SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

         ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JUNE 30, 2002.

                         Commission File Number 0-33067

                                    DIGICORP
           (Name of small business issuer as specified in its charter)

                 Utah                              87-0398271
    (State or other jurisdiction of            (I.R.S. Employer
     incorporation or organization)             Identification Number)

                     1206 West South Jordan Parkway, Unit B
                          South Jordan, Utah 84095-4551
                    (Address of principal executive offices)

                                 (801) 566-3000
                (Issuer's telephone number, including area code)

        Securities registered pursuant to Section 12(b) of the Act: None

    Securities registered pursuant to Section 12(g) of the Act: Common Stock
                           (Par Value $.001 Per Share)

Indicate by check mark whether the issuer (1) has filed all reports  required to
be filed by  Section 13 or 15(d) of the  Exchange  Act during the past 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 by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment to
this Form 10-KSB. X

There  presently is no trading  market for the common  stock of the Issuer.  The
issuer's  revenues for its most recent  fiscal year were $0 since the Company is
deemed a development stage company.

As of August 31, 2002,  the issuer had 9,042,857  shares of its $0.001 par value
common stock issued and outstanding.

Transitional Small Business Issuer Disclosure Format Yes ____ No X

<PAGE>


                                     PART I

ITEM 1.  BUSINESS.

DigiCorp (the  "Company"),  was  incorporated on July 19, 1983 under the laws of
the State of Utah for the purpose of developing and marketing  computer software
programs.  From  1983 to 1995,  the  Company's  sales and  investments  had been
attributable to the sale of computer  software and  investments  related to oil,
gas and mining.

On June 30, 1995, the Company became a development  stage  enterprise as defined
in SFAS No. 7 (See Notes to Company's  financials)  when it sold its investments
and changed its business plan.  Since June 30, 1995, the Company has been in the
developmental  stage and has had no  operations  other than  issuing  shares for
financing the preparation of financial  statements and for preparing filings for
the Securities and Exchange Commission.

The Company's  business plan is to attempt to locate and negotiate  with another
company  for the purpose of a business  combination  of the two  companies.  The
combination will normally take the form of a merger, stock-for-stock exchange or
stock-for-assets exchange. In most instances the company combining with DigiCorp
will wish to structure the business combination to be within the definition of a
tax-free reorganization under Section 351 or Section 368 of the Internal Revenue
Code of 1986, as amended.  No  assurances  can be given that the Company will be
successful  in  locating  or  negotiating  with  another  company  in a business
combination.

The  Company  has been  formed to  provide a method  for a foreign  or  domestic
private company to become a reporting ("public") company qualified to trade on a
secondary market in the United States.

Bankruptcy, receivership or similar proceedings

Neither  the  Company  nor  any of its  predecessors  has  been  subject  to any
bankruptcy, receivership or similar proceeding.

Benefits Achieved by Combining With Another Company

There are certain  perceived  benefits to being a reporting company with a class
of  publicly-traded  securities.  Some of these  benefits are the ability to use
registered  securities to make  acquisitions of assets or businesses,  increased
visibility  in the  financial  community,  the  facilitation  of borrowing  from
financial  institutions,  improved  trading  efficiency  of a  company's  stock,
shareholder  liquidity,  greater  ease in  raising  additional  capital,  market
valuation of stock options for compensating key employees and enhancement of the
corporate image.

<PAGE>


Business Entities That May Be Interested in a Business Combination with DigiCorp

A business  entity,  if any,  which may be interested in a business  combination
with DigiCorp may include the following:

1. A company that desires to go public for the purpose of having its  securities
used for the acquisition of assets or other businesses;

2. A company  that is unable to find an  underwriter  for its  securities  or is
unable to find an underwriter to sell its securities on terms  acceptable to the
company;

3. A company  that  desires to become  public  with less  dilution of its common
stock than would occur upon an underwriting;

4. A company,  that believes it can obtain investment  capital on more favorable
terms after it has become public;

5. A foreign  company that may desire to enter the equity  markets of the United
States;

6. A special  situation  company,  such as a company  seeking a public market to
satisfy redemption requirements under a qualified Employee Stock Option Plan;

7. A company that  desires to become  public in less time than would be required
for a registration statement.

8. A company that may desire any other benefits  associated with being a company
with publicly trading securities.

A business combination will normally involve the transfer to the company that is
being combined with the majority of the issued and  outstanding  common stock of
DigiCorp,  and the  substitution by the combining  company of its own management
and board of directors.

No  assurances  can be given  that  the  Company  will be able to  enter  into a
business combination, or as to the terms of a business combination, or as to the
nature of the company that will be combining with DigiCorp.

<PAGE>

The Company elected to file its Form 10-SB registration statement last year on a
voluntary  basis in order to become a  reporting  company  under the  Securities
Exchange Act of 1934.

 RISK FACTORS

The  Company's  business  is subject to numerous  risk  factors,  including  the
following:

Minimal  Operating  History  and  Very  Few  Assets.  The  Company  has not been
operating for several years and has no significant  assets. The Company will, in
all likelihood,  sustain operating expenses without  corresponding  revenues, at
least until the consummation of a business combination.  As a result the Company
will be operating at a loss until at least a business  combination  with another
company can be  completed.  There is no assurance  that the Company can identify
another company for a business combination nor that the business combination can
be completed.

Speculative  Nature of the  Company's  Business.  The  success of the  Company's
proposed  plan of  operation  will depend to a great  extent on the  operations,
financial  condition and  management of the target  company to be combined with.
While  management  will  prefer  business   combinations  with  entities  having
established operating histories, there can be no assurance that the Company will
be successful in locating  candidates  meeting such  criteria.  In the event the
Company  completes a business  combination,  of which there can be no assurance,
the success of the Company's operations will be dependent upon management of the
target company and numerous other factors beyond the Company's control.

Competition for Business Combinations. The Company is and will continue to be an
insignificant   participant  in  the  business  of  seeking   mergers  with  and
acquisitions   of  business   entities.   A  large  number  of  established  and
well-financed  entities,  including venture capital firms, are active in mergers
and  acquisitions  of  companies  which  may be  merger  or  acquisition  target
candidates for the Company.  Nearly all such entities have significantly greater
financial  resources,  technical expertise and managerial  capabilities than the
Company and, consequently,  the Company will be at a competitive disadvantage in
identifying  possible  business  opportunities  and  successfully  completing  a
business  combination.  Moreover,  the Company will also  compete with  numerous
other small public companies in seeking merger or acquisition candidates.

Impracticability  of a Thorough  Investigation.  The Company's limited funds and
the lack of full-time  management will likely make it impracticable to conduct a
complete and  exhaustive  investigation  and analysis of a target  company.  The
decision to enter into a business  combination,  therefore,  will likely be made
without detailed feasibility studies,  independent  analysis,  market surveys or
similar  information which, if the Company had more funds available to it, would
be desirable.  The Company will however,  require audited  financial  statements
from a company it intends to combine with.

<PAGE>


No Agreement for Business  Combination or Other Transaction.  The Company has no
arrangement,  agreement or  understanding  with respect to engaging in a merger,
joint venture or  acquisition  of, a private or public  entity.  There can be no
assurance the Company will be successful in identifying and evaluating  suitable
business  opportunities or in concluding a business combination.  Management has
not identified any particular  industry or specific  business within an industry
for evaluation by the Company. There is no assurance the Company will be able to
negotiate a business combination on terms favorable to the Company.

No  Standards  for  Business  Combination.  The  Company has not  established  a
specific length of operating  history or a specified level of earnings,  assets,
net worth or other criteria which it will require a target business  opportunity
to have achieved. Accordingly, the Company may enter into a business combination
with another business having no significant operating history. In addition,  the
target  company  may have had no  history of  earnings,  have  limited  assets a
negative net worth or other characteristics that are associated with development
stage companies.

Continued  Management  Control,  Limited  Time  Availability.  While  seeking  a
business combination, none of the management will be devoting their full time to
such an enterprise.  None of the officers have entered into a written employment
agreement  with the Company  and none is  expected  to do so in the  foreseeable
future.  The Company does not have key man life insurance on any of its officers
or  directors.   Notwithstanding   the  combined  limited  experience  and  time
commitment of  management,  loss of the services of any of the  management  team
would  adversely  affect  the  opportunity  of a  business  combination  for the
Company. See "Directors, and Executive Officers".

Conflicts  of  Interest - General.  Officers  and  directors  of the Company may
participate in business  ventures which could be deemed to compete directly with
the Company.  Additional  conflicts of interest and non-arms length transactions
may also  arise in the event the  officers  or  directors  are  involved  in the
management  of any firm with which the Company  transacts  business.  Management
does not plan to seek a merger  with,  or  acquisition  of,  any entity in which
management serves as officers,  directors or partners, or in which they or their
family members own or hold any direct or indirect ownership interest.

Affiliation With Other  Development  Stage Companies.  Officers and Directors of
the Company may be affiliated  with other  development  stage  companies such as
DigiCorp.  In the event that  management  identifies a candidate  for a business
combination, and the candidate expresses no preference for a particular company,
management  may make a  business  combination  with  another  development  stage
company that it is associated with. As a result,  there can be no assurance that
there  will be  sufficient  business  opportunities  to  consummate  a  business
combination for DigiCorp.

Reporting Requirements May Delay or Preclude Acquisition.  Sections 13 and 15(d)
of the Securities  Exchange Act of 1934 require  reporting  companies to provide
certain   information  about  significant   acquisitions,   including  certified
financial  statements  for the company  acquired,  covering  one,  two, or three
years,  depending  on  the  relative  size  of the  acquisition.  The  time  and
additional  costs that may be incurred by some target  entities to prepare  such
statements may significantly  delay or essentially  preclude  consummation of an
otherwise desirable  acquisition by the Company.  Acquisition  prospects that do
not  have or are  unable  to  obtain  the  required  audited  statements  may be
inappropriate  for  acquisition  so long as the  reporting  requirements  of the
Securities Exchange Act of 1934 are applicable.

<PAGE>


Lack of Diversification.  The Company's proposed operations, even if successful,
will in all likelihood result in the Company engaging in a business  combination
with another company.  Consequently,  the Company's activities may be limited to
those business  opportunities  engaged in by the target  company.  The Company's
inability to  diversify  its  activities  into a number of areas may subject the
Company to economic  fluctuations  within a particular  business or industry and
therefore increase the risks associated with the operations.

International  Business Risk. If the Company enters into a business  combination
with a foreign  company,  the  Company  will be  subject  to risks  inherent  in
business  operations  outside of the United  States.  Such  risks  include,  for
example, currency fluctuations,  regulatory problems, punitive tariffs, unstable
local tax policies, trade embargoes,  risks related to shipment of raw materials
and  finished   goods  across   national   borders  and  cultural  and  language
differences.  Foreign  economies may differ  favorably or  unfavorably  from the
United States  economy in growth of gross national  product,  rate of inflation,
market   development,   rate  of  savings  and  capital   investment,   resource
self-sufficiency and balance of payments positions, and in other respects.

Probable Change in Control and Management.  A business combination involving the
issuance of the  Company's  common  stock  will,  in all  likelihood,  result in
shareholders  of a private  company  obtaining  a  controlling  interest  in the
Company.  Any such business combination may require management of the Company to
sell or transfer all or a portion of the Company's common stock held by them, or
resign as members of the Board of Directors of the Company. The resulting change
in  control of the  Company  could  result in removal of one or all the  present
officers  and  directors  of the Company  and a  corresponding  reduction  in or
elimination of their participation in the future affairs of the Company.

Dilution of Present Shareholders After Business Combination.  The Company's plan
for a business combination would be with another private company that would most
likely result in the private company's  shareholders  owning a majority interest
of the outstanding  shares of the combined  company.  As a result the percentage
ownership of the present shareholders in DigiCorp would be substantially diluted
if the Company is successful in completing a business combination.

Taxation.  Federal and state tax consequences will, in all likelihood,  be major
considerations in any business combination undertaken by the Company. Currently,
such  transactions  may be structured  so as to result in tax-free  treatment to
both  companies,  pursuant  to various  federal  and state tax  provisions.  The
Company  intends to  structure  any business  combination  so as to minimize the
federal and state tax  consequences  to both the Company and the target  entity;
however,  there can be no assurance that such business combination will meet the
statutory  requirements  of a tax-free  reorganization  or that the parties will
obtain the intended  tax-free  treatment  upon a transfer of stock or assets.  A
non-qualifying reorganization could result in the imposition of both federal and
state taxes which may have an adverse effect on both parties to the transaction.

<PAGE>


PRINCIPAL PRODUCTS AND SERVICES

The  primary  activities  by the  Company  are to seek out and  investigate  the
acquisition  of any viable  business  opportunity  by purchase  and exchange for
securities  of the Company for  ownership in the target  company  resulting in a
business combination.

Distribution Methods of the Products or Services.

Management will seek out and investigate  business  opportunities  through every
reasonably  available  fashion,  including  personal  contacts,   professionals,
securities broker-dealers,  venture capital personnel,  members of the financial
community and others who may present unsolicited proposals; the Company may also
advertise its  availability as a vehicle to bring a company to the public market
through a "reverse"  reorganization  or merger.  The Company  presently does not
have any  company as a target for a business  combination  nor does the  Company
presently have any products or services.

COMPETITIVE BUSINESS CONDITIONS

Competitors  include thousands of other  publicly-held  companies whose business
operations have proven unsuccessful,  and whose only viable business opportunity
is that of providing a publicly-held  vehicle through which a private entity may
have access to the public capital markets. There is no reasonable way to predict
the  competitive  position  of  the  Company  or  any  other  entity  under  the
circumstances;  however, the Company,  will be at a competitive  disadvantage in
competing  with  companies  that  have  recently  completed  an  initial  public
offering,  have significant  cash resources and have recent operating  histories
when  compared  with the  complete  lack of any  substantive  operations  by the
Company for the past several years.

Sources and Availability of Raw Materials and Names of Principal Suppliers.

Since the Company does not have any  products or services it does not  presently
require any raw materials and  therefore,  has no dependence on any one supplier
or customers to purchase products.

<PAGE>


Patents, Trademarks,  Licenses, Franchises,  Concessions,  Royalty Agreements or
Labor Contracts.

The  Company  does not  have  any  patents,  trademarks,  licenses,  franchises,
concessions,  royalty agreements or labor contracts. In addition, the Company is
not presently involved in any research or development.

Need for any Governmental Approval of Principal Products or Services.

The Company  currently  produces no products or services,  therefore,  it is not
presently subject to any governmental regulation in this regard. However, in the
event that the Company  engages in a merger or acquisition  transaction  with an
entity  that  engages  in  such  activities,  it  will  become  subject  to  all
governmental  approval  requirements  to which the merged or acquired  entity is
subject.

Effect of Existing or Probable Governmental Regulations on Business.

The  integrated  disclosure  system for small  business  issuers  adopted by the
Securities and Exchange  Commission in Release No.  34-30968 and effective as of
August  13,  1992,   substantially   modified  the   information  and  financial
requirements  of a "Small  Business  Issuer,"  defined to be an issuer  that has
revenues  of less than $25  million;  is a U.S. or  Canadian  issuer;  is not an
investment  company;  and if a majority-owned  subsidiary,  the parent is also a
small  business  issuer;  provided,  however,  an entity is not a small business
issuer if it has a public  float (the  aggregate  market  value of the  issuer's
outstanding securities held by non-affiliates) of $25 million or more.

The Securities and Exchange  Commission,  state  securities  commissions and the
North  American  Securities  Administrators  Association,  Inc.  ("NASAA")  have
expressed an interest in adopting policies that will streamline the registration
process  and make it easier for a small  business  issuer to have  access to the
public capital markets.

Cost and Effects of Compliance with Environmental Laws.

Presently  environmental  laws  are  not  applicable  to the  Company,  however,
environmental  laws,  rules and  regulations  may have an adverse  effect on any
business   venture   viewed  by  the  Company  as  an  attractive   acquisition,
reorganization  or merger  candidate,  and these  factors may further  limit the
number  of  potential  candidates  available  to the  Company  for  acquisition,
reorganization or merger.

Number of Employees.

The Company  presently  has no full-time  employees,  however,  management  will
devote  whatever  time  they  deem  necessary  to  evaluate  different  business
opportunities for a business combination. Management of the Company also expects
to use  consultants,  attorneys  and  accountants  as  necessary,  and  does not
anticipate a need to engage any full-time employees so long as it is seeking and
evaluating  companies  for a business  combination.  The need for  employees and
their  availability will be addressed in connection with the decision whether or
not to acquire or participate in a specific business combination.

<PAGE>


ITEM 2.  DESCRIPTION OF PROPERTY.

The  executive  and  business  office of the Company  consists  of office  space
located at 1206 W. South Jordan Parkway,  Unit B, South Jordan,  Utah 84095. The
office space is owned by Gregg B. Colton, Don J. Colton and John O. Anderson and
is leased to Pioneer  Oil and Gas.  Currently,  the  Company is not  charged for
using the office  space.  The Company  believes this office space is adequate to
serve its needs until such time as a business  combination  occurs.  The Company
also  expects  to be able to  utilize  this  office  space  until such time as a
business  combination is consummated.  The Company has no other property that it
uses or owns.

ITEM 3.           LEGAL PROCEEDINGS.

The Company is not a party to any legal proceedings, nor is the Company aware of
any disputes that may result in legal proceedings.

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

During the fourth quarter of the fiscal year covered by this report,  no matters
were submitted to a vote of security holders.

                                     PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED MATTERS

There is  presently  no current  market  for the  Company's  securities  and the
Company does not intend to undertake  any efforts at the present time to cause a
market to develop.  However, the Company could pursue such efforts in the future
if having a market would assist in its business plan.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Plan of Operation

The Company is presently a  development  stage company  conducting  virtually no
business operation, other than its efforts to effect a business combination with
a target  business  which  the  Company  considers  to have  significant  growth
potential.  Currently,  the Company does not engage in any  operation or receive
any cash flow.  The Company  will carry out its plan of  business  as  discussed
above. See "Description of Business".  The Company cannot predict to what extent
its liquidity and capital resources will be diminished prior to the consummation
of a business combination or whether its capital will be further depleted by the
operating losses (if any) of the target business combining with the Company.

<PAGE>

During its fiscal  year  ending  June 30,  2002,  the  Company  expended  $2,808
primarily in accounting  fees for preparing  financial  statements and review of
its  quarterly  and annual  filings with the SEC. The Company  believes  that it
presently has sufficient cash to cover the professional fees other expenses that
the Company  expects to incur within the next 12 months.  However,  in the event
that a business combination does not occur during the next 12 months the Company
may need to raise  additional  capital to meet its needs to continue to pursue a
business combination or that it may cease operations. No commitments of any kind
to  provide  additional  funds  have  been  made by  management,  other  present
shareholders   or  any  other  third   person.   There  are  no   agreements  or
understandings  of any kind with  respect to any future  loans from  officers or
directors of the Company on behalf of the Company. Accordingly,  there can be no
assurance that any additional funds will be available to the Company to allow it
to cover  its  expenses.  In the event the  Company  elects to raise  additional
capital prior to the effectuation of a business combination, it expects to do so
through the private  placement of  restricted  securities  rather than through a
public offering.  The Company does not currently contemplate making a Regulation
S offering.

Since the Company's  cash reserves are minimal,  officers and  director's of the
Company are  compensated  by the Company by  issuances of stock in lieu of cash.
See  "Executive   Compensation".   Presently,   there  are  no  arrangements  or
anticipated  arrangements  to pay any  type of  additional  compensation  to any
officer or director in the near future. Regardless of whether the Company's cash
assets prove to be  inadequate  to meet the  Company's  operational  needs,  the
Company might seek to compensate  providers of services by issuances of stock in
lieu of cash. See "Certain Relationships and Transactions".

Results of Operations.

The Company has had no material operations for the last two fiscal years. Losses
were  (2,808) and  ($5,110)  respectively,  for the fiscal  years ended June 30,
2002,  and 2001.  Losses  in the  current  2002  fiscal  year were  attributable
primarily for payments made to the auditors for preparing  financial  statements
and reviewing  filings with the SEC. 2001 losses  resulted from the issuances of
shares of common  stock to  officers of the  Company  for  services  rendered in
providing  the  legal  and  other  work  necessary  to  file  this  registration
statement.  These  services  included  the  preparation  of this Form  10-SB and
arranging for the preparation and auditing of the financial statements.

Liquidity.

The Company had no  liquidity  during the fiscal year ended June 30,  2002.  The
liquidity  of the  Company  for the  year  ended  June  30,  2001,  was from the
contribution  of  capital  made  by  Vernal  Western   Drilling.   See  "Certain
Relationships  and  Related  Transactions".  The  Company  does not  contemplate
raising  capital  over  the  next  twelve  months  by  issuance  of any  debt or
additional  equity  securities.  The  Company  has no loan  agreements  with any
officer or director.

<PAGE>


ITEM 7. FINANCIAL STATEMENTS










                                    DIGICORP
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS

                             June 30, 2002 and 2001








<PAGE>

<TABLE>
<CAPTION>


                                    DIGICORP
                          (A Development Stage Company)

                                      INDEX


<S>                                                                                 <C>

                                                                                    Page

Independent Auditors' Report                                                         F-2

Balance Sheets                                                                       F-4

Statements of Operations                                                             F-5

Statements of Stockholders' Equity                                                   F-6

Statements of Cash Flows                                                             F-7

Notes to Financial Statements                                                        F-8

</TABLE>


<PAGE>


INDEPENDENT AUDITORS' REPORT



To the Stockholders' and
Board of Directors of
DigiCorp


We have audited the accompanying balance sheets of DigiCorp (a development stage
company), as of June 30, 2002 and 2001 and the related statements of operations,
stockholders' equity, and cash flows for the years then ended and the cumulative
amounts since July 1, 1995. These financial statements are the responsibility of
the Company's  management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of DigiCorp (a development stage
company), as of June 30, 2002 and 2001 and the results of its operations and its
cash  flows for the years then ended and the  cumulative  amounts  since July 1,
1995, in conformity with accounting  principles generally accepted in the United
States of America.
                                   F-2
<PAGE>


The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 2 to the
financial  statements,  the Company's revenue  generating  activities are not in
place and the Company has incurred a loss. These  conditions  raise  substantial
doubt  about its  ability to continue  as a going  concern.  Management's  plans
regarding  those matters also are described in Note 2. The financial  statements
do not  include  any  adjustments  that might  result  from the  outcome of this
uncertainty.



JONES SIMKINS LLP
Logan, Utah
August 8, 2002
                                   F-3

<PAGE>
<TABLE>
<CAPTION>

                                    DIGICORP
                          (A Development Stage Company)
                                 BALANCE SHEETS





                                                                        June 30,
                                                           --------------------------------


                     ASSETS                                     2002              2001
                                                            --------------    --------------

<S>                                                       <C>                      <C>
Current assets:
   Cash                                                   $      2,082             4,890
                                                            --------------    --------------

     Total current assets                                 $      2,082             4,890
                                                            ==============    ==============
                                                            ==============    ==============




                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                                       $           -                 -
                                                            --------------    --------------


Commitments and contingencies                                         -                 -

Stockholders' equity:
     Common stock, $.001 par value, 50,000,000 shares
      authorized, 9,042,857 shares issued and outstanding         9,043             9,043
     Additional paid-in capital                                 517,038           517,038
     Accumulated deficit                                       (523,999)         (521,191)
                                                            --------------    --------------


          Total stockholders' equity                              2,082             4,890
                                                            --------------    --------------

          Total liabilities and stockholders' equity      $       2,082             4,890
                                                            ==============    ==============
                                                            ==============    ==============


</TABLE>







             See accompanying notes to the financial statements.

                                   F-4

<PAGE>
<TABLE>
<CAPTION>

                                    DIGICORP
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS






                                                   Years Ended June 30,            Cumulative
                                             --------------------------------   ----------------
                                                  2002             2001             Amounts
                                             ---------------  ---------------   ----------------

<S>                                         <C>                        <C>               <C>
 Revenue                                    $             -                -                  -

 General and administrative expenses                  2,808            5,110             12,372
                                             ---------------  ---------------   ----------------


 Net loss before income taxes                        (2,808)          (5,110)           (12,372)

 Provision for income taxes                               -                -                  -
                                             ---------------  ---------------   ----------------
                                             ---------------  ---------------   ----------------

 Net loss                                   $        (2,808)          (5,110)           (12,372)
                                             ===============  ===============   ================






Loss per common share - basic and diluted   $             -                -
                                             ===============  ===============




 Weighted average common shares -
 basic and diluted                                9,043,000        8,121,000
                                             ===============  ===============


</TABLE>








                     See accompanying notes to the financial
                                  statements.

                                   F-5


<PAGE>
<TABLE>
<CAPTION>


                                    DIGICORP
                          (A Development Stage Company)
                       STATEMENTS OF STOCKHOLDERS' EQUITY
                          July 1, 1995 to June 30, 2002




                                                                             Additional
                                                     Common Stock             Paid-in       Accumulated
                                               --------------------------
                                                  Shares        Amount        Capital          Deficit         Total
                                               -------------   ----------    -----------    --------------  ------------
<S>                                               <C>        <C>           <C>               <C>             <C>

Balance at July 1, 1995                           7,842,857  $     7,843   $    504,238      $   (511,627)   $      454

Issuance of common stock for cash                   200,000          200          3,800                 -         4,000

Net loss                                                  -            -              -            (3,774)       (3,774)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 1996                          8,042,857        8,043        508,038          (515,401)          680

Net loss                                                  -            -              -              (169)         (169)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 1997                          8,042,857        8,043        508,038          (515,570)          511

Net loss                                                  -            -              -               (45)          (45)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 1998                          8,042,857        8,043        508,038          (515,615)          466

Net loss                                                  -            -              -              (202)         (202)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 1999                          8,042,857        8,043        508,038          (515,817)          264

Net loss                                                  -            -              -              (264)         (264)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 2000                          8,042,857        8,043        508,038          (516,081)            -

Issuance of common stock for:
cash                                                500,000          500          4,500                 -         5,000
services                                            500,000          500          4,500                 -         5,000

Net loss                                                  -            -              -            (5,110)       (5,110)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 2001                          9,042,857        9,043        517,038          (521,191)        4,890

Net loss                                                  -            -              -            (2,808)       (2,808)
                                               -------------   ----------    -----------    --------------  ------------

Balance at June 30, 2002                          9,042,857  $     9,043   $    517,038      $     23,999)   $    2,082
                                               =============   ==========    ===========    ==============  ============

</TABLE>

                     See accompanying notes to the financial
                                  statements.

                                   F-6
<PAGE>
<TABLE>
<CAPTION>


                                                     DIGICORP
                                          (A Development Stage Company)
                                             STATEMENTS OF CASH FLOWS






                                                                       Years Ended June 30,          Cumulative
                                                                   -----------------------------

                                                                       2002            2001           Amounts
                                                                   -------------   -------------  -----------------
<S>                                                              <C>                     <C>               <C>
                                                                   -------------   -------------  -----------------
Cash flows from operating activities:
Net loss                                                         $       (2,808)         (5,110)           (12,372)
Adjustments to reconcile net loss
   to net cash used in operating activities:
Stock issued for services                                                     -           5,000              5,000
                                                                   -------------   -------------  -----------------
                                                                   -------------   -------------  -----------------

Net cash used in operating activities                                    (2,808)           (110)            (7,372)
                                                                   -------------   -------------  -----------------
                                                                   -------------   -------------  -----------------


Cash flows from investing activities:                                         -               -                  -
                                                                   -------------   -------------  -----------------
                                                                   -------------   -------------  -----------------


Cash flows from financing activities:
Proceeds from issuance of common stock                                        -           5,000              9,000
                                                                   -------------   -------------  -----------------
                                                                   -------------   -------------  -----------------

Net cash provided by financing activities                                     -           5,000              9,000
                                                                   -------------   -------------  -----------------
                                                                   -------------   -------------  -----------------

Net increase (decrease) in cash                                          (2,808)          4,890              1,628

Cash, beginning of period                                                 4,890               -                454
                                                                   -------------   -------------  -----------------
                                                                   -------------   -------------  -----------------

Cash, end of period                                             $         2,082           4,890              2,082
                                                                   =============   =============  =================

</TABLE>

                     See accompanying notes to the financial
                                   statements.

                                   F-7

<PAGE>








 DIGICORP
                          NOTES TO FINANCIAL STATEMENTS
                             June 30, 2002 and 2001



Note 1 - Organization and Summary of Significant Accounting Policies

Organization

The Company was organized  under the laws of the State of Utah on July 19, 1983.
On July 1, 1995, the Company became a development stage enterprise as defined in
SFAS No. 7 when it sold its assets and changed its  business  plan.  Accordingly
the financial  statements  include  cumulative  amounts since July 1, 1995.  The
Company proposes to seek business ventures that will allow for long-term growth.

Cash and Cash Equivalents

For purposes of the  statement of cash flows,  the Company  considers all highly
liquid  investments  with  a  maturity  of  three  months  or  less  to be  cash
equivalents.

Income Taxes

Deferred  income  taxes are  provided  in amounts  sufficient  to give effect to
temporary  differences between financial and tax reporting,  principally related
to net operating loss carryforwards.

Earnings Per Share

The  computation  of basic  earnings  per common  share is based on the weighted
average  number of shares  outstanding  during the period.  The  computation  of
diluted  earnings per common share is based on the  weighted  average  number of
shares  outstanding  during the period plus the common stock  equivalents  which
would arise from the exercise of stock  options and warrants  outstanding  using
the  treasury  stock  method and the average  market  price per share during the
period.  Common stock  equivalents are not included in the diluted  earnings per
share  calculation when their effect is antidilutive.  The Company does not have
any stock options or warrants outstanding at June 30, 2002 and 2001.

                                   F-8




<PAGE>


Note 1 - Organization and Summary of Significant Accounting Policies (continued)

Concentration of Credit Risk

The Company  maintains cash in bank and deposit  accounts which,  at times,  may
exceed federally  insured limits.  The Company has not experienced any losses in
such accounts.  The Company believes it is not exposed to any significant credit
risk on cash and cash equivalents.


Use of Estimates in the Preparation of Financial Statements

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.


Note 2 - Going Concern

As of June 30, 2002,  the Company's  revenue  generating  activities  are not in
place,  and the  Company  has  incurred  a loss for the year then  ended.  These
factors raise  substantial  doubt about the  Company's  ability to continue as a
going concern.

Management intends to seek additional  funding through business ventures.  There
can be no  assurance  that such  funds  will be  available  to the  Company,  or
available on terms acceptable to the Company.


                                   F-9

<PAGE>




Note 3 - Income Taxes

The difference between income taxes at statutory rates and the amount presented
in the financial statements is a result of the following for the years ended
June 30:


                                           Years Ended
                                              June 30,             Cumulative
                                         2002         2001          Amounts

Income tax benefit at statutory rate   $ 1,000        1,000          49,000
Change in valuation allowance           (1,000)      (1,000)        (49,000)

                                        $    -            -               -



Deferred tax assets are as follows at June 30:

                                                   2002          2001

Net operating loss carryforwards                $ 38,000        47,000
Valuation allowance                              (38,000)      (47,000)

                                                $      -             -
                                                 --------      --------

The Company has net operating  loss  carryforwards  of  approximately  $111,000,
which  begin to expire  in the year  2004.  The  amount  of net  operating  loss
carryforwards  that can be used in any one year will be limited  by  significant
changes in the ownership of the Company and by the applicable tax laws which are
in effect at the time such carryforwards can be utilized. During the year ended,
June 30, 2002 approximately $32,000 of net operating losses expired.


                                   F-10



<PAGE>





Note 4 - Recent Accounting Pronouncements

In July 2001, the Financial  Accounting  Standards Board (FASB) issued Statement
of Financial Accounting Standards (FAS) No. 141, "Business Combinations" and No.
142,  "Goodwill  and Other  Intangible  Assets." The  statements  eliminate  the
pooling-of-interests  method of accounting for business combinations and require
that goodwill and certain  intangible  assets not be amortized.  Instead,  these
assets  will be  reviewed  for  impairment  annually  with  any  related  losses
recognized in earnings when  incurred.  The adoption of these  statements is not
expected  to have a  material  effect on the  company's  financial  position  or
results of operations.


                                   F-11




<PAGE>








ITEM 8.           CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS.

The Company has had no changes in and/or disagreements with its accountants.

                                    PART III

ITEM  9  -  DIRECTORS,   EXECUTIVE  OFFICERS,  PROMOTERS  AND  CONTROL  PERSONS;
COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The directors, executive officers and significant employees of the company are
as follows:

                                                POSITION
    NAME                      AGE               WITH COMPANY

    Gregg B. Colton            49           President, Treasurer & Director
    Don J. Colton              56           Vice President, Secretary & Director
    Glenn W. Stewart           62           Director
    Norman Sammis              64           Director

              Note: Gregg B. Colton and Don J. Colton are brothers.

Gregg B. Colton serves as the Company's President,  Treasurer and Director.  Mr.
Colton is employed  with  Pioneer Oil and Gas a publicly  traded  company as its
Vice  President,  Secretary,  General  Counsel  and a  member  of the  Board  of
Directors.  Mr.  Colton has been  employed with the Pioneer Oil and Gas since it
actually  commenced  business in 1981.  Mr.  Colton is involved in handling  the
contracts, sales of oil and gas products and legal problems of the Company along
with  the  day to day  decision  making  for  the  Company  with  the  Company's
President.  From 1981 to 1984,  Mr. Colton was also a partner in the law firm of
Cannon,  Hansen & Wilkinson.  Mr. Colton is a member of the Utah State Bar and a
real estate  broker.  He is also a member of the Corporate  Counsel and Business
sections of the Utah State Bar. Mr. Colton earned his BA from the  University of
Utah in 1976 and a Juris  Doctor and a Master of  Business  Administration  from
Brigham Young University in 1981.


Don J.  Colton  serves as the Vice  President,  Secretary  and  Director  of the
Company. Mr. Colton is employed as the President,  Treasurer and Chairman of the
Board of  Directors of Pioneer Oil and Gas.  Since the  inception of Pioneer Oil
and Gas in October  1980 Mr.  Colton  has been  involved  in all  aspects of the
business  for  Pioneer  Oil  and  Gas  including  exploration,  acquisition  and
development  of producing  properties.  From 1979 to 1981,  Mr. Colton was Chief
Financial  Officer and a member of the Board of Directors  of Drilling  Research
Laboratory  in Salt Lake City,  Utah.  The  Drilling  Research  Laboratory  is a
subsidiary of Terra Tech,  Inc. and prior to his  involvement  with the Drilling
Research Laboratory,  Mr. Colton was Manager of Special Projects for Terra Tech.
Mr. Colton received a BS in Physics from Brigham Young  University in 1970 and a
Master of Business Administration from the University of Utah in 1974.

Glenn W. Stewart.  Mr. Stewart received his B.S. In Physics in 1962 from Brigham
Young University and his M.B.A.  from B.Y.U. in 1966. For the last ten years Mr.
Stewart has been President and CEO of Moxtek, Inc. of Orem, Utah.

<PAGE>

Norman W. Sammis.  Mr. Sammis (63) received his B.S. in Engineering in 1960 from
the U.S. Naval Academy. He received his M.S. in Business Management in 1967 from
the Naval Postgraduate  School in Monterey,  California.  From 1968 to 1980, Mr.
Sammis was employed with the U.S. Marine Corps in various capacities.  From 1980
to  1981,  Mr.  Sammis  was  Director  of  Systems  Implementation  for  Weidner
Communications, Inc. of Provo, Utah. Since 1981, Mr. Sammis has been employed by
the Church of Jesus Christ of  Latter-Day-Saints  as a Quality Assurance Analyst
and  later  as a  Supervisor  of a  Project  Development  Team.  In his  current
position,  Mr.  Sammis is the Manager of  Technical  Services in the  Purchasing
Division  of the LDS  Church and acts as  contract  manager  for all  technology
items.

COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934

Section  16(a) of the  Securities  Exchange Act of 1934  requires the  Company's
officers  and  directors,  and  persons  who own more  than ten  percent  of the
Company's  Common  Stock,  to file reports of ownership and changes in ownership
with the Securities and Exchange  Commission  ("SEC").  Officers,  directors and
greater than ten percent stockholders are required by SEC regulations to furnish
the Company with copies of all Section 16(a) forms they file.

The  following  disclosure  is based solely upon a review of the Forms 3 and any
amendments  thereto  furnished to the Company  during the Company's  fiscal year
ended  September 30, 2000, and Forms 5 and amendments  thereto  furnished to the
Company  with respect to such fiscal year,  or written  representations  that no
Forms 5 were  required  to be filed by such  persons.  Based on this  review the
following  persons who were a director or  beneficial  owner of more than 10% of
the Company's  outstanding  Common Stock during such fiscal year no reports were
required to be filed were filed late during the fiscal year.

ITEM 10. EXECUTIVE COMPENSATION

No cash  compensation  was paid to any officer or director of the Company during
the fiscal year ending June 30, 2002.  No cash  compensation  was paid to any of
the present  executive  officers  during the fiscal year ended June 30, 2001 and
June 30, 2000.  However,  the Company,  in a Board meeting held on May 30, 2001,
issued Gregg B. Colton and Don J. Colton each a total of 250,000  common  shares
valued  together  at $5,000 to  prepare  and file a Form  10-SB on behalf of the
Company and assist  with the  preparation  of the  financial  statements  of the
Company. The Company, at the same Board meeting issued Vernal Western Drilling a
total of 500,000  common shares for $5,000  contributed  to the Company.  Vernal
Western  Drilling is a company  owned 100% by Don J. Colton and Gregg B. Colton.
There  is  currently  no  policy  in  place  that   prevents  the  Company  from
compensating  any officer,  director or  affiliate in the form of the  Company's
shares of common stock or other non-cash compensation.

<PAGE>

The Company has no  agreement  or  understanding,  express or implied,  with any
officer, director, or principal stockholder,  or their affiliates or associates,
regarding employment with the Company or compensation for services.  The Company
has no plan, agreement, or understanding,  express or implied, with any officer,
director, or principal stockholder, or their affiliates or associates, regarding
the  issuance  to such  persons of any shares of the  Company's  authorized  and
unissued common stock. There is no understanding  between the Company and any of
its present  stockholders  regarding  the sale of a portion or all of the common
stock currently held by them in connection with any future  participation by the
Company in a business. There are no other plans, understandings, or arrangements
whereby any of the Company's officers,  directors, or principal stockholders, or
any of their  affiliates or  associates,  would receive funds,  stock,  or other
assets in connection with the Company's participation in a business. No advances
have been made or contemplated by the Company to any of its officers, directors,
or principal stockholders, or any of their affiliates or associates.

There is no policy that prevents management from adopting a plan or agreement in
the future  that  would  provide  for cash or stock  based on  compensation  for
services rendered to the Company.

The  Company  presently  has not  granted  options  to any of its  directors  or
officers.  However,  the Company in the future may grant options to officers and
directors as determined by the Board of Directors.

Upon the merger or  acquisition  of a  business,  it is  possible  that  current
management  will resign and be replaced by persons  associated with the business
acquired,  particularly if the Company participates in a business by effecting a
stock exchange,  merger, or consolidation as discussed under the "Description of
Business"  above.  In the event that any member of  current  management  remains
after  effecting a business  acquisition,  that  member's  time  commitment  and
compensation  will likely be adjusted  based on the nature and  location of such
business and the services required, which cannot now be foreseen.

<PAGE>

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following  table sets forth  certain  information  regarding the  beneficial
ownership of the Company's Common Stock by each person or group that is known by
the  Company  to be the  beneficial  owner  of more  than  five  percent  of its
outstanding Common Stock, each director of the Company, each person named in the
Summary  Compensation  Table,  and all directors  and executive  officers of the
Company as a group as of June 30, 2002. Unless otherwise indicated,  the Company
believes  that  the  persons  named in the  table  below,  based on  information
furnished by such owners,  have sole voting and investment power with respect to
the Common Stock beneficially owned by them, where applicable.

Title of          Name and Address of         Amount and Nature      Percent
 Class            Beneficial Owner            of Beneficial Owner    of Class

Common   Gregg B. Colton                     1,000,984*                11.07%
                  10026 Ridge Gate Circle
                  Sandy, Utah 84092

Common   Don J. Colton                       1,276,394*                14.11%
                  2172 East Gambel Oak Dr.
                  Sandy, Utah 84092

Common   Glenn W. Stewart                      328,200                   3.6%
                  2360 South Scenic Drive
                  Salt Lake City, Utah 84109

Common   Norman Sammis                          68,220                   .75%
                  5858 West 11140 North
                  Highland, Utah 84003

Common   Andrew Buffmire                       532,419                  5.89%
                  4270 South Vallejo
                  Salt Lake City, Utah 84124

Common   Pioneer Oil and Gas                   820,779                  9.08%
                  1206 W. South Jordan Parkway
                  Unit B
                  South Jordan, Utah 84095

All Directors and Officers as a Group
(4 Persons)**                                2,673,798                 29.57%

*Includes  50% of the 500,000  common  shares owned by Vernal  Western  Drilling
since Gregg B. Colton owns 50% of Vernal Western Drilling and Don J. Colton owns
50%. Also included in Don J.  Colton's  total shares are 544,344  shares held in
the name of American Drilling Services,  Inc. in which Don J. Colton is the sole
shareholder.

**Don J.  Colton  and  Gregg B.  Colton  are the  officers  and two of the three
directors  of Pioneer  Oil and Gas.  If the  shares of  Pioneer  Oil and Gas are
included in the total amount for all directors and officers the number of shares
is 3,494,577 and the percentage is then 38.64%.

The shares  listed  above also  include  those  that are held  jointly  with the
director's spouse.

<PAGE>


ITEM 12.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

At the Board meeting described above under "Executive  Compensation" held on May
30, 2001,  the Board of Directors of the Company issued 250,000 common shares to
Gregg B.  Colton and 250,000  common  shares to Don J.  Colton.  The shares were
issued for the  preparation  and filing this Form 10-SB and  assisting  with the
preparation of the Company's financial statements.  At the same meeting,  Vernal
Western   Drilling  was  issued   500,000  common  shares  of  the  Company  for
contributing $5,000 in cash. Vernal Western Drilling is a privately held company
owned 50% by Don J. Colton and 50% by Gregg B. Colton.

The Company  presently is using office space that is owned  two-thirds by Don J.
Colton and Gregg B. Colton.  Currently,  the Company is not charged for rent nor
do Don J.  Colton or Gregg B.  Colton  intend to have the  Company  pay any rent
within the next year.  However,  in the event the office  space is leased to the
Company it will be leased on terms  reasonable for the same kind of office space
in the area that it is located.

         ITEM 13 - EXHIBITS AND REPORTS ON FORM 8-K

PART F/S                   FINANCIAL STATEMENTS

The  financial  statements  of the Company as required by Item 310 of Regulation
S-B are included in Part II, Item 7 of this report.

PART III.                  INDEX TO EXHIBITS

                The following Exhibits are filed herewith:

Exhibit No.                      Description

3(i)                             Articles of Incorporation (1)
                                            (with amendments)

3(ii)                            Bylaws (1)

               (1)  Incorporated by reference from the Company's 2001 Form 10SB.

REPORTS ON FORM 8-K

                The Company has not filed any reports on Form 8-K during the
last fiscal year.

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                                       /s/ Gregg B. Colton
                                                 By: ______________________
                                                         Gregg B. Colton
                                                         Director/President

                Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.

 /s/ Gregg B. Colton
________________________ Director/President
   Gregg B. Colton

/s/ Don J. Colton
________________________ Director/Vice President/Secretary
   Don J. Colton

/s/ Glenn W. Stewart
________________________ Director
   Glenn W.Stewart

/s/ Norman Sammis_
_______________________ Director
   Norman Sammis


<PAGE>




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

In connection  with the filing of the Annual Report of DigiCorp (the  "Company")
on Form 10-KSB for the period  ended June 30, 2002 (the  "Report"),  I, Gregg B.
Colton, Chief Executive Officer of the Company,  certify,  pursuant to 18 U.S.C.
ss.  1350,  as adopted  pursuant to ss. 906 of the  Sarbanes-Oxley  Act of 2002,
that:

         (i) The Report fully complies with the requirements of section 13(a) of
the Securities Exchange Act of 1934; and

         (ii) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.

/s/ Gregg B. Colton
-------------------------
Gregg B. Colton
Chief Executive Officer
September 10, 2002