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  March 31, 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 March 31, 2001, 6,648,631 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 May 10,2001 was $353,848.








                                       i
<PAGE>

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (formerly known as DIGS, Inc.)







                                TABLE OF CONTENTS

                                                                       Pages
                                                                   ------------

PART 1: FINANCIAL INFORMATION

ITEM 1 - Financial Statements

      Independent Accountants' Report                                   2

      Condensed Consolidated Balance Sheet
        (Unaudited) as of March 31, 2001                                3

      Condensed Consolidated Statements of Operations (Unaudited)
        For the Three Months Ended March 31, 2001 and 2000              4

      Condensed Consolidated Statements of Cash Flows (Unaudited)
        For the Three Months Ended March 31, 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 - 11





















                                       1
<PAGE>




                         INDEPENDENT ACCOUNTANTS' REPORT





May 4, 2001


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 March 31, 2001, the related  condensed
consolidated  statements of operations and the condensed consolidated statements
of cash  flows for the  three  months  ended  March  31,  2001 and  2000.  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.




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















                                       2
<PAGE>

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (formerly known as DIGS, Inc.)
                          PART 1: FINANCIAL INFORMATION
                          ITEM 1: FINANCIAL STATEMENTS
                      CONDENSED CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2001
                                   (UNAUDITED)

                                     ASSETS
CURRENT ASSETS
     Cash                                                  $         226,810
     Marketable equity securities                                     25,010
     Accounts receivable - trade                                       7,500
     Loan receivable - officers                                      207,242
                                                         -------------------
             Total Current Assets                                    466,562

PROPERTY AND EQUIPMENT, at cost
  net of accumulated depreciation                                    277,392

PROGRAM DEVELOPMENT COSTS,
  net of accumulated amortization                                    101,605
                                                         -------------------
             Total Assets                                  $         845,559
                                                         ===================

                      LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES
     Accounts payable - trade                              $          93,355
     Other                                                             2,400
                                                         -------------------

             Total Current Liabilities                                95,755

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,   6,648,631  shares  issued  and
       outstanding
                                                                       6,649
     Additional paid-in capital                                    3,712,579
     Accumulated other comprehensive income (loss)                  (119,612)
     Retained (deficit)                                           (2,849,837)
                                                         -------------------
             Total Stockholders' Equity                              749,804
                                                         -------------------
             Total Liabilities and Stockholders' Equity    $         845,559
                                                         ===================

    See Accompanying Selected Information to Unaudited Condensed 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 THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                   (UNAUDITED)

                                                 For the Three Months Ended
                                                         March 31,
                                               -------------------------------
                                                   2001            2000
                                               --------------  ---------------

REVENUE                                         $     113,017   $    214,280

COST OF SALES                                          62,553         71,113
                                               --------------  -------------
        Gross Profit                                   50,464        143,167
                                               --------------  -------------
OPERATING EXPENSES
    Automobile                                         13,051          8,506
     Insurance                                         17,161          7,597
     Marketing                                         20,055         29,368
    Outside services                                   11,273          7,300
    Payroll                                           194,500        123,886
     Professional services                             11,184         58,394
     Rent                                              24,920         23,074
    Research and Development                           22,500             --
    Other                                              80,772         36,469
                                               --------------  -------------
        Total Operating Expenses                      395,416        294,594
                                               --------------  -------------
        (Loss) From Operations                       (344,952)      (151,427)

OTHER INCOME (EXPENSE)                                 10,768           (801)
                                               --------------  -------------
        (Loss) Before Income Taxes                   (334,184)      (152,228)

(PROVISION) FOR INCOME TAX                             (1,600)          (800)
                                               --------------  -------------
        Net (Loss)                                   (335,784)      (153,028)

OTHER COMPREHENSIVE INCOME, net of tax;
    Unrealized holding gain arising during period          --         23,125
                                               --------------  -------------
        Comprehensive Income (Loss)             $    (335,784)  $   (129,903)
                                               ==============  =============
        (Loss)  per  common  share and
         common  share equivalent               $       (0.05)  $      (0.02)
                                               ==============  =============
Weighted average common shares outstanding          6,648,631      6,649,864
                                               ==============  =============

    See Accompanying Selected Information to Unaudited Condensed 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 THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                   (UNAUDITED)

                                                            2001          2000
                                                        -----------  -----------

CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
  Net income (loss)                                     $(335,784)   $ (153,028)
  Adjustments to reconcile net (loss) to net cash
  provided(used) by operating activities:
  Amortization and depreciation                            37,792        14,043
  Decrease (increase) in accounts receivable               60,685       (55,020)
  Increase (decrease) in current liabilities and
    accrued expenses                                       33,786       (48,662)
  (Increase) in deposits                                       --          (922)
  (Decrease) in deferred rent credit                           --        (5,000)
                                                        ---------    ----------
       Net Cash Flows (Used) by Operating Activities     (203,521)     (248,589)
                                                        ---------    ----------
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
  Acquisition of property and equipment                   (93,229)      (49,906)
  (Increase) in program development cost                  (27,743)      (59,127)
  (Increase) in loan receivable - officer                (133,462)      (20,000)
  Proceeds from loan receivable                             2,642            --
                                                        ---------    ----------
        Net Cash Flows (Used) by Investing Activities    (251,792)     (129,033)
                                                        ---------    ----------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
  Proceeds from issuance of preferred stock                    --     2,230,000
  Proceeds from issuance of short-term debt                    --       150,000
  Proceeds from short-term loan - officer                      --        30,000
  Principal payment of short-term loan - officer               --       (30,000)
  Principal payment of short-term debts                        --      (450,000)
                                                        ---------    ----------

        Net Cash Flows Provided by Financing Activities        --     1,930,000
                                                        ---------    ----------
NET INCREASE (DECREASE) IN CASH                          (455,313)    1,552,378

CASH AT THE BEGINNING OF THE PERIOD                       682,123       106,095
                                                        ---------    ----------
CASH AT THE END OF THE PERIOD                           $ 226,810    $1,658,473
                                                        =========    ==========
ADDITIONAL DISCLOSURES:
  Interest paid                                         $      --    $    6,147
                                                        =========    ==========
  Income taxes paid                                     $   1,600    $      800
                                                        =========    ==========

    See Accompanying Selected Information to Unaudited Condensed Consolidated
                              Financial Statements

                                        5
<PAGE>

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (formerly known as DIGS, Inc.)
                              SELECTED INFORMATION
     Substantially All Disclosures Required By Generally Accepted Accounting
                          Principles are Not Included
                                 MARCH 31, 2001

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 March 31, 2001, and the results of operations and
cash flows for the quarter ended March 31, 2001.

The notes to the  Consolidated  Financial  Statements  that are  incorporated by
reference  into the 2000 Form 10-KSB  should be read in  conjunction  with these
Condensed Consolidated 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 - RECLASSIFICATIONS

Certain  prior year balances  have been  reclassified  to conform to the current
year's presentation.

NOTE 4 - RELATED PARTY TRANSACTIONS

During the first  quarter of 2001,  the Company  provided its  President  with a
short-term loan of $131,400,  bearing interest at 5% per annum. Interest accrued
for this note totaled $1,154 for the quarter ended March 31, 2001.

NOTE 5 - STOCKHOLDERS' EQUITY

The following is an analysis of activities in the  Stockholders'  Equity for the
three months ended March 31, 2001:
<TABLE>
<S>                    <C>    <C>    <C>        <C>     <C>        <C>        <C>          <C>
                                                                    Other Comp-
                                                         Additional  rehensive
                         Preferred      Common Stock      Paid-In    Income     Retained
                       -------------- -----------------
                       Shares Amount   Shares    Amount   Capital    (Loss)     (Deficit)    Balance
                       ------ ------  --------- ------- ---------- ---------- ------------ -----------
  Balance at 12/31/00  2,500     25  6,648,631  $ 6,649 $3,712,579 $(119,612) $(2,514,053) $1,085,588

  March 31, 2001
         Net (loss)       --     --         --       --         --        --     (335,784)   (335,784)
                       -----  -----  ---------  ------- ---------- ---------  -----------  ----------
  Balance at 3/31/01   2,500  $  25  6,648,631  $ 6,649 $3,712,579 $(119,612) $(2,849,837) $  749,804
                       =====  ====== =========  ======= ========== =========  ===========  ==========
</TABLE>
                                       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
                                 MARCH 31, 2001

NOTE 6 - SEGMENT INFORMATION

Information  concerning  operations in different lines of business for the three
months ended March 31, 2001 and March 31, 2000 is presented below.  Intercompany
transactions between segments are not material.

                                         DCP            DXF
                                    Internet Video    Graphic
 Three Months Ended March 31, 2001   and CD-Rom's      Design     Consolidated
----------------------------------- --------------  ------------ ---------------
Net Operating Revenues              $       1,500   $   111,517  $     113,017
Operating Income (Loss)                  (376,961)       32,009       (344,952)
Identifiable Operating Assets             564,011        74,306        638,317
Depreciation and Amortization       $      35,480   $     2,312  $      37,792


                                         DCP            DXF
                                    Internet Video    Graphic
 Three Months Ended March 31, 2000   and CD-Rom's      Design     Consolidated
----------------------------------- --------------  ------------ ---------------
Net Operating Revenues              $       6,550   $   207,730  $     214,280
Operating Income (Loss)                  (240,218)       88,791       (151,427)
Identifiable Operating Assets           2,089,837       165,107      2,254,944
Depreciation and Amortization       $      13,516   $       527  $      14,043

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

NOTE 7  - EARNINGS PER SHARE

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

NOTE 8 - UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

The financial  statements have been prepared  assuming the Company will continue
as a going concern.  The Company has incurred net losses since  inception.  With
the cash  available on hand at March 31, 2001 of  $226,810,  the Company may not
have enough funds to meet its cash flow requirements within the next twelve (12)
months.  The Company plans to generate the  additional  cash needed  through the
completion of obtaining additional equity, debt, or joint venture  transactions.
There is no  assurance,  however,  that the Company will be able to complete its
plans in the future at  commercially  reasonable  terms,  if at all, or that the
Company will be able to meet its future contractual obligations.





                                       7
<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.  Since that time the Company has used more of its cash reserves during
its operations  over the first quarter of 2001 and remains a going concern.  The
Company  began to  streamline  current  operations  by  cutting  back on capital
expenditures  and minor  operating  expenses  during the quarter ended March 31,
2001.  The  Company  is  actively  seeking  additional  financing  in  hopes  of
increasing its cash reserves and  continuing its marketing and  development of a
multi-screen Internet video viewing application.

                              RESULTS OF OPERATIONS
                              ---------------------
Operations  during  the  quarter  ended  March 31,  2001  resulted  in a loss of
$344,952 as compared to an  operating  loss of $151,427  during the same quarter
ended March 31, 2000.  Comprehensive  losses were  $335,784 and $129,903 for the
periods March 31, 2001 and March 31, 2000  respectively.  Comprehensive  amounts
include the impact of rental income,  interest and  unrealized  holding gains or
losses.

Revenues
--------
Consolidated revenues for the quarter ended March 31, 2001 decreased to $113,017
from  $214,280  for the same  quarter  ended March 31,  2000.  The  consolidated
revenue  decrease  is the  result  of a drop in both  CD-ROM  sales  by  Digital
Corporate  Profiles  (DCP) and graphic  design  services  provided by DXF Design
(DXF).  The  Company  expects  DCP's  CD-ROM  sales to continue to be below past
levels  as a result  of a  strategic  change  in its  operations  and  marketing
efforts.  DCP's  efforts are currently  focused on developing  and marketing its
Internet video application, the iVideoNow System, not selling CD-ROM's. CD-ROM's
will now be a  complimentary  service  provided to our future  iVideoNow  System
clients.  DXF's  revenues  decreased  in the  quarter  ended  March 31,  2001 as
compared  to  the  same  quarter  in  2000  due to a loss  of  clientele.  These
particular  clients began to perform their own art design in-house as opposed to
using DXF's independent services. DXF's revenues are expected to decrease in the
upcoming  quarters  as the  first  and  last  quarters  of the  year  are  DXF's
traditional busy seasons.

                                       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

Cost of Sales and Operating Expenses
------------------------------------
Cost of sales as a percent of revenue  increased to 55% during the quarter ended
March 31, 2001 as compared to 33% in the same quarter of 2000.  This increase is
primarily a result of an increase in amortization  expenses allocated to cost of
sales.  Amortization  costs allocated to cost of sales increased to $36,303 from
$7,702  during the  periods  ended  March 31,  2001 and 2000  respectively.  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 $50,464 or 45% of revenue  during the quarter  ended March 31, 2001
from $143,167 or 67% of revenue during the same quarter of 2000.

Operating expenses during the quarter ended March 31, 2001 increased to $395,416
as compared to $294,594  during the same quarter in 2000.  The most  significant
operating  expense  increase is for payroll.  The Company  expanded its staff of
programmers,  marketers and administrators to accommodate and guide the expected
growth of the Company.  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 three months ended March 31, 2001, cash used for operating activities
was $203,521, and cash used for investing activities was $251,792. 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 $93,229 for property and equipment,  $27,743 in program development
costs  and  $130,820  in  officer   advances.   The  Company   anticipates  cash
expenditures for property and equipment will decrease during the next quarter of
2001 as the  equipment  required  to  program,  test,  host and  distribute  the
iVideoNow!  System are now in place. Development costs related to the iVideoNow!
System should remain at the levels consistent with the costs incurred during the
quarter ended March 31, 2001.  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  emphasis  continues to be on effectively  marketing and enhancing
its current  products and services  while  researching  potential  new products.
Product  development,  such as the iVideoNow!  player,  is targeted  towards the
business-to-business    market    and    compliment    the    Company's    other
business-to-business  services. The Company will require additional financing to
continue it operations for the remainder of 2001 and is currently in the process


                                       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

OUTLOOK (Continued)
-------------------

of attempting to obtain the necessary  capital.  This additional  capital may be
raised through public financing, private financing or some other arrangement. If
additional  capital is raised  through the  issuance of equity  securities,  the
percentage  of  ownership  held  by  current   stockholders  would  be  reduced.
Futhermore, such equity may have rights, preferences or privileges senior to the
current common stock.

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>

                        iVIDEONOW, INC. AND SUBSIDIARIES
                         (formerly known as DIGS, Inc.)
    ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS

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:  May 14, 2001                        By:   /s/ Peter B. Dunn
        ------------------------                  ------------------------
                                                  Peter B. Dunn, President



































                                       11