SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For The Quarter Ended March 31, 2002              Commission File Number 0-25025


                          SEDONA WORLDWIDE INCORPORATED
             (Exact name of registrant as specified in its charter)


             ARIZONA                                     86-0718104
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporation or organization)


                 3840 North 16th Street, Phoenix, Arizona 85016
                    (Address of principal executive offices)


         Registrant's telephone number, including area code 602-263-9600


              Former name, former address, and former fiscal year,
                         if changed since last report.


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities 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 [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
stock, as of the latest practicable date.

           Class                                   Outstanding at March 31, 2002
           -----                                   -----------------------------
Common Stock, without par value                          5,760,902 shares
<PAGE>
                                     PART I

ITEM I. FINANCIAL STATEMENTS

                          SEDONA WORLDWIDE INCORPORATED
                            CONDENSED BALANCE SHEETS
                                   (Unaudited)

                                                                  March 31, 2002
                                                                  --------------
                                     ASSETS

CURRENT ASSETS                                                     $        --
                                                                   ===========

     TOTAL ASSETS                                                  $        --
                                                                   ===========

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES                                                $        --
                                                                   -----------

     Total Current Liabilities                                              --
                                                                   -----------

  Preferred stock, $10 par value; 5,000,000 shares
    authorized; none issued and outstanding                                 --
  Common stock, no par value; 50,000,000 shares
    authorized; 5,760,902 shares issued and outstanding              1,089,783
  Additional paid-in capital                                         2,545,730
  Accumulated deficit                                               (3,635,513)
                                                                   -----------

     Total Stockholders' Equity (Deficit)                                   --
                                                                   -----------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
      (DEFICIT)                                                    $        --
                                                                   ===========

                   See notes to condensed financial statements

                                        2
<PAGE>
                          SEDONA WORLDWIDE INCORPORATED
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                                                          For the Period Ended
                                                             January 2, 2002
                                                        (Date of Reorganization)
                                                         through March 31, 2002
                                                         ----------------------
Revenues                                                      $          --
                                                              -------------
Expenses                                                                 --
                                                              -------------
     Net income/(loss)                                                   --
                                                              =============

Weighted average shares of common stock outstanding               5,760,902

Basic and diluted loss per share                              $        0.00
                                                              =============

                  See notes to condensed financial statements

                                       3
<PAGE>
                          SEDONA WORLDWIDE INCORPORATED
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                          For the Period Ended
                                                             January 2, 2002
                                                        (Date of Reorganization)
                                                         through March 31, 2002
                                                         ----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:

    Net loss                                                   $        --
                                                               -----------

Net cash provided by (used) in operating activities                     --
                                                               -----------

CASH FLOWS FROM INVESTING ACTIVITIES:                                   --

CASH FLOWS FROM FINANCING ACTIVITIES:                                   --

CHANGE IN CASH                                                          --

CASH AT BEGINNING OF PERIOD                                             --
                                                               -----------

CASH AT END OF PERIOD                                          $        --
                                                               ===========

                  See notes to condensed financial statements

                                       4
<PAGE>
                          SEDONA WORLDWIDE INCORPORATED

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1. BUSINESS DESCRIPTION AND BASIS OF PRESENTATION

     Sedona  Worldwide  Incorporated,  an  Arizona  corporation  ("SWI"  or  the
"Company"),  was  incorporated  in 1992  under  the  name  Red  Rock  Collection
Incorporated.  The  Company  was a  majority-owned  subsidiary  of  ILX  Resorts
Incorporated,  an Arizona  corporation ("ILX") until December 31, 1999, when ILX
effected a distribution of all of the shares of the Company's Common Stock which
ILX held to the ILX  shareholders  of record as of December 21,  1999,  on a pro
rata basis (the  "Spin-Off").  As a result of the Spin-Off,  ILX's  shareholders
became owners of, in the  aggregate,  80% of the Company's  outstanding  capital
stock.  ILX  registered  the Company's  Common Stock  pursuant to a Registration
Statement  on Form 10-SB on a voluntary  basis,  in order to effect the Spin-Off
without the need to register the  distribution of the Company's  Common Stock to
ILX's shareholders under the Securities Act of 1933, as amended (the "Securities
Act"). In January 2000, ILX distributed an Information Statement, which contains
substantially  the same kind of  information  as is  typically  found in a Proxy
Statement,  to ILX  shareholders.  The Information  Statement  disclosed certain
material  information  about the  Company  and the shares of Common  Stock to be
distributed  to  ILX  shareholders  in  the  Spin-Off.  On  November  21,  2001,
shareholders approved a plan to execute a tax-free reorganization of the Company
that, if executed,  would be accounted for as a reverse acquisition.  On January
2,  2002  the  Company  entered  into a  General  Bill of Sale,  Assignment  and
Assumption  Agreement  with  ILX  whereby  ILX  assumed  all of the  assets  and
liabilities  of the  Company,  leaving  a  "shell  company"  available  for  the
reorganization discussed above.

     The Company is accounted for as a newly  reorganized  company on January 2,
2002  with  no  prior  history.   The  prior   operations  of  Sedona  Worldwide
Incorporated are not presented due to the reorganization of the Company.

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance  with  generally  accepted  accounting  principles in the
United States of America for interim financial  information and the instructions
to Form  10-QSB  and Rule  10-01 of  Regulation  S-X.  Accordingly,  they do not
include  all of  the  information  and  notes  required  by  generally  accepted
accounting  principles  in the United  States of America for complete  financial
statements. In the opinion of management,  all adjustments and reclassifications
considered  necessary for a fair and comparable  presentation have been included
and are of a normal  recurring  nature.  Operating  results  for the three month
period ended March 31, 2002 are not  necessarily  indicative of the results that
may be  expected  for the  year  ending  December  31,  2002.  The  accompanying
financial  statements  should be read in  conjunction  with the  Company's  most
recent audited financial statements.

                                       5
<PAGE>
                         SEDONA WORLDWIDE INCORPORATED

                                     PART II

     THE FOLLOWING  DISCUSSION OF THE COMPANY'S  FINANCIAL CONDITION AND RESULTS
OF OPERATIONS  INCLUDES CERTAIN  FORWARD-LOOKING  STATEMENTS.  WHEN USED IN THIS
FORM 10-QSB,  THE WORDS "ESTIMATE,"  "PROJECTION,"  "INTEND,"  "ANTICIPATES" AND
SIMILAR TERMS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS THAT RELATE TO
THE COMPANY'S  FUTURE  PERFORMANCE.  SUCH  STATEMENTS ARE SUBJECT TO SUBSTANTIAL
UNCERTAINTY.   READERS  ARE  CAUTIONED  NOT  TO  PLACE  UNDUE  RELIANCE  ON  THE
FORWARD-LOOKING STATEMENTS SET FORTH BELOW. THE COMPANY UNDERTAKES NO OBLIGATION
TO PUBLICLY  UPDATE OR REVISE ANY OF THE  FORWARD-LOOKING  STATEMENTS  CONTAINED
HEREIN.

RESULTS OF OPERATIONS

     On November  21, 2001,  shareholders  approved a plan to execute a tax-free
reorganization  of the Company  that,  if executed,  would be accounted for as a
reverse acquisition.  On January 2, 2002 the Company entered into a General Bill
of Sale, Assignment and Assumption Agreement with ILX whereby ILX assumed all of
the assets and liabilities of the Company,  leaving a "shell company"  available
for the reorganization discussed above.

ITEM I. LEGAL PROCEEDINGS

     The  Company  is not  currently  the  subject  of any  pending  or,  to its
     knowledge, threatened legal claims.

ITEM II. CHANGES IN SECURITIES AND USE OF PROCEEDS

     None

ITEM III. DEFAULTS UPON SENIOR SECURITIES

     None

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

     None

ITEM V. OTHER INFORMATION

     None

ITEM VI. EXHIBITS AND REPORTS ON FORM 8-K

     None

                                       6
<PAGE>
                         SEDONA WORLDWIDE INCORPORATED

                                   SIGNATURES


     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended,  the Registrant has duly caused its quarterly report on Form 10-Q to be
signed on its behalf by the undersigned thereunto duly authorized.



                          SEDONA WORLDWIDE INCORPORATED
                                  (Registrant)


                               /s/ Mia A. Martori
                        ---------------------------------
                                 Mia A. Martori
                        Director, President and Treasurer



                               /s/ Viki J. Nelson
                        ---------------------------------
                               Corporate Secretary


Date: As of March 31, 2002

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