U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 12b-25
                                                                    SEC File No:
                       NOTIFICATION OF LATE FILING                      0-12968

                               Form 10-Q or 10-QSB

                       For Period Ended September 30, 1996


         Nothing in this form shall be  construed  to imply that the  Commission
has verified any information contained herein.

         If the  notification  relates to a portion of the filing checked above,
identify the Item(s) to which the notification relates:

          Not applicable. The filing relates to the entire Form 10-QSB.

Part I--Registrant Information

            Full Name of Registrant: INMEDICA DEVELOPMENT CORPORATION

                     Address of Principal Executive Office:
                          60 South 600 East, Suite 150

              City, State and Zip Code: Salt Lake City, Utah 84102


Part II--Rules 12b-25(b) and (c)

         If the subject report could not be filed without unreasonable effort or
expense  and  the  registrant  seeks  relief  pursuant  to Rule  12b-25(b),  the
following should be completed. (Check box if appropriate)

[X]      (a)      The reasons described in reasonable detail in Part III of
this form could not be eliminated without unreasonable effort or
expense;

[X] (b) The subject annual report or semi-annual  report/portion thereof will be
filed on or before the fifteenth calendar day following the prescribed due date;
or the subject quarterly  report/portion  thereof will be filed on or before the
fifth calendar day following the prescribed due date; and

[ ]      (c)      The accountant's statement or other exhibit required by
Rule 12b-25(c) has been attached if applicable.


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Part III--Narrative

         State below in reasonable detail the reasons why Form 10-Q or 10-QSB or
portion thereof could not be filed within the prescribed time period.

         The reason the report could not be timely filed is that the Company had
         granted  certain  options  during the reporting  period and was advised
         prior to the filing of the need to compute the expense  associated with
         the options  under new  regulations.  As a result,  the filing has been
         delayed while the Company obtains software and makes the computation.

Part IV--Other Information

         (1)      The person to contact in regard to this notification is:

         Scott R. Jenkins               (801)   531-8300

         (2) Have all other periodic  reports required under section 13 or 15(d)
of the Securities  Exchange Act of 1934 or section 30 of the Investment  Company
Act of 1940 during the  preceding 12 months or for such shorter  period that the
registrant was required to file such report(s) been filed?  If the answer is no,
identify report(s).                                               [X] Yes [ ] No

         (3) Is it  anticipated  that  any  significant  change  in  results  of
operations  from the  corresponding  period  for the last  fiscal  year  will be
reflected  by  the  earnings  statements to be included in the subject report or
portion thereof?                                                  [X] Yes [ ] No

         If  so:  attach  an  explanation  of  the  anticipated   change,   both
narratively and  quantitatively,  and, if  appropriate,  state the reasons why a
reasonable estimate of results cannot be made.

     The Company  expects to have gross  revenues  comparable to those  received
during the  comparable  period of 1995.  Income from  operations  is expected to
decrease,  however,  due to increased  research and  development  expense in the
current  year.  Net income for the current year is expected to be  significantly
reduced from the prior period in that the prior  period  included  extraordinary
gain  from debt  extinguishment  of  $188,770,  with no  comparable  gain in the
current year.  Pending the computation of the stock option expense, a reasonable
estimate of the quantitative results of operations cannot be made at this time.

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                        INMEDICA DEVELOPMENT CORPORATION

has  caused  this  notification  to be signed on its  behalf by the  undersigned
thereunto duly authorized.


Date:  November 14, 1996  By:/s/Larry E. Clark
                             Larry E. Clark, President


INSTRUCTION: The form may be signed by an executive officer of the registrant or
by any other duly  authorized  representative.  The name and title of the person
signing  the form  shall  be typed or  printed  beneath  the  signature.  If the
statement is signed on behalf of the registrant by an authorized  representative
(other than an executive officer), evidence of the representative's authority to
sign on behalf of the registrant shall be filed with the form.

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