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 quarterly period ended March 31, 2002
Commission File No. 000-28251

US Data Authority, Inc.
(Exact name of small business issuer as specified in its charter)

|Florida
(State of Incorporation) | 65-0693150
(I.R.S. Employer Identification No.)
|-------------------------------- | -----------------------------------------------

3500 NW Boca Raton Boulevard, Building 811, Boca Raton, Florida 33431(Address of Principal Executive Offices)

(561) 368-0032
(Issuer's Telephone Number, Including Area Code)

N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Check whether the issuer (1) 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 issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes __X__	No ____

APPLICABLE ONLY TO CORPORATE ISSUERS:Indicate the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date.

Common stock, par value $.02 per share, 85,950,582 shares issued and outstanding as of May 9, 2002.

Transitional Small Business Disclosure Format (Check one): Yes __ No X

PART I

FINANCIAL INFORMATION

Item 1.	Financial Statements

US Data Authority, Inc.
(A Development Stage Company)
Balance Sheets - March 31, 2002 and December 31, 2001

|Assets                                                                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                              
|Current assets:
Cash and equivalents                                                                                                                                                                                                                          
|Accounts receivable                                                                                                                                                                                                                                           
|Other current assets                                                                                                                                                                                                                                          
|Total current assets                                                                                                                                                                                                                                          
|Equipment under capitalized leases                                                                                                                                                                                                                            
|Leaseholds, furniture, fixtures and equipment                                                                                                                                                                                                                 
|Other assets, principally security deposits                                                                                                                                                                                                                   
|Total Assets                                                                                                                                                                                                                                                  
|Liabilities and Shareholders' Deficit                                                                                                                                                                                                                         
|Current liabilities:
Current portion of capitalized lease obligations                                                                                                                                                                                         
|Payroll taxes, including penalties and interest in arrears                                                                                                                                                                                                    
|Accounts payable                                                                                                                                                                                                                                              
|Accounts payable under dispute                                                                                                                                                                                                                                
|Accrued liabilities                                                                                                                                                                                                                                           
|Convertible notes/advances payable, shareholders and other                                                                                                                                                                                                    
|Due to related party                                                                                                                                                                                                                                          
|Total current liabilities                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                              
|Shareholders' deficit:
Preferred stock, Series A, $1.00 par; authorized 30,000,000 shares; issued 1,250,000 shares
Common stock, $.02 par, authorized 100,000,000 shares; issued and outstanding 75,305,675 shares in 2002 and 59,484,849 at December 31, 2001
|Capital in excess of par                                                                                                                                                                                                                                      
|Deficit                                                                                                                                                                                                                                                       
|Accumulated deficit during the development stage                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                              
|Escrow performance shares                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                              



US Data Authority, Inc.
(a development stage company)
Statements of Operations
Three months ended March 31, 2002 and 2001 and Cumulative Amounts from Inception of Development Stage (May 1, 2000) to March 31, 2002
(Unaudited)

|                                                | Three Months Ended
March 31, | Cumulative
Amounts FromInception
|----------------------------------------------- | ---------------------------- | --------------------------------
|                                                | 2002                         | 2001                            
|Revenues:                                       |                              |                                 
|Sales, net of allowances                        | $58,700                      | $371,500                        
|Equipment                                       | 12,800                       | _______-                        
|                                                | 71,500                       | 371,500                         
|Operating expenses:                             |                              |                                 
|Technology and content                          | 564,300                      | 1,316,300                       
|Compensation and related benefits               | 566,000                      | 1,130,300                       
|Marketing and sales                             | 132,100                      | 79,500                          
|General and administrative                      | 408,900                      | 315,500                         
|Interest                                        | 205,600                      | 168,500                         
|Rent                                            | 38,600                       | 39,700                          
|Amortization and depreciation                   | 213,000                      | 205,100                         
|                                                | 2,128,500                    | 3,254,900                       
|Less interest income and other                  | 6,100                        | 2,200                           
|                                                | 2,122,400                    | 3,252,700                       
|Loss before other additions                     | (2,050,900)                  | (2,881,200)                     
|Other additions, vendor settlements and credits | _______-                     | _______-                        
|Net loss                                        | $(2,050,900)                 | $(2,881,200)                    
|Loss per share of common stock:                 |                              |                                 
|Basic and diluted                               | $(0.03)                      | $(0.14)                         
|Weighted average common shares outstanding      | 71,486,159                   | 20,011,299                      





US DATA AUTHORITY, INC.
(A COMPANY IN THE DEVELOPMENT STAGE)
STATEMENTS OF SHAREHOLDER'S DEFICIT
THREE MONTHS ENDED MARCH 31, 2002 AND CUMULATIVE AMOUNTS FROM INCEPTION OF DEVELOPMENT STATE (MAY 1, 2000) TO MARCH 31, 2002
(UNAUDITED)

|                                         | Total         | Preferred Stock Shares   | Amount     | Common StockShares                          
|---------------------------------------- | ------------- | ------------------------ | ---------- | --------------------------------------------
|Balance, beginning, January 1, 2002      | $(9,455,700)  | 1,250,000                | $1,250,000 | 58,484,849                                  
|Add (deduct):                            |               |                          |            |                                             
|Proceeds from sales of common stock      | 545,500       |                          |            | 5,262,915                                   
|Issuance of common stock for:            |               |                          |            |                                             
|Shareholders interest                    | 172,400       |                          |            | 2,590,000                                   
|Shareholder loan                         | 250,000       |                          |            | 5,000,000                                   
|Payroll                                  | 103,700       |                          |            | 1,250,000                                   
|Marketing, sales and commissions         | 214,400       |                          |            | 1,400,000                                   
|Professional services                    | 16,000        |                          |            | 66,683                                      
|Accounts payable and other               | 36,900        |                          |            | 251,228                                     
|Utilization of escrow performance shares | 15,000        |                          |            |                                             
|Net loss                                 | (2,050,900)   | __________               | __________ | __________                                  
|Balance ending, March 31, 2002           | $(10,152,700) | 1,250,000                | $1,250,000 | 75,305,675                                  
|                                         | Amount        | Capital in excess of par | Deficit    | Accumulated Deficit During Development Stage
|Balance, beginning, January 1, 2002      | $1,189,700    | $6,002,900               | $(930,200) | $(16,842,600)                               
|Add (deduct):                            |               |                          |            |                                             
|Proceeds from sales of common stock      | 105,300       | 440,200                  |            |                                             
|Issuance of common stock for:            |               |                          |            |                                             
|Shareholders interest                    | 51,800        | 120,600                  |            |                                             
|Shareholder loan                         | 100,000       | 150,000                  |            |                                             
|Payroll                                  | 25,000        | 78,700                   |            |                                             
|Marketing, sales and commissions         | 28,000        | 186,400                  |            |                                             
|Professional services                    | 1,300         | 14,700                   |            |                                             
|Accounts payable and other               | 5,000         | 31,900                   |            |                                             
|Utilization of escrow performance shares |               |                          |            |                                             
|Net loss                                 | _________     | _________                | _________  | (2,050,900)                                 
|Balance ending, March 31, 2002           | $1,506,100    | $7,025,400               | $(930,200) | $(18,893,500)                               



US Data Authority, Inc.
(A Development Stage Company)
Statements of Cash Flows
Three months ended March 31, 2002 and 2001 and Cumulative Amounts from Inception of Development Stage (May 1, 2000) to March 31, 2002
(Unaudited)

|                                                                                                                                                                                                      | March 31,                          |                                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------- | --------------------------------
|                                                                                                                                                                                                      | 2002                               | 2001                            
|Cash flows from operating activities:
Sources of cash:
Revenues
Interest
Refund of income taxes                                                                                                       | $127,800
6,100-                    | $346,900
2,200-                 
|                                                                                                                                                                                                      | 133,900                            | 349,100                         
|Uses of cash:
Technology and content
Compensation and related benefits
Marketing, selling, general and administrative
Interest
Rent
Cash used in discontinued operations, net                         | 55,100
399,100
285,800
1,60019,700 | (61,100)
923,200
326,604
-39,700
|                                                                                                                                                                                                      | 761,300                            | 1,228,400                       
|Cash (used-in) operating activities                                                                                                                                                                   | (627,400)                          | (879,300)                       
|Cash flows from investing activities:
Sources of cash:
Officer and employees loan repayments
Customer security deposits                                                                               | -6,400                             | --                              
|                                                                                                                                                                                                      | 6,400                              | -                               
|Uses of cash:
Advances to officers and employees
Purchases of leaseholds, furniture, fixtures and equipment, less amount financed
Payments to related party
Rent, utility and other security deposits | -
55,400
--                        | -15,60022,400-                  
|                                                                                                                                                                                                      | 55,400                             | 38,000                          
|Cash (used-in) investing activities                                                                                                                                                                   | (49,000)                           | (38,000)                        
|Cash flows from financing activities:
Sources of cash:
Proceeds from:
Sales of common stock and warrant
Shareholders loans and other
Commercial loan                                                  | 545,500
102,100-
647,600           | 285,000
800,000-
1,085,000      
|Uses of cash:
Payment of capitalized lease obligation and short term debt                                                                                                                             | -                                  | 140,600                         
|Cash provided by financing activities                                                                                                                                                                 | 647,600                            | 944,400                         
|Increase (decrease) in cash and equivalents                                                                                                                                                           | (28,800)                           | 27,100                          
|Cash and equivalents, beginning                                                                                                                                                                       | 49,600                             | 61,800                          
|Cash and equivalents, ending                                                                                                                                                                          | $20,800                            | $88,900                         





US Data Authority, Inc.
(A Development Stage Company)
Statements of Cash Flows (Continued)
Three months ended March 31, 2002 and 2001 and Cumulative Amounts from Inception of Development Stage (May 1, 2000) to March 31, 2002
(Unaudited)

|                                                                              | March 31,
2002 | March 31,
2001 | Cumulative
Amounts From Inception To-Date
|----------------------------------------------------------------------------- | -------------- | -------------- | -----------------------------------------
|Reconciliation of net (loss) to cash (used-in) operating activities:          |                |                |                                          
|Net (Loss)                                                                    | $(2,050,900)   | $(2,881,200)   | $(18,658,600)                            
|Adjustments to reconcile net (loss) to cash (used-in) operating activities:   |                |                |                                          
|Amortization and depreciation                                                 | 213,000        | 205,100        | 1,351,000                                
|Discontinued operations, net                                                  | -              | -              | (234,900)                                
|Loss on abandoned equipment                                                   | -              | -              | 30,900                                   
|Allowance for doubtful collections                                            | -              | -              | 200                                      
|Other operating activities, principally fees                                  | 356,600        | -              | 823,400                                  
|Changes in assets and liabilities:                                            |                |                |                                          
|Accounts receivable                                                           | 14,300         | (63,500)       | 10,300                                   
|Advances of officers and employees                                            | -              | -              | 76,400                                   
|Other current assets                                                          | 17,300         | 1,500          | 17,300                                   
|Accounts payable                                                              | 132,000        | 1,121,200      | 5,385,000                                
|Accrued liabilities                                                           | 690,300        | 737,600        | 2,970,800                                
|Total adjustments                                                             | 1,423,500      | 2,001,900      | 10,480,400                               
|Cash (used-in) operating activities                                           | $(627,400)     | $(879,400)     | $(8,228,200)                             
|Schedule of non-cash investing and financing activities:                      |                |                |                                          
|Non-cash investing activity:                                                  |                |                |                                          
|Purchase of leaseholds, furniture, fixtures, equipment and capitalized leases |                |                | $4,811,200                               
|Less amounts paid                                                             |                |                | 1,360,500                                
|                                                                              |                |                | $3,450,700                               
|Non-cash financing activities:                                                |                |                |                                          
|Issuance of common stock on purchases of USDA                                 |                |                | $209,600                                 
|Common stock issued for services and escrow performance shares                | $356,600       |                | $823,400                                 
|Issuance of preferred stock for shareholder loans                             |                |                | $1,250,000                               





US Data Authority, Inc.
(a development stage company)
Notes to Financial Statements
(Unaudited)
March 31, 2002

Note 1. - Basis of Presentation:

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the interim financial information and with the instructions to Form 10-QSB. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2002, are not necessarily indicative of the results that may be expected for the year ended December 31, 2002. The unaudited financial statements should be read in conjunction with the financial statements and related notes for the year ended December 31, 2001, included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2001.



|Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

Overview

Since the merger in May 2000, and until the fourth quarter of 2001, we pursued a business plan consisting primarily of utilizing our co-location in as many as 38 locations on AT&T's nationwide network to provide bandwidth, Internet access and supporting services and network management to small and medium size business customers. This business proved to be highly competitive, with the result that our revenues could not support the cost of maintaining our network and our general overhead, and we continued to accumulate deficits. At the same time, our efforts to reduce the largest component of the expense of maintaining the network - - fees to AT&T - - were stymied due to a continuing billing dispute with AT&T. This dispute began in early 2001 and culminated in AT&T disconnecting our entire network on August 27, 2001. Overnight, we lost as much as 78% of our customers and 90% of revenue we projected to realize during the third quarter 2001. We did manage to reconnect some Florida-based customers using alternative circuits provided by Cable and Wireless and BellSouth Corporation.

Faced with an uncertain future in the bandwidth resale and Internet access business, in the aftermath of the events of September 11, 2001, and the resulting surge in demand for data storage and security, management developed, in the fourth quarter 2001, a new business plan. The plan is to use our existing facilities and the arrangement with Hitachi Corporation to offer managed data storage solutions to smaller and medium size business customers, i.e. become what is known as a Managed Service Provider ("MSP"). The data storage services would be sold through resellers and, secondarily, through distributors, where the resellers are network providers who use our data storage solutions under a private label or co-brand them with their own data storage offerings.

Implementation of this plan with the purpose of exiting the development stage sometime towards the end of 2002 will require additional capital in the range of $6.5 million to $8.5 million. As described below, under the very recent agreement we reached with the Centro Group (as hereinafter defined), we should receive a capital infusion sufficient for our purposes. There is, however, no complete assurance that we will receive all of the intended proceeds of the investment described in the agreement with the Centro Group. Moreover, there is no assurance that the new business plan will be successful and, in general, that our efforts to become profitable on a consistent basis will yield the desired results.

In our efforts to become profitable on a consistent basis we will have to contend with an outstanding liability to the IRS for payroll taxes and our lack of compliance with the terms of our equipment lease with Cisco Systems Capital Corporation (Cisco"). In this connection, we owe the IRS approximately $848,900 in payroll taxes for 2000 and 2002 (not 2001) and intend to begin a dialogue with the agency with the purpose of developing an installment payment plan acceptable to the IRS. Certain of the proceeds of the investment by the Centro Group have been earmarked for this purpose and, although the outcome is not free from doubt, management believes that a solution acceptable to the Company can be achieved.

As regards the equipment lease with Cisco, we are currently negotiating a settlement whereby we would return certain unused equipment for a $1.5 million reduction in the approximately $3.6 million owed under the lease and repay a discounted portion of the remaining debt over two years. There is no assurance that our proposal will be accepted by Cisco, and that, as a result, we may have to dedicate a larger portion of the proceeds of the investment by the Centro Group than originally planned to the discharge of this obligation.

Results of Operations

For the three-month period ended March 31, 2002, we reported a net loss of $2,050,900 ($0.03 per share) compared to a net loss of $2,881,200 ($.14 per share) for the three-month period ended March 31, 2001.

A comparison between the relevant periods shows that management's efforts to reduce expenses in the fourth quarter of 2001 and first quarter of 2002 did yield some results. For example, two of the three major categories of expenses, technology and content, compensation and general and administrative, declined between 43% (compensation, from $1,130,300 to $566,000) and 51% (technology and content, from $1,316,300 to $564,300). Contributing to the net loss for the three-month period ended March 31, 2002 was the precipitous decline in revenue, from $371,500 in the first quarter 2001 to $71,500 in the current period. As described above, revenue in the current period continued to suffer the impact of the dramatic reduction in customers caused by the disconnecting of our AT&T-based network in August 2001. At the same time, we have not yet begun to realize any significant revenue from the data storage business.

Liquidity and Capital Resources

Our operations thus far have been funded utilizing the proceeds of (i) a $500,000 private placement in May 2000; (ii) a $906,350 private placement in May - June 2000; (iii) a $502,500 private placement in June - July 2000; (iv) a $475,000 private placement in July 2000; (v) a $120,000 private placement in August 2000; (vi) a $900,000 private placement in September 2000; (vii) a $180,000 private placement in September 2000; (viii) a $1.0 million convertible loan made to us by a group of directors and shareholders in late October 2000; (ix) a $40,500 private placement in December 2000; (x) the sale by us of the Separate Warrant to La Jolla Cove Investors, Inc. for $62,500 in February 2001; (xi) a $250,000 loan to us by two directors in February 15, 2002, which were converted in March 2001 into 1,250,000 shares of Series A Convertible Preferred Stock; (xii) $850,000 in net amount of loans made to us by certain directors and a private investor in the first quarter 2001; (xiii) the sale by us of the $200,000 LJ Debenture to La Jolla Cove Investors, Inc. on April 5, 2001; (xiv) a sale by us of 526,316 shares of the Common Stock for $200,000 to IDT Fund, Ltd. and IDT Fund 13 in March 2001; (xv) a sale by us of the $550,000, 8% two-year convertible debenture to Thomson Kernaghan & Co. on April 27, 2001; (xvi) a sale by us in a private placement of 12 million shares of Common Stock for $600,000 to the group led by ABFS on May 23, 2001; (xvii) a sale by us in a private placement of 3,647,722 shares of Common Stock for $577,160 on July 3, 2001; (xviii) a sale by us in a private placement of 4.5 million shares of Common Stock for $450,000 during August 2001; (xix) a sale by us in two private placements of 13,625,991 shares of Common Stock for $1,013,750 in October 2001 - January 2002; and (xx) a sale by us in three private placements of 4,539,577 shares of Common Stock for $485,000 in February-April, 2002.

`Additionally, we recently entered into an agreement (the "Purchase Agreement") dated February 28, 2002, with the Centro Group, consisting of Centro Inmobiliario RYC, S.L., a limited liability company organized under the laws of the Kingdom of Spain ("Inmobiliario"), MAPET International Foundation, Inc., a Florida non-profit corporation ("MAPET"), FRONTIER STAR, S.L., a limited liability company organized under the laws of the Kingdom of Spain ("FRONTIER STAR"), INVERFAPE, S.A., a limited liability company organized under the laws of the Dominican Republic ("INVERFAPE"), Jesus Guirau, S.L., a limited liability company organized under the laws of the Kingdom of Spain ("Jesus Guirau") (Inmobiliario, MAPET, FRONTIER STAR, INVERFAPE, and Jesus Guirau are sometimes collectively referred to hereinafter as the "Investors"), as amended.  Under the Purchase Agreement, the Investors purchased and agreed to purchase from us, in eighteen (18) traunches (i) 10,000,000 shares of Common Stock, and (ii) 20,000,000 shares of Series A Preferred Stock (the "Preferred Stock") for the aggregate price of $18,400,000. The Common Stock would be purchased for $0.16 per share and the Preferred Stock would be purchased for $0.84 per share.  The Investors will divide the rights and obligations under the Purchase Agreement as follows:  Inmobiliario (37.5%); MAPET (37.5%); FRONTIER STAR (10.0%); INVERFAPE (10.0%); and Jesus Guirau (5.0%).
	The closing of the first traunche occurred on April 29, 2002.  At this closing, the Investors purchased a total of 6,250,000 shares of Common Stock for $1,000,000.  The Investors have agreed to purchase Common Stock and Preferred Stock every thirty days in amounts specified in the Purchase Agreement for seventeen (17) months.  The Purchase Agreement also grants the Investors the option to purchase up to 10,000,000 shares of the Common Stock at varying exercise prices for a total of $20,000,000.  Pursuant to the terms of the Purchase Agreement, the Investors will receive the options in increments of 2,000,000 shares for each $2,000,000 they invest in the Company.  The first 8,000,000 options will vest at the time the Investors have invested at least 80% of the total $18,400,000 investment they committed to in the Purchase Agreement.  The remaining 2,000,000 options will vest at the time the Investors have invested the entire $18,400,000 in the Company.  The exercise prices for the options differ for each 2,000,000 share increment and are specified in the Purchase Agreement.  All of the options expire on April 29, 2006.`

After the initial $1,000,000 investment by the Investors on April 29, 2002, as agreed upon by the parties to the Purchase Agreement in order for the Investors to gain majority representation of the Board of Directors, the Investors were entitled to nominate five persons to be elected to the Board of Directors. On that date, upon resolution by the Board of Directors, the Board of Directors agreed to expand the number of its members from seven to nine. After passing this resolution, five of the seven directors resigned and seven new directors were elected to fill the vacancies, five of whom were nominated by the Investors. The newly constituted Board of Directors consists of Messrs. Robert M. Beaton, Juan F. Casas, Michael A. Cutler, William C. Davis, III, Eli Dreszer, Martin Laburu, Dominick F. Maggio, Charles Molinari and Mario Perez. Messrs. Casas, Davis, Laburu, Maggio and Perez were the Investors' nominees. The newly constituted Board of Directors named Mr. Cutler to serve as its chairman and Mr. Maggio to serve as President and CEO of the Company.

On March 7, 2002, the Company entered into a marketing agreement (the "Marketing Agreement") with US DATA International Development, Inc. ("US DATA International"), a Florida corporation that is controlled by the Investors. Pursuant to the terms of the Marketing Agreement, US DATA International will provide all international marketing and sales coordination of the Company's products and services. The initial term of the Marketing Agreement is for three years and the agreement will automatically renew for additional 12-month periods unless either party provides the other with written notice of its intent to cancel the agreement within 90 days of the anniversary date of the agreement. US DATA International will be paid $100,000 per month for the life of the agreement. In addition, during the initial three-year term, US DATA International will receive an amount equal to three percent (3%) of the Company's gross sales through March 7, 2005. Additionally, pursuant to the terms of the Marketing Agreement, the Company will grant US DATA International (i) 1,000,000 shares of Common Stock, and (ii) options for up to 3,000,000 shares of Common Stock, which shall vest immediately upon grant and be exercisable at certain prices and under certain terms and conditions for five years.



PART II

OTHER INFORMATION

Item 1.	 Legal Proceedings.

On August 6, 2001, AT&T, the Company's largest network provider filed suit against the Company in the US District Court for the Southern District of Florida, AT&T Corp. vs. US Data Authority, Inc., Civ-01-8715, demanding payment of $2,332,984 in total amount of outstanding charges. The Company and AT&T reached a tentative settlement, however, the parties were unable to agree to the terms of the documents designed to evidence and reflect the settlement. On August 27, 2001, AT&T disconnected the USDA network at all of the 38 locations. On September 7, 2001, the Company filed a Motion to Dismiss AT&T's complaint in the US District Court for the Southern District of Florida and on November 6, 2001, the Company filed an Answer and Counterclaim to AT&T's complaint, also in U. S. District Court for the District of Southern Florida. The Company's counterclaim in the lawsuit demands damages in excess of $40 million for breach of contract, breach of fiduciary duties, trade libel and fraud. In December, 2001, AT&T filed a Motion to Dismiss Counterclaim and the Company responded by filing a Memorandum of Law in Opposition to Motion to Dismiss Counterclaim on January 18, 2002. Counsel for AT&T recently requested a 30-day abatement of proceedings in order to file what would amount to "corrective" documents with the Court relating to its Memorandum of Law filed on January 18, 202. On February 21, 2002, AT&T filed an Amended Complaint. The Company filed an Answer and Affirmative Defenses to Amended Complaint on April 23, 2002. We intend to defend this action vigorously and press to prevail in our counterclaim.

The Company is a defendant in a lawsuit filed August 1, 2001, in the United States District Court for the District of Colorado, Webfinder Wireless, Joseph Price and Clifford Price vs. US Data Authority, Inc., Dominick F. Maggio, William Pierce and David Rappa, Civil Action No. 01 WM 1430. Plaintiffs allege willful breach of contract and negligent misrepresentation, among other things, stemming from the Company's agreement to install an OC-3 fixed fiber optic connection to the plaintiffs' network in two mountain resorts in Southwestern Colorado. The Complaint demands the return of the $32,400 deposit paid by the plaintiffs to the Company and other unspecified damages. The parties are engaged in negotiations to settle the case. We believe that the suit is without merit and will vigorously move to have the suit dismissed in case settlement negotiations fail.

Item 2.	 Changes in Securities.

(a)	None

1. None.
2. The following sales of securities without registration took place during the first quarter of 2002:

|(1)  | January 2002.           
|---- | ------------------------
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|     | (e)                     
|(2)  | January 2002.           
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(3)  | February 2002.          
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
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|     | (d)                     
|(4)  | February 2002           
|     | (a)                     
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|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(5)  | February - March, 2002. 
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(6)  | February and April 2002.
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(7)  | March 2002.             
|     | (a)                     
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|     |                         
|     | (b)                     
|     |                         
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|     | (c)                     
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|     | (d)                     
|(8)  | February - March 2002.  
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(9)  | March 2002.             
|     | (a)                     
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|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(10) | March 2002.             
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     
|(11) | March 2002.             
|     | (a)                     
|     |                         
|     |                         
|     |                         
|     | (b)                     
|     |                         
|     |                         
|     | (c)                     
|     |                         
|     | (d)                     

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None.

Item 6. Exhibits and Reports on Form 8-K.

A. Exhibits:

None

B. Reports on Form 8-K

Registrant filed no reports on Form 8-K during the quarter ended March 31, 2002. However, a report on Form 8-K was filed on May 13, 2002. The report on Form 8-K described a change in control of the Company due to an investment, a material marketing agreement, dated March 7, 2002, the election of a newly constituted board of directors and of Dominick F. Maggio as the Company's President and CEO, and an agreement, on February 19, 2002, whereby 20,000,000 of the warrants held by ABFS were cancelled.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

US DATA AUTHORITY, INC.

| | US DATA AUTHORITY, INC.(Registrant)
BY: /S/ Dominick F. Maggio
Dominick F. Maggio, Director, Chief Executive 
Officer and President
| | -----------------------------------------------------------------------------------------------------------------------------------

Date: May 16, 2002