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UNITIED STATES
  SECURITIES AND EXCHANGE COMMISSION  WASHINGTON, D.C. 20549


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FORM 10-QSB

xQuarterly Report pursuant Section 13 or 15(d) of the Securities Exchange Act
  of 1934

For the quarterly period ended March 31, 2003

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

0-9040Commission 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)

_______________________________________________________________________(Former Name, Address and Former Fiscal Year, if
  Changed Since Last Report)

Check whether the issuer:

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

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

As of June 16, 2003 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 March 31, 2003 (Unaudited)
      and December 31, 2002        | 4   
|(Audited)                                                                                   |     
|                                                                                            |     
|Consolidated Statements of Operations, Deficit and Comprehensive
      Loss (Unaudited) for | 5   
|the three months ended March 31, 2003 and 2002                                              |     
|                                                                                            |     
|Consolidated Statements of Cash Flows (Unaudited) for
      the three months ended March    | 6   
|31, 2003 and 2002                                                                           |     
|                                                                                            |     
|Notes to Consolidated Financial Statements                                                  | 7   
|                                                                                            |     
|Item 2. Managements Discussion and Analysis of Financial Condition
      and Results of    | 18  
|Operations                                                                                  |     
|                                                                                            |     
|PART II. OTHER INFORMATION                                                                  | 20  
|                                                                                            |     
|Item 1. Legal Proceedings                                                                   | 20  
|                                                                                            |     
|Item 5: Other Information                                                                   | 20  
|                                                                                            |     
|Item 6. Exhibits and Reports on Form 8-K                                                    | 21  
|                                                                                            |     
|Signatures                                                                                  | 21  

1

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

Consolidated Financial Statements
  (Unaudited)
  March 31, 2003
  (expressed in U.S. dollars)





2

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AUCXIS CORP.
  (a Nevada Corporation)CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)
  MARCH 31, 2003(in U.S. dollars)

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3

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|                          
|--------------------------
|AUCXIS CORP.              
|CONSOLIDATED BALANCE SHEET
|(in U.S. dollars)         
|                          

|                                                              |   | March 31,   |   |   | December 31, |  
|------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                              |   | 2003        |   |   | 2002         |  
|                                                              |   | (Unaudited) |   |   | (Audited)    |  
|                                                              |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|ASSETS                                                        |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|CURRENT ASSETS                                                |   |             |   |   |              |  
|Cash and equivalents                                          | $ | 639,006     |   | $ | 617,811      |  
|Accounts receivable (Note 4)                                  |   | 1,012,811   |   |   | 1,135,903    |  
|Inventory (Note 5)                                            |   | 1,364,040   |   |   | 1,394,028    |  
|Prepaid expenses                                              |   | 10,378      |   |   | 51,218       |  
|                                                              |   |             |   |   |              |  
|Total Current Assets                                          |   | 3,026,235   |   |   | 3,198,960    |  
|                                                              |   |             |   |   |              |  
|Investments (Note 6)                                          |   | 192,240     |   |   | 160,070      |  
|Property and equipment (Note 7)                               |   | 302,196     |   |   | 297,624      |  
|Acquired core technology (Note 8)                             |   | 262,134     |   |   | 299,584      |  
|                                                              |   |             |   |   |              |  
|Total Assets                                                  | $ | 3,782,805   |   | $ | 3,956,238    |  
|                                                              |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|LIABILITIES                                                   |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|CURRENT LIABILITIES                                           |   |             |   |   |              |  
|Accounts payable and accrued liabilities (Note 10)            | $ | 1,678,209   |   | $ | 1,592,618    |  
|Due to former Kwatrobox shareholders (Note 11)                |   | 494,402     |   |   | 356,274      |  
|Deferred revenue                                              |   | 1,617,840   |   |   | 2,000,082    |  
|Current portion of long-term debt (Note 13)                   |   | 474,946     |   |   | 488,666      |  
|Deferred taxes                                                |   | 5,400       |   |   | 5,241        |  
|                                                              |   |             |   |   |              |  
|Total Current Liabilities                                     |   | 4,270,797   |   |   | 4,442,881    |  
|                                                              |   |             |   |   |              |  
|Long-term debt (Note 13)                                      |   | 34,560      |   |   | 105,859      |  
|Non-controlling interest (Note 14)                            |   | 62,372      |   |   | 2,400        |  
|                                                              |   |             |   |   |              |  
|Total Liabilities                                             |   | 4,367,729   |   |   | 4,551,140    |  
|                                                              |   |             |   |   |              |  
|Mandatory Redeemable Shares of Common Stock (Note 14)         |   | 4,215,914   |   |   | 4,818,181    |  
|                                                              |   |             |   |   |              |  
|                                                              |   | 8,583,643   |   |   | 9,369,321    |  
|                                                              |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|STOCKHOLDERS EQUITY (DEFICIT)                                |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|Common stock, $0.001 par value; 250,000,000 shares            |   |             |   |   |              |  
|authorized, 62,773,051 issued and outstanding
      (Note 16) |   | 62,773      |   |   | 62,773       |  
|Additional paid-in capital                                    |   | 18,736,200  |   |   | 18,736,200   |  
|Accumulated other comprehensive income                        |   | 418,333     |   |   | 243,710      |  
|Deficit                                                       |   | (24,018,144 | ) |   | (24,455,766  | )
|                                                              |   |             |   |   |              |  
|Total Stockholders Equity (Deficit)                          |   | (4,800,838  | ) |   | (5,413,083   | )
|                                                              |   |             |   |   |              |  
|Total Liabilities and Stockholders Equity (Deficit)          | $ | 3,782,805   |   | $ | 3,956,238    |  
|                                                              |   |             |   |   |              |  
|                                                              |   |             |   |   |              |  
|Commitments and Contingency (Note 20)                         |   |             |   |   |              |  

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

4

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|                                                                     
|---------------------------------------------------------------------
|AUCXIS CORP.                                                         
|CONSOLIDATED STATEMENTS OF OPERATIONS, DEFICIT AND COMPREHENSIVE LOSS
|(in U.S. dollars)                                                    
|                                                                     

|                                                                    |   | 2003        |   |   | 2002        |  
|------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|THREE MONTHS ENDED MARCH 31                                         |   | (Unaudited) |   |   | (Unaudited) |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Revenue                                                             | $ | 1,226,880   |   | $ | 1,308,512   |  
|Cost of goods sold                                                  |   | (307,800    | ) |   | (590,071    | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   | 919,080     |   |   | 718,441     |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Selling, general and administrative expense                         |   | 993,555     |   |   | 788,605     |  
|Depreciation and amortization expense                               |   | 62,368      |   |   | 82,925      |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   | 1,055,923   |   |   | 871,530     |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Loss from operations before the under-noted                         |   | (136,843    | ) |   | (153,089    | )
|                                                                    |   |             |   |   |             |  
|Share of income (loss) of equity investment (Note 7)                |   | 32,170      |   |   | (1,740      | )
|                                                                    |   |             |   |   |             |  
|Gain on cancellation of mandatory redeemable shares (Note
      14) |   | 542,295     |   |   | -           |  
|                                                                    |   |             |   |   |             |  
|Loss on sales and write down of assets                              |   | -           |   |   | (114,886    | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Income (loss) before income taxes                                   |   | 437,622     |   |   | (269,715    | )
|                                                                    |   |             |   |   |             |  
|Income tax expense                                                  |   | -           |   |   | (22,796     | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Income (loss) for the period                                        | $ | 437,622     |   | $ | (292,511    | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Basic income (loss) per share                                       |   | .01         |   |   | (.01        | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Income (loss) for the period                                        | $ | 437,622     |   | $ | (292,511    | )
|                                                                    |   |             |   |   |             |  
|Foreign currency translation adjustments                            |   | 174,623     |   |   | (6,210      | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Comprehensive income (loss)                                         | $ | 612,245     |   | $ | (298,721    | )
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Shares used in computing basic earnings per share                   |   | 62,773,051  |   |   | 62,738,926  |  
|                                                                    |   |             |   |   |             |  
|                                                                    |   |             |   |   |             |  
|Shares used in computing fully diluted earnings per share           |   | 65,827,551  |   |   | 65,793,426  |  
|                                                                    |   |             |   |   |             |  

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

5

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|                                     
|-------------------------------------
|AUCXIS CORP.                         
|CONSOLIDATED STATEMENTS OF CASH FLOWS
|(in U.S. dollars)                    
|                                     

|                                                                           |   | 2003        |   |   | 2002        |  
|-------------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|THREE MONTHS ENDED MARCH 31                                                |   | (Unaudited) |   |   | (Unaudited) |  
|                                                                           |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|OPERATING ACTIVITIES                                                       |   |             |   |   |             |  
|Net income (loss) for the year                                             | $ | 437,622     |   | $ | (292,511    | )
|Adjustments to reconcile net loss to cash                                  |   |             |   |   |             |  
|Depreciation and amortization                                              |   | 62,368      |   |   | 82,925      |  
|Foreign exchange                                                           |   | 126,623     |   |   | (8,385      | )
|Share of income (loss) of equity investment                                |   | (32,170     | ) |   | 1,740       |  
|Provision for impairment                                                   |   | -           |   |   | 82,003      |  
|Loss on sale of assets                                                     |   | -           |   |   | 32,883      |  
|Gain on cancellation of mandatory redeemable
      shares                  |   | (542,295    | ) |   | -           |  
|Net change in non-cash working capital items (Note 17)                     |   | 66,837      |   |   | 99,369      |  
|                                                                           |   |             |   |   |             |  
|CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                            |   | 118,895     |   |   | (1,976      | )
|                                                                           |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|FINANCING ACTIVITIES                                                       |   |             |   |   |             |  
|Related party repayments                                                   |   | -           |   |   | (343        | )
|Long-term debt net of repayment                                            |   | (116,300    | ) |   | 16,748      |  
|                                                                           |   |             |   |   |             |  
|CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                            |   | (116,300    | ) |   | 16,405      |  
|                                                                           |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|INVESTING ACTIVITIES                                                       |   |             |   |   |             |  
|Purchase of property, plant and equipment (net of disposal
      proceeds) |   | -           |   |   | (1,440      | )
|                                                                           |   |             |   |   |             |  
|CASH USED IN INVESTING ACTIVITIES                                          |   | -           |   |   | (1,440      | )
|                                                                           |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|INCREASE IN CASH AND CASH EQUIVALENTS                                      |   |             |   |   |             |  
|DURING THE PERIOD                                                          |   | 2,685       |   |   | 12,989      |  
|                                                                           |   |             |   |   |             |  
|EFFECT OF EXCHANGE RATE CHANGES ON CASH                                    |   | 18,510      |   |   | 6,285       |  
|                                                                           |   |             |   |   |             |  
|CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD                              |   | 617,811     |   |   | 310,050     |  
|                                                                           |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|CASH AND CASH EQUIVALENTS END OF PERIOD                                    | $ | 639,006     |   | $ | 329,324     |  
|                                                                           |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|Supplemental cash flow information:                                        |   |             |   |   |             |  
|                                                                           |   |             |   |   |             |  
|Interest paid                                                              | $ | 15,120      |   | $ | 8,952       |  
|Taxes paid                                                                 |   | -           |   |   | 22,796      |  

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

6

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|1. | NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS
      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 March 31, 2003 of $1,244,562 and has an accumulated deficit as at
        March 31, 2003 of $24,018,144. These factors raise substantial doubt about
        the ability of the Company to continue as a going concern.
      The Company is also involved in several legal actions
        related to its key operating division, Aucxis Trading Solutions N.V.,
        which raise substantial doubt about the companys ability to control
        this subsidiary and its operations in the future (see Notes 14, 21 and
        22).
      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 re-organize the
        Company. 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 subsidiaries as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

| | 100%  | Aucxis Corp. N.V. (Belgium)                                                                            
| | ----- | -------------------------------------------------------------------------------------------------------
| | 92.5% | Aucxis Trading Solutions N.V. (formerly Schelfhout Computer
      Systemen N.V. (Belgium) (see Note 14)
| | 100%  | I-Three Inc. (Canada)                                                                                  
| | 100%  | e-Auction Global Trading Inc. (Barbados)                                                               
| | 100%  | Aucxis Corp. (Canada)                                                                                  

| | These financial statements also include the operations
        and cash flows of the Companys 33% interest in Auction Trading Services
        Netherlands B.V. and 40% investment in SDL Invest N.V. (Belgium) which
        are accounted for by the equity method. During 2002, the Company disposed
        of its investment in Aucxis Limited (Australia). All intercompany transactions
        and balances have been eliminated.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

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

| | Furniture and fixtures | 10 years straight-line
| | ---------------------- | ----------------------
| | Leaseholds             | 4 years straight-line 
| | Tools and equipment    | 5 years straight-line 
| | Vehicles               | 5 years straight-line 

| | (d) | Acquired core technology
      Acquired core technology is recorded at cost and amortized
        on a straight-line basis over its expected life of approximately five
        years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (e) | Impairment of long-lived assets
      In accordance with Statement of Financial Accounting
        Standard (SFAS) No. 144, Accounting for the Impairment
        on Disposal of Long-Lived Assets, the Company evaluates potential
        impairment of its long-lived assets whenever events or changes in circumstances
        indicate doubts about the recoverability of such assets. Recoverability
        of assets held and used is measured by comparing the carrying amount of
        the asset to estimated future net undiscounted cash flows expected to
        be generated by the asset. If an asset is considered to be impaired, the
        impairment is recognized based on the amount by which the carrying amount
        of the asset exceeds its estimated fair value. Assets to be disposed of
        are reported at the lower of the carrying amount or fair value. Fair value
        is based on the amount of consideration which would be paid by an arms
        length party under no compulsion to transact.

8

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

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

9

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

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

10

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)                          
|-- | --------------------------------------------------------------------------------
|   |                                                                                 
|   | (o)                                                                             
|   |                                                                                 
|4. | ACCOUNTS RECEIVABLE
      Accounts receivable consists of the following amounts:

| |                                 |   | March 31, |  |   | December 31, |  
| | ------------------------------- | - | --------- |  | - | ------------ | -
| |                                 |   | 2003      |  |   | 2002         |  
| |                                 |   |           |  |   |              |  
| | Accounts receivable             | $ | 1,01,811  |  | $ | 1,148,743    |  
| | Allowance for doubtful accounts |   | -         |  |   | (12,840      | )
| |                                 |   |           |  |   |              |  
| |                                 | $ | 1,012,811 |  | $ | 1,135,903    |  
| |                                 |   |           |  |   |              |  

|5. | INVENTORY
      Inventory consists of the following:
|-- | ----------------------------------------------------

| |                  |   | March 31, |  |   | December 31, | 
| | ---------------- | - | --------- |  | - | ------------ | 
| |                  |   | 2003      |  |   | 2002         | 
| |                  |   |           |  |   |              | 
| | Raw materials    | $ | 324,000   |  | $ | 272,550      | 
| | Work-in-progress |   | 1,040,040 |  |   | 981,072      | 
| | Finished goods   |   | -         |  |   | 140,406      | 
| |                  |   |           |  |   |              | 
| |                  | $ | 1,364,040 |  | $ | 1,394,028    | 
| |                  |   |           |  |   |              | 

11

---

|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|6. | INVESTMENTS
      The investments balance consists of the Companys
        interest in SDL Invest N.V. (Belgium) and the Companys interest
        in Auction Trading Services Netherland B.V. as follows:
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                    |   | March 31, |  |   | December 31, | 
| | -------------------------------------------------- | - | --------- |  | - | ------------ | 
| |                                                    |   | 2003      |  |   | 2002         | 
| |                                                    |   |           |  |   |              | 
| | Auction Trading Services Netherlands B.V., at cost | $ | 6,480     |  | $ | 5,657        | 
| | SDL Invest N.V. (Belgium), at cost                 |   | 116,931   |  |   | 116,931      | 
| | Equity income                                      |   | 69,652    |  |   | 37,482       | 
| |                                                    |   |           |  |   |              | 
| |                                                    | $ | 192,240   |  | $ | 160,070      | 
| |                                                    |   |           |  |   |              | 

|7. | PROPERTY AND EQUIPMENT
      Property and equipment comprises:
|-- | --------------------------------------------------------------

| |                        |   |         |  |   |              |  |   | March 31,    |  |   | December 31, | 
| | ---------------------- | - | ------- |  | - | ------------ |  | - | ------------ |  | - | ------------ | 
| |                        |   |         |  |   |              |  |   | 2003         |  |   | 2002         | 
| |                        |   |         |  |   | Accumulated  |  |   | Net Carrying |  |   | Net Carrying | 
| |                        |   | Cost    |  |   | Depreciation |  |   | Value        |  |   | Value        | 
| |                        |   |         |  |   |              |  |   |              |  |   |              | 
| | Furniture and fixtures | $ | 105,119 |  | $ | 22,004       |  | $ | 83,115       |  | $ | 77,420       | 
| | Tools and equipment    |   | 60,773  |  |   | 28,888       |  |   | 31,885       |  |   | 23,702       | 
| | Vehicles               |   | 509,645 |  |   | 322,449      |  |   | 187,196      |  |   | 196,502      | 
| |                        |   |         |  |   |              |  |   |              |  |   |              | 
| |                        | $ | 675,537 |  | $ | 373,341      |  | $ | 302,196      |  | $ | 297,624      | 
| |                        |   |         |  |   |              |  |   |              |  |   |              | 

|8. | ACQUIRED CORE TECHNOLOGY
|-- | ------------------------

| |                          |   | March 31, |   |   | December 31, |  
| | ------------------------ | - | --------- | - | - | ------------ | -
| |                          |   | 2003      |   |   | 2002         |  
| |                          |   |           |   |   |              |  
| | Cost                     | $ | 748,969   |   | $ | 748,969      |  
| | Accumulated amortization |   | (486,835  | ) |   | (449,385     | )
| |                          |   |           |   |   |              |  
| |                          | $ | 262,134   |   | $ | 299,584      |  
| |                          |   |           |   |   |              |  

|9. | BANK INDEBTEDNESS
      The Companys subsidiary, ATS, has available a
        bank credit facility of approximately $266,000 (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.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|10. | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
      Accounts payable and accrued liabilities consist of the following:
|--- | -----------------------------------------------------------------------------------------------------------------

| |                     |   | March 31, |  |   | December 31, | 
| | ------------------- | - | --------- |  | - | ------------ | 
| |                     |   | 2003      |  |   | 2002         | 
| |                     |   |           |  |   |              | 
| | Trade payables      | $ | 867,244   |  | $ | 896,398      | 
| | Accrued liabilities |   | 308,765   |  |   | 566,255      | 
| | Payroll             |   | 502,200   |  |   | 129,965      | 
| |                     |   |           |  |   |              | 
| |                     | $ | 1,678,209 |  | $ | 1,592,618    | 
| |                     |   |           |  |   |              | 

|11. | DUE TO FORMER KWATROBOX SHAREHOLDERS
      The amount due to former Kwatrobox shareholders relates
        to the acquisition of Kwatrobox from its former shareholders and the balance
        is non-interest bearing.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                         
|12. | RELATED PARTY TRANSACTIONS
      The Company incurred the following amounts to related
        parties during the periods ended March 31, 2003 and March 31, 2002, respectively:                                        

| |                                                      |   | March 31, |  |   | March 31, | 
| | ---------------------------------------------------- | - | --------- |  | - | --------- | 
| |                                                      |   | 2003      |  |   | 2002      | 
| |                                                      |   |           |  |   |           | 
| | Consulting fees to a company controlled by a officer | $ | 20,925    |  | $ | 20,697    | 

| | Due to directors and officers:
| | ------------------------------
| |                               
| |                               

13

---

|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|13. | LONG-TERM DEBT
|--- | --------------

| |                                                      |   | March 31, |   |   | December 31, |  
| | ---------------------------------------------------- | - | --------- | - | - | ------------ | -
| |                                                      |   | 2003      |   |   | 2002         |  
| |                                                      |   |           |   |   |              |  
| | Convertible Bridge loan (including accrued interest) | $ | 437,146   |   | $ | 405,865      |  
| |                                                      |   |           |   |   |              |  
| | Vehicle loans                                        |   | 72,360    |   |   | 188,660      |  
| |                                                      |   |           |   |   |              |  
| | Less: Current portion                                |   | (474,946  | ) |   | (488,666     | )
| |                                                      |   |           |   |   |              |  
| | Long-term debt                                       | $ | 34,560    |   | $ | 105,859      |  
| |                                                      |   |           |   |   |              |  

| | The vehicle loans have interest rates ranging from
        3.67% to 8.82% and maturity dates ranging from March 2003 through August
        2004, and are secured by the related vehicles.
      The debt repayments over the next two years are as follows:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 2003 | $ | 39,000 |  |  |  | 
| |  | ---- | - | ------ |  |  |  | 
| |  | 2004 |   | 33,360 |  |  |  | 
| |  |      |   |        |  |  |  | 
| |  |      | $ | 72,360 |  |  |  | 
| |  |      |   |        |  |  |  | 

|14. | MANDATORY REDEEMABLE SHARES OF COMMON STOCK
      During the quarter, the Company finalized the disposition
        of a 7.5% interest in ATS pursuant to a court order allowing the former
        owners of ATS to reacquire a 7.5% interest in exchange for the transfer
        for cancellation of the first tranche of 454,545 shares. Accordingly,
        the Company reduced the mandatory redeemable shares of common stock by
        $602,267 (454,545 shares), increased its non-controlling interest by $59,972,
        representing the carrying amount of the portion of ATS disposed of and
        recognized a gain on cancellation of mandatory redeemable preferred shares
        for the balance of $542,295 (see also Note 21).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|15. | INCOME TAXES
      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:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| |                                                 |   | March 31,  |   |   | December 31, |  
| | ----------------------------------------------- | - | ---------- | - | - | ------------ | -
| |                                                 |   | 2003       |   |   | 2002         |  
| |                                                 |   |            |   |   |              |  
| | Net combined U.S. and European operating losses | $ | 19,500,000 |   | $ | 19,000,000   |  
| | Statutory combined U.S. and European tax rate   |   | 35%        |   |   | 35%          |  
| | Effective tax rate                              |   |            |   |   | -            |  
| | Deferred tax asset                              |   | 6,825,000  |   |   | 6,650,000    |  
| | Valuation allowance                             |   | (6,825,000 | ) |   | (6,650,000   | )
| |                                                 |   |            |   |   |              |  
| | Net deferred tax asset                          | $ | -          |   | $ | -            |  
| |                                                 |   |            |   |   |              |  

14

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|16. | STOCK-BASED COMPENSATION
      The exercise price of all options granted under existing
        stock option plans was equal to or greater than the market price of the
        underlying common stock on the grant date and no stock-based employee
        compensation cost was recognized at the time of grant. The following table
        illustrates the effect on net income and earnings per share if the Company
        had applied the fair value recognition provisions of SFAS No. 123, Accounting
        for Stock-Based Compensation, to employee stock benefits, including
        shares issued under the stock option plan.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                         |   | March 31, |   |   | March 31, |  
| | ------------------------------------------------------- | - | --------- | - | - | --------- | -
| |                                                         |   | 2003      |   |   | 2002      |  
| |                                                         |   |           |   |   |           |  
| | Net income (loss) as reported                           | $ | 437,622   |   | $ | (292,511  | )
| | Deduct: total stock-based employee compensation         |   |           |   |   |           |  
| | expense determined under fair value based
      method, |   |           |   |   |           |  
| | net of tax                                              |   | (26,910   | ) |   | (26,910   | )
| |                                                         |   |           |   |   |           |  
| |                                                         |   |           |   |   |           |  
| | Pro forma net income (loss)                             |   | 410,712   |   |   | (319,421  | )
| | Basic net income (loss) per share:                      |   |           |   |   |           |  
| | As reported                                             |   | .01       |   |   | (.01      | )
| | Pro forma                                               |   | .01       |   |   | (.01      | )
| | Diluted net income (loss) per share:                    |   |           |   |   |           |  
| | As reported                                             |   | .01       |   |   | (.01      | )
| | Pro forma                                               |   | .01       |   |   | (.01      | )

|17. | CHANGE IN NON-CASH WORKING CAPITAL
|--- | ----------------------------------

| |                                                         |   | March 31, |   |   | March 31, |  
| | ------------------------------------------------------- | - | --------- | - | - | --------- | -
| |                                                         |   | 2003      |   |   | 2002      |  
| |                                                         |   |           |   |   |           |  
| | Accounts receivable                                     | $ | 123,092   |   | $ | (123,653  | )
| | Inventory                                               |   | 29,988    |   |   | (73,331   | )
| | Prepaid expenses                                        |   | 40,840    |   |   | 11,309    |  
| | Accounts payable, accrued liabilities and related party |   | 255,001   |   |   | 239,076   |  
| | Deferred items                                          |   | (382,084  | ) |   | 45,968    |  
| |                                                         |   |           |   |   |           |  
| |                                                         | $ | 66,837    |   | $ | 99,369    |  
| |                                                         |   |           |   |   |           |  

|18. | SEGMENTED INFORMATION
      The Company operates in one operating segment, this
        being the installation of auction clocks and cooling systems. Resources
        are allocated based on revenue and overall profitability.
      Geographic information
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                |   | March 31, |  |   | March 31,    | 
| | ------------------------------ | - | --------- |  | - | ------------ | 
| |                                |   | 2003      |  |   | 2002         | 
| |                                |   |           |  |   |              | 
| | Revenue                        |   |           |  |   |              | 
| | Belgium                        | $ | 1,226,880 |  | $ | 1,308,512    | 
| |                                |   |           |  |   |              | 
| |                                |   | March 31, |  |   | December 31, | 
| |                                |   | 2003      |  |   | 2002         | 
| |                                |   |           |  |   |              | 
| | Identifiable long lived assets |   |           |  |   |              | 
| | Canada                         | $ | 23,556    |  | $ | 24,558       | 
| | Belgium                        |   | 540,774   |  |   | 572,650      | 
| |                                |   |           |  |   |              | 
| |                                | $ | 564,330   |  | $ | 597,208      | 
| |                                |   |           |  |   |              | 

15

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|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|19. | INCOME AND LOSS PER SHARE
      The following table represents the calculation of basic and diluted
        net income (loss) per common share (in thousands, except per share amounts):
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                       |   | Three months ended | 
| | ----------------------------------------------------- | - | ------------------ | 
| |                                                       |   | March 31,          | 
| |                                                       |   | 2003               | 
| |                                                       |   |                    | 
| | Net income (loss)                                     | $ | 437,622            | 
| |                                                       |   |                    | 
| |                                                       |   |                    | 
| | Weighted-average shares used in computing basic net   |   |                    | 
| | income (loss) per share                               | $ | 62,773,051         | 
| | Dilutive effect of common share equivalents           |   | 3,054,500          | 
| |                                                       |   |                    | 
| |                                                       |   |                    | 
| | Weighted-average shares used in computing diluted net |   |                    | 
| | income (loss) per share                               | $ | 65,827,551         | 
| |                                                       |   |                    | 
| |                                                       |   |                    | 
| | Basic net income (loss) per share                     | $ | .01                | 
| |                                                       |   |                    | 
| |                                                       |   |                    | 
| | Diluted net income (loss) per share                   | $ | .01                | 
| |                                                       |   |                    | 

|    | For the three months ended March 31, 2002, potential
        common shares in the form of stock options to purchase 3,054,500 shares
        of common stock, were antidilutive and therefore not included in the computation
        of diluted earnings per share.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                     
|20. | COMMITMENTS AND CONTINGENCY
      The Company has future minimum lease payments under
        operating leases relating to premises at March 31, 2003 as follows:                                                                                                   

| | 2003 | $ | 89,000  |  |  |  | 
| | ---- | - | ------- |  |  |  | 
| | 2004 |   | 89,000  |  |  |  | 
| | 2005 |   | 89,000  |  |  |  | 
| | 2006 |   | 89,000  |  |  |  | 
| | 2007 |   | 89,000  |  |  |  | 
| |      |   |         |  |  |  | 
| |      | $ | 445,000 |  |  |  | 
| |      |   |         |  |  |  | 

|    | 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 the former ATS director.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                 
|21. | LITIGATION                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                             

16

---

|                                                                  
|------------------------------------------------------------------
|AUCXIS CORP.                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                    
|(Unaudited)                                                       
|                                                                  
|(in U.S. dollars)                                                 
|                                                                  
|THREE MONTHS ENDED MARCH 31, 2003 AND YEAR ENDED DECEMBER 31, 2002
|                                                                  

|21. | LITIGATION (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|22. | SUBSEQUENT EVENT
      On April 11, 2003, Aucxis N.V., the subsidiary which
        directly owns the shares of ATS, filed for voluntary bankruptcy in Belgium.
        Although the operations of ATS have not been directly affected by these
        proceedings, it is possible that the Company will ultimately lose control
        of ATS, its main operating subsidiary, and this would require that the
        net assets of ATS be presented on the liquidation basis.

17

---

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) (Aucxis NV), directly,
  which in turn has a 92.5% ownership in Aucxis Trading Solutions, N.V. (ATS)
  (formerly Schelfhout Computer Systemen N.V.), a Belgium company. Aucxis Trading
  Solutions N.V. in turn has a 33.3.% interest in Auction Trading Services Nederland
  BV (ATS Holland) formed in partnership with two of the largest flower
  auctions. On April 11, 2003, Aucxis NV voluntarily filed for bankruptcy and
  as such a trustee in bankruptcy has been entrusted with Aucxis NVs management
  and the realization of its assets for the benefit of its creditors. Management
  of the Company will be working with the Trustee to maximize the proceeds received
  for ATS and to ensure there is little or no disruption to employees and the
  business in general.

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 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 company has temporarily suspended development of e-business
  services for the perishable commodity marketplace pending further review of
  the business opportunities in this area. Aucxis continues to maintain a staging
  environment in Toronto, 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.

18

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Highlights of the Quarter

Revenue for the three months ended March 31, 2003 was $1,226,680
  compared to $1,308,512 in the same period in 2002. Although overall revenue
  was lower, gross profit was higher by $200,639 due to lower cost of sales compared
  to last year

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 three
  months ended March 31, 2003 was $993,555 as compared to $788,605 for the corresponding
  three month period in 2002. The increase was primarily due to an increase in
  salaries and related remuneration expenses at ATS. Depreciation and amortization
  expense for the three months ended March 31, 2003 was down $20,557 from the
  same three month period last year, due primarily to software write-downs at
  the end of the last fiscal year.

Net income for the three months ended March 31, 2003 was $437,622
  compared to a loss of $269,715 for the same period in 2001. Included in income
  is a gain of $542,295 from the cancellation of 454,545 mandatory Redeemable
  shares. During the quarter, the Company finalized the disposition of a 7.5%
  interest in ATS pursuant to a court order allowing the former owners of ATS
  to reacquire a 7.5% interest in exchange for the transfer for cancellation of
  the first tranche of 454,545 shares. Accordingly, the Company reduced the mandatory
  redeemable shares of common stock by $602,267 (454,545 shares), increased its
  non-controlling interest by $59,972, representing the carrying amount of the
  portion of ATS disposed of and recognized a gain on cancellation of mandatory
  redeemable preferred shares for the balance of $542,295.

Net income was also higher than last year due to an increase
  in its share of income of the equity investment in ATS Holland. These gains
  were offset by operational losses of $136,843, an improvement over the prior
  year, which was $153,089. This significant improvement in costs compared to
  prior years 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.

Liquidity and Capital Resources

As at March 31, 2003, the Company had a cash balance of $639,006,
  an increase from the cash balance at December 31, 2002. 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.

19

---

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 March 17, 2003, the former owners of the Companys
  subsidiary, ATS, obtained a restraining order against the Company, effectively
  securing the remaining 92.5% of the ATS shares to satisfy any ultimate judgement
  which might be awarded to the former owners of ATS as a result of their claims
  alleging misrepresentations by the Company prior to and subsequent to the closing
  of the ATS share purchase by the Company in January 2000.

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. In February of 2003, Mr.
  Schelfhout obtained a judgement against the Company in the amount of $244,000
  for breach of a management contract. The Company has accrued $244,000 to date
  for this judgement, but is appealing 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 April 11, 2003, Aucxis NV, the wholly owned Belgium subsidiary of Aucxis
  Corp. (the Company) has voluntarily filed for bankruptcy and as
  such has been declared bankrupt by the Commercial Court of Dendermonde on that
  date. A trustee in bankruptcy has been entrusted with Aucxis NVs management
  and the realization of its assets for the benefit of its creditors. The Company
  is the primary creditor with a claim of USD $9,250,000, this being the outstanding
  balance of the original inter-company loan with respect to the acquisition of
  Aucxis Trading Solutions NV (ATS) in January 2000. ATS is the only
  significant asset of Aucxis NV and the most significant asset in the Aucxis
  Corp. group. Court proceedings for the final verification of claims took place
  on June 5, 2003. Management of the Company will be working with the Trustee
  to maximize the proceeds received for ATS and to ensure there is little or no
  disruption to employees and the business in general. The Aucxis NV bankruptcy
  will have certain temporary and/or permanent effects on certain ongoing judicial
  proceedings the details of which are not known at this time.

20

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Item 6.      Exhibits And Reports On Form 8-K

| | (a) | Exhibits                                                                                                                                                                                                 
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                          
| |     | 99.1                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                          
| | (b) | Reports on Form 8-K                                                                                                                                                                                      
| |     |                                                                                                                                                                                                          
| |     | On May 15, 2003, we filed a Form 8-K, which
        contained disclosure under Item 5 (Other Events).
      On June 18, 2003, we filed a Form 8-K/A, amending the
        Form 8-K filed on May 15, 2003.

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: June 18, 2003 | Aucxis Corp.
|------------------- | ------------
|                    | (Registrant)
|                    |             
|                    | By:         
|                    |             
|                    |             

21

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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 March 31, 2003 as filed with the Securities
  and Exchange Commission on the date hereof (the Report), I, Neil
  Murphy, Chief Operating 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:

|(1) | The Report complies with the requirements of Section 13(a)
      or 15(d) of the Securities Exchange Act of 1934; and                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                           
|(2) | The financial information contained in the Report fairly
      presents, in all material respects, the financial condition and results
      of operations of the Company.

/s/ Dennis Petke

Dennis Petke
  Chief Financial Officer 
  June 18, 2003

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