UNITED STATES
                       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, 2005
                           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 18,
2006 was approximately  $2,317,253.(4)  The number of shares  outstanding of the
issuer's  common stock,  $.001 par value,  as of March 27, 2006 was  18,129,493.
Documents incorporated by reference: none



--------------
(4) Based on 8,912,512  non-affiliate  shares at $.26 per share, the average bid
and asked price on that date.

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                                     PART I

ITEM 1. BUSINESS.

GENERAL.  InMedica  Development  Corporation  ("InMedica"  or the "Company") 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 57% owned subsidiary, and the negotiation and
finalization of a Joint  Development  Agreement (the  "Agreement")  with Wescor,
Inc., a Logan, Utah based medical technology company ("Wescor"). Pursuant to the
Joint  Development  Agreement,  Wescor purchased a minority position in MicroCor
and undertook further research and development work on the Company's  hematocrit
technology.  MicroCor  was  originally  acquired  by the Company in 1985 and has
since 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").

            As of September 7, 2004 and pursuant to the Agreement,  InMedica and
Chi Lin sold, a total of 15% of MicroCor  stock to Wescor (12% from InMedica and
3% sold from Chi Lin) for  $375,000.  The  purchase  price was paid $30,000 down
with the balance due in  installments  over 18 months.  The  purchase of the 15%
interest has now been  completed.  Wescor also assumed day to day  management of
MicroCor  as of  September  7, 2004 and  agreed to use its best  efforts  at its
expense  to  develop  the  hematorcrit  technology."  During  the  term  of  the
Agreement,  InMedica  continues to appoint three of five members of the board of
directors  of MicroCor  and Chi Lin and Wescor are each  entitled to appoint one
board  member.  Wescor's  management  of  MicroCor  and  the  Agreement  may  be
terminated  by  InMedica  if Wescor  fails to complete  any  development  Phase.
Through potential additional MicroCor stock issuances, Wescor may earn up to 49%
total ownership of MicroCor by funding and conducting additional  development of
hematocrit technology in three Phases over 18 months. The 18 month period may be
extended  in six  month  increments  by the  MicroCor  board of  directors.  See
"POTENTIAL MICROCOR STOCK ISSUANCES TO WESCOR."

          Upon  successful  completion  of the second  phase (ie. an FDA cleared
prototype)  and again upon  successful  completion of the third Phase (ie. first
production  of units for sale),  Wescor has an option to purchase the  remaining
MicroCor  shares from Chi Lin and InMedica for 90% of an appraised  value or 90%
of a value  suggested  by  Wescor,  subject to a fairness  opinion  obtained  by
InMedica.  Wescor is  entitled  to select  the  appraiser  with the  consent  of
InMedica  and Chi Lin.  The  Company  and Chi Lin then have a "trump  option" to
purchase  Wescor's  ownership  of  MicroCor  stock at an  increased  price.  See
"Options To Buy Remaining MicroCor Stock." MicroCor has granted InMedica and Chi
Lin an annual  royalty  of 4% of the  first  $5,000,000  of sales and  licensing
revenues  received  from the  hematocrit  technology,  3% of sales and licensing
revenues  exceeding  $5,000,000  but less than  $20,000,000  and 2% of sales and
licensing  revenues in excess of  $20,000,000.  The sellers are also entitled to
twenty  five  percent  (25%) of all  royalty  revenues  received  by MicroCor on
further  licensing of the hematocrit  technology.  A minimum royalty of $200,000

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per year is payable by MicroCor  commencing 18 months from September 7, 2004, to
be split 80%-20% between InMedica and Chi Lin. (See "Royalty Rights.")

            During the third quarter of 2005, Wescor advised the Company that it
had completed a prototype of the hematocrit  technology  suitable for conducting
clinical trials  necessary to prepare for a submission to the FDA for regulatory
review.  As a result,  the board of directors of MicroCor  approved  issuance of
500,000 shares of the restricted common stock of MircroCor to Wescor pursuant to
the Agreement.  Following the issuance of the MicroCor stock,  MicroCor is now a
57%  owned  subsidiary  of the  Company  and  Wescor  now  owns  29% and Chi Lin
Technology Company, Ltd. owns 14% of MicroCor.  Further development and progress
on the hematocrit technology is subject to continued risks. See "Risk Factors."

         POTENTIAL  MICROCOR  STOCK  ISSUANCES  TO WESCOR.  In the event  Wescor
completes  clinical  trials  and  obtains  the FDA's  clearance  to market  such
products (Phase 2), 500,000 additional  restricted shares of MicroCor stock will
be  issued  to  Wescor  by  MicroCor.   Then,  upon  manufacturing  and  initial
introduction  into the US market of such products (Phase 3), MicroCor will issue
to Wescor an additional 700,000 restricted shares of its stock,  giving Wescor a
total of 49% of the issued and outstanding  stock of MicroCor.  These additional
shares  to be  issued  to  Wescor  will be in  consideration  of each  Phase  of
development  work by Wescor.  The  determination  of Wescor's  completion of the
three Phases will be made by  MicroCor's  board which is controlled by InMedica.
In the event of a  disagreement  between  the parties as to  fulfillment  of the
above  standards,  the parties  intend to negotiate in good faith to resolve the
matter.  The number of restricted  shares to be issued by MicroCor to Wescor for
services has been determined during a process of arms length negotiation between
InMedica  and  Wescor.  During  such  negotiations,  the board of  directors  of
InMedica  considered  the  need  for  funding  to  continue  development  of the
hematocrit  technology,  the Company's present financial  condition (ie. lack of
cash flow, limited capital assets and limited borrowing  capacity),  the lack of
interest  expressed by larger companies  contacted by the board of directors (in
the absence of an FDA cleared  prototype),  the lack of present  capacity of the
smaller companies  contacted by the board (other than Wescor) and the reputation
and experience of Wescor in development  of medical  technology.  Based on these
considerations,  the board concluded that, in its judgment, the Agreement should
be pursued.

     OPTIONS TO BUY REMAINING  MICROCOR  STOCK.  Upon  completion of Phase 2,and
again upon  completion  of Phase 3, Wescor will have the option to purchase  all
(but not less than all) the  remaining  stock of MicroCor  from InMedica and Chi
Lin, for 90 days. The buyout price to Wescor for the remaining  MicroCor  shares
will be 90% of an appraised value or of a value suggested by Wescor. Wescor will
choose the  appraiser  subject to the right of InMedica and Chi Lin to object to
the selection.  In the case of an objection  Wescor will make another  selection
until the  parties are in  agreement.  Following  receipt of Wescor's  notice of
appraised value or suggested value,  InMedica and Chi Lin will have the right to
obtain a fairness opinion at their expense, before acting on Wescor's offer. The
fairness  opinion of the value of the  MircoCor  stock will be  obtained  from a
business  valuation  expert,  chosen by InMedica and Chi Lin, as to which Wescor
has no  reasonable  objection.  If the fairness  opinion  reports that  Wescor's

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appraised  or  suggested  value is not within a fair range,  Wescor's  option to
purchase  the  balance  of the  MicroCor  stock from Chi Lin and  InMedica  will
terminate.

           However,  if Wescor's  appraised or suggested  value is determined by
the fairness opinion to be within a fair range,  InMedica and Chi Lin will still
have the  opportunity  to acquire the complete  ownership of MicroCor  through a
"trump" option  allowing them to offer to purchase all of the shares of MicroCor
owned by Wescor at 110% of Wescor's  appraised value or suggested value. In such
case, Wescor may chose to sell its ownership of MicroCor to InMedica and Chi Lin
or may revive its first  option by a notice to InMedica  and Chi Lin  increasing
the purchase  price so as to be based on at least 110% of the valuation  used as
the  trump  option  value  by  InMedica  and Chi  Lin.  This  option  procedure,
essentially bidding for the right to purchase the balance of the MicroCor stock,
may be  repeated  as many  times  as is  necessary  until a  purchaser  has been
determined.  If Wescor is ultimately the purchaser, the Agreement will terminate
except for the  royalty  rights of  InMedica  and Chi Lin.  Wescor has also been
granted a right of first  refusal in the event of a bona fide third  party offer
to acquire MicroCor.

    ROYALTY  RIGHTS.  MicroCor has granted  certain  revenue  royalty  rights to
InMedica and Chi Lin under the Agreement  based on future  annual  revenues from
the hematocrit technology,  if any, and calculated as follows:  Annual royalties
will equal the sum of four  percent  (4%) of the first  $5,000,000  in sales and
licensing  revenues,  three  percent  (3%) of sales and  licensing  revenues  in
amounts exceeding $5,000,000 but not exceeding $20,000,000, and two percent (2%)
of sales and  licensing  revenues in amounts  exceeding  $20,000,000;  plus (ii)
twenty five percent (25%) of all royalty  revenues  (revenues  from licensing of
the  hematocrit  technology  to others).  The total  royalties are split between
InMedica and Chi Lin with  InMedica  receiving a percentage  of total  royalties
equal to a fraction,  the  numerator of which is the total world  revenues  from
sales of the  hematocrit  technology,  less the revenues from sales in Asia; and
the  denominator  of which is the total world  revenues from sales.  The Chi Lin
royalty is a percentage of total royalties equal to a fraction, the numerator of
which is revenue from sales in Asia;  and the  denominator of which is the total
world revenues from sales.  Asia is defined to mean  Australia,  New Zealand and
the countries of Asia (including without limitation, Indonesia, Malaysia and the
island  countries of the Western Pacific Rim; but excluding  Russia,  Turkey and
the countries of the Middle East from Iran and to the west).  Further, a minimum
royalty of $200,000  per year begins 18 months after the  effective  date and is
payable by MicroCor to InMedica and Chi Lin on an 80%-20% basis  without  regard
to whether  actual  sales  have been  made.  However in the event that any party
(including Wescor) or a third party acquires eighty percent control of MicroCor,
the new control party has the right to buy out the royalty  rights from InMedica
and Chi Lin for $1,000,000 or 100% of five times the sum of the minimum  royalty
payments  for the  immediately  preceding 12 months,  whichever is greater.  The
buyout proceeds would be shared 80%-20% by InMedica and Chi Lin.

         As a part of the transaction, InMedica transferred all of its rights in
the  non-invasive  hematocrit  technology  to MicroCor  and Chi Lin  licensed to

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MicroCor all rights relating to the non-invasive  technology owned by Chi Lin on
a royalty free basis (other than those  royalties  referred to in the  preceding
paragraph).  Further, Wescor assumed the responsibility to manage the day to day
affairs  of  MicroCor  and to  continue  the  development  of  the  non-invasive
hematocrit technology. However Wescor's management of MicroCor and the Agreement
may be terminated if no prototype has been developed in 12 months,  or if no FDA
clearance  is obtained  within 18 months,  or if no first  production  has begun
within 24 months or if Wescor has not fulfilled  payment  obligations  under the
contract.  The 24 month period may be extended in the  discretion  of InMedica's
board of directors. In connection with the Agreement, the Development, Licensing
and  Manufacturing  Agreement with Chi Lin has been  superceded by the Agreement
with Wescor.

              WESCOR.  Wescor is a privately held company engaged in developing,
manufacturing,  and  marketing  medical  instruments,  appliances,  and  related
products  for the  diagnostic  laboratory  market for more than  three  decades.
Wescor's  Biomedical  Products Division has established a reputation for quality
products  as well as quality  technical  support for its  products.  Wescor is a
leader in the laboratory  diagnosis of cystic fibrosis with its Macroduct(R) and
Nanoduct(R)  Sweat Testing Systems.  The Aerospray(R)  family of automatic slide
stainer-cytocentrifuges of Wescor are widely used in hematology and microbiology
laboratories,  providing the newest  technology in microscope  slide staining as
well as  cytocentrifugation.  Wescor  is also a  leader  in  osmometry  with its
Vapro(R) Vapor Pressure Osmometer.  The Wescor Membrane Osmometer makes a direct
measurement of Colloid Osmotic Pressure in whole blood or serum.

               CHI LIN TECHNOLOGY  CO. LTD. 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  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
anti-dilution  right expires May 10, 2006. The agreement also grants Chi Lin the
right to nominate two of five directors on the board of directors of the Company
and Chi Lin agrees to take no action to increase the number of its  directors to
more than 40% of all  directors  on the board for a period of five years  ending
May 10,  2006.  Effective  December  21,  2001  the  Company  appointed  two new
directors  nominated by Chi Lin pursuant to the above  agreement.  See "Officers
and Directors."

                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

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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 15 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
2001,  the Company  entered  into a  Development,  Licensing  and  Manufacturing
Agreement  with Chi Lin  Technologies  Co. Ltd. for further  development  of the
technology, which has now been superceded by the Agreement with Wescor.

         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 17 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.  On July 20,  2004  MicroCor  was issued a fourth

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patent:  Patent 6,766,191 "System and method for in-vivo hematocrit  measurement
using impedance and pressure  plethysmography." All of the Company's patents are
now owned by MicroCor, pursuant to the Agreement with Wescor.

         RAW  MATERIALS.   Materials  and  electronic  components  used  in  the
production and  development of a hematocrit  measuring  device 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,  2005  and  2004,   were  $247,090  and  $9,929
respectively.  None of the expenses were incurred on customer-sponsored research
activities relating to the development of new products.

         EMPLOYEES.  InMedica  had two part time  employees  as of December  31,
2005.

                                  RISK FACTORS

         Ownership of stock in the Company  involves very high risk, as a result
of the following risk factors:

     1. Substantial  Operating Losses.  Since InMedica  commenced  operations in
1983, it has incurred substantial operating losses and it has a retained deficit
of $(8,526,713)  as of December 31, 2005.  There is no assurance that profitable
operations will be achieved in the future.

     2. Financing Necessary. To date the Company's cash flow from operations has
not been  sufficient  to provide  required  working  capital and the Company has
relied upon  borrowing and  contractual  arrangements  (including the sale of an
increasing  percentage of rights in the  hematocrit  technology)  to develop the
hematocrit  device.  The  Company's  limited  revenues have been used to finance
operations and research and  development.  The future success of the Company may
depend  entirely  upon the success of  additional  fund raising from third party
sources (as to which there is no commitment).

     3. Competition and Technological  Change. The medical technology markets in
which the Company competes or proposes to compete are extremely  competitive and

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characterized by major companies which are dominant in the various markets.  The
Company is not a competitive  factor in those  markets.  Further,  the Company's
proposed product areas are characterized by rapid  technological  change.  There
can be no assurance that research and development of products by others will not
render the Company's products or processes obsolete or at a serious  competitive
disadvantage.

     4. Dependence on Key Personnel. The Company's prospects to develop products
and successfully compete in the marketing of such products will be substantially
dependent upon the experience,  abilities and services of the present  officers,
employees and directors of the Company and Wescor, Inc. The loss of the services
of one or more of these persons could have an adverse  effect on the business of
the  Company.  There  is no  assurance  that  the  Company  and  Wescor  will be
successful in retaining existing officers, directors and employees or attracting
additional qualified personnel as needs arise.

     5. Contractual Limitations. Wescor has the contractual right to discontinue
the hematocrit project, in its sole discretion, at any time.

     6. Government Regulation.  The Company's products are subject to regulation
by the Food and Drug  Administration  (the "FDA") both with respect to marketing
and the manner in which  products  are  manufactured.  There is no  assurance of
future  success in  meeting  regulatory  requirements  for FDA  approval  of the
hematocrit device.

     7. Possible Additional  Development.  Clinical trials or further evaluation
may result in the need to do  additional  development  work with  respect to the
hematocrit  device.  Such  development  may be expensive and time  consuming and
there is no assurance of success.

     8. No Dividends.  The Company has paid no dividends on its common stock and
does not intend to pay any dividends in the foreseeable future.

     9. Risks  Inherent  in Common  Stock  Ownership.  The  common  stock of the
Company is subject to fluctuations in market price due to market conditions, 144
sales and results of operations; in the event of liquidation of the Company, the
common  shareholders  would have last priority for  distribution  of any assets,
after creditors and preferred shareholders;  the market for the Company's common
stock is thinly  traded and there is no  assurance  that a market for the common
stock  will  exist  at a time  when a  shareholder  wishes  to  liquidate  stock
ownership.

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.

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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 table on the following page
     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, 2004                  $.06              $.03
     June 30, 2004                    .07               .04
     September 30, 2004               .11               .04
     December 31, 2004                .20               .09

     March 31, 2005                  $.40             $ .13
     June 30, 2005                    .27               .18
     September 30, 2005               .29               .17
     December 31, 2005                .29               .22

On March 15, 2006 there were  approximately  604 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.


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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 2005 was $34,046 as of December 31,
2005. See Note 7 to the Consolidated Financial Statements.

ITEM 6. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

PLAN OF OPERATION.  During the 12 months beginning January,  2006, the Company's
plan of  operation  is to  continue  to work  cooperatively  with  Wescor in the
development  and possible  demonstration  of the Company's  portable  hematocrit
device to other  companies.  In  connection  with this effort,  the Company will
require confidentiality  agreements from parties to which disclosure is made and
will allow such  parties  to  informally  evaluate  the  technology  in order to
determine  their interest.  During 2006,  Wescor is expected to continue to fund
the  research  and  development  efforts  of  MicroCor  pursuant  to  the  Joint
Development Agreement. During 2005 operating expenses was satisfied primarily by
proceeds  from the sale of MicroCor  stock to Wescor.  During 2004,  the Company
borrowed from Wescor in order to meet operating expenses and may need to rely on
borrowing in the future to meet  obligations.  While the Company has in the past
borrowed from affiliates,  such borrowing is not expected to be available in the
future to meet obligations and fund continued research and development.  In past
years  salaries of employees have been accrued and later settled by the issuance
of restricted stock. If necessary, InMedica will look for other funding sources.

LIQUIDITY AND CAPITAL  RESOURCES.  As of January 28, 2004, Wescor agreed to loan
monies under a Loan Agreement to InMedica for payment of administrative expenses
pursuant to an  "Overhead  Note." The Overhead  Note bore  interest at the prime
rate as announced from time to time by the Wall Street Journal.  Unpaid balances
of principal and accrued  interest  under the Overhead Note are  convertible  to
restricted  common  stock of InMedica at $.10 per share at Wescor's  discretion.
Wescor advanced  $108,970 on the Overhead Note over a period of seven months. As
of December 31, 2005,  $58,911 was owing on the Overhead Note including  accrued
interest.  The Overhead Note was due and payable April 1, 2005.  However  Wescor
deducts 20% ($3,000  per month) of each stock  payment it makes to InMedica  and
applies the payment to  retirement  of the Overhead  Note.  A conversion  of the
principal  and accrued  interest  owing on the Overhead  Note as of December 31,
2005 would have resulted in the issuance of 589,110 restricted shares or 3.2% of
the issued and outstanding common stock of InMedica However, to date, Wescor has
not given notice of intent to convert the note.

         During the year 2005 and 2004  liquidity  was  generated by  borrowings
from Wescor and from the  proceeds  of the sale of MicroCor  stock to Wescor and
sales of  restricted  InMedica  stock to members  of  management  (See  "Certain
Relationships and Related  Transactions")  and other private  investors.  During
2003,  liquidity  was  generated  from the sale of  stock  by  InMedica  and its
subsidiary MicroCor pursuant to the Stock Purchase Agreement dated May 10, 2001,
with Chi Lin. The Company expects to engage in fund raising during 2006 in order

10

<PAGE>

to meet cash needs. Research and development efforts of Wescor will be funded by
additional  issuances  of  MicroCor  stock  pursuant  to the  Joint  Development
Agreement.

RESULTS OF OPERATIONS.  The Company had an accumulated  deficit of $8,526,713 as
of December 31, 2005.  No revenues  from  operations  were  received in 2005 and
2004. No revenues from  operations  are expected  during 2006. The Company had a
net loss of $294,121  for the year ended  December 31, 2005 as compared to a net
income of $183,301 for 2004. The net income resulted  primarily from the gain on
sale of stock in the  subsidiary in the amount of $228,168.  Operating  expenses
decreased in 2005 when compared to 2004 by $56,470  primarily  because costs for
the special  shareholder meeting to approve the Wescor transaction were incurred
in 2004. During 2005 and 2004, the Company relied on Wescor for its research and
development requirements.

                              (Intentionally blank)



























11

<PAGE>


     ITEM 7.  FINANCIAL STATEMENTS

Independent Auditors' Report (Robison, Hill & Company)

Consolidated Balance Sheet as of December 31, 2005

Consolidated Statements of Operations for the years ended December 31, 2005
       and 2004

Consolidated Statements of Stockholders' Equity for the years ended
       December 31, 2005 and 2004

Consolidated Statements of Cash Flows for the years ended December 31, 2005
       and 2004

Notes to Consolidated Financial Statements





12

<PAGE>

                        INMEDICA DEVELOPMENT CORPORATION


                                       -:-

                          INDEPENDENT AUDITORS' REPORT


                           DECEMBER 31, 2005 AND 2004





















<PAGE>







                                    CONTENTS



                                                                          Page

Independent Auditors' Report ..............................................F-1

Consolidated Balance Sheet as of December 31, 2005 and 2004................F-3

Consolidated Statements of Operations for the
Years Ended December 31, 2005 and 2004.....................................F-4

Consolidated Statements of Stockholders' Equity for the
Years Ended December 31, 2005 and 2004.....................................F-5

Consolidated Statements of Cash Flows for the
Years Ended December 31, 2005 and 2004.....................................F-6

Notes to Consolidated Financial Statements.................................F-7










<PAGE>





                          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, 2005
and 2004, 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 the standards of the Public
Company Accounting Oversight Board (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
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, 2005
and 2004, 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, 2005 and 2004 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 16, 2006












                                     F-2


<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                                                                               DECEMBER 31,         DECEMBER 31,
                                                                                   2005                 2004
                                                                             -----------------    ------------------
<S>                                                                        <C>                  <C>
ASSETS
Current Assets
  Cash & Cash Equivalents                                                  $           51,885   $            $3,600
   Prepaid Expenses & Other                                                               200                   200
   Notes Receivable Current                                                            44,665               173,726
                                                                             -----------------    ------------------
        Total Current Assets                                                           96,750               177,526
                                                                             -----------------    ------------------

Equipment & Furniture, at Cost,
   Less Accumulated Depreciation of $253,728
        and $253,476, respectively                                                      1,493                   398
                                                                             -----------------    ------------------

Other Assets
   Notes Receivable Non-Current, net of unamortized discount of $335 and                    -                44,665
$6,609
                                                                             -----------------    ------------------

TOTAL ASSETS                                                                           98,243               222,589
                                                                             =================    ==================

LIABILITIES & STOCKHOLDER'S EQUITY
Current Liabilities
   Related Party Consulting Fees Payable                                               30,000                50,000
   Accounts Payable                                                                       477                33,299
   Accrued Payroll and related taxes                                                    5,553                35,933
   Accrued Interest                                                                       596                   379
   Preferred Stock Dividends Payable                                                   34,046                26,480
   Short-Term Notes Payable                                                            71,911               104,262
                                                                             -----------------    ------------------
        Total Current Liabilities                                                     142,583               250,353
                                                                             -----------------    ------------------

Minority Interest                                                                     (7,668)               (1,554)
                                                                             -----------------    ------------------

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 $128,619)                                               94,573                94,573
  Common Stock, $.001 par value: 40,000,000 shares authorized,
     18,129,493 and 16,622,993.share outstanding                                       18,129                16,623
Additional Paid-in Capital                                                          8,377,339             8,087,620
Accumulated Deficit                                                               (8,526,713)           (8,225,026)
                                                                             -----------------    ------------------
        Total Stockholders' Equity                                                   (36,672)              (26,210)
                                                                             -----------------    ------------------

TOTAL LIABILITIES &  STOCKHOLDERS' EQUITY                                  $           98,243   $           222,589
                                                                             =================    ==================
</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,
                                                                            ----------------------------------------
                                                                                  2005                  2004
                                                                            ------------------   -------------------
<S>                                                                       <C>                  <C>
ROYALTY REVENUES                                                          $                 -  $                  -
                                                                            ------------------   -------------------

OPERATING EXPENSES
   General & Administrative                                                           160,747               217,217
   Research & Development                                                             247,090                 9,929
                                                                            ------------------   -------------------
        Total Operating Expense                                                       407,837               227,146
                                                                            ------------------   -------------------

LOSS FROM OPERATIONS                                                                (407,837)             (227,146)
                                                                            ------------------   -------------------

OTHER INCOME (EXPENSE)
   Interest Income                                                                      6,274                 2,774
   Interest Expense                                                                   (5,315)               (4,670)
   Gain on Sale of Subsidiary                                                               -               228,168
   Other Income                                                                           128                11,202
   Gain on Sale of Securities                                                               -                 4,889
                                                                            ------------------   -------------------
        Total Other Income (Expenses), Net                                              1,087               242,363
                                                                            ------------------   -------------------

INCOME (LOSS) BEFORE MINORITY INTEREST                                              (406,750)                15,217

MINORITY INTEREST                                                                     112,629               168,084
                                                                            ------------------   -------------------

NET INCOME (LOSS)                                                                   (294,121)               183,301

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

NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS                       $         (301,687)  $            175,735
                                                                            ==================   ===================

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

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
   BASIC                                                                           17,854,630            16,068,472
                                                                            ==================   ===================
   DILUTED                                                                         18,512,764            17,518,616
                                                                            ==================   ===================
</TABLE>



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


                                      F-4

<PAGE>

<TABLE>
<CAPTION>
                                                          INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                                                          CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                                           FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                                                        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, 2004        21,016    $   94,573     15,982,993   $  15,983    $          -    $   8,024,260   $   (8,400,761)
Common Stock issued for Cash                                640,000         640                           63,360                 -
Preferred stock dividends            -             -              -           -               -                -           (7,566)
Net loss                             -             -              -           -               -                -           183,301
                             ----------     --------- --------------    --------     -----------     ------------    --------------

Balance, December 31, 2004      21,016        94,573     16,622,993      16,623               -        8,087,620       (8,225,026)
Common stock issued for cash         -             -      1,506,500       1,506                          149,144                 -
Sale of Subsidiary Stock             -             -              -           -               -          140,575                 -
Preferred stock dividends            -             -              -           -               -                -           (7,566)
Net income                           -             -              -           -               -                -         (294,121)
                             ----------     --------- --------------    --------     -----------     ------------    --------------

Balance, December 31, 2004      21,016    $   94,573     18,129,493   $  18,129    $          -    $   8,377,339   $   (8,526,713)
                             ==========     ========= ==============    ========     ===========     ============    ==============
</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,
                                                                             ---------------------------------------
                                                                                   2005                  2004
                                                                             ------------------    -----------------
<S>                                                                        <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income (Loss)                                                       $         (294,121)   $          183,301
   Adjustments to reconcile net loss to net cash used in
      operating activities:
      Depreciation and amortization                                                        252                  177
      Gain on Sale of Subsidiary                                                             -            (228,168)
      Subsidiary Shares issued in exchange for Research & Development                  247,090                    -
Costs
      Gain on Sale of Securities                                                             -              (4,889)
      Interest income from amortization or discount on notes receivable                (6,274)              (2,774)
      Minority interest in losses                                                    (112,629)            (168,084)
      Changes in assets and liabilities:
        Related party consulting fees payable                                         (20,000)             (16,000)
         Accounts payable                                                             (32,822)                9,260
         Accrued Interest                                                                  217                  379
         Accrued payroll and related taxes                                            (30,380)             (18,980)
                                                                             ------------------    -----------------
                   Net cash used in operating activities                             (248,667)            (245,778)
                                                                             ------------------    -----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of Equipment                                                               (1,347)                    -
   Proceeds from sale of securities                                                          -                4,890
   Proceeds from sale of subsidiary stock                                                    -               30,000
   Proceeds from note receivable                                                       180,000               45,000
                                                                             ------------------    -----------------
                   Net cash provided by (used in) investing activities                 178,653               79,890
                                                                             ------------------    -----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from notes payable                                                          13,000              114,970
   Payments on notes payable                                                          (45,351)             (10,708)
   Proceeds from sale of common stock                                                  150,650               64,000
                                                                             ------------------    -----------------
                   Net cash provided by (used in) financing activities                 118,299              168,262
                                                                             ------------------    -----------------

NET INCREASE IN CASH                                                                    48,285                2,374
CASH AT BEGINNING OF THE YEAR                                                            3,600                1,226
                                                                             ------------------    -----------------
CASH AT END OF THE YEAR                                                    $            51,885   $            3,600
                                                                             ==================    =================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   Cash paid during the year for interest                                  $             5,098   $            4,292
                                                                             ==================    =================
   Cash paid during the year for income taxes                              $               200   $              200
                                                                             ==================    =================

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING & FINANCING ACTIVITIES
   Sale of Subsidiary stock for notes receivable                           $                 -   $          270,000
                                                                             ==================    =================
</TABLE>


   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, 2005 AND 2004

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.  Since
1999, the Company has 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. Under the agreement, Chi
Lin also  acquired  stock  in  InMedica  and  stock  in  InMedica's  subsidiary,
MicroCor.

                                      F-7

<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations (Continued)

         Effective   September  7,  2004,  the  Company  entered  into  a  Joint
Development  Agreement (See Note 9) with Wescor, Inc., a Utah medical technology
company  ("Wescor"),  pursuant to which,  Wescor purchased 15% of the issued and
outstanding  common stock of MicroCor on a pro-rata basis from InMedica and from
Chi Lin for  $375,000.  The  purpose of the Joint  Development  Agreement  is to
further develop,  produce, and market the Technology.  Prior to the consummation
of the transaction  InMedica held 80% of the issued and outstanding common stock
of MicroCor and Chi Lin owned 20%. Following the transaction, InMedica held 68%,
Chi Lin held 17% and  Wescor  held 15% of the issued  and  outstanding  stock of
MicroCor.  InMedica's  portion of the purchase  monies,  $300,000,  will be paid
$30,000 down and the balance in  installments  over 18 months pursuant to a note
receivable (See Note 2). In the third quarter of 2005, Wescor,  Inc. advised the
Company  that it had,  through  MicroCor  Inc.,  completed  a  prototype  of the
hematocrit  device suitable for conducting  clinical trials necessary to prepare
for a submission to the FDA for  regulatory  review.  As a result,  the board of
directors of MicroCor  voted to issue  500,000  restricted  shares of the common
stock of MicroCor  to Wescor  pursuant to the Joint  Development  Agreement,  as
previously approved on January 24, 2005, at a meeting of Shareholders. Following
the issuance of the MicroCor  stock,  the Company owned 57% of MicroCor,  Wescor
owned 29% of MicroCor and Chi Lin  Technology  Company,  Ltd.  owned the balance
(14%) of 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 from  operations of $407,837 and $227,146 in 2005
and 2004, respectively,  and negative cash flows from operations of $248,667 and
$245,778 in 2005 and 2004, respectively. As of December 31, 2005 the Company had
an  accumulated  deficit of $8,526,713 and a  stockholders'  deficit of $36,672.
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  Joint  Development  Agreement,  utilizing  the
Non-Invasive Hematocrit Technology.

                                      F-8

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Patents

         The Company has four 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.

         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.

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 consist of the following:

                                                      December 31,
                                       ---------------------------------------
                                             2005                 2004
                                       -----------------    ------------------

Equipment                            $          244,033   $           242,686
Furniture                                        11,188                11,188
                                       -----------------    ------------------
                                                255,221               253,874
Less accumulated depreciation                 (253,728)             (253,476)
                                       -----------------    ------------------

Total                                $            1,493   $               398
                                       =================    ==================


         Depreciation expense for the years ended December 31, 2005 and 2004 was
$252 and $177, respectively.

                                      F-9

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

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

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. At December 31, 2005 and 2004, respectively,  there
were 658,134 and 1,450,144  potentially  dilutive common stock equivalents.  The
computation of Diluted EPS does not assume  exercise or conversion of securities
that would have an anti-dilutive 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.

Stock Options

         The Company  accounts for its options issued to employees and directors
under Accounting Principles Board Opinion No. 25.

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.

                                      F-10

<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

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

Concentration of Credit Risk

         The  Company has no  significant  off-balance-sheet  concentrations  of
credit  risk such as foreign  exchange  contracts,  options  contracts  or other
foreign  hedging  arrangements.  The Company  maintains the majority of its cash
balances with one financial institution, in the form of demand deposits.

Fair Value of Financial Instruments

         The carrying value of the Company's  financial  instruments,  including
receivables, accounts payable, accrued liabilities, and short-term notes payable
at  December  31,  2005 and  2004  approximates  their  fair  values  due to the
short-term nature of these financial instruments.

NOTE 2 - NOTES RECEIVABLE

         Notes receivable consisted of the following:
<TABLE>
<CAPTION>
                                                                   December 31,          December 31,
                                                                       2005                  2004
                                                                -------------------   -------------------
<S>                                                           <C>                   <C>
WesCor, Inc. Sale of 12% interest in MicroCor (see note 9)
   Monthly payments of $15,000 through
   March 7, 2006                                              $             45,000  $            225,000
Less Unamortized discount, effective rate 4.5%                                 335                 6,609
Less Current Portion                                                        44,665               173,726
                                                                -------------------   -------------------

Notes Receivable Non-Current                                  $                  -   $            44,665
                                                                ===================   ===================
</TABLE>

         The Company has  recorded  $6,274 in interest  income  during 2005 from
this note.

NOTE 3 - SHORT-TERM NOTES PAYABLE

         Notes payable consisted of the following:
<TABLE>
<CAPTION>
                                                                              December 31,          December 31,
                                                                                  2005                  2004
                                                                           -------------------   -------------------
<S>                                                                      <C>                    <C>
WesCor, Inc. Overhead Note, (see note 9) Due April 1, 2005 including interest at
  prime (5.00% at December 31, 2004)
  Unsecured convertible at $.10 per share                                $             71,911   $           104,262
                                                                           ===================   ===================
</TABLE>


                                      F-11


<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 4 - INCOME TAXES

         Deferred income tax assets consisted of the following:
<TABLE>
<CAPTION>
                                                          December 31,          December 31,
                                                              2005                  2004
                                                        ------------------    ------------------
<S>                                                   <C>                   <C>
Net operating loss carryforwards                      $         1,270,279   $        $1,280,115
Future deductions temporary differences related
  to compensation, reserves, and accruals                          16,978                25,936
Less valuation allowance                                      (1,278,257)           (1,306,051)
                                                        ------------------    ------------------
Deferred income tax assets                            $                 -   $                 -
                                                        ==================    ==================
</TABLE>


         The valuation allowance decreased $27,794 in 2005 and increased $56,884
in 2004,  respectively.  At December 31, 2005, the Company has  consolidated net
operating  loss  carryforwards  for federal  income tax purposes of  $3,686,826.
These net operating loss carryforwards expire at various dates beginning in 2006
through 2025. Due to the uncertainty with respect to ultimate  realization,  the
Company  has  established  a valuation  allowance  for all  deferred  income tax
assets.

NOTE 5 - COMMON STOCK TRANSACTIONS

         On  December  16,  2003,  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,  2003,  the  Company  filed  amended  articles of
incorporation  with the state of Utah  authorizing  40,000,000  shares of common
stock.

         During the last three years the  Company  made the  following  sales of
unregistered common stock in reliance upon Section 4(2) of the Securities Act of
1933:

<TABLE>
<CAPTION>
            Date                  Shares                       Shareholder                         Price
------------------------------ -------------- ---------------------------------------------- ------------------
<S>                            <C>            <C>                                            <C>
May 2, 2005                       715,500     Chi Lin Technology Company, Ltd                $          71,550
January 24, 2005                  440,000     Larry E. Clark                                 $          44,000
January 19, 2005                  101,000     Richard Bruggeman                              $          10,100
January 11, 2005                  125,000     Dean Clark                                     $          12,500
January 4, 2005                   125,000     Dave Martin                                    $          12,500
December 30, 2004                 240,000     Ralph Henson                                   $          24,000
October 14, 2004                  400,000     Larry E. Clark                                 $          40,000
</TABLE>

                                      F-12

<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 6 - STOCK OPTIONS

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 2005 and 2004 was as
follows:
<TABLE>
<CAPTION>
                                                                 WEIGHTED
                                                                 AVERAGE
                                            OPTION               EXERCISE
                                            SHARES                PRICE
                                       ------------------    -----------------
<S>                                    <C>                 <C>
Outstanding at January 1, 2004                   376,000   $             0.44
  Granted                                              -                    -
  Forfeited or expired                                 -                    -
                                       ------------------    -----------------

Outstanding at December 31, 2004                 376,000                 0.44
  Granted                                              -                    -
  Forfeited or expired                         (338,500)                 0.44
                                       ------------------    -----------------

Outstanding at December 31, 2005                  37,500   $                -
                                       ==================    =================
</TABLE>

The  following  table  summarizes  information  about  stock  options  issued to
employees outstanding at December 31, 2005:

<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>
$               -                   -                   -   $              -                  -                   -
</TABLE>

The  following  table  summarizes  information  about  stock  options  issued to
non-employees outstanding at December 31, 2005:
<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
-------------------  -----------------  ------------------  -----------------  -----------------   -----------------
<C>                  <C>                <C>                 <C>                <C>                 <C>
$            1.22              37,500                 0.3   $           1.22             37,500    $           1.22
</TABLE>


                                      F-13

<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 7 - 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, 2005,  preferred stock dividends  payable in the amount of $34,046,
or $1.62  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 8 - EARNINGS PER SHARE

         The folowing data show the amounts used in computing earnings per share
and the effect on income and the weighted  average  number of shares of dilutive
potential common stock
<TABLE>
<CAPTION>
                                                                                     FOR THE YEARS ENDED
                                                                                         DECEMBER 31,
                                                                           -----------------------------------------
                                                                                  2005                  2004
                                                                           -------------------   -------------------
<S>                                                                      <C>                   <C>
Net Income (Loss)                                                        $          (294,121)  $            183,301
Less: preferred dividends                                                             (7,566)               (7,566)
                                                                           -------------------   -------------------

Income (Loss) available to common stockholders used in basic EPS         $          (301,687)  $            175,735
                                                                           -------------------   -------------------

Convertible preferred stock                                                             7,566                 7,566
Convertible notes payable                                                               4,883                 4,670
                                                                           -------------------   -------------------
Income (Loss) available to common stockholders after assumed
     Conversion of dilutive securities                                   $          (289,238)  $            187,971
                                                                           ===================   ===================

Weighted average number of common shares used in basic EPS                         17,854,630            16,068,472
Effect of dilutive securities:
     Convertible preferred stock                                                       31,524                31,524
     Convertible notes payable                                                        589,110             1,042,620
     Options                                                                           37,500               376,000
                                                                           -------------------   -------------------
Weighted average number of common shares and dilutive potential
     common stock used in diluted EPS                                              18,512,764            17,518,616
                                                                           ===================   ===================
</TABLE>


                                      F-14

<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 9 - 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.  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.  During 2005,  $44,000 in accrued consulting was paid under
this  agreement.  As of  December  31,  2005  and  2004,  $30,000  and  $50,000,
respectively, was owed under the arrangement.

NOTE 10 - JOINT DEVELOPMENT AGREEMENT

         Effective  September 7, 2004,  InMedica  and MicroCor  entered into the
Joint Development  Agreement pursuant to which Wescor, a Utah medical technology
company  ("Wescor") agreed to purchase 15% of the issued and outstanding  common
stock of MicroCor on a pro-rata  basis from InMedica  (selling 12%) and from Chi
Lin Technology Co, Ltd of Tainan, Taiwan (selling 3%), ("Chi Lin") for $375,000.
Prior to the consummation of the transaction InMedica held 80% of the issued and
outstanding   common  stock  of  MicroCor  and  Chi  Lin  owned  20%.  Following
shareholder approval of the transaction, InMedica held 68%, Chi Lin held 17% and
Wescor  held 15% of the issued and  outstanding  stock of  MicroCor.  InMedica's
portion of the purchase monies,  $300,000, was paid $30,000 down and the balance
in installments  over 18 months  pursuant to a note receivable  (Note 2). Twenty
percent of each payment made to InMedica was applied to  outstanding  debt owing
from InMedica to Wescor (the Overhead Note, see note 3) in the amount of $71,911
at December 31, 2005.

         The  Agreement  provides  that in the  event  Wescor is  successful  in
producing  a working  prototype  using the  hematocrit  technology,  capable  of
meeting FDA GMP requirements  suitable for conducting  clinical trials (Phase1),
MicroCor will issue 500,000  additional  restricted  shares of MicroCor stock to
Wescor.  Thereafter if Wescor  completes  clinical  trials and obtains the FDA's
clearance  to market such  products  (Phase 2),  500,000  additional  restricted
shares of  MicroCor  stock  will be issued to  Wescor by  MicroCor.  Then,  upon
manufacturing  and  initial  introduction  into the US market  of such  products
(Phase 3), MicroCor will issue to Wescor an additional 700,000 restricted shares
of its stock,  giving Wescor a total of 49% of the issued and outstanding  stock
of  MicroCor.  These  additional  shares  to be  issued  to  Wescor  will  be in
consideration of each Phase of development work by Wescor.  The determination of
Wescor's  completion of the above three Phases will be made by MicroCor's  board
which is  controlled  by InMedica.  In the event of a  disagreement  between the
parties  as to  fulfillment  of the  above  standards,  the  parties  intend  to
negotiate in good faith to resolve the matter. The number of shares to be issued
by MicroCor to Wescor for services has been determined  during a process of arms
length negotiation  between InMedica and Wescor.  During such negotiations,  the
board of  directors  of  InMedica  considered  the need for  funding to continue
development  of the  hematocrit  technology,  the  Company's  present  financial
condition (ie. lack of cash flow, limited capital

                                      F-15

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 10 - JOINT DEVELOPMENT AGREEMENT (Continued)

assets and limited borrowing  capacity),  the lack of interest  expressed by the
larger  companies  contacted by the board of directors (in the absence of an FDA
cleared  prototype),  the lack of  present  capacity  of the  smaller  companies
contacted by the board (other than Wescor) and the  reputation and experience of
Wescor in development of medical technology. Based on these considerations,  the
board concluded that, in its judgment, the Agreement should be pursued.

         The  Agreement  provides  that in the  event  Wescor is  successful  in
producing  a working  prototype  using the  hematocrit  technology,  capable  of
meeting FDA GMP requirements  suitable for conducting  clinical trials (Phase1),
MicroCor will issue 500,000  additional  restricted  shares of MicroCor stock to
Wescor.  Thereafter if Wescor  completes  clinical  trials and obtains the FDA's
clearance  to market such  products  (Phase 2),  500,000  additional  restricted
shares of  MicroCor  stock  will be issued to  Wescor by  MicroCor.  Then,  upon
manufacturing  and  initial  introduction  into the US market  of such  products
(Phase 3), MicroCor will issue to Wescor an additional 700,000 restricted shares
of its stock,  giving Wescor a total of 49% of the issued and outstanding  stock
of  MicroCor.  These  additional  shares  to be  issued  to  Wescor  will  be in
consideration of each Phase of development work by Wescor.  The determination of
Wescor's  completion of the above three Phases will be made by MicroCor's  board
which is  controlled  by InMedica.  In the event of a  disagreement  between the
parties  as to  fulfillment  of the  above  standards,  the  parties  intend  to
negotiate in good faith to resolve the matter. The number of shares to be issued
by MicroCor to Wescor for services has been determined  during a process of arms
length negotiation  between InMedica and Wescor.  During such negotiations,  the
board of  directors  of  InMedica  considered  the need for  funding to continue
development  of the  hematocrit  technology,  the  Company's  present  financial
condition (ie. lack of cash flow,  limited capital assets and limited  borrowing
capacity),  the lack of interest expressed by the larger companies  contacted by
the board of directors (in the absence of an FDA cleared prototype), the lack of
present  capacity of the smaller  companies  contacted  by the board (other than
Wescor) and the  reputation  and  experience of Wescor in development of medical
technology.  Based on these  considerations,  the board  concluded  that, in its
judgment, the Agreement should be pursued.

         Upon  completion  of Phase 2, and  again  upon  completion  of Phase 3,
Wescor  will  have the  option  to  purchase  all (but  not less  than  all) the
remaining  stock of MicroCor from InMedica and Chi Lin, for 90 days.  The buyout
price to Wescor for the  remaining  MicroCor  shares will be 90% of an appraised
value or a value suggested by Wescor.  Wescor will choose the appraiser  subject
to the right of InMedica and Chi Lin to object to the selection.  In the case of
an  objection  Wescor  will make  another  selection  until the  parties  are in
agreement.  Following receipt of Wescor's notice of appraised value or suggested
value,  InMedica and Chi Lin will have the right to obtain a fairness opinion at
their  expense,  before acting on Wescor's  offer.  The fairness  opinion of the
value of the MircoCor stock will be obtained from a business  valuation  expert,
chosen by InMedica and Chi Lin, as to which Wescor has no reasonable  objection.
If the fairness  opinion  reports that Wescor's  appraised or suggested value is
not within a fair range, Wescor's

                                      F-16

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2005 AND 2004

NOTE 10 - JOINT DEVELOPMENT AGREEMENT (Continued)

option to purchase the balance of the  MicroCor  stock from Chi Lin and InMedica
will terminate.  However, if Wescor's appraised or suggested value is determined
by the  fairness  opinion to be within a fair range,  InMedica  and Chi Lin will
still have the opportunity to acquire the complete ownership of MicroCor through
a  "trump"  option  allowing  them to offer to  purchase  all of the  shares  of
MicroCor owned by Wescor at 110% of Wescor's appraised value or suggested value.
In such case, Wescor may chose to sell its ownership of MicroCor to InMedica and
Chi Lin or may  revive  its first  option by a notice  to  InMedica  and Chi Lin
increasing  the  purchase  price  so as to be  based  on at  least  110%  of the
valuation  used as the trump option  value by InMedica and Chi Lin.  This option
procedure,  essentially  bidding for the right to purchase  all of the  MicroCor
stock,  may be repeated as many times as is necessary until a purchaser has been
determined.  If Wescor is ultimately the purchaser, the Agreement will terminate
except for the  royalty  rights of  InMedica  and Chi Lin.  Wescor has also been
granted a right of first  refusal in the event of a bona fide third  party offer
to acquire MicroCor.

NOTE 11 - ROYALTY RIGHTS

         In  connection  with the  Joint  Development  Agreement,  MicroCor  has
granted  certain  revenue  royalty  rights  to  InMedica  and Chi Lin  under the
Agreement  based on future annual  revenues from the  hematocrit  technology and
calculated as follows:  Annual royalties will equal the sum of four percent (4%)
of the first $5,000,000 in sales and licensing  revenues,  three percent (3%) of
sales and licensing  revenues in amounts exceeding  $5,000,000 but not exceeding
$20,000,000,  and two percent  (2%) of sales and  licensing  revenues in amounts
exceeding  $20,000,000;  plus (ii)  twenty  five  percent  (25%) of all  royalty
revenues (revenues from licensing of the hematocrit  technology to others).  The
total royalties are split between InMedica and Chi Lin with InMedica receiving a
percentage of total royalties equal to a fraction, the numerator of which is the
total world revenues from sales of the hematocrit technology,  less the revenues
from sales in Asia;  and the  denominator  of which is the total world  revenues
from sales.  The Chi Lin royalty is a percentage of total  royalties  equal to a
fraction,  the  numerator  of  which is  revenue  from  sales  in Asia;  and the
denominator of which is the total world revenues from sales.  Asia is defined to
mean  Australia,  New  Zealand  and the  countries  of Asia  (including  without
limitation,  Indonesia, Malaysia and the island countries of the Western Pacific
Rim; but excluding Russia, Turkey and the countries of the Middle East from Iran
and to the west).  Further,  a minimum  royalty of  $200,000  per year begins 18
months after the  effective  date and is payable by MicroCor to InMedica and Chi
Lin on an 80%-20% basis without  regard to whether  actual sales have been made.
However in the event that any party (including Wescor) or a third party acquires
eighty percent  control of MicroCor,  the new control party has the right to buy
out the royalty  rights from InMedica and Chi Lin for $1,000,000 or 100% of five
times the sum of the minimum royalty  payments for the immediately  preceding 12
months,  whichever is greater.  The buyout  proceeds  would be shared 80%-20% by
InMedica and Chi Lin.


                                      F-17

<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 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

ITEM 8A.  CONTROLS AND PROCEDURES.
         Management is responsible for  establishing  and  maintaining  adequate
internal  control over financial  reporting for the small business  issuer.  The
Company's  Chief Executive  Officer and Chief Financial  Officer have concluded,
based on an  evaluation  required  by  paragraph  (b) of Section  240.13a-15  or
240.15d-15 of the Rules of the Securities Exchange Act of 1934,  conducted as of
the end of the period  covered by this Annual  Report on Form  10-KSB,  that the
Company's  disclosure  controls and procedures (as defined in Exchange Act Rules
13a - 15(e) or 240.15d-15(e)) have functioned effectively.  For purposes of this
Item,  the term  DISCLOSURE  CONTROLS AND  PROCEDURES  means  controls and other
procedures of the Company that are designed to ensure that information  required
to be disclosed by the Company in the reports that it files or submits under the
Securities  Exchange  Act  (15  U.S.C.  78a ET  SEQ.)  is  recorded,  processed,
summarized and reported,  within the time periods  specified in the Commission's
rules and forms. Disclosure controls and procedures include, without limitation,
controls  and  procedures  designed  to ensure that  information  required to be
disclosed by the Company in the reports  that it files or submits  under the Act
is  accumulated  and  communicated  to the issuer's  management,  including  its
principal  executive and principal  financial  officers,  or persons  performing
similar functions,  as appropriate to allow timely decisions  regarding required
disclosure.

        There  have been no  changes  in the  Company's  internal  control  over
financial  reporting  identified in connection  with the evaluation  required by
paragraph (d) of Section 240.13a-15 or 240.15d-15 of the Rules of the Securities
Exchange Act of 1934,  that occurred  during the Company's  last fiscal  quarter
(the Company's  fourth fiscal quarter in the case of an annual report) that have
materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting

ITEM 8B.   OTHER INFORMATION.    None


13

<PAGE>


                                    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               84                     1995
Ralph Henson                 61                     1999
Richard Bruggeman            51                     1995
Sheng Jung Chiang            60                     2001
Mao-Song Lee                 58                     2002

         Certain  information  follows  regarding  the  executive  officers  and
directors of InMedica and their business  backgrounds for at least the last five
years.

LARRY E. CLARK - Chairman of the Board since April 1995. 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.  Beginning in
1975 and continuing to December,  2003, Mr. Clark was president of Larry Clark &
Associates,  a  private  company  which  engaged  in  a  corporate  mergers  and
acquisitions  business  or  business  consulting.  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 was President of
InMedica from April 1995 until December, 1999. 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 of the Company
since December 1999.  Prior to his employment  with InMedica,  Mr. Henson worked
from 1996  until  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.

14

<PAGE>

RICHARD BRUGGEMAN - Director and Secretary/Treasurer and Chief Financial Officer
of the Company since April,  1995 and full time  employee of the Company  during
2002. Since 2003, Mr. Bruggeman has been employed with Kitchen Resource, Inc., a
Utah based firm distributing  kitchen  appliances.  He was employed part time or
full time as  Controller  of Kitchen  Specialties,  Inc.  from 1993 to December,
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.  He  has  since  had no
affiliation  with that accounting firm. He graduated from the University of Utah
in 1981 with a B.S. degree in accounting.

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

MAO-SONG LEE - Director of the Company since  December,  2002.  Since  February,
2001 he has been employed full time by Chi Lin  Technology Co. Ltd. as Technical
Vice President.  From August,  1998 until January,  2001 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.  No  arrangement  or  understanding  exists  between any
officer or director and any other person  pursuant to which he was  nominated or
elected as  director  or  selected  as an  officer,  except  the Stock  Purchase
Agreement  with Chi Lin  Technologies  Co. Ltd. which allows Chi Lin to fill two
vacancies  on the board of  directors.  However  Chi Lin also  agreed that for a
period of five (5) years  beginning  on the Closing  Date (May 10, 2001) it will
not take any action either directly or indirectly to increase its representation
on the  Company's  Board of  Directors  such that the number of members  thereof
appointed or elected by Chi Lin (as a percentage  of the total number of members
of the Board of Directors) exceeds forty percent (40%).

           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

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<PAGE>

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, 2005, and thereafter, all
Section  16(a)  filing  requirements  applicable  to  officers,   directors  and
shareholders holding greater than ten percent were timely met.

            CODE OF ETHICS.  The  Company  has  adopted a code of ethics for its
principal executive officer,  principal financial officer,  principal accounting
officer or controller,  and persons performing similar functions.  A copy of the
Code of Ethics will be furnished upon request without charge.

                           BOARD OF DIRECTORS MEETINGS
                     AND ATTENDANCE AT SHAREHOLDER MEETINGS

         The Company does not have nominating or audit  committees of the Board.
The full  board  conducts  the  function  of an audit  committee.  There was one
meeting of the Board of Directors held during the fiscal year ended December 31,
2005.  Messrs.  Chiang and Lee were unable to attend one of the board  meetings.
All  directors,   except  Messrs.  Chiang  and  Lee  attended  the  last  annual
shareholder  meeting of the Company,  held January 25, 2005. The Company expects
all  directors  to be in  attendance  at  shareholder  meetings  and attempts to
schedule  meetings at a time when all directors will be able to attend,  however
conflicting  schedules,  particularly  with the two directors from Taiwan may on
occasion preclude their attendance at shareholder meetings which are held in the
United States.

                        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 the Company's 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

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<PAGE>

is able to  fulfill  its  role  under  SEC  regulations  despite  not  having  a
designated "audit committee financial expert."

                              NOMINATING COMMITTEE

         The full board of  directors  of the Company  functions as a nominating
committee to select potential additional directors of the Company. The board has
not specifically  designated a separate  nominating  committee  because all five
members of the board of directors  desire to be involved in the selection of any
new director.  The board does not have a specific  charter to govern its actions
as a nominating committee,  nor are any members of the board "independent".  Due
to the relatively  small size of the Company,  the risks associated with service
on the board of a public  company  and the  limited or  negligible  compensation
available to such directors,  the Company considers it unlikely that a qualified
person would serve on the board that was truly independent. However, the board's
unwritten policy for  consideration of potential  members of the board nominated
by  shareholders  is to seriously  consider any potential  board member that has
personal  relationships  and/or  expertise  that  might  be  beneficial  to  the
Company's  business.  The Company has in the past and expects to continue in the
future to be interested in discussions with persons  interested in the Company's
business  and able to make a  significant  contribution  to the  success  of the
Company's  technology.  Shareholders  that  desire to  introduce  persons to the
Company's  board of directors  should  contact  Larry E. Clark,  Chairman of the
Board  or  Ralph  Henson,  Chief  Executive  Officer  of the  Company  with  any
suggestions  or  recommendations  for  director.  These  persons  may be reached
through the Company's  office  telephone  801-521-9300  during regular  business
hours.  A copy of the  resume of any  candidates  should be  submitted  with the
inquiry.  At the  present  time,  the  Company  is not  actively  searching  for
additional members of the board,  however members of the board are interested in
meeting qualified persons. Qualified persons normally would be persons that have
at least a college  education and  professional  or technical  experience in the
medical products industry.  The Company is especially interested in persons with
fund raising contacts or technology development contacts. Generally, shareholder
nominees would be evaluated in the same manner as any other nominee. The current
directors  were each  originally  nominated  by the  Company's  chief  executive
officer or by Chi Lin Technologies,  Co. Ltd, which has the contractual right to
nominate two directors.  Specifically, Larry E. Clark became a director upon the
nomination of Alan Kaminsky who was then CEO and a 5% plus  shareholder.  Messrs
Henson and  Bruggeman  were each  nominated  by Mr.  Clark  while Mr.  Clark was
serving as CEO and while Mr. Clark was a 10% plus  shareholder.  Messrs.  Chiang
and Lee were nominated by Chi Lin, a principal shareholder and control person of
the Company, owning approximately 33 1/3% of the stock of the Company.

                         SECURITY HOLDER COMMUNICATIONS

         Shareholders of the Company may communicate  directly with the board of
directors by contacting the Company's offices during regular business hours. The

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<PAGE>

Company's  telephone  number  is  801-521-9300.   Communications  to  individual
directors  may be  made by  mail  addressed  to the  director  care of  InMedica
Development Corporation at the Company's offices 825 North 300 West, Suite N132,
Salt Lake City, Utah 84103.

     ITEM 10. EXECUTIVE COMPENSATION.

          The table below  discloses  the  compensation  of the chief  executive
officer of the Company during the three fiscal years ended December 31, 2005:

                     Annual Compensation       Long Term Compensation
                     ------------------------------------------------
                                      Restricted Stock Common Stock
                                               Awards  Underlying
Name                   Year   Salary  Bonus             Options         Other
--------------------------------------------------------------------------------
Ralph Henson (CEO)     2005 $ 24,000   -          -        -          $60,000(5)
Ralph Henson (CEO)     2004 $ 42,998   -          -        -          $50,000(6)
Ralph Henson (CEO)     2003 $ 24,000   -          -        -            5,000

         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.

         Since the  beginning of the last fiscal year,  there have been no stock
options or stock  appreciation  rights granted to or exercised by officers named
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 entered into a consulting contract with Larry E. Clark, its
Chairman, effective April 1, 2001, pursuant to which the Company compensates the
Chairman  $2,000 per month in  consulting  fees.  Fees under the  contract  have
historically  been  accrued  until  the  Company  was able to pay the  Chairman.
(However,  see "Management  Indebtedness and  Transactions" for a description of
recent payments to the Chairman which he used to purchase  additional  shares of
restricted common stock of the Company.)

                             DIRECTORS' COMPENSATION

         Directors may be compensated at the rate of $100 for attendance at each
board meeting,  but did not receive  compensation  for meetings  during the last
three years.

(5) - Paid or reimbursed by Wescor.
(6) - Paid or reimbursed by Wescor.


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<PAGE>

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 27, 2006:

                              Nature of          Number of
Name and Position             Ownership          Shares Owned            Percent
--------------------------------------------------------------------------------
Chi Lin Technologies          Direct             6,043,704(7)              33.3%
717 No. 71, Te Lun RD
Jen Te Hsian, Taiwan
Principal Shareholder

Larry E. Clark                Direct               78,000                    .4%
Chairman                      Indirect          2,959,025(8)               16.3%
                                                ---------                  -----
                              Total             3,037,025                  16.8%

Ralph Henson                  Direct              315,000                   1.7%
President, Director
Chief Executive Officer

Richard Bruggeman             Direct                4,620(9)                0.0%
Director, Chief               Indirect            535,742(10)               3.0%
                                                  -------                   ----
                              Total               540,362                   3.0%

Sheng Jung Chiang             Indirect                 * (11)
Director

Mao-Song Lee                  Indirect                 * (12)
Director

Wescor, Inc.                  Options                  * (13)

All Executive Officers        Direct            6,441,324                  35.5%
and Directors as a            Indirect          3,494,767                  19.3%
group (5 persons)                               ---------                  -----
                              Total             9,936,091                  54.8%

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

(7) - Excludes  anti-dilution rights to purchase shares. Chi Lin's anti-dilution
rights are  exercisable,  in its  discretion,  from time to time during the five
year period which began May 10, 2001,  upon the issuance of shares of the common
stock of the Company.
(8) - Shares  held by Larry Clark and  Jacquelyn  Clark as Trustees of the Larry
and  Jacquelyn  Clark Family Trust.
(9)  Includes  4,620  shares held in a family  trust of which Mr.  Bruggeman  is
Trustee.
(10) Shares held by Mr. Bruggeman's wife.
(11) Mr. Chiang is vice president of Chi Lin  Technologies  Co. Ltd. which holds
6,043,704  shares.
(12) Dr. Lee is director of biomedical research of Chi Lin Technologies Co. Ltd.
which holds 6,043,704 shares.
(13)  Wescor has the right to convert a debt owing by the Company to Wescor into
restricted common stock at $.10 per share. As of December 31, 2005 the amount of
the debt was $58,911 and if  exercised  would have  resulted in the  issuance of
589,110  shares as of that date,  or about  3.2% of the  issued and  outstanding
stock of the Company.

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<PAGE>


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 18,129,493  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.

         No officer,  director,  nominee for director,  or associate of any such
officer,  director or nominee has been,  since the  beginning of the last fiscal
year, or is presently  indebted to the Company.  There have been no transactions
since  the  beginning  of the  Company's  last  fiscal  year,  nor are there any
proposed  transactions,  in which any  officer,  director,  nominee or principal
security holder has a direct or indirect material interest,  except as described
herein and in the disclosure below:

         Effective  September 27, 2004 Larry E. Clark,  Ralph Henson and Richard
Bruggeman  each  subscribed  to purchase  shares of the Company in the following
amounts  respectively:  840,000,  240,000,  and  101,000  at a price of $.10 per
share. The closing bid price on the date of subscription was $.10 per share. The
Subscription  exercise was  contingent  on the Company  paying each of the three
individuals  the amount of their accrued but unpaid wages or consulting  fees in
the amounts of $84,000, $34,998, and $16,002, respectively. The 1,181,000 shares
to be purchased  constituted  approximately  7.6% of the issued and  outstanding
stock of the Company,  at the time acquired for total consideration of $118,100.
As of January  31,  2005,  all wages had been paid and all  subscription  rights
pursuant to these agreements had been exercised.

                              (Intentionally blank)

















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                                     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.

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<PAGE>

                  (10)     Joint  Development  Agreement between the Company and
                           Wescor, Inc. dated September 7, 2004, incorporated by
                           reference to the Company's Form 8- K filed  September
                           14, 2004.

                  (10)     Loan Agreement dated February 1, 2004 between Wescor,
                           Inc. and InMedica.  incorporated  by reference to the
                           Company's Form 10QSBA#1 for September 30, 2004.

                  (10)     Assignment and Security  Agreement  dated February 1,
                           2004 between Wescor, Inc. and InMedica.  incorporated
                           by  reference  to the  Company's  Form  10QSBA#1  for
                           September  30, 2004. . (10) Overhead Note of InMedica
                           dated February 19, 2004. incorporated by reference to
                           the Company's Form 10QSBA#1 for September 30, 2004..

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

                  (31.1)   Sarbanes-Oxley  Section  302  Certification  -  Ralph
                           Henson

                  (31.1)   Sarbanes-  Oxley Section 302  Certification-  Richard
                           Bruggeman

                  (32.1)   Sarbanes-Oxley Section 906 Certification


(b) Reports on Form 8-K. None

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<PAGE>


ITEM 14. 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, 2005
and 2004:

           Service                      2005                   2004
------------------------------    ------------------     ------------------
Audit Fees                             $15,035               $ 17,905
Audit-Related Fees                        -                      -
Tax Fees                                 500                      300
All Other Fees                            -                      -
                                  ------------------     ------------------
Total                                  $15,535               $ 18,205
                                  ==================     ==================


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  2004 and 2005
audit fees, audit-related fees, tax fees, and all other fees.


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<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 29,  2006                          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 29, 2006
LARRY E. CLARK, Director


/s/ Richard Bruggeman                             DATE:  March 28,  2006
RICHARD BRUGGEMAN, Director


/s/ Ralph Henson                                  DATE:  March 29, 2006
RALPH HENSON, Director


/s/ Sheng Jung Chiang                             DATE:  March 30, 2006
SHENG JUNG CHIANG,  Director


/s/ Mao-Song Lee                                  DATE:  March 30, 2006
Mao-Song Lee, Director



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                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                FORM 10KSB - FOR THE YEAR ENDED DECEMBER 31, 2005

Exhibit 31.1    CERTIFICATION PURSUANT TO SECTION 302
                OF THE SARBANES-OXLEY ACT OF 2002 - Ralph Henson

Exhibit 31.2    CERTIFICATION PURSUANT TO SECTION 302
                OF THE SARBANES-OXLEY ACT OF 2002 - Richard Bruggeman

Exhibit 32.1    CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED
                PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002





25