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UNITED STATESSECURITIES
AND EXCHANGE COMMISSIONWashington, D.C.
20549_________________

FORM 10-QSB

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

For the quarterly period ended **September 30, 2005**

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

0-9040Commission file number

AUXCIS CORP.(Exact name of
small business issuer as specified in its charter)

Nevada(State or other jurisdiction)

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

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

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

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

Check whether the issuer:

(1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and

(2) has been subject to such filing requirements for the past
  90 days. Yes [ x ] No [   ]

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

Indicate by check mark whether the registrant is a shell corporation
  (as defined in Rule 12b-2 of the Exchange Act) Yes [ x ] No [   ]

As of January 27, 2006 there were 62,773,051 shares of the Registrant's
  common stock, par value $0.001 per share outstanding.

Transitional Small Business Disclosure Format (check one);

Yes [   ] No [ x ]

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AUCXISCORP.

FORM 10-QSB

INDEX

|PART I. FINANCIAL INFORMATION                                                                                        | Page
|-------------------------------------------------------------------------------------------------------------------- | ----
|                                                                                                                     |     
|Item 1. Financial Statements                                                                                         | 3   
|                                                                                                                     |     
|Consolidated
      Balance Sheets at September 30, 2005 (Unaudited) and December 31, 2004 (Audited)                  | 5   
|                                                                                                                     |     
|Consolidated
      Statements of Operations (Unaudited) for the three months ended September
      30, 2005 and 2004 | 6   
|                                                                                                                     |     
|Consolidated
      Statements of Cash Flows (Unaudited) for the three months ended September
      30, 2005 and 2004 | 7   
|                                                                                                                     |     
|Notes to
      Consolidated Financial Statements                                                                     | 8   
|                                                                                                                     |     
|Item 2. Managements Discussion and
      Analysis of Financial Condition and Results of Operations                  | 12  
|                                                                                                                     |     
|Item 3. Controls and Procedures                                                                                      | 15  
|                                                                                                                     |     
|PART II. OTHER INFORMATION                                                                                           | 15  
|                                                                                                                     |     
|Item 4. Legal Proceedings                                                                                            | 15  
|                                                                                                                     |     
|Item 5: Subsequent Events                                                                                            | 15  
|                                                                                                                     |     
|Item 6. Exhibits and Reports on Form 8-K                                                                             | 15  
|                                                                                                                     |     
|Signatures                                                                                                           | 16  

2

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ITEM 1. Financial StatementsAucxis Corp.(a Nevada
Corporation)

Consolidated Financial Statements
  (Unaudited)
  September 30, 2005
  (expressed in U.S. dollars)

3

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|                                 
|---------------------------------
|AUCXIS CORP.                     
|CONSOLIDATED FINANCIAL STATEMENTS
|SEPTEMBER 30, 2005               
|(Unaudited)                      
|                                 

4

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

|                                                     |   | September 30, |   |   | December 31, |  
|---------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                     |   | 2005          |   |   | 2004         |  
|                                                     |   | (Unaudited)   |   |   | (Audited)    |  
|                                                     |   |               |   |   |              |  
|ASSETS                                               |   |               |   |   |              |  
|                                                     |   |               |   |   |              |  
|CURRENT ASSETS                                       |   |               |   |   |              |  
|Cash and equivalents                                 | $ | 58,761        |   | $ | 402          |  
|Amounts receivable                                   |   | 3,090         |   |   | 1,304        |  
|Investment (Note 3)                                  |   | 170,750       |   |   | -            |  
|Total Assets                                         | $ | 232,601       |   | $ | 1,706        |  
|                                                     |   |               |   |   |              |  
|LIABILITIES                                          |   |               |   |   |              |  
|                                                     |   |               |   |   |              |  
|CURRENT LIABILITIES                                  |   |               |   |   |              |  
|Accounts payable (Note 4)                            | $ | 114,023       |   | $ | 780,849      |  
|Accrued liabilities                                  |   | 56,903        |   |   | 64,886       |  
|Due to unrelated parties (Note 7)                    |   | 551,540       |   |   | 624,412      |  
|Convertible debt (Note 5)                            |   | -             |   |   | 471,525      |  
|Total Current Liabilities                            |   | 722,466       |   |   | 1,941,672    |  
|Mandatory Redeemable Shares of Common Stock (Note 6) |   | -             |   |   | 4,215,914    |  
|Total Liabilities                                    |   | 722,466       |   |   | 6,157,586    |  
|                                                     |   |               |   |   |              |  
|                                                     |   |               |   |   |              |  
|STOCKHOLDERS 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               |   | 580,933       |   |   | 494,631      |  
|Deficit                                              |   | (19,869,771   | ) |   | (25,449,484  | )
|Total Stockholders Deficit                          |   | (489,865      | ) |   | (6,155,880   | )
|Total Liabilities and Stockholders Deficit          | $ | 232,601       |   | $ | 1,706        |  

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

5

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|AUCXIS CORP.                                                               
|---------------------------------------------------------------------------
|                                                                           
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
      INCOME (LOSS)
|                                                                           
|(Expressed in U.S. dollars)                                                
|                                                                           
|(Unaudited)                                                                

Three months
      
      
      Three months
      
      
      Nine months
      
      
      Nine monthsended
      
      
      ended
      
      
      ended
      
      
      endedSeptember 30,
      
      
      September 30,
      
      
      September 30,
      
      
      September 30,2005
      
      
      2004
      
      
      2005
      
      
      2004Revenue
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -Selling, general and administrative expense
      
      29,616
      
      
      36,931
      
      
      79,541
      
      
      118,765Depreciation and amortization expense
      
      -
      
      
      1,401
      
      
      -
      
      
      4,992Total operating expenses
      
      29,616
      
      
      38,332
      
      
      79,541
      
      
      123,757Operating income (loss)
      
      (29,616
      )
      
      (38,332
      )
      
      (79,541
      )
      
      (123,757
      )Legal settlement (Note 8)
      
      -
      
      
      -
      
      
      (616,898
      )
      
      -Investment income
      
      8,307
      
      
      -
      
      
      8,307
      
      
      -Recovery of advances (Note 9)
      
      -
      
      
      -
      
      
      1,888,571
      
      
      -Gain on debt settlements
      
      103,772
      
      
      -
      
      
      163,360
      
      
      -Gain on cancellation of mandatoryredeemable shares (Note 6)
      
      -
      
      
      -
      
      
      4,215,914
      
      
      -Net income (loss) for the period (Note 10)
      $
      82,463
      
      $
      (38,332
      )
      $
      5,579,713
      
      $
      (123,757
      )Basis and diluted income (loss) per share
      $
      0.00
      
      $
      (0.00
      )
      $
      0.09
      
      $
      (0.00
      )Net income (loss) for the period
      $
      82,463
      
      $
      (38,332
      )
      $
      5,579,713
      
      $
      (123,757
      )Foreign currency translation adjustments
      
      (6,838
      )
      
      (78,590
      )
      
      86,302
      
      
      60,994Comprehensive income (loss)
      $
      75,625
      
      $
      (116,992
      )
      $
      5,666,015
      
      $
      (62,763
      )Common shares used in computingbasic earnings per share
      
      62,773,051
      
      
      62,773,051
      
      
      62,773,051
      
      
      62,773,051Common shares used in computingdiluted earnings per share
      
      62,773,051
      
      
      62,773,051
      
      
      62,773,051
      
      
      62,773,051


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

6

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

|NINE MONTHS ENDED
      SEPTEMBER 30                                            |   | 2005       |   |   | 2004    |  
|------------------------------------------------------------------------------- | - | ---------- | - | - | ------- | -
|                                                                                |   |            |   |   |         |  
|                                                                                |   |            |   |   |         |  
|OPERATING ACTIVITIES                                                            |   |            |   |   |         |  
|Net income (loss) for the period                                                | $ | 5,579,713  |   | $ | (85,425 | )
|Adjustment to reconcile net loss to net cash used in operating
      activities |   |            |   |   |         |  
|Depreciation                                                                    |   | -          |   |   | 4,447   |  
|Gain on cancellation of mandatory
      redeemable shares                       |   | (4,215,914 | ) |   | -       |  
|Gain on debt
      settlement                                                   |   | 163,360    |   |   | -       |  
|Change in operating assets and liabilities                                      |   |            |   |   |         |  
|Amounts receivable                                                              |   | (1,785     | ) |   | 9,213   |  
|Accounts payable and accrued
      liabilities                                  |   | (838,169   | ) |   | 15,110  |  
|                                                                                |   |            |   |   |         |  
|CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                 |   | 687,205    |   |   | (56,655 | )
|                                                                                |   |            |   |   |         |  
|CASH USED IN INVESTING ACTIVITIES                                               |   |            |   |   |         |  
|Subscription for marketable securities                                          |   | (170,750   | ) |   | -       |  
|                                                                                |   |            |   |   |         |  
|CASH USED IN INVESTING ACTIVITIES                                               |   | (170,750   | ) |   | -       |  
|                                                                                |   |            |   |   |         |  
|FINANCING ACTIVITIES                                                            |   |            |   |   |         |  
|Repayment of convertible debt                                                   |   | (471,525   | ) |   | -       |  
|                                                                                |   |            |   |   |         |  
|CASH USED IN FINANCING ACTIVITIES                                               |   | (471,525   | ) |   | -       |  
|                                                                                |   |            |   |   |         |  
|                                                                                |   |            |   |   |         |  
|EFFECT OF EXCHANGE RATE CHANGES ON CASH AND                                     |   |            |   |   |         |  
|CASH EQUIVALENTS                                                                |   | 13,429     |   |   | 40,426  |  
|                                                                                |   |            |   |   |         |  
|CHANGE IN CASH AND CASH EQUIVALENTS                                             |   | 58,359     |   |   | (16,229 | )
|                                                                                |   |            |   |   |         |  
|CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD                                   |   | 402        |   |   | 19,724  |  
|                                                                                |   |            |   |   |         |  
|CASH AND CASH EQUIVALENTS END OF PERIOD                                         | $ | 58,761     |   | $ | 3,495   |  
|                                                                                |   |            |   |   |         |  
|Non-cash investing and financing activities                                     | $ | -          |   | $ | -       |  
|                                                                                |   |            |   |   |         |  
|Supplemental disclosures                                                        |   |            |   |   |         |  
|Interest
      paid                                                             | $ | 96,525     |   | $ | 18,274  |  
|Income taxes paid                                                               | $ | -          |   | $ | -       |  

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

7

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|AUCXIS CORP.                                          
|------------------------------------------------------
|                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS        
|                                                      
|(Expressed in U.S.
      dollars)                     
|                                                      
|NINE MONTHS ENDED
      SEPTEMBER 30, 2005 (Unaudited)

|1. | BASIS OF PRESENTATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | These unaudited interim consolidated financial
        statements of Aucxis Corp. have been prepared by the Company in accordance
        with the instructions to Form 10-QSB, and accordingly, they do not include
        all of the information and footnotes required by accounting principles
        generally accepted in the United States for complete financial statements.
        In the opinion of management, all adjustments (consisting of items of
        a normal recurring nature) considered necessary for a fair presentation
        have been included. Operating results for the nine months ended September
        30, 2005 are not necessarily indicative of the results that may be expected
        for the year ending December 31, 2005. These consolidated financial statements
        should be read in conjunction with the audited consolidated financial
        statements and notes thereto included in the Companys Annual Report
        on Form 10-KSB for the year ended December 31, 2004. The year-end balance
        sheet was derived from the audited consolidated financial statements but
        does not include all disclosures required by generally accepted accounting
        principles.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The preparation of financial statements in
        conformity with accounting principles generally accepted in the United
        States requires management to make estimates and assumptions that affect
        the amounts reported in the financial statements and accompanying notes.
        The actual results experienced by the Company may differ from managements
        estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | These consolidated financial statements include
        the accounts of the Company and its wholly owned subsidiaries. All intercompany
        transactions and balances have been eliminated in consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|

8

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|AUCXIS CORP.                                          
|------------------------------------------------------
|                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS        
|                                                      
|(Expressed in U.S.
      dollars)                     
|                                                      
|NINE MONTHS ENDED
      SEPTEMBER 30, 2005 (Unaudited)

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING
      POLICIES (continued)
|-- | ------------------------------------------------------------
|   |                                                             
|   |                                                             
|
|
|
|
|
|
|
|
|
|
|
|   |                                                             
|   |                                                             
|
|
|   |                                                             
|   |                                                             
|
|
|   |                                                             
|   |                                                             
|3. | INVESTMENT                                                  

| |                                                                   |  | September 30 |  |   | December 31 | 
| | ----------------------------------------------------------------- |  | ------------ |  | - | ----------- | 
| |                                                                   |  | 2005         |  |   | 2004        | 
| |                                                                   |  |              |  |   |             | 
| |                                                                   |  |              |  |   |             | 
| | Subscription in common shares of TransAmerican
      Energy Corp. |  | 170,750      |  | $ | -           | 

During the three months ended September
  30, 2005, the Companys board approved the participation in a private placement
  of TransAmerican Energy Corp., a company listed on the TSX-V Exchange in Canada
  of which the Chief Financial Officer (CFO) is an officer. The Company
  purchased 800,000 units at CAD$0.25 per unit for a total subscription of $170,750
  (CAD$200,000). On October 12, 2005 the private placement was closed and the
  Company was issued 800,000 common shares and 800,000 share purchase warrants,
  where each warrant allows the Company to purchase one common share for CAD$0.35
  for one year. The shares are restricted from trading for four months from the
  date of their issuance.

|4. | RELATED PARTY TRANSACTIONS
|-- | --------------------------
|   |                           
|   | a)                        
|   |                           
|   | b)                        
|   |                           
|   | c)                        
|   |                           
|   | d)                        

9

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|AUCXIS CORP.                                          
|------------------------------------------------------
|                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS        
|                                                      
|(Expressed in U.S.
      dollars)                     
|                                                      
|NINE MONTHS ENDED
      SEPTEMBER 30, 2005 (Unaudited)

|5. | CONVERTIBLE DEBT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | On April 16, 2002, the Company and three lenders, ABN
        Capital (Belgium) NV, Bodin Saphir Pension Scheme, and J.J. Mennillo,
        entered into a Convertible Bridge Loan Agreement for $125,000 each, representing
        an aggregate loan by the lenders to the Company of $375,000. The loan
        bore interest at a rate of 12.5% per annum, which accrued until the loan
        was repaid or converted to shares. Subject to certain terms and conditions
        of this agreement, which were never met, each of the lenders were entitled
        to convert only such amounts as have been drawn down from its respective
        part of the principal of the loan into shares at $.01 per share. At December
        31, 2004 $96,525 of interest had been accrued and was included in the
        loan balance. The entire loan was drawn down and was due to be repaid
        or converted on December 31, 2002. Since the repayment date has passed,
        the loan has been classified as a current liability.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | On January 11, 2005 the entire balance was repaid to
        the lenders from the funds received from Aucxis Corp (Belgium) NV (Aucxis
        NV). (See note 8).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|6. | MANDATORY REDEEMABLE SHARES OF COMMON STOCK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | On January 10, 2000, the Company completed and closed
        the purchase of 100% of the issued and outstanding shares of Aucxis Trading
        Solutions NV (ATS). The Company, through its subsidiary Aucxis
        NV, 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. The Company accreted $938,000 and $243,817 to the mandatory redeemable
        shares of common stock during the years ended December 31, 2000 and 2001,
        respectively. The accretions were recorded under a straight-line assumption
        based on a two-year amortization.          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The terms of the purchase agreement also provided the
        vendors with a put feature, which allowed the vendors to sell the shares
        back to the Company at $1.65 per share at the time of release if they
        were not freely tradable. Since the 3,636,364 shares issued to the vendors
        were subject to a put feature, which is beyond the Companys direct
        control, they were classified as mandatory redeemable shares of common
        stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | 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. Under the time release
        formula, 454,545 shares were 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.
        The first 454,545 shares were not free trading on July 10, 2000, the first
        anniversary date of the acquisition and during 2002 the vendors sought
        to exercise their right to retract 909,090 shares, representing the first
        two tranches under the time release agreement, on the basis that they
        were not free trading on their respective release dates.                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | During the year ended December 31, 2003, the Company
        finalized the disposition of a 7.5% interest in ATS pursuant to a court
        order allowing the former owners of ATS to reacquire a 7.5% interest in
        exchange for the transfer for cancellation of the first tranche of 454,545
        shares. Accordingly, the Company reduced the mandatory redeemable shares
        of common stock by $602,267 (454,545 shares), increased its non-controlling
        interest by $59,972, representing the carrying amount of the portion of
        ATS disposed of and recognized a gain on cancellation of mandatory redeemable
        common shares for the balance of $542,295.                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | During the three months ended June 30, 2005, the mandatory
        redeemable shares were returned to treasury as part of the settlement
        with the vendors of ATS and the Company has recorded a gain on cancellation
        of mandatory redeemable shares of common stock of $4,215,914. Since the
        Company has substantial tax loss carry forwards there is no income tax
        effect for this transaction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

10

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|AUCXIS CORP.                                          
|------------------------------------------------------
|                                                      
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS        
|                                                      
|(Expressed in U.S.
      dollars)                     
|                                                      
|NINE MONTHS ENDED
      SEPTEMBER 30, 2005 (Unaudited)

|7.  | DUE TO UNRELATED PARTIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The amount due is denominated in Euros (Euro 457,780),
        interest free and are due to the former share holders of Kwatrobox BV,
        a former subsidiary of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|8.  | LEGAL SETTLEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The terms of the settlement with the former owners of
        ATS included a one-time cash payment of $538,015 (EUR 409,230) and payment
        to the former owners 50% of the $78,883 (EUR 60,000) CEPINA deposit. CEPINA
        was the arbitration panel that was engaged in the prior year to assist
        in settling the legal disputes between the Company and the former owners.
        In return for the settlement proceeds, the former owners agreed to drop
        all claims against the Company and to return 3,636,364 shares of the Companys
        common stock held in certificates in the names of the former owners of
        ATS. Once the CEPINA fee dispute is resolved, CEPINA will return to the
        Company any excess funds relating to the Companys 50% of the CEPINA
        deposit. However since management is unable to determine the likelihood
        or the amount of the settlement that will be returned, the Company expensed
        its 50% portion as part of the legal settlement expense.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|9.  | RECOVERY OF ADVANCES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | In January 2005, the Company recovered $1,888,571 in
        advances that it had made to Aucxis NV to purchase ATS and to finance
        ATSs operations. The advances amounted to $9,250,000 and were written
        off in full during prior years. Aucxis NV repaid the advances from proceeds
        from the sale of its subsidiary ATS. Since the Company has substantial
        tax loss carry forwards there is no income tax effect for this transaction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|10. | TAXATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | The Company has incurred operating losses of approximately
        $12 million which, if unutilized, will expire through 2025. Management
        believes that the realization of the benefits from these deferred tax
        assets appears uncertain due to the Company's limited profitable operating
        history. Accordingly a full, deferred tax asset valuation allowance has
        been applied and no deferred tax asset benefit has been recorded. The
        Company has not recorded a tax provision for the current period as sufficient
        tax loss carry forwards are available to offset any income which may be
        subject to income taxes.                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|11. | SUBSEQUENT EVENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | On October 12, 2005 the private placement in TransAmerican
        Energy Corp. closed and Aucxis was issued 800,000 common shares and 800,000
        share purchase warrants, which enable Aucxis to purchase one common share
        for CAD$0.35 for one year. The shares are restricted from trading for
        four months from the date of issuance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

11

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|**Item 2.** | Management's Discussion and Analysis of
      Financial Condition and Results of Operations
|----------- | -------------------------------------------------------------------------------------------

When used herein, the words may, will, expect,
anticipate, continue, estimate, project, intend, plan and similar
expressions are intended to identify forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended,
regarding events, conditions and financial trends that may affect the Company's
future plans of operations, business strategy, operating results and financial
position. All statements, other than statements of historical facts, included or
incorporated by reference in this Form 10-QSB which address activities, events
or developments which the Company expects or anticipates will or may occur in
the future, including such things as future capital expenditures (including the
amount and nature thereof), business strategy, expansion and growth of the
Companys business and operations, and other such matters are forward-looking
statements. These statements are based on certain assumptions and analyses made
by the Company in light of its experience and its perception of historical
trends, current conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. Such statements are
not guarantees of future performance and are subject to risks and significant
uncertainties and that actual results may differ materially from those included
within the forward-looking statements as a result of various factors. The
occurrence of any unanticipated events may cause actual results to differ from
those expressed or implied by the forward-looking statements contained herein.
You are cautioned not to place undue reliance on these statements, which speak
only as of the date of this report.

Overview

Aucxis Corp. (Aucxis or the Company) was originally
incorporated in Nevada, USA 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 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 had a wholly owned subsidiary,
e-Auction (Barbados), which in turn had one wholly owned subsidiary, Aucxis
Corp. (Canada). Both of these companies are inactive and have not conducted any
active business from inception to date that the current management is aware
of.

The Company also owns directly but no longer controls Aucxis
Corp. (Belgium) (Aucxis NV). On April 11, 2003 Aucxis NV, voluntarily filed
for bankruptcy. A trustee in bankruptcy had been entrusted with Aucxis NVs
management and the realization of its assets for the benefit of its creditors.
Accordingly, the Company ceased consolidating the operations of Aucxis NV
effective April 11, 2003.

On May 28, 2004, the Company reached a settlement with the
former owners of the Companys subsidiary, ATS, with regard to all disputes and
claims alleged against the company by the former owners of ATS. The former
owners of ATS agreed to withdraw all claims against the Company in exchange for
a portion of the proceeds received by Aucxis upon the eventual sale of ATS and a
withdrawal by Aucxis of any claims against the former owners. The Commercial
Court of Dendermonde of Belgium granted its approval of the settlement on June
23, 2004.

On October 29, 2004, the Company announced that it had received
confirmation from its Belgium counsel that the bankruptcy trustee had finalized
the sale of its 92.5% ownership in Aucxis Trading Solutions, N.V. (ATS)
(formerly Schelfhout Computer Systemen N.V.), a Belgium company. The sale was
finalized in late 2004 and the Aucxis proceeds were received in January
2005.

During the quarter ended September 30, 2005, Management
continued to negotiate settlements with outstanding unsecured creditors. It has
been successful to date in settling claims with many of the creditors. Without
favourable settlements with its creditors, the Company will be unable to solicit
financing or become self-sustaining.

Aucxis Corp. currently has no business operations aside from
  maintaining its listing on the exchange. However, the management is actively
  seeking new business opportunities.

12

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Highlights of the Quarter

RevenuesEffective April 11, 2003, the Company had
voluntarily relinquished control of Aucxis NV to a bankruptcy trustee and,
accordingly, had deconsolidated the subsidiary and ceased consolidating the
operations of ATS. As a result, with no other active operation, there has been
no revenue to report for the current quarter or for the same quarter last year.

ExpensesSelling, general and administrative expenses
for the quarter ended September 30, 2005 were $29,616 compared to $36,931 for
the same quarter in 2004. Lower expenses were largely a result of reduced
consulting fees (2005: $12,460 vs. 2004: $25,039) payable to Q4 Financial Group
Inc., a company controlled by an officer.

Other expenses incurred this quarter were rent ($2,156),
director fees ($2,077), accounting and audit fees ($2,326). These expenses are
consistent with prior quarters.

Depreciation and amortization expense for the three months
ended September 30, 2005 was nil, compared to $1,401 for the same period last
year. This was due to the write off of property and equipment in the fourth
quarter of the prior year.

Interest expense was nil this quarter compared to the same
quarter last year as the loans were fully repaid in January 2005 and no interest
has been accrued since the quarter ended June 30, 2004 when the settlement was
reached with Schelfout.

Net Income (Loss)Net income for the three months
ended September 30, 2005 was $82,463 compared to a loss of $38,332 for the three
months ended September 30, 2004 mainly due to $103,772 in debt write-offs and
debt settlements. During the quarter the Company earned $8,307 in fees and
interest related to a short-term loan of to a private company operating in
British Columbia, Canada.

During the quarter management discussed a change in the
Companys business plan of direct involvement in the resources industry. A full
change in business plan will require shareholder approval and is expected to be
obtained at the next Annual General Meeting. During the three months ended
September 30, 2005, the Company participated in a private placement of
TransAmerican Energy Corp., a junior oil and gas company listed on the TSX
Venture Exchange in Canada for a total investment of $170,750 (CAD$200,000). On
October 12, 2005 TransAmerican Energy Corp. (TSXV:TAE) completed its private
placement and Aucxis was issued 800,000 common shares and 800,000 share purchase
warrants, which enable Aucxis to purchase one common share for CAD$0.35 for one
year. The shares are restricted from trading for four months from the date of
issuance.

Liquidity and Capital Resources

The Company has not generated revenues since becoming inactive
  and has never paid any dividends and is unlikely to pay dividends or generate
  earnings in the immediate or foreseeable future. The continuation of the Company
  as a going concern is dependent upon the continued financial support from its
  shareholders, the ability of the Company to obtain necessary equity financing
  to continue operations and the attainment of profitable operations. As at September
  30, 2005, the Company had a working capital deficiency of $489,865 (December
  30, 2004 - $1,939,966) and has accumulated losses of $19,869,771 since inception.
  The corresponding financial statements do not include any adjustments to the
  recoverability and classification of recorded asset amounts and classification
  of liabilities that might be necessary should the Company be unable to continue
  as a going concern. These factors raise substantial doubt regarding the Companys
  ability to continue as a going concern. Management is considering various revenue
  and cost management alternatives and is examining a variety of options to re-organize
  the Company. It is not possible at this time to predict with any assurance the
  success of these initiatives.

13

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Critical Accounting Policies

We have identified the policies below as critical to our business operations and the understanding of our results of operations. The impact and any associated risks related to these policies on our business operations is normally discussed
throughout Managements Discussion and Analysis of Financial Condition and Results of Operations where such policies affect our reported and expected financial results. For a detailed discussion on the application of the Companys other
accounting policies, see Note 2 in the Notes to the Consolidated Financial Statements as at December 31, 2004.

Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting period. There can be no assurance that actual results will not differ from
those estimates.

Foreign currency translation. The Companys function currency is the Canadian dollar. SFAS No. 52 Foreign Currency Translation requires the use of the current rate method to translate the Companys financial statements
into U.S. dollars. Under the current rate method, all assets and liabilities are translated at the period-end rate, while equity accounts are translated at the historical rate. Revenue and expenses are translated at the weighted average rate for the
period. Translation gains/losses is reported as a component of accumulated other comprehensive income. Foreign currency transaction gains/losses are included in the determination of net income.

Recent Accounting Pronouncements

In December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard (SFAS) No. 123R, Share Based Payment. SFAS 123R is a revision of SFAS No. 123 Accounting for Stock-Based
Compensation, and supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees and its related implementation guidance. SFAS 123R establishes standards for the accounting for transactions in which an entity exchanges its
equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entitys equity instruments or that may be settled by the
issuance of those equity instruments. SFAS 123R focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. SFAS 123R does not change the accounting guidance for share-based
payment transactions with parties other than employees provided in SFAS 123 as originally issued and Emerging Issues Task Force Issue No. 96-18, Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods or Services. SFAS 123R does not address the accounting for employee share ownership plans, which are subject to AICPA Statement of Position 93-6, Employers Accounting for Employee Stock Ownership
Plans. SFAS 123R requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized
over the period during which an employee is required to provide service in exchange for the award  the requisite service period (usually the vesting period). SFAS 123R requires that the compensation cost relating to share-based payment
transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. The scope of SFAS 123R includes a wide range of share-based compensation arrangements including
share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. Public entities that file as small business issuers will be required to apply SFAS 123R in the first interim or annual
reporting period that begins after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Companys results of operations or financial position.

In December 2004, FASB issued SFAS No. 153, Exchanges
  of Nonmonetary Assets - An Amendment of APB Opinion No. 29. The guidance
  in APB Opinion No. 29, Accounting for Nonmonetary Transactions,
  is based on the principle that exchanges of nonmonetary assets should be measured
  based on the fair value of the assets exchanged. The guidance in that Opinion,
  however, included certain exceptions to that principle. SFAS No. 153 amends
  Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar
  productive assets and replaces it with a general exception for exchanges of
  nonmonetary assets that do not

14

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have commercial substance. A nonmonetary exchange has
commercial substance if the future cash flows of the entity are expected to
change significantly as a result of the exchange. The provisions of SFAS No. 153
are effective for nonmonetary asset exchanges occurring in fiscal periods
beginning after June 15, 2005. Early application is permitted and companies must
apply the standard prospectively. The adoption of this standard is not expected
to have a material effect on the Companys results of operations or financial
position.

The FASB has also issued SFAS No. 152, but it will not have any
relationship to the operations of the Company. Therefore, a description and its
impact on the Companys operations and financial position have not been
disclosed.

In March 2005, the SEC staff issued Staff Accounting Bulletin
No. 107 ("SAB 107") to give guidance on the implementation of SFAS No. 123R. The
Company will consider SAB 107 during the implementation of SFAS No. 123R.

|**Item 3.** | Controls and Procedures
|----------- | -----------------------

The Companys principal executive and financial officers have
evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e)
and 15d-15(e) under the Securities Exchange Act of 1934) as of September 30,
2005. They have determined that such disclosure controls and procedures are
effective to ensure that information required to be disclosed in our filings
under the Securities Exchange Act of 1934 with respect to the Company is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commissions rules and forms and is accumulated
and communicated to our management, including the Companys principal executive
officer and principal financial officer, as appropriate, to allow timely
decisions regarding required disclosures.

The Company has made no significant changes in its internal
controls over financial reporting during the most recent fiscal quarter covered
by this Report that materially affected or are reasonably likely to materially
affect our internal controls over financial reporting.

PART II - OTHER INFORMATION

|**Item 4.** | Legal Proceedings
|----------- | -----------------

There were no new legal proceedings during the quarter ended
September 30, 2005.

|**Item 5.** | Subsequent Events
|----------- | -----------------

On October 12, 2005 the private placement in TransAmerican
Energy Corp. was closed and Aucxis was issued 800,000 common shares and 800,000
share purchase warrants, where each warrant allows Aucxis to purchase one common
share for CAD$0.35 for one year. The shares are restricted from trading for four
months from the date of issuance.

|**Item 6.** | Exhibits and Reports On Form 8-K
|----------- | --------------------------------

| | (a) | Exhibits.                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                       
| | 31  | Certification pursuant
      to Section 302 of the Sarbanes-Oxley Act of 2002                                                         
| |     |                                                                                                                                       
| | 32  | Certification
        pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
        of the Sarbanes-Oxley Act of 2002
|
| |     |                                                                                                                                       
| | (b) | Reports on Form 8-K                                                                                                                   
| |     | The Company has filed a Form 8K with respect
      to change of auditors on January 17, 2006.                                         

15

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**SIGNATURES**

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

|                         | AUCXIS CORP.
|------------------------ | ------------
|                         |             
|Date:   January 27, 2006 | By:         
|                         |             
|                         |             
|                         |             

16

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