UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORTS OF SMALL BUSINESS ISSUERS

[X]      Quarterly report pursuant section 13 or 15(d) of the Securities
         Exchange Act of 1934

         For the quarterly period ended June 30, 2000

[ ]      Transition report pursuant section 13 or 15(d) of the Securities
         Exchange Act of 1934

                             Commission file number

                          e-Auction Global Trading Inc.
                          -----------------------------
        (Exact name of small business issuer as specified in its charter)

                                     Nevada
                                     ------
                          (State or other jurisdiction)

                                     Pending
                                     -------
       (IRS Employer of incorporation or organization Identification No.)


     220 King Street, West Suite 200 Toronto, Ontario, M5M 1K4 Canada.
     -----------------------------------------------------------------------
                    (Address of principal executive offices)


                                  416-644-4725
                                  ------------
                           (Issuer's telephone number)

Check whether the issuer

         (1) filed all reports required to be filed by Section 13 or 15(d) of
         the Exchange Act during the past 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........

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by court. Yes......No....X....

Applicable only to corporate  issuers

As of October 11, 2000 there were 65,745,915 shares of the Registrant's common
stock outstanding.


Transitional Small Business Disclosure Format (check one);

Yes......No....X....
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                                   FORM 10-QSB

                                      INDEX
<TABLE>
<CAPTION>

PART I.  FINANCIAL INFORMATION                                                                        PAGE

<S>                                                                                                      <C>
Item 1.  Financial Statements                                                                            3

     Consolidated Balance Sheet at June 30, 2000 and June 30, 1999                                       4

     Consolidated  Statements of Operations  and Deficit for the six months ended June 30, 2000          6
     and 1999

     Consolidated Statements of Cash Flows for the six months ended June 30, 2000 and 1999               7

     Notes to Consolidated Financial Statements                                                          8

Item 2.  Managements' Discussion and Analysis of Financial Condition and Results of Operations          23

Part II. Other Information                                                                              25

Item 1.  Legal Proceedings                                                                              25

Item 2.  Changes in Securities and Use of Proceeds                                                      25

Item 4.  Submission of Matters to a Vote of Security Holders                                            26

Item 6.  Exhibits and Reports on Form 8-K                                                               26

SIGNATURES                                                                                              26
</TABLE>

                                       2
<PAGE>

ITEM 1.  Financial Statements

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                        CONSOLIDATED FINANCIAL STATEMENTS

                                  JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

                                       3
<PAGE>



                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   CONSOLIDATED BALANCE SHEET - JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                                                      2000                 1999
                                                                                       $                    $
                                                                                                        (NOTE 14)
--------------------------------------------------------------------------------------------------------------------
                                     ASSETS
CURRENT ASSETS
<S>                                                                                    <C>                     <C>
      Cash and short-term deposits                                                     10,207,204              1,024
      Accounts receivable                                                               1,196,821                  -
      Inventory                                                                           253,222                  -
      Work in progress                                                                     30,011                  -
      Prepaid expenses                                                                    207,345
                                                                                          -------             ------
                                                                                       11,894,603              1,024

CAPITAL ASSETS (NOTE 4)                                                                   723,840             34,247

DEPOSITS ON ACQUISITION OF KWATROBOX (NOTE 6)                                           1,062,125                  -

GOODWILL (NOTE 5)                                                                       6,541,159                  -
--------------------------------------------------------------------------------------------------------------------
                                                                                       20,221,727             35,271

--------------------------------------------------------------------------------------------------------------------
</TABLE>


                             SEE ACCOMPANYING NOTES


                                       4
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   CONSOLIDATED BALANCE SHEET - JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------

                                                                                         2000                 1999
                                                                                          $                     $
                                                                                                            (NOTE 14)
--------------------------------------------------------------------------------------------------------------------
                                   LIABILITIES

CURRENT LIABILITIES
<S>                                                                                     <C>                  <C>
      Accounts payable and accruals                                                     1,591,774            307,697
      Short-term loan                                                                      83,469                  -
      Due to Ventures North Investment Partners (NOTE 8)                                   47,945            365,824
      Deferred revenue (NOTE 7)                                                           721,212                  -
      Current portion of long-term debt (NOTE 9)                                           53,029                  -
                                                                                                                   -
      Current portion of obligations under capital lease (NOTE 10)                          8,304                  -
                                                                                       ----------        -----------
                                                                                        2,505,733            673,521

LONG-TERM DEBT (NOTE 9)                                                                   181,221                  -

OBLIGATIONS UNDER CAPITAL LEASE (NOTE 10)                                                  26,467                  -
                                                                                       ----------        -----------
                                                                                        2,713,421            673,521
                                                                                       ----------        -----------
REDEEMABLE COMMON STOCK (NOTES 5 AND 12)                                                3,636,364                  -
                                                                                       ----------        -----------

NON-CONTROLLING INTEREST (NOTE 11)                                                        779,668                  -
                                                                                       ----------        -----------

                              SHAREHOLDERS' EQUITY

SHARE CAPITAL (NOTE 12)                                                                    65,146                  1

CONTRIBUTED SURPLUS (NOTE 12)                                                          17,222,258                  -

DEFICIT                                                                                (4,195,130)          (638,251)
                                                                                       ----------        -----------
                                                                                       13,092,274           (638,250)
--------------------------------------------------------------------------------------------------------------------

                                                                                       20,221,727             35,271

--------------------------------------------------------------------------------------------------------------------
</TABLE>

CONTINGENCIES (NOTE 15)

                             SEE ACCOMPANYING NOTES

                                       5
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                             APR. 1 TO          JAN. 1 TO          APR. 1 TO         JAN. 1 TO
                                                             JUNE 30,            JUNE 30,          JUNE 30,          JUNE 30,
                                                               2000                2000              1999              1999
                                                                $                    $                  $                $
                                                                                                                    (NOTE 14)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>               <C>                   <C>                <C>
REVENUE                                                        951,083           1,979,919                   -                  -

COST OF GOODS SOLD                                             564,363           1,282,051                   -                  -
                                                               -------           ---------             -------            -------

GROSS MARGIN                                                   386,720             697,868                   -                  -

EXPENSES
     Salaries and benefits                                     563,544           1,043,603             208,057            272,966
     Sales, general and administrative                         344,877             593,464             297,717            365,285
     Depreciation and amortization                             397,416             781,748                   -                  -
     Interest on long-term debt                                  4,399              11,965                   -                  -
     Interest income                                          (55,135)            (65,572)                   -                  -
     Belgian taxes                                               9,248              12,192                   -                  -
                                                               -------           ---------             -------            -------
                                                             1,264,349           2,377,400             505,774            638,251
                                                               -------           ---------             -------            -------

LOSS BEFORE NON-CONTROLLING INTEREST                          (877,629)         (1,679,532)           (505,774)          (638,251)

NON-CONTROLLING INTEREST (NOTE 11)                              97,781             138,834                   -                  -
                                                               -------           ---------             -------            -------

NET LOSS                                                      (779,848)         (1,540,698)           (505,774)          (638,251)

RETAINED EARNINGS (DEFICIT),
     beginning of period                                    (3,415,282)         (2,654,432)           (132,477)                 -

----------------------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT),
     end of period                                          (4,195,130)         (4,195,130)           (638,251)          (638,251)

==================================================================================================================================
EARNINGS (LOSS) PER SHARE                                        (0.01)              (0.01)              (0.01)             (0.02)

==================================================================================================================================
</TABLE>

                             SEE ACCOMPANYING NOTES

                                       6
<PAGE>


                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                      CONSOLIDATED STATEMENT OF CASH FLOWS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                                                          JAN. 1 TO            JAN. 1 TO
                                                                                           JUNE 30,             JUNE 30,
                                                                                             2000                 1999
                                                                                               $                    $
                                                                                                                (NOTE 14)
----------------------------------------------------------------------------------------------------------------------------------
CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
<S>                                                                                           <C>                  <C>
       Net loss                                                                               (1,540,698)          (638,251)
       Add items not affecting cash
          Depreciation and amortization                                                          781,748                  -
          Non-controlling interest                                                              (138,834)                 -
                                                                                                --------           --------
                                                                                                (897,784)          (638,251)
       Net changes in non-cash operating accounts
          Accounts receivable                                                                   (467,692)                 -
          Inventory                                                                               39,667                  -
          Work in progress                                                                       (30,011)                 -
          Prepaid expenses                                                                      (164,030)                 -
          Accounts payable                                                                        42,435            307,697
          Deferred revenue                                                                       138,600                  -
          Short-term loan                                                                         67,999                  -
                                                                                                --------           --------
                                                                                              (1,270,816)          (330,554)
                                                                                                --------           --------
FINANCING ACTIVITIES
       Due to related parties                                                                   (812,848)           365,824
       Issuance of share capital                                                              11,947,046                  -
       Capital lease obligations                                                                  34,771                  -
       Long-term debt                                                                            234,250                  -
       Non-controlling interest                                                                  918,502                  -
       Shareholder loan                                                                        2,200,000                  -
                                                                                                --------           --------
                                                                                              14,521,721            365,824
                                                                                                --------           --------
INVESTING ACTIVITIES
       Purchase of fixed assets                                                                  (89,774)           (34,247)
       Purchase of Schelfhout                                                                 (3,000,000)                 -
       Deposits on the acquisition of Kwatrobox                                                 (322,241)                 -
                                                                                                --------           --------
                                                                                              (3,412,015)           (34,247)
                                                                                                --------           --------

INCREASE IN CASH                                                                               9,838,890              1,023

CASH, beginning of period                                                                        368,314                  1
-----------------------------------------------------------------------------------------------------------------------------------

CASH, end of period                                                                           10,207,204              1,024

====================================================================================================================================
</TABLE>

                             SEE ACCOMPANYING NOTES

                                       7
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                                        .
                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)



--------------------------------------------------------------------------------
1.     NATURE OF BUSINESS
--------------------------------------------------------------------------------

       The Company is an e-business  services  provider to perishable  commodity
       marketplaces.  Through  its  subsidiaries,  the Company is focused on the
       installation  and  maintenance of clock and cooling  systems for internet
       auction halls.  To date, the Company  continues to focus on  streamlining
       and increasing the  capabilities  of electronic  commerce  processing for
       internet auction halls.

--------------------------------------------------------------------------------
2.     ORGANIZATION AND BASIS OF PRESENTATION
--------------------------------------------------------------------------------

       a)    Reverse takeover

             Pursuant to a Share  Exchange  Agreement  dated  February 26, 1999,
             e-Auction Global Trading Inc. (formerly Kazari  International Inc.)
             ("Nevada"),  a Nevada  company,  acquired  100% of the  issued  and
             outstanding shares of e-Auction Global Trading Inc.,  ("Barbados"),
             a Barbados  company,  for the issuance of 34,500,000 common shares.
             As a result of the  transaction,  control of the Company  passed to
             Barbados. Accordingly, the share exchange has been accounted for as
             a reverse takeover of Nevada by Barbados.

             Application  of  reverse   takeover   accounting   results  in  the
             following:

            i)  The consolidated financial statements of the combined entity are
                issued  under the name of the  legal  parent,  e-Auction  Global
                Trading  Inc.  (formerly  Kazari  International  Inc.),  but are
                considered a  continuation  of the  financial  statements of the
                legal subsidiary (Barbados).

            ii) As  Barbados  is  deemed  to  be  the  acquirer  for  accounting
                purposes,  its  assets  and  liabilities  are  included  in  the
                consolidated  financial  statements of the continuing  entity at
                their carrying value.

            iii)The  34,500,000  shares  issued are deemed to be issued on April
                30, 1998, the date of incorporation of Barbados.

       b)    Principles of consolidation

             The accompanying  financial statements  consolidate the accounts of
             the  Company  and  its  wholly  owned  subsidiaries:   Aucxis  N.V.
             (formerly   e-Auction   Belgium  N.V.),   and  their  wholly  owned
             subsidiary;  Schelfhout  Computer Systemen N.V. and their 99% owned
             subsidiary   SDL  Invest  N.V.;   e-Auction   Global  Trading  Inc.
             (Barbados) and their wholly owned subsidiary Aucxis Corp. (formerly
             e-Auction Global Trading Inc. (Canada));  V-Wholesaler.com B.V. and
             the Company's 50.01% interest in e-Auction Australasia Limited.

                                       8
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
3.     SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------

       a)     Foreign currency translation

              The Company's functional currencies are Euros, Australian dollars,
              and U.S. dollars; and its reporting currency are U.S. dollars. The
              Company  follows SFAS 52 where all foreign  currency  transactions
              are  translated  using the exchange  rate in effect at the date of
              the  transaction.  At each balance sheet date,  recorded  balances
              denominated in a currency other than U.S.  dollars are adjusted to
              reflect the period end exchange rate.

       b)     Loss per common share

              The weighted  average number of shares used for  calculating  loss
              per share is 60,074,118 (1999 - 28,955,359).

       c)     Measurement uncertainty

              The  preparation  of  financial   statements  in  conformity  with
              generally accepted  accounting  principles  requires management to
              make estimates and assumptions that affect the reported amounts of
              assets and  liabilities  and  disclosure of contingent  assets and
              liabilities  at the  date  of the  financial  statements  and  the
              reported  amounts of revenues  and expenses  during the  reporting
              period.   Significant   areas  requiring  the  use  of  management
              estimates relate to the  determination of impairment of assets and
              useful lives for depreciation and amortization.  Financial results
              as determined by actual events could differ from those estimates.

       d)     Financial instruments

              The Company's  financial  instruments  consist of cash, short term
              deposits, accounts receivable,  accounts payable, financial debts,
              short-term  loan,  due to related  parties and  obligations  under
              capital lease, the fair market value of which  approximates  their
              carrying value.

       e)     Amortization

              Amortization  of capital  assets  and  goodwill.  Amortization  is
       provided at the following annual rates:

               Land and buildings               Straight-line over 20 years
               Software                         Straight-line over 5 years
               Furniture and fixtures           Straight-line over 5 to 15 years
               Tools and equipment              Straight-line over 3 to 5 years
               Vehicles                         Straight-line over 5 years
               Goodwill                         Straight-line over 5 years

       f)     Related party transactions

             Related party  transactions  are recorded at their exchange amounts
             which approximate fair market value.

                                       9
<PAGE>



                          E-AUCTION GLOBAL TRADING INC.

                                        .
                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
3.     SIGNIFICANT ACCOUNTING POLICIES - CONT'D
--------------------------------------------------------------------------------

       g)     Non-controlling interest

              Non-controlling   interest,   as  stated  on  the  balance  sheet,
              represents  the  carrying  value  in the net  assets  of  minority
              shareholders  of  the  Company's  subsidiaries.   The  balance  is
              increased or decreased by the minority shareholders' percentage of
              the subsidiaries' earnings or losses during the period.

       h)     Income taxes

              The  Company  would  record a  deferred  tax asset  subject  to an
              evaluation  allowance where that asset is impaired or not expected
              to be realized.  At December 31, 1999 the Company had deferred tax
              assets  of  approximately  $1,194,494.   The  Company's  valuation
              allowance would be equal to the amount of the deferred tax assets.
              Therefore,  there have been no amounts  booked in the  accounts of
              the Company.

       i)     Revenue recognition

              The Company  recognizes revenue from license fees upon the signing
              of the  specific  agreement  and the  delivery  of software to the
              purchaser. Royalties are recognized in the period it is earned.

              The Company follows the completed  contract method for recognizing
              revenues earned from clock and cooling systems  installation.  The
              application  is reasonable  given  majority of contracts are short
              term in nature.  Cost of sales  relating  to the clock and cooling
              systems  installation  include only costs directly  related to the
              specific contracts.  Revenue earned from maintenance contracts are
              recognized on a straight line basis over the life of the contract.

       j)     Inventory and work in progress

              Raw materials and consumables  inventories are stated at the lower
              of cost or market with cost being  determined  using the  weighted
              average  method.  Obsolete  or  defective  inventories  have  been
              reduced to net realizable  value.  Write-downs of inventories  are
              recorded on the basis of age and turnover of  inventory  according
              to the judgment of management.

             The work in progress includes only direct costs (i.e. raw materials
             and labour costs).

                                       10
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
  4.     CAPITAL ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                   2000                          1999
                                                                                     $                             $
                                                                   ----------------------------------------- ------------------
                                                                                Accumulated
                                                                   Cost         Amortization          Net             Net
                                                                   ----         ------------          ---             ---
<S>                                                               <C>               <C>            <C>
         Land and buildings                                       483,916           25,321         458,595                  -
         Equipment and furniture                                   75,454            6,372          69,082                  -
         Software  *                                               12,329                -          12,329             34,247
         Vehicles                                                 216,797           32,963         183,834                  -
                                                                  -------           ------         -------             ------

                                                                  788,496           64,656         723,840             34,247
                                                                  =======           ======         =======             ======
</TABLE>


             *  The  software  is  currently   not  in  use  and   therefore  no
             amortization has been claimed.

          Included in vehicles  are assets  under  capital  lease with a cost of
          $83,627. Accumulated amortization on these vehicles totals $6,704.

--------------------------------------------------------------------------------
  5.   ACQUISITION OF SHELFHOUT COMPUTER SYSTEMEN N.V.
--------------------------------------------------------------------------------

                                                  2000        1999
                                                  ----        ----
                                                    $           $

      Goodwill                                7,267,159           -
      Less: accumulated amortization            726,000           -
                                              ---------  ------------
                                              6,541,159
                                              =========  ============

       On January 7, 2000 the  Company  completed  the  purchase  of 100% of the
       issued  and  outstanding  shares of  Schelfhout  Computer  Systemen  N.V.
       ("Schelfhout"). The acquisition has been accounted for using the purchase
       method.

                                       11
<PAGE>


                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
  5.   ACQUISITION OF SHELFHOUT COMPUTER SYSTEMEN N.V. - CONT'D
--------------------------------------------------------------------------------

       The following represents a summary of the acquisition of Schelfhout:
<TABLE>
<CAPTION>
                                                                                          $                    $
                                                                                       ----------         ----------
<S>                                                                                    <C>                   <C>
      Purchase price                                                                                       7,636,364

      Net tangible assets of SCS acquired
          Total assets                                                                  2,231,733
          Less:  Liabilities                                                           (1,862,528)           369,205
                                                                                       ----------         ----------

      Excess of purchase price over net tangible assets, being goodwill                                    7,267,159
                                                                                                           =========

       The purchase price is $7,636,364 and is to be paid as follows:

                                                                                          $

      Refundable deposit                                                                1,000,000    paid
      Cash on closing                                                                   3,000,000    paid
      Common shares at fair value
         issued on closing (3,636,364)                                                  3,636,364    issued
                                                                                        ---------

                                                                                        7,636,364
                                                                                        =========
</TABLE>

       The  3,636,364  common  shares are not free  trading and are subject to a
       timed release  formula  which allows for release of 454,545  shares worth
       $750,000 on each of the 6, 12, 18 and 24 month anniversary of the closing
       and 606,061  shares with a deemed value of  $1,000,000 on each of the 36,
       48 and 60 month  anniversary of the closing.  If the Company's shares are
       not freely trading on any given release date the equivalent cash is to be
       paid by the Company and the shares returned to the treasury.

       The  3,636,364  common  shares  issued to the vendors on closing has been
       valued at $1 per share  for  accounting  purposes;  however,  should  the
       Company decide to redeem the shares,  the redemption price would be $1.65
       per share.

       As at October 2, 2000 the shares of the  Company  are not freely  trading
       and the Company has not  advanced the required sum of $750,000 in lieu of
       the release of 454,545 common shares per the purchase agreement.

--------------------------------------------------------------------------------
  6.   DEPOSITS ON ACQUISITION OF KWATROBOX
--------------------------------------------------------------------------------
                                                            2000        1999
                                                             $            $

      Cash issued to date (750,000 Dutch Guilders)        322,241           -
      Shares issued to date (500,000)                     739,884           -
                                                          -------
                                                                            -
                                                        1,062,125           -
                                                        =========  ==========

                                       12
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
--------------------------------------------------------------------------------
  6.   DEPOSITS ON ACQUISITION OF KWATROBOX - CONT'D
--------------------------------------------------------------------------------

       On June 5, 2000 the Company  entered into a pledge  agreement to purchase
       100% of the issued and outstanding shares of Kwatrobox B.V. ("Kwatrobox")
       under the terms and conditions of the draft share purchase agreement. The
       pledge agreement stipulated the purchase of Kwatrobox was to be completed
       on or before  August  31,  2000.  The  completion  date was  extended  to
       November 30, 2000 by both parties in an agreement  dated August 30, 2000.
       For the purpose of the payment  schedule,  the parties agreed the closing
       date of the share purchase agreement is deemed to be June 30, 2000. As at
       October 2, 2000 the purchase is not yet complete.

       In connection with the purchase agreement,  the Company agreed to pay the
       vendors  10,500,000  Dutch  Guilders  ($4,506,600  at the  June  5,  2000
       exchange  rate or  0.4292).  The  purchase  price is  payable in cash and
       common shares of the Company as follows:

      Date                      Dutch Guilders                 Common Shares

      June 5, 2000                750,000 (paid)              500,000 (issued)
      June 5, 2001              2,250,000                      450,000
      June 5, 2002              1,000,000                      150,000

       The amounts  paid and shares  issued at June 5, 2000 are  non-refundable.
       Additionally,  the  Company  is also  committed  to issuing up to 200,000
       common  shares to the vendors  subject to Kwatrobox  meeting  performance
       requirements  for a  three-year  period  commencing  June 5, 2000.  As at
       October 2, 2000 no shares have been issued as the  requirements  have not
       been met.

--------------------------------------------------------------------------------
  7.   DEFERRED REVENUE
--------------------------------------------------------------------------------

                                                            2000         1999
                                                            ----         ----
                                                             $ 0          $
         Deferred revenue                                  721,212         -
                                                           =======      ========

       Deferred  revenue  relates  to  the  Company's  European   operations  of
installation of clock and cooling systems.

                                       13
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
  8.   DUE TO RELATED PARTIES
--------------------------------------------------------------------------------
<S>                                                                  <C>                <C>
                                                                     2000               1999
                                                                       $                  $

      Ventures North Investment Partners Inc. ("Ventures")           47,945            365,824
                                                                     ======            =======
</TABLE>
       The  majority  of the  Company's  operations  during  1999 were funded by
       Ventures.  During the first  quarter,  Ventures  converted  approximately
       $591,000  of debt owed to it into  common  shares at a price of $0.50 per
       share. Ventures is related through significant common shareholdings.  The
       amounts  advanced  were  non-interest  bearing  with no  fixed  terms  of
       repayment.

--------------------------------------------------------------------------------
  9.   LONG-TERM DEBT
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                       2000        1999
                                                                                        $           $
                                                                                       ----        ----
<S>                                                                                  <C>
      Various bank loans for automobile purchases bearing interest at
      rates of 3.67% to 5.59%.  Monthly payments of 4,129 euro.  Due
      dates extend to June 15, 2003                                                  100,142          -

      Bank loan with interest at 5.65% per annum.  Monthly payments of
      1,359 euro.  Due December 25, 2007                                              92,844          -

      Directors loan with interest at 5.65% per annum.  Monthly payments of
      446 euro.  Due July 1, 2009                                                     41,264          -
                                                                                    --------   --------
                                                                                     234,250          -
      Less:  current portion                                                          53,029          -
                                                                                    --------   --------

                                                                                     181,221                  -
                                                                                     =======  ============    =
</TABLE>

                                       14
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)


--------------------------------------------------------------------------------
  10.  OBLIGATIONS UNDER CAPITAL LEASE
--------------------------------------------------------------------------------

                                                          2000        1999
                                                           $            $

      Obligations under capital lease                     34,771         -
      Less: current portion                                8,304         -
                                                         -------    -------

                                                          26,467         -
                                                         =======    =======

       Future minimum payments due:

                                                                $

               2001                                         10,819
               2002                                          8,928
               2003                                          8,928
               2004                                          7,740
                                                             -----
                                                            36,415

               Less: amount representing interest            1,644
                                                         ---------

                                                            34,771
                                                            ======

--------------------------------------------------------------------------------
  11.  NON-CONTROLLING INTEREST
--------------------------------------------------------------------------------

       The  Company is the  majority  owner  (50.01%) of  e-Auction  Australasia
       Limited  ("Australasia").  The  non-controlling  interest  represents the
       interest of the minority  shareholders of Australasia as at June 30, 2000
       as follows:

       Non-controlling interest at acquisition             $ 918,502
       Less: share of current period earnings(loss)         (138,834)
                                                            --------

       Non-controlling interest, end of period             $ 779,668
                                                            ========

                                       15
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
  12.  SHARE CAPITAL AND CONTRIBUTED SURPLUS
--------------------------------------------------------------------------------

       a)     Authorized - 250,000,000 common shares with a par value of $0.001
<TABLE>
<CAPTION>

                                                                    NUMBER OF                         CONTRIBUTED      TOTAL
                                                                     SHARES              $              SURPLUS          $
                                                                   ----------          ------        ----------      ----------
<S>                                                                <C>                 <C>             <C>                    <C>
      b)     Issued - balance, beginning of period                 39,820,000          39,820          (39,819)               1
                                                                    ---------           -----         ---------       ---------
             Private placement (iii)                               16,591,815          16,592         8,279,315       8,295,907
             Commission                                               327,878             328           163,612         163,940
             Less: issue costs and commission                                                         (327,332)        (327,332)

             Millenium advisors (iv)                                  197,219             197           999,803       1,000,000

             Schelfhout Acquisition (v)                             3,636,364           3,636         3,632,728       3,636,364
             Deposits on acquisition of Kwatrobox (vi)              1,100,000           1,100         1,626,654       1,627,754
             Private placement                                      4,072,639           4,073         7,495,927       7,500,000
             Less:  issue costs                                             -               -         (85,000)         (85,000)
                                                                    ---------           -----         ---------       ---------
                                                                   25,925,915          25,926        21,785,707      21,811,633
                                                                    ---------           -----         ---------       ---------

                                                                   65,745,915          65,746        21,745,888      21,811,634

             Less: allocated to redeemable common stock                     -               -       (3,636,364)      (3,636,364)
                       held in treasury (vi)                         (600,000)          (600)         (887,266)        (887,866)
                                                                    ---------           -----         ---------       ---------

             Balance, end of period                                65,145,915          65,146        17,222,258      17,287,404
                                                                   ==========          ======        ==========      ==========
</TABLE>
       c)    Share capital and contributed surplus since inception
<TABLE>
<CAPTION>
                                                                                                              CONTRIBUTED SURPLUS
                  DATE ISSUED                    NUMBER OF SHARES                        $                                 $
                  -----------                    ----------------                     -------                 -------------------
<S>                                                     <C>                             <C>                             <C>
             April 30, 1998 (i)                         34,500,000                      34,500                          (34,500)
             February 26, 1999 (ii)                      5,320,000                       5,320                           (5,319)
             January 7, 2000 (iii)                      16,919,693                      16,920                        8,115,595
             January 7, 2000 (iv)                          197,219                         197                          999,803
             January 10, 2000 (v)                        3,636,364                       3,636                        3,632,728
             June 5, 2000 (vi)                             500,000                         500                          739,388
             June 22, 2000                               4,072,639                       4,073                        7,410,927
                                                         ---------                       -----                        ---------
                                                        65,145,915                      65,146                       20,858,622
                                                        ==========                      ======                       ==========
</TABLE>

             (i)  For reverse  takeover  accounting  purposes  these shares have
                  been deemed to have been issued on April 30, 1998, the date of
                  incorporation of Barbados.

                                       16
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
--------------------------------------------------------------------------------
  12.  SHARE CAPITAL AND CONTRIBUTED SURPLUS - CONT'D
--------------------------------------------------------------------------------


             (ii) Shares  issued  by  Nevada  prior  to  the   incorporation  of
                  Barbados.  For reverse takeover accounting purposes these have
                  been deemed to have been issued on February 26, 1999, the date
                  of the reverse takeover transaction.

             (iii)On January 7, 2000 the Company  completed a private  placement
                  of 16,919,693  shares at $0.50/share.  7,625,916 of the shares
                  were issued to Ventures  North  Investment  Partners  Inc.,  a
                  company related through  significant common  shareholdings and
                  four companies  related to them in exchange for the settlement
                  of the  Company's  debts  with  Millenium  Advisors  Inc.  for
                  $1,000,000,  with the  shareholders  loan for $2,200,000  plus
                  interest of $21,968 and a finders  fee to the  shareholder  of
                  $200,000 and with Ventures North Investment  Partners Inc. for
                  $591,260. The remaining shares were issued for cash.

             (iv) On August 13, 1999, in consideration  for a loan of $1 million
                  by Millennium Advisors Inc. to e-Auction,  Millennium received
                  197,219  common  shares of the Company  with a deemed value of
                  $1,000,000 as a financing and interest fee.  These shares were
                  issued in January, 2000.

             (v)  On January 10, 2000,  the Company issued  3,636,364  shares of
                  common  stock to the  former  shareholders  of  Schelfhout  as
                  partial   consideration   for  the  purchase  by  the  Belgium
                  subsidiary of the Company of all of the shares of  Schelfhout.
                  The deemed price per share for accounting  purposes was $1.00.
                  As there are put  provisions  in the  purchase  agreement  the
                  Company has recorded a portion of the shares under the heading
                  `Redeemable common stock'.

           (vi)   During the  period  the  Company  issued  1,100,000  shares in
                  connection with its  acquisition of Kwatrobox.  500,000 of the
                  shares were released to the vendors and the remaining  600,000
                  are being held in treasury subject to the release  conditions.
                  As at October  2, 2000 the  acquisition  is not yet  complete.
                  (SEE NOTE 6)

                                       17
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
  12.  SHARE CAPITAL AND CONTRIBUTED SURPLUS - CONT'D
--------------------------------------------------------------------------------

       d)    Stock options

             On March 1, 1999, and amended on March 13, 2000 the Company adopted
             a stock  option  plan  which  reserved  9,000,000  shares.  Vesting
             requirements  are  determined  by a Committee  when the options are
             granted.  No option may be exercisable after 10 years. The exercise
             price of an option  may not be less than the fair  market  value on
             the date of grant.
<TABLE>
<CAPTION>
                 DATE OF GRANT                  NUMBER         EXERCISE PRICE          EXPIRY DATE       RESTRICTIONS
                 -------------                  ------         --------------          -----------       ------------
<S>                <C>                            <C>                  <C>                   <C>
             March 1, 1999                        1,000,000            $0.01        December 1, 2003        None
             December 1, 1999                     3,000,000            $0.85        December 1, 2009        None
             December 1, 1999                        50,000            $0.85        December 1, 2009        Vest over 3 years
             January 20, 2000                       300,000            $2.00        January 20, 2010        None
             April 24, 2000                         100,000            $2.00        April 24, 2010          Vest over 3 years
             May 2, 2000                          1,825,000            $2.00        May 2, 2010             Various
</TABLE>

           The weighted average exercise price of the options is $1.13/share.

           The weighted  average grant date fair value of options granted during
the period is as follows:

             -  Exercise price equals fair market value                $2.22
             -  Exercise price exceeds fair market value               $0.70
             -  Exercise price less than fair market value             $0.00

           The  Company  has  not  recognized   compensation   expense  for  its
           stock-based awards to employees.  The following reflects proforma net
           income and loss per share had the  Company  elected to adopt the fair
           value approach of SFAS 123:
<TABLE>
<CAPTION>
                                                                                                  2000           1999
                                                                                                    $              $
                                                                                                  ----           ----
             Net loss
<S>                                                                                            <C>
               As reported                                                                     (1,540,698)             -
               Proforma                                                                        (3,366,906)    2,890,300)

             Basic and diluted loss per share
               As reported                                                                          (0.03)             -
               Proforma                                                                             (0.05)        (0.12)

           The estimated fair value of each option  granted is calculated  using
           the   Black-Scholes   option-pricing   model.  The  weighted  average
           assumptions used in the model were as follows:

                                                                                                   2000           1999

             Risk-free interest rate                                                                  6%             5%
             Expected years until exercise                                                            8              8
             Expected stock volatility                                                            36.85%          36.8%
             Dividend yield                                                                           0%             0%
</TABLE>

                                       18
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
  13.  RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                                       2000       1999
                                                                                                        $           $
                                                                                                      -------    ------
<S>                                                                                                   <C>        <C>
      Expenses paid on behalf of the Company and allocations of expenses charged
      to the Company by companies with significant common
      shareholdings and common directors                                                              67,145     132,477

      Financing fee paid to Millennium Advisors Inc., a company related through
      a common director.  Paid through the issuance of 197,219 common shares                       1,000,000           -

      A finders fee in connection with the shareholder's loan was paid to a
      shareholder                                                                                    200,000           -

      Interest in connection with the shareholder's loan was paid                                     21,698           -

      Management fees paid to a company controlled by two directors                                  158,400           -
</TABLE>

       Included in accounts  payable and  accrued  liabilities  is $431,398  and
       included  in  long-term  debt  is  $41,264  owing  to  two  directors  of
       Schelfhout.

--------------------------------------------------------------------------------
  14.  COMPARATIVE FIGURES
--------------------------------------------------------------------------------

       Comparative  figures are for the period from  January 1, 1999 to June 30,
       1999 of e-Auction Global Trading Inc. Certain of the comparative  figures
       have been  reclassified  to  conform  to the  current  presentation.  The
       comparative figures were prepared by management.

                                       19
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
15.    CONTINGENCIES
--------------------------------------------------------------------------------


       a)  A shareholder  derivative  action was brought  against the Company on
           November 17, 1999 in the United  States  District  Court  against the
           Company,  its  subsidiaries,  two of its  directors and several other
           companies and individuals.

           The action alleges Sanga  International,  Inc.'s ("Sanga") reputation
           was  damaged  by the  Defendants  (i)  engaging  in  conversion  (ii)
           engaging in fraud (iii) interfering with Sanga's prospective business
           advantage (iv) breach of contract (v) violating California usury laws
           and (vi) breach of fiduciary duty.

           The plaintiff  claims the  defendants'  actions have not only damaged
           Sanga but also the plaintiff and the remaining  shareholders of Sanga
           by as much as $100 million dollars.

           The  Action  was  stayed on  November  29,  1999 as a result of Sanga
           filing for  Chapter 11  bankruptcy  protection  in the United  States
           Bankruptcy Court.

           It is  management's option that the likelihood  of a material loss is
           remote.

       b)  On February 7, 2000 a second action was brought  against the Company,
           its subsidiaries,  two of its former directors, QFG Holdings Limited,
           Ventures North  International  Inc. and several other individuals and
           companies in the United States District Court.

           The  action  alleges  they  breached  their  fiduciary  duty  to  the
           plaintiff,  a shareholder of Sanga  International  Inc. The plaintiff
           claims  that the  defendants'  actions  have  damaged  the  plaintiff
           totaling several millions of dollars.

           Sanga International, Inc. has filed a motion seeking to intervene in
           the lawsuit and is seeking to substitute itself as the real party
           plaintiff.

           It is  management's  option that the likelihood of a material loss is
           remote.

                                       20
<PAGE>


                         E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                (IN U.S. FUNDS)

--------------------------------------------------------------------------------
16.    SEGMENTED INFORMATION
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                                     INDUSTRY A
                                                                                                    NORTH AMERICA

                                                                                            2000                    1999
                                                                                               $                      $
                                                                                            ----                    ----
<S>                                                                                        <C>                       <C>
           Revenue outside the Company                                                              -                        -
           Segmented operating loss                                                        (1,408,485)               (638,251)
           Identifiable assets                                                             10,685,661                   35,271
           Capital expenditure                                                                 39,731                        -
           Amortization                                                                       728,400                        -


                                                                                                       INDUSTRY B
                                                                                                         EUROPE
                                                                                            2000                    1999
                                                                                               $                      $
                                                                                            ----                    ----

           Revenue outside the Company                                                      1,979,919                        -
           Segmented operating profit                                                           6,565                        -
           Identifiable assets                                                              8,969,272                        -
           Capital expenditure                                                                 50,179                        -
           Amortization                                                                        51,522                        -


                                                                                                       INDUSTRY C
                                                                                                        AUSTRALIA
                                                                                            2000                    1999
                                                                                               $                      $
                                                                                            ----                    ----

           Revenue outside the Company                                                              -                        -
           Segmented operating loss                                                          (277,612)                       -
           Identifiable assets                                                                566,794                        -
           Capital expenditure                                                                 62,582                        -
           Amortization                                                                         1,826                        -
</TABLE>

                                       21
<PAGE>


                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                     FOR THE SIX MONTHS ENDED JUNE 30, 2000

                                 (IN U.S. FUNDS)


--------------------------------------------------------------------------------
16.    SEGMENTED INFORMATION - CONT'D
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                      TOTAL

                                                                          2000               1999
                                                                             $                 $
                                                                          ----               ----
<S>                                                                      <C>
           Revenue outside the Company                                   1,979,919                -
           Segmented operating loss                                     (1,679,532)               -
           Identifiable assets                                          20,221,727        (638,251)
           Capital expenditure                                             152,492           35,271
           Amortization                                                    781,748                -
</TABLE>

       For the purpose of segmented  information  as presented  above,  goodwill
       arising  from  the  acquisitions  of  subsidiaries  are  included  in the
       identifiable assets of the geographic segments of the subsidiaries.


--------------------------------------------------------------------------------
17.    SUPPLEMENTAL NON-CASH INFORMATION
--------------------------------------------------------------------------------
       During the period the  Company  issued  3,636,364  common  shares  with a
       deemed  value  of  $3,636,364  in  connection  with  the  acquisition  of
       Schelfhout Computer Systemen N.V.

       The  Company  issued  197,219  common  shares  with  a  deemed  value  of
       $1,000,000  to  Millennium  Advisors  Inc. as payment of a financing  and
       interest fee.

       The Company issued  8,026,456  common shares to a related party to settle
       various debts totaling $4,013,228 and issued 327,878 shares with a deemed
       value of $163,940 to pay commission on a private placement.

       The Company  issued 500,000 common shares with a deemed value of $739,884
       in connection with its investment in Kwatrobox B.V.

       The Company  acquired a vehicle with a cost of $42,362  through a capital
       lease.

                                       22
<PAGE>


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        ------------------------------------------------------------------------
        OF OPERATIONS
        -------------

         When used  herein,  the words  "may",  "will",  "expect,"  anticipate,"
"continue," "estimate," "project," "intend",  "plan" and similar expressions are
intended to identify  forward-looking  statements  within the meaning of Section
27A of the  Securities  Act and Section 21E of the  Securities  Exchange  Act of
1934, as amended,  regarding  events,  conditions and financial  trends that may
affect the Company's future plans of operations,  business  strategy,  operating
results and financial position. Forward-looking statements are not guarantees of
future  performance and are subject to risks and significant  uncertainties  and
that  actual  results  may  differ  materially  from those  included  within the
forward-looking statements as a result of various factors. The occurrence of any
unanticipated  events may cause actual results to differ from those expressed or
implied by the  forward-looking  statements  contained herein. You are cautioned
not to place undue reliance on these statements, which speak only as of the date
of this report.

OVERVIEW

         The Company was  incorporated in the State of Nevada on January 8, 1998
under  the name  Kazari  International,  Inc.  On  February  26,  1999,  Kazari,
e-Auction  Global  Trading  Inc.   (Barbados)  entered  into  a  share  exchange
agreement.  Pursuant to the agreement,  Kazari  purchased  e-Auction  (Barbados)
shares on a one for one basis.  Kazari had no viable business  activities at the
time of the share exchange agreement.  On June 10, 1999, Kazari amended its name
to e-Auction Global Trading Inc.

         The  Company  currently  has  a  wholly  owned  subsidiary,   e-Auction
(Barbados),  which  in turn  has  one  wholly  owned  subsidiary,  Aucxis  Corp.
(Canada). The Company also owns Aucxis Corp. (Belgium),  directly,  which in has
one wholly  owned  subsidiary,  Schelfhout  Computer  Systemen  N.V.,  a Belgium
company.  The Company has a 50.01% ownership  interest in e-Auction  Australasia
Pay Limited, an Australian Company.

HIGHLIGHTS OF THE QUARTER

         Revenue for the six months ended June 30, 2000 was $1,979,919  compared
to $0 for the six months ended June 30, 1999. Revenue for the three months ended
June 30, 2000 was  $951,084  compared to $0 in the three  months  ended June 30,
1999.  The  increase in revenue  was a result of the  Company's  acquisition  of
Schelfhout  Computer  Systemen,  N.V. in January  2000.  Schelfhout  derives its
revenues  from  the  development  and  installation  of clock  systems,  cooling
installations and maintenance for auction halls.

         Net loss for the six months  ended  June 30,  2000 was  $1,540,698,  as
compared to a loss of $638,251 in the  corresponding six month period ended June
30, 1999.  Net loss for the three months  ended June 30, 2000 was  $779,848,  as
compared to  $505,774  in the similar  three  months

                                       23
<PAGE>

ended  June 30,  1999.  The  increase  in net loss for the six months is largely
attributable to an increase in depreciation and amortization of $781,748.

         The Company  completed a strategic  partnership  with ABN AMRO  Capital
Investments  (Belgie)  N.V.  to provide  integrated  financial  services  to our
perishable  commodity  auction  houses.  The Company  and ABN AMRO will  jointly
develop  the  Internet-based  system to  provide  financial  services  including
foreign exchange, credit management and settlement services.

LIQUIDITY AND CAPITAL RESOURCES

         During the second quarter ended June 30, 2000, the Company successfully
raised new capital through the issuance of 4,072,639 shares of its common stock,
generating  gross  proceeds  of  approximately  $7,500,000.  The deal was  fully
underwritten by ABN AMRO Capital  Investments  (Belgium) NV, the Belgian venture
capital  vehicle of ABN AMRO.  The  Company  will use the equity  investment  to
further its business plan. In addition, Bart Sonck, Managing Director of the ABN
AMRO Capital Investments (Belgium) NV, joined the Company's board of directors.



                                       24
<PAGE>


PART II - OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS
                  -----------------

         (a) A shareholder derivative action was brought on November 17, 1999 in
the  United  States  District  Court in  California  against  the  Company,  its
subsidiaries, two of its directors and several other companies and individuals.

         The  proceeding  alleges that the  reputation  of Sanga  International,
Inc.'s  ("Sanga")  was  damaged  and that the  defendants  are liable  for:  (i)
engaging in conversion;  (ii) engaging in fraud;  (iii) interfering with Sanga's
prospective  business  advantage;   (iv)  breach  of  contract;   (v)  violating
California  usury laws; and (vi) breach of fiduciary duty. The plaintiff  claims
the  defendants'  actions have not only damaged Sanga but also the plaintiff and
the remaining shareholders of Sanga by as much as $100 million dollars.

         The  proceeding  was stayed on  November  29, 1999 as a result of Sanga
filing for Chapter 11  bankruptcy  protection  in the United  States  Bankruptcy
Court.  It is  management's  opinion that the  likelihood  of a material loss is
remote.

       (b) On  February 7, 2000,  a second  proceeding  was brought  against the
Company,  its subsidiaries,  two of its former directors,  QFG Holdings Limited,
Ventures North International Inc. and several other individuals and companies in
the United States District Court.

         The proceeding alleges defendants  breached their respective  fiduciary
duties to the plaintiff, a shareholder of Sanga International Inc. The plaintiff
claims that the  defendants'  actions have  damaged the  plaintiff in the sum of
several million  dollars.  It is  management's  opinion that the likelihood of a
material loss is remote.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS
         -----------------------------------------

         On June 22, 2000, the Company issued  4,072,639  shares of common stock
to ABN AMRO Capital Investments  (Belgie) N.V. The purchase price for the shares
of the  common  stock was  $1.842,  resulting  in  proceeds  to the  Company  of
approximately  $7,500,000.  The offering was made in an off-shore transaction to
the  purchaser  who certified  that it (i) was not a U.S.  person,  (ii) was not
acquiring the  securities for the account or benefit of any U.S.  person,  (iii)
was an  accredited  or  sophisticated  purchaser  and (iv)  agreed to resell the
securities only in compliance with Regulation S ("Regulation  S") as promulgated
by the SEC under  the  Securities  Act of 1933,  as  amended  (the  "Act").  The
Investor  understands  that it must hold the shares for an indefinite  period of
time unless the sale or other transfer thereof is subsequently  registered under
the Securities Act or an exemption from such  registration  is available at that
time.  In issuing the above  referenced  securities,  the Company  relied on the
exemption  afforded by Section 4(2) of the Act and Regulation S, as transactions
by an  issuer  not  involving  any  public  offering  to a non-US  person  in an
off-shore transaction.

                                       25
<PAGE>


ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
                  ---------------------------------------------------

         There were no matters submitted for a vote of securities holders during
the three months ended June 30, 2000.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K
                  --------------------------------

EXHIBIT #            EXHIBIT NAME
---------            ------------

Exhibit 27           Financial Data Schedule

         In  accordance  with the  requirements  of the Exchange Act 0f 1934, as
amended, the registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date:  October 11, 2000             e-Auction Global Trading Inc.



                                    By: /s/ David W.A. Hackett
                                        ---------------------------------------
                                        David W.A. Hackett
                                        Chief Financial Officer (Duly Authorized
                                        Officer)

                                       26