<Page>

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

                                   FORM 10-KSB
                      Annual Report Pursuant to Section 13
                 or 15(d) of the Securities Exchange Act of 1934
                      For the Year Ended December 31, 2001

                           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 requirements for the past 90 days. /X/ yes / / no
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation SB contained in this form, and no disclosures will be contained, to
the best of registrant's knowledge, in any definitive proxy or information
statement incorporated by reference in Part III of this Form 10-KSB or any
amendments to this Form 10-KSB / /

Issuer's revenues for its most recent fiscal year: $640. The aggregate market
value of voting stock held by non-affiliates of the registrant as of February 8,
2002 was approximately $893,128(1). The number of shares outstanding of the
issuer's common stock, $.001 par value, as of February 8, 2002 was 15,984,613.

DOCUMENTS INCORPORATED BY REFERENCE: None

----------
(1) Based on 7,145,022 non-affiliate shares at $.125 per share, which was the
average of the 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"), a wholly owned subsidiary. MicroCor was acquired effective
December 31, 1985 and has engaged in the development or sale of certain medical
technology products. However, royalty income received by MicroCor from the
development and sale of technology has now ceased. (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 according
to the following schedule: $150,000 to each company on or before May 31, 2001,
$75,000 to each company on or before July 1, 2001, $75,000 to each company on or
before October 1, 2001, $50,000 to each company on or before January 1, 2002,
$50,000 to each company on or before April 1, 2002, $50,000 to each company on
or before July 1, 2002 and $50,000 to each company on or before October 1, 2002.
As of December 31, 2001, InMedica and MicroCor had each received payments of
$350,000 from Chi Lin. Remaining aggregate payments of $150,000 each are due to
InMedica and MicroCor during the year 2002.

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

                                        2
<Page>

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, 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 is 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.

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 11 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

                                        3
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technology is subject to prior approval and supervision of an Internal Review
Board of a medical facility overseeing the testing. Marketing of any new product
line that might be developed based on the Company's non-invasive hematocrit
device would be subject to prior approval by the FDA.

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

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

COMPETITION.  InMedica is not presently a significant 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, 2001 and 2000, were $ 13,786 and $55,059, 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, 2001.

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

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

                                     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.

<Table>
<Caption>
                                     Bid Price
     Quarter Ended             High               Low
                              ------             ------
     <S>                      <C>                <C>
     March 31, 2000           $  .44             $  .30
     June 30, 2000               .44                .28
     September 30, 2000          .38                .25
     December 31, 2000           .38                .10

     March 31, 2001              .13                .10
     June 30, 2001               .40                .12
     September 30, 2001          .20                .14
     December 31, 2001           .16                .11
</Table>

On February 8, 2002, there were approximately 515 record holders of the InMedica
Common Stock. Such record holders do not include individual participants in
securities position listings. InMedica has not paid cash dividends on its Common
Stock since organization. For the foreseeable future, InMedica expects that
earnings, if any, will be retained for use in the business or be used to retire
obligations of the Company.

Four stockholders own an aggregate of 21,016 shares of the Company's Series A
Preferred Stock, which is 8% convertible preferred. There is no public market
for the Series A Preferred Stock. Total aggregate annual dividends payable on
the outstanding preferred stock for the year 2001 was $7,566 as of December 31,
2001. See Note 5 to the Consolidated Financial Statements.

                                        5
<Page>

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

  LIQUIDITY AND CAPITAL RESOURCES. During the year ended December 31, 2000,
  liquidity was generated primarily from borrowings from affiliates and from the
  sale of 100,000 shares of restricted common stock for $30,000. During the year
  2001, liquidity was generated from the sale of stock by InMedica and its
  subsidiary MicroCor. Pursuant to a Stock Purchase Agreement (See "Business"),
  the Company issued 5,328,204 shares of its restricted common stock to Chi Lin
  Technologies, Inc. The Company's subsidiary, MicroCor, Inc. ("MicroCor"),
  issued an additional 29,420 shares of its restricted common stock to Chi Lin.
  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 the
  following schedule: $150,000 to each company on or before May 31, 2001,
  $75,000 to each company on or before July 1, 2001, $75,000 to each company on
  or before October 1, 2001, $50,000 to each company on or before January 1,
  2002, $50,000 to each company on or before April 1, 2002, $50,000 to each
  company on or before July 1, 2002 and $50,000 to each company on or before
  October 1, 2002. As of December 31, 2001, InMedica and MicroCor had each
  received payments of $350,000 from Chi Lin. The amount of the transaction for
  InMedica and MicroCor combined was $1,000,000. The remaining amount due to
  InMedica of $150,000 is reflected as a stock subscription receivable in the
  consolidated financial statements. The remaining amount due MicroCor is
  reflected as a note receivable in the consolidated financial statements.

  The Company also issued common stock to satisfy obligations to insiders during
  2001. (See "Certain Relationships and Related Transactions") The additional
  $300,000 of stock subscriptions receivable from Chi Lin are expected to
  provide minimum cash requirements for Company operations during the year 2002.
  Royalty income from J & J Medical, Inc. has now ceased. Borrowings from
  affiliates, if available, are not expected to be sufficient to provide future
  liquidity needs, retire debt and fund continued research and development.
  InMedica continues to look for other funding sources, however to date it has
  no commitments. Funds invested to develop the hematocrit device have been
  expensed as research and development.

  RESULTS OF OPERATIONS. InMedica incurred net losses in 2001 and 2000. The
  Company had an accumulated deficit of $7,929,019 as of December 31, 2001.
  Operating revenues have been derived only from royalties during the two-year
  period ended December 31, 2001. During the years ended December 31, 2001 and
  2000 royalty revenue totaled $640 and $52,960, respectively. No further
  royalty revenues are expected from the J & J Medical, Inc. contract. The net
  loss for the year ended December 31, 2001 increased to $394,130 compared to
  the net loss of $288,251 for 2000, primarily due to a $52,320 decrease in
  royalty revenues during 2001 and an increase in total operating expenses of
  $86,918 during 2001. During 2001, the Company met its research and development
  and administrative expenditure requirements from existing cash and the
  issuance of stock. During 2001, research and development expense decreased
  $41,273 as research and development work was assumed by Chi Lin and

                                        6
<Page>

interest expense decreased by $23,050 as debt and other obligations were
satisfied by issuance of stock and cash payments.

ITEM 7. FINANCIAL STATEMENTS

<Table>
<Caption>
                                                                    Beginning at Page
<S>                                                                 <C>
Independent Auditors' Report (Deloitte & Touche LLP)                         8

Report of Independent Public Accountants (Arthur Andersen LLP)               9

Consolidated Balance Sheet as of December 31, 2001                          10

Consolidated Statements of Operations for the
years ended December 31, 2001 and 2000                                      11

Consolidated Statements of Stockholders' Equity for the
years ended December 31, 2001 and 2000                                      12

Consolidated Statements of Cash Flows for the
years ended December 31, 2001 and 2000                                      13

Notes to Consolidated Financial Statements                                  14
</Table>

                                        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, 2001,
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, 2001, 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, 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.

DELOITTE & TOUCHE LLP

Salt Lake City, Utah

January 16, 2002

                                        8
<Page>

Report of Independent Public Accountants

To InMedica Development Corporation:

We have audited the accompanying consolidated statements of operations,
stockholders' deficit and cash flows of InMedica Development Corporation (a Utah
corporation) and subsidiary for the year ended December 31, 2000. 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. 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, the financial statements referred to above present fairly, in
all material respects, the results of operations of InMedica Development
Corporation and subsidiary and their cash flows for the year ended December 31,
2000 in conformity with accounting principles generally accepted in the United
States.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 1 to the
consolidated financial statements, the Company's recurring net loss, negative
cash flows from operations and stockholders' deficit raise substantial doubt
about the Company's ability to continue as a going concern. Management's plans
in regard to these matters also are discussed in Note 1. The consolidated
financial statements do not include any adjustments relating to the
recoverability and classification of asset carrying amounts or the amount and
classification of liabilities that might result should the Company be unable to
continue as a going concern.

/s/ Arthur Andersen, LLP
Arthur Andersen, LLP

Salt Lake City, Utah
March 12, 2001

                                        9
<Page>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

<Table>

CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2001
-----------------------------------------------------------------------------------------------------
<S>                                                                                     <C>
ASSETS

CURRENT ASSETS:
   Cash                                                                                 $   106,739
   Securities available for sale                                                              2,196
   Prepaid expenses and other                                                                20,206
   Note receivable from Chi Lin                                                             150,000
                                                                                        -----------

TOTAL ASSETS                                                                            $   279,141
                                                                                        ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Related party consulting fees payable                                                $    18,000
   Note payable                                                                              14,000
   Accounts payable                                                                           3,629
   Accrued payroll                                                                            4,292
   Preferred stock dividends payable                                                          7,566
                                                                                        -----------

           Total current liabilities                                                         47,487
                                                                                        ===========
COMMITMENTS AND CONTINGENCIES (Notes 1, 3, 5, and 7)

MINORITY INTEREST                                                                           175,857
                                                                                        -----------
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 $102,137)                94,573
   Common stock, $.001 par value; 20,000,000 shares authorized,
     15,984,613 shares outstanding                                                           15,985
   Stock subscription receivable                                                           (150,000)
   Additional paid-in capital                                                             8,024,258
   Accumulated deficit                                                                   (7,929,019)
                                                                                        ===========

           Total stockholders' equity                                                        55,797
                                                                                        -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                              $   279,141
                                                                                        ===========
</Table>

See notes to the consolidated financial statements.

                                       10
<Page>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

<Table>
<Caption>

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
-----------------------------------------------------------------------------------------------------
                                                                 2001                 2000
<S>                                                          <C>                  <C>
ROYALTY REVENUES                                             $      640           $   52,960
                                                             ----------           ----------
OPERATING EXPENSES:
  General and administrative                                    370,854              242,663
  Research and development                                       13,786               55,059
                                                             ==========           ==========

           Total operating expenses                             384,640              297,722
                                                             ----------           ----------

LOSS FROM OPERATIONS                                           (384,000)            (244,762)
                                                             ----------           ----------
OTHER INCOME (EXPENSE):
  Interest expense                                              (19,450)             (42,500)
  Other expenses, net                                           (15,957)                (989)
                                                             ==========           ==========

           Total other expense, net                             (35,407)             (43,489)
                                                             ----------           ----------

LOSS BEFORE MINORITY INTEREST                                  (419,407)            (288,251)

MINORITY INTEREST                                                25,287                    -
                                                             ----------           ----------

NET LOSS                                                       (394,120)            (288,251)

PREFERRED STOCK DIVIDENDS                                        (7,566)              (8,814)
                                                             ==========           ==========

NET LOSS APPLICABLE TO COMMON STOCKHOLDERS                   $ (401,686)          $ (297,065)
                                                             ==========           ==========

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

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING (BASIC AND DILUTED)                            13,485,399            8,795,505
                                                             ==========           ==========
</Table>

See notes to consolidated financial statements.

                                       11
<Page>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

<Table>
<Caption>

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY ITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
-------------------------------------------------------------------------------------------------------------------------------

                                                                                                     STOCK       ADDITIONAL
                                              PREFERRED STOCK                COMMON STOCK        SUBSCRIPTION      PAID IN
                                       ----------------------------  --------------------------    RECEIVABLE      CAPITAL
                                           SHARES        AMOUNT           SHARES        AMOUNT

<S>                                        <C>      <C>                <C>           <C>         <C>           <C>
Balance, January 1, 2000                   25,356   $   114,102         8,735,899    $    8,736                $    6,867,035

  Sale of common stock for cash                                           100,000           100                        29,900
  Conversion of Series A preferred
    stock to common stock                  (4,340)      (19,529)            6,510             6                        19,523
  Common stock issued to
    consultants for services                                                5,000             5                         1,870
  Common stock options granted
    to consultants for services                                                                                         6,691
  Preferred stock dividends
  Net loss
                                           ------   -----------        ----------    ----------  ------------  --------------

Balance, December 31, 2000                 21,016        94,573         8,847,409         8,847                     6,925,019

   Sale of common stock to Chi Lin
      Technologies (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

   Net loss
                                           ------   -----------        ----------    ----------  ------------  --------------
Balance, December 31, 2001
                                           21,016   $    94,573        15,984,613    $   15,985  $   (150,000) $    8,024,258
                                           ======   ===========        ==========    ==========  ============  ==============

<Caption>

                                                                            TOTAL
                                                                            STOCK-
                                                     ACCUMULATED           HOLDERS'
                                                       DEFICIT              EQUITY
                                                                          (DEFICIT)
<S>                                              <C>                   <C>
Balance, January 1, 2000                         $   (7,230,268)       $  (240,395)

  Sale of common stock for cash                                             30,000
  Conversion of Series A preferred
    stock to common stock
  Common stock issued to
    consultants for services                                                 1,875
  Common stock options granted
    to consultants for services                                              6,691
  Preferred stock dividends                              (8,814)            (8,814)
  Net loss                                             (288,251)          (288,251)
                                                    -----------        -----------

Balance, December 31, 2000                           (7,527,333)          (498,894)

   Sale of common stock to Chi Lin
      Technologies (see Note 1)
   Gain on sale of subsidiary
      common stock                                                         298,846
   Common stock issued to related
      party consultants                                                    307,531
   Payments on stock subscription
      receivable                                                           350,000
   Preferred stock dividends                             (7,566)            (7,566)
   Net loss                                            (394,120)          (394,120)
                                                    -----------        -----------

Balance, December 31, 2001                       $   (7,929,019)       $    55,797
                                                    ===========        ===========
</Table>

See notes to consolidated financial statements.

                                       12
<Page>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

<Table>
<Caption>

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
----------------------------------------------------------------------------------------------------------------

                                                                                       2001            2000
<S>                                                                                <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                                         $  (394,120)    $  (288,251)
  Adjustments to reconcile net loss to net cash used in
    operating activities:
    Depreciation and amortization                                                           71             635
    Expense related to issuance of common stock
      and common stock options for services                                            104,119           8,566
    Minority interest in losses                                                        (25,287)              -
    Changes in assets and liabilities:
      Prepaid expenses and other                                                        (4,199)             44
      Decrease in royalties receivable                                                                  57,120
      Related party consulting fees payable                                             26,409          89,011
      Accrued interest on related party notes payable                                   18,100          18,904
      Accounts payable                                                                 (63,077)         27,560
      Accrued payroll                                                                   (3,483)          6,819
                                                                                   -----------     -----------
           Net cash used in operating activities                                      (341,467)        (79,592)
                                                                                   ===========     ===========
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from borrowings on note payable to related party                            39,900          58,688
   Payments on note payable to related party                                          (292,414)              -
   Proceeds from borrowings on note payable                                             18,000               -
   Payments on note payable                                                            (18,810)              -
   Proceeds from sale of common stock                                                        -          30,000
   Proceeds from stock subscription receivable                                         350,000               -
   Proceeds from note receivable from Chi Lin                                          350,000               -
   Preferred stock dividend                                                             (7,566)              -
                                                                                   ===========     ===========
           Net cash provided by financing activities                                   439,110          88,688
                                                                                   -----------     -----------

NET INCREASE IN CASH                                                                    97,643           9,096

CASH AT BEGINNING OF THE YEAR                                                            9,096            None
                                                                                   -----------     -----------

CASH AT END OF THE YEAR                                                            $   106,739     $     9,096
                                                                                   ===========     ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
   INFORMATION - Cash paid during the year for interest                            $    62,495            None
                                                                                   ===========     ===========
</Table>

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND 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.

See notes to consolidated financial statements.

                                       13
<Page>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

     NATURE OF OPERATIONS - InMedica Development Corporation ("InMedica") and
     its 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 Plus(TM) 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 Plus(TM) 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 2000 and 2001, 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 of $394,120 and $288,251 in 2001 and 2000, respectively, and
     negative cash flows from operations of $341,467 and $79,592 in 2001 and
     2000, respectively. As of December 31, 2001 and 2000, the Company had an
     accumulated deficit of $7,929,019 and $7,527,333, respectively. At December
     31, 2001 and 2000, the Company had stockholders' equity (deficit) of
     $55,797 and $(498,894), respectively. These conditions raise substantial
     doubt as to the Company's

                                       14
<Page>

     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 by Chi Lin
     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 intercompany accounts
     and transactions have been eliminated.

     REVENUE RECOGNITION - Royalty revenues are recognized as sales information
     is received from Johnson and Johnson and cash receipts are assured. In
     early 2001, the royalty agreement expired.

     NOTE RECEIVABLE - In June 2000, the Company licensed their Technology to an
     unrelated entity in exchange for a note receivable of $150,000, due June
     19, 2001. On June 19, 2001, the entity defaulted on the note and the
     Company entered into a secured note receivable with the same entity for
     $165,000 which represents the outstanding principle plus accrued interest
     as of December 19, 2001. The secured note receivable bears interest at 10%
     annually and is due on June 19, 2002. The note is secured by all tangible
     and intangible assets of the entity. As collectibility of the note is
     uncertain, the note receivable has been fully reserved in the accompanying
     consolidated financial statements.

     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, 2001:

<Table>
              <S>                                             <C>
              Equipment                                       $ 242,260
              Furniture                                          10,729
                                                              ---------
                                                                252,989
              Less accumulated depreciation                    (252,989)
                                                              ---------

              Total                                               None
                                                              =========
</Table>

     RESEARCH AND DEVELOPMENT - Research and development costs are expensed as
     incurred.

     NET LOSS PER COMMON SHARE - Basic net loss per common share is computed by
     dividing net loss by the weighted average number of common shares
     outstanding during the year. Diluted net loss per common share ("Diluted
     EPS") reflects the potential dilution that could occur if stock options or
     other common stock equivalents were exercised or converted into common
     stock. The computation

                                       15
<Page>

     of Diluted EPS does not assume exercise or conversion of securities that
     would have an antidilutive effect on net loss per common share.

     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.

     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.

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

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

     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.

     RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS - On June 29, 2001, SFAS No.
     142, GOODWILL AND OTHER INTANGIBLE ASSETS, was approved by the Financial
     Accounting Standards Board (FASB). SFAS No. 142 changes the accounting for
     goodwill from an amortization method to an impairment-only approach.
     Goodwill from past business combinations will no longer be amortized, but
     will be reviewed annually, or more frequently if impairment indicators
     arise. The Company believes that the impact of SFAS No. 142 will not be
     significant.

2.   INCOME TAXES

     As of December 31, 2001, deferred income tax assets consisted of the
     following:

<Table>
       <S>                                                          <C>
       Net operating loss carryforwards                             $ 1,148,875
       Future deductions temporary differences related
         to compensation, reserves, and accruals                        175,794
       Less valuation allowance                                      (1,324,669)
                                                                    -----------

       Deferred income tax assets                                          None
                                                                    ===========
</Table>

                                       16
<Page>

     The valuation allowance increased $69,862 and $42,854 in 2001 and 2000,
     respectively. At December 31, 2001, the Company has consolidated net
     operating loss carryforwards for federal income tax purposes of $3,063,667.
     These net operating loss carryforwards expire at various dates beginning in
     2005 through 2019. Due to the uncertainty with respect to ultimate
     realization, the Company has established a valuation allowance for all
     deferred income tax assets.

3.   COMMON STOCK TRANSACTIONS

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

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

     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
     the following schedule: $150,000 to each company on or before May 31, 2001,
     $75,000 to each company on or before July 1, 2001, $75,000 to each company
     on or before October 1, 2001, $50,000 to each company on or before January
     1, 2002, $50,000 to each company on or before April 1, 2002, $50,000 to
     each company on or before July 1, 2002 and $50,000 to each company on or
     before October 1, 2002. As of December 31, 2001, InMedica and MicroCor had
     each received payments of $350,000 from Chi Lin. The amount of the
     transaction for InMedica and MicroCor combined was $1,000,000. The
     remaining amount due to InMedica of $150,000 is reflected as a stock
     subscription receivable in the accompanying consolidated financial
     statements. The remaining amount due MicroCor is reflected as a note
     receivable in the accompanying consolidated financial statements. 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

                                       17
<Page>

     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.

4.   STOCK OPTIONS

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

     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. Options
     outstanding under the plan are exercisable until the end of their
     contractual life.

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

     At December 31, 2001 and 2000, 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.

                                       18
<Page>

     OTHER STOCK OPTIONS - During 1995 through 2000, nonqualified options were
     issued to employees and consultants for services. All options are
     exercisable upon granting. A summary of this stock option activity for 2001
     and 2000 was as follows:

<Table>
<Caption>
                                                                  WEIGHTED
                                                                   AVERAGE
                                                      OPTION      EXERCISE
                                                      SHARES       PRICE
           <S>                                       <C>         <C>
           Outstanding at January 1, 2000             663,500    $   0.68
             Granted                                   54,000        0.73
             Forfeited or expired                    (112,500)       0.41
                                                     --------    --------

           Outstanding at December 31, 2000           605,000        0.67
             Granted                                   None
             Forfeited or expired                    (175,000)       1.16
                                                     --------    --------

           Outstanding at December 31, 2001           430,000    $   0.48
                                                     ========    ========
</Table>

     The following table summarizes information about stock options issued to
     employees outstanding at December 31, 2001:

<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             3.8            $0.30                 75,000          $0.30
     ===========     =============     =============     =========          ==============  ===============
</Table>

     The following table summarizes information about stock options issued to
     non-employees outstanding at December 31, 2001:

<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            3.9          $0.36                  263,500       $0.36
           $0.73             54,000            1.4          $0.73                   54,000       $0.73
           $1.22             37,500            4.3          $1.22                   37,500       $1.22
     ----------------    -------------     -----------   -------------      ---------------   -------------

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

                                       19
<Page>

5.   PREFERRED STOCK

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

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, 2001, there was outstanding
     principal of $14,000 under the note.

7.   RELATED PARTY TRANSACTIONS

     During 2001 and 2000, the Company incurred interest expense of $18,100 and
     $41,523, respectively, on related party notes. As of December 31, 2001,
     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
     2000 and 2001. 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,
     2001, $18,000 was owed under the arrangement.

     During 2000, the Company had a consulting arrangement with its treasurer
     whereby the Company paid $8,000 per quarter for services rendered.

     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.

                                     ******

                                       20
<Page>

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

     On January 3, 2002, InMedica Development Corporation ("the Company")
engaged Deloitte & Touche LLP as independent auditors 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.

     There have been no disagreements with the former independent accountants,
Arthur Andersen LLP, on any matter of accounting principles, practice, financial
statement disclosure or auditing scope or procedure nor have there been any
reportable events relating to the former accountants' advice. The former
accountants' reports for the last two years have not contained an adverse
opinion or disclaimer of opinion. However the former accountants' reports have
been 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.

<Table>
<Caption>
  Name                          Age              Director Since
  <S>                            <C>                  <C>
  Larry E. Clark                 79                   1995
  Ralph Henson                   57                   1999
  Richard Bruggeman              47                   1995
  Sheng Jung Chiang              56                   2001
  Ke-Shieng Yang                 47                   2001
</Table>

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

                                       21
<Page>

  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 June, 2000. Mr. Chiang has a BA from the National
  Chen Chi University and an MBA from the National Taiwan University.

  KE-SHIENG YANG - Director. Dr. Yang was employed by Medical Physics, Inc., a
  Utah based medical research company from 1989 through January, 2001. He was
  also an assistant professor in the chemical fuels engineering department of
  the University of Utah from 1987 through January, 2001. From August 1999 until
  February, 2001 he was employed as deputy director of the Medical Devices
  Division of the Industrial Research Technology Institute, of Hainchu, Taiwan.
  Since February, 2001 he has been the head of the Biomedical Engineering
  Division for Chi Lin Technologies, Co. Ltd. of Taiwan. Dr. Yang received a BS
  in chemical engineering from the National Tsing Hua University and an MS in
  chemical engineering, ME in electrical engineering and PhD in chemical and
  fuels engineering from the University of Utah.

  Each director serves until the next annual meeting of shareholders or until a
  successor is elected and qualified. Officers serve at the pleasure of the
  board of directors. Section 16(a) of the Securities Exchange Act of 1934
  requires the Company's directors and executive officers, and persons who own
  more than ten percent of a registered class of the Company's equity securities
  to file with the Securities and Exchange Commission initial reports of
  ownership

                                       22
<Page>

  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, 2001 all Section 16(a) filing requirements applicable to officers,
  directors and shareholders holding greater than ten percent were complied
  with, except the initial report on Form 3 of Chi Lin Technologies, a greater
  than 10% shareholder located in the Republic of China. The report was due in
  June, 2001 and was transmitted to the SEC July 31, 2001.

  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, 2001:

<Table>
<Caption>
                          Annual Compensation
                                                   Restricted Stock    Long Term Comp.
                                                        Awards          Common Stock
  Name                    Year   Salary    Bonus                      Underlying Options        Other
  ------------------------------------------------------------------------------------------------------
  <S>                     <C>    <C>       <C>     <C>                <C>                     <C>
  Ralph Henson (CEO)      2001   $ 86,333    -            -                   -               $15,000(2)
  Ralph Henson (CEO)      2000   $ 69,999    -            -                   -                     -
  Ralph Henson (CEO)      1999   $  5,833    -            -                   -               $31,270(3)
  Larry E. Clark (CEO)    1999   $           -            -                   -               $12,000(4)
</Table>

  DIRECTOR COMPENSATION. Directors may be compensated at the rate of $100 for
  attendance at each board meeting, but did not receive compensation for
  meetings in 2001 and 2000.

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

                                       23
<Page>

                    OPTIONS GRANTED IN THE LAST FISCAL YEAR(5)

<Table>
<Caption>

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

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

<Table>
<Caption>

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

          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 will expire during 2002.

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

                                       24
<Page>

  ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

     The following table furnishes information concerning the common stock
ownership of directors, officers, and principal shareholders as of February 8,
2002:

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

Larry E. Clark                    Direct                 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(6)            1.1%
Director, Chief                   Indirect                 464,975(7)            2.9%
Financial Officer                 Options                  106,500                .7%
                                                         ---------              ----
                                  Total                    745,862               4.6%

Sheng Jung (Robert S.) Chiang     Indirect                       *(8)
Director

Ke-Shieng Yang                    Indirect                       *(9)
Director

All Executive Officers            Direct and
and Directors as a                Indirect               8,839,591              55.3%
group (5 persons)                 Options                  106,500                .7%
                                                         ---------              ----
                                                Total    8,946,091              55.6%
</Table>

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

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

                                       25
<Page>

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
ownerships shown.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

InMedica executed employment contracts with its Chief Executive Officer, Ralph
Henson, and its Chief Financial Officer, Richard Bruggeman, on April 25, 2001.
Mr. Henson's contract 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

                                       26
<Page>

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.

                                     PART IV

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.

<Table>
<Caption>
(a) Exhibits Exhibit No.      S-K No.                          Description
<S>                           <C>       <C>
                               (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

Exhibit 1                     (10)      Consulting agreement with Larry E. Clark dated April 1, 2001

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

                              (10)      Development, Licensing and Manufacturing Agreement between
</Table>

                                       27
<Page>

<Table>
<S>                           <C>       <C>
                                        InMedica Development Corporation and Chi Lin Technology Co. Ltd. dated May 10, 2001
                                        incorporated by reference to Form 10QSB for the period ended 3/31/2001.

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

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

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

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

                              (21)      Subsidiaries of the Company (MicroCor, Inc., a Utah corporation)
</Table>

(b) No reports on Form 8-K were filed during the fourth quarter of the year
ended December 31, 2001.

                                       28
<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 13, 2002                         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 13, 2002
LARRY E. CLARK, Director


/s/ Richard Bruggeman                                  DATE:  March 13, 2002
RICHARD BRUGGEMAN, Director


/s/ Ralph Henson                                       DATE:  March 13, 2002
RALPH HENSON, Director


/s/ Sheng Jung Chiang                                  DATE:  March 13, 2002
SHENG JUNG (ROBERT S.) CHIANG,
  Director


/s/ Ke-Shieng Yang                                     DATE:  March 13, 2002
KE-SHIENG YANG, Director


                                       29
<Page>

                                  EXHIBIT INDEX

<Table>
<Caption>
SK NUMBER  EXHIBIT NUMBER         DESCRIPTION
---------------------------------------------
<S>        <C>                    <C>
10               1                Consulting agreement with Larry E. Clark
                                  dated April 1, 2001
</Table>