U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-KSB
                      Annual Report Pursuant to Section 13
                 or 15(d) of the Securities Exchange Act of 1934
                      For the Year Ended December 31, 2002

                           Commission File No. 0-12968

                        INMEDICA DEVELOPMENT CORPORATION

                        Utah                  87-0397815
             ------------------------ -----------------------------
            (State of Incorporation) (I.R.S. Employer Identification No.)
                         825 North 300 West, Suite N132
                           Salt Lake City, Utah 84103
                                 (801) 521-9300

           Securities Registered Pursuant to Section 12(g) of the Act:
                                             Name of Each Exchange
           Title of Each Class               on which Registered
           -------------------               -------------------
           Common Stock, $.001 par value     None

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or Section  15(d) of the Exchange Act during the past 12 months,  and (2) has
been subject to such filing require-ments for the past 90 days. [X] yes [ ] no

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation SB contained in this form, and no disclosures will be con-tained,  to
the best of  registrant's  knowledge,  in any  definitive  proxy or  information
statement  incorporated  by  reference  in Part III of this  Form  10-KSB or any
amendments to this Form 10-KSB [X ]

Issuer's  revenues for its most recent  fiscal year: $ 0. The  aggregate  market
value of voting stock held by  non-affiliates  of the registrant as of March 12,
2003 was  approximately  $428,701(1).  The number of shares  outstanding  of the
issuer's common stock, $.001 par value, as of March 13, 2003 was 15,984,613.

DOCUMENTS INCORPORATED BY REFERENCE: None

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

                                       1
<PAGE>



                                     PART I

ITEM 1. BUSINESS.

General.  InMedica  Development  Corporation  ("InMedica") was incorporated as a
Utah  corporation  on June  16,  1983.  During  the  last  three  fiscal  years,
InMedica's  primary activity has been the operation of the business of MicroCor,
Inc.  ("MicroCor"),  an 80% owned  subsidiary.  MicroCor was acquired  effective
December 31, 1985 and has engaged in the  development or sale of certain medical
technology products. During the last fiscal year, InMedica and MircoCor received
no revenues from operations. (See "Results of Operations").

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

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

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

The  Company  also  entered  into a  Development,  Licensing  and  Manufacturing
Agreement with Chi Lin pursuant to which  InMedica  granted Chi Lin a world-wide
license to develop and manufacture products based on the hematocrit  technology.
The  primary  product  to be  developed  is a  device  capable  of  non-invasive
hematocrit measurement.  The agreement also grants Chi Lin the exclusive license
to distribute the products in Australia,  New Zealand, and the countries of Asia
(excluding Russia and the Middle East). InMedica retained distribution rights in
other areas of the world.

Note Receivable. In June 2000, the Company licensed its hematocrit technology to
an unrelated entity in exchange for a note receivable of $150,000,  due June 19,


                                       2
<PAGE>

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

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

Product  Development.  For the past 12 years, the Company has conducted research
or engaged in fund  raising to  support  development  of a method for  measuring
hematocrit  non-invasively  (without  drawing blood) and has applied for patents
covering this  technology.  Hematocrit is the percentage of blood volume made up
by  red  blood  cells  and  is a  common  laboratory  test  currently  performed
invasively  by drawing a blood  sample from the  patient.  During May 1997,  the
Company  employed Dr. Gail Billings,  a bio-medical  researcher  and,  effective
August 29,  1997,  the Company  engaged  Medical  Physics,  Inc.,  a  biomedical
research company located in Salt Lake City, Utah to conduct further research and
development  on the project.  The  researchers  engaged in  additional  research
through  1998.   During  1999,  the  researchers   completed   production  of  a
transportable  prototype  device for use in  demonstrating  the technology.  See
"Business   General"  for  a  description  of  a   Development,   Licensing  and
Manufacturing  Agreement with Chi Lin  Technologies Co. Ltd. entered into during
2001.

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

Patents.  As of  December  12,  1995,  the  Company's  application  for a patent
entitled "Method and Apparatus for Non-Invasively  Determining  Hematocrit," was
allowed by the U.S.  Patent Office and the Patent issued on June 18, 1996 with a


                                       3
<PAGE>

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.

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

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

Research and Development Costs. Research and development costs for the two years
ended December 31, 2002 and 2001, were $10,020 and $13,786,  respectively.  None
of the expenses were incurred on customer-sponsored research activities relating
to the development of new products.

Employees. InMedica and MicroCor had one full time and one part time employee as
of December 31, 2002.

ITEM 2. PROPERTIES

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

ITEM 3. LEGAL PROCEEDINGS

There are no pending legal proceedings.



                                       4
<PAGE>



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

On December 16, 2002 a special  shareholder  meeting was held to elect directors
(see  "Officers  and  Directors"  for the  names  of  members  of the  board  of
directors,  which was  re-elected  in its  entirety),  to amend the  articles of
incorporation to increase the authorized  shares of common stock from 20,000,000
to 40,000,000 and to ratify the  appointment  of Robison,  Hill & Co., Salt Lake
City, as the  independent  public  accountants  of the Company.  The increase in
authorized  shares was  approved by a vote of  9,034,151  shares in favor,  none
opposed  and  56,667  abstaining.  The  appointment  of  Robison  Hill & Co. was
approved  by the  affirmative  vote of  9,090,818  shares  with none  opposed or
abstaining.


                                     PART II

ITEM 5. MARKET FOR THE  REGISTRANT'S  COMMON STOCK AND RELATED  SECURITY  HOLDER
MATTERS.

     (a) Price Range of Common Stock.

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

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

     March 31, 2001                  $.13             $ .10
     June 30, 2001                    .40               .12
     September 30, 2001               .20               .14
     December 31, 2001                .16               .11

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

On March 13, 2003 there were  approximately  517 record  holders of the InMedica
Common Stock.  Such record  holders do not include  individual  participants  in
securities position listings. InMedica has not paid cash dividends on its Common
Stock since  organization.  For the foreseeable  future,  InMedica  expects that
earnings,  if any, will be retained for use in the business or be used to retire
obligations of the Company.

Four  stockholders  own an aggregate of 21,016 shares of the Company's  Series A
Preferred Stock,  which is 8% convertible  preferred.  There is no public market
for the Series A Preferred Stock.  Total aggregate  annual dividends  payable on


                                       5
<PAGE>

the outstanding preferred stock for the year 2002 was $11,349 as of December 31,
2002. See Note 5 to the Consolidated Financial Statements.

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

Liquidity and Capital Resources.  During the years 2002 and 2001,  liquidity was
generated  from  the  sale of  stock by  InMedica  and its  subsidiary  MicroCor
pursuant to the Stock Purchase  Agreement dated May 10, 2001. As of December 31,
2002 InMedica and MicroCor had each  received  payments of $500,000 from Chi Lin
and Chi Lin's stock purchase obligation has now been satisfied.

The funds  generated  from the sale of stock in 2001 were the sole source of the
Company's cash flow and are sufficient to meet the Company's  operating expenses
only  through  June 30, 2003.  While the Company has in the past  borrowed  from
affiliates,  any borrowing in the future from affiliates,  if available,  is not
expected to be sufficient to provide future liquidity needs,  retire obligations
and fund  continued  research and  development.  InMedica  continues to look for
other funding sources, however to date it has no commitments.  Funds invested to
develop the hematocrit device have been expensed as research and development.

Results  of  Operations.  InMedica  incurred  net  losses in 2002 and 2001.  The
Company had an accumulated deficit of $8,224,043 as of December 31, 2002. During
the years ended December 31, 2002 and 2001 royalty  revenue totaled $0 and $640,
respectively.  No revenues  from  operations  are  expected  in the  foreseeable
future.  The net loss for the year ended December 31, 2002 decreased to $287,458
compared to the net loss of $394,120 for 2001.  Higher expenses in 2001 were due
primarily  to  additional  compensation  expense of $82,869 from stock issued in
2001.   During  2002,  the  Company  met  its  research  and   development   and
administrative  expenditure  requirements  from  existing  cash  flow  from  the
issuance  of  stock in 2001.  During  2002,  research  and  development  expense
continued  to decrease as research and  development  work was assumed by Chi Lin
and interest expense decreased by $19,022 because debt and other obligations had
been satisfied by issuance of stock and cash payments in 2001.








                                       6
<PAGE>



ITEM 7.  FINANCIAL STATEMENTS

Independent Auditors' Report (Robison, Hill & Company)
Independent Auditors' Report (Deloitte & Touche LLP)
Consolidated Balance Sheet as of December 31, 2002
Consolidated Statements of Operations for the years ended
         December 31, 2002 and 2001
Consolidated Statements of Stockholders' Equity for the years ended
         December 31, 2002 and 2001
Consolidated Statements of Cash Flows for the years ended
         December 31, 2002 and 2001
Notes to Consolidated Financial Statements



                                       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, 2002,
and the related consolidated statements of operations, stockholders' equity, and
cash  flows for the year then  ended  (all  expressed  in U.S.  dollars).  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

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

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

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

                                                    Sincerely,



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

Salt Lake City, Utah
January 27, 2003




                                       8
<PAGE>



                          INDEPENDENT AUDITORS' REPORT



To the Board of Directors and Stockholders of
  InMedica Development Corporation

We  have  audited  the  accompanying   consolidated  statements  of  operations,
stockholders'  equity,  and cash flows of InMedica  Development  Corporation and
subsidiary  (the  "Company") for the year ended December 31, 2001 (all expressed
in U.S.  dollars).  These  financial  statements are the  responsibility  of the
Company's  management.  Our  responsibility  is to  express  an opinion on these
financial statements based on our audit.

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

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects,  the results of the Company's  operations  and cash flows for the year
ended  December 31, 2001 in  conformity  with  accounting  principles  generally
accepted in the United States of America.

The accompanying  consolidated  financial statements for the year ended December
31, 2001 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.

/s/ DELOITTE & TOUCHE LLP

Salt Lake City, Utah


January 16, 2002



                                       9
<PAGE>



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

Equipment & Furniture, at Cost,
   Less Accumulated Depreciation of $253,122                                                                    752
                                                                                                 -------------------

TOTAL ASSETS                                                                                     $           99,634
                                                                                                 ===================

LIABILITIES & STOCKHOLDER'S EQUITY
Current Liabilities
   Related Party Consulting Fees Payable                                                         $           42,000
   Accounts Payable                                                                                           1,704
   Preferred Stock Dividends Payable                                                                         11,349
                                                                                                 -------------------
        Total Current Liabilities                                                                            55,053
                                                                                                 -------------------

Minority Interest                                                                                           133,808
                                                                                                 -------------------

Stockholders' Equity
   Preferred Stock, 10,000,000 shares authorized; Series A cumulative
     convertible preferred stock, 8% cumulative, $4.50 par value,
     1,000,000 shares designated, 21,016 shares outstanding (aggregate
     liquidation preference of $105,922)                                                                     94,573
  Common Stock, $.001 par value: 40,000,000 shares authorized,
     15,982,993 share outstanding                                                                            15,983
Additional Paid-in Capital                                                                                8,024,260
Accumulated Deficit                                                                                     (8,224,043)
                                                                                                 -------------------
        Total Stockholders' Equity                                                                         (89,227)
                                                                                                 -------------------

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



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



                                       10
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                                                                      For the Years Ended
                                                                                          December 31,
                                                                             ---------------------------------------
                                                                                    2002                2001
                                                                             ------------------- -------------------

<S>                                                                          <C>                 <C>
ROYALTY REVENUES                                                             $                -  $              640
                                                                             ------------------- -------------------

OPERATING EXPENSES
   General & Administrative                                                             316,874             370,854
   Research & Development                                                                10,020              13,786
                                                                             ------------------- -------------------
        Total Operating Expense                                                         326,894             384,640

LOSS FROM OPERATIONS                                                                  (326,894)           (384,000)
                                                                             ------------------- -------------------

OTHER INCOME (EXPENSE)
   Interest Expense, Net                                                                  (428)            (19,450)
   Other Expenses, Net                                                                  (2,195)            (15,957)
                                                                             ------------------- -------------------
        Total Other Expenses, Net                                                       (2,623)            (35,407)
                                                                             ------------------- -------------------

LOSS BEFORE MINORITY INTEREST                                                         (329,517)           (419,407)

MINORITY INTEREST                                                                        42,059              25,287
                                                                             ------------------- -------------------

NET LOSS                                                                              (287,458)           (394,120)

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

NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                                     $      (295,024)    $      (401,686)
                                                                             =================== ===================

NET LOSS PER COMMON SHARE (BASIC & DILUTED)                                  $           (0.02)          $   (0.03)
                                                                             =================== ===================

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   OUTSTANDING (BASIC & DILUTED)                                                     15,982,993          13,485,399
                                                                             =================== ===================
</TABLE>


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



                                       11
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
<TABLE>
<CAPTION>
                                                                                             Stock        Additional
                                       Preferred Stock              Common Stock         Subscription       Paid-in     Accumulated
                                    Shares       Amount        Shares          Amount      Receivable       Capital       Deficit
                                 -----------   -----------   -----------    -----------    -----------    -----------   -----------

<S>                              <C>           <C>           <C>            <C>            <C>            <C>           <C>
Balance, January 1, 2001              21,016   $    94,573     8,847,409    $     8,847    $      --      $ 6,925,019   $(7,527,333)

Sale of common stock to
  Chi Lin Technology
   (see Note 1)                         --            --       5,328,204          5,329       (500,000)       494,671          --
Gain on sale of subsidiary
   common stock                         --            --            --             --             --          298,846          --
Common stock issued to
   related party consultants            --            --       1,809,000          1,809           --          305,722          --
Payments on stock subscription
   receivable                           --            --            --             --          350,000           --            --
Preferred stock dividends               --            --            --             --             --             --          (7,566)
Net loss                                --            --            --             --             --             --        (394,120)
                                 -----------   -----------   -----------    -----------    -----------    -----------   -----------

Balance, December 31, 2001            21,016        94,573    15,984,613         15,985       (150,000)     8,024,258    (7,929,019)

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

Balance, December 31, 2002            21,016   $    94,573    15,982,993    $    15,983    $      --      $ 8,024,260   $(8,224,043)
                                 ===========   ===========   ===========    ===========    ===========    ===========   ===========
</TABLE>

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



                                       12
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                                      For the Years Ended
                                                                                          December 31,
                                                                             ---------------------------------------
                                                                                    2002                2001
                                                                             ------------------- -------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                            <C>                 <C>
   Net Loss                                                                    $      (287,458)    $      (394,120)
   Adjustments to reconcile net loss to net cash used in
      operating activities:
      Depreciation and amortization                                                         133                  71
      Write down of assets                                                                2,195                   -
      Expense related to issuance of common stock
         and common stock options for services                                                -             104,119
      Minority interest in losses                                                      (42,059)            (25,287)
      Changes in assets and liabilities:
         Prepaid expenses and other                                                      18,756             (4,199)
         Related party consulting fees payable                                           24,000              26,409
         Accrued interest on related party notes payable                                      -              18,100
         Accounts payable                                                               (1,925)            (63,077)
         Accrued payroll                                                                (4,292)             (3,483)
                                                                             ------------------- -------------------
                   Net cash used in operating activities                              (290,650)           (341,467)

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

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from borrowings on note payable to related party                                  -              39,900
   Payments on note payable to related party                                                  -           (292,414)
   Proceeds from borrowing on note payable                                                    -              18,000
   Payments on note payable                                                            (14,000)            (18,810)
   Proceeds from stock subscription receivable                                          150,000             350,000
   Proceeds from note receivable from Chi Lin                                           150,000             350,000
   Preferred stock dividend                                                             (3,773)             (7,566)
                                                                             ------------------- -------------------
                   Net cash provided by financing activities                            282,227             439,110

NET INCREASE IN CASH                                                                    (9,308)              97,643
CASH AT BEGINNING OF THE YEAR                                                           106,739               9,096
                                                                             ------------------- -------------------
CASH AT END OF THE YEAR                                                      $           97,431   $         106,739
                                                                             =================== ===================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   Cash paid during the year for interest                                    $              563  $           62,495
</TABLE>
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING & FINANCING ACTIVITIES

         During the year ended December 31, 2001,  the Company issued  1,684,000
shares of stock as payment for accrued  consulting fees of $307,531.  During the
year ended  December 31, 2001,  the Company sold  subsidiary  common stock for a
note receivable of $500,000.

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



                                       13
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001

NOTE 1 - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

         InMedica  Development  Corporation  ("InMedica") and its majority-owned
subsidiary,  MicroCor,  Inc.  ("MicroCor")  (collectively  referred  to  as  the
"Company"),  historically have engaged in the research,  development and sale of
medical technology and fund raising to support such activities. During the years
1986 and 1987,  MicroCor  developed  and marketed a portable  electrocardiograph
("ECG")  monitor  and  manufactured  and sold  about 450  units.  In July  1989,
MicroCor  signed a research and  development  contract  with Johnson and Johnson
Medical,  Inc.  ("Johnson  and  Johnson")  for  further  development  of the ECG
technology.  As a result of the agreement,  Johnson and Johnson manufactured and
marketed a product line under the name of Dinamap PlusTM which  incorporated the
Company's ECG technology.  Royalties  received from Johnson and Johnson were the
Company's  sole source of revenue  through the year 2000.  In 2001,  Johnson and
Johnson  stopped  manufacturing  and marketing the Dinamap  PlusTM product line;
therefore, MicroCor no longer receives royalties from Johnson and Johnson.

         Since 1989,  the Company has engaged in research and  development  of a
device  to  measure  hematocrit  non-invasively  (the  "Non-Invasive  Hematocrit
Technology" and/or the "Technology").  Hematocrit is the percentage of red blood
cells in a given volume of blood.  At the present time,  the test for hematocrit
is performed  invasively by drawing blood from the patient and testing the blood
sample in the laboratory.

         Commercialization   of  the  Non-Invasive   Hematocrit   Technology  is
dependent upon favorable testing, Food and Drug Administration ("FDA") approval,
financing of further  research and development  and, if warranted,  financing of
manufacturing  and marketing  activities.  During 1999,  the Company  produced a
transportable  prototype device for use in demonstrating the technology.  During
2001 and 2002,  the  Company  continued  to pursue  further  development  of the
technology.

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

Basis of Presentation

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




                                       14
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001

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

Basis of Presentation (Continued)

of $287,458 and $394,120 in 2002 and 2001, respectively, and negative cash flows
from operations of $290,650 and $341,467 in 2002 and 2001,  respectively.  As of
December 31, 2002 and 2001, the Company had an accumulated deficit of $8,224,043
and  $7,929,019,  respectively.  At December 31, 2002 and 2001,  the Company had
stockholders'  equity  (deficit) of ($89,227) and $55,797,  respectively.  These
conditions raise  substantial doubt as to the Company's ability to continue as a
going concern.  The Company's  continued existence is dependent upon its ability
to execute its operating plan and to obtain additional debt or equity financing.
There  can be no  assurance  the  necessary  debt or  equity  financing  will be
available, or will be available on terms acceptable to the Company. Management's
operating plan includes pursuing  additional  strategic  alliances and licensing
agreements as well as preparation  for the clinical trials that will be required
for FDA approval for the medical products that are currently under  development,
pursuant  to the Chi  Lin  development  agreement,  utilizing  the  Non-Invasive
Hematocrit Technology.

Patents

         The  Company  has  three  patents   covering  various  aspects  of  its
Technology which expire from 2013 to 2017.

Principles of Consolidation

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

Revenue Recognition

         Royalty  revenues are recognized as sales  information is received from
Johnson and Johnson and cash  receipts  are  assured.  In early 2001,  Johnson &
Johnson stopped  manufacturing and marketing the Dinamap PlusTM product line and
the Company no longer receives royalties from Johnson and Johnson.

Income Taxes

         The Company  accounts  for income  taxes using the asset and  liability
method.  Deferred income taxes are determined  based on the estimated future tax
effects of differences  between the financial  reporting and tax reporting bases
of assets and liabilities  given the provisions of currently enacted tax laws. A
valuation allowance is provided when it is more likely than not that all or some
portion of the deferred income tax assets will not be realized.



                                       15
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001

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

Equipment and Furniture

         Equipment and furniture are recorded at cost and depreciated  using the
straight-line  method over the estimated  useful lives of the assets which range
from three to five years.  Equipment and furniture consisted of the following at
December 31, 2002:

         Equipment                                  $           242,686
         Furniture                                               11,188
                                                    -------------------
                                                                253,874
                                                    -------------------
         Less accumulated depreciation                         (253,122)
                                                    -------------------

         Total                                      $               752
                                                    ===================

Research and Development

         Research and development costs are expensed as incurred.

Net Loss Per Common Share

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

Use of Estimates

         The  preparation of financial  statements in conformity with accounting
principles generally ccepted 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.




                                       16
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001


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

Stock Options

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

Derivative and Hedging Activities

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

Cash Equivalents

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

NOTE 2 - INCOME TAXES

         As of December 31, 2002,  deferred  income tax assets  consisted of the
following:

Net operating loss carryforwards                             $        1,143,970
Future deductions temporary differences related
  to compensation, reserves, and accruals                                52,851
Less valuation allowance                                             (1,196,821)
                                                             ------------------
Deferred income tax assets                                   $                -
                                                             ==================

         The  valuation  allowance  decreased  $127,848  in 2002  and  increased
$69,862  in  2001,   respectively.   At  December  31,  2002,  the  Company  has
consolidated net operating loss carryforwards for federal income tax purposes of
$3,373,034.  These net  operating  loss  carryforwards  expire at various  dates
beginning in 2005 through 2022. Due to the uncertainty  with respect to ultimate
realization,  the Company has established a valuation allowance for all deferred
income tax assets.




                                       17
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001


NOTE 3 - COMMON STOCK TRANSACTIONS

         On May 10, 2001 the Company entered into a Stock Purchase Agreement and
Development,  Licensing and Manufacturing  Agreement with Chi Lin Technology Co.
Ltd.  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. Its subsidiary,  MicroCor, Inc. ("MicroCor"), also issued 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.  In  consideration  of the stock
issuances,  Chi Lin gave  InMedica  its  promissory  notes to pay  InMedica  and
MicroCor a total of $500,000 each according to an installment  payment schedule.
As of October 2, 2002, InMedica and MicroCor had each received total installment
payments of $500,000  from Chi Lin. The amount of the  transaction  for InMedica
and MicroCor combined was $1,000,000.  In connection with this transaction,  the
Company  issued  125,000  restricted  shares of common stock to its president as
payment of a finders fee and recorded expense of $21,250.

         Chi Lin was also granted anti-dilution rights permitting it to purchase
additional  shares to maintain its one third  percentage  ownership in InMedica.
The  agreement  also provides that Chi Lin has the right to nominate two of five
directors on the board of directors which they did in 2001.

         The Company also simultaneously  entered into a Development,  Licensing
and Manufacturing  Agreement with Chi Lin pursuant to which InMedica granted Chi
Lin a  world-wide  license to develop and  manufacture  products  utilizing  the
Non-Invasive  Hematocrit  Technology.  The  agreement  also  grants  Chi Lin the
exclusive license to distribute the products in Australia,  New Zealand, and the
countries of Asia  (excluding  Russia and the Middle  East).  InMedica  retained
distribution rights in North and South America,  Europe,  Africa, and the Middle
East.

         During 2001, the Company issued 1,684,000 shares to related parties for
accrued  consulting fees totaling  $203,412.  Additional  expense of $82,869 was
recognized as the  difference  between the fair value of the stock on the day of
issuance and the accrued consulting fees.

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









                                       18
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001

NOTE 4 - STOCK OPTIONS

Stock Incentive Plan

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

         Under the stock  incentive  plan at December  31,  2001,  31,500  fully
vested  shares  were under  option with  exercise  prices of $0.60 per share and
remaining  contractual  lives  of less  than one  year.  There  were no  options
granted,  exercised,  or forfeited  during the years ended December 31, 2001 and
2000.  During 2001, the Stock  Incentive  Plan expired.  As of December 31, 2002
there are no outstanding options under the plan.

Formula Stock Option Plan

         The Company  had in place a formula  stock  option  plan (the  "Formula
Plan") for eligible directors of the Company,  covering 100,000 shares of common
stock.  A committee of the Board of Directors  had the  authority to  determine,
among other  matters,  the term of the options and the period  during  which the
options were  exercisable.  Under the terms of the Formula Plan,  each member of
the  committee  which  administered  the Stock  Incentive  Plan was  eligible to
receive  non-qualified  stock  options  pursuant  to a formula  set forth in the
Formula Plan. The exercise price for options granted were 30 percent of the fair
market  value of the common  stock on the date of the grant.  The  Formula  Plan
contained  anti-dilution  provisions  which  provided for  adjustments to option
prices  or  quantities  in  the  event  of  certain  changes  in the  number  of
outstanding shares of common stock or the capitalization of the Company.

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





                                       19
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001

NOTE 4 - STOCK OPTIONS (Continued)

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 2002 and 2001 was as
follows:

                                                                        Weighted
                                                                        Average
                                                           Option       Exercise
                                                           Shares        Price
                                                         ---------     ---------

Outstanding at January 1, 2001                           $ 605,000     $    0.67
  Granted                                                     --            --
  Forfeited or expired                                    (175,000)         1.16
                                                         ---------     ---------

Outstanding at December 31, 2001                           430,000          0.48
  Granted                                                     --            --
  Forfeited or expired                                        --            --
                                                         ---------     ---------

Outstanding at December 31, 2002                         $ 430,000     $    0.48
                                                         =========     =========

The  following  table  summarizes  information  about  stock  options  issued to
employees outstanding at December 31, 2002:
<TABLE>
<CAPTION>
                             Options Outstanding                                                Options Exercisable
------------------------------------------------------------------------------         ---------------------------------------
                                             Weighted
                                             Average            Weighted                                        Weighted
     Range of                              Contractual           Average                                        Average
     Exercise             Number               Life             Exercise                     Number             Exercise
      Prices           Outstanding          (in years)            Price                   Exercisable            Price
------------------- ------------------- ------------------- ------------------         ------------------- -------------------

<S>                 <C>                 <C>                 <C>                        <C>                 <C>
      $0.30               75,000               2.8                $0.30                      75,000              $0.30
=================== =================== =================== ==================         =================== ===================
</TABLE>



                                       20
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001


NOTE 4 - STOCK OPTIONS (Continued)

The  following  table  summarizes  information  about  stock  options  issued to
non-employees outstanding at December 31, 2002:
<TABLE>
<CAPTION>
                             Options Outstanding                                                Options Exercisable
------------------------------------------------------------------------------         ---------------------------------------
                                             Weighted
                                             Average            Weighted                                        Weighted
     Range of                              Contractual           Average                                        Average
     Exercise             Number               Life             Exercise                     Number             Exercise
      Prices           Outstanding          (in years)            Price                   Exercisable            Price
------------------- ------------------- ------------------- ------------------         ------------------- -------------------

<S>                 <C>                 <C>                 <C>                        <C>                 <C>
  $0.30 - $0.39          263,500               2.9                $0.36                     263,500              $0.36
      $0.73               54,000               0.4                $0.73                      54,000              $0.73
      $1.22               37,500               3.3                $1.22                      37,500              $1.22
------------------- ------------------- ------------------- ------------------         ------------------- -------------------

  $0.30 - $1.22          355,000               3.5                $0.51                     355,000              $0.51
=================== =================== =================== ==================         =================== ===================
</TABLE>

NOTE 5 - PREFERRED STOCK

         The  Company is  authorized  to issue  10,000,000  shares of  preferred
stock.  The Company's  board of directors  designated  1,000,000  shares of this
preferred  stock as Series A Cumulative  Convertible  Preferred Stock ("Series A
Preferred")  with a par  value of  $4.50  per  share.  Holders  of the  Series A
Preferred  receive  annual  cumulative  dividends  of  eight  percent,   payable
quarterly, which dividends are required to be fully paid or set aside before any
other  dividend  on any class or series of stock of the  Company is paid.  As of
December 31, 2002,  preferred stock dividends  payable in the amount of $11,349,
or $0.54  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 6 - NOTE PAYABLE

         During  2001,  the  Company  entered  into an  unsecured  note  payable
agreement  in the amount of $18,000 with an  insurance  company.  The note bears
interest  at 9.55% and is  payable in monthly  installments  of $2,080  with the
final  payment  due in  August  2002.  As of  December  31,  2002,  there was no
outstanding principal under the note.



                                       21
<PAGE>



                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDING DECEMBER 31, 2002 AND 2001

NOTE 7 - RELATED PARTY TRANSACTIONS

         During 2002 and 2001, the Company  incurred  interest expense of $0 and
$18,100,  respectively,  on related party notes. As of December 31, 2002,  there
were no outstanding balances on these notes.

         The Company has a  consulting  arrangement  with an entity owned by the
Company's  chairman  whereby the Company agreed to pay $2,000 per month for 2001
and 2002.  Either party can terminate the  arrangement  at any time upon 30 days
prior  notice.  During 2000 and through May 31,  2001,  unpaid  amounts  accrued
interest  at 10%.  Beginning  April 1,  2001,  the  agreement  was  modified  to
eliminate any future accrual of interest.  As of December 31, 2002,  $42,000 was
owed under the arrangement.

         In 1997, the Company  entered into a line of credit loan agreement with
the chairman,  and borrowed an initial amount  thereunder of $355,000.  Interest
accrued at 10% on  outstanding  principle.  During 2001,  the line of credit was
repaid and is no longer available to the Company.



                                       22
<PAGE>




ITEM 8. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES.

           On  January  3,  2002,  the  Company  engaged  Deloitte  & Touche  as
independent  accountants  to audit the  Company's  December  31, 2001  financial
statements. The former accountants,  Arthur Andersen LLP, were notified of their
dismissal on January 4, 2002. The change was approved by the Company's  board of
directors.

         On October  17,  2002,  the  Company  engaged  Robison,  Hill & Co., as
independent  auditors  to  audit  the  Company's  December  31,  2002  financial
statements.  The former  accountants,  Deloitte & Touche, were notified of their
dismissal on October 17, 2002. The change was approved by the Company's board of
directors.

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


                                    PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
WITH SECTION 16(A) OF THE EXCHANGE ACT.

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

     Name                           Age                           Director Since
     Larry E. Clark                 81                                1995
     Ralph Henson                   58                                1999
     Richard Bruggeman              48                                1995
     Sheng Jung Chiang              57                                2001
     Mao-Song Lee                   54                                2002

LARRY E. CLARK - Chairman of the Board. Mr. Clark was president of Clark-Knoll &
Associates,  Inc., a Denver, Colorado management consulting firm specializing in
mergers  and  acquisitions  from  1963  to  1969.  He  served  as  president  of
Petro-Silver,  Inc., a small public company based in Salt Lake City, Utah, which
engaged  in the oil and gas  business  from 1970 to 1975.  From 1975 to 1981 Mr.


                                       23
<PAGE>

Clark was president of Larry Clark & Associates, a private company which engaged
in a corporate  mergers and  acquisitions  business.  In 1981,  Mr. Clark formed
Hingeline-Overthrust  Oil & Gas, Inc., a Utah public company,  which merged with
Whiting  Petroleum  Corporation of Denver,  Colorado in December 1983. Mr. Clark
served as a director  of  Whiting  Petroleum  from 1983 until 1992 when  Whiting
Petroleum  merged  with IES  Industries  and Mr.  Clark  returned  to full  time
employment as president of Larry Clark & Associates.  Mr. Clark  graduated  from
the U.S.  Merchant  Marine Academy with a BS degree in Naval Science in 1943 and
received a degree in Business  Administration  from the University of Wyoming in
1948.

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

RICHARD  BRUGGEMAN  -  Director  and  Secretary/Treasurer  and  Chief  Financial
Officer. Prior to his employment with InMedica, he was employed as Controller of
Kitchen Specialties,  Inc., from 1993 - 2001, a Salt Lake City firm distributing
kitchen appliances in the United States and Canada.  From 1986 until 1993 he was
employed by the  Company's  subsidiary,  MicroCor,  Inc. as  financial  manager.
During the period  1983-1985,  he was a sole practitioner in accounting and from
1981-1983  he was  employed  by the Salt Lake  City  public  accounting  firm of
Robison Hill & Co. He graduated  from the University of Utah in 1981 with a B.S.
degree in accounting.

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

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

Each director  serves until the next annual meeting of  shareholders  or until a
successor is elected and qualified.  Officers serve at the pleasure of the board
of directors.  Section 16(a) of the Securities Exchange Act of 1934 requires the


                                       24
<PAGE>

Company's  directors and executive  officers,  and persons who own more than ten
percent of a registered  class of the Company's  equity  securities to file with
the Securities and Exchange  Commission initial reports of ownership and reports
of changes in ownership of equity securities of the Company. Officers, directors
and  shareholders  holding  greater than ten percent are required to furnish the
Company  with copies of all  Section  16(a)  forms they file.  To the  Company's
knowledge, based solely on review of the copies of any such reports furnished to
the Company,  during the fiscal year ended  December 31, 2002 all Section  16(a)
filing requirements  applicable to officers,  directors and shareholders holding
greater than ten percent were complied with.

ITEM 10. EXECUTIVE COMPENSATION.

Executive Compensation.  The table below discloses the compensation of the chief
executive  officer of the Company  during the three fiscal years ended  December
31, 2002:

                     Annual Compensation
                                        Restricted Stock Long Term Comp.
                                              Awards    Common Stock
Name                   Year Salary  Bonus             Underlying Options  Other
Ralph Henson (CEO)     2002 $ 96,000   -         -            -             -
Ralph Henson (CEO)     2001 $ 86,333   -         -            -       $15,000(2)
Ralph Henson (CEO)     2000 $ 69,999   -         -            -             -

Director  Compensation.  Directors  may be  compensated  at the rate of $100 for
attendance at each board meeting,  but did not receive compensation for meetings
in 2002 and 2001.

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


--------------
(2) See "Certain Relationships and Related Transactions".



                                       25
<PAGE>



     OPTIONS GRANTED IN THE LAST FISCAL YEAR3

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


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

                                                            Value of Unexercised
                                         Number of                In-The-Money
                                     Unexercised Options      Options at Fiscal
           Shares                    at Fiscal Year End             Year End
          Acquired      Value           Exercisable/               Exercisable/
Name     on Exercise    Realized        Unexercisable             Unexercisable
--------------------------------------------------------------------------------
None

         The  Company  presently  has no plan for the  payment of any annuity or
pension  retirement  benefits to any of its officers or directors,  and no other
remuneration payments,  contingent or otherwise,  are proposed to be paid in the
future to any officer or director,  directly or  indirectly.  The Company's 1991
Stock  Incentive Plan and 1991 Formula Stock Option Plan expired during the year
2001.  At  December  31,  2001  there  remained   31,500  fully  vested  options
exercisable  under the Stock  Incentive  Plan at $.60 per  share  which  options
expired  during 2002.  At December  31, 2002 there were no fully vested  options
exercisable under the Stock Incentive Plan.


-------------------
(3) To persons in the executive compensation table.



                                       26
<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 18, 2003:

                                  Nature of          Number of
Name and Position                 Ownership         Shares Owned         Percent
--------------------------------------------------------------------------------
Chi Lin Technologies              Direct              5,328,204            33.3%
717 No. 71, Te Lun RD
Jen Te Hsian
Tainan County, Taiwan
Principal Shareholder

Larry E. Clark                    Direct              1,428,000
Chairman                          Indirect            1,219,025
                                                      ---------
                                  Total               2,647,025            16.6%

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

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

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

Mao-Song Lee                      Indirect                    *(7)
Director

All Executive Officers            Direct and
and Directors as a                Indirect            8,839,591            55.3%
group (5 persons)                 Options                75,000             0.5%
                                                      ---------            ----
                                  Total               8,914,591            55.8%

Shares shown in the forgoing table as directly owned are owned  beneficially and
of  record,  and such  record  shareholder  has  sole  voting,  investment,  and
dispositive  power.  Calculations  of the  percentage  of  ownership  of  shares
outstanding in the foregoing  table are based on 15,984,613  shares  outstanding
and assume the exercise of options,  to which the percentage  relates.  Rounding
causes differences in totals from percentage ownership shown.

------------------
(4) Includes 400 shares held in individual  retirement accounts and 4,620 shares
held in a family trust of which Mr. Bruggeman is Trustee.
(5) Shares held by Mr. Bruggeman's wife.
(6) Mr. Chiang is vice  president of Chi Lin  Technologies  Co. Ltd. which holds
5,328,204 shares.
(7) Dr. Lee is director of biomedical  research of Chi Lin Technologies Co. Ltd.
which holds 5,328,204 shares.


                                       27
<PAGE>

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

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

On April 25, 2001,  the Company paid Mr. Clark for accrued  consulting  fees and
accrued  interest by issuing to his family  trust  1,219,025  shares of InMedica
restricted common stock in satisfaction of $123,992  consulting fees payable and
$22,291  accrued  interest on the fees. The Company also paid Mr.  Bruggeman for
accrued consulting fees and accrued interest by issuing to him 464,975 shares of
InMedica  restricted  common stock in  satisfaction  of $52,000  consulting fees
payable and $3,797 interest. Shares were issued at $.12 per share. The estimated
fair value of the shares issued to Mr. Clark and Mr. Bruggeman on April 25, 2001
was $.17 per share and accordingly, the Company recorded additional compensation
expense of $82,869.

The Company executed two promissory  notes dated April 26, 2001,  payable to its
Chairman,  Larry E. Clark.  The first note documented a series of existing loans
from Mr.  Clark  to the  Company  of  $262,250  principal  and  $26,899  accrued
interest.  The note was due in three payments as follows:  $150,000 on or before
May 31, 2001,  $75,000 on or before July 15, 2001,  and the balance on or before
October 15, 2001. The second note  documented an additional  loan from Mr. Clark
to the Company of $10,000  principal and $1,332 accrued  interest.  The note was
due in two  payments  as  follows:  $5,000 on or before  May 31,  2001,  and the
balance on or before July 15, 2001.  Accrued  interest was included in the notes
through  May 31,  2001.  Thereafter  interest  accrued at 10% per  annum.  As of
October  2001,  all  obligations  to Mr.  Clark had been paid and the notes were
retired.



                                       28
<PAGE>



                                     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.



                                       29
<PAGE>



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

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

                           (10)     First    Amendment    to   the    Hematocrit
                                    Development  and  Option  Agreement  between
                                    InMedica Development Corporation and Medical
                                    Physics,  dated March 1, 1998,  incorporated
                                    by reference  to Exhibit 1 to the  Company's
                                    Form 10KSB for the year ended  December  31,
                                    1997.

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

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

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

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

                           (99)     Sarbanes-Oxley Section 906 Certification



(b) The Company  filed a Form 8K on October  22, 2002  reporting a change in the
Company's certified public accountant.



                                       30
<PAGE>

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



                                       31
<PAGE>





                                   SIGNATURES

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

                                                INMEDICA DEVELOPMENT CORPORATION

  Date:  March 25, 2003                         By /s/ Ralph Henson
                                                  RALPH HENSON, President
                                                  & Chief Executive Officer

                                                By /s/ Richard Bruggeman
                                                  RICHARD BRUGGEMAN
                                                  Chief Financial Officer



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


/s/ Larry E. Clark                                        DATE:  March 25, 2003
LARRY E. CLARK, Director


/s/ Richard Bruggeman                                     DATE:  March 25, 2003
RICHARD BRUGGEMAN, Director


/s/ Ralph Henson                                          DATE:  March 25, 2003
RALPH HENSON, Director


/s/ Sheng Jung Chiang                                     DATE:  March 25, 2003
SHENG JUNG (ROBERT S.) CHIANG,
  Director


/s/ Mao-Song Lee                                          DATE:  March 25, 2003
MAO-SONG LEE, Director



                                       32
<PAGE>



                      CERTIFICATION PURSUANT TO SECTION 302
                        OF THE SARBANES-OXLEY ACT OF 2002



I, Ralph Henson, certify that:

1.       I  have  reviewed  this  annual  report  on  Form  10-KSB  of  InMedica
         Development Corporation.

2.       Based on my  knowledge,  this annual report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statement made, in light of the  circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this annual report.

3.       Based on my knowledge,  the financial  statements,  and other financial
         information  included  in this  annual  report,  fairly  present in all
         material  respects the financial  condition,  results of operations and
         cash flows of the  registrant as of, and for, the periods  presented in
         this annual report.

4.       The registrant's  other  certifying  officers and I are responsible for
         establishing  and  maintaining  disclosure  controls and precedures (as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
         have:

         a)       designed  such  disclosure  controls and  procedures to ensure
                  that  material   information   relating  to  the   registrant,
                  including its consolidated  subsidiaries,  is made known to us
                  by others  within  those  entities,  particularly  during  the
                  period in which this annual report is being prepared;

         b)       evaluated the  effectiveness  of the  registrant's  disclosure
                  controls and  procedures  as of a date within 90 days prior to
                  the filing date of this annual report (the  Evaluation  Date);
                  and

         c)       presented  in this  annual  report our  conclusions  about the
                  effectiveness of the disclosure  controls and procedures based
                  on our evaluation as of the Evaluation Date;

5.       The registrant's other certifying officers and I have disclosed,  based
         on our most recent  evaluation,  to the  registrant's  auditors and the
         audit  committee of the  registrant's  board of  directors  (or persons
         performing the equivalent functions):

         a)       all  significant  deficiencies  in the design or  operation of
                  internal   controls   which   could   adversely   affect   the
                  registrant's ability to record, process,  summarize and report
                  financial  data  and  have  identified  for  the  registrant's
                  auditors any material weaknesses in internal controls, and



                                       33
<PAGE>

         b)       any fraud,  whether or not material,  that involves management
                  or  other  employees  who  have  a  significant  role  in  the
                  registrant's internal controls.

6.       The registrant's other certifying officers and I have indicated in this
         annual report whether or not there were significant changes in internal
         controls or in other factors that could  significantly  affect internal
         controls  subsequent  to  the  date  of  our  most  recent  evaluation,
         including   any   corrective   actions   with  regard  to   significant
         deficiencies and material weaknesses.


Date:    March  25, 2003


/s/ Ralph Henson
Ralph Henson,
 President







                                       34
<PAGE>

                       CERTIFICATE PURSUANT TO SECTION 302
                        OF THE SABANES-OXLEY ACT OF 2002


I, Richard Bruggeman, certify that:

1.       I  have  reviewed  this  annual  report  on  Form  10-KSB  of  InMedica
         Development Corporation.

2.       Based on my  knowledge,  this annual report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this annual report.

3.       Based on my knowledge,  the financial  statements,  and other financial
         information  included  in this  annual  report,  fairly  present in all
         material  respects the financial  condition,  results of operations and
         cash flows of the  registrant as of, and for, the periods  presented in
         this annual report.

4.       The registrant's  other  certifying  officers and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
         have:

         a)       designed  such  disclosure  controls and  procedures to ensure
                  that  material   information   relating  to  the   registrant,
                  including its consolidated  subsidiaries,  is made known to us
                  by others  within  those  entities,  particularly  during  the
                  period in which this annual report is being prepared;

         b)       evaluated the  effectiveness  of the  registrant's  disclosure
                  controls and  procedures  as of a date within 90 days prior to
                  the filing date of this annual report (the  Evaluation  Date);
                  and

         c)       presented  in this  annual  report our  conclusions  about the
                  effectiveness of the disclosure  controls and procedures based
                  on our evaluation as of the Evaluation Date;

5.       The registrant's other certifying officers and I have disclosed,  based
         on our most recent  evaluation,  to the  registrant's  auditors and the
         audit  committee  of  registrant's   board  of  directors  (or  persons
         performing the equivalent functions):

         a)       all  significant  deficiencies  in the design or  operation of
                  internal   controls   which   could   adversely   affect   the
                  registrant's ability to record, process,  summarize and report
                  financial  data  and  have  identified  for  the  registrant's
                  auditors and material weaknesses in internal controls: and



                                       35
<PAGE>

         b)       any fraud,  whether or not material,  that involves management
                  or  other  employees  who  have  a  significant  role  in  the
                  registrant's internal controls.

6.       The registrant's other certifying officers and I have indicated in this
         quarterly  report  whether  or not there  were  significant  changes in
         internal controls or in other factors that could  significantly  affect
         internal controls subsequent to the date of our most recent evaluation,
         including   any   corrective   actions   with  regard  to   significant
         deficiencies and material weaknesses.

DATE:  March  25, 2003



/s/ Richard Bruggeman
Richard Bruggeman
 Chief Financial Officer



                                       36
<PAGE>



                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                         FORM 10-KSB - DECEMBER 31, 2002

EXHIBIT NUMBER                              DESCRIPTION

                  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.

                  99       Sarbanes-Oxley Section 906 Certification



                                       37
<PAGE>



                              ARTICLES OF AMENDMENT
                                     to the
                            ARTICLES OF INCORPORATION
                                       of
                        INMEDICA DEVELOPMENT CORPORATION

         Pursuant to the  provisions of the Utah Business  Corporation  Act, the
undersigned  corporation  adopts the  following  Articles  of  Amendment  to its
Articles of Incorporation:

         FIRST: The name of the corporation is InMedica Development Corporation.

         SECOND:  The first  sentence  of  Article  IV,  paragraph  (a),  of the
articles  of  incorporation  of the  Company  was  amended  and  restated in its
entirety upon approval by the  shareholders  of the  corporation on December 16,
2002, so as to read as follows:

           "The total number of common shares which this corporation  shall have
         authority to issue is 40,000,000, par value of $0.001 per share."

No other changes to the articles of incorporation are effected by this amendment
and the only change from the existing  Article IV, paragraph (a) first sentence,
is the substitution of "40,000,000" for "20,000,000" as it appears above.

         THIRD: The number of shares of the Corporation  outstanding at the time
of such  adoption  was  15,984,613;  and the number of shares  entitled  to vote
thereon was 15,984,613.

         FOURTH:  The designation and number of outstanding shares of each class
entitled to vote thereon as a class were as follows,  each share being  entitled
to one vote:

        Class                  Number of Shares        Shares Represented at the
                                                       Meeting

Common Stock, $1.00 par value       15,984,613                9,090,818

         FIFTH: The number of shares voted for such amendment was 9,034,151; and
the number of shares voted against such amendment was none.

         Dated this  18th day of December, 2002.

                                          INMEDICA DEVELOPMENT CORPORATION


                                          By _/s/Ralph Henson__________________
                                             Ralph Henson,  President




                                       38
<PAGE>



                                          /s/RichardBruggeman__________________
                                           Richard Bruggeman, Secretary

STATE OF UTAH       )
                                : ss
COUNTY OF SALT LAKE )

         I, Scott R. Jenkins, Notary Public, do hereby
certify that on this 18th, day of December, 2002 personally
appeared before me Ralph Henson and Richard Bruggeman
who being by me first duly sworn, declared that they are the
President and Secretary of InMedica Development Corporation,
that they signed the  foregoing  document as  President  and
Secretary  of the Corporation, respectively, and that the statements
therein contained are true.
                          /s/ Scott R. Jenkins    _____________________________
                              NOTARY PUBLIC













                                       39
<PAGE>


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


         Each of the undersigned  hereby certifies in his capacity as an officer
of InMedica Development  Corporation (the Company) that the Annual Report of the
Company on Form 10KSB for the year ended  December 31, 2002 fully  complies with
the  requirements  of Section 13(a) of the  Securities  Exchange Act of 1934 and
that the information  contained in such report fairly presents,  in all material
respects,  the financial condition of the Company at the end of such periods and
the results of operations of the Company for such periods.


/s/ Ralph Henson
Ralph Henson,
 Chief Executive Officer



/s/ Richard Bruggeman
Richard Bruggeman,
 Chief Financial Officer





                                       40