U.S. SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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Form 10 - QSB
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Quarterly Report Under Section 13 or 15 (d)
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of the Securities Exchange Act of 1934
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For the Quarterly Period Ended September 30, 1995
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Commission File No. 0-12968
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INMEDICA DEVELOPMENT CORPORATION
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(Exact name of small business issuer as specified in its charter)
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Utah 87-0397815
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(State or other jurisdiction of (I.R.S. Employer Identification
incorporation of organization) Number)
495 E. 4500 South, Suite 230, Salt Lake City Utah 84107
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(Address of principal executive offices)
Registrant's telephone number including area code (801) 261-5657
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Check whether the issuer (1) filed all reports required to be filed by section
13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days:
Yes X No
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The number of shares outstanding of the registrant's only class of common stock,
par value $.001 per share, as of November 1, 1995 was 7,478,903 shares.
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PART I - FINANCIAL INFORMATION Page 1 of 2
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Item 1. Financial Statements
INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1995
ASSETS
September 30,
1995
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(Unaudited)
CURRENT ASSETS:
Cash $149,695
Prepaid expenses 4,983
--------
Total current assets 154,678
IDLE EQUIPMENT AND FURNITURE,
at cost, less accumulated
depreciation of $242,038 10,097
OTHER ASSETS 2,197
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Total assets $ 166,972
============
See notes to condensed consolidated financial statements.
2
Page 2 of 2
INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1995
LIABILITIES AND STOCKHOLDERS' DEFICIT
September 30,
1995
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(Unaudited)
CURRENT LIABILITIES:
Convertible debentures $ 771,248
Accrued interest 29,579
Accrued payroll 792
Accounts payable 11,840
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Total current liabilities 813,459
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LONG TERM LIABILITIES:
Note Payable 150,000
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STOCKHOLDERS' DEFICIT:
Common stock, $.001 par value;
authorized 20,000,000 shares,
issued and outstanding
7,478,903 at
September 30, 1995 7,479
Additional paid-in
capital 6,020,702
Series A Preferred stock,
$4.50 par value; authorized
10,000,000 shares, issued
and outstanding 16,251 at
September 30, 1995 73,130
Accumulated deficit (6,897,798)
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Total stockholders'
deficit ( 796,487)
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Total liabilities and
stockholders' deficit $ 166,972
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See notes to condensed consolidated financial statements.
3
INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three For the Nine
Months Ended Months Ended
September 30, September 30.
------------------------------ ----------------------
1995 1994 1995 1994
-------------- -------------- ---------- ----------
(Unaudited) (Unaudited)
OPERATING REVENUE:
Royalties $179,840 $ 99,375 $ 321,054 $ 348,625
-0- -0- -0- -0-
---------- ---------- ---------- ---------
Total operating revenue 179,840 99,375 321,054 348,625
---------- ---------- ---------- ---------
OPERATING EXPENSES:
General and administrative 64,761 33,238 164,642 125,792
Research and development -0- -0- -0- -0-
---------- ---------- ---------- ---------
Total operating expenses 64,761 33,238 164,642 125,792
---------- ---------- ---------- ---------
INCOME FROM OPERATIONS 115,079 66,137 156,412 222,833
---------- ---------- ---------- ---------
OTHER INCOME (EXPENSES):
Miscellaneous income -0- -0- 16 1,510
Gain from sale of assets 5,728 -0- 5,728 -0-
Interest expense (38,311) (45,658) (119,521) (141,433)
---------- ---------- ---------- ---------
Total other income (expense) (32,583) (45,658) (113,777) (139,923)
---------- ---------- ---------- ---------
INCOME BEFORE
EXTRAORDINARY GAIN 82,496 20,479 42,635 82,910
EXTRAORDINARY GAIN FROM
DEBT EXTINGUISHMENT 19,217 -0- 188,770 -0-
---------- ---------- ---------- ---------
NET INCOME $ 101,713 $ 20,479 $ 231,405 $ 82,910
========== ========== ========== ==========
NET INCOME PER COMMON SHARE:
Income before
extraordinary gain $ .011 $ .003 $ .006 $ .011
Extraordinary gain .002 .000 .025 .000
========== ========== ========== ==========
$ .013 $ .003 $ .031 $ .011
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Weighted average number
of common share outstanding 7,478,903 7,474,403 7,475,919 7,474,403
========== ========== ========== ==========
See notes to condensed consolidated financial statements.
4
Page 1 of 2
INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH
For the For the
Nine Months Nine Months
Ended Ended
September 30, 1995 September 30, 1994
------------------ ------------------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 231,405 $ 82,910
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities-
Depreciation 24,517 21,075
Extraordinary gain from debt
extinguishment (188,770) -0-
Gain from sale of assets (5,728) -0-
Change in assets and liabilities-
Decrease in
accounts receivable 301,375 -0-
Decrease in inventory -0- 1,200
Decrease in prepaid
expenses 20,024 22,642
Decrease in accounts
payable (6,961) (478)
Decrease in accrued
payroll (29,151) (23,939)
Decrease in consulting
fees payable (4,260) -0-
Decrease in interest
payable (115,455) (172,519)
Decrease in royalties payable -0- (5,698)
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Net cash provided by (used
in) operating activities 226,996 (74,807)
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See notes to condensed consolidated financial statements.
5
Page 2 of 2
INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the For the
Nine Months Nine Months
Ended Ended
September 30, 1995 September 30, 1994
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(Unaudited) (Unaudited)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets 6,200 -0-
Purchase of fixed assets (3,466) -0-
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Net cash provided by
investing activities 2,734 -0-
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CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on
convertible debentures (233,453) (2,936)
Proceeds from bank loan 150,000 -0-
Proceeds from issuance of
common stock 338 27,905
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Net cash provided by
(used in) financing
activities (83,115) 24,969
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NET INCREASE (DECREASE) IN CASH $ 146,615 $(49,838)
CASH AT BEGINNING OF PERIOD 3,080 81,669
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CASH AT END OF PERIOD $ 149,695 $ 31,831
========= ========
See notes to condensed consolidated financial statements
6
INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note A--BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310b of
Regulation SB. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. These consolidated statements include the accounts of
InMedica Development Corporation and its wholly owned subsidiary, MicroCor, Inc.
("MicroCor"). All material intercompany accounts and transactions have been
eliminated.
In the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for fair presentation have been included.
Operating results for the three and nine-month periods ended September 30, 1995
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1995. For further information, refer to the consolidated
financial statements included in the Company's Form 10-KSB for the year ended
December 31, 1994.
NOTE B--AUTHORIZATION OF CLASS AND SERIES OF PREFERRED STOCK
Effective June 16, 1995, the shareholders of InMedica Development Corporation
(the "Company") adopted Articles of Amendment to its Articles of Incorporation
authorizing the issuance of up to 10,000,000 shares of Preferred Stock and
authorizing the board of directors to fix and determine the relative rights and
preferences of the shares including dividend rights, price of issuance,
liquidation rights, any redemption rights, conversion rights, and any voting
rights. Effective September 25, 1995, the Board of Directors authorized the
issuance of up to 1,000,000 shares of Preferred Stock, to be designated "Series
A", $4.50 par value (the "Series A Preferred Stock") at a price of $4.50 per
share. The holders of the Series A Preferred Stock are entitled to cumulative
cash dividends at the annual rate of eight percent (8%) per annum ($.36 per
share per annum) or $.09 per share per quarter, payable on or before the
following dates: January 31, April 30, July 31, and October 31 of each year.
Dividends on the Preferred Stock 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. If any dividends on the Series A Preferred Stock are not paid or set
apart when due, the deficiency is cumulative and is required to be fully paid
and set apart before any other dividend is paid. In the event of any
liquidation, dissolution or winding up of the affairs of the Corporation,
whether voluntary or otherwise, after payment or provision for payment of the
debts and other liabilities of the
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Corporation (excluding accumulated dividends payable on any class or series of
stock), the holders of the Series A Preferred Stock are entitled to receive, out
of the remaining net assets of the Corporation, the amount of $4.50 in cash for
each share of Series A Preferred Stock, plus an amount equal to all dividends
accrued and unpaid on each such share up to the date fixed for distribution,
before any distribution is made to the holders of any class of the common stock
of the Corporation. The Company had outstanding 16,251 shares of its Series A
Preferred Stock as of September 30, 1995, held by two stockholders. Subsequent
to the quarter end, the Company issued a total of 51,871 shares to eight
additional shareholders (See Note C).
NOTE C--DEFAULT ON PAYMENT OF CONVERTIBLE DEBENTURES; SETTLEMENT OF
CERTAIN DEBENTURE DEBT
The Company sold $300,000 of Series A convertible debentures in 1990 and
$800,000 of Series C convertible debentures in 1991. Upon maturity, the Company
was required to redeem 100 percent of the original purchase amount of the
debentures plus any unpaid accrued interest. These unsecured debentures bore an
interest rate of ten percent through September 30, 1992. On March 3, 1993, the
Board of Directors authorized an increase in the interest rate on the debentures
to 15 percent effective October 1, 1992. The Series A debentures matured on
December 31, 1993 and the Series C debentures matured on June 30, 1994. At
September 30, 1995, the Company was in default in payment of an aggregate
principal amount owing on the Series A and Series C debentures of $771,248. See
Part II, Item 5 for a description of a subsequent exchange offer pursuant to
which the debentures of ten debenture holders have been retired.
On December 11, 1992, Eric Welling, Clinton B. Newman and J. Lynn Smith, then
debenture holders of the Company, filed a complaint in the Third Judicial
District Court in Salt Lake County, in the State of Utah, demanding unpaid
principal and interest of $120,740 on the Series A debentures and $177,260 on
the Series C debentures. On March 3, 1993 the Board of Directors of the Company
passed a resolution that provides for 1) at least 50 percent of all future
Critikon royalties to be paid to all debenture holders proportionate to the
amount of debentures purchased, 2) an increase in the interest rate on the
debentures to 15 percent (effective October 1, 1992), 3) improved communications
with debenture holders and 4) completion of an independent technical review of
the Company's non-invasive hematocrit technology by July 1, 1993. The Board has
completed all but the fourth item. Effective September 25, 1995, the Company
settled litigation with Clinton B. Newman and J. Lynn Smith by issuing them
5,243 and 11,008 shares of its Series A Preferred Stock, respectively, and
paying them $23,595 and $49,534, respectively in exchange for settlement of
their lawsuit on the debentures and full satisfaction of their debentures.
Newman and Smith have delivered Stipulations of Dismissal with respect to the
suit to the Company. As additional consideration
8
for their participation in the settlement agreement, the Company agreed to issue
to Newman and Smith, without additional consideration, additional shares of
common stock of the Company equal to the number of conversion shares they
received upon exercise of their conversion rights under the Series A Preferred
Shares during the period October 1, 1996 through October 1, 1997. The right to
receive such additional shares expires if the parties do not exercise their
conversion rights during the period in question. Effective September 27, 1995,
the Company paid Eric Welling $80,040 to settle outstanding debenture
obligations of $99,069 owing to him and the lawsuit he had brought to collect
amounts owing to him. Dr. Welling has also delivered a Stipulation of Dismissal
of the litigation he had brought against the Company.
NOTE D--BANK LOAN; ASSIGNMENTS FOR SECURITY
Effective August 31, 1995, the Board of Directors approved borrowing funds from
a commercial bank. During September, 1995, the bank approved a loan of $500,000
to the Company bearing interest at prime plus 1 1/4%. The initial interest rate
is 10% per annum. Principal and interest payments are due quarterly, with
$12,500 principal plus accrued interest, payable at the end of each quarter.
The entire remaining unpaid balance of principal and interest is due and payable
on August 1, 1998. Larry E. Clark, President and Director of the Company, is a
co-obligor on the loan. The Company expects debt service (including principal
and interest payments) during the first year to be approximately $95,000.
Payment of the bank loan is secured by an assignment of the Johnson & Johnson
Medical, Inc. Agreement, which would be available to the bank as security in the
event of a Company default on the bank loan. The Company considers the loan to
be well secured with over $1,000,000 of additional collateral supplied by the
Company's president, Larry E. Clark. In consideration of the collateral
provided by Mr. Clark, the Board of Directors has granted Mr. Clark, effective
October 16, 1995, non-qualified options to purchase 500,000 shares of the
Company's common stock at a price of $.30 per share, exercisable for 10 years.
The Company has also granted Mr. Clark a security interest in the Johnson &
Johnson Medical Agreement to secure him for any liability or loss he may suffer
as a result of placing his collateral and credit at risk.
NOTE E--J & J MEDICAL CONTRACT
The Company reached an agreement dated June 15, 1995, with Johnson & Johnson
Medical, Inc., a New Jersey corporation, ("JJMI"). The Agreement replaces the
Company's agreement dated July 18, 1989 with Critikon, Inc. which had obligated
Critikon to pay a royalty to the Company based on certain technology MicroCor
had licensed to Critikon. The new Agreement commits JJMI to pay a royalty to
the Company for each specified PLUS Vital Signs Monitor (the "Dinamap PLUS
Monitor") sold by JJMI to unaffiliated third parties. In consideration of the
royalty, the Company has granted JJMI
9
nonexclusive worldwide license to the technology. Under the terms of the new
Agreement, the Company expects to receive an increased per unit royalty rate
when compared to the prior agreement. The new royalty rate was effective as of
January 2, 1995.
Under the new Agreement, JJMI is obligated to retain records for at least three
years after the end of each royalty period. MircoCor has the right to audit the
records upon reasonable notice. Sales are reported and royalties are paid
quarterly to InMedica three months after the end of the quarterly period in
question. In the event the technology licensed by MicroCor should be found to
infringe the valid patent rights of others, pursuant to an opinion of counsel,
then JJMI is authorized to settle with such third parties and deduct the amount
of the settlement from royalties due MicroCor, not to exceed one half of the
royalties owing to MircoCor. In the event JJMI took a license or made a lump
sum settlement to settle any dispute, the amount of abatement of the royalty
payable to MicroCor would be subject to good faith negotiation.
The new Agreement is to continue so long as JJMI continues to sell Dinamap PLUS
Monitors, but may be terminated upon the dissolution, winding up, bankruptcy or
material breach of contract of either party.
NOTE F--SUBSEQUENT EVENTS
For a description of certain subsequent events affecting or possibly affecting
the financial statements of the Company, see Part II, Item 5, sub-parts 1-4.
10
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital
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For the nine months ended September 30, 1995, operating revenues were generated
solely from royalty income received from J & J Medical, Inc. No operating
revenues were recognized during the first quarter of 1995 due to the revenue
recognition policy of the Company and the timing of the receipt of revenues.
Consequently, revenues historically included in the first quarter, were included
in the last quarter of 1994. Royalty revenues being received by the Company are
insufficient to sustain research and development operations. InMedica is unable
to estimate whether royalty income would be adequate to retire principal and
accrued interest, over time, on remaining debenture and bank debt. InMedica
intends to continue to look for other funding sources.
InMedica has not achieved profitable operations for any year since its
organization (except for 1994 and 1995, year to date, due to 1994 expense
reductions and the suspension of further research and development efforts) and
has a shareholders' deficit of $796,487 as of September 30, 1995. In order for
InMedica to continue its research and development activities, it must secure
additional financing, for which it has no commitments. It is impossible to
estimate the amount of the J & J Medical royalties which may be received in the
future due to uncertainties regarding the future sales of the product being sold
by J & J Medical upon which InMedica's royalty is based.
Results of Operations
- ---------------------
See "Liquidity and Capital" for an explanation as to the absence of royalty
revenues during the first quarter of 1995, which absence resulted in an overall
decline of $27,571 in the Company's revenues for the nine months ended September
30, 1995 when compared to revenues for the nine months ended September 30, 1994.
However, a significant increase in royalties for the second and third quarters
of 1995, when compared to royalties received during the second and third
quarters of 1994, largely offset the absence of first quarter revenues in 1995.
Significant operating revenues were derived only from royalty income during the
nine months ended September 30, 1995. Income from operations of $42,635 and the
net income of $231,405 for the nine month period ended September 30, 1995
resulted, notwithstanding the decline in revenues for the period, because the
Company had extraordinary gain from debt extinguishment during the second
quarter of $169,533 as a result of the settlement of payroll and consulting fees
for substantially less than face value and extraordinary gain of $19,237 during
the third quarter
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from settlement of a debenture at a discount. General and administrative
expenses increased by $38,850 over the period ended September 30, 1994 due to
costs associated with the restructuring of the Company's debt and renegotiation
of the contract with J & J Medical. Net income during the third quarter of 1995
increased by $81,234 when compared to the third quarter of 1994 due to an
$80,465 increase in royalty revenues and the $19,217 extraordinary gain, which
more than offset the $31,523 increase in general and administrative expense
during the same period.
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PART II - OTHER INFORMATION
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Item 1. Legal Proceedings:
None
Item 2. Changes in Securities:
The Company presently has outstanding Convertible Debentures with a face amount
owing as of November 10, 1995 of approximately $321,688. The Debentures were
originally convertible to common stock at the rate of $1.00 of accrued interest
and principal owing per one share of common stock. The conversion rate of the
Debentures, however, was adjusted to a lower rate of one share of common stock
per $.75 owed under the debentures based on the issuance of the Series A
Preferred Stock which carries a first year conversion rate of $.75 per share
(six common shares per Preferred Share). Any Debenture Debt not converted to
Preferred Stock pursuant to the offering to debenture holders, would
consequently continue to be convertible to common stock at the rate of one share
per $.75 owing.
Item 3. Defaults Upon Senior Securities:
See Note C to the Financial Statements for a description of events of default
under the Company's Series A and Series C Convertible Debentures.
Item 4. Submission of Matters to a Vote of Security Holders:
None
Item 5. Other Information:
(1) New Directors; Director Stock Options. Effective August 31, 1995, the
Board of Directors appointed Richard Bruggeman as a Director of the Company to
fill a vacancy created when Hank Perry resigned effective the same date.
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Mr. Bruggeman, age 39, is also the Secretary/Treasurer and Chief Financial
Officer of the Company. Since 1993, he has been employed as Controller of
Kitchen Specialties, Inc., a Salt Lake City firm distributing kitchen appliances
in the United States and Canada. From 1986 until 1993 he was employed by the
Company's subsidiary, MicroCor, Inc. as financial manager. During the period
1983-1985, he was a sole practitioner in accounting and from 1981-1983 he was
employed by the Salt Lake City public accounting firm of Robison Hill & Co. He
graduated from the University of Utah in 1981 with a B.S. degree in accounting.
Effective November 7, 1995, the Board of Directors appointed Dr. David L.
Dingman, age 59, as a Director of the Company. Dr. Dingman is a Professor of
Surgery, Emeritus, at the University of Utah Medical Center. He was Associate
Professor and Professor of Surgery from 1989-1993. He was an Attending Staff
Surgeon at the Veterans Administration Medical Center, Salt Lake City, Utah from
1984-1989. He also served as Chairman of the Department of Surgery at Holy
Cross Hospital in Salt Lake City, Utah from 1986-1989 and as Chairman of the
Department of Plastic Surgery at Holy Cross Hospital from 1982-1985. From 1972-
1989 he was a Clinical Associate Professor of Surgery at the University of Utah
Medical Center. He graduated in pre-med from Dartmouth College in 1957 and
received his M.D. degree from the University of Michigan in 1961.
The Board of Directors has granted non-qualified stock options to Directors
Clark, Merendino and
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Bruggeman to purchase 100,000 shares each of common stock of the Company for
$.30 per share exercisable for a period of 10 years. The options are
immediately exercisable and become non-forfeitable after each director has
completed one year of service and thereafter are not cancelled if the Director
leaves the service of the Company. The Board of Directors expects to grant a
similar option to Director Dingman. See also Note D to the financial statements
for a description of an additional 500,000 options granted to Director Larry E.
Clark.
(2) Settlement of Certain Debenture Debt. During October, 1995, the Company
offered to settle with its remaining debenture holders by issuing them shares of
its Series A Preferred Stock for a portion of principal outstanding and to pay
the balance of principal and interest in cash. Ten of the remaining debenture
holders have accepted the offer and received aggregate payments of $233,424 cash
and received 51,871 shares of Series A Preferred Stock to discharge total
debenture principal debt of $449,560. Four additional debenture holders have
orally agreed to accept the offer or are considering the offer.
(3) Purchase of Non-Invasive Hematocrit Technology. The Company made a
purchase of certain non-invasive hematocrit technology for $200,000 on November
6, 1995. For the past 5 years, the Company has conducted research on 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
15
cells and is a common laboratory test currently performed invasively by drawing
a blood sample from the patient. More than a year ago, Dr. Paul J. Diehl, a
principal shareholder of the Company, hired an electrical engineer, Paul W.
Ruben, to conduct additional research and development on the Company's non-
invasive hematocrit technology. After evaluating Ruben's engineering work, and
after review and negotiations, the Company determined that the research had
resulted in significant progress and agreed to purchase the technology. In
exchange, Dr. Diehl and Mr. Ruben agreed to transfer a portable prototype and
their research information relating to measuring hematocrit non-invasively to
the Company. They agreed not to compete with InMedica and agreed not to
disclose the information for a period of five years from the date of the
agreement. Further, Mr. Ruben agreed to consult with InMedica on an ongoing
hourly basis in continued research and development of the project, at the
Company's direction. The Company paid Dr. Diehl and Mr. Ruben $98,000 total at
the closing and signed a promissory note for an additional $102,000, total,
payable in four equal quarterly installments beginning January 15, 1996. Dr.
Allan Kaminsky, former President and a consultant to InMedica, and Mr. Ruben are
continuing to work on the development of the working prototype and on additional
medical applications of this technology. The Company intends to conduct
clinical trials of the prototype as soon as feasible. The Company has
previously announced its willingness to consider strategic alliances and
16
partnerships for the production and marketing of any product or products which
may result from this technology.
(4) Regulation S Offering. During October, 1995, the Company prepared a
Regulation S offering to be used in seeking foreign investors for approximately
900,000 shares of its Series A Preferred Stock. If successful, the Company
seeks to raise a minimum of $1,000,000 and a maximum of approximately
$4,026,393. If successful, the monies raised would be used to fund research and
development, retire debt and to seek opportunities for acquisitions or mergers.
There are, however, no present plans, commitments or agreements to engage in any
acquisition, merger, consolidation or other reorganization. To date, there are
no offers to purchase shares offered in the Regulation S offering.
17
Item 6. Exhibits and reports on Form 8-K:
Exhibits:
(3) a- Articles of Amendment filed June 16, 1995;
b-Articles of Amendment filed September 25, 1995
(relating to authorization of the class and series
of preferred stock)
(10) a- Settlement Agreement with Eric Welling
b- Settlement Agreement with Clint Newman
c- Settlement Agreement with J. Lynn Smith
d- Commercial Security Agreement between Larry E.
Clark and InMedica Development Corporation
e- Agreement between InMedica Development Corp.
Paul J. Diehl and Paul W. Ruben dated 11/6/95
(27) Financial Data Schedule
Reports on Form 8-K: None
18
SIGNATURES
----------
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
INMEDICA DEVELOPMENT CORPORATION
By Larry E. Clark, Chairman
Date: Sept. 10, 1995 By Richard Bruggeman, Treasurer
19
EXHIBITS
Exhibits filed with the Form 10-QSB of InMedica Development Corporation, SEC
File No. 0-12968:
Exhibit No. SB Item No. Description
- ---------------------------- ----------- ---------------------------------
1 (3) Articles of Amendment filed
June 16, 1995
2 (3) Articles of Amendment filed
September 25, 1995
3 (10) Settlement Agreement between
Eric Welling and InMedica
Development Corporation dated
September 27, 1995
4 (10) Settlement Agreement between
Clint Newman and InMedica
Development Corporation dated
September 25, 1995 and Addendum
5 (10) Settlement Agreement between
J. Lynn Smith and InMedica
Development Corporation dated
September 25, 1995 and Addendum
6 (10) Commercial Security Agreement
Larry E. Clark and InMedica
Development Corporation
7 (10) Purchase and Settlement Agreement
between InMedica Development
Corporation, Paul J. Diehl, and
Paul W. Ruben dated November 6,
1995
8 (27) Financial Data Schedule