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 June 30, 2002               Commission File Number 0-25025


                          SEDONA WORLDWIDE INCORPORATED
                         (A Development Stage Company)
             (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 June 30, 2002
            -----                                   ----------------------------
Common Stock, without par value                           5,760,902 shares
<PAGE>
                                     PART I

ITEM I. FINANCIAL STATEMENTS

                          SEDONA WORLDWIDE INCORPORATED
                            CONDENSED BALANCE SHEETS
                         (A Development Stage Company)
                                   (Unaudited)
                                                                     June 30,
                                                                       2002
                                                                    -----------

                                     ASSETS

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

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

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

  Accounts Payable                                                  $     3,229
                                                                    -----------

      Total Current Liabilities                                           3,229
                                                                    -----------

  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                                                (3,638,742)
                                                                    -----------

      Total Stockholders' Equity (Deficit)                               (3,229)
                                                                    -----------
        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)        $        --
                                                                    ===========

                   See notes to condensed financial statements

                                        2
<PAGE>
                          SEDONA WORLDWIDE INCORPORATED
                       CONDENSED STATEMENTS OF OPERATIONS
                         (A Development Stage Company)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                        For the Period Ended
                                                                        January 2, 2002 (Date
                                                  Three Months Ended     (of Reorganization)
                                                     June 30, 2002      Through June 30, 2002
                                                      -----------       ---------------------
<S>                                                   <C>                    <C>
Revenues                                              $        --            $        --
                                                      -----------            -----------

Expenses:                                                      --                     --
                                                      -----------            -----------

General and administrative                                  3,229                  3,229
                                                      -----------            -----------

Total Expenses                                              3,229                  3,229
                                                      -----------            -----------

     Net loss                                              (3,229)                (3,229)
                                                      ===========            ===========

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

Basic and diluted loss per share                      $      0.00            $      0.00
                                                      ===========            ===========
</TABLE>

                   See notes to condensed financial statements

                                        3
<PAGE>
                          SEDONA WORLDWIDE INCORPORATED
                       CONDENSED STATEMENTS OF CASH FLOWS
                         (A Development Stage Company)
                                   (UNAUDITED)

                                                          For the Period Ended
                                                             January 2, 2002
                                                        (Date of Reorganization)
                                                                 through
                                                              June 30, 2002
                                                              -------------
Cash flows from operating activities:

     Net Loss                                                   $  (3,229)
                                                                ---------
Change in assets and liabilities:

     Increase in accounts payable                                   3,229
                                                                ---------

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
                         (A Development Stage Company)

                     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 and development  stage
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 six month period
ended June 30, 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>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

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.

PLAN OF OPERATION

     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.

     If the  reorganization is successful,  the Company will construct a putting
facility in Las Vegas. The Company will need to complete the  Reorganization and
raise  additional  funds in  order to  proceed  with the  construction  and meet
ongoing working capital requirements over the next twelve months.

                                    PART II.

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

     Exhibit 99.1 -  CERTIFICATION  PURSUANT TO 18 U.S.C.  ss. 1350,  AS ADOPTED
     PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.

                                        6
<PAGE>
                                   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-QSB 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/ Margaret M. Eardley
                       -----------------------------------
                               Margaret M. Eardley
                         Acting Chief Financial Officer

Date: As of August 8, 2002

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