UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K A/1
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 7, 2004
INMEDICA DEVELOPMENT CORPORATION
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(Exact name of registrant as specified in charter)
Utah 0-12968 87-0397815
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(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification No.)
825 N. 300 West, Suite N132
Salt Lake City, Utah 84103
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(Address of principal executive offices)
Registrant's telephone number, including area code: (801)521-9300
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1
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
FINANCIAL STATEMENTS. The following pro forma financial statements are filed as
an amendment to the Form 8-K filed September 14, 2004:
Unaudited Pro Forma Statements of Operations for the Nine Months Ended September
30, 2004 - Contingency 1- Sale of 15%
Unaudited Pro Forma Statements of Operations for the Year Ended December 31,
2003 - Contingency 1- Sale of 15%
Unaudited Pro Forma Condensed Balance Sheet, September 30, 2004 - Contingency 2
- - Sale of 49%
Unaudited Pro Forma Statements of Operations for the Nine Months Ended September
30, 2004 - Contingency 2 - Sale of 49%
Unaudited Pro Forma Statements of Operations for the Year Ended December 31,
2003 - Contingency 2 - Sale of 49%
Unaudited Pro Forma Condensed Balance Sheet, September 30, 2004 - Contingency 3
- - Sale of 100%
Unaudited Pro Forma Statements of Operations for the Nine Months Ended September
30, 2004 - Contingency 3 - Sale of 100%
Unaudited Pro Forma Statements of Operations for the Year Ended December 31,
2003 - Contingency 3 - Sale of 100%
Notes to Unaudited Pro Forma Condensed Combined Financial Statements
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
Effective September 7, 2004, InMedica Development Corporation
("InMedica") and its subsidiary, MicroCor, Inc. ("MicroCor") entered into a
Joint Development Agreement pursuant to which Wescor, Inc., a Utah medical
technology company ("Wescor") purchased 15% of the issued and outstanding common
stock of MicroCor on a pro-rata basis from InMedica and from Chi Lin Technology
Co, Ltd of Tainan, Taiwan, ("Chi Lin") for $375,000. Prior to the consummation
of the transaction InMedica held 80% of the issued and outstanding common stock
of MicroCor and Chi Lin owned 20%. Following the transaction, InMedica holds
68%, Chi Lin holds 17% and Wescor holds 15% of the issued and outstanding stock
of MicroCor. The purchase monies will be paid $300,000 to InMedica and $75,000
to Chi Lin, payable in installments over 18 months. Twenty percent of each
payment made to InMedica will be applied to outstanding debt owing from InMedica
to Wescor in the present amount of $114,969.93.
If Wescor completes phases 1, 2, and 3 of the Joint Development
Agreement, Wescor will be issued 1,700,000 shares of MicroCor common stock
following which Wescor would hold 49% of the issued and outstanding stock of
MicroCor, InMedica would hold 40.8% and Chi Lin would hold the remaining 10.2%.
In addition, upon completion of phase 3, Wescor will have an option to purchase
all, 100%, of the remaining issued and outstanding stock of MicroCor from
InMedica and Chi Lin.
MicroCor has also granted certain royalty and revenue royalty rights to InMedica
and Chi Lin.
The following unaudited pro forma condensed combined financial
statements are based on the above three scenarios as follows: (Contingency 1)
the initial sale of 15% of MicroCor; (Contingency 2) the initial sale of 15%
plus the sale of an additional 34% of MicroCor for a total of 49% (following
completion of phases 1, 2 and 3); and (Contingency 3) the initial sale of 15%
plus the additional 34% and the sale of the additional 51% of MicroCor for a
total sale of 100% (contingent upon phases 1, 2 and 3 and the exercise by Wescor
of its option to buy the remaining 51%)
The following unaudited pro forma condensed combined financial
statements are based on the consolidated December 31, 2003 audited and September
30, 2004 unaudited historical financial statements of InMedica incorporated by
reference herein (See "FINANCIAL STATEMENTS"). The unaudited pro forma condensed
combined balance sheet assumes the sale occurred as of September 30, 2004. The
unaudited pro forma condensed combined statement of operations for the nine
months ended September 30, 2004 presents the results of operations assuming the
sale was completed on January 1, 2004. The unaudited pro forma condensed
combined statement of operations for the year ended December 31, 2003 presents
the results of operations, assuming the sale was effective on January 1, 2003.
The unaudited pro forma condensed combined financial statements have
been prepared by management of InMedica based on the financial statements
incorporated herein. The pro forma adjustments include certain assumptions and
preliminary estimates as discussed in the accompanying notes and are subject to
change. These pro forma statements may not be indicative of the results that
actually would have occurred if the combination had been in effect on the dates
indicated or which may be obtained in the future. These pro forma financial
statements should be read in conjunction with the accompanying notes and the
historical financial information of InMedica (including the notes thereto)
incorporated by reference in this filing. See "FINANCIAL STATEMENTS."
PF-1
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
Contingency 1 - Sale of 15%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------ ------------------- -------------------
Revenues: $ - $ - $ -
Expenses:
General & administrative 153,545 - 153,545
Research & development 9,929 - 9,929
------------------ ------------------- -------------------
Net Loss from Operations (163,474) - (163,474)
Other Income (expense) 68,597 8,768 A 77,365
------------------ ------------------- -------------------
Minority Interest 166,468 - 166,468
------------------ ------------------- -------------------
Net Income (Loss) $71,591 $8,768 $80,359
Preferred Stock Dividends $(5,674) - $(5,674)
------------------ ------------------- -------------------
Net Income (Loss) to Common Stockholders $65,917 $8,768 $74,685
================== =================== ===================
Income (Loss) per share $ - $ - $ 0.00
================== =================== ===================
Weighted average shares outstanding 15,982,993 15,982,993
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-2
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Contingency 1 - Sale of 15%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------- ------------------- ------------------
Revenues: $ - $ - $ -
Expenses:
General & administrative 174,203 - 174,203
Research & development 24,723 - 24,723
------------------- ------------------- ------------------
Net Loss from Operations (198,926) - (198,926)
Other Income (expense) 47 11,377 A 11,424
------------------- ------------------- ------------------
Minority Interest 29,727 17,836 B 47,563
------------------- ------------------- ------------------
Net Income (Loss) $(169,152) $29,213 $(139,939)
Preferred Stock Dividends $(7,566) - $(7,566)
------------------- ------------------- ------------------
Net Income (Loss) to Common Stockholders $(176,718) $29,213 $(147,505)
=================== =================== ==================
Income (Loss) per share $ (0.01) $ - $ (0.01)
=================== =================== ==================
Weighted average shares outstanding 15,982,993 15,982,993
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-3
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
SEPTEMBER 30, 2004
Contingency 2 - Sale of 49%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------ ------------------- -------------------
ASSETS
Current assets $273,099 - $273,099
Fixed assets (net) 442 - 442
------------------ ------------------- -------------------
Total Assets $273,541 - $273,541
================== =================== ===================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable & accrued expenses $78,396 $ - $78,396
Related party payable 84,000 - 84,000
Note payable 108,970 - 108,970
Preferred dividend payable 24,589 - 24,589
------------------ ------------------- -------------------
Total Current Liabilities 295,955 - 295,955
------------------ ------------------- -------------------
Minority Interest (62,386) (53,028) A (115,414)
------------------ ------------------- -------------------
Stockholders' Equity:
Preferred Stock 94,573 - 94,573
Common stock 15,983 - 15,983
Paid in capital 8,264,260 - 8,264,260
Accumulated deficit (8,334,844) - (8,334,844)
53,028 A 53,028
------------------ ------------------- -------------------
Total Stockholders' Equity (Deficit) 39,972 53,028 93,000
------------------ ------------------- -------------------
Total Liabilities and Stockholders' Equity $273,541 - $273,541
================== =================== ===================
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-4
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
Contingency 2 - Sale of 49%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------ ------------------- -------------------
Revenues: $ - $ - $ -
Expenses:
General & administrative 153,545 - 153,545
Research & development 9,929 850,000 C 859,929
------------------ ------------------- -------------------
Net Loss from Operations (163,474) (850,000) (1,013,474)
Other Income (expense) 68,597 8,768 A 77,365
------------------ ------------------- -------------------
Minority Interest 166,468 141,498 B 307,966
------------------ ------------------- -------------------
Net Income (Loss) $71,591 $(699,734) $(628,143)
Preferred Stock Dividends $(5,674) - $(5,674)
------------------ ------------------- -------------------
Net Income (Loss) to Common Stockholders $65,917 $(699,734) $(633,817)
================== =================== ===================
Income (Loss) per share $ - $ - $ (0.04)
================== =================== ===================
Weighted average shares outstanding 15,982,993 15,982,993
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-5
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Contingency 2 - Sale of 49%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------- ------------------- ------------------
Revenues: $ - $ - $ -
Expenses:
General & administrative 174,203 - 174,203
Research & development 24,723 850,000 C 874,723
------------------- ------------------- ------------------
Net Loss from Operations (198,926) (850,000) (1,048,926)
Other Income (expense) 47 11,377 A 11,424
------------------- ------------------- ------------------
Minority Interest 29,727 561,465 B 591,192
------------------- ------------------- ------------------
Net Income (Loss) $(169,152) $(277,158) $(446,310)
Preferred Stock Dividends $(7,566) - $(7,566)
------------------- ------------------- ------------------
Net Income (Loss) to Common Stockholders $(176,718) $(277,158) $(453,876)
=================== =================== ==================
Income (Loss) per share $ (0.01) $ - $ (0.03)
=================== =================== ==================
Weighted average shares outstanding 15,982,993 15,982,993
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-6
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
SEPTEMBER 30, 2004
Contingency 3 - Sale of 100%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------ ------------------- -------------------
ASSETS
Current assets $273,099 $(191) B $272,908
1,020,000 C 1,020,000
Fixed assets (net) 442 - 442
------------------ ------------------- -------------------
Total Assets $273,541 $1,019,809 $1,293,350
================== =================== ===================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable & accrued expenses $78,396 - $78,396
Related party payable 84,000 - 84,000
Note payable 108,970 - 108,970
Preferred dividend payable 24,589 - 24,589
------------------ ------------------- -------------------
Total Current Liabilities 295,955 - 295,955
------------------ ------------------- -------------------
Minority Interest (62,386) 62,386 B -
------------------ ------------------- -------------------
Stockholders' Equity:
Preferred Stock 94,573 - 94,573
Common stock 15,983 - 15,983
Paid in capital 8,264,260 - 8,264,260
Accumulated deficit (8,334,844) (62,577) B (8,397,421)
1,020,000 C 1,020,000
------------------ ------------------- -------------------
Total Stockholders' Equity (Deficit) 39,972 957,423 997,395
------------------ ------------------- -------------------
Total Liabilities and Stockholders' Equity $273,541 $1,019,809 $1,293,350
================== =================== ===================
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-7
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
Contingency 3 - Sale of 100%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------ ------------------- -------------------
Revenues: $ - $ - $ -
Expenses:
General & administrative 153,545 (86,526) D 67,019
Research & development 9,929 (9,929) D -
------------------ ------------------- -------------------
Net Loss from Operations (163,474) 96,455 (67,019)
Other Income (expense) 68,597 8,768 A 77,365
------------------ ------------------- -------------------
(11,202) D (11,202)
Minority Interest 166,468 (166,468) D -
------------------ ------------------- -------------------
Net Income (Loss) $71,591 $(72,447) $(856)
Preferred Stock Dividends $(5,674) - $(5,674)
------------------ ------------------- -------------------
Net Income (Loss) to Common Stockholders $65,917 $(72,447) $(6,530)
================== =================== ===================
Income (Loss) per share $ - $ - $ 0.00
================== =================== ===================
Weighted average shares outstanding 15,982,993 15,982,993
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-8
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Contingency 3 - Sale of 100%
Pro Forma
Pro Forma Combined
InMedica Adjustments Balance
------------------- ------------------- ------------------
Revenues: $ - $ - $ -
Expenses:
General & administrative 174,203 (123,958) D 50,245
Research & development 24,723 (24,723) D -
------------------- ------------------- ------------------
Net Loss from Operations (198,926) 148,681 (50,245)
Other Income (expense) 47 (47) C -
Other Income (expense) 11,377 A 11,377
------------------- ------------------- ------------------
Minority Interest 29,727 (29,727) D -
------------------- ------------------- ------------------
Net Income (Loss) $(169,152) $130,284 $(38,868)
Preferred Stock Dividends $(7,566) - $(7,566)
------------------- ------------------- ------------------
Net Income (Loss) to Common Stockholders $(176,718) $130,284 $(46,434)
=================== =================== ==================
Income (Loss) per share $ (0.01) $ - $ 0.00
=================== =================== ==================
Weighted average shares outstanding 15,982,993 15,982,993
See accompanying notes to unaudited pro forma condensed combined financial
statements.
PF-9
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(1) GENERAL
Pursuant to the sale, InMedica will receive $300,000, with $30,000 paid on
closing and $270,000 paid in monthly installments of $15,000 plus interest at
prime plus 2% in exchange for shares of InMedica's Majority owned subsidiary
MicroCor.
As a special provision of the agreement InMedica will payback to WesCor 20% of
the initial payment of $30,000 and 20% of each monthly payment as payment on the
amounts previously loaned to InMedica by WesCor.
(2) PRO FORMA ADJUSTMENTS
The adjustments to the accompanying unaudited pro forma condensed
combined balance sheet as of September 30, 2004, are described below:
(A) Record additional minority interest resulting from sale of MicroCor
stock.
(B) Remove 100% of MicroCor.
(C) Record sale of 100% of remaining interest in MicroCor stock at an
assumed price of $.50 per share for a total of $1,020,000, based on the selling
price of the initial 15%, and assuming the $1,020,000 is paid in full at time of
exercise.
The adjustments to the accompanying unaudited pro forma condensed
combined statements of operations for the year ended December 31, 2003 and the
nine months ended September 30, 2004 are described below:
(A) Record interest income on note receivable.
(B) Record additional minority interest.
(C) Record issuance of 1,700,000 shares of MicroCor common stock in
exchange for research and development expenses, estimated at $.50 per share.
(D) Remove 100% of MicroCor.
PF-10
INFORMATION INCORPORATED BY REFERENCE
The following documents are incorporated by reference in this Form 8-KA/1:
1. Form 10KSB of InMedica Development Corporation for the year ended December
31, 2003 and any subsequent amendment thereof.
2. Form 10QSB of InMedica Development Corporation for the quarter ended
September 30, 2004 and any subsequent amendment thereof.
EXHIBITS. None
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
INMEDICA DEVELOPMENT CORPORATION
(Registrant)
DATED: November 15, 2004 By: ______________________________
Ralph Henson, President