UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORTS OF SMALL BUSINESS ISSUERS

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

                 For the quarterly period ended March 31, 2000

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

                             Commission file number

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

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


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

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

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

Check whether the issuer

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

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

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

Applicable only to corporate issuers

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

Transitional  Small Business  Disclosure Format (check one);

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

<PAGE>

                          E-AUCTION GLOBAL TRADING INC.
                                   FORM 10-QSB

                                      INDEX
<TABLE>
<CAPTION>

PART I.  FINANCIAL INFORMATION                                                                        Page
                                                                                                      ----
<S>  <C>                                                                                                 <C>
Item 1.  Financial Statements                                                                            2

     Consolidated Balance Sheets at March 31, 2000 and March 31, 1999                                    3

     Consolidated  Statements  of  Operations  and Deficit for the three months ended March 31,          5
     2000 and 1999

     Consolidated Statements of Cash Flows for the three months ended March 31, 2000 and 1999            6

     Notes to Consolidated Financial Statements                                                          7

Item 2.  Managements' Discussion and Analysis of Financial Condition and Results of Operations          21

Part II. Other Information                                                                              23

Item 1.  Legal Proceedings                                                                              23

Item 2.  Changes in Securities and Use of Proceeds                                                      23

Item 4.  Submission of Matters to a Vote of Security Holders                                            25

Item 6.  Exhibits and Reports on Form 8-K                                                               25

SIGNATURES                                                                                              25
</TABLE>

                                       1
<PAGE>

ITEM 1.  Financial Statements

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                        CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)

                                       2
<PAGE>



                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   CONSOLIDATED BALANCE SHEET - MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                                                                          2000                1999
                                                                                            $                   $
                                                                                                          (NOTE 17)
-------------------------------------------------------------------------------------------------------------------
                                     ASSETS

CURRENT ASSETS
<S>                                                                                      <C>                        <C>
      Cash and short-term deposits                                                       3,557,616                  1
      Accounts receivable                                                                  973,982                  -
      Due from Ventures North Investment Partners (NOTE 7)                                   2,594                  -
      Inventory                                                                            181,385                  -
      Work in progress                                                                     298,365                  -
      Prepaid expenses                                                                      58,174                  -
                                                                                         ---------        -----------
                                                                                         5,072,116                  1

CAPITAL ASSETS (NOTE 4)                                                                    695,743             34,247

OTHER ASSETS                                                                                27,198                  -

GOODWILL (NOTE 5)                                                                        6,904,159                  -
----------------------------------------------------------------------------------------------------------------------

                                                                                        12,699,216             34,248

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


                             SEE ACCOMPANYING NOTES



                                       3
<PAGE>



                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   CONSOLIDATED BALANCE SHEET - MARCH 31, 2000

                                   (UNAUDITED)

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

----------------------------------------------------------------------------------------------------------------------
                                                                                        2000                1999
                                                                                         $                   $
                                                                                                         (NOTE 17)
----------------------------------------------------------------------------------------------------------------------

                                   LIABILITIES

CURRENT LIABILITIES
<S>                                                                                   <C>                   <C>
      Accounts payable and accruals                                                   1,676,203             84,247
      Short term loan                                                                    54,651                  -
      Due to Ventures North Investment Partners (NOTE 7)                                      -             82,477
      Deferred revenue (NOTE 6)                                                         471,522                  -
      Current portion of long-term debt (NOTE 8)                                         49,561                  -
      Current portion of obligations under capital lease (NOTE 9)                        13,369                  -
                                                                                     ----------         ----------
                                                                                      2,265,306            166,724

LONG-TERM DEBT (NOTE 8)                                                                 175,140                  -

OBLIGATIONS UNDER CAPITAL LEASE (NOTE 9)                                                 27,723                  -
                                                                                     ----------         ----------
                                                                                      2,468,169            166,724
                                                                                     ----------         ----------

REDEEMABLE COMMON STOCK (NOTES 5 AND 10)                                              3,636,364                  -
                                                                                     ----------         ----------

NON-CONTROLLING INTEREST (NOTE 12)                                                      877,449                  -
                                                                                     ----------         ----------


                              SHAREHOLDERS' EQUITY

SHARE CAPITAL (NOTE 10)                                                                  60,573                  1

CONTRIBUTED SURPLUS (NOTE 10)                                                         9,071,943                  -

DEFICIT                                                                              (3,415,282)          (132,477)
                                                                                     ----------         ----------
                                                                                      5,717,234           (132,476)

----------------------------------------------------------------------------------------------------------------------
                                                                                     12,699,216             34,248

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

CONTINGENCIES (NOTE 15)

                             SEE ACCOMPANYING NOTES

                                       4
<PAGE>
                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                                                    JAN. 1 TO         JAN. 1 TO
                                                                                    MAR. 31,          MAR. 31,
                                                                                      2000              1999
                                                                                       $                  $
                                                                                                      (NOTE 17)
--------------------------------------------------------------------------------------------------------------------
<S>                                                                                       <C>
REVENUE                                                                                   1,028,836                 -

COST OF GOODS SOLD                                                                          717,688
                                                                                          ---------           -------

GROSS MARGIN                                                                                311,148                 -

EXPENSES

      Salaries and benefits                                                                 480,059            64,909
      Legal                                                                                  54,458             5,716
      Sales, general and administrative                                                     194,129            61,852
      Depreciation and amortization                                                         384,332                 -
      Interest on long-term debt                                                              7,566                 -
      Interest income                                                                       (10,437)                -
      Belgian taxes                                                                           2,944                 -
                                                                                          ---------           -------
                                                                                          1,113,051           132,477
                                                                                          ---------           -------

LOSS BEFORE NON-CONTROLLING INTEREST                                                       (801,903)         (132,477)

NON-CONTROLLING INTEREST (NOTE 12)                                                           41,053                 -
                                                                                          ---------           -------

NET LOSS                                                                                  (760,850)         (132,477)

RETAINED EARNINGS (DEFICIT), beginning of period                                         (2,654,432)                -

--------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT), end of period                                              (3,415,282)          (132,477)

=======================================================================================================================

EARNINGS (LOSS) PER SHARE                                                                    (0.01)             (0.01)
=======================================================================================================================
</TABLE>

                             SEE ACCOMPANYING NOTES

                                       5
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                      CONSOLIDATED STATEMENT OF CASH FLOWS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                                                   JAN. 1 TO            JAN. 1 TO
                                                                                    MAR. 31,             MAR. 31,
                                                                                       2000                 1999
                                                                                         $                    $
                                                                                                         (NOTE 17)
--------------------------------------------------------------------------------------------------------------------

CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
<S>                                                                                   <C>                <C>
       Net loss                                                                       (760,850)          (132,477)
       Add items not affecting cash
          Depreciation and amortization                                                384,332                  -
         Non-controlling interest                                                      (41,053)                 -
                                                                                      --------           --------
                                                                                      (417,571)          (132,477)

       Net changes in non-cash operating accounts
          Accounts receivable                                                         (244,853)                 -
          Inventory                                                                    111,504                  -
          Work in progress                                                            (298,365)                 -
          Prepaid expenses                                                             (14,859)                 -
          Accounts payable                                                             126,864             84,247
          Short-term loan                                                               39,181                  -
          Deferred revenue                                                            (111,090)                 -
                                                                                      --------           --------
                                                                                      (809,189)           (48,230)
                                                                                      --------           --------

FINANCING ACTIVITIES

       Due to related parties                                                         (863,387)            82,477
       Issuance of share capital                                                     2,920,966                  -
       Long-term debt                                                                  224,701                  -
       Capital lease obligations                                                        41,092                  -
       Non-controlling interest                                                        918,502                  -
                                                                                      --------           --------
                                                                                     3,241,874             82,477
                                                                                      --------           --------
INVESTING ACTIVITIES

       Purchase of capital assets                                                      (54,463)           (34,247)
       Purchase of Schelfhout                                                       (3,000,000)                 -
                                                                                      --------           --------
                                                                                    (3,054,463)           (34,247)
                                                                                      --------           --------

INCREASE (DECREASE) IN CASH                                                           (621,778)                 -

CASH, beginning of period                                                            4,179,394                  1
--------------------------------------------------------------------------------------------------------------------

CASH, end of period                                                                  3,557,616                  1
====================================================================================================================
</TABLE>

                             SEE ACCOMPANYING NOTES

                                       6
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)



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


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


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


       a)    Reverse takeover

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

             Application  of  reverse   takeover   accounting   results  in  the
following:

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

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

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

       b)    Principles of consolidation

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

                                       7
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)



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


       a)     Foreign currency translation

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

       b)     Loss per common share

              The weighted  average number of shares used for  calculating  loss
              per share is 58,856,990 (1999 - 17,970,000).

       c)     Measurement uncertainty

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

       d)     Financial instruments

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

       e)     Amortization

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

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

       f)     Related party transactions

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

                                       8
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)



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


       g)     Non-controlling interest

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

       h)     Income taxes

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

       i)     Revenue recognition

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

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

       j)     Inventory and work in progress

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

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

                                       9
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)


--------------------------------------------------------------------------------
  4.     CAPITAL ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                          2000                          1999
                                                            $                             $
                                                        Accumulated
                                           Cost         Amortization          Net        Net
                                           ----         ------------          ---        ---
<S>                                       <C>               <C>            <C>
         Land and buildings               483,916           12,192         471,724          -
         Equipment and furniture           38,892            2,679          36,213          -
         Software  *                       12,329                -          12,329     34,247
         Vehicles                         192,414           16,937         175,477          -
                                          -------           ------         -------     ------

                                          727,551           31,808         695,743     34,247
                                          =======           ======         =======     ======
</TABLE>

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

         Included  in vehicles  are assets  under  capital  lease with a cost of
         $83,627. Accumulated amortization on these vehicles totals $994.

--------------------------------------------------------------------------------
  5.   ACQUISITION OF SHELFHOUT COMPUTER SYSTEMEN N.V.
--------------------------------------------------------------------------------
                                                  2000             1999
                                                    $                $
                                                  ----             ----

      Goodwill                                 7,267,159               -
      Less: accumulated amortization             363,000               -
                                                 -------         -------
                                               6,904,159               -
                                               =========         =======

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

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

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

      Excess of purchase price over net tangible assets, being goodwill                           7,267,159
                                                                                                  =========
</TABLE>

                                       10
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                   (UNAUDITED)

                                 (IN U.S. FUNDS)



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

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

                                                         $
                                                        ---

      Refundable deposit                               1,000,000    paid
      Cash on closing                                  3,000,000    paid
      Common shares at fair value
         issued on closing (3,636,364)                 3,636,364    issued
                                                       ---------
                                                       7,636,364
                                                       =========

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

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

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


--------------------------------------------------------------------------------
  6.   DEFERRED REVENUE
--------------------------------------------------------------------------------
                                                           2000        1999
                                                            $            $

         Deferred revenue                                 471,522        -
                                                          =======     =======

         Deferred  revenue  relates  to the  Company's  European  operations  of
         installation of clock and cooling systems. (NOTE 3(I))

                                       11
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)

--------------------------------------------------------------------------------
  7.   DUE (FROM) TO RELATED PARTIES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S>                                                                <C>                <C>
                                                                   2000               1999
                                                                    $                   $

      Ventures North Investment Partners Inc. ("Ventures")        (2,594)             82,477
                                                                  ======              ======
</TABLE>
       The  majority  of the  Company's  operations  during  1999 were funded by
       Ventures.   During  the  first  quarter  of  2000,   Ventures   converted
       approximately  $591,000 of debt owed by the Company into common shares at
       a price of $0.50 per  share.  Ventures  is  related  through  significant
       common shareholdings. The amounts advanced were non-interest bearing with
       no fixed terms of repayment.

       (NOTES 10(C) (III) AND 11)

--------------------------------------------------------------------------------
  8.   LONG-TERM DEBT
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                            2000          1999
                                                                                             $              $
                                                                                            ----          ----

<S>                                                                                      <C>
      Various bank loans for automobile purchases bearing interest at
      rates of 3.67% to 5.59%.  Monthly payments of 3,404 euro.  Due
      dates extend to June 15, 2003                                                         85,903            -

      Bank loan with interest at 5.65% per annum.  Monthly payments of
      1,359 euro.  Due December 25, 2007                                                    95,658            -

      Directors loan with interest at 5.65% per annum.  Monthly payments of
      446 euro.  Due July 1, 2009                                                           43,140            -
                                                                                          --------   -----    -
                                                                                           224,701            -
      Less:  current portion                                                              (49,561)            -
                                                                                          --------   -----    -

                                                                                           175,140            -
                                                                                           =======  ======    =

--------------------------------------------------------------------------------
  9.   OBLIGATIONS UNDER CAPITAL LEASE
--------------------------------------------------------------------------------
                                                                                            2000         1999
                                                                                             $            $
                                                                                            ----         ----

      Obligations under capital lease                                                       41,092            -
      Less: current portion                                                               (13,369)            -
                                                                                          -------       -------

                                                                                            27,723            -
                                                                                          ========      =======
</TABLE>

                                       12
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)



--------------------------------------------------------------------------------
  9.   OBLIGATIONS UNDER CAPITAL LEASE - CONT'D
--------------------------------------------------------------------------------

       Future minimum payments due:

                                                                         $
                                                                         --

               2001                                                    16,016
               2002                                                     8,928
               2003                                                     8,928
               2004                                                     8,928
               2005                                                       744
                                                                       ------
                                                                       43,544

               Less: amount representing interest                       2,452
                                                                       ------

                                                                       41,092
                                                                       ======

--------------------------------------------------------------------------------
  10.  SHARE CAPITAL AND CONTRIBUTED SURPLUS
--------------------------------------------------------------------------------

       a)     Authorized - 250,000,000 common shares with a par value of $0.001
<TABLE>
<CAPTION>
                                                                     NUMBER OF                       CONTRIBUTED       TOTAL
                                                                      SHARES              $            SURPLUS           $
                                                                   -------------       ------       -------------      -------
<S>                                                                     <C>             <C>             <C>
      b)     Issued - balance, beginning of period                      39,820,000      39,820          (39,819)               -
                                                                        ----------      ------         ---------       ---------
             Private placement (iii)                                    16,591,815      16,592         8,279,315       8,295,907
             Commission                                                    327,878         328           163,612         163,940
             Less: issue costs and commission                                                          (327,332)        (327,332)

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

             Schelfhout Acquisition (v)                                  3,636,364       3,636         3,632,728       3,636,364
                                                                        ----------      ------         ---------       ---------
                                                                        20,753,276      20,753        12,748,126      12,768,879
                                                                        ----------      ------         ---------       ---------

                                                                        60,573,276      60,573        12,708,307      12,768,880

             Less: allocated to redeemable common stock                          -           -       (3,636,364)      (3,636,364)
                                                                        ----------      ------         ---------       ---------

             Balance, end of period                                     60,573,276      60,573         9,071,943       9,132,516
                                                                        ==========      ======         =========       =========
</TABLE>

                                       13
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 IN U.S. FUNDS)



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

       c)    Share capital and contributed surplus since inception
<TABLE>
<CAPTION>
                                                                                    CONTRIBUTED SURPLUS
                  DATE ISSUED         NUMBER OF SHARES                $                        $
                  -----------         ----------------                -             -------------------
<S>                <C>                       <C>                     <C>                     <C>
             April 30, 1998 (i)              34,500,000              34,500                  (34,500)
             February 26, 1999 (ii)           5,320,000               5,320                   (5,319)
             January 7, 2000 (iii)           16,919,693              16,920                8,115,595
             January 7, 2000 (iv)               197,219                 197                  999,803
             January 10, 2000 (v)             3,636,364               3,636                3,632,728
                                              ---------               -----                ---------
                                             60,573,276              60,573               12,708,307
                                             ==========              ======               ==========
</TABLE>
             (i)  For reverse  takeover  accounting  purposes  these shares have
                  been deemed to have been issued on April 30, 1998, the date of
                  incorporation of Barbados.

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

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

             (iv) On January 7, 2000 the Company  issued  197,219  common shares
                  with a deemed value of  $1million  as  financing  and interest
                  fees in  consideration  for a loan of $1 million by Millennium
                  Advisors Inc..

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

                                       14
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 IN U.S. FUNDS)



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


       d)    Stock options

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

           The weighted average exercise price of the options is $1.58/share.

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

             -  Exercise price equals fair market value          $2.13
             -  Exercise price exceeds fair market value         $0.18
             -  Exercise price less than fair market value       $0.00

           The  Company  has  not  recognized   compensation   expense  for  its
           stock-based awards to employees.  The following reflects proforma net
           income and loss per share had the  Company  elected to adopt the fair
           value approach of SFAS 123:
<TABLE>
<CAPTION>
                                                                                           2000           1999
                                                                                             $              $
                                                                                            ----           ----
             Net loss
<S>                                                                                       <C>              <C>
               As reported                                                                (760,850)        (132,477)
               Proforma                                                                 (4,544,891)      (3,022,777)

             Basic and diluted loss per share
               As reported                                                                   (0.01)           (0.07)
               Proforma                                                                      (0.08)           (0.16)

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

                                                                                            2000           1999
                                                                                            ----           ----

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

                                       15
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)



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

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

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

      Interest paid to shareholders                                                             21,698                  -

      Management fees paid to a company controlled by two directors                            119,000                  -
</TABLE>

       Included in accounts  payable and  accrued  liabilities  is $484,854  and
       included  in  long-term  debt  is  $43,140  owing  to  two  directors  of
       Schelfhout.


--------------------------------------------------------------------------------
  12.  NON-CONTROLLING INTEREST
--------------------------------------------------------------------------------

         The Company is the majority  owner  (50.01%) of  e-Auction  Australasia
       Limited  ("Australasia").  The  non-controlling  interest  represents the
       interest of the minority shareholders of Australasia as at March 31, 2000
       as follows:

                    Non-controlling interest at acquisition          $ 918,502
                    Less: share of current period earnings(loss)     ( 41,053)
                                                                     --------

                    Non-controlling interest, end of period          $ 877,449
                                                                      ========

                                       16
<PAGE>


                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)



--------------------------------------------------------------------------------
13.    SUBSEQUENT EVENTS
--------------------------------------------------------------------------------

       a)  On June  22,  2000 the  Company  completed  a  private  placement  of
           4,072,639  shares at $1.842/share for gross proceeds of $7,500,000 to
           ABN AMRO Capital Investments (Belgie) N.V.

       b)  On April  24,  2000  the  Company  granted  100,000  options  with an
           exercise price of $2.25/share  and on May 2, 2000 the Company granted
           1,825,000 options with an exercise price of $2.00/share.

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

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

             Date                   Dutch Guilders             Common Shares

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

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

                                       17
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)



--------------------------------------------------------------------------------
14.    CONTINGENCIES
--------------------------------------------------------------------------------


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

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

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

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

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

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

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

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

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


                                       18
<PAGE>


                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)



--------------------------------------------------------------------------------
15.    SEGMENTED INFORMATION
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                                  INDUSTRY A
                                                                                                 NORTH AMERICA
                                                                                            2000                1999
                                                                                              $                   $
<S>                                                                                         <C>
           Revenue outside the Company                                                              -               -
           Segmented operating loss                                                         (699,647)               -
           Identifiable assets                                                              9,542,413          34,248
           Capital expenditure                                                                  8,877               -
           Amortization                                                                       363,216               -


                                                                                                    INDUSTRY B
                                                                                                      EUROPE
                                                                                            2000                1999
                                                                                              $                   $

           Revenue outside the Company                                                      1,028,836               -
           Segmented operating loss                                                          (20,134)               -
           Identifiable assets                                                              2,276,338               -
           Capital expenditure                                                                 35,637               -
           Amortization                                                                        20,255               -


                                                                                                    INDUSTRY C
                                                                                                     AUSTRALIA
                                                                                            2000                1999
                                                                                              $                   $

           Revenue outside the Company                                                              -              -
           Segmented operating loss                                                          (41,069)              -
           Identifiable assets                                                                880,465              -
           Capital expenditure                                                                 47,033              -
           Amortization                                                                           861              -
</TABLE>
                                       19
<PAGE>

                          E-AUCTION GLOBAL TRADING INC.

                             (A NEVADA CORPORATION)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    FOR THE THREE MONTHS ENDED MARCH 31, 2000

                                 (IN U.S. FUNDS)




--------------------------------------------------------------------------------
15.    SEGMENTED INFORMATION - CONT'D
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                TOTAL
                                                                    2000                      1999
                                                                       $                        $
                                                                    ----                      ----
<S>                                                                <C>
           Revenue outside the Company                             1,028,836                         -
           Segmented operating loss                                (760,850)                         -
           Identifiable assets                                    12,699,216                    34,248
           Capital expenditure                                        91,547                    34,247
           Amortization                                              384,332                         -
</TABLE>
       For the purpose of segmented  information  as presented  above,  goodwill
       arising  from  the  acquisitions  of  subsidiaries  are  included  in the
       identifiable assets of the geographic segments of the subsidiaries.

--------------------------------------------------------------------------------
16.    SUPPLEMENTAL NON-CASH INFORMATION
--------------------------------------------------------------------------------

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

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

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

--------------------------------------------------------------------------------
  17.  COMPARATIVE FIGURES
--------------------------------------------------------------------------------

       Comparative  figures are for the period from January 1, 1999 to March 31,
       1999 of e-Auction Global Trading Inc. Certain of the comparative  figures
       have been  reclassified  to  conform  to the  current  presentation.  The
       comparative figures were prepared by management.

                                       20
<PAGE>

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


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

OVERVIEW

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

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

HIGHLIGHTS OF THE QUARTER

         Revenue for the three (3) months  ended  March 31, 2000 was  $1,028,836
compared to $0 for the three (3) months ended March 31, 1999.  This  increase in
revenue resulted from the Company's acquisition of Schelfhout Computer Systemen,
N.V. in January  2000.  Schelfhout  derives  revenues from the  development  and
installation of clock systems, cooling installations and maintenance for auction
halls.

         Net loss for the three (3) months ended March 31, 2000 was $760,850, as
compared to a loss of $132,477 in the  corresponding  three (3) month  period in
1999.  The  increase  in net loss is  largely  attributable  to an  increase  in
salaries and  benefits,  in the aggregate  amount of $415,150,  and increases in
depreciation  and  amortization  of $384,332.  During the first three (3) months

                                       21
<PAGE>

ended  March 31,  2000 the Company  added to its  management  team by hiring Dan
McKenzie,  as its  President  and  C.E.O.;  Jeff  Turner,  as Vice  President  -
Marketing;;  Thomas Jakubowski, as Vice President Business Development; and Paul
King,  Managing  Director Europe.  The increase in depreciation and amortization
was  attributable  to the  acquisition  of Schelfhout  and the  amortization  of
goodwill as a result of such acquisition.

LIQUIDITY AND CAPITAL RESOURCES

         During the three (3) months  ended  March 31,  2000,  the  Company  was
successful in raising additional  capital and retiring  outstanding debts of the
Company.  This was  accomplished,  in part,  by the  issuance in January 2000 of
16,919,693 shares of the Company's common stock,  resulting in gross proceeds to
the  Company  of  $8,295,906  ($4,500,000  in  new  capital  and  $3,800,000  in
retirement of debt).

         On  January  10,  2000,  the  Company   completed  the  acquisition  of
Schelfhout  Computer System N.V., a solutions provider for perishable  commodity
(fish, flower, fruits and vegetables) auction houses.  Schelfhout developed over
the course of 17 years 150  electronic  trading  systems  for  numerous  selling
organizations  all over the world.  The Company  believes  that its hardware and
software can be adapted,  without  substantial cost of or time, to provide other
services to commodity auctions.


                                       22
<PAGE>

PART II - OTHER INFORMATION

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

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

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

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

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

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

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         On August 13,  1999,  in  consideration  for a loan of $1 million  from
Millennium  Advisors Inc. to the Company,  Millennium  received  197,219  common
shares of the Company,  having a deemed value of $1,000,000,  as a financing and
interest  fee. The deemed price of the shares was based on the weighted  average
closing price over the five (5) trading days immediately  preceding the date the
loan was granted.  The Company issued these shares in January 2000 to Millennium
Advisors Inc., which is a non-US person.  In connection with the above issuance,
the Company relied on the exemption from  registration  afforded by Section 4(2)
of the Securities  Act of 1933, as amended (the "Act"),  as  transactions  by an
issuer not involving any public offering, and Regulation S promulgated under the
Act, as an off-shore transaction with a non-U.S. person ("Regulation S").

         On January 7, 2000, the Company issued  8,965,899  special  warrants to
various non-US  purchasers.  Each special warrant entitled the holder thereof to
acquire  one  (1)  share  of  the  Company's  common  stock  for  no  additional
consideration.  The  holders of the special  warrants

                                       23
<PAGE>

exercised their special warrants immediately following their issuance,  pursuant
to which  exercise the Company  issued an  aggregate of 8,965,899  shares of its
common  stock to such  holders.  The  offering of the special  warrants  and the
issuance  of the  shares  of  common  stock of the  Company  resulting  from the
subsequent  exercise  of the  special  warrants  were  made in  reliance  of the
exemption from registration afforded by Section 4(2) of the Act and Regulation S
with  respet  to  off-shore  transactions  to  non-U.S.  purchasers.  Each  such
purchaser  certified that it (i) was not a U.S.  person,  (ii) was not acquiring
the  securities  for the  account or benefit  of any U.S.  person,  (iii) was an
accredited  investor  and  (iv)  had the  requisite  sophistication.  Each  such
purchaser  further agreed not to resell the securities  other than in compliance
with  Regulation  S. The  purchase  price for the special  warrants was US$0.50,
resulting in approximately $4,482,948 in new capital to the Company.

         In  connection  with the  foregoing,  the Company  issued an additional
327,878 shares of its common stock to various non-U.S.  entities as commissions.
The issue price of the common shares used to pay the commissions was $0.50,  for
a deemed  value of  $163,939.  The  issuance  of such  additional  shares of the
Company's  common stock was also made in reliance of Section 4(2) of the Act and
Regulation S.

         During the first quarter of the fiscal year 2000,  the Company  settled
various  outstanding  liabilities by issuing an aggregate of 7,625,916 shares of
its common stock.  The issuance price for the common stock was US$0.50 per share
and the Company retired approximately $3,812,958 in outstanding liabilities. All
of the  recepients  of these shares were non-US  persons,  having the  requisite
knowledge  and  experience  in financial  and  business  matters to evaluate the
merits and risks of the receipt of the Company's securities in lieu of repayment
in cash. In issuing these  securities,  the Company relied on the exemption from
registration afforded by Section 4(2) of the Act and Regulation S.

         On January 10, 2000, the Company issued  3,636,364 shares of its common
stock to the former  shareholders  of  Schelfhout  Computer  Systemen,  N.V., as
partial  consideration for the purchase by the Company's  Belgium  subsidiary of
all of the  outstanding  shares of capital stock of  Schelfhout.  For accounting
purposes, the purchase price per share was deemed to be $1.00. There was no cash
paid for the  shares  by  Schelfhout.  The  offering  was  made in an  off-shore
transaction  to foreign  individual  purchasers who each certified that they (i)
were not U.S. persons; (ii) were not acquiring the securities for the account or
benefit of any U.S. person, (iii) were an accredited or sophisticated purchaser;
and (iv) would resell the securities  only in compliance  with Regulation S. The
Company further  believes that the  stockholders of Schelfhout had knowledge and
experience in financial and business  matters which allowed them to evaluate the
merits  and  risks  of the  receipt  of these  securities  and  that  they  were
knowledgeable  about the  Company's  operations  and  financial  condition.  The
issuance of shares of the Company's  common stock for and in  consideration  for
all of the  outstanding  capital  stock of Shelfhout was made in reliance of the
exemption  afforded by Section 4(2) of the Act and Regulation S, as transactions
by an issuer not involving any public offering to non-US persons in an off-shore
transaction.

                                       24
<PAGE>


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

         There were no matters submitted for a vote of securities holders during
the three months ended March 31, 2000.

Item 6.  Exhibits And Reports On Form 8-K


EXHIBIT #            EXHIBIT NAME
---------            ------------
Exhibit 27           Financial Data Schedule

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

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

                                        By: /s/ David W.A. Hackett
                                        ---------------------------------------
                                        David W.A. Hackett.
                                        Chief Financial Officer
                                        (duly authorized officer)

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