UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                -----------------

                                   FORM 10-QSB

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

                  For the quarterly period ended March 31, 2002

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


                                     0-9040
                                     ======

                             Commission file number

                                  Aucxis Corp.
                                  ============
        (Exact name of small business issuer as specified in its charter)

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

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

        220 King Street West, Suite 200 Toronto, Ontario, M5H 1K4 Canada.
        -----------------------------------------------------------------
                    (Address of principal executive offices)

                                  416-214-1587
                                  ------------
                           (Issuer's telephone number)

                         e-Auction Global Trading, Inc.
                         ------------------------------
   (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.......





     As of June 24, 2002 there were 66,409,415 shares of the Registrant's common
stock, par value $0.001 per share outstanding.





 Transitional Small Business Disclosure Format (check one) Yes......No....X....


                                        1
<PAGE>

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

                                   FORM 10-QSB

                                      INDEX

                                                                            Page
PART I.    FINANCIAL INFORMATION

Item 1.  Financial Statements                                                F-1

     Consolidated  Balance Sheet at March 31, 2002  (Unaudited) and          F-2
     December 31, 2001

     Consolidated    Statements   of   Operations,    Deficit   and          F-3
     Comprehensive  Loss  (Unaudited)  for the three  months  ended
     March 31, 2002 and March 31, 2001

     Consolidated  Statements  of Cash  Flows  (Unaudited)  for the          F-4
     three months ended March 31, 2002 and March 31, 2001

     Notes to Consolidated Financial Statements                      F-5 to F-18

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

PART II.    OTHER INFORMATION

Item 1.  Legal Proceedings                                                     6

Item 5:  Other Information                                                     7

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

Signatures                                                                     9


                                        1
<PAGE>

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements







         ---------------------------------------------------------------

                                  AUCXIS CORP.

                    (formerly e-Auction Global Trading Inc.)

                             (a Nevada Corporation)

                        CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2002

                                (in U.S. dollars)
         ---------------------------------------------------------------








                                       F-1
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

CONSOLIDATED BALANCE SHEETS

(in U.S. dollars)
--------------------------------------------------------------------------------------------------------------------

                                                                                  March 31,          December 31,
                                                                                    2002                 2001
--------------------------------------------------------------------------------------------------------------------

ASSETS

<S>                                                                          <C>                   <C>
CURRENT ASSETS
Cash and equivalents                                                         $        329,324      $       310,050
Accounts receivable (Note 5)                                                        1,354,001            1,230,348
Inventory (Note 6)                                                                    477,641              404,310
Prepaid expenses                                                                      102,219              113,528
                                                                             ----------------      ---------------
Total Current Assets                                                                2,263,185            2,058,236
Investments (Note 7)                                                                  111,362              115,772
Property, plant and equipment (Note 8)                                                546,491              706,854
Acquired core technology (Notes 4 and 10)                                             411,933              449,381
                                                                             ----------------      ---------------
Total Assets                                                                 $      3,332,971      $     3,330,243
                                                                             ================      ===============

LIABILITIES

CURRENT LIABILITIES
Accounts payable and accrued liabilities (Note 13)                           $      1,701,908      $     1,462,832
Due to related parties (Note 14)                                                      351,992              352,335
Deferred revenue                                                                      757,786              711,551
Current portion of long-term debt (Note 16)                                            75,692               89,055
Deferred taxes                                                                         11,310               11,577
                                                                             ----------------      ---------------
Total Current Liabilities                                                           2,898,688            2,627,350
Long-term debt (Note 16)                                                              195,754              165,643
                                                                             ----------------      ---------------
Total Long-term Debt                                                                3,094,442            2,792,993
Mandatory Redeemable Shares of Common Stock (Note 4(a))                             4,818,181            4,818,181
                                                                             ----------------      ---------------

Total Liabilities                                                                   7,912,623            7,611,174
                                                                             ----------------      ---------------

STOCKHOLDERS' EQUITY (DEFICIT)

COMMON STOCK, $0.001 par value; 250,000,000 shares
   authorized, 62,773,051 issued and outstanding                                       62,773               62,773
   Additional paid-in capital                                                      18,736,200           18,736,200
Accumulated other comprehensive income (loss)                                         143,690              149,900
Deficit                                                                           (23,522,315)         (23,229,804)
                                                                             ----------------      ---------------
Total Stockholders' Equity (Deficit)                                               (4,579,652)          (4,280,931)
                                                                             ----------------      ---------------
Total Liabilities and Stockholders' Equity (Deficit)                         $      3,332,971      $     3,330,243
                                                                             ================      ===============

Contingencies (Notes 1 and 23)
Subsequent Events (Note 24)


Approved on behalf of the Board of Directors:

-----------------------------------

-----------------------------------

</TABLE>
(The accompanying notes are an integral part of these consolidated financial
 statements)


                                       F-2
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

CONSOLIDATED STATEMENTS OF OPERATIONS, DEFICIT AND COMPREHENSIVE LOSS

(in U.S. dollars)
------------------------------------------------------------------------------------------------------------------

THREE MONTHS ENDED MARCH 31                                                         2002                 2001
------------------------------------------------------------------------------------------------------------------

<S>                                                                          <C>                   <C>
Revenue                                                                      $      1,308,512      $     1,966,175
Cost of goods sold                                                                   (590,071)          (1,001,509)
                                                                             ----------------      ---------------

                                                                                      718,441              964,666
                                                                             ----------------      ---------------

Selling, general and administrative expense                                           788,605            2,423,923
Depreciation and amortization expense                                                  82,925              737,832
Research and development                                                                    -              415,265
                                                                             ----------------      ---------------

                                                                                      871,530            3,577,020
                                                                             ----------------      ---------------

Loss from operations before the under-noted                                           153,089            2,612,354

Share of income (loss) of equity investment (Note 7)                                   (1,740)             178,031

Loss on sales and write down of assets                                               (114,886)                   -
                                                                             ----------------      ---------------

Loss before income taxes and non-controlling interest                                (269,715)          (2,434,323)

Income tax expense                                                                    (22,796)              (1,847)
                                                                             ----------------      ---------------

Loss for the period                                                                  (292,511)          (2,436,170)

Accretion of mandatory redeemable common stock
   to redemption value (Note 4(a))                                                          -              (61,553)

Deficit beginning of period                                                       (23,229,804)          (8,258,366)
                                                                             ----------------      ---------------

Deficit end of period                                                        $    (23,522,315)     $   (10,694,536)
                                                                             =================     ===============

Basic loss per share                                                                   (0.005)               (0.04)
                                                                             =================     ================

Loss for the period                                                          $       (292,511)     $    (2,436,170)

Foreign currency translation adjustments and
   other comprehensive income (loss)                                                   (6,210)              64,586
                                                                             ----------------      ---------------

Comprehensive loss                                                           $       (298,721)     $    (2,371,584)
                                                                             =================     ===============

Shares used in computing basic earnings per share                                  62,738,926           62,714,551
                                                                             ================      ===============

(Diluted loss per share has not been presented as the result is anti-dilutive)

</TABLE>

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


                                       F-3
<PAGE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in U.S. dollars)
-------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31                                                         2002                 2001
-------------------------------------------------------------------------------------------------------------------

<S>                                                                          <C>                   <C>
OPERATING ACTIVITIES
Loss for the year                                                            $       (292,511)     $    (2,436,170)
Adjustments to reconcile net loss to cash
   Depreciation and amortization                                                       82,925              737,832
   Foreign exchange                                                                    (8,385)              60,210
   Stock options issued to non-employees                                                    -              311,531
   Share of loss of equity investment                                                   1,740             (178,031)
   Provision for impairment                                                            82,003                    -
   Gain on sale of assets                                                              32,883                    -
Net change in non-cash working capital items (Note 19)                                 99,369             (124,705)
                                                                             ----------------      ---------------

CASH USED IN OPERATING ACTIVITIES                                                      (1,976)          (1,629,333)
                                                                             ----------------      ---------------

FINANCING ACTIVITIES
Bank indebtedness                                                                           -              (16,524)
Related party repayments                                                                 (343)            (100,837)
Long-term debt (repayment)                                                             16,748               49,570
                                                                             ----------------      ---------------

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                        16,405              (67,791)
                                                                             ----------------      ---------------

INVESTING ACTIVITIES
Purchase of property, plant and equipment (net of disposal proceeds)                   (1,440)            (441,214)
                                                                             ----------------      ---------------

CASH USED IN INVESTING ACTIVITIES                                                      (1,440)            (441,214)
                                                                             ----------------      ---------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
DURING THE PERIOD                                                                      12,989           (2,138,338)

EFFECT OF FOREIGN EXCHANGE ON CASH                                                      6,285              (27,644)

CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD                                         310,050            6,205,169
                                                                             ----------------      ---------------

CASH AND CASH EQUIVALENTS END OF PERIOD                                      $        329,324      $     4,039,187
                                                                             ================      ===============

Supplemental cash flow information:

Interest paid                                                                $          8,952      $             -
Taxes paid                                                                   $         22,796      $             -
</TABLE>


                                       F-4
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------


1.   NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS

     Aucxis Corp. (the "Company") changed its name from e-Auction Global Trading
     Inc. in June 2001.

     The Company is currently developing  e-business services for the perishable
     commodity  marketplace  primarily  in  Europe.  In  addition,  through  its
     subsidiary,  Aucxis  Trading  Solutions  N.V.  (ATS)  (formerly  Schelfhout
     Computer  Systemen N.V.),  the Company is engaged in the  installation  and
     maintenance of auction clock and cooling  systems for  traditional  auction
     halls  and  the   development   of   software   for   auctions,   including
     Internet-based  auction  systems.  To  date  the  Company  has  not  earned
     significant revenue from its Internet-based auction systems and the success
     of these  systems  will  depend upon market  acceptance  of a  commercially
     viable prototype and obtaining adequate resources to complete and implement
     these  systems.  The  Company is not yet able to  determine  whether  these
     efforts will be successful.

     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, 2002
     and has suffered recurring  operating losses and has an accumulated deficit
     as at March 31,  2002.  These  factors  raise  substantial  doubt about the
     ability of the Company to continue as a going concern.

     The ability of the Company to continue as a going concern is dependent upon
     effective  implementation  of revenue and cost management  alternatives and
     the success of potential future external financing initiatives.

     Management is considering various revenue and cost management  alternatives
     and is  examining  a variety  of  options  to raise  additional  financing,
     including the possibility of merging the Company's  operations with another
     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 wholly-owned subsidiaries as follows:

         Aucxis Corp. N.V. (Belgium)
         Aucxis Trading Solutions N.V. (formerly Schelfhout Computer Systemen
           N.V. (Belgium)
         I-Three Inc.
         e-Auction Global Trading Inc. (Barbados)
         Aucxis Corp. (Canada)

     The March  31,  2001  comparative  figures  also  include  the  Netherlands
     subsidiaries  described in Note 1 as these entities were  controlled by the
     Company at that time.


     These financial statements also include the accounts of Scoop Software B.V.
     (Netherlands) which is 80% owned.

     The financial statements also include the Company's share of the net assets
     and earnings or loss of the Company's  48.2%  investment in Aucxis  Limited
     (Australia) and 40% (2001 - 100%)  investment in SDL Invest N.V.  (Belgium)
     which are accounted for by the equity method.


                                       F-5
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     (a) Foreign exchange translation

         The Company's functional currency is U.S. dollars, except that its main
         operating  subsidiaries  function  in  Netherland  guilders  and euros.
         Foreign denominated  non-monetary  assets,  liabilities and other items
         are measured in U.S.  dollars using the exchange rate prevailing at the
         respective   transaction   dates.   Monetary   assets  and  liabilities
         denominated  in foreign  currencies  are  measured  at  exchange  rates
         prevailing   at  the  balance  sheet  date.   Resulting   remeasurement
         adjustments  are  included in income.  The Company  applies the current
         exchange  rate to  translate  the  operating  subsidiaries'  assets and
         liabilities  and  average  exchange  rate  for the  year  to  translate
         revenues,  expenses  and  gains and  losses,  into  U.S.  dollars.  The
         resulting translation  adjustments are included as a separate component
         of comprehensive loss within shareholders' equity.

     (b) Financial instruments

         The  Company's   financial   instruments   consist  of  cash  and  cash
         equivalents  and  bank  indebtedness,   accounts  receivable,  accounts
         payable  and  accrued  liabilities  amounts,  due to  related  parties,
         deferred revenue, long-term debt and contingencies.  The fair values of
         these financial  instruments  approximate  their carrying values due to
         their short-term nature and normal trade terms.

     (c) Property, plant and equipment

         Property,  plant and  equipment  are recorded at cost less  accumulated
         depreciation.  Property,  plant and equipment are depreciated  from the
         date of acquisition using the following rates and methods:

              Building                       40 years straight-line
              Furniture and fixtures         10 years straight-line
              Leaseholds                      4 years straight-line
              Tools and equipment             5 years straight-line
              Vehicles                        5 years straight-line
              Software                        5 years straight-line

     (d) Acquired workforce

         Acquired workforce is recorded at cost and amortized on a straight-line
         basis over its  expected  life of  approximately  five years.  Acquired
         workforce  related to I-Three Inc. was written off in the third quarter
         of 2001.


     (e) 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.
         Acquired core technology related to I-Three Inc. was written off in the
         third quarter of 2001.


                                       F-6
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     (f) Goodwill

         Goodwill  represents the costs of acquired  businesses in excess of the
         fair values of the net identifiable assets acquired and is amortized on
         a straight-line basis over its expected life of five years.

         Late in 2001, the Company wrote off the remaining  goodwill  related to
         its acquisition of Kwatrobox as the Company  discontinued its financial
         support for the business operated by Kwatrobox as described in Notes 1,
         4(b) and 11.

         Late in 2001, the Company also wrote off the remaining goodwill related
         to its acquisition of ATS (formerly  Schelfhout Computer Systemen N.V.)
         as the Company no longer considered the carrying amount of this portion
         of the goodwill to represent  the amount by which the fair value of ATS
         exceeded the fair value of its net identifiable  assets as described in
         Notes 4(a) and 11.

     (g) Impairment 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.

     (h) Internal use software

         The company has acquired and is developing software for internal use in
         its  e-business  services.  As the company is still in the  preliminary
         stages of  developing  its  e-business  services all related costs have
         been expensed in the year.

     (i) Income taxes

         The company  provides  for income  taxes under the asset and  liability
         method in accordance  with Statement of Financial  Accounting  Standard
         No. 109,  Accounting for Income Taxes. Under this method,  deferred tax
         assets and liabilities are determined based on differences  between the
         financial  reporting and income tax bases of assets and liabilities and
         are measured using enacted tax rates and laws. Valuation allowances are
         established,  when  necessary,  to reduce  deferred  tax  assets to the
         amounts  which are more likely than not to be  realized.  To date,  the
         company's  deferred tax assets,  relating  primarily to losses  carried
         forward,  have not been  considered more likely than not to be realized
         and,  accordingly,  a valuation  allowance  equal to the  deferred  tax
         assets has been recorded.

     (j) Revenue recognition

         The Company derives  revenue from the  development and  installation of
         clock systems,  cooling  installations and maintenance services related
         to these systems.  Clock and cooling  installations  take three to four
         months to  complete  and are  accounted  for using  the  percentage  of
         completion  method in  accordance  with  Statement  of Position  81.-1.
         Revenue from contracts with customers that include customer  acceptance
         provisions  that are not confirmed  until delivery and  installation of
         the  systems  is  recognized  when the  installation  is  complete  and
         customer acceptance has occurred under the completed contract method of
         accounting.


                                       F-7
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     (j) Revenue recognition (continued)

         Revenue from the sale of customized hardware and software  applications
         is recognized when a formal  arrangement  exists, the price is fixed or
         determinable,   the  delivery  is  completed  and   collectibility   is
         reasonably assured.

         Maintenance  contracts to service  installed  clock and cooling systems
         are sold  separately  from  these  systems.  Revenue  from  maintenance
         contracts is recognized  rateably over the contract period during which
         services are performed,  as vendor specific  objective evidence of fair
         value for maintenance service is obtained.

     (k) Inventory

         Inventory is stated at the lower of cost or net  realizable  value with
         cost being determined using the weighted average cost method.  Obsolete
         or defective inventories are reduced to net realizable value.

         The work-in-progress  inventory represents direct costs,  including raw
         materials, labour and an allocation of overhead.

     (l) Stock options

         SFAS No. 123, "Accounting for Stock-Based  Compensation," requires that
         stock awards  granted be  recognized as  compensation  expense based on
         their fair  values at the date of grant.  Alternatively,  a company may
         account for granted  stock awards  under  Accounting  Principles  Board
         Opinion (APB) No. 25,  "Accounting  for Stock Issued to Employees," and
         disclose  pro forma  income  amounts  which  would have  resulted  from
         recognizing such awards at their fair value. The Company has elected to
         account for stock-based compensation for employees under APB No. 25 and
         make the required pro forma disclosures for compensation expense. Stock
         based  compensation for  non-employees are accounted for using SFAS No.
         123.

         The  Company  has  modified  the terms of its option  plan for  certain
         employees and, in accordance with Financial  Accounting Standards Board
         Interpretation  No. 44 (FIN 44),  Accounting  for Certain  Transactions
         Involving  Stock  Compensation,  the Company has adopted  variable plan
         accounting   for  these  options.   Under  variable  plan   accounting,
         compensation  expense is  calculated  and recorded each period from the
         date of modification to the date of measurement.

     (m) Cash and cash equivalents

         Cash and cash equivalents  consist of cash on deposit and highly liquid
         short-term,  interest  bearing  securities,  having  original  terms to
         maturity of three months or less.

     (n) Warranty provision

         One of the Company's  subsidiaries  provides a warranty for some of the
         products  sold. A provision for estimated  warranty costs is charged to
         operations  on the  basis  of  management's  estimate  of  costs  to be
         incurred servicing warranty claims.

     (o) Use of estimates

         The  preparation  of financial  statements  in  conformity  with United
         States generally accepted accounting  principles requires management to
         make  estimates  and  assumptions  that affect the reported  amounts of
         assets and liabilities and disclosures of contingent liabilities at the
         date of the financial  statements and the reported  amounts of revenues
         and  expenses  during  the  reporting  period.   Financial  results  as
         determined by actual events could differ from those estimates.


                                       F-8
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------


3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     (p) Comparative figures

         Certain amounts in the financial  statements have been  reclassified to
         be consistent and comparable from year-to-year.


4.   ACQUISITIONS AND IMPAIRMENT OF ACQUIRED ASSETS

     (a) ATS (formerly Schelfhout Computer Systemen N.V.)

         On January 10, 2000,  the Company  completed and closed the purchase of
         100% of the issued and outstanding  shares of ATS (formerly  Schelfhout
         Computer  Systemen  N.V.), a Belgian  company that supplies  clocks and
         cooling systems to auction houses.  The Company  acquired the shares of
         ATS in  exchange  for  3,636,364  shares  of  common  stock and cash of
         $4,000,000. The shares of common stock were valued at $3,636,364, based
         on their  estimated  fair value at  January  10,  2000.  Fair value was
         determined based on the cash price paid for stock in a  contemporaneous
         private  placement,  the put  feature  related to the shares  issued to
         acquire  ATS and the market  price of the  Company's  stock  around the
         acquisition date.

         Under the terms of the purchase  agreement,  the vendors  agreed not to
         sell or  transfer  any of their  shares  except  on the basis of a time
         release  formula which presumes that the shares will be freely tradable
         at the time of release for sale or transfer.

         The terms of the purchase agreement also provide the vendors with a put
         feature which allows the vendors to sell the shares back to the Company
         at  $1.65  per  share  at the time of  release  if they are not  freely
         tradable.

         Under the time release  formula,  454,545  shares are to be released on
         each of the 6, 12, 18 and 24 month anniversary dates of the closing and
         606,061  shares are to be  released  on each of the 36, 48 and 60 month
         anniversary dates of the closing.

         Since the 3,636,364 shares issued to the vendors are subject to the put
         feature described above,  which is beyond the Company's direct control,
         they have been  classified  as  mandatory  redeemable  shares of common
         stock.  During 2001,  the Company  accreted  $243,817 to the  mandatory
         redeemable  shares of common stock all of which was  recognized  in the
         last quarter of 2001.

         The first  454,545  shares were not free trading on July 10, 2000,  the
         six-month  anniversary  date of the  acquisition  and  during  2001 the
         vendors  sought to  exercise  their  right to retract  909,090  shares,
         representing the first two tranchees under the time release  agreement,
         on the  basis  that  they  were not free  trading  on their  respective
         release dates (see also Note 24(b)).

         In December  2001,  the  Company  wrote off the net  carrying  value of
         goodwill of $3,924,267 related to the ATS acquisition as the Company no
         longer considered the carrying amount of this goodwill to represent the
         amount by which the fair  value of ATS  exceeded  the fair value of its
         net identifiable assets (see Note 11).


                                       F-9
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

4.   ACQUISITIONS AND IMPAIRMENT OF ACQUIRED ASSETS (continued)

     (b) Purchase of Kwatrobox B.V.

         Effective November 1, 2000, the Company acquired 100% of the issued and
         outstanding  shares of  Kwatrobox  B.V.  ("Kwatrobox"),  a provider  of
         electronic  auction  infrastructure  and enterprise  resource  planning
         software,  for cash of $1,573,250  and 1,250,000  shares of the Company
         plus  performance  related  contingent  consideration  of up to 200,000
         shares of common stock of the Company.  Total consideration,  excluding
         the contingently issueable shares was $2,883,250.

         750,000 of the shares  issued upon  closing on  November 1, 2000,  were
         held in escrow subject to a time release arrangement;  150,000 of which
         remain to be released on June 5, 2002.

         The   performance   shares  were  contingent  upon  Kwatrobox  and  its
         subsidiaries  earning  combined  pre-tax income of between $1.0 million
         and $1.4 million for the period  commencing  on June 5, 2000 and ending
         July 4, 2003. No  additional  consideration  is required  where pre-tax
         earnings  are less than $1 million  for this  period.  The  performance
         shares were not included in the purchase  consideration  at the time of
         purchase.  Any additional  consideration arising after the purchase was
         to be based on the fair  value of the  shares to be issued at that time
         and was to be recorded as an increase in goodwill.

         In September  2001, the Company  decided to  discontinue  its financial
         support  for  Kwatrobox  B.V.  and  its  Netherlands   subsidiaries  as
         described  in Note 1. As a result,  the  Company  wrote off a net asset
         deficiency of $445,989 and goodwill of $3,386,785  related to Kwatrobox
         and its subsidiaries.

         Although  Kwatrobox and its primary  operating  subsidiaries have filed
         for  bankruptcy  and a  trustee  has  been  appointed  pursuant  to the
         Netherlands bankruptcy laws, the Company's management believes that the
         Company is not exposed to further  claims by creditors of Kwatrobox and
         its  subsidiaries  and no amounts have been accrued in these  financial
         statements for such claims.

     (c) Purchase of I-Three Inc.

         On  November  27,  2000,  the Company  acquired  100% of the issued and
         outstanding  shares of I-Three Inc. in exchange  for 455,000  shares of
         the    Company.     I-Three    Inc.     specialized    in    real-time,
         business-to-business infrastructure technology. The total consideration
         paid was $218,400.

         In June 2001, the Company  determined  that the acquired  workforce and
         acquired core  technology  obtained  through the acquisition of I-Three
         Inc. would be terminated and abandoned  respectively.  As a result, the
         Company  wrote off  acquired  workforce  of  $144,461  and  goodwill of
         $563,211 related to I-Three Inc.

         On August 29, 2001,  the Company made an agreement  with  BoomBoat Inc.
         ("BoomBoat")  whereby the Company  paid  BoomBoat to take over  I-Three
         Inc.'s  operations  and  employees  paying  BoomBoat a one-time  fee of
         $181,943. In exchange, BoomBoat agreed to pay the Company, a royalty of
         1% of revenues received from August 30, 2001 up to and including August
         29,  2006.  I-Three  Inc.  retained  the rights to its  technology  and
         intellectual property.


                                      F-10
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

4.   ACQUISITIONS AND IMPAIRMENT OF ACQUIRED ASSETS (continued)

     (d) Impairment of goodwill, acquired workforce and acquired core technology

         The  impairment  provision  for the year ended  December  31,  2001 for
         goodwill,  acquired workforce and acquired core technology is comprised
         as follows:

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


5.   ACCOUNTS RECEIVABLE

     Accounts receivable consists of the following amounts:

<TABLE>
<CAPTION>
                                                                    March 31,          December 31,
                                                                         2002                 2001
                                                                         ----                 ----
<S>                                                              <C>                  <C>
     Accounts receivable                                         $     1,354,001      $     1,243,188
     Allowance for doubtful accounts                                           -              (12,840)
                                                                 ---------------      ---------------

                                                                 $     1,354,001      $     1,230,348
                                                                 ===============      ===============


6.   INVENTORY

     Inventory consists of the following:
                                                                      March 31,          December 31,
                                                                           2002                 2001
                                                                           ----                 ----

     Raw materials                                               $       230,555      $       235,990
     Work-in-progress                                                    117,453               45,418
     Finished goods                                                      129,633              122,902
                                                                 ---------------      ---------------

                                                                 $       477,641      $       404,310
                                                                 ===============      ===============
</TABLE>


7.   INVESTMENT

     During 2001, the Company recognized an impairment in the carrying amount of
     its  equity  investment  in Aucxis  Limited  (Australia)  in the  amount of
     $484,448 because  management  believed that the Company will not be able to
     recover its investment in Aucxis Limited (Australia).

     This  impairment is included in share of loss of equity  investment for the
     year ended December 31, 2001. The remaining investments balance consists of
     the Company's interest in SDL Invest N.V. (Belgium).


                                      F-11
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

8.   PROPERTY, PLANT AND EQUIPMENT

<TABLE>
<CAPTION>
                                                                                   March 31,        December 31,
                                                                                     2002              2001
                                                                Accumulated      Net Carrying      Net Carrying
                                                 Cost           Depreciation         Value             Value
<S>                                                <C>                <C>              <C>               <C>
     Furniture and fixtures                        $ 96,103           $ 11,930         $ 84,173          $124,919
     Leaseholds                                           -                  -                -            27,619
     Software                                       274,746            124,935          149,811           157,582
     Tools and equipment                             57,832             28,951           28,881           122,761
     Vehicles                                       511,642            228,016          283,626           273,973
                                           ----------------- -----------------   --------------   ---------------

                                                   $940,323           $393,832         $546,491          $706,854
                                           ================= =================   ==============   ===============
</TABLE>


9.   ACQUIRED WORKFORCE

<TABLE>
<CAPTION>
                                                                         March 31,          December 31,
                                                                              2002                 2001
                                                                              ----                 ----
<S>                                                               <C>                   <C>
     Cost                                                         $              -      $       166,898
     Accumulated amortization                                                    -              (22,437)
     Written off I-Three Inc. (Note 4(c))                                        -             (144,461)
                                                                  ----------------      ---------------

                                                                  $              -      $             -
                                                                  ================      ===============


10.  ACQUIRED CORE TECHNOLOGY
                                                                         March 31,          December 31,
                                                                              2002                 2001
                                                                              ----                 ----

     Cost                                                         $        748,969      $     1,394,310
     Accumulated amortization                                             (337,036)            (381,718)
     Written off I-Three Inc. (Note 4(c))                                        -             (563,211)
                                                                  ----------------      ---------------

                                                                  $        411,933      $       449,381
                                                                  ================      ===============


11.  GOODWILL
                                                                         March 31,          December 31,
                                                                              2002                 2001
                                                                              ----                 ----

     Cost                                                         $              -      $    10,677,812
     Accumulated amortization                                                    -           (3,366,760)
     Written off ATS (Note 4(a))                                                 -           (3,924,267)
     Written off Kwatrobox (Note 4(b))                                           -           (3,386,785)
                                                                  ----------------      ----------------

                                                                  $              -      $             -
                                                                  ================      ===============
</TABLE>


                                      F-12
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------


12.  BANK INDEBTEDNESS

     The  Company's  subsidiary,  ATS, has  available a bank credit  facility of
     approximately  $220,000  (247,000  EUR)  which  can be used  for  operating
     purposes.  This credit facility bears interest at the bank's base rate plus
     1.25% and is  secured by a pledge of  approximately  $90,000  over  certain
     assets of ATS.

     The Company has  executed a  postponement  agreement in favour of the bank.
     Under the  agreement  the Company may not cause the ATS  subsidiary  to pay
     dividends to the Company or otherwise  make payments to other  companies in
     the group without the consent of the bank.


13.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

     Accounts payable and accrued liabilities consist of the following:

<TABLE>
<CAPTION>
                                                                       March 31,          December 31,
                                                                            2002                 2001
                                                                            ----                 ----

<S>                                                             <C>                   <C>
     Trade payables                                             $      1,010,146      $       853,412
     Accrued liabilities                                                 119,290              263,000
     Payroll                                                             572,472              346,420
                                                                ----------------      ---------------

                                                                $      1,701,908      $     1,462,832
                                                                ================      ===============


14.  DUE TO RELATED PARTIES
                                                                       March 31,          December 31,
                                                                            2002                 2001
                                                                            ----                 ----

     Due to former Kwatrobox shareholders                                351,992              352,335

     Less:  Current portion                                             (351,992)            (352,335)
                                                                ----------------      ---------------

                                                                $              -      $             -
                                                                ================      ===============
</TABLE>

     The amount due to former Kwatrobox  shareholders relates to the acquisition
     of Kwatrobox from these former shareholders and the balance is non-interest
     bearing.

     Included in the accounts  payable is $58,965 (2001 - $59,000) due to a firm
     in which a director is a partner.

     Included in accounts  payable is $20,697  (2001 - $33,494) due to a company
     controlled by directors of a subsidiary.


                                      F-13
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

15.  RELATED PARTY TRANSACTIONS

     The Company  incurred the following  amounts to related  parties during the
     period and year ended March 31, 2002 and December 31, 2001 respectively.

<TABLE>
<CAPTION>
                                                                               March 31,            December 31,
                                                                                    2002                   2001
                                                                                    ----                   ----
<S>                                                                          <C>                 <C>
     Management fees to companies controlled by former directors             $            -      $       242,975

     Professional fees paid to a firm in which a director is a partner                    -               59,000

     Administration fees to a company with common directors                          20,697               38,391

     Consulting fees to a company controlled by a director                                -               61,150

     Consulting fees paid to a company controlled by the directors
     of a subsidiary                                                                      -              148,690

     Rent paid to SDL Invest N.V. (Belgium)                                               -               87,140

16.  LONG-TERM DEBT
                                                                                  March 31,          December 31,
                                                                                       2002                 2001
                                                                                       ----                 ----

     Vehicle loans                                                           $      271,446      $       254,698

     Less:  Current portion                                                          75,692               89,055
                                                                             --------------      ---------------
     Long-term debt                                                          $      195,754      $       165,643
                                                                             ==============      ===============
</TABLE>

     The vehicle  loans have  interest  rates  ranging from 3.67% to 8.82%,  and
     maturity  dates ranging from June 2002 through May 2006, and are secured by
     the related vehicles.

     The debt repayments over the next five years are as follows:

         2002                                              $         75,692
         2003                                                        92,102
         2004                                                        59,454
         2005                                                        35,159
         2006                                                         9,039
                                                           ----------------
                                                           $        271,446
                                                           ================

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


17.  INCOME TAXES

     The Company has adopted the  provisions of Financial  Accounting  Standards
     Board Statement No. 109 (SFAS 109), Accounting for Income Taxes.

     Pursuant to SFAS 109, the Company is required to compute tax asset benefits
     for net operating losses carried forward.  The potential tax benefit of net
     operating  losses  has not  been  recognized  in the  financial  statements
     because the Company  cannot be assured that it is more likely than not that
     it will utilize the net operating losses carried forward in future years.


                                      F-14
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

17.  INCOME TAXES (continued)

     The Company has U.S. and European tax losses of  approximately  $18,000,000
     to offset future years taxable  income.  These losses expire between fiscal
     2014 and fiscal 2016.

     The  components of the net deferred tax asset,  the statutory tax rate, the
     effective tax rate and the elected  amount of the  valuation  allowance are
     outlined below:

<TABLE>
<CAPTION>
                                                                    Period ended           Year ended
                                                                       March 31,          December 31,
                                                                            2002                 2001
                                                                            ----                 ----
<S>                                                             <C>                   <C>
     Net combined U.S. and European operating losses            $     18,300,000      $    18,000,000
     Statutory combined U.S. and European tax rate                         35%                     35%
     Effective tax rate                                                        -                    -
     Deferred tax asset                                                6,405,000            6,300,000
     Valuation allowance                                              (6,405,000)          (6,300,000)
                                                                ----------------      ---------------
     Net deferred tax asset                                     $              -      $             -
                                                                ================      ===============
</TABLE>


18.  COMMON STOCK

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

<CAPTION>
                                                                       Options for             Weighted
                                                                         shares of              average
                                                                           common        exercise price
                                                                             stock            per share
                                                                             -----            ---------
         <S>                                                             <C>                      <C>
         Balance December 31, 2000                                       8,213,000                0.34
                                                                     -------------      --------------
         Exercised                                                         (58,500)                .01
         Cancelled                                                      (5,100,000)                .35
                                                                     -------------      --------------
         Balance December 31, 2001 and March 31, 2002                    3,054,500                 .34
                                                                     =============      ==============
</TABLE>

     The following table summarizes information about the Company's share
     options outstanding as at December 31, 2001 and March 31, 2002.

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


                                      F-15
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

18.  COMMON STOCK

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

                                                                 March 31,
                                                                     2002

         Loss
              As reported                                    $    292,511
              Pro-forma                                           380,000

         Basic and diluted loss per share
              As reported                                                .005
              Pro forma                                                  .006

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


19.  CHANGE IN NON-CASH WORKING CAPITAL

                                                       March 31,    December 31,
                                                            2002           2001
                                                            ----           ----

     Accounts receivable                           $    (123,653)  $    370,523
     Inventory                                           (73,331)       204,227
     Prepaid expenses                                     11,309          8,291
     Accounts payable and accrued liabilities            239,076       (849,475)
     Deferred items                                       45,968       (600,746)
                                                   -------------   ------------

                                                   $      99,369   $   (867,180)
                                                   =============   ============

20.  SEGMENTED INFORMATION

     The Company operates in one operating segment,  this being the installation
     of auction clocks and cooling systems.

     GEOGRAPHIC INFORMATION
                                                       March 31,       March 31,
                                                            2002            2001
                                                            ----            ----
     Revenue
         Canada                                    $           -   $      76,571
         Belgium                                       1,308,512         882,119
         Netherlands                                           -       1,007,485
                                                   -------------   -------------

                                                   $   1,308,512   $   1,966,175
                                                   =============   =============

                                                       March 31,    December 31,
                                                            2002            2001
                                                            ----            ----

     Identifiable long lived assets
         Canada                                    $     190,653   $     278,892
         Belgium                                         767,771         877,343
         Netherlands                                           -               -
                                                   -------------   -------------

                                                   $     958,424   $   1,156,235
                                                   =============   =============


                                      F-16
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

21.  LOSS PER COMMON SHARE

     The weighted  average number of shares of common stock used for calculating
     the basic loss per share is 62,738,926  (2001 - 62,714,551).  Fully diluted
     loss per  share is the same as the basic  loss per  share  for the  periods
     ended March 31, 2002 and 2001.  Loss per share is  determined  based on the
     loss  available to common  shareholders  as  presented in the  statement of
     operations, deficit and comprehensive loss.

     The 3,054,500 outstanding stock options are not included in the computation
     of earnings per share as they are anti-dilutive for the periods presented.


22.  COMMITMENTS

     The  Company has future  minimum  lease  payments  under  operating  leases
     relating to premises at March 31, 2002 as follows:

     2002                                                $         66,750
     2003                                                          89,000
     2004                                                          89,000
     2005                                                          89,000
     2006                                                          89,000
                                                         ----------------
                                                         $        422,750


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

23.  CONTINGENCIES

     (a)  Claims  totalling  approximately  $800,000 have been made against ATS,
          the Company's main Belgian subsidiary,  by a competitor,  Agro Marches
          Internationalaux S.A. No amounts have been recorded in these financial
          statements  to provide for any possible  settlement of these claims as
          management is unable to determine whether they have merit.

     (b)  Certain  customers of a subsidiary have filed claims totalling $70,000
          against the  subsidiary  company.  At present,  there is  insufficient
          information  available to  ascertain  the  likelihood  of these claims
          being successful.  Accordingly, no recognition of this contingent loss
          has been made.

     (c)  A former  employee of I-Three  Inc.  has  received a judgement  from a
          Texas  court  against  the  Company  for  approximately   $25,000.  No
          provision  has  been  made in  these  financial  statements  for  this
          judgement as management  believes this court has no jurisdiction  over
          the matter.

     (d)  The  former  owners  of  the  Company's   subsidiary,   ATS  (formerly
          Schelfhout  Computer  Systemen N.V.),  sought to enforce the mandatory
          redemption  feature  related  to the  first  two  tranchees  of shares
          totalling  909,090  be  released  under  the  terms  of  the  purchase
          agreement  described  in Note 4(a) on the basis that these shares were
          not  free  trading  at the  time of  release  as  contemplated  in the
          agreement. The former owners of the Company's subsidiary, who are also
          directors of the subsidiary,  brought an action against the Company to
          enforce a pledge on the shares of ATS,  which was  provided  to secure
          the  obligations of the Company under the  agreement.  This action was
          heard by a Belgian  court which  granted a remedy to the former owners
          of the  subsidiary  which allowed them to re-acquire a 7 1/2% interest
          in the  subsidiary  from the Company in exchange  for the transfer for
          cancellation  of the first tranche of 454,545 shares of the Company in
          full  satisfaction  of the Company's  obligations  in relation to such
          shares  under the  agreement.  No  further  action has been taken with
          respect to the second  tranche of 454,545  shares  released on January
          10, 2001.


                                      F-17
<PAGE>

--------------------------------------------------------------------------------
AUCXIS CORP.
(formerly e-Auction Global Trading Inc.)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(in U.S. dollars)
--------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2002 AND YEAR ENDED DECEMBER 31, 2001
--------------------------------------------------------------------------------

24.  SUBSEQUENT EVENTS

     (a)  Subsequent  to December 31, 2001,  the Company  announced  that it had
          entered   into   negotiations   with  a   competitor,   Agra   Marches
          Internationalaux  S.A.  to  explore  a  possible  merger  of  the  two
          companies  and enter into an  non-binding  Letter of Intent  with Agra
          Marches Internationalaux S.A. in this regard.

          There is no certainty  that any progress  made to date with respect to
          such merger will  ultimately  lead to a merger of the two companies as
          details have not been finalized.

     (b)  On April 16, 2002, Mr. Schelfhout and Mrs. De Laet filed a request for
          arbitration against Aucxis Corp. N.V. and the Company.

          The  plaintiffs   allege  that  the  Company  and  Aucxis  Corp.  N.V.
          deliberately committed a number  misrepresentations  both prior to and
          subsequent to the closing the ATS share purchase agreement.  They have
          alleged  damages  of up to USD  1,190,309  for  which  they seek to be
          compensated by Aucxis Corp. N.V. and the Company.

          These  proceedings  are presently in their initial  stages and are not
          expected to be resolved for at least one year.

          On March 29, 2002 Mr.  Schelfhout and Mrs. De Laet brought an ex parte
          application   before  the  President  of  the   Commercial   Court  of
          Dendermonde  (Belgium),  which granted them  authorization  to apply a
          restraint  order to a portion of the ATS shares  held by Aucxis  Corp.
          N.V.

          The restraint order was  effectively  applied on that same date with a
          view to securing damages that may be due in respect of the arbitration
          proceedings.

          On April 29, 2002 Aucxis Corp.  N.V.  appealed the  authorization  and
          restraint  order  before the Court and a decision  is expected by July
          2002.

          The Company also brought an action against Mr.  Schelfhout and Mrs. De
          Laet relating to  irregularities  in discharging  their obligations as
          directors of ATS.

          On April 30, 2002, Mr. Schelfhout resigned as the managing director of
          ATS and  ceased  to  perform  the  duties  required  of him  under his
          management contract.

          All of these  proceedings  are currently in their  initial  stages and
          decisions  are not  expected  before  the end of the year.  Management
          believes that the claims brought against the Company are without merit
          and does not expect  that any impact  resulting  from them will have a
          material effect on the Company.


25.  NEW ACCOUNTING STANDARDS

     The Company will be required to adopt SFAS 133,  Accounting  for Derivative
     Instruments  and Hedging  Activities  for the 2002 fiscal year. At present,
     the company  does not use  derivative  financial  instruments  and does not
     enter into hedging transactions. Therefore, the impact of adopting SFAS 133
     on financial reporting will not be material.

     The  Company  will also be required  to adopt SFAS 142  Goodwill  and Other
     Intangible Assets for its 2002 fiscal year. Based on the Company's existing
     intangible  assets and its current  accounting  policy for such items,  the
     impact of  adopting  SFAS 142 is not  expected  to result in a  significant
     impact on the Company.


                                      F-18
<PAGE>


Item 2.  Management's  Discussion and Analysis of Financial Condition and Result
         of Operations

Cautionary Statement for purposes of the "Safe Harbor" Provisions of the Private
Securities  Litigation  Reform Act of 1995:  When used herein,  the words "may",
"will", "expect",  "anticipate",  "continue",  "estimate",  "project", "intend",
"plan"  and  similar  expressions  are  intended  to  identify   forward-looking
statements  within the meaning of Section 27A of the  Securities Act of 1933, as
amended,  and Section 21E of the  Securities  Exchange Act of 1934,  as amended,
regarding events,  conditions and financial trends that may affect the Company's
future plans of operations,  business strategy,  operating results and financial
position. 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.  These
factors include,  among others, the Company's ability to implement  successfully
its business plan and integrate any proposed and future acquisition and business
arrangements,   potential  fluctuations  in  its  financial  results;  procuring
additional  funding;  any  uncertainties   relating  to  business  and  economic
conditions in markets in which the Company operates;  any uncertainties relating
to customer plans and commitments;  the timely development and market acceptance
of the Company's  technologies;  possible product defects and product liability,
dependence on intellectual property rights, the competitive environment in which
the Company operates and other risks detailed from time to time in the Company's
public  filings.  The  occurrence of any  unanticipated  events may cause actual
results  to differ  from  those  expressed  or  implied  by the  forward-looking
statements  contained  herein.  You are cautioned not to place undue reliance on
these statements, which speak only as of the date of this report.

Overview

Aucxis Corp.  ("Aucxis" or the "Company") was originally  incorporated in Nevada
on  January 8, 1998  under the name  Kazari  International,  Inc.  (Kazari).  On
February 26, 1999, Kazari and e-Auction Global Trading Inc.  (Barbados)  entered
into a share exchange  agreement  pursuant to which agreement  Kazari  purchased
e-Auction  (Barbados)  shares  on a one  for one  basis.  Kazari  had no  viable
business  activities at the time of the share  exchange  agreement.  On June 10,
1999,  Kazari amended its name to e-Auction  Global  Trading Inc.  During fiscal
year 2000, Aucxis acquired  Schelfhout  Computer Systemen N.V.,  Kwatrobox B.V.,
and I-Three, Inc. On June 12, 2001 the Company amended its charter to change its
name to Aucxis Corp.

Aucxis currently has a wholly owned subsidiary,  e-Auction (Barbados),  which in
turn has one wholly owned subsidiary,  Aucxis Corp.  (Canada).  The Company also
owns  Aucxis  Corp.  (Belgium),  directly,  which in turn has one  wholly  owned
subsidiary,  Aucxis Trading Solutions NV ("ATS") (formerly  Schelfhout  Computer
Systemen N.V.(Schelfhout)),  a Belgium company. ATS has a 40% ownership interest
in SDL Invest N.V. and a 33.3%  interest in ATS Holland  B.V.  Aucxis also has a
48.2%  investment  in  Aucxis  Limited.  (Australia)  (formerly  Hunter  Capital
Limited), that was written off in the prior year. Previously, Aucxis Limited was
accounted for by the equity method.


                                        2
<PAGE>

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

ATS  (formerly  Schelfhout)  is a solutions  provider for  perishable  commodity
(fish, flower, fruits and vegetables) auction houses. Over the past 17 years ATS
has developed  trading systems for numerous selling  organizations  all over the
world.  Through ATS, the Company has the potential to access electronic  trading
hubs  representing  billions of dollars in annual turnover,  including  European
trade of more than  USD$7  billion.  ATS  delivers  the tools to bring  together
supply and demand  under  optimum  conditions  and thus  create a better  market
situation.  ATS has focused on two market sectors:  (i) the  computerization  of
auctions and (ii) automation for the preservation of perishable products.  As an
ancillary to the auction  system,  a modular graphic display panel was developed
by ATS in 1992 and added to the product range.

Through  its  subsidiary  ATS,  Aucxis  is  engaged  in  the   installation  and
maintenance of auction clock and cooling systems for  traditional  auction halls
and the development of software for auctions,  including  Internet-based auction
systems.  The  development  of  e-business  services  for  perishable  commodity
marketplaces  has been  temporarily  suspended  pending  further  review  of the
business  opportunities  in this area.  Aucxis  continues to maintain a "staging
environment" for testing and further research and development.

Highlights of the Quarter

Revenue for the three months ended March 31, 2002 was  $1,308,512 as compared to
$1,966,17 in the same period in 2001. Gross margin improved by 5% to 55% for the
three  months  ended  March 31,  2002 as compared to 50% in the same period last
year.

Both the  decrease  in the revenue and the  improvement  in gross  profit were a
direct result of managements'  decision to discontinue its financial support for
the loss making Palm Automatisering  (Aucxis Business Solutions "ABS") and Nieaf
companies. ABS had continued to consume shareholder funds within a business that
no longer forms part of Aucxis' refocused business  strategy.  Aucxis was unable
to extract Nieaf from the Kwatrobox failure in spite of the fact that it did fit
with the overall strategy.  The assets of Nieaf were purchased from the receiver
in partnership with the two largest flower auctions in the Netherlands.  This is
now operating as ATS Holland B.V.

Revenue for the quarter  ended March 31, 2002 was driven  entirely by  continued
growth in the  installation  of auction clock systems through ATS. ATS continues
to derive


                                        3
<PAGE>

its revenues from the  development and  installation  of clock systems,  cooling
installations and associated maintenance contracts for auction halls.

Selling, general and administrative expense for the three months ended March 31,
2002 was $788,605 as compared to $2,423,923  for the  corresponding  three-month
period in 2001.  This  decrease  of almost  70% is  directly  attributed  to the
Company's cost management  initiatives including the elimination of the expenses
of Palm  and  Nieaf  from the  consolidated  financial  statements  due to their
bankruptcy last year. As I-Three is essentially inactive,  virtually no expenses
were  incurred  in this  subsidiary.  There has been no change in the  number of
employees as at March 31, 2002 in Belgium. The remaining two full-time employees
in Toronto completed their notice periods in the quarter leaving the head office
staff to consist of two  contract  executives  and one  contract  advisor to the
Company. As part of the Company's cost management initiatives all accounting and
administration  functions  are  provided  on an "as  needed"  basis by a company
controlled by the CFO, thus eliminating the need for permanent staff.

Depreciation and amortization  expense for the three months ended March 31, 2002
was down almost 90% from the same three-month period last year. This decrease is
the result of write-offs in the prior year of goodwill,  acquired  workforce and
acquired core  technology.  All goodwill,  acquired  workforce and acquired core
technology  was  written  off for  I-three.  Goodwill  related to the  Kwatrobox
acquisition was written off as a result of the voluntary bankruptcy of Kwatrobox
and its  subsidiaries,  declared on September  19, 2001 by Nieaf,  September 26,
2001 by Aucxis Business Solutions and October 3, 2001 by Kwatrobox. In addition,
the net carrying value of goodwill related to the acquisition of ATS was written
down as the Company no longer considered the carrying amount of this goodwill to
represent  the amount by which the fair value of ATS  exceeds  the fair value of
the its net  identifiable  assets.  During this quarter the only remaining items
subject to  depreciation  were the ATS acquired core  technology and the capital
assets of the Company.

Research and development costs were $0 for the three months ended March 31, 2002
as compared to $415,265 for the three  months ended March 31, 2001,  as a result
in part to the temporary suspension of development of the Collateral  Management
Utility  and  elimination  of  the  operations  of  Kwatrobox  and  some  of its
subsidiaries due to their bankruptcy last year.

The loss for the three  months  ended March 31, 2002 was $292,511 as compared to
$2,436,170  for  the  three  months  ended  March  31,  2001.  This  significant
improvement is attributed to the Company's ongoing cost management initiatives.

Management is continuing its revenue  enhancing and cost management  initiatives
while  simultaneously  exploring  various  strategic  options  for  the  Company
including  business  combinations and joint ventures with other companies in the
perishable goods marketplace.  The concentration of development on ATS, a wholly
owned subsidiary, is justified by the continuing capture of new business and the
further  consolidation  of ATS' leadership as the premier supplier of electronic
trading systems to perishable  agriculture and fish trading  world-wide.  During
the three  months  ended  March 31,  2002 ATS has been  successful  in  securing
significant trading system and maintenance contracts.

Liquidity and Capital Resources

As at March 31,  2002,  the  Company had a cash  balance of  $329,324  for a net
increase of $19,000 from the cash balance on December 31, 2001. This increase is
mainly  due to  additional  borrowing  offset  by  the  purchase  of  additional
equipment (approximately $1,400) and $2,000 utilized in operations.


                                        4
<PAGE>

Aucxis' consolidated  financial statements are prepared on a going concern basis
which  assumes  that the  Company  will  realize  its assets and  discharge  its
liabilities  in the normal course of business.  The projected cash flows for the
Company are based upon  assumptions  that  include,  amongst  others,  increased
growth  within ATS and the  success of future  external  financing  initiatives.
Management  is  examining  a variety of options to raise  additional  financing,
including but not limited to,  consideration of merging  operations with another
company.  In June of 2002, the Company was successful in raising $375,000 in the
form of a convertible loan for working capital to be utilized at the head office
level and at the level of its  Belgian  subsidiaries  Aucxis NV and ATS, if need
be.  Aucxis  is  continuing  its  revenue   enhancement   and  cost   management
initiatives, including working with creditors regarding outstanding payables and
decreasing  operating costs. 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.


                                        5
<PAGE>

PART II - OTHER INFORMATION

Item 1.    Legal Proceedings

Mr. Schelfhout and Mrs. De Laet, the former owners of the Company's  subsidiary,
ATS  (formerly  Schelfhout  Computer  Systemen  N.V.),  sought  to  enforce  the
mandatory  redemption  feature  related  to the first  share  payment  totalling
454,545 of the Company's shares,  which had been released under the terms of the
purchase  agreement  between the Company and ATX  described  in Note 4(a) to the
Notes to  Financial  Statements,  on the basis that these  shares  were not free
trading at the time of release as  contemplated in the purchase  agreement.  The
former owners of ATS, at the time both  directors of the  Company's  subsidiary,
brought an action  against the Company to enforce a pledge on the shares of ATS,
which was provided to secure the  obligations  of the Company under the purchase
agreement.  This action was heard by a Belgian  court which  granted a remedy to
the former  owners of the  subsidiary  which allowed them to re-acquire a 7 1/2%
interest in the  subsidiary  from the Company in exchange  for the  transfer for
cancellation  of the first  payment  of  454,545  shares of the  Company in full
satisfaction  of the Company's  obligations in relation to such shares under the
agreement.  No further  action has been taken with respect to the second payment
of 454,545 shares released on January 10, 2001.

On  March  29,  2002  Mr.  Schelfhout  and  Mrs.  De Laet  brought  an ex  parte
application   before  Court  of  Dendermonde   (Belgium),   which  granted  them
authorization  to apply a restraint order to a portion of the ATS shares held by
Aucxis NV (Belgium).  The restraint order was  effectively  applied on that same
date with a view to securing  the alleged  damages that may be due in respect of
the arbitration proceedings.  On April 29, 2002 Aucxis NV (Belgium) appealed the
said  authorization  and restraint  order,  which it also believes to be without
merit,  before  the  Court of  Dendermonde  (Belgium),  in which  proceedings  a
decision is expected by the end of September 2002.

On  April  16,  2002,  Mr.  Schelfhout  and Mrs.  De Laet  filed a  request  for
arbitration  against Aucxis NV (Belgium) and the Company.  The plaintiffs allege
that the  Company  and Aucxis NV  (Belgium)  deliberately  committed a number of
misrepresentations  both prior to and subsequent to the closing of the ATS share
purchase  agreement.  They have alleged damages of up to USD 1,190,309 for which
they seek to be  compensated  by  Aucxis NV  (Belgium)  and the  Company.  These
proceedings  are  presently in their  initial  stages and are not expected to be
resolved before the end of the fiscal year.  Management  believes that the claim
brought  against  Aucxis NV (Belgium) and itself is without merit and intends to
vigorously defend both itself and Aucxis NV (Belgium).

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.

On May 14, 2002 Aucxis NV (Belgium) brought an action against Mr. Schelfhout and
Mrs.  De Laet  before the Court of  Dendermonde  (Belgium)  relating  to certain
irregularities  in the deletion of a  non-compete  clause from ATS'  articles of
association.

The two  latter  proceedings  are both  currently  in their  initial  stages and
decisions are not expected before the end of the fiscal year.


                                        6
<PAGE>

In June 2002, the Company  received  notice that Parody Group Ltd. and Seabreeze
Services  Ltd.  (the  "plaintiffs")  commenced an action in the Supreme Court of
British  Columbia  naming Aucxis  Corp.,  and five other  defendants,  including
Aucxis Corp. (Canada) the Company's non-operating subsidiary, relating to a loan
by the  plaintiffs in the amount of $700,000.  The  plaintiffs are claiming that
the loan was not properly  repaid to them.  Management  believes  that the claim
brought  against the Company and its  Ontario  subsidiary  is without  merit and
intends to vigorously defend both itself and Aucxis Corp (Canada).

Management  does not expect that any impact  resulting from the above  mentioned
proceedings will have a material effect on the Company.

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

At an extraordinary general meeting of the shareholders of ATS held on March 27,
2002,  the Board of Directors of ATS was  restructured,  appointing as directors
Mr. Lewis  Reinders,  a director of Aucxis  Corp.,  and Mr. Neil  Murphy,  Chief
Operating  Officer of Aucxis Corp.  Mrs. Hilde De Laet was removed as a director
of ATS. On March 26, 2002, Mr.  Schelfhout  tendered his resignation as Managing
Director of ATS to the Board of ATS.  The new Board of Directors of ATS held its
first board  meeting on April 30,  2002,  at which time the board  accepted  Mr.
Schelfhout's   resignation.   ATS  held  an  extraordinary  general  meeting  of
shareholders  on June 14,  2002 at which time Mr.  Schelfhout  was  removed as a
director of ATS and two new  directors  were  appointed,  Mr Geert Vonck and Mr.
Nicholas  Saphir.  Mr.  Murphy  will act as  Chairman  of the Board and  Interim
Day-to-Day  Manager of ATS  supported  by Mr.  Geert  Vonck,  who is the current
Assistant Managing Director of ATS and Mr. Patrick Catthoor,  Manager, Technical
Department.

In June 2002, the Company obtained  $375,000 in new funding by the completion of
a  convertible  loan  transaction  with  three  lenders.  The  convertible  loan
essentially provides a bridge facility for working capital purposes, both at the
head  office  level and at the level of the Belgian  subsidiaries  Aucxis NV and
ATS.  The  convertible  loan bears  interest at a rate of 12.5% per annum.  Both
principal  and interest are due to be repaid in a lump sum on December 31, 2002.
The principal and interest outstanding are convertible into common shares of the
Company at a  conversion  rate of $0.01 per share at the  option of the  lenders
anytime  prior to  repayment.  The  Company  may repay the  convertible  loan at
anytime  without penalty subject to the right of the lenders to convert the loan
into common shares prior to  repayment.  Initially all of the loan proceeds were
placed in escrow  with an  escrow  agent,  subject  to being  drawn  down by the
Company  when funds are  required.  Funds not drawn down are subject to interest
payment but are not  entitled to be converted  into shares.  As security for the
repayment of the convertible  loan, Aucxis NV (Belgium) has pledged its interest
in the shares of ATS to the three lenders on a without prejudice basis regarding
the rights  which Mr  Schelfhout  and Mrs De Laet could  derive  from the pledge
granted  to them on  execution  of the  ATS  purchase  agreement  and  from  the
restraint  orders  applied by them to the ATS shares held by Aucxis NV (Belgium)
on July 17, 2001 and March 29, 2002. Aucxis is pursuing  additional  funding and
until such funding is received,  there is no certainty  that the Company will be
able to fulfill its obligation under the convertible loan.


                                        7
<PAGE>

Item 6.    Exhibits And Reports On Form 8-K

         (a)      Exhibits.

      Exhibit #        Exhibit name

      10.1             Form of Convertible Bridge Loan Agreement dated April 16,
                       2002  among  Aucxis  Corp.,  as  borrower,  and ABN  AMRO
                       Capital (Belgium) NV, Bodin Saphir Pension Scheme, Magnum
                       Technology Ltd., J.J.  Mennillo,  as lenders,  and Aucxis
                       NV, as Pledgor.

      10.2             Form of Pledge Agreement dated April 2, 2002 among Aucxis
                       NV, as Pledgor,  and ABN AMRO Capital (Belgium) NV, Bodin
                       Saphir  Pension  Scheme,  Magnum  Technology  Ltd.,  J.J.
                       Mennillo, as pledgees.

      10.3             Form of Escrow Agreement dated April 2, 2002 among Aucxis
                       Corp.,  ABN  AMRO  Capital  (Belgium)  NV,  Bodin  Saphir
                       Pension Scheme, Magnum Technology Ltd., J.J. Mennillo and
                       Blake, Cassels & Graydon LLP, as escrow agent.

         (b)      Reports on Form 8-K

         The Company did not file any reports on Form 8-K during the quarter
ended March 31, 2002.


                                        8
<PAGE>

                                   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 28, 2002                         Aucxis Corp.
                                             (Registrant)


                                             By:  /s/ Dennis E. Petke
                                                  -------------------
                                                  Dennis E. Petke,
                                                  Chief Financial Officer
                                                  (duly authorized officer)


                                        9