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                       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 September 30, 2001

                         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
 incorporation or organization)                           Identification Number)


                 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 September 30, 2001
           -----                               ---------------------------------
Common Stock, without par value                          4,760,902 shares

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<PAGE>
                                     PART I

ITEM 1. FINANCIAL STATEMENTS

                          SEDONA WORLDWIDE INCORPORATED
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                  December 31,   September 30,
                                                                      2000            2001
                                                                  -----------    ------------
                                                                                 (Unaudited)
<S>                                                               <C>            <C>
                                     ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                       $    64,283    $    14,689
  Accounts receivable                                                  18,876         37,895
  Accounts receivable from officers                                     9,932             --
  Inventories                                                         189,749        180,809
                                                                  -----------    -----------
      Total Current Assets                                            282,840        233,393

  Property and equipment, net                                          30,253         17,819
                                                                  -----------    -----------

      TOTAL ASSETS                                                $   313,093    $   251,212
                                                                  ===========    ===========

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
  Accounts payable                                                $    74,407    $   125,171
  Accrued expenses                                                     10,248          7,529
  Note payable - related party                                        200,000        188,379
                                                                  -----------    -----------
      Total Current Liabilities                                       284,655        321,079
                                                                  -----------    -----------
  Preferred stock, $10 par value; 5,000,000 shares authorized;
    none issued and outstanding                                            --             --
  Common stock, no par value; 50,000,000 shares authorized;
    4,760,902 shares issued and outstanding                         1,009,783      1,009,783
  Contributed capital                                               2,545,730      2,545,730
  Accumulated deficit                                              (3,527,075)    (3,625,380)
                                                                  -----------    -----------
      Total Stockholders' Equity (Deficit)                             28,438        (69,867)
                                                                  -----------    -----------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)        $   313,093    $   251,212
                                                                  ===========    ===========
</TABLE>

                  See notes to condensed financial statements

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

<TABLE>
<CAPTION>
                                                         Three months ended           Nine months ended
                                                             September 30,               September 30,
                                                      ------------------------    ------------------------
                                                         2000          2001          2000          2001
                                                      ----------    ----------    ----------    ----------
<S>                                                   <C>           <C>           <C>           <C>
Net sales                                                 65,510       129,696       269,769       414,422

Cost of sales                                             39,875        57,618       141,318       194,041
                                                      ----------    ----------    ----------    ----------
     Gross profit                                         25,635        72,078       128,451       220,381

Selling, general & administrative expense                 74,650       100,670       205,112       302,390
                                                      ----------    ----------    ----------    ----------
Loss from operations                                     (49,015)      (28,592)      (76,661)      (82,009)

Interest expense                                             719         5,296           719        16,296
                                                      ----------    ----------    ----------    ----------

     Net loss                                            (49,734)      (33,888)      (77,380)      (98,305)
                                                      ==========    ==========    ==========    ==========

Weighted average shares of common stock outstanding    4,675,800     4,760,902     4,471,273     4,760,902
                                                      ==========    ==========    ==========    ==========
Basic and diluted loss per share                      $    (0.01)   $    (0.01)   $    (0.02)   $    (0.02)
                                                      ==========    ==========    ==========    ==========
</TABLE>

                   See notes to condensed financial statements

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

                                                        Nine months ended
                                                           September 30,
                                                      --------------------
                                                        2000        2001
                                                      --------    --------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                            $(77,380)   $(98,305)
  Depreciation and amortization                         27,418      12,434
  Stock issued for compensation                          9,783          --
  Increase in accounts receivable                       (4,423)     (9,087)
  Decrease in inventory                                  4,366       8,940
  Increase in prepaid and other                        (33,974)         --
  Increase in accounts payable                          43,704      50,764
  Decrease in accrued expenses                         (11,661)     (2,719)
                                                      --------    --------
Net cash used in operating activities                  (42,167)    (37,973)
                                                      --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment                        --          --
                                                      --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net proceeds from note payable                        35,000          --
  Principal payments on debt                                --     (11,621)
                                                      --------    --------

Net cash provided by (used in) financing activities     35,000     (11,621)
                                                      --------    --------
DECREASE IN CASH                                        (7,167)    (49,594)

CASH AT BEGINNING OF PERIOD                              9,564      64,283
                                                      --------    --------
CASH AT END OF PERIOD                                 $  2,397    $ 14,689
                                                      ========    ========

                   See notes to condensed financial statements

                                       4
<PAGE>
NOTE 1. BUSINESS DESCRIPTION AND BASIS OF PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and the  instructions  to Form  10-QSB and Rule 10-01 of
Registration  S-X.  Accordingly,  they do not include all of the information and
notes  required  by  generally  accepted  accounting   principles  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 and nine month  periods ended  September 30, 2001 are not  necessarily
indicative of the results that may be expected for the year ending  December 31,
2001. The accompanying  financial  statements should be read in conjunction with
the Company's most recent audited financial statements.

NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS

     On  July  20,  2001,  the  Financial   Accounting  Standards  Board  issued
Statements  of  Financial  Accounting  Standards  ("SFAS")  No.  141,  "Business
Combinations"  and SFAS No. 142 "Goodwill and Other  Intangible  Assets".  These
pronouncements  significantly  change the accounting for business  combinations,
goodwill,    and    intangible    assets.    SFAS   No.   141   eliminates   the
pooling-of-interests  method of accounting for business combinations and further
clarifies the criteria to recognize  intangible assets separately from goodwill.
The  requirements  of SFAS No. 141 are  effective  for any business  combination
accounted for by the purchase method that is completed after June 30, 2001. This
statement will have no current impact on the Company's financial statements.

     SFAS No. 142 states goodwill and indefinite lived intangible  assets are no
longer amortized but are reviewed for impairment annually (or more frequently if
impairment indicators arise). Separable intangible assets that are not deemed to
have an indefinite  life will continue to be amortized  over their useful lives.
The  amortization  provisions  of SFAS No. 142 apply to goodwill and  intangible
assets  acquired  after June 30, 2001.  With respect to goodwill and  intangible
assets  acquired  prior to July 1, 2001,  companies  are  required  to adopt the
pronouncement  in their fiscal year beginning  after December 15, 2001.  Because
the Company does not have any goodwill or  intangible  assets with an indefinite
life, this new accounting  policy will not result in a cumulative  change to the
financial statements.

NOTE 3. BUSINESS CONDITION

     As shown in the accompanying financial statements,  the Company operated at
a net loss of  $33,888  and  $98,305  during  the  three and nine  months  ended
September 30, 2001. As of that date, the Company had a working  capital  deficit
of $87,686 and its accumulated  deficit was $3,625,380.  Those factors create an
uncertainty  about the  Company's  ability to continue as a going  concern.  The
financial  statements do not include any adjustments  that might be necessary if
the Company is unable to continue as a going concern.

     The Company's continuation as a going concern is dependent upon its ability
to generate  sufficient  cash flow to meet its obligations on a timely basis, to
obtain  financing  as may be  required,  and  ultimately  to  attain  profitable
operations.  In order to  achieve  profitability  it will be  necessary  for the
Company to  substantially  increase its revenue.  While there are presently some
opportunities  in progress  that may  generate  sufficient  additional  sales to
generate profits, there can be no assurance that such revenues will be generated
from current sources.  The Company may pursue debt or equity financing that will

                                       5
<PAGE>
enable it to invest in  marketing  and  distribution  geared  toward  generating
greater revenues. However, there can be no assurance that such financing will be
available or that the marketing and  distribution  efforts will be successful in
generating sufficient sales to achieve profitability.  ILX has provided $200,000
of additional financing that was originally due to ILX on November 30, 2000. The
Company  has agreed to an  extension  on the date that the loan is due to ILX in
return for securing the loan with the Company's  tangible assets.  The extension
states that the  principal  will be due on December 31,  2001.  All amounts bear
interest  equal to the  prime  rate  plus 3% per annum  payable  monthly.  As of
September 30, 2001, the interest rate was 9.0%.

NOTE 4. SUBSEQUENT EVENTS

The Company issued a definitive proxy statement on October 22, 2001, pursuant to
a special meeting of shareholders to be held on November 21, 2001.  Shareholders
will vote to approve a proposed stock-for-stock, tax-free reorganization between
the Company and The Greens of Las Vegas, Inc., a Nevada corporation.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     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.

OVERVIEW

     Sedona Worldwide  Incorporated was formed in 1992 to develop,  test, market
and distribute its own proprietary  "Sedona Spa" branded lines of face, hair and
body care products and apparels containing  ingredients or materials  indigenous
to, and  embodying the appeal of, the  Southwestern  region of the United States
and of Sedona, Arizona in particular. To date, the Company has generated revenue
primarily  through the sale of its face, hair and body care products to ILX. ILX
distributes  the  Company's  products  as in-room  amenities  at its resorts and
hotels,  as  premiums  (incentives)  to its  customers  for  attending  vacation
ownership  sales  presentations,  and for retail sales at its resort gift shops,
and at the Sedona Spa at Los Abrigados  Resort & Spa. The Company also generates
revenue from direct mail sales to consumers (many of whom were introduced to the
products as in-room amenities or premiums) and from limited retail  distribution
in specialty shops.

                                       6
<PAGE>
RESULTS OF OPERATIONS

     The  following  table  sets forth  certain  operating  information  for the
Company:

<TABLE>
<CAPTION>
                                             Three Months Ended       Nine Months Ended
                                                September 30,            September 30,
                                             ------------------       -----------------
                                              2000        2001         2000       2001
                                             ------      ------       ------     ------
<S>                                          <C>         <C>          <C>        <C>
Net sales:
Sales to ILX (1)                               72.6%       78.1%        63.0%      72.9%
Sales to customers other than ILX              27.4%       21.9%        37.0%      27.1%
                                             ------      ------       ------     ------
Total sales                                   100.0%      100.0%       100.0%     100.0%
                                             ======      ======       ======     ======

As a percentage of net sales:
Cost of sales                                  60.9%       44.4%        52.4%      46.8%
Contribution margin                            39.1%       55.6%        47.6%      53.2%
Sales, general and administrative expense     114.0%       77.6%        76.0%      73.0%
Net loss                                      (75.9%)     (26.1%)      (28.7%)    (23.7%)
</TABLE>

----------
(1)  Sales  made to ILX are made at lower  prices  (generally  cost plus a small
     mark up) than sales made to customers other than ILX.

COMPARISON  OF THE THREE AND NINE MONTHS ENDED  SEPTEMBER  30, 2000 TO THE THREE
AND NINE MONTHS ENDED SEPTEMBER 30, 2001

     Net sales  increased  97.9% or $64,186 to $129,696  for the  quarter  ended
September 30, 2001 from $65,510 for the same period in 2000 and increased  53.6%
or $144,653  to  $414,422  for the nine  months  ended  September  30, 2001 from
$269,769 for the same period in 2000.

     Cost of sales as a  percentage  of sales  decreased  to 44.4% for the three
months  ended  September  30,  2001 from  60.9% for the same  period in 2000 and
decreased to 46.8% for the nine months ended  September  30, 2001 from 52.4% for
the same period in 2000 because of a lower  percentage  of sales to ILX resorts,
which have a lower profit margin. Product costs were also reduced as a result of
discounts achieved through higher volume purchasing.

     Sales,  general and  administrative  expenses increased $26,020 to $100,670
for the three months ended  September  30, 2001 from $74,650 for the same period
in 2000 and  increased  $97,278 to $302,390 for the nine months ended  September
30, 2001 from $205,112 for the same period in 2000,  due to increased  salaries,
advertising and trade shows.

     Interest expense was $5,296 and $16,296 for the three and nine months ended
September 30, 2001 from $719 for the same periods in 2000, respectively.

     The Company has  recorded a valuation  allowance  equal to its deferred tax
asset at  September  30,  2001.  Under  SFAS No.  109,  deferred  tax assets and
liabilities are recognized for the estimated future tax effects  attributable to
differences between the amounts of the Company's existing assets and liabilities
and their  respective  tax basis.  Because  the  Company  has not yet  generated
taxable  income,  and  therefore   sufficient   evidence  does  not  exist  that
differences in financial and taxable income and net operating loss carryforwards
will be utilized to reduce future  income taxes,  no income tax benefit has been
recorded for the three and nine month periods ended September 30, 2001.

                                       7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

SOURCES OF CASH

     The Company  generates cash primarily from the sale of its own  proprietary
"Sedona Spa"  branded  lines of face,  hair and body care  products and apparels
containing  ingredients or materials indigenous to, and embodying the appeal of,
the  Southwestern  region  of the  United  States  and  of  Sedona,  Arizona  in
particular.  During the nine month period ended September 30, 2000, cash used in
operations was $42,167.  During the nine month period ended  September 30, 2001,
cash used in operations  was equal to $37,973.  Historically  the Company's cash
flows from product sales have not been  sufficient to fund its  operations,  and
shortfalls have been funded by ILX. ILX has funded the Company's cash shortfalls
since inception. At the time of the Spin-Off, the Company was indebted to ILX in
an  amount in  excess  of  $2,545,000,  which  ILX  contributed  to  capital  in
conjunction  with the  Spin-Off.  ILX has agreed to provide  up to  $200,000  of
additional  financing following  completion of the Spin-Off through November 30,
2000. All amounts  borrowed by the Company will bear interest equal to the prime
rate plus 3% per annum, with interest payable monthly. The company requested and
was granted an  extension  from the  original  due date of December  31, 2000 to
December  31,  2001.  Without  such a  commitment,  or other  sources of working
capital  financing  which at present do not exist,  the  Company's  current cash
flows  will be  insufficient  to  meet  its  liquidity,  operating  and  capital
requirements.  The Company currently has no credit facility with a bank or other
financial  institution.  The Company will attempt to obtain a credit facility to
address its cash flow needs;  however,  there can be no assurance  that any such
financing  will be  available  if  needed,  or,  if  available  will be on terms
acceptable to the Company.

     The Company anticipates that its expenses will increase in the future as it
attempts to expand its business by acquiring new products and  increasing  sales
and marketing efforts and other  operations.  The Company expects to continue to
incur losses until such time, if ever, as it is able to sell a sufficient volume
of products at prices that  provide  adequate  gross  profit to cover  operating
costs.  The Company's  working  capital  requirements  will depend upon numerous
factors,  including payment cycles for its shipped products, credit arrangements
with suppliers,  the scale-up of its sales and marketing resources,  acquisition
of new products and the terms upon which such products are acquired, competitive
factors, and marketing activities.  There can be no assurance when, if ever, the
Company will be able to generate  sufficient  revenues  from its  operations  to
offset its expenses or to secure additional capital commitments.  If the Company
is unable  to  generate  more  cash  flows  than it does  currently,  it will be
insolvent and may have to discontinue its business operations.

USES OF CASH

     Investing  activities  typically  reflect  a net use of cash for  equipment
purchases.  There were no purchases of property  and  equipment  during the nine
months ended September 30, 2000 and 2001.

                                       8
<PAGE>
CREDIT FACILITIES AND CAPITAL

     The Company has never accessed commercial financing and to date, all of its
working  capital needs have been  financed by operations  and advances from ILX.
However,  following  the  Spin-Off,  ILX does not  intend to fund the  Company's
future cash  shortfalls,  except as follows:  In October 2000,  ILX has provided
$200,000 of working capital  financing to the Company.  All amounts  borrowed by
the Company under this agreement will bear interest equal to the prime rate plus
3% per annum,  with interest  payable  monthly,  and the entire unpaid principal
amount due on December  31, 2001.  As a result,  the Company will need to secure
alternative  financing  sources if it continues to operate at a loss or, even if
profitable,  it pursues a growth  strategy.  There can be no assurance that such
resources  will be available to the Company when needed and on favorable  terms.
In  addition,  any  commercial  financing  obtained is likely to impose  certain
financial  and  other  restrictive  covenants  upon the  Company  and  result in
increased  interest  expense.  Although  the  Company  anticipates  the need for
additional  financing,  it does not  presently  have any  plans to  engage in an
equity or debt financing transaction.

SEASONALITY

     Presently the Company's revenues are only minimally seasonal, with slightly
increased  sales during the second and third  quarters and December,  reflecting
seasonality in resort guests of its major customer,  ILX. If the Company is able
to expand its customer  base and  marketing  and  distribution  methods,  it may
experience  different  seasonality  dynamics that may cause operating results to
fluctuate.

CONCENTRATION

     The  substantial  majority  of the  Company's  revenues  to date  have been
generated from ILX.  There are no long-term  commitments to purchase by ILX and,
in the event ILX  ceased to be a  customer  of the  Company,  revenues  would be
significantly  impacted.  If ILX remains a customer,  revenues  are  expected to
increase as ILX adds more resorts  (which utilize  in-room  amenities) and sales
offices  (which  offer  premiums to touring  guests),  although  there can be no
assurances in this regard.

INFLATION

     Inflation  and  changing  prices  have  not had a  material  impact  on the
Company's revenues, income or loss from operations or net income or loss for the
three and nine months ended September 30, 2000 or 2001.

                                       9
<PAGE>
                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

     None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     Information  in  response  to  this  Item  is set  forth  in the  Company's
Definitive Proxy Statement relating to the Special Meeting of Shareholders to be
held in November 2001 and is incorporated herein by reference.

ITEM 5. OTHER INFORMATION

     None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     None

                                       10
<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/ Patrick J. McGroder III
                          --------------------------------------------
                          Patrick J. McGroder III
                          Chairman of the Board


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


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

Date:  As of November 14, 2001

                                       11