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  June 30,  2001

     [ ]  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 June 30, 2001, 8,648,631 shares of Common Stock were outstanding.













                                       1
<PAGE>
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)

     THE JUNE 30, 2001 FINANCIAL STATEMENTS WERE NOT AUDITED OR REVIEWED BY
                            INDEPENDENT ACCOUNTANTS




                                      INDEX

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

 ITEM 1 - Financial Statements

   Independent Accountants' Report                                     N/A

   Condensed Consolidated Balance Sheet
      (Unaudited) as of June 30, 2001                                   3

   Condensed Consolidated Statements of Operations
      (Unaudited)For the Quarters and Year-To-Date
       Periods Ended June 30, 2001 and 2000                             4

   Condensed Consolidated Statements of Cash Flows
      (Unaudited)For the Year-To-Date Periods
       Ended June 30, 2001 and 2000                                     5

   Selected Information - Substantially All Disclosures
      Required by Generally Accepted Accounting Principles
       are Not Included                                               6 - 7

 ITEM 2 - Management's Discussion And Analysis Of Financial
          Condition And Results Of Operations                         8 - 9




















                                       2
<PAGE>
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                          PART 1: FINANCIAL INFORMATION
                          ITEM 1: FINANCIAL STATEMENTS
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2001
             (UNAUDITED AND NOT REVIEWED BY INDEPENDENT ACCOUNTANTS)

                                     ASSETS
CURRENT ASSETS
     Cash                                                    $          (2,681)
     Accounts receivable - trade                                        12,400
     Investments                                                        25,010
                                                            ------------------
              Total Current Assets                                      34,729
                                                            ------------------
PROPERTY AND EQUIPMENT,
  net of accumulated depreciation                                      255,409

PROGRAM DEVELOPMENT COSTS,
  net of accumulated amortization                                       14,718

OTHER ASSETS
     Officer Loans                                                     105,466
     Deposits                                                               --
                                                            ------------------
              Total Other Assets                                       105,466
                                                            ------------------
              Total Assets                                   $         410,322
                                                            ==================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable and accrued expenses                   $          84,171
     Other liabilities                                                   3,659
                                                            ------------------
              Total Current Liabilities                                 87,830
                                                            ------------------
STOCKHOLDERS' EQUITY
     Preferred  stock,  par value $.01 per share;  20,000,000
       shares authorized, 2,500 shares issued and outstanding               --
     Common  stock,  par value  $.001 per  share;  80,000,000
       shares   authorized,   8,648,631   shares  issued  and
       outstanding                                                       8,649
     Additional paid-in capital                                      3,710,605
     Accumulated other comprehensive (loss)                           (119,612)
     Retained (deficit)                                             (3,277,149)
                                                            ------------------
              Total Stockholders' Equity                               322,492
                                                            ------------------
              Total Liabilities and Stockholders' Equity     $         410,322
                                                            ==================
       See The Accompanying Selected Information to Unaudited Consolidated
                              Financial Statements

                                       3
<PAGE>
                        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 JUNE 30, 2001 AND 2000
             (UNAUDITED AND NOT REVIEWED BY INDEPENDENT ACCOUNTANTS)
                                For the Quarter Ended    For The Year-To-Date
                                       June 30,           Periods Ended June 30,
                               -----------------------  ------------------------
                                  2001        2000           2001        2000
                               -----------  ----------   ----------- -----------
REVENUE                        $    17,900  $   119,625  $   130,917 $  333,905
COST OF SALES                      100,913       18,259      163,466     89,372
                               -----------  -----------  ----------- ----------
  Gross Profit/(Loss)              (83,013)     101,366      (32,549)   244,533
                               -----------  -----------  ----------- ----------
OPERATING EXPENSES
  Accounting                        12,808        9,176       23,807     36,180
  Legal                              4,451       21,366        4,635     52,756
  Marketing                         10,556       47,652       30,611     56,029
  Outside services                   4,438       12,340       15,710     40,630
  Payroll expenses                 174,352      169,235      395,433    293,121
  Rent                              21,807       25,150       46,726     43,839
  Other                            121,547      108,329      228,522    165,286
                               -----------  -----------  ----------- ----------
     Total Operating Expenses      349,959      393,248      745,445    687,841
                               -----------  -----------  ----------- ----------
     Income/(Loss)from Operations (432,972)    (291,882)    (777,994)  (443,308)

OTHER INCOME/(EXPENSE)
  Rental income                      4,860        3,000        9,720      6,000
  Interest income                       70       13,391        5,979     13,391
  Other expense                         --       (1,475)          --     (5,276)
  Realized (loss)on sale of securities  --           --           --         --
                               -----------  -----------  ----------- ----------
     Income/(Loss) Before Taxes   (428,042)    (276,966)    (762,296)  (429,193)

(PROVISION) FOR INCOME TAX            (800)      (1,600)        (800)    (2,400)
                                ----------  -----------  ----------- ----------
     Net Income/(Loss)            (428,842)    (278,566)    (763,096)  (431,593)

OTHER COMPREHENSIVE INCOME (net of tax)
  Unrealized holding gain/
      (loss) on investments             --      (60,000)          --    (36,875)
  Reclassification of loss
     included in net income             --           --           --         --
                                ----------  -----------  ----------- ----------
     Comprehensive Income/(Loss)$ (428,842) $  (338,566) $  (763,096)$ (468,468)
                                ==========  ===========  =========== ==========
(Loss) per share and common
          share equivalents     $     (.05) $      (.05) $      (.09)$     (.07)
                                ==========  ===========  =========== ==========
Weighted average common
         shares outstanding      8,649,864    6,649,864    8,649,864  6,649,864
                                ==========  ===========  =========== ==========
       See The Accompanying Selected Information to Unaudited Consolidated
                              Financial Statements
                                       4
<PAGE>
                        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 JUNE 30, 2001 AND 2000
             (UNAUDITED AND NOT REVIEWED BY INDEPENDENT ACCOUNTANTS)

                                                           2001          2000
                                                        ----------  ------------
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
  Net (loss)                                             $(763,096)  $ (431,593)
   Adjustments to reconcile net (loss) to net
     cash provided (used) by operating activities:
   Amortization and depreciation                           138,136       28,211
   (Increase) decrease in accounts receivable               55,785       12,695
   (Decrease) in current liabilities and accrued expenses   25,862      (23,925)
   (Increase) in receivables from employees                     --           --
   (Decrease) in deferred rent credit                           --      (10,000)
   (Increase) in deposits                                       --         (922)
                                                         ---------   ----------
     Net Cash Flows (Used) by Operating Activities        (543,313)    (425,534)
                                                         ---------   ----------
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
   Acquisition of property and equipment                  (101,166)    (105,550)
   (Increase) in program development cost                  (11,280)     (69,127)
   (Increase) in loan receivable - officer                 (29,044)     (23,601)
   Decrease in marketable securities                            --           --
                                                         ---------   ----------
     Net Cash Flows (Used) by Investing Activities        (141,490)    (198,278)
                                                         ---------   ----------
























                                       5
<PAGE>
                        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 JUNE 30, 2001 AND 2000
             (UNAUDITED AND NOT REVIEWED BY INDEPENDENT ACCOUNTANTS)
                                  (CONTINUED)


                                                           2001          2000
                                                        ----------  ------------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
    Issuance of convertible preferred stock                     --    2,230,000
    Proceeds from short term loan                               --      150,000
    Proceeds from short term loan - officer                     --       30,000
    Principal payment of short term loan - officer              --      (30,000)
    Principal payment of short term debt                        --     (450,000)
                                                         ---------   ----------
     Net Cash Flows Provided by Financing Activities            --    1,930,000
                                                         ---------   ----------
NET INCREASE (DECREASE) IN CASH                           (684,804)   1,306,188

CASH AT THE BEGINNING OF THE PERIODS                       682,123      106,095
                                                         ---------   ----------
CASH AT THE END OF THE YEAR                              $  (2,681)  $1,412,283
                                                         =========   ==========
ADDITIONAL DISCLOSURES:
    Interest paid                                        $      --   $    6,147
                                                         =========   ==========
    Income taxes paid                                    $     800   $    2,400
                                                         =========   ==========



















       See The Accompanying Selected Information to Unaudited Consolidated
                              Financial Statements

                                       6

<PAGE>
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                                  JUNE 30, 2001
             (UNAUDITED AND NOT REVIEWED BY INDEPENDENT ACCOUNTANTS

NOTE 1 - INDEPENDENT ACCOUNTANTS REPORT

     The  financial  statements  for the  period  ended  June 30,  2001 were not
audited nor reviewed by an independent accounting firm.

NOTE 2 - MANAGEMENT'S STATEMENT

     In the opinion of management, the accompanying unaudited (and not reviewed)
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 June 30, 2001, and the results
of operations and the cash flows for the quarter and year-to-date  periods ended
June 30, 2001 and 2000.

     The notes to the Consolidated  Financial  Statements which are incorporated
by reference into the 2000 Form 10-SK should be read in  conjunction  with these
Consolidated Financial Statements.

NOTE 3 - 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 4 - 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
June 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 June  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

                                       7
<PAGE>
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                                  JUNE 30, 2001
             (UNAUDITED AND NOT REVIEWED BY INDEPENDENT ACCOUNTANTS

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.

     In June??,  all the convertible  preferred  shares relating to the March
14, 2000 private placement were converted into 2,000,000 shares of common stock.
The parties  holding the  preferred  shares on that date elected to convert each
share of  convertible  preferred  stock into 800 shares of the company's  common
stock.  Management of the company renegotiated the previously mentioned terms of
the original  agreement to minimize the diluting effect on ownership  associated
with the continually falling price of the company's stock.

NOTE 5 - SEGMENT INFORMATION

     Information  concerning  operations in different  lines of business for the
quarter and nine months ended June 30, 2001 is presented below.

Segment Results for the Quarter Ended June 30, 2001:

  For the Quarter Ended June 30, 2001       DCP           DXF     Consolidated
------------------------------------- ------------- ------------ ---------------
Net Operating Revenues                $       (500) $    18,400   $      17,900
Operating Income/(Loss)                   (379,039)     (27,626)       (406,665)
Identifiable Operating Assets              732,189       60,139         792,328
Depreciation and Amortization         $    439,969  $    13,431   $     453,400

Segment Results for the year-to-date ended June 30, 2001:

  For the Quarter Ended June 30, 2001       DCP           DXF     Consolidated
------------------------------------- ------------- ------------ ---------------
Net Operating Revenues                $      1,000  $   133,167   $     134,167
Operating Income/(Loss)                   (768,077)       3,583        (777,994)
Identifiable Operating Assets              732,189       60,139         792,328
Depreciation and Amortization         $    439,969  $    13,431   $     453,400

     Identifiable operating assets include cash, available-for-sale  securities,
trade accounts receivable, and fixed assets.

NOTE 6 - EARNINGS PER SHARE

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

NOTE 7 - SUBSEQUENT EVENT

      The Company halted its operations and laid off all of its employees during
the month of July 2000.  The  continual  net losses  experienced  by the Company
finally resulted in the expenditure of all its cash reserves. Additional outside
financing was sought but never  secured.  A formal  dissolution of the corporate
assets is being formulated by its President, Peter Dunn.
                                       8
<PAGE>
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
    ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

     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 financial condition of the Company at December 31, 2000 resulted in our
auditors expressing a going concern in their audit report due to inadequate cash
reserves. In July 2001 the Company used the last of its cash reserves and had to
halt  its  operations  and  lay-off  all of its  employees.  A  formal  plan  of
dissolution is currently being orchestrated by its President, Peter Dunn.

                              RESULTS OF OPERATIONS
                              ---------------------
     Operations  during the six months ended June 30, 2001 resulted in a loss of
$777,994  as compared to an  operating  loss of $443,308  during the same period
ended June 30,  2000.  Comprehensive  losses were  $763,096 and $468,468 for the
periods  June 30, 2001 and June 30,  2000  respectively.  Comprehensive  amounts
include the impact of rental income,  interest and  unrealized  holding gains or
losses.

Revenues
--------
     Consolidated  revenues for the six months ended June 30, 2001  decreased to
$130,917 from $333,905 for the same period ended June 30, 2000. The consolidated
revenue decrease is the result of no iVideoNow system sales by Digital Corporate
Profiles  (DCP) and a sharp decline in graphic design  services  provided by DXF
Design (DXF).  DCP's efforts to market and sell its Internet video  application,
the iVideoNow  System was not successful.  DXF's revenues  decreased due to lost
clients. These particular clients began to perform their own art design in-house
as opposed to using DXF's independent services.

Cost of Sales and Operating Expenses
------------------------------------
     Cost of sales as a percent  of  revenue  increased  to 125%  during the six
months  ended June 30, 2001 as compared to 27% in the same period of 2000.  This
increase is primarily a result of an increase in amortization expenses allocated
to cost of sales.  The increase  reflects the  amortization of costs  associated
with developing the iVideoNow  System over a two-year period.  As a result,  the
Company's  gross profit  decreased to $(32,549)  during the period ended June 30
2001 from $244,533 of revenue during the same period of 2000.

                                       9
<PAGE>
                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (Formerly Known as DIGS, Inc.)
    ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS

     Operating  expenses  during the period  ended June 30,  2001  increased  to
$745,445  as  compared  to  $687,841  during the same  period in 2000.  The most
significant   operating  expense  increase  is  for  payroll.  The  Company  had
previously  expanded its staff of programmers,  marketers and  administrators to
accommodate  and guide the  expected  growth of the  Company as  compared to the
prior year. Research and development expenses increased as a result of expedited
efforts to refine the iVideoNow System as well as research future adaptations of
the system.  Professional  fees (accounting and legal)  decreased  significantly
because the Company did not incur any SB-2 or other  registrations  fees similar
to those incurred for the March 14, 2000 private placement of preferred stock.


Liquidity and Sources of Capital
--------------------------------
     During  the six  months  ended  June 30,  2001,  cash  used  for  operating
activities  was $543,313,  and cash used for investing  activities was $141,490.
The cash  used for  operations  is a result of a net  operating  loss as well as
changes in accounts  receivable  and accounts  payable.  Cash used for investing
activities consisted of $101,166 for property and equipment,  $11,280 in program
development  costs  and  $29,044  in  officer  advances.  Officer  advances  are
short-term  notes bearing 5% interest.  No additional  cash was used or provided
through financing activities during the quarter.

                                     OUTLOOK
                                     -------
     The Company's  efforts to market and sell the iVideoNow System proved to be
unsuccessful.  In July 2001 the  company  laid off all of its  employees  and is
currently finalizing its plan of dissolution.


PART II.  OTHER INFORMATION

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

                  None

(b)      Reports on Form 8-K

                  None






                                       10
<PAGE>
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:  August 20, 2001               By:        /s/ Peter B. Dunn
                                                 -----------------------------
                                                 Peter B. Dunn, President












































                                       11