee.

(5)      Shares held by Mr. Bruggeman's wife.

(6)      Mr. Chiang is vice  president of Chi Lin  Technologies  Co. Ltd.  which
         holds 5,328,204 shares.

(7)      Dr. Lee is director of biomedical  research of Chi Lin Technologies Co.
         Ltd. which holds 5,328,204 shares.

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 are based on 15,984,613  shares  outstanding
and assume the exercise of options,  to which the percentage  relates.  Rounding
causes differences in totals from percentage ownership shown.

Item 12. Certain Relationships and Related Transactions.

InMedica executed employment  contracts with its Chief Executive Officer,  Ralph
Henson, and its Chief Financial Officer,  Richard Bruggeman,  on April 25, 2001.
Mr. Henson's  contract  reaffirmed the provisions of his prior contract (See 8-K
of the Registrant dated December 1, 1999) except  paragraphs one and two thereof
which are  amended and  restated in their  entirety to provide for his full time
employment  for the period  April 1, 2001  until  March 31,  2003.  Compensation
payable  for his  services  during the  period  was $7,000 per month  during the
remainder  of 2001 and  $8,000  per  month  for the  balance  of the term of the
contract  which  expired on March 31, 2003.  Mr.  Henson also  continued to be a
member of the Board of  Directors of InMedica.  Mr.  Henson was also  separately
granted  the right to earn a finders fee for  raising up to  $1,000,000  for the
Company  and its  subsidiary.  The fee was paid by issuing  Mr.  Henson  125,000
restricted  shares  of  common  stock of the  Company  valued  at  $21,250.  See
"Business  General."  Mr.  Bruggeman's  contract  provided  for  his  part  time
employment  as the Chief  Financial  Officer of the  Company  from April 1, 2001
until March 31, 2003. He had the option to increase the  employment to full time
if warranted by the Company's  business,  at a  compensation  to be  negotiated.
Compensation under the contract was $3,500 per month beginning April 1, 2001 for
the balance of the year 2001 and  thereafter  $4,000 per month for the remaining
term of the contract which expired on March 31, 2003. The Company entered into a
consulting contract with Larry E. Clark, its Chairman,  effective April 1, 2001,
pursuant to which the Company pays the Chairman  $2,000 per month in  consulting
fees.  Fees  under  the  contract  are  presently  being  accrued  and are to be
disbursed based on the cash availability of the Company.

                                     PART IV

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

                           (3)      Articles of  Amendment,  dated  December 18,
                                    2002 to  Articles  of  Incorporation  of the
                                    Company  increasing the authorized shares of
                                    common stock from 20,000,000 to 40,000,000.

                           (10)     Consulting  agreement  with  Larry E.  Clark
                                    dated   April  1,  2001,   incorporated   by
                                    reference  to the Exhibits to Form 10KSB for
                                    the year 2002.

                           (10)     Stock Purchase  Agreement  between  InMedica
                                    Development    Corporation   and   Chi   Lin
                                    Technology  Co.  Ltd.  dated  May  10,  2001
                                    incorporated  by reference to Form 10QSB for
                                    the period ended 3/31/2001.

                           (10)     Development,   Licensing  and  Manufacturing
                                    Agreement   between   InMedica   Development
                                    Corporation  and Chi Lin Technology Co. Ltd.
                                    dated May 10, 2001 incorporated by reference
                                    to  Form   10QSB   for  the   period   ended
                                    3/31/2001.

                           (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.

                           (16)     The  letter  of Arthur  Andersen  LLP to the
                                    Commission   dated   January   15,  2002  is
                                    incorporated  by reference to the Form 8K/A1
                                    filed by the Company on January 18, 2002.

                           (16)     The  Letter of  Deloitte & Touche LLP to the
                                    Commission   dated   October   18,  2002  is
                                    incorporated  by  reference  to the  Form 8K
                                    filed by the Company on October 22, 2002.

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

                           (31)     Sarbanes-Oxley Section 302 Certification

                           (32)     Sarbanes-Oxley Section 906 Certification


(b) Reports on Form 8-K. None

Item 14. Controls and Procedures.

The  Company's  Chief  Executive   Officer  and  Chief  Financial  Officer  have
concluded,  based on an evaluation  conducted within 90 days prior to the filing
date of this Annual Report on Form 10-KSB that the Company's disclosure controls
and  procedures  (as defined in Exchange  Act Rules 13a - 14(c) and 15d - 14(c))
have  functioned  effectively  so as to provide those  officers the  information
necessary to evaluate  whether:  (i) this Annual Report on Form 10-KSB  contains
any  untrue  statement  of a  material  fact or omits to state a  material  fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading, with respect to the period covered by
this Annual Report on Form 10-KSB, and (ii) the financial statements,  and other
financial  information  included in this Annual  Report on Form  10-KSB,  fairly
present in all material respects the financial condition,  results of operations
and cash flows of the  Company as of, and for,  the periods  presented  therein.
There have been no significant  changes in the Company's internal controls or in
other factors that could  significantly  affect internal controls  subsequent to
the evaluation date, nor any significant  deficiencies or material weaknesses in
such controls requiring  corrective  actions. As a result, no corrective actions
were required or taken.


Item 15. Principal Accountant Fees and Services

         The following is a summary of the fees billed to us by Robison,  Hill &
Company for professional services rendered for the years ended December 31, 2003
and 2002:
<TABLE>
<CAPTION>
                         Service                                  2003                   2002
              ------------------------------                ------------------     ------------------
<S>                                                             <C>                     <C>
              Audit Fees                                        $ 12,100                $ 9,890
              Audit-Related Fees                                    -                      -
              Tax Fees                                               300                    575
              All Other Fees                                        -                      -
                                                            ------------------     ------------------
              Total                                             $ 12,400               $ 10,465
                                                            ==================     ==================
</TABLE>

Audit Fees.  Consists of fees billed for professional  services rendered for the
audits  of  our  consolidated  financial  statements,  reviews  of  our  interim
consolidated  financial  statements  included  in  quarterly  reports,  services
performed in connection  with filings with the Securities & Exchange  Commission
and related  comfort  letters and other  services that are normally  provided by
Robison,  Hill & Company in connection with statutory and regulatory  filings or
engagements.

Tax Fees. Consists of fees billed for professional  services for tax compliance,
tax  advice  and tax  planning.  These  services  include  assistance  regarding
federal,  state and local tax compliance  and  consultation  in connection  with
various transactions and acquisitions.

Audit  Committee  Pre-Approval of Audit and  Permissible  Non-Audit  Services of
Independent Auditors

         The Audit Committee, is to pre-approve all audit and non-audit services
provided by the independent auditors. These services may include audit services,
audit-related  services,  tax services  and other  services as allowed by law or
regulation.  Pre-approval  is  generally  provided  for up to one  year  and any
pre-approval  is detailed as to the  particular  service or category of services
and is generally  subject to a specifically  approved  amount.  The  independent
auditors  and  management  are  required  to  periodically  report  to the Audit
Committee regarding the extent of services provided by the independent  auditors
in accordance  with this  pre-approval  and the fees incurred to date. The Audit
Committee may also pre-approve particular services on a case-by-case basis.

         The Audit Committee pre-approved 100% of the Company's 2003 audit fees,
audit-related  fees,  tax fees,  and all other fees to the  extent the  services
occurred  after May 6, 2003,  the effective  date of the Securities and Exchange
Commission's final pre-approval rules.


<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

  Date:  March 25, 2004                         By /s/ Ralph Henson
                                                RALPH HENSON, President
                                                & Chief Executive Officer

                                                By /s/ Richard Bruggeman
                                                RICHARD BRUGGEMAN
                                                Chief Financial Officer



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.


/s/ Larry E. Clark                               DATE:  March 25, 2004
LARRY E. CLARK, Director


/s/ Richard Bruggeman                            DATE:  March 25, 2004
RICHARD BRUGGEMAN, Director


/s/ Ralph Henson                                 DATE:  March 25, 2004
RALPH HENSON, Director


                                                 DATE:  March 25, 2004
SHENG JUNG (ROBERT S.) CHIANG,
  Director


                                                 DATE:  March 25, 2004
Mao-Song Lee, Director