UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549_________________FORM 10-QSB

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

For the quarterly period ended September 30, 2002

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

0-9040

Commission file number

Aucxis Corp.(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.)

Suite 500 - 666 Burrard Street, Vancouver, BC V6C 3P6 Canada.
  (Address of principal executive offices)

604-639-3109
  (Issuer's telephone number)

220 King Street West, Suite 200 Toronto, Ontario, M5H 1K4
  Canada.
  (Former Name, Address and Former Fiscal Year, if Changed Since Last Report)

|Check whether the issuer:
|-------------------------
|                         
|                         
|                         
|                         

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....

As of November 20, 2002 there were 66,409,415shares of the Registrant's common stock, par value $0.001 per share outstanding.

Transitional Small Business Disclosure Format (check one);

Yes......No....X....

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AUCXIS CORP. (FORMERLY E-AUCTION GLOBAL TRADING INC.)

FORM 10-QSB

INDEX

|PART I. FINANCIAL INFORMATION                                                               | Page
|------------------------------------------------------------------------------------------- | ----
|                                                                                            |     
|                                                                                            |     
|Item 1. Financial Statements                                                                | 3   
|                                                                                            |     
|Consolidated Balance Sheet at September
      30, 2002 (Unaudited) and December 31, 2001    | 4   
|                                                                                            |     
|Consolidated Statements of Operations, Deficit
      and Comprehensive Loss (Unaudited) for | 5   
|the nine months ended September 30, 2002
      and 2001                                     |     
|                                                                                            |     
|Consolidated Statements of Cash Flows (Unaudited) for
      the nine months ended           | 6   
|September 30, 2002 and 2001                                                                 |     
|                                                                                            |     
|Notes to Consolidated Financial Statements                                                  | 7   
|                                                                                            |     
|Item 2. Managements Discussion and Analysis of Financial Condition
      and Results of    | 13  
|Operations                                                                                  |     
|                                                                                            |     
|PART II. OTHER INFORMATION                                                                  | 16  
|                                                                                            |     
|Item 1. Legal Proceedings                                                                   | 16  
|                                                                                            |     
|Item 5: Other Information                                                                   | 17  
|                                                                                            |     
|Item 6. Exhibits and Reports on Form 8-K                                                    | 18  
|                                                                                            |     
|Signatures                                                                                  | 18  

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ITEM 1. Financial Statements 
  Aucxis Corp. 
  (formerly e-Auction Global Trading Inc.) 
  (a Nevada Corporation)

Consolidated Financial Statements 
  (Unaudited)
  September 30, 2002 
  (expressed in U.S. dollars)

---



---

AUCXIS CORP.

(formerly e-Auction Global Trading Inc.)

(a Nevada Corporation)

CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2002

(in U.S. dollars)

---



---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) CONSOLIDATED BALANCE SHEETS 
  (in U.S. dollars)

---

|                                                        | September 30, |             | December 31, |  
|------------------------------------------------------- | ------------- | ----------- | ------------ | -
|                                                        | 2002          |             | 2001         |  
|                                                        |               |             |              |  
|                                                        |               |             |              |  
|ASSETS                                                  |               |             |              |  
|                                                        |               |             |              |  
|CURRENT ASSETS                                          |               |             |              |  
|Cash and equivalents                                    | $             | 521,183     |              | $
|Accounts receivable (Note 5)                            |               | 855,292     |              |  
|Inventory (Note 6)                                      |               | 1,989,528   |              |  
|Prepaid expenses                                        |               | 67,404      |              |  
|                                                        |               |             |              |  
|Total Current Assets                                    |               | 3,433,407   |              |  
|                                                        |               |             |              |  
|Investments (Note 7)                                    |               | 132,372     |              |  
|Property, plant and equipment (Note 8)                  |               | 443,926     |              |  
|Acquired core technology (Notes 4 and 10)               |               | 337,037     |              |  
|                                                        |               |             |              |  
|Total Assets                                            | $             | 4,346,742   |              | $
|                                                        |               |             |              |  
|                                                        |               |             |              |  
|LIABILITIES                                             |               |             |              |  
|                                                        |               |             |              |  
|CURRENT LIABILITIES                                     |               |             |              |  
|Accounts payable and accrued liabilities (Note 13)      | $             | 1,080,731   |              | $
|Due to related parties (Note 14)                        |               | 353,935     |              |  
|Deferred revenue                                        |               | 2,395,535   |              |  
|Current portion of long-term debt (Note 16)             |               | 482,996     |              |  
|Deferred taxes                                          |               | 12,843      |              |  
|                                                        |               |             |              |  
|Total Current Liabilities                               |               | 4,326,040   |              |  
|Long-term debt (Note 16)                                |               | 116,566     |              |  
|                                                        |               |             |              |  
|Total                                                   |               | 4,442,606   |              |  
|Mandatory Redeemable Shares of Common Stock (Note 4(a)) |               | 4,818,181   |              |  
|                                                        |               |             |              |  
|Total Liabilities                                       |               | 9,260,787   |              |  
|                                                        |               |             |              |  
|                                                        |               |             |              |  
|STOCKHOLDERS EQUITY (DEFICIT)                          |               |             |              |  
|                                                        |               |             |              |  
|COMMON STOCK, $0.001 par value; 62,714,551 shares       |               |             |              |  
|authorized, 62,714,551 issued and outstanding           |               | 62,773      |              |  
|Additional paid-in capital                              |               | 18,736,200  |              |  
|Accumulated other comprehensive (loss) income           |               | 213,020     |              |  
|Deficit                                                 |               | (23,926,038 | )            |  
|                                                        |               |             |              |  
|Total Stockholders Equity (Deficit)                    |               | (4,914,045  | )            |  
|                                                        |               |             |              |  
|Total Liabilities and Stockholders Equity (Deficit)    | $             | 4,346,742   |              | $
|                                                        |               |             |              |  
|                                                        |               |             |              |  
|Contingencies (Notes 1 and 23)                          |               |             |              |  
|Subsequent Events (Note 24)                             |               |             |              |  

Approved on behalf of the Board of Directors:

______________________

______________________

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

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AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) CONSOLIDATED STATEMENTS OF OPERATIONS, DEFICIT AND COMPREHENSIVE LOSS
  
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002

---

|                                                                                     |   | Nine months   |   |   | Nine months   |   |   | Three months  |   |   | Three months  |  
|------------------------------------------------------------------------------------ | - | ------------- | - | - | ------------- | - | - | ------------- | - | - | ------------- | -
|                                                                                     |   | ended         |   |   | ended         |   |   | ended         |   |   | ended         |  
|                                                                                     |   | September 30, |   |   | September 30, |   |   | September 30, |   |   | September 30, |  
|                                                                                     |   | 2002          |   |   | 2001          |   |   | 2002          |   |   | 2001          |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Revenue                                                                              | $ | 4,172,485     |   | $ | 5,571,147     |   | $ | 1,561,714     |   | $ | 1,984,138     |  
|Cost of goods sold                                                                   |   | 1,717,966     |   |   | 2,683,028     |   |   | 398,622       |   |   | 937,675       |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   | 2,454,519     |   |   | 2,888,119     |   |   | 1,163,092     |   |   | 1,046,463     |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Selling, general and administrative expense                                          |   | 2,732,221     |   |   | 6,015,966     |   |   | 1,106,958     |   |   | 1,810,746     |  
|Depreciation and amortization expense                                                |   | 233,912       |   |   | 1,874,505     |   |   | 111,982       |   |   | 482,072       |  
|Research and development                                                             |   | -             |   |   | 972,390       |   |   | -             |   |   | (1,525        | )
|Write off of requiredworkforce and technology                                        |   | -             |   |   | 4,383,378     |   |   | -             |   |   | 3,576,702     |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   | 2,966,133     |   |   | 13,246,239    |   |   | 1,218,940     |   |   | 5,867,997     |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Loss before the under-noted                                                          |   | (511,614      | ) |   | (10,358,120   | ) |   | (55,848       | ) |   | (4,821,534    | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Share of income (loss) of equity investment                                          |   | (2,950        | ) |   | 2,372         |   |   | (2,950        | ) |   | (87,676       | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Interest income                                                                      |   | -             |   |   | 137,811       |   |   | -             |   |   | 16,163        |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Write down of Kwatroboxs net liabilities                                            |   | -             |   |   | 787,606       |   |   | -             |   |   | -             |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Loss on sales and write down of assets                                               |   | (122,667      | ) |   | -             |   |   | (6,895        | ) |   | 787,606       |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Loss before income taxes and non-controlling interest                                |   | (637,231      | ) |   | (9,430,331    | ) |   | (65,393       | ) |   | (4,105,441    | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Income tax recovery (expense)                                                        |   | (59,003       | ) |   | (59,979       | ) |   | (67,108       | ) |   | (64,469       | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Non-controlling interest                                                             |   | -             |   |   | (1,791        | ) |   | -             |   |   | 904           |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Loss for the period                                                                  |   | (696,234      | ) |   | (9,492,100    | ) |   | (132,801      | ) |   | (4,169,006    | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Deficit beginning of period                                                          |   | (23,229,804   | ) |   | (8,258,366    | ) |   | (23,777,042   | ) |   | (13,581,461   | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Deficit end of period                                                                |   | (23,926,038   | ) |   | (17,750,467   | ) |   | (23,909,843   | ) |   | (17,750,467   | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Basis loss per share                                                                 | $ | (.01          | ) | $ | (.15          | ) | $ | (.01          | ) | $ | (0.07         | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Loss for the period                                                                  | $ | (696,234      | ) | $ | (9,492,100    | ) | $ | (132,801      | ) | $ | (4,169,006    | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Foreign currency translation adjustments and                                         |   |               |   |   |               |   |   |               |   |   |               |  
|other comprehensive income (loss)                                                    |   | 63,120        |   |   | 101,902       |   |   | 69,338        |   |   | (56,333       | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Comprehensive loss                                                                   | $ | (593,259      | ) | $ | (9,390,198    | ) | $ | (63,463       | ) | $ | (4,225,339    | )
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|Shares used in computing basic earnings per share                                    |   | 62,738,926    |   |   | 62,714,551    |   |   | 62,738,926    |   |   | 62,714,551    |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|                                                                                     |   |               |   |   |               |   |   |               |   |   |               |  
|(Diluted loss per share has not been presented
      as the result is anti-dilutive) |   |               |   |   |               |   |  

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

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AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) CONSOLIDATED STATEMENTS OF CASH FLOWS 
  (in U.S. dollars)

|                                                                           |   |          |   |   |            |  
|-------------------------------------------------------------------------- | - | -------- | - | - | ---------- | -
|NINE MONTHS ENDED SEPTEMBER 30 2002 2001                                   |   | **2002** |   |   | **2001**   |  
|                                                                           |   |          |   |   |            |  
|OPERATING ACTIVITIES                                                       |   |          |   |   |            |  
|Loss for the period                                                        | $ | (696,234 | ) | $ | (9,492,101 | )
|Adjustments to reconcile net loss to cash                                  |   |          |   |   |            |  
|Interest                                                                   |   | 23,048   |   |   | -          |  
|Depreciation and amortization                                              |   | 233,912  |   |   | 1,874,505  |  
|Foreign exchange                                                           |   | 69,630   |   |   | (6,465     | )
|Write-off of acquired workforce, core
      technology and goodwill        |   | -        |   |   | 4,383,378  |  
|Write-off of bank overdraft and long-term
      debt                       |   | -        |   |   | (975,834   | )
|Write-off of capital assets                                                |   | -        |   |   | 646,378    |  
|Gain on settlement of payables                                             |   | -        |   |   | (51,259    | )
|Loss on disposal of assets                                                 |   | -        |   |   | 17,918     |  
|Stock-based compensation                                                   |   | -        |   |   | 4,795      |  
|Non-controlling interest                                                   |   | -        |   |   | 1,790      |  
|Stock options issued to non-employees                                      |   | -        |   |   | -          |  
|Share of (income) loss of equity investment                                |   | 2,950    |   |   | (2,372     | )
|Provision for impairment                                                   |   | 82,003   |   |   | -          |  
|Loss on sale of assets and other                                           |   | 40,664   |   |   | -          |  
|Net change in non-cash working capital items (Note 19)                     |   | 140,711  |   |   | (1,272,173 | )
|                                                                           |   |          |   |   |            |  
|CASH USED IN OPERATING ACTIVITIES                                          |   | (103,316 | ) |   | (4,871,440 | )
|                                                                           |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|FINANCING ACTIVITIES                                                       |   |          |   |   |            |  
|Bank indebtedness                                                          |   | -        |   |   | 437,186    |  
|Related party repayments                                                   |   | -        |   |   | (820,214   | )
|Long-term debt (repayment)                                                 |   | 321,816  |   |   | 29,233     |  
|                                                                           |   |          |   |   |            |  
|CASH USED IN FINANCING ACTIVITIES                                          |   | 321,816  |   |   | (353,795   | )
|                                                                           |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|INVESTING ACTIVITIES                                                       |   |          |   |   |            |  
|Purchase of property, plant and equipment (net of disposal
      proceeds) |   | (1,440   | ) |   | (504,132   | )
|Disposal of fixed assets                                                   |   | -        |   |   | 305,507    |  
|Investment                                                                 |   | (5,927   | ) |   | -          |  
|                                                                           |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|CASH USED IN INVESTING ACTIVITIES                                          |   | (7,367   | ) |   | (198,625   | )
|                                                                           |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                           |   |          |   |   |            |  
|DURING THE PERIOD                                                          |   | 176,113  |   |   | (3,292,281 | )
|                                                                           |   |          |   |   |            |  
|EFFECT OF FOREIGN EXCHANGE ON CASH                                         |   | 35,020   |   |   | (47,124    | )
|                                                                           |   |          |   |   |            |  
|CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD                              |   | 310,050  |   |   | 4,179,394  |  
|                                                                           |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|CASH AND CASH EQUIVALENTS END OF PERIOD                                    | $ | 521,183  |   | $ | 751,799    |  
|                                                                           |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|Supplemental cash flow information:                                        |   |          |   |   |            |  
|                                                                           |   |          |   |   |            |  
|Interest paid                                                              |   |          |   | $ | 46,826     |  
|Taxes paid                                                                 |   |          |   | $ | 59,003     |  

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

---

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AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

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|1. | NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS
      Aucxis Corp. (the Company) changed its name from e-Auction
        Global Trading Inc. in June 2001.
      The Company is currently developing e-business services
        for the perishable commodity marketplace primarily in Europe. In addition,
        through its subsidiary, Aucxis Trading Solutions N.V. (ATS) (formerly
        Schelfhout Computer Systemen N.V.), the Company is engaged in the installation
        and maintenance of auction clock and cooling systems for traditional auction
        halls and the development of software for auctions.
      In September 2001, the Company decided to discontinue
        its financial support for its subsidiaries in The Netherlands, including
        V-Wholesale N.V., Kwatrobox B.V., Palm Verlingsystemen B.V., Scoop Software
        B.V., Automatiseringsbureau Palm N.V., and Nieaf Systems B.V. (together
        Kwatrobox) as the businesses operated by these companies no
        longer form part of the companys refocused business strategy. As
        a result, Kwatrobox and its operating subsidiaries, Automatiseringsbureau
        Palm N.V. and Nieaf Systems B.V., filed for bankruptcy and under the bankruptcy
        laws of the Netherlands, a trustee took control of Kwatrobox and its subsidiaries
        in October 2001.
      The Company has a serious working capital deficiency
        as at September 30, 2002 and has suffered recurring operating losses and
        has an accumulated deficit as at September 30, 2002. These factors raise
        substantial doubt about the ability of the Company to continue as a going
        concern.
      The ability of the Company to continue as a going concern
        is dependent upon effective implementation of revenue and cost management
        alternatives and the success of potential future external financing initiatives.
      Management is considering various revenue and cost management
        alternatives and is examining a variety of options to raise additional
        financing. It is not possible at this time to predict with any assurance
        the success of these initiatives.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2. | BASIS OF PRESENTATION
      These financial statements consolidate the accounts
        of the Company, Aucxis Corp. (Nevada) and its wholly-owned subsidiaries
        as follows:
      Aucxis N.V. (Belgium)
          Aucxis Trading Solutions N.V. (formerly Schelfhout Computer Systemen
          N.V. (Belgium) 
          I-Three Inc. 
          e-Auction Global Trading Inc. (Barbados) 
          Aucxis Corp. (Canada)
      The September 30, 2001 comparative figures also include
        the Netherlands subsidiaries described in Note 1 as these entities were
        controlled by the Company at that time.
      The financial statements also include the Companys
        share of the net assets and earnings or loss of the Companys 48.2%
        investment in Aucxis Limited (Australia) and 40% (2001  100%) investment
        in SDL Invest N.V. (Belgium) and the companys interest in Auction
        Trading Services Netherlands B.V. which are accounted for by the equity
        method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

---

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AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

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|3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|-- | ------------------------------------------
|   | (a)                                       
|   |                                           
|   | (b)                                       
|   |                                           
|   | (c)                                       
|   |                                           
|   | (d)                                       
|   |                                           
|   | (e)                                       

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|-- | ------------------------------------------------------
|   | (f)                                                   
|   |                                                       
|   | (g)                                                   
|   |                                                       
|   | (h)                                                   
|   |                                                       
|   | (i)                                                   
|   |                                                       
|   | (j)                                                   

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|-- | ------------------------------------------------------
|   | (j)                                                   
|   |                                                       
|   | (k)                                                   
|   |                                                       
|   | (l)                                                   
|   |                                                       
|   | (m)                                                   
|   |                                                       
|   | (n)                                                   
|   |                                                       
|   | (o)                                                   

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|-- | ------------------------------------------------------
|   | (p)                                                   
|   |                                                       
|4. | ACQUISITIONS AND IMPAIRMENT OF ACQUIRED ASSETS        
|   | (a)                                                   

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|4. | ACQUISITIONS AND IMPAIRMENT OF ACQUIRED ASSETS
      (continued)
|-- | ----------------------------------------------------------------
|   | (b)                                                             
|   |                                                                 
|   | (c)                                                             

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|4. | ACQUISITIONS AND IMPAIRMENT OF ACQUIRED ASSETS (continued)
|-- | ----------------------------------------------------------
|   | (d)                                                       

| | Goodwill for ATS                                   | $ | 3,924,267 |  
| | -------------------------------------------------- | - | --------- | -
| | Goodwill for Kwatrobox                             |   | 3,386,785 |  
| | Acquired workforce for I-Three Inc.                |   | 144,461   |  
| | Acquired core technology for I-Three Inc.          |   | 563,211   |  
| | Less gain on disposal of other identifiable assets |   |           |  
| | and liabilities for Kwatrobox                      |   | (445,989  | )
| |                                                    |   |           |  
| |                                                    |   |           |  
| |                                                    | $ | 7,572,735 |  
| |                                                    |   |           |  

|5. | ACCOUNTS RECEIVABLE
      Accounts receivable consists of the following amounts:
|-- | --------------------------------------------------------------------------------

| |                                 |   | September 30,2002 |  |   | December 31,2001 |  
| | ------------------------------- | - | ----------------- |  | - | ---------------- | -
| |                                 |   |                   |  |   |                  |  
| | Accounts receivable             | $ | 855,292           |  | $ | 1,243,188        |  
| | Allowance for doubtful accounts |   |                  |  |   | (12,840          | )
| |                                 |   |                   |  |   |                  |  
| |                                 |   |                   |  |   |                  |  
| |                                 | $ | 855,292           |  | $ | 1,230,348        |  
| |                                 |   |                   |  |   |                  |  

|6. | INVENTORY
      Inventory consists of the following:
|-- | ----------------------------------------------------

| |                  |   | September 30,2002 |  |   | December 31,2001 | 
| | ---------------- | - | ----------------- |  | - | ---------------- | 
| |                  |   |                   |  |   |                  | 
| | Raw materials    | $ | 292,403           |  | $ | 235,990          | 
| | Work-in-progress |   | 1,572,434         |  |   | 45,418           | 
| | Finished goods   |   | 124,691           |  |   | 122,902          | 
| |                  |   |                   |  |   |                  | 
| |                  |   |                   |  |   |                  | 
| |                  | $ | 1,989,528         |  | $ | 404,310          | 
| |                  |   |                   |  |   |                  | 

|7. | INVESTMENT
      During 2001, the Company recognized an impairment in
        the carrying amount of its equity investment in Aucxis Limited (Australia)
        in the amount of $484,448 because management believed that the Company
        will not be able to recover its investment in Aucxis Limited (Australia).
      This impairment is included in share of loss of equity
        investment for the year ended December 31, 2001. The remaining investments
        balance consists of the Companys interest in SDL Invest N.V. (Belgium)
        and the Companys interest in Auction Trading Services Netherlands
        B.V.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|8. | PROPERTY, PLANT AND EQUIPMENT
|-- | -----------------------------

| |                        |      |         |              |             |         |              | September 30 |              | December 31, |        
| | ---------------------- | ---- | ------- | ------------ | ----------- | ------- | ------------ | ------------ | ------------ | ------------ | -------
| |                        |      |         |              |             |         |              | 2002         |              | 2001         |        
| |                        |      |         |              | Accumulated |         | Net Carrying |              | Net Carrying |             
| |                        | Cost |         | Depreciation |             | Value   |              | Value        |             
| |                        |      |         |              |             |         |              |              |              |              |        
| | Furniture and fixtures | $    | 96,520  |              | $           | 16,550  |              | $            | 79,970       |              | $      
| | Leaseholds             |      | -       |              |             | -       |              |              | -            |              |        
| | Software               |      | 288,880 |              | 166,669     |         |              | 122,211      |              |              | 157,582
| | Tools and equipment    |      | 60,808  |              |             | 34,606  |              |              | 26,202       |              |        
| | Vehicles               |      | 511,642 |              | 296,099     |         |              | 215,543      |              |              | 273,973
| |                        |      |         |              |             |         |              |              |              |              |        
| |                        | $    | 957,850 |              | $           | 519,924 |              | $            | 443,926      |              | $      
| |                        |      |         |              |             |         |              |              |              |              |        

|9. | ACQUIRED WORKFORCE
|-- | ------------------

| |                                      |   | September 30,2002 |  |   | December 31,2001 |  
| | ------------------------------------ | - | ----------------- |  | - | ---------------- | -
| |                                      |   |                   |  |   |                  |  
| | Cost                                 | $ |                  |  | $ | 166,898          |  
| | Accumulated amortization             |   |                  |  |   | (22,437          | )
| | Written off I-Three Inc. (Note 4(c)) |   |                  |  |   | (144,461         | )
| |                                      |   |                   |  |   |                  |  
| |                                      | $ |                  |  | $ |                 |  
| |                                      |   |                   |  |   |                  |  

|10. | ACQUIRED CORE TECHNOLOGY
|--- | ------------------------

| |                                      |   | September 30,2002 |   |   | December 31,2001 |  
| | ------------------------------------ | - | ----------------- | - | - | ---------------- | -
| |                                      |   |                   |   |   |                  |  
| | Cost                                 | $ | 748,969           |   | $ | 1,394,310        |  
| | Accumulated amortization             |   | (411,932          | ) |   | (381,718         | )
| | Written off I-Three Inc. (Note 4(c)) |   |                  |   |   | (563,211         | )
| |                                      |   |                   |   |   |                  |  
| |                                      | $ | 337,037           |   | $ | 449,381          |  
| |                                      |   |                   |   |   |                  |  

|11. | GOODWILL
|--- | --------

| |                                   |   | September 30,2002 |  |   | December 31,2001 |  
| | --------------------------------- | - | ----------------- |  | - | ---------------- | -
| |                                   |   |                   |  |   |                  |  
| | Cost                              | $ |                  |  | $ | 10,677,812       |  
| | Accumulated amortization          |   |                  |  |   | (3,366,760       | )
| | Written off ATS (Note 4(a))       |   |                  |  |   | (3,924,267       | )
| | Written off Kwatrobox (Note 4(b)) |   |                  |  |   | (3,386,785       | )
| |                                   |   |                   |  |   |                  |  
| |                                   | $ |                  |  | $ |                 |  
| |                                   |   |                   |  |   |                  |  

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|12. | BANK INDEBTEDNESS
      The Companys subsidiary, ATS, has available a bank
        credit facility of approximately $220,000 (247,000 EUR) which can be used
        for operating purposes. This credit facility bears interest at the banks
        base rate plus 1.25% and is secured by certain assets of ATS.
      The Company has executed a postponement agreement in
        favour of the bank. Under the agreement the Company may not cause the
        ATS subsidiary to pay dividends to the Company or otherwise make payments
        to other companies in the group without the consent of the bank.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|13. | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
      Accounts payable and accrued liabilities consist of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

| |                     |   | September 30,2002 |  |   | December 31,2001 | 
| | ------------------- | - | ----------------- |  | - | ---------------- | 
| |                     |   |                   |  |   |                  | 
| |                     |   |                   |  |   |                  | 
| |                     |   |                   |  |   |                  | 
| | Trade payables      | $ | 534,573           |  | $ | 853,412          | 
| | Accrued liabilities |   | 385,139           |  |   | 263,000          | 
| | Payroll             |   | 161,019           |  |   | 346,420          | 
| |                     |   |                   |  |   |                  | 
| |                     |   |                   |  |   |                  | 
| |                     | $ | 1,080,731         |  | $ | 1,462,832        | 
| |                     |   |                   |  |   |                  | 

|14. | DUE TO RELATED PARTIES
|--- | ----------------------

| |                                      |   | September 30,2002 |   |   | December 31,2001 |  
| | ------------------------------------ | - | ----------------- | - | - | ---------------- | -
| |                                      |   |                   |   |   |                  |  
| |                                      |   |                   |   |   |                  |  
| | Due to former Kwatrobox shareholders |   | 353,935           |   |   | 352,335          |  
| | Less: Current portion                |   | (353,935          | ) |   | (352,335         | )
| |                                      |   |                   |   |   |                  |  
| |                                      |   |                   |   |   |                  |  
| |                                      | $ |                  |   | $ |                 |  
| |                                      |   |                   |   |   |                  |  

| | The amount due to former Kwatrobox shareholders
        relates to the acquisition of Kwatrobox from these former shareholders
        and the balance is non-interest bearing.
      Included in the accounts payable is $43,214 (2001 -
        $59,000) due to a firm in which a director is a partner.
      Included in accounts payable is $Nil (2001 - $33,494)
        due to a company controlled by directors of a subsidiary.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|15. | RELATED PARTY TRANSACTIONS
      The Company incurred the following amounts to related
        parties during the nine month period and year ended September 30, 2002
        and December 31, 2001 respectively.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                         |   | September 30,2002 |  |   | December 31,2001 | 
| | ----------------------------------------------------------------------- | - | ----------------- |  | - | ---------------- | 
| |                                                                         |   |                   |  |   |                  | 
| | Management fees to companies controlled by former directors             | $ |                  |  | $ | 242,975          | 
| |                                                                         |   |                   |  |   |                  | 
| | Professional fees paid to a firm in which a director is
      a partner |   | 64,214            |  |   | 59,000           | 
| |                                                                         |   |                   |  |   |                  | 
| | Administration fees to a company with common directors                  |   | _                 |  |   | 38,391           | 
| |                                                                         |   |                   |  |   |                  | 
| | Consulting fees to a company controlled by a director                   |   | 63,380            |  |   | 61,150           | 
| |                                                                         |   |                   |  |   |                  | 
| | Consulting fees paid to company controlled by the directors             |   |                   |  |   |                  | 
| | of a subsidiary                                                         |   |                  |  |   | 148,690          | 
| |                                                                         |   |                   |  |   |                  | 
| | Rent paid to SDL Invest N.V. (Belgium)                                  |   | 74,150            |  |   | 87,140           | 

|16. | LONG-TERM DEBT
|--- | --------------

| |                         |   | September 30,2002 |   |   | December 31,2001 |  
| | ----------------------- | - | ----------------- | - | - | ---------------- | -
| |                         |   |                   |   |   |                  |  
| | Convertible bridge loan | $ | 398,048           |   | $ | -                |  
| | Vehicle and other loans |   | 201,514           |   |   | 254,698          |  
| | Less: Current portion   |   | (482,996          | ) |   | (89,055          | )
| |                         |   |                   |   |   |                  |  
| | Long-term debt          | $ | 116,566           |   | $ | 165,643          |  
| |                         |   |                   |   |   |                  |  

| | The vehicle loans have interest rates ranging
        from 3.67% to 8.82%, and maturity dates ranging from September 2002 through
        May 2006, and are secured by the related vehicles.
      The debt repayments over the next five years are as follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2002 | $ | 5,760   |  |  |  | 
| | ---- | - | ------- |  |  |  | 
| | 2003 |   | 92,102  |  |  |  | 
| | 2004 |   | 59,454  |  |  |  | 
| | 2005 |   | 35,159  |  |  |  | 
| | 2006 |   | 9,039   |  |  |  | 
| |      |   |         |  |  |  | 
| |      |   |         |  |  |  | 
| |      | $ | 201,514 |  |  |  | 
| |      |   |         |  |  |  | 

| | The weighted average interest rate on borrowings
        is approximately 6.5%.
| | -------------------------------------------------------------------------------

On April 16, 2002, the Company and three lenders, ABN Capital
  (Belgium) NV, Bodin Saphir Pension Scheme, and J.J. Mennillo, entered into a
  Convertible Bridge Loan Agreement for $125,000 each, representing an aggregate
  loan by the lenders to the Compnay of $375,000. The Company and lenders placed
  the loan in escrow. The loan bears interest at a rate at 12.5% per annum, which
  accrues until the loan is repaid or converted to shares. Subject to certain
  terms and conditions of this agreement, each of the lenders is entitled to convert
  only such amounts as have been drawn down from its respective part of the principal
  of the loan into shares at $.01 per share. Interest has been capitalized to
  the loan balances.

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|17. | INCOME TAXES
      The Company has adopted the provisions of Financial
        Accounting Standards Board Statement No. 109 (SFAS 109), Accounting for
        Income Taxes.
      Pursuant to SFAS 109, the Company is required to compute
        tax asset benefits for net operating losses carried forward. The potential
        tax benefit of net operating losses has not been recognized in the financial
        statements because the Company cannot be assured that it is more likely
        than not that it will utilize the net operating losses carried forward
        in future years.
      The Company has U.S. and European tax losses of approximately
        $18,600,000 to offset future years taxable income. These losses expire
        between fiscal 2014 and fiscal 2016.
      The components of the net deferred tax asset, the statutory
        tax rate, the effective tax rate and the elected amount of the valuation
        allowance are outlined below:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                 | Period ended  |            | Year ended   |  
| | ----------------------------------------------- | ------------- | ---------- | ------------ | -
| |                                                 | September 30, |            | December 31, |  
| |                                                 | 2002          |            | 2001         |  
| |                                                 |               |            |              |  
| |                                                 |               |            |              |  
| | Net combined U.S. and European operating losses | $             | 18,600,000 |              | $
| |                                                 |               |            |              |  
| | Statutory combined U.S. and European tax rate   |               | 35%        |              |  
| |                                                 |               |            |              |  
| | Effective tax rate                              |               |           |              |  
| |                                                 |               |            |              |  
| | Deferred tax asset                              |               | 6,510,000  |              |  
| |                                                 |               |            |              |  
| | Valuation allowance                             |               | (6,510,000 | )            |  
| |                                                 |               |            |              |  
| |                                                 |               |            |              |  
| | Net deferred tax asset                          | $             |           |              | $
| |                                                 |               |            |              |  

|18. | COMMON STOCK
|--- | ------------

| |                                  |            |  |   | Par     |  |   | Additional |  |   |            | 
| | -------------------------------- | ---------- |  | - | ------- |  | - | ---------- |  | - | ---------- | 
| |                                  | Number     |  |   | Value   |  |   | Paid In    |  |   | Total      | 
| |                                  | of Shares  |  |   | ($.001) |  |   | Capital    |  |   | Value      | 
| |                                  |            |  |   |         |  |   |            |  |   |            | 
| | Balance, December 31, 2000       | 62,714,551 |  |   | 62,715  |  |   | 18,735,673 |  |   | 18,798,388 | 
| | Issued on exercise of options    | 58,500     |  |   | 58      |  |   | 527        |  |   | 585        | 
| |                                  |            |  |   |         |  |   |            |  |   |            | 
| | Balance on December 31, 2001 and |            |  |   |         |  |   |            |  |   |            | 
| | September 30, 2002               | 62,773,051 |  | $ | 62,773  |  | $ | 18,736,200 |  | $ | 18,798,973 | 
| |                                  |            |  |   |         |  |   |            |  |   |            | 

| |                                                  | Options for |   |  | Weighted       | 
| | ------------------------------------------------ | ----------- | - |  | -------------- | 
| |                                                  | shares of   |   |  | average        | 
| |                                                  | common      |   |  | exercise price | 
| |                                                  | stock       |   |  | per share      | 
| |                                                  |             |   |  |                | 
| | Balance December 31, 2000                        | 8,213,000   |   |  | 0.34           | 
| |                                                  |             |   |  |                | 
| | Exercised                                        | (58,500     | ) |  | .01            | 
| | Cancelled                                        | (5,100,000  | ) |  | .35            | 
| |                                                  |             |   |  |                | 
| | Balance December 31, 2001 and September 30, 2002 | 3,054,500   |   |  | .34            | 
| |                                                  |             |   |  |                | 

| | The following table summarizes information
        about the Companys share options outstanding as at December 31,
        2001 and September 30, 2002.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|18. | COMMON STOCK (Continued)
|--- | ------------------------

|         |                    | Weighted average |                   
|-------- | ------------------ | ---------------- | ------------------
|Exercise |                    | Remaining        |                   
|price    | Number outstanding | contractual life | Number exercisable
|         |                    |                  |                   
|$0.01    | 96,500             | 2.0              | 96,500            
|$0.35    | 2,958,000          | 9.0              | 2,958,000         

| | The following reflects pro-forma net income
        and loss per share as if the Company had elected to adopt the fair value
        approach of Statement of Financial Accounting Standard (SFAS) 123:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                  |   | September 30, | 
| | -------------------------------- | - | ------------- | 
| |                                  |   | 2002          | 
| |                                  |   |               | 
| | Loss for the period              |   |               | 
| | As reported                      | $ | 696,234       | 
| | Pro-forma                        |   | 900,000       | 
| |                                  |   |               | 
| | Basic and diluted loss per share |   |               | 
| | As reported                      |   | .01           | 
| | Pro forma                        |   | .01           | 

| | The estimated fair value of each option
        granted was calculated using the Black-Scholes option-pricing model.
| | --------------------------------------------------------------------------------------------------------------------

|19. | CHANGE IN NON-CASH WORKING CAPITAL
|--- | ----------------------------------

| |                                          |   | September 30, |  
| | ---------------------------------------- | - | ------------- | -
| |                                          |   | 2002          |  
| |                                          |   |               |  
| | Accounts receivable                      | $ | 375,056       |  
| | Inventory                                |   | (1,585,218    | )
| | Prepaid expenses                         |   | 46,124        |  
| | Accounts payable and accrued liabilities |   | (380,501      | )
| | Deferred items                           |   | 1,685,250     |  
| |                                          |   |               |  
| |                                          |   |               |  
| |                                          | $ | 140,711       |  
| |                                          |   |               |  

|20. | SEGMENTED INFORMATION
      The Company operates in one operating segment, this
        being the installation of auction clocks and cooling systems.
      Geographic information
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |             |   | September 30,2002 |  |   | September 30,2001 | 
| | ----------- | - | ----------------- |  | - | ----------------- | 
| |             |   |                   |  |   |                   | 
| | Revenue     |   |                   |  |   |                   | 
| | Canada      | $ |                  |  | $ | 76,053            | 
| | Belgium     |   | 4,172,485         |  |   | 2,957,243         | 
| | Netherlands |   |                  |  |   | 2,916,327         | 
| |             |   |                   |  |   |                   | 
| |             |   |                   |  |   |                   | 
| |             | $ | 4,172,485         |  | $ | 5,571,147         | 
| |             |   |                   |  |   |                   | 

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

| |                                |   | September 30, |  |   | December 31, | 
| | ------------------------------ | - | ------------- |  | - | ------------ | 
| |                                |   | 2002          |  |   | 2001         | 
| |                                |   |               |  |   |              | 
| | Identifiable long lived assets |   |               |  |   |              | 
| | Canada                         | $ | 158,303       |  | $ | 278,892      | 
| | Belgium                        |   | 285,626       |  |   | 877,343      | 
| | Netherlands                    |   |              |  |   |             | 
| |                                |   |               |  |   |              | 
| |                                |   |               |  |   |              | 
| |                                | $ | 433,926       |  | $ | 1,156,235    | 
| |                                |   |               |  |   |              | 

|21. | LOSS PER COMMON SHARE
      The weighted average number of shares of common stock
        used for calculating the basic loss per share is 62,738,926 (2001 
        62,714,551). Fully diluted loss per share is the same as the basic loss
        per share for the periods ended September 30, 2002 and 2001. Loss per
        share is determined based on the loss available to common shareholders
        as presented in the statement of operations, deficit and comprehensive
        loss.
      The 3,054,500 outstanding stock options are not included
        in the computation of earnings per share as they are anti-dilutive for
        the periods presented.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|22. | COMMITMENTS
      The Company has future minimum lease payments under
        operating leases relating to premises at September 30, 2002 as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

| | 2002 | $ | 33,375  | 
| | ---- | - | ------- | 
| | 2003 |   | 89,000  | 
| | 2004 |   | 89,000  | 
| | 2005 |   | 89,000  | 
| | 2006 |   | 89,000  | 
| |      |   |         | 
| |      |   |         | 
| |      | $ | 389,375 | 
| |      |   |         | 

| | In addition, the Company has an outstanding
        commitment to sell its remaining 40% investment in SDL Invest N.V. to
        a former director of ATS under the terms of an option held by former the
        ATS director.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | CONTINGENCIES
|--- | -------------
|    | (a)          
|    |              
|    | (b)          
|    |              
|    | (c)          
|    |              
|    | (d)          

---

---

AUCXIS CORP. 
  (formerly e-Auction Global Trading Inc.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  (in U.S. dollars)

---

NINE MONTHS ENDED SEPTEMBER 30, 2002 AND YEAR ENDED DECEMBER 31, 2001

---

|23. | CONTINGENCIES (Continued)
      The former owners of the Companys subsidiary,
        who were directors of the subsidiary at the time, brought an action against
        the Company to enforce a pledge on the shares of ATS, which was provided
        to secure the obligations of the Company under the agreement. This action
        was heard by a Belgian court which granted a remedy to the former owners
        of the subsidiary which allowed them to re-acquire a 71⁄2% interest
        in the subsidiary from the Company in exchange for the transfer for cancellation
        of the first tranche of 454,545 shares of the Company in full satisfaction
        of the Companys obligations in relation to such shares under the
        agreement. No further action has been taken with respect to the second
        tranche of 454,545 shares released on January 10, 2001.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|24. | NEW ACCOUNTING STANDARDS
      The Company will be required to adopt SFAS 133, Accounting
        for Derivative Instruments and Hedging Activities for the 2002 fiscal
        year. At present, the company does not use derivative financial instruments
        and does not enter into hedging transactions. Therefore, the impact of
        adopting SFAS 133 on financial reporting will not be material.
      The Company will also be required to adopt SFAS 142
        Goodwill and Other Intangible Assets for its 2002 fiscal year. Based on
        the Companys existing intangible assets and its current accounting
        policy for such items, the impact of adopting SFAS 142 is not expected
        to result in a significant impact on the Company.                                                                                                                     

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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
  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. All statements,
  other than statements of historical facts, included or incorporated by reference
  in this Form 10-QSB which address activities, events or developments which the
  Company expects or anticipates will or may occur in the future, including such
  things as future capital expenditures (including the amount and nature thereof),
  business strategy, expansion and growth of the Companys business and operations,
  and other such matters are forward-looking statements. These statements are
  based on certain assumptions and analyses made by the Company in light of its
  experience and its perception of historical trends, current conditions and expected
  future developments as well as other factors it believes are appropriate in
  the circumstances. Such 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

Aucxis Corp. (Aucxis or the Company)
  was originally incorporated in Nevada on January 8, 1998 under the name Kazari
  International, Inc. (Kazari). On February 26, 1999, Kazari and e-Auction Global
  Trading Inc. (Barbados) entered into a share exchange agreement pursuant to
  which 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. During fiscal year 2000, Aucxis acquired Schelfhout Computer Systemen N.V.,
  Kwatrobox B.V., and I-Three, Inc. On June 12, 2001 the Company amended its charter
  to change its name to Aucxis Corp.

Aucxis 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 turn has one
  wholly owned subsidiary, Aucxis Trading Solutions NV (ATS) (formerly
  Schelfhout Computer Systemen N.V.(Schelfhout)), a Belgium company. ATS has a
  40% ownership interest in SDL Invest N.V. and a 33.3% interest in ATS Holland
  B.V. Aucxis als o has a 48.2% investment in Aucxis Limited. (Australia) (formerly
  Hunter Capital Limited), that was written off in the prior year. Previously,
  Aucxis Limited was accounted for by the equity method.

The Company owns V-Wholesaler B.V. and its wholly owned subsidiary,
  Kwatrobox B.V. and the subsidiaries of Kwatrobox B.V., 100% of Aucxis Business
  Solutions (ABS) (formerly Automatiserngbureau Palm B.V.), 80% of
  Scoop Software B.V., 100% of Palm Veilingsystemen B.V., 100% of Nieaf Systems
  B.V. (Nieaf). Leading up to September 2001, management at ABS was
  unable to generate positive cash flow and continued to seek financial support
  from Aucxis Corp. Previous management had funded this subsidiary in an effort
  to support management efforts in excess of USD$2,000,000. After reviewing the
  subsidiaries, the new board of directors determined that ABS management had
  not shown an ability to generate profit and that it would not be in the interest
  of Aucxis Corps shareholders to continue funding Kwatrobox or any of its
  subsidiaries. As a result, Kwatrobox B.V. and its operating subsidiaries,
  ABS and Nieaf, filed for voluntary bankruptcy. Under the bankruptcy laws of
  the Netherlands, a trustee took control of Kwatrobox and its aforementioned
  bankrupt subsidiaries in October 2001. Due to the loss of control Aucxis Corp.
  has written off the assets and liabilities in its consolidated financial statements
  for the year ended December 31, 2001.

ATS (formerly Schelfhout) is a solutions provider for perishable
  commodity (fish, flower, fruits and vegetables) auction houses. Over the past
  17 years ATS has developed trading systems for numerous selling organizations
  all over the world. Through ATS, the Company has the potential to access electronic
  trading hubs representing billions of dollars in annual turnover, including
  European trade of more than USD$7 billion. ATS delivers the tools to bring together
  supply and demand under optimum conditions and thus create a better market situation.
  ATS has focused on two market sectors: (i) the computerization of auctions

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and (ii) automation for the preservation of perishable products.
  As an ancillary to the auction system, a modular graphic display panel was developed
  by ATS in 1992 and added to the product range.

Through its subsidiary ATS, Aucxis is engaged in the installation
  and maintenance of auction clock and cooling systems for traditional auction
  halls and the development of software for auctions, including Internet-based
  auction systems. The development of e-business services for perishable commodity
  marketplaces has been temporarily suspended pending further review of the business
  opportunities in this area. Aucxis continues to maintain a staging environment
  in Canada for testing and further research and development. It is managements
  intention to review this area of the business in order to evaluate alternatives
  to maximize shareholder value.

Highlights of the Quarter

Revenue for the nine months ended September 30, 2002 was $4,172,485
  compared to $5,571,147 in the same period in 2001. Revenue for the three months
  ended September 30, 2002 was $1,561,714 compared to $1,984,138 for the three
  months ended September 30, 2001.

Although overall revenue has decreased, revenue from ATS for
  the six months ended September 30, 2002 has actually increased by $1,400,000
  from the same six month period in 2001 due primarily to the large contracts
  secured early in the year. The decrease in overall revenue is a direct result
  of managements decision to discontinue its financial support for the loss
  making Palm Automatisering (Aucxis Business Solutions ABS) and Nieaf
  companies. ABS had continued to consume shareholder funds within a business
  that no longer forms part of Aucxis refocused business strategy. Aucxis
  was unable to extract Nieaf from the Kwatrobox failure in spite of the fact
  that it did fit with the overall strategy. The assets of Nieaf were purchased
  from the receiver in partnership with the two largest flower auctions in the
  Netherlands. This is now operating as Auction Trading Systems Holland B.V.-ATS
  Holland B.V. currently has arrangements with current employee of the previous
  Nieaf employees to provide contractual services in support of installations.
  ATS Holland is ramping up staff in line with revenues to ensure continued ongoing
  maintenance of existing installations.

Revenue for the quarter was driven entirely by ATS with continued
  growth in the installation of auction clock systems and cooling systems. ATS
  continues to derive its revenues from the development and installation of clock
  systems, cooling installations and associated maintenance contracts for auctions.

Selling, general and administrative expense for the nine months
  ended September 30 2002 was $2,732,221 as compared to $6,015,966 for the corresponding
  nine-month period in 2001. Selling, general and administrative expense for the
  three months ended September 30 2002 was $1,106,958 as compared to $1,810,746
  for the corresponding three-month period in 2001.

The decrease of 3,283,700 in selling, general and administrative
  expense for the nine months ended September 30, 2002 is directly attributed
  to the Companys cost management initiatives including the elimination
  of the expenses of Palm and Nieaf from the consolidated financial statements
  due to their bankruptcy last year. As I-Three is essentially inactive, no expenses
  were incurred in this subsidiary. There has been no change in the number of
  employees as at September 30, 2002 in Belgium. Following the resignation of
  Neil Murphy as COO on October 29, 2002 Aucxis head office has one contract executive
  and continues to use the services of a company controlled by the CFO to provide
  all accounting and administration functions on an as needed basis.
  Also, subsequent to the end of the quarter ended September 30, 2002, the Company
  has mu tually agreed to terminate the contract advisor position.

Depreciation and amortization expense for the nine months
  ended September 30, 2002 is down approximately 87% ($1,640,593) from the same
  nine-month period last year. This decrease is the result of write-offs in the
  prior year of goodwill, acquired workforce and acquired core technology. All
  goodwill, acquired workforce and acquired core technology was written off for
  I-three. Goodwill related to the Kwatrobox acquisition was written off as a
  result of the voluntary bankruptcy of Kwatrobox and its subsidiaries, declared
  on September 19, 2001 by Nieaf, September 26, 2001 by Aucxis Business Solutions
  and October 3, 2001 by Kwatrobox. In addition, the net carrying value of goodwill
  related to the acquisition of ATS was written down as the Company no longer
  considered the carrying amount of this goodwill to

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represent the amount by which the fair value of ATS exceeds
  the fair value of the its net identifiable assets. During this quarter the only
  remaining items subject to depreciation were the ATS acquired core technology
  and the capital assets of the Company.

Research and development costs were nil for the nine months
  ended September 30, 2002 as compared to $974,000 in the nine months ended September
  30, 2001 due in part to the temporary suspension of development of the Collateral
  Management Utility, but mostly due to the elimination of the operations of Kwatrobox
  and its subsidiaries due to their bankruptcy last year.

The loss for the nine months ended September 30, 2002 was
  $696,234 compared to $9,430,331 for the same period in 2001. Approximately $4,400,000
  of the loss in 2001 relates to the write-off of required workforce and technology.
  There were no similar write-downs for the nine months ended September 30, 2002.
  The significant improvement is attributed to the Companys ongoing cost
  management initiatives.

Management is continuing its revenue enhancing and cost management
  initiatives while simultaneously exploring various strategic options for the
  Company including disposition of business units and/or assets, and business
  combinations and/or joint ventures with other companies in the perishable goods
  marketplace. Management will be reviewing the Collateral Management Utility
  (CMU) and related hardware to determine if the CMU justifies additional research
  and development. It is expected that this review will lead to discussions with
  interested parties for the development or sale of the CMU, depending on the
  outcome of any financings or business unit sale initiatives.

Discussions with Agro Marches Internationaux have ceased as
  it was felt that it would not to be in the best interest of the shareholders
  to merge the two organizations at this time. The Company will continue to focus
  on the development of ATS as this business unit continues to capture new business
  and strives to be the premier supplier of electronic trading systems to perishable
  agriculture and fish trading world-wide.

Liquidity and Capital Resources

As at September 30, 2002, the Company had a cash balance of
  $521,183, an increase of $211,000 from the cash balance on December 31, 2001.
  In June of 2002, the Company was successful in raising $375,000 in the form
  of a convertible loan for working capital purposes. Cash from this loan and
  from ATS operations including bank lines of credit have been used primarily
  to fund inventory and work in progress (an increase of approximately $1,600,000
  from December 31, 2001) and for general working capital purposes. Future cash
  flows for the Company will be derived from increased growth within ATS, the
  success of future external financing initiatives and the disposal of business
  units and other assets. Management continues to examine a variety of options
  to raise additional financing. At the ATS level management has been successful
  securing the necessary credit lines and bank guarantees needed to fulfill the
  requirements under the various contracts that have been secured. Aucxis is continuing
  its revenue enhancement and cost management initiatives, including decreasing
  operating costs and working with creditors regarding outstanding payables. It
  is not possible at this time to predict with any assurance the success of any
  other initiatives, however management is working diligently towards the goal
  of self-sustainability.

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PART II - OTHER INFORMATION

Item 1.  	Legal Proceedings

On March 29, 2002 Mr. Schelfhout and Mrs. De Laet brought
  an ex parte application before Court of Dendermonde (Belgium), which granted
  them authorization to apply a restraint order to a portion of the ATS shares
  held by Aucxis NV (Belgium). The restraint order was effectively applied on
  that same date with a view to securing the alleged damages that may be due in
  respect of the arbitration proceedings. On April 29, 2002 Aucxis NV (Belgium)
  appealed the said authorization and restraint order, which it also believes
  to be without merit, before the Court of Dendermonde (Belgium). The judge for
  Attachments of Dendermonde heard the case on June 25, 2002 and on October 22,
  2002 the appeal was denied. No further action with respect to the appeal has
  been taken at this time.

On March 26, 2002, Mr. Schelfhout resigned as the managing
  director of ATS, as a consequence of which ATS brought a civil law action before
  the Commercial Court of Dendermonde (Belgium) on May 17, 2002, aiming at establishing
  that such resignation has caused the management contract under which Mr Schelfhout
  performed his management duties to be terminated, entitling ATS to cease all
  payments of management fees and to demand damages. Written pleadings submitted
  by the Company and by Luc and Hilde Schelfout were heard on October 25, 2002.
  The action has been reopened for details to be argued on December 20, 2002.

On May 14, 2002 Aucxis NV (Belgium) brought an action against
  Mr. Schelfhout and Mrs. De Laet before the Court of Dendermonde (Belgium) relating
  to certain irregularities in the deletion of a non-compete clause from ATS
  articles of association. After all written pleadings have been submitted, the
  Commercial Court of Dendermonde heard the case on or about November 12, 2002
  and the Company is currently awaiting the decision.

Except as described above, management does not have knowledge
  of any material litigation pending, threatened or contemplated, or unsatisfied
  judgments against the Company or its affiliates, or any proceedings in which
  the Company or its affiliates is a party. Similarly, management is without knowledge
  as to any legal actions pending or threatened or judgments entered against the
  Company's executive officers and directors in their capacity as such, other
  than to the extent such individuals are named in the above actions.

Item 5. 	Other Information

On September 17, 2002 Dennis Petke resigned as a director
  of the Company for personal reasons but continues to provide the services of
  CFO. On October 29, 2002 Neil Murphy resigned as COO of Aucxis and is currently
  Interim Daily Manager of Aucxis Trading Solutions in Belgium. Also, on October
  29, 2002 Nicholas Saphire resigned as director of ATS and Aucxis NV and, by
  mutual consent, has terminated his services as an advisor to Aucxis Corp.

|Item 6. |                                                                                               | Exhibits And Reports On Form 8-K                                                           
|------- | --------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------
|        | (a)                                                                                           | Exhibits.                                                                                  
|        |                                                                                               |                                                                                            
|        |                                                                                               | Exhibit 99.1                                                                               
|        |                                                                                               | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
|        |                                                                                               | Sarbanes-Oxley Act of 2002                                                                 
|        |                                                                                               |                                                                                            
|        | (b)                                                                                           | Reports on Form 8-K                                                                        
|        |                                                                                               |                                                                                            
|        | The Company did not file any reports on Form 8-K during the quarter ended September 30, 2002.

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SIGNATURES

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

|Date: | November 20, 2002 | Aucxis Corp.
|----- | ----------------- | ------------
|      |                   | (Registrant)
|      |                   |             
|      |                   |             
|      |                   | By:         
|      |                   |             
|      |                   |             

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|Exhibit 99.1
      Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002
      In connection with the Quarterly Report of Aucxis Corp.
          (the Company) on Form 10-QSB for the period ended September
          30, 2002 as filed with the Securities and Exchange Commission on the
          date hereof (the Report), I, Dennis Petke, Chief Financial
          Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350,
          as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
          that:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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