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

                                  FORM 10-QSB/A

     [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.













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







                                      INDEX

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

  ITEM 1 - Financial Statements

     Independent Accountants' Report                                  2

      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 - 8

  ITEM 2 - Management's Discussion And Analysis Of Financial
              Condition And Results Of Operations                   9 - 11


















                                       1
<PAGE>
                         INDEPENDENT ACCOUNTANTS' REPORT





September 6, 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 June 30, 2001,  the related  condensed
consolidated  statements of operations for the quarter and year-to-date  periods
ended June 30, 2001 and 2000, and the condensed consolidated  statements of cash
flows for the year-to-date periods ended June 30, 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
                                  JUNE 30, 2001
                                   (UNAUDITED)

                                     ASSETS

CURRENT ASSETS
     Accounts receivable - trade                                     12,400
     Investments                                                     25,010
                                                            ---------------
              Total Current Assets                                   37,410
                                                            ---------------
PROPERTY AND EQUIPMENT,
  net of accumulated depreciation                                   270,455

PROGRAM DEVELOPMENT COSTS,
  net of accumulated amortization                                    61,892

OTHER ASSETS
     Officer loans                                                  105,466
                                                            ---------------
              Total Assets                                  $       475,223
                                                            ===============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Bank overdraft                                         $         2,681
     Accounts payable and accrued expenses                           84,172
     Other liabilities                                                3,659
                                                            ---------------
              Total Current Liabilities                              90,512
                                                            ---------------
STOCKHOLDERS' EQUITY
     Preferred  stock,  par value $.01 per share;
       20,000,000 shares authorized, zero 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                                   3,710,604
     Accumulated other comprehensive (loss)                        (119,612)
     Retained (deficit)                                          (3,214,930)
                                                            ---------------
              Total Stockholders' Equity                            384,711
                                                            ---------------
              Total Liabilities and Stockholders' Equity    $       475,223
                                                            ===============
        See The 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 QUARTERS AND YEAR-TO-DATE PERIODS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)
<TABLE>
<S>                          <C>             <C>               <C>             <C>
                                For the Quarter Ended          For The Year-To-Date Periods
                                         June 30,                       Ended June 30,
                            -------------------------------   -------------------------------
                                   2001            2000              2001           2000
                            --------------    -------------   -------------    --------------
REVENUE                      $      17,900   $     119,625     $    130,917    $    333,905

COST OF SALES                       55,512          18,259          118,065          89,372
                            --------------  --------------    -------------   -------------
   Gross Profit/(Loss)             (37,612)        101,366           12,852         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                         186,497         169,235          395,433         293,121
   Rent                             21,807          25,150           46,726          43,839
   Other                            91,172         108,329          210,906         165,286
                            --------------  --------------    -------------   -------------
    Total Operating Expenses       331,729         393,248          727,828         687,841
                            --------------  --------------    -------------   -------------
   Income/(Loss) from Operations  (369,341)       (291,882)        (714,976)       (443,308)

OTHER INCOME/(EXPENSE)
    Rental income                    4,860           3,000            9,720           6,000
    Interest income                     --          13,391            5,979          13,391
    Other expense                     (612)         (1,475)              --          (5,276)
                            --------------  --------------    -------------   -------------
   Income/(Loss) Before Taxes     (365,093)       (276,966)        (699,277)       (429,193)

(PROVISION) FOR INCOME TAXES            --          (1,600)          (1,600)         (2,400)
                            --------------  --------------    -------------   -------------
   Net Income/(Loss)              (365,093)       (278,566)        (700,877)       (431,593)

OTHER COMPREHENSIVE INCOME
  (LOSS) (net of tax)Unrealized
holding\gain/(loss) on investments      --         (60,000)              --         (36,875)
                            --------------  --------------    -------------   -------------
  Comprehensive Income/(Loss)$    (365,093)  $    (338,566)    $   (700,877)   $   (468,468)
                            ==============  ==============    =============   =============
(Loss) per share and common
   share equivalents         $        (.05)  $        (.05)    $       (.10)   $       (.07)
                            ==============  ==============    =============   =============
Weighted average common
   shares outstanding            7,044,235       6,649,864        6,848,631       6,649,864
                            ==============  ==============    =============   =============
</TABLE>
        See The 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 YEAR-TO-DATE PERIODS ENDED JUNE 30, 2001 AND 2000
                                   (UNAUDITED)

                                                       2001            2000
                                                  ------------  --------------
CASH FLOWS PROVIDED (USED) BY
 OPERATING ACTIVITIES:
  Net (loss)                                      $  (700,877)   $    (431,593)
   Adjustments to reconcile net (loss)
    to net cash provided (used) by
    operating activities:
   Amortization and depreciation                       75,917           28,211
   Decrease in accounts receivable                     55,785           12,695
   Increase (decrease) in current
    liabilities and accrued expenses                   25,862          (23,925)
   (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              (96,167)        (105,550)
   (Increase) in program development cost             (16,280)         (69,127)
   (Increase) in loan receivable - officer            (29,044)         (23,601)
                                                  -----------    -------------
     Net Cash Flows (Used ) by Investing Activities  (141,491)        (198,278)
                                                  -----------    -------------
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 PERIODS                    $    (2,681)   $   1,412,283
                                                  ===========    =============
ADDITIONAL DISCLOSURES:
    Interest paid                                 $        --    $       6,147
                                                  ===========    =============
    Income taxes paid                             $     1,600    $       2,400
                                                  ===========    =============

        See The 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
                                  JUNE 30, 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 June 30, 2001, the results of operations for
the  quarter and  year-to-date  periods  ended June 30, 2001 and 2000,  and cash
flows for the year-to-date periods ended June 30, 2001 and 2000.

     The notes to the  Condensed  Consolidated  Financial  Statements  which 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 - STOCKHOLDERS' 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, 2001, 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  shares  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 plus 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.
                                       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

NOTE 4 - STOCKHOLDERS' EQUITY (CONTINUED)
Preferred Stock (Continued)

     On June 13, 2001,  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.

The following is an analysis of activities in the  Stockholders'  Equity for the
six months ended June 30, 2001:
<TABLE>
<S>                    <C>      <C>    <C>        <C>     <C>         <C>        <C>          <C>
                                                                        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

June 13, 2001
 Preferred stock
         converted     (2,500)    (25) 2,000,000    2,000     (1,975)        --           --           --

June 30, 2001
         Net (loss)        --      --         --       --         --         --     (700,877)    (700,877)
                       ------   -----  ---------  ------- ----------  ---------  -----------  -----------
Balance at 6/30/01         --   $  --  8,648,631  $ 8,649 $3,710,604  $(119,612) $(3,214,930) $   384,711
                       ======   =====  =========  ======= ==========  =========  ===========  ===========
</TABLE>
NOTE 5 - SEGMENT INFORMATION

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

  For the Quarter Ended June 30, 2001         DCP         DXF      Consolidated
------------------------------------------ ---------- ----------- --------------
Net Operating Revenues                     $    (500) $   18,400  $     17,900
Operating Income/(Loss)                     (329,727)    (39,614)     (369,341)
Identifiable Operating Assets                732,189      60,139       792,328
Depreciation and Amortization              $  35,811  $    2,312  $     38,123

  For the Year-to-Date Ended June 30, 2001    DCP         DXF      Consolidated
------------------------------------------ ---------- ----------- --------------
Net Operating Revenues                     $   1,000  $  129,917  $    130,917
Operating Income/(Loss)                     (707,371)     (7,605)     (714,976)
Identifiable Operating Assets                732,189      60,139       792,328
Depreciation and Amortization              $  71,292  $    4,625  $     75,917
                                       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

NOTE 5 - SEGMENT INFORMATION (CONTINUED)

     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 2001.  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
$714,976  as compared to an  operating  loss of $443,308  during the same period
ended June 30,  2000.  Comprehensive  losses were  $700,877 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 90%  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 $12,852 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
$727,828  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 $141,491.
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 $96,167 for property and equipment,  $16,280 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:  September 14, 2001             By:   /s/ Peter B. Dunn
        ------------------------             --------------------------
                                             Peter B. Dunn, President












































                                       11