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SECURITIES AND EXCHANGE
COMMISSIONWashington, D.C. 20549

_________________

FORM 10-QSB

(Mark one)[x]    
          QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
          1934

For the quarterly period ended
September 30, 2003

[   ]    TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

# For the transition
period from____________________to___________________

# Commission File Number
0-24285

_________________

# THE
RICEX COMPANY
(Name of Small Business
Issuer in Its Charter)

| | Delaware                                                      |  | 68-0412200                           | 
| | ------------------------------------------------------------- |  | ------------------------------------ | 
| | (State or other jurisdiction ofincorporation or organization) |  | (I.R.S. Employer Identification No.) | 
|
| | (Address of Principal Executive Offices)                      |  | (Zip Code)                           | 

# Issuers
telephone number, including area code: (916) 933-3000

Not Applicable
                 (Former Name, Former Address and Former Fiscal Year, if Changed Since
Last Report)

_________________

Check
whether the registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
______

# APPLICABLE ONLY TO
CORPORATE ISSUERS

State
the number of shares outstanding of each of the issuers classes of common equity,
as of the latest practicable date: 38,052,180 as of November 10, 2003.

Transitional
Small Business Disclosure Format (check one):  Yes _____   NoX

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# FORM 10-QSB

Index

# 

|PART I.    | FINANCIAL INFORMATION                                                                         |   
|---------- | --------------------------------------------------------------------------------------------- | --
|          
|Item 1.    |                                                                                               |   
|          
|           | (a)  Consolidated Balance Sheet at September 30, 2003                                         | 4 
|          
|           | (b)  Consolidated Statements of Operations for the quarters ended September 30, 2003 and 2002 | 5 
|          
|           | (c)  Consolidated Statements of Cash Flow for the quarters ended September 30, 2003 and 2002  | 6 
|          
|           | (d)  Notes to financial statements                                                            | 7 
|          
|Item 2.    | Management's Discussion and Analysis or Plan of Operation                                     | 9 
|          
|Item 3.    | Controls and Procedures                                                                       | 13
|          
|
|          
|Item 1.    | Legal Proceedings                                                                             | 13
|          
|Item 2.    | Changes In Securities                                                                         | 13
|          
|Item 3.    | Defaults Upon Senior Securities                                                               | 13
|          
|Item 4.    | Submission of Matters to a Vote of Security Holders                                           | 13
|          
|Item 5.    | Other Information                                                                             | 14
|          
|Item 6.    | Exhibits and Reports on Form 8-K                                                              |   
|          
|           | (a) Exhibits                                                                                  | 14
|          
|           | (b) Reports on Form 8-K                                                                       | 14
|          
|Signatures |                                                                                               | 15

2

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# FORWARD-LOOKING
STATEMENTS

This
document contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than statements of
historical fact are forward-looking statements for purposes of federal and
state securities laws, including, but not limited to, any projections of earnings, revenue
or other financial items; any statements of the plans, strategies and objectives of
management for future operations; any statements concerning proposed new services or
developments; any statements regarding future economic conditions or performance; any
statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking
statements may include the words may, could, will,
estimate, intend, continue, believe,
expect or anticipate or other similar words. These forward-looking
statements present our estimates and assumptions only as of the date of this report.
Except for our ongoing obligation to disclose material information as required by the
federal securities laws, we do not intend, and undertake no obligation, to update any
forward-looking statement.

Although
we believe that the expectations reflected in any of our forward-looking statements are
reasonable, actual results could differ materially from those projected or assumed in any
of our forward-looking statements. Our future financial condition and results of
operations, as well as any forward-looking statements, are subject to change and inherent
risks and uncertainties. The factors impacting these risks and uncertainties include, but
are not limited to:

| | increased
competitive pressures from existing competitors and new entrants;
|- | ---------------------------------------------------------------------------

| | increases
in interest rates or our cost of borrowing or a default under any material debt
agreements;
|- | -----------------------------------------------------------------------------------------------------

| | deterioration
in general or regional economic conditions;
|- | ---------------------------------------------------------

| | adverse
state or federal legislation or regulation that increases the costs of compliance, or
adverse findings by a          regulator with respect to existing operations;
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | loss
of customers or sales weakness;
|- | ------------------------------------

| | inability
to achieve future sales levels or other operating results;
|- | --------------------------------------------------------------------

| | the
unavailability of funds for capital expenditures; and
|- | ---------------------------------------------------------

| | operational
inefficiencies in distribution or other systems.
|- | ------------------------------------------------------------

For
a detailed description of these and other factors that could cause actual results to
differ materially from those expressed in any forward-looking statement, please see
Risk Factors in our Annual Report on Form 10-KSB for the year ended December
31, 2002.

3

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PART 1.       FINANCIAL
INFORMATION

Item 1.       
          UNAUDITED FINANCIAL INFORMATION

# THE RICEX COMPANY
                                                      CONSOLIDATED BALANCE SHEETSeptember 30, 2003
                                                              (unaudited)

|ASSETS                                                                      
|----------------------------------------------------------------------------
|                                                                            
|CURRENT ASSETS:                                                             
|Cash and cash equivalents                                                   
|Trade accounts receivable                                                   
|Inventories                                                                 
|Deposits and other current assets                                           
|                                                                            
|Total current assets                                                        
|                                                                            
|PROPERTY AND EQUIPMENT, net                                                 
|                                                                            
|OTHER ASSETS                                                                
|                                                                            
|                                                                            
|                                                                            
|
|                                                                            
|CURRENT LIABILITIES:                                                        
|Accounts payable and accrued liabilities                                    
|Total current liabilities                                                   
|                                                                            
|Total liabilities                                                           
|                                                                            
|COMMITMENTS AND CONTINGENCIES                                               
|                                                                            
|SHAREHOLDERS' EQUITY (DEFICIT)                                              
|Preferred stock, par value $.00l per share, 10,000,000 shares authorized, no
|shares issued and outstanding                                               
|Common stock, par value $.001 per share, 100,000,000 shares authorized,     
|38,281,864 shares issued and outstanding                                    
|Additional paid-in capital                                                  
|Accumulated deficit                                                         
|Total shareholders' equity                                                  
|                                                                            
|                                                                            

The accompanying notes
are an integral part of these consolidated financial statements.

4

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# THE RICEX COMPANY
                                                 CONSOLIDATED STATEMENTS OF OPERATIONS
                                                              (UNAUDITED)

|                                              | Quarters ended     | Nine months ended 
|--------------------------------------------- | ------------------ | ------------------
|
|Revenues                                      |                    |                   
|Sales                                         | $      535,776     | $      839,755    
|Royalties                                     | --                 | --                
|                                              | 535,776            | 839,755           
|                                             
|Cost of sales                                 | 421,060            | 375,698           
|                                              | 114,716            | 464,057           
|                                             
|Research and development expenses             | 51,694             | 68,808            
|Selling, general and administrative expenses  | 566,629            | 459,754           
|Professional fees                             | 96,306             | 143,061           
|Investor relations                            | 15,836             | 37,669            
|Income (loss) from operations                 | (615,749)          | (245,235          
|                                             
|Other income (expense):                      
|Interest and other income                     | 5,976              | 8,217             
|Interest and other expense                    | --                 | --                
|Income (loss) before income taxes             | (609,773)          | (237,018          
|                                             
|Provision for income taxes                    | --                 | (27,549)          
|                                             
|Net income (loss)                             | $     (609,773)    | $     (264,567)   
|                                             
|Basic and diluted earnings per share:        
|Net income (loss) per share                   | $           (0.02) | $           (0.01)
|Weighted average number of shares outstanding | 38,141,979         | 38,829,350        
|                                              |                    |                   

The accompanying
notes are an integral part of these consolidated financial statements.

5

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# THE RICEX COMPANY
                                                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                              (unaudited)

|                                                | Quarters ended | Nine months ended
|----------------------------------------------- | -------------- | -----------------
|
|Cash flow from operating activities:            |                |                  
|Net income (loss)                               | $ (609,773)    | $ (264,567)      
|Adjustments to reconcile net income (loss) to  
|net cash from operating activities             
|Depreciation and amortization                   | 156,542        | 175,938          
|Shares, warrants and options issued for        
|compensation and services                       | 19,140         | 22,138           
|Deferred revenue recognized                     | --             | --               
|Amortization of prepaid processing fees         | --             | --               
|Net changes in operating assets and liabilities
|Trade accounts receivable                       | 310,449        | 455,317          
|Inventories                                     | 977            | (136,903)        
|Deposits and other current assets               | 23,718         | 33,606           
|Accounts payable and accrued liabilities        | (19,084)       | (7,692)          
|Net cash from operating activities              | (118,031)      | 277,836          
|                                               
|Cash flows from investing activities           
|(Purchases) sales of property and              
|equipment, net                                  | (2,108)        | (7,804)          
|Net cash from investing activities              | (2,108)        | (7,804)          
|Cash flows from financing activities           
|Retirement of common stock                      | (41,966)       | --               
|Net cash from financing activities              | (41,966)       | --               
|Net (decrease) increase in cash and cash       
|equivalents                                     | (162,105)      | 270,032          
|Cash and cash equivalents, beginning of period  | 2,095,278      | 1,900,144        
|Cash and cash equivalents, end of period        | $ 1,933,173    | $ 2,170,176      

The accompanying
notes are an integral part of these consolidated financial statements.

6

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# THE RICEX COMPANY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|1. |  | DESCRIPTION
OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
|-- |  | -----------------------------------------------------------

The
RiceX Company (RiceX), formerly Food Extrusion, Inc., was incorporated in
California in 1989 and in 1998 was reincorporated in Delaware and changed its name to The
RiceX Company. We have a wholly owned subsidiary, Food Extrusion Montana, Inc. (FoodEx
Montana). The unaudited consolidated financial statements include the accounts of RiceX
and FoodEx Montana, collectively, after the elimination of all inter-company balances and
transactions.

We
are an agribusiness food technology company, which has developed a proprietary process to
stabilize rice bran. We are headquartered in El Dorado Hills, California and have
stabilization equipment located at one rice mill in Northern California. We purchase raw
rice bran from this mill. Mill employees, under our supervision, operate our equipment to
stabilize rice bran. We pay a processing fee to the mill for this service. Under an
agreement with the mill, the mill may use our equipment to stabilize rice bran for its
customers in exchange for the payment of a royalty fee to us under certain production
conditions.

FoodEx
Montana is engaged in the business of custom manufacturing grain-based products for food
ingredient companies at its production facility in Dillon, Montana. The facility has
specialized processing equipment and techniques for the treatment of grain products to
cook, enzyme treat, convert, isolate, dry, and package finished food ingredients. The
soluble and fiber complex form of our rice bran products are produced at the Montana
facility.

There
have been no changes in our significant accounting policies as set forth in the
Companys audited financial statements for the year ended December 31, 2002, which
were included in our Form 10-KSB. These unaudited financial statements for the nine months
ended September 30, 2003 have been prepared in accordance with generally accepted
accounting principles for interim financial information. Accordingly, they do not include
all of the information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. The results of operations for the nine months ended September 30, 2003
are not necessarily indicative of the results expected for the full year.

|2. |  | PROPERTY
AND EQUIPMENT
|-- |  | ----------------------

At
September 30, 2003, property and equipment consists of the following:

|Land and buildings                             | $    380,154
|---------------------------------------------- | ------------
|Equipment                                      | 4,511,397   
|Leasehold improvements                         | 381,642     
|Furniture and fixtures                         | 208,071     
|                                               | 5,481,264   
|Less accumulated depreciation and amortization | (4,989,940) 
|                                               | 491,324     
|Equipment not placed in service                | 201,900     
|                                               | $    693,224

7

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|3. |  | ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES
|-- |  | ----------------------------------------

At
September 30, 2003, accounts payable and accrued liabilities consist of the following:

|Trade accounts payable    | $     120,258
|------------------------- | -------------
|Other accrued liabilities | 166,063      
|                          | $     286,321

|4. |  | NET
INCOME (LOSS) PER SHARE
|-- |  | ---------------------------

Basic
earnings per share is computed by dividing net income (loss) by the weighted average
number of common shares outstanding during all periods presented.  Options and
warrants are excluded from the calculation of diluted earnings per share in 2003 because
they are currently anti-dilutive. Options and warrants are included in the calculation of
diluted earnings per share in 2002 where the options exercise price was greater than
the average market price of the common shares during the period.

|5. |  | CONCENTRATION
OF CREDIT RISK
|-- |  | ----------------------------

Financial
instruments that potentially subject us to significant concentrations of credit risk
consist primarily of trade accounts receivable for sales to major customers. We perform
credit evaluations on our customers financial condition and generally do not require
collateral on accounts receivable. We maintain an allowance for doubtful accounts on our
receivables based upon expected collection of all accounts receivable. Uncollected
accounts have not been significant.

For
nine months ended September 30, 2003, two customers accounted for 23% and 16% of sales,
respectively. Accounts receivable due from these two customers were 0% and 37%,
respectively, of the total outstanding.

|6. |  | OTHER
INFORMATION
|-- |  | -----------------

Stock
Options. At September 30, 2003, the Company has one stock-based
employee compensation plan. We account for this plan using the intrinsic value method
under the recognition and measurement principles of APB Opinions No. 25, Accounting for
Stock Issued to Employees, and related Interpretations. No stock-based employee
compensation cost is reflected in net income, as all options granted under those plans had
an exercise price equal to the market value of the underlying common stock on the date of
grant. The following table illustrates the effect on net income and earnings per share if
we had applied the fair value recognition provisions of FASB Statement No. 123, Accounting
for Stock-Based Compensation, to stock-based employee compensation.

|                                                                       | SEPTEMBER 30,        | SEPTEMBER 30,       
|---------------------------------------------------------------------- | -------------------- | --------------------
|
|Net income (loss), as reported                                         | $  (1,239,836)       | 95,785              
|Deduct:  Total stock-based employee  compensation expense determined  
|under fair value based method for all awards                           | $         28,030     | $         41,944    
|Pro forma net income (loss)                                            | $  (1,267,866)       | 53,840              
|Earnings per share:                                                   
|Basic and diluted net income (loss) per share - as reported            | $             (.03)  | $                .00
|Basic and diluted net income (loss) per share - pro forma              | $             (.03)  | $                .00
|Weighted average fair value of options granted to employees during the
|quarter                                                                | $                 -- | $                -- 

8

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Item 2.    MANAGEMENT'S
DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION

The
following is a discussion of the consolidated financial condition of our results of
operations for the quarters ended September 30, 2003 and 2002.

# QUARTERS ENDED SEPTEMBER
30, 2003 AND 2002

Consolidated
revenues for quarter ended September 30, 2003 of $536,000 decreased $304,000, or 36%, from
the same period last year. The overall decrease in revenue on a comparative basis to the
same time period last year was expected by management as we are in transition to a self
directed marketing strategy. This strategy is expected to enable us to substantially
increase our market share of both domestic and international markets.

Our
domestic marketing program emphasizes the reliance on key regional and national
distribution systems to expand our presence in the marketplace. In addition to the use of
outside distribution systems, we continue our manufacturer direct sales and marketing
activities. As anticipated, putting this distribution system in place meant temporary
decrease in sales volume from one of our largest customers. Orders are expected to return
to normal during the fourth quarter of 2003. We have also experienced a reduction in sales
from our largest domestic stablized rice bran solubles customer. This fall off seems to be due to the
typical product life cycles inherent in traditional multi-level marketing
systems. This customer has since launched new products containing several of our product
lines as ingredients, the fruits of which should be evidenced during the fourth quarter of
2003.

We
are transforming our proof-of-concept international nutritional drink program in Central
America from short term commitments to multi year self sustaining projects in order to
reduce the volatility associated with year-to-year government backed programs. Our
previous commitments were direct purchase sales contracts financed in part through the
United States governments Public Law 416 and 480 programs, with joint participation
by the host country government. The contracts therefore required authorizations by the
authorized representatives of each country. Authorized representatives of these countries
usually change every three to four years. Because of domestic and global uncertainties in
government programs, we have experienced delays in finalizing purchase orders and delivery
schedules for stabilized rice bran solubles into this region. We have secured a financing
commitment from Overseas Private Investment Corporation to assist in funding a RiceX
facility in the Central America region (see Liquidity and Capital Resources for further
discussions).

Gross
margins through period ended September 30, 2003 were $115,000, or 21%, compared to
$464,000, or 55%, during the same period last year. The decrease in gross margin dollars
of $349,000 was primarily attributed to the decrease in revenues of $304,000 added to an
increase in cost of goods sold of $45,000. Contributing to the increase in cost of goods
sold was low production volume in California as well as our Montana plant creating
unabsorbed costs of $138,000 for the third quarter period ended September 30, 2003. Low
production volume was attributable to decreased orders during this period. Gross margins
on the Companys various products vary widely and the gross margins are impacted from
period to period by sales mix and utilization of production capacity. The Company expects
that gross margins will improve as sales volumes increase.

9

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Research
and development (R&D) expenses reflect a $17,000 decrease for the quarter
ended September 30, 2003 compared to the same period last year. R&D expenditures
decreased from $69,000 for the quarter ended September 30, 2002 to $52,000 for the same
period in 2003 due to a decrease in costs allocated to R&D from less activity in
research in 2003. The Company expects to continue research and development expenditures to
establish the scientific basis for health claims of existing products.

Sales,
General, and Administrative (SG&A) expenses were $567,000 and $460,000
through period ended September 30, 2003 and 2002 respectively, an increase of $107,000.
The increase was due partly to expenses relating to our expanding sales and marketing
functions as well as increased employee related benefit costs.

Professional
fees decreased to $96,000 for the period ended September 30, 2003 from $143,000 for the
same period in 2002. The decrease of $47,000 is due primarily to a decrease in consulting
fees this year compared to this period in 2002.

Investor
relation fees decreased $22,000 to $16,000 for the quarter ended September 30, 2003 from
$38,000 for the quarter ended September 30, 2002. The reduction was primarily due to the
absence of an investor relations firm during this quarter ended September 30, 2003
compared to this period in 2002 as well as reduced financial publishing fees.

We
had a net loss of $610,000 for quarter ended September 30, 2003, or $0.02 per share,
compared to a net loss of $265,000, or $0.01 per share, for quarter ended September 30,
2002, a decrease of $345,000 over the same period last year. The net loss is primarily due
to decreased revenues, an increase in cost of goods sold, which included lower utilization
of production capacity, and higher overhead expenses for quarter ended September 30, 2003,
compared to quarter ended September 30, 2002.

# NINE MONTHS ENDED
SEPTEMBER 30, 2003 AND 2002

Consolidated
revenues for nine months ended September 30, 2003 were $2,474,000, a decrease of
$1,002,000, or 29% on a comparative basis to nine months ended September 30, 2002. The
overall decrease in revenue on a comparative basis to the same time period last year was
expected by management as we transitioned into a self directed marketing strategy. This
strategy is expected to enable us to substantially increase our market share of both
domestic and international markets.

Our
domestic marketing program emphasizes the reliance on key regional and national
distribution systems to expand our presence in the marketplace. In addition to the use of
outside distribution systems, we continue our manufacturer direct sales and marketing
activities. As anticipated, putting this distribution system in place meant temporary
decrease in sales volume from one of our largest customers. Orders are expected to return
to normal during the fourth quarter of 2003. We have also experienced a reduction in sales
from our largest domestic stablized rice bran solubles customer. This fall off seems to be due to the
typical product life cycles inherent in traditional multi-level marketing
systems. This customer has since launched new products containing several of our product
lines as ingredients, the fruits of which should be evidenced during the fourth quarter of
2003.

We
are transforming our proof-of-concept international nutritional drink program in Central
America from short term commitments to multi year self sustaining projects in order to

10

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reduce the volatility associated with year-to-year government backed programs. Our
previous commitments were direct purchase sales contracts financed in part through the
United States governments Public Law 416 and 480 programs, with joint participation
by the host country government. The contracts therefore required authorizations by the
authorized representatives of each country. Authorized representatives of these countries
usually change every three to four years. Because of domestic and global uncertainties in
government programs, we have experienced delays in finalizing purchase orders and delivery
schedules for stabilized rice bran solubles into this region. We have secured a financing
commitment from Overseas Private Investment Corporation to assist in funding a RiceX
facility in the Central America region (see Liquidity and Capital Resources for further
discussions).

Gross
margins for nine months ended September 30, 2003 were $1,020,000, or 41%, compared to
$2,091,000 or 60%, during the same period last year. The decrease in gross margin dollars
of $1,071,000 was attributed to the decrease in revenues of $1,002,000 added to an
increase in cost of sales of $68,000. The decrease in the gross margin percent was
primarily due to low production volume at our Montana plant creating unabsorbed costs of
$291,000 for period ended September 30, 2003. Gross margins on the Companys various
products vary widely and the gross margins are impacted from period to period by sales mix
and utilization of production capacity. The Company expects that gross margins will
improve as sales volumes increase.

R&D
expenses decreased $13,000 for nine months ended September 30, 2003 compared to the same
period last year. R&D expenditures decreased from $188,000 for nine months ended
September 30, 2002 to $175,000 for nine months ended September 30, 2003. The change in
R&D expenses is mostly due to a decrease in costs allocated to R&D from less
activity in research in 2003. The Company expects to continue research and development
expenditures to establish the scientific basis for health claims of our product.

SG&A
expenses were $1,666,000 for nine months ended September 30, 2003, compared to $1,309,000
for nine months ended September 30, 2002, an increase of $357,000. The increase was due
mostly to employee expenses relating to our expanding sales and marketing functions as
well as increased medical benefit costs.

Professional
fees decreased $15,000 to $362,000 for nine months ended September 30, 2003 from $377,000
for the prior years period. The decrease was mostly due to decreased consulting fees
this year compared to this period in 2002.

Investor
relations fees decreased from $78,000 for nine months ended September 30, 2002 to $69,000
for nine months ended September 30, 2003. The decrease of $9,000 was attributed to the
absence of an investor relations firm during this period in 2003.

For
nine months ended September 30, 2003, we experienced a net loss of $1,240,000, or $.03 per
share, compared to net income of $96,000, or $0.00 per share, for nine months ended
September 30, 2002, a decrease of $1,336,000 compared to the same time period last year.
The net loss is due to decreased revenues, an increase in cost of sales, which included
lower utilization of production capacity, higher overhead expenses, offset by lower income
tax expense through nine months ended September 30, 2003.

# LIQUIDITY AND CAPITAL
RESOURCES

11

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For
period ended September 30, 2003, our cash balance decreased compared to the same period
last year. Our cash balance at September 30, 2003 decreased $237,000 to $1,933,000, down
from $2,170,000 at September 30, 2002. Management believes our cash reserve is adequate to
meet future operating requirements.

Our
management team has developed a strategic and financially sound business plan to meet our
ongoing liquidity needs for the year ended December 31, 2003 and thereafter. We believe
that we have positioned ourselves to become the foremost premium ingredient supplier in
the food manufacturing and animal feed sectors. Our cash position has not required cash
from financing activities in order to fund operations in the three years since retiring
all our debt.

In
2002, our Board of Directors approved resolutions authorizing us to repurchase up to a
total of $1,000,000 of our own stock on the open market for a period of one year, which
period expired on October 22, 2003. For quarter ended September 30, 2003, we repurchased
556,900 shares at a cost of $140,005 accumulating to 660,526 total shares repurchased
under the program at a cost of $166,689, an average price per share of $0.25.

In
2001, funded by a United States Department of Agriculture grant, we provided a nutrition
drink to 67,000 children each school day for the entire school year in rural Guatemala. A
clinical study of 150 randomly selected children concluded that acute malnutrition was
eliminated in the study group and chronic malnutrition was reduced from 37 percent to only
5 percent. All of the children demonstrated marked improvement in school attendance,
alertness and scholastic achievement. The success of the 2001 Guatemala program has given
rise to additional funding applications in Guatemala, El Salvador, Nicaragua and Honduras.
Feeding programs have been approved for both El Salvador and Guatemala for 2003. Revenue
from the El Salvador program occurred during 2002, while revenue from the 2003 Guatemala
program is expected in the fourth quarter of 2003.

We
are in the process of broadening our presence in the international markets. Building on
year 2001 successful proof-of-concept program in Guatemala, we continue to develop and
expand international market development activities in Central America. We will be working
with major rescue and relief agencies, congressional supporters and government offices of
the United States Department of Agriculture and the United States Agency for International
Development to bring a multi-year program to provide nutritional drinks to one million
children each school day from a RiceX facility located within the region. We have secured
a financing commitment from Overseas Private Investment Corporation to assist in funding
the facility. There can be no assurance that this financial commitment will lead to
building a facility in the region.

We
continue to focus our market development activities on nutritionally dense ingredients in
the international market place first in Latin America and then into other world countries.
These market segments currently represent multimillion dollar potential market
opportunities. We also continue to initiate strategic alliance discussions to identify and
formulate potential joint venture opportunities with major domestic premium pet food and
equine feed manufacturers and distributors. Domestic markets for these segments currently
represent a potential opportunity of over $250 million annually. We believe the results of
these successful alliances will have a significant financial effect on our annual revenues
and profit. There can be no assurance that we will obtain additional strategic alliances.

These
efforts could significantly increase demand for our products beyond our current production
capacity. While we believe we can increase our production capacity to meet sales

12

---

demand,
significant additional capital could be required to meet such expansion requirements. We
have sufficient cash reserves to meet all anticipated short-term operating requirements.
However, the timing and amount of any long-term capital requirements cannot be predicted
at this time. There can be no assurance that any financing will be available on acceptable
terms. If such financing is not available on satisfactory terms, we may be unable to
develop or expand our business, develop new products, or develop new markets at the rate
desired and our operating results may be adversely affected.

Item 3.    CONTROLS AND
PROCEDURES

We
established a compliance committee in 2002 to carry out an evaluation of the effectiveness
of our disclosure controls and procedures. As of September 30, 2003, our management,
including our Chief Executive Officer and our Chief Financial Officer, evaluated the
effectiveness of the design and operation of our disclosure controls and procedures (as
defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as
amended). Based on that evaluation, our management, including our Chief Executive Officer
and our Chief Financial Officer, concluded that our disclosure controls and procedures
were effective in timely alerting management, including our Chief Executive Officer and
our Chief Financial Officer, of material information that we are required to include in
periodic Securities and Exchange Commission filings.

There
have been no changes in our internal control over financial reporting that occurred during
the quarter ended September 30, 2003 that have materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting.

PART 2.    OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

From
time to time we are involved in litigation incidental to the conduct of our business.
While the outcome of lawsuits and other proceedings against us cannot be predicted with
certainty, in the opinion of management, none of the litigation in which we are currently
involved, individually or in the aggregate, is expected to result in a material adverse
effect on our financial position or results of operations.

Item 2.    CHANGES IN
SECURITIES AND USE OF PROCEEDS

In
2002, our Board of Directors approved resolutions authorizing us to repurchase up to a total of
$1,000,000 of our own stock on the open market for a period of one year, which period
expired on October 22, 2003. Through quarter ended September 30, 2003, we repurchased
556,900 shares at a cost of $140,005 accumulating to 660,526 total shares repurchased
under the program at a cost of $166,689, an average price per share of $0.25.

Item 3.    DEFAULTS UPON
SENIOR SECURITIES

NONE

Item 4.    SUBMISSION OF
MATTERS TO A VOTE OF SECURITYHOLDERS

NONE

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Item 5.    OTHER INFORMATION

NONE

Item 6.    EXHIBITS AND
REPORTS ON FORM 8-K

(a)     Index to Exhibits

The
following exhibits are attached hereto and filed herewith:

|ExhibitNumber | Description of Exhibit                                                                                                                           
|------------- | -------------------------------------------------------------------------------------------------------------------------------------------------
|             
|4.1           | Non-statutory Stock Option Agreement issued under the 1997 Stock Option Plan between the
Company and Steven W. Saunders dated September 23, 2003.
|             
|31.1          | Certification pursuant to Rule 13a-14(a)/15d-14(a)                                                                                               
|             
|31.2          | Certification pursuant to Rule 13a-14(a)/15d-14(a)                                                                                               
|             
|32.1          | Certification of Chief Executive Officer Pursuant to 18 U.S.C.ss.1350                                                                            
|             
|32.2          | Certification of Chief Financial Officer Pursuant to 18 U.S.C.ss.1350                                                                            

(b)    Reports
on Form 8-K

NONE

14

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# SIGNATURES

In
accordance with the requirements of the Securities Exchange Act of 1934, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized:

|                           | THE RICEX COMPANY                
|-------------------------- | ---------------------------------
|                           |                                  
|Date:  November  14 , 2003 | By: /s/ Daniel L. McPeak         
|                           | Daniel L. McPeak                 
|                           | Chairman of the Board and        
|                           | Chief Executive Officer          
|                           |                                  
|Date:  November  14 , 2003 | By: /s/ Todd C. Crow             
|                           | Todd C. Crow                     
|                           | Director, Vice President, Finance
|                           | and Chief Financial Officer      

15