U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d)  OF  THE  SECURITIES
     EXCHANGE ACT OF 1934

     For  the  quarterly  period  ended  September 30, 2000

[ ] TRANSITIONAL  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 (No Fee Required)

                           Commission File No. 0-26351

                                 iVIDEONOW, Inc.
                              (Formerly DIGS, Inc.)
            --------------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


                  Delaware                          95-4603237
     -----------------------------------     ------------------------
     (State  or  other  jurisdiction  of        (I.R.S  Employer
      incorporation  of  organization)         Identification  No.)

          17327 Ventura Boulevard, Suite 200, Encino, California 91316
         ---------------------------------------------------------------
                      Address of principal executive office


                                (818) 995 - 3650
                          -----------------------------
                            Issuer's telephone number

Check  whether  the  issuer  has (1) filed all reports required by Section 12 or
15(d)  of  the  Exchange  Act during the past 12 months, and (2) been subject to
such  filing  requirements  for  the  past ninety (90) days.  Yes ( X ) No (  )

     As of September 30, 2000, 6,658,631 shares of the registrant's common stock
were outstanding.

     The  aggregate  market  value of the voting  stock  held by  non-affiliates
computed by reference  to the price at which the stock was sold,  or the average
bid and asked prices of such stock, as of November 13, 2000 was $2,064,175.

<PAGE>1

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)


                                      INDEX


<TABLE>
<S>                                                                                          <C>

                                                                                                   Pages
                                                                                                ----------
PART I: FINANCIAL INFORMATION

  ITEM 1 - Financial Statements

       Independent Accountants' Report                                                               2

      Condensed Consolidated Balance Sheet (Unaudited) as of September 30, 2000                      3

      Condensed Consolidated Statements of Operations (Unaudited)
      For the Quarters and Year-to-Date Periods Ended September 30, 2000 and 1999                    4

      Condensed Consolidated Statements of Cash Flows (Unaudited)
      For the Year-to-Date Periods Ended September 30, 2000 and 1999                                 5

      Selected Information - Substantially All Disclosures Required by Generally
      Accepted Accounting Principles are Not Included                                           6 - 10

  ITEM 2 - Management's Discussion and Analysis of Financial
              Condition and Results of Operations                                              11 - 12


</TABLE>




<PAGE>2

                         INDEPENDENT ACCOUNTANTS' REPORT





November 9, 2000


To The Board of Directors and Stockholders of
iVideoNow, Inc. and Subsidiaries
Encino, California

We have  reviewed  the  accompanying  condensed  consolidated  balance  sheet of
iVideoNow, Inc. and Subsidiaries as of September 30, 2000, the related condensed
consolidated  statements of operations for the quarter and year-to-date  periods
ended September 30, 2000 and 1999, and the condensed consolidated  statements of
cash flows for the year-to-date periods ended September 30, 2000 and 1999. These
financial statements are the responsibility of the Corporation's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression of an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to such condensed  consolidated  financial  statements for them to be in
conformity with generally accepted accounting principles.

The  financial  statements  for  the  quarter  and  year-to-date  periods  ended
September 30, 1999 have not been reviewed by us, and accordingly,  we express no
opinion or other form of assurance on them.




/s/ CALDWELL, BECKER, DERVIN, PETRICK & CO., L.L.P.
    Woodland Hills, California









<PAGE>3
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                          PART 1: FINANCIAL INFORMATION
                          ITEM 1: FINANCIAL STATEMENTS
                      CONDENSED CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

<TABLE>
<S>                                                                       <C>
                                     ASSETS

CURRENT ASSETS
     Cash                                                                   $       1,029,171
     Accounts receivable - trade                                                      100,296
     Investments                                                                        1,250
                                                                            ------------------
              Total Current Assets                                                  1,130,717
                                                                            ------------------
PROPERTY AND EQUIPMENT,
  net of accumulated depreciation                                                     208,440

PROGRAM DEVELOPMENT COSTS,
  net of accumulated amortization                                                     191,851

OTHER ASSETS
     Officer loans                                                                     71,709
     Deposits                                                                           1,082
                                                                            ------------------
              Total Other Assets                                                       72,791
                                                                            ------------------
              Total Assets                                                  $       1,603,799
                                                                            ==================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable and accrued expenses                                  $          83,927
     Other liabilities                                                                  2,400
                                                                            ------------------
              Total Current Liabilities                                                86,327
                                                                            ------------------
STOCKHOLDERS' EQUITY
     Preferred stock, par value $.01 per share; 20,000,000
       shares authorized, 2,500 shares issued and outstanding                              25
     Common stock, par value $.001 per share; 80,000,000
       shares authorized, 6,658,631 shares issued and
       outstanding                                                                      6,659
     Additional paid-in capital                                                     3,712,569
     Accumulated other comprehensive (loss)                                          (118,372)
     Retained (deficit)                                                            (2,083,409)
                                                                            ------------------
              Total Stockholders' Equity                                            1,517,472
                                                                            ------------------
              Total Liabilities and Stockholders' Equity                    $       1,603,799
                                                                            ==================
</TABLE>

The  Accompanying  Notes  are an  Integral  Part of the  Consolidated  Financial
Statements
<PAGE>3

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                          PART 1: FINANCIAL INFORMATION
                          ITEM 1: FINANCIAL STATEMENTS
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
   FOR THE QUARTERS AND YEAR-TO-DATE PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (UNAUDITED)

<TABLE>
<S>                                                               <C>               <C>               <C>               <C>

                                                                     For the Quarter Ended             For The Year-To-Date Periods
                                                                           September 30,                      Ended September 30,
                                                                  ------------------------------      ------------------------------
                                                                       2000              1999               2000           1999
                                                                  ------------      ------------      -------------     ------------

REVENUE                                                           $    92,575       $   245,165       $   426,480       $   559,319
COST OF SALES                                                          66,943            28,813           156,315           114,847
                                                                  ------------      ------------      -------------     ------------
       Gross Profit/(Loss)                                             25,632           216,352           270,165           444,472
                                                                  ------------      ------------      -------------     ------------
OPERATING EXPENSES
     Accounting                                                         4,921                 0            41,100                 0
     Legal                                                             32,964                 0            85,719                 0
     Marketing                                                          4,790            19,295            90,150            83,413
     Outside services                                                   9,500            30,098            20,800            88,655
     Payroll expenses                                                 167,564           100,808           460,685           254,210
     Rent                                                              23,613            18,872            67,451            57,201
     Other                                                            137,090           100,709           305,579           230,069
                                                                  ------------      ------------      -------------     ------------
        Total Operating Expenses                                      380,442           269,782         1,071,484           713,548
                                                                  ------------      ------------      -------------     ------------
          Income/(Loss) from Operations                              (354,810)          (53,430)         (801,319)         (269,076)

OTHER INCOME/(EXPENSE)
    Rental income                                                       4,240             3,000            10,240            20,300
    Interest income                                                    19,905                 0            33,296                 0
    Other expense                                                         (53)                0            (3,728)                0
    Realized (loss) on sale of securities                                   0                 0                 0            (7,850)
                                                                  ------------      ------------      -------------     ------------
         Income/(Loss) Before Taxes                                  (330,718)          (50,430)         (761,511)         (256,626)

(PROVISION) FOR INCOME TAX                                                  0                 0            (2,400)             (800)
                                                                  ------------      ------------      -------------     ------------
         Net Income/(Loss)                                           (330,718)          (50,430)         (763,911)         (257,426)

OTHER COMPREHENSIVE INCOME, net of tax
     Unrealized holding gain/(loss) on investments                    (78,750)                0          (115,625)                0
     Reclassification of loss included in net income                        0                 0                 0             7,850
                                                                  ------------      ------------      -------------     ------------
            Comprehensive Income/(Loss)                           $  (409,468)      $   (50,430)      $  (879,536)      $  (249,576)
                                                                  ============      ============      =============     ============
(Loss) per share and common share equivalents                     $      (.06)      $      (.01)      $      (.13)      $      (.05)
                                                                  ============      ============      =============     ============
Weighted average common shares outstanding                          6,649,864         5,272,280         6,649,864         5,272,280
                                                                  ============      ============      =============     ============

</TABLE>

The  Accompanying  Notes  are an  Integral  Part of the  Consolidated  Financial
Statements

<PAGE>5
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                          PART 1: FINANCIAL INFORMATION
                          ITEM 1: FINANCIAL STATEMENTS
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
         FOR THE YEAR-TO-DATE PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
                                   (UNAUDITED)

<TABLE>
<S>                                                                    <C>                     <C>

                                                                             2000                    1999
                                                                         ------------            ------------
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
   Net (loss)                                                            $  (763,911)            $  (257,426)
    Adjustments to reconcile net (loss) to net cash provided
    (used) by operating activities:
    Amortization and depreciation                                             42,754                  27,216
    (Increase) in accounts receivable                                        (32,601)               (223,361)
    Increase in current liabilities and accrued expenses                       4,853                  12,767
     (Increase) in receivables from employees                                      0                  (1,000)
     (Decrease) in deferred rent credit                                      (11,667)                (15,002)
    Realized (loss) on sale of marketable equity securities                        0                  (7,850)
     (Increase) in deposits                                                     (922)                 (1,500)
                                                                         ------------            ------------
        Net Cash Flows (Used) by Operating Activities                       (761,494)               (466,156)
                                                                         ------------            ------------

CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
    Acquisition of property and equipment                                   (118,152)                (35,383)
    (Increase) in program development cost                                   (86,127)                (47,000)
    (Increase) in loan receivable - officer                                  (41,151)                (25,000)
    Decrease in marketable securities                                              0                   9,000
                                                                         ------------            ------------
        Net Cash Flows (Used) by Investing Activities                       (245,430)                (98,383)
                                                                         ------------            ------------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
    Issuance of convertible preferred stock                                2,230,000                       0
    Proceeds from short term loan                                            150,000                       0
    Proceeds from short term loan - officer                                   30,000                  60,000
    Principal payment of short term loan - officer                           (30,000)                      0
    Principal payment of short term debt                                    (450,000)                      0
                                                                         ------------            ------------
        Net Cash Flows Provided by Financing Activities                    1,930,000                  60,000
                                                                         ------------            ------------
NET INCREASE (DECREASE) IN CASH                                              923,076                (504,539)

CASH AT THE BEGINNING OF THE PERIODS                                         106,095                 515,920
                                                                         ------------            ------------
CASH AT THE END OF THE YEAR                                              $ 1,029,171             $    11,381
                                                                         ============            ============
ADDITIONAL DISCLOSURES:
    Interest paid                                                        $     6,147             $         0
                                                                         ===========             ===========
    Income taxes paid                                                    $     2,400             $       800
                                                                         ===========             ===========
</TABLE>

The  Accompanying  Notes  are an  Integral  Part of the  Consolidated  Financial
Statements

<PAGE>6
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


NOTE 1 - MANAGEMENT'S STATEMENT

     In  the  opinion  of  management,   the  accompanying  unaudited  financial
statements  contain all  adjustments  (all of which are normal and  recurring in
nature)  necessary to present fairly the financial  position of iVideoNow,  Inc.
and  Subsidiaries  (the  Company)  at  September  30,  2000,  and the results of
operations  and the cash flows for the quarter and  year-to-date  periods  ended
September 30, 2000 and 1999.

     The notes to the Condensed  Consolidated  Financial  Statements,  which are
incorporated  by  reference  into  the  1999  Form  10-SB,  should  be  read  in
conjunction with these financial statements.

NOTE 2 - USE OF ESTIMATES

     The  preparation  of financial  statements,  in conformity  with  generally
accepted  accounting  principles,  requires  management  to make  estimates  and
assumptions that affect certain  reported amounts and disclosures.  Accordingly,
actual results could differ from those estimates.

NOTE 3 - SHAREHOLDERS' EQUITY

Common Stock

     In  connection  with the March 14, 2000 private  placement  of  convertible
preferred  stock,  the Company issued 100,000 warrants to the buyers and 200,000
warrants to the  underwriters.  Each warrant may be converted  into one share of
new common stock at an exercise  price equal to 110% of the closing bid price of
the common stock on March 14, 2000.  The warrants  expire on May 13, 2003. As of
September 30, 2000, all 300,000 warrants remained outstanding.

Preferred Stock

     In  connection  with the March 14, 2000 private  placement  of  convertible
preferred  stock,  the  Company  has  2,500  shares of  Series  "A"  Convertible
Preferred  Stock,  par value of $0.01  outstanding as of September 30, 2000. The
preferred  shares  are  convertible,  in whole or in part,  at the option of the
holders thereof,  into  non-assessable  shares of common stock. Upon conversion,
the number of common stock received for each preferred  share will be calculated
by dividing the conversion amount by the conversion price. The conversion amount
is the sum of any accrued and unpaid  dividends  and the stated  value of $1,000
per preferred  share.  The conversion  price would be either 125% of the closing
bid price on the issuance  date, or the average of 75% of the lowest closing bid
prices of the common  stock  during any three (3) trading days during the twenty
(20) consecutive trading days ending on and including any date of determination,
whichever is lower.

     Holders of the  preferred  shares are entitled to receive  cumulative  cash
dividends at the annual rate of 6% when the shares are converted.  At the option
of the holders,  dividends may be paid in shares of common stock or in cash. The
preferred shares mature on May 13, 2003.

     Holders of the preferred  shares have no voting rights,  except as required
by law, including but not limited to the General Corporation Law of the State of
Delaware.  All preferred  shares rank senior to the common stock.  The preferred
shares have  liquidation  preferences that equal the sum of the stated value and
any accrued and unpaid  dividends.  The preferred shares are redeemable,  at the
option  of the  Company,  for  consideration  equal  to 120% of the  liquidation
preference.


<PAGE>7

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


NOTE 3 - STOCKHOLDERS' EQUITY (Continued)

     As of September 30, 2000, none of the convertible preferred shares relating
to the March 14, 2000 private placement have been converted to common stock. The
following is an analysis of activities in the Stockholders'  Equity for the nine
months ended September 30, 2000:

<TABLE>
<S>                          <C>     <C>      <C>       <C>       <C>          <C>            <C>        <C>

                                                                                   Comp-
                                  Preferred      Common Stock      Additional    rehensive
                              --------------  ------------------     Paid-In       Income     Retained
                              Shares  Amount   Shares     Amount     Capital       (Loss)     (Deficit)         Balance
                              ------ ------  ---------  -------  -------------  ----------  ------------   ------------

Balance at 12/31/99              --     --   6,658,631   $6,659   $ 1,482,594   $  (2,747)  $(1,319,498)   $   167,008
March 14, 2000
   Preferred stock issued     2,500  $  25          --       --     2,229,975          --            --      2,230,000
September 30, 2000
  Unrealized holding (loss)      --     --          --       --            --    (115,625)           --       (115,625)

   Net (loss)                    --     --          --       --            --          --      (763,911)      (763,911)
                              ------ ------  ---------  -------  -------------  ----------  ------------   ------------
Balance at 9/30/00            2,500  $  25   6,658,631   $6,659   $ 3,712,569   $(118,372)  $(2,083,409)   $ 1,517,472
                              ====== ======  =========  =======  =============  ==========  ============   ============

</TABLE>


NOTE 4 - STOCK OPTION PLANS

     The Company  has  elected to follow  Accounting  Principles  Board  Opinion
(APBO) No. 25,  "Accounting  for Stock Issued to Employees,"  and to provide the
disclosures  required under Statement of Financial  Accounting  Standards (SFAS)
No. 123,  "Accounting for Stock-Based  Compensation." In electing to follow APBO
No. 25, the Company does not recognize any  compensation  expense related to the
granting  of any stock  options,  as no options are granted at a price below the
market price on the day of grant.

     The Company's 1999 stock option plan provides  incentive  stock options and
nonqualified  stock options to purchase common stock. The options may be granted
to  directors,  officers,  key  employees,  consultants  and  subsidiaries.  The
exercise  price  can be up to  110%  of  market  price  at the  date  of  grant.
Generally,  options are exercisable in equal  installments over three years from
the date of grant,  and expire  five to ten years from the date of grant.  As of
September 30, 2000, 750,000 shares were approved to be issued under the plan, of
which 85,000 shares were available for future plans.

Presented  below is a summary of stock  option  plan  activity  for the  periods
shown:

<TABLE>
<S>                                                <C>                 <C>

                                                                        Weighted Average
                                                     Stock Options       Exercise Price
                                                    ---------------    -----------------

Outstanding at December 31, 1999                           295,000     $           5.17
Granted                                                    370,000     $           1.87
Exercised                                                       --                   --
Forfeited                                                       --                   --
Expired                                                         --                   --
                                                    ---------------    -----------------

Outstanding at September 30, 2000                          665,000     $           3.39
                                                    ===============    =================

Shares exercisable at September 30, 2000                    96,333     $           5.17
                                                    ===============    =================

</TABLE>

NOTE 4 - STOCK OPTIONS (Continued)

    Exercise prices for options  outstanding as of September 30, 2000 range from
$0.50  to  $5.50.  The  following  table  summarizes   information  for  options


<PAGE>8
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

outstanding and exercisable at September 30, 2000:

<TABLE>
          <S>            <C>          <C>                  <C>               <C>          <C>

                                       Options Outstanding                       Options Exercisable
                         -------------------------------------------------  ------------------------------
                                          Weighted           Weighted
                                           Average           Average           Stock         Weighted-
          Exercise       Stock Options    Exercise          Remaining         Options         Average
           Prices         Outstanding       Price       Contractual Life    Exercisable   Exercise Price
       ----------------  ----------------------------- -------------------  ------------- ----------------
            $5.00           300,000         $5.00             2.5              66,000          $5.00
            $5.50           100,000         $5.50             2.0              33,333          $5.50
            $0.50           265,000         $0.50             3.0                   0          $0.50
                         ---------------                                    -------------
                            665,000                                            99,333
                         ===============                                    =============

</TABLE>

     In electing  to  continue  to follow  APBO No. 25 for  expense  recognition
purposes,  the Company is obligated to provide the expanded disclosures required
under SFAS No. 123 for stock-based  compensation  granted in 2000. This includes
materially  different  information from reported  results,  such as proforma net
income and earnings per share, had  compensation  expense relating to the period
ended  September  30,  2000  grants  measured  under the fair value  recognition
provisions of SFAS No. 123.

     Because the  weighted  average fair values at date of grant   were the same
as the market values during the period ended  September 30, 2000,  the Company's
net income and  earnings  per share will be the same as the  proforma net income
and earnings per share.  Therefore,  the Company's proforma  information has not
been presented.

     The weighted average fair value at date of grant for options granted during
the  period  ended  September  30,  2000 was $3.39 and was  estimated  using the
Black-Scholes  option  valuation  model  with  the  following   weighted-average
assumptions:

                                                              2000
                                                          -------------
       Expected life in years                                   5
       Interest Rate                                          5.0%
       Volatility                                            33.0%
       Dividend Yield                                           0%

NOTE 5 - SEGMENT INFORMATION

   Prior to August  1999,  the Company  operated in one  business  segment,  the
production  of custom  CD-ROM's,  through its wholly  owned  subsidiary  Digital
Corporate  Profiles  (DCP). In August 1999, the Company began to provide graphic
design services to its clients  through its wholly owned  subsidiary DXF  Design
(DXF). Inter-company transactions between the two entities are immaterial.

<PAGE>9
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


NOTE 5 - SEGMENT INFORMATION (Continued)

Information concerning operations in different lines of business for the quarter
and nine months ended September 30, 2000 is presented below.

Segment Results for the Quarter Ended September 30, 2000:

<TABLE>
<S>                                                  <C>                 <C>            <C>

                                                             CD-ROM
                                                          Design and         Graphic
 For the Quarter Ended September 30, 2000                 Development        Design         Consolidated
----------------------------------------------------  ----------------   ---------------  ----------------
Net Operating Revenues                                $        20,225    $       72,350   $        92,575
Operating Income/(Loss)                                      (341,164)          (13,646)         (354,810)
Identifiable Operating Assets                               1,296,437           117,410         1,413,847
Depreciation and Amortization                         $        71,177    $        3,513   $        74,690


Segment Results for the year-to-date ended September 30, 2000:

                                                           CD-ROM
                                                         Design and          Graphic
 For the Year-to-Date Ended September 30, 2000           Development         Design         Consolidated
----------------------------------------------------  ----------------   ---------------  ----------------

Net Operating Revenues                                $       104,900    $      321,580   $       426,480
Operating Income/(Loss)                                      (843,407)           42,089          (801,319)
Identifiable Operating Assets                               1,296,437           117,410         1,413,847
Depreciation and Amortization                         $        71,177    $        3,513   $        74,690

</TABLE>


     Identifiable operating assets include cash, available-for-sale  securities,
trade accounts receivable, and fixed assets. For the nine months ended September
30, 2000, 100% of the revenue generated by Digital  Corporate  Profiles was from
one customer.

NOTE 6 - CONCENTRATION OF CREDIT RISK

     The Company maintains its cash balances at several  financial  institutions
located in  Southern  California.  The  Federal  Deposit  Insurance  Corporation
insures balances up to $100,000.  At September 30, 2000, the Company's uninsured
cash balance totaled $768,856.

NOTE 7 - MARKETING DISCOUNTS

     The Company has recognized $40,000 in marketing discounts during the period
ended September 30, 2000. These marketing  discounts relate to the completion of
CD-ROM  production  contracts.  Marketing  discounts  are  applied  to the gross
contract amounts,  the net of which is normally paid in cash by the client.  The
gross contract  amounts are booked as revenue by the Company,  and any marketing
discounts  are  recognized  as marketing  expenses  during the same period.  The
Company bases the value of the marketing  discounts on its  historical  costs to
expose and distribute the CD-ROM  products to prospective  clients.  Each CD-ROM
product  bears the  Company's  subsidiary  name Digital  Corporate  Profiles and
provides the end-user contact  information.  Many of the CD-ROM products created
by DCP are distributed at trade shows or in mailers,  providing the Company with
exposure to many prospective clients.


<PAGE>10
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

NOTE 8 - EARNINGS PER SHARE

     Fully  diluted per share data is not  presented,  as the  effects  would be
antidilutive.

     This  Form  10-QSB  includes  "forward-looking"   statements  about  future
financial  results,  future business  changes and other events that have not yet
occurred.  For  example,  statements  like we "expect,"  we  "anticipate"  or we
"believe"  are  forward-looking  statements.  Investors  should be aware  actual
results may differ materially from our expressed  expectations  because of risks
and  uncertainties  about  the  future.  We  do  not  undertake  to  update  the
information in this Form 10-QSB if any forward-looking statements later turn out
to be inaccurate.  Details about risks affecting various aspects of our business
are discussed  throughout  this Form 10-QSB.  Investors  should take these risks
into consideration.

                               FINANCIAL CONDITION

     The overall financial  condition of the Company remains stable at September
30, 2000. Cash reserves and other current assets of  approximately  $1.1 million
will provide the Company with the necessary resources to continue developing new
Internet  multi-media  technologies as well as refining current products for the
remainder  of the fiscal year and into the  upcoming  fiscal  year.  The Company
continues to operate without  accumulating  any debt other than normal operating
liabilities.

                              RESULTS OF OPERATIONS

     Operations  for the quarter ended  September 30, 2000 resulted in a loss of
$354,810  and a  year-to-date  loss   of   $801,319.  Operating  losses  for the
comparable   periods  ended   September  30,  1999  were  $53,430  and  $269,076
respectively.  The  comprehensive  loss for the quarter ended September 30, 2000
was $409,468. The comprehensive loss amount includes the impact of an unrealized
holding  loss of $78,750  related  to the  decline  in value of  securities  and
investments held by the Company.

Revenues

     For the quarter ended September 30, 2000 and the year-to-date  period ended
September   30,   2000,   consolidated   revenues   were  $92,575  and  $426,480
respectively.  Revenues for the third quarter 2000 decreased  approximately  60%
when compared to the same quarter of 1999. Revenues decreased  approximately 20%
when  comparing  the nine months ended results of September 30, 2000 to the same
period in 1999. One reason the Company has experienced these drops in revenue is
due  to a  decrease  in  the  number  of  CD-ROM's  produced  by  the  Company's
subsidiary, DCP. During the quarter ended September 30, 2000, DCP completed work
on one custom CD-ROM while it researched new production  techniques.  During the
same quarter ended  September  30, 1999,  DCP completed or was in the process of
completing work on approximately  four custom CD-ROM's.  It cannot be determined
if this quarterly decrease in CD-ROM production indicates a trend or a result of
seasonal production changes.

     Revenue  generated by graphic design services provided through DXF remained
relatively flat when compared to the previous quarter. Revenues generated by DXF
are  generally  lower  during  the  second  and  third  quarters  due to  normal
entertainment  industry cycles.  As television  production in the  entertainment
industry slows, the amount of design services provided to entertainment industry
clients  decreases.  DXF expects design services to its  entertainment  industry
clients to increase in the fourth quarter as the new  television  production and
rating season begins.

Cost of Sales and Operating Expenses

     Consolidated cost of sales, as a percent of revenue,  was approximately 72%
during the three months ended  September 30, 2000.  This compares to 27% for the
six months  ended June 30,  2000.  The  increased  cost of sales was a result of
production changes implemented by both DCP and DXF. DCP's direct costs increased
as its Internet service delivery system for the iVideoNow!  player was improved.
The capacity  increases  required to stabilize the player resulted in additional
monthly service provider fees.  These additional  direct costs will be offset in
the future by revenues generated by the player.  DXF's direct costs increased as
a result of retaining  independent  artists and  designers to complete  specific
projects.

<PAGE>11
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)


                        RESULTS OF OPERATIONS (Continued)

Cost of Sales and Operating Expenses (Continued)

     By  utilizing  independent  artists,  DXF's  primary  designer can focus on
expanding DXF's client base without jeopardizing the integrity and reputation of
its design services.

     Operating  expenses  during  the three  months  ended  September  30,  2000
increased  to  $380,422  as compared  to  $269,782  for the same  quarter  ended
September 30, 1999.  Year-to-date  amounts  increased to $1,071,483 for the nine
months ended  September 30, 2000 as compared to $713,548  during the same period
in 1999.  The most  significant  increase is for payroll.  During the first nine
months  of 2000 the  Company  expanded  its  sales,  design  and  administrative
personnel in preparation of launching and marketing the iVideoNow!  player.  The
Company  believes it will be able to  effectively  operate at its current  staff
level  and does not  anticipate  any  significant  personnel  additions  for the
remainder  of the year.  The  increase  in  payroll  costs is offset by a steady
decrease in outside  service  costs.  The  Company  has become  less  reliant on
outside  consultants  and  professionals  as it  develops  and  refines  its own
in-house  expertise.  Increases in legal and accounting expenses are a result of
changes and increases in mandatory filing and security registration requirements
related to a publicly traded entity.

Liquidity and Sources of Capital

     During the nine months ended September 30, 2000 cash used by operations was
$761,494,  and  cash  for  investing  activities  was  $245,430.  Cash  used  by
operations is primarily a result of a net operating loss of $763,911  during the
nine-month period. In addition, both accounts receivable and current liabilities
have  increased  during  the same  nine-month  period.  Cash used for  investing
activities  during the nine months ended September 30, 2000 consists of $118,152
for property and equipment, $86,127 in program and development costs and $41,151
in advances. Property and equipment expenditures are related to the expansion of
the corporate  offices and  additional  furniture to  accommodate  the Company's
growing  personnel  requirements.   Program  and  development  costs  relate  to
continued  efforts to refine the  iVideoNow!  player  and its  delivery  system.
Development  costs during the fourth  quarter are expected to remain  consistent
with the  levels  experienced  during the first  nine  months of the year.  Cash
proceeds  from  financing  activities  of  $1,930,000 is a result of the private
placement of 2,500 shares of convertible  preferred stock as well as the payment
of all short-term debt.
                                     OUTLOOK

     The Company  concentrates  on providing  complete  multi-media and Internet
communication  solutions  customized  to meet the specific  needs of each of its
corporate clients. The iVideoNow!  player has completed the majority of its beta
testing and will be ready for a full  public  launch  shortly.  During this past
quarter,  European  testing  partners  began  using the  iVideoNow!  player as a
marketing and promotional  tool. The Company  believes it is positioned to offer
client's  effective  communication  solutions  through  the  combination  of its
iVideoNow!  player,  custom designed  CD-ROM's and graphic design services.  The
Company's cash reserves should allow for continued operations into 2001.

PART II.  OTHER INFORMATION

Item 5.  Other Information

     As of June 15, 2000, the Company  formerly  changed its name to "iVideoNow,
Inc." to more  accurately  reflect the  Company's  emphasis  on  Internet  based
production services.

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits - None
(b)      Reports on Form 8-K - None


<PAGE>12

SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                             iVideoNow, Inc.




Dated: November 14, 2000               By: /s/ PETER B. Dunn
                                           ----------------------------
                                           Peter B. Dunn, President