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**UNITED STATESSECURITIES AND EXCHANGE COMMISSION** Washington, D.C. 20549

FORM 10-QSB

**x******Quarterly
  Report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934
  For the quarterly period ended September 30, 2003

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

0-9040
  Commission file number

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

**Nevada**
  (State or other jurisdiction)

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

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

**604-639-3109**
  (Issuer's telephone number)
  ______________________________________________________________
  (Former Name, Address and Former Fiscal Year, if Changed Since Last Report)

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

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

As of November 19, 2003 there were 66,409,415 shares of the
  Registrant's common stock, par value $0.001 per share outstanding.

Transitional Small Business Disclosure Format (check one);
  Yes ** ̈** ****No  **x******

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AUCXISCORP.

FORM 10-QSB

INDEX

|PART I. FINANCIAL INFORMATION                                                                       | Page                                                                                                                         |  
|--------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | -
|                                                                                                    |                                                                                                                              |  
|Item 1. Financial Statements                                                                        | 3                                                                                                                            |  
|                                                                                                    |                                                                                                                              |  
|                                                                                                    | Consolidated Balance Sheet at September 30, 2003 (Unaudited)
      and December 31, 2002(Audited)                            | 5
|                                                                                                    |                                                                                                                              |  
|                                                                                                    | Consolidated Statements of Operations (Unaudited) for
      the three and nine months endedSeptember 30, 2003
      and 2002 | 6
|                                                                                                    |                                                                                                                              |  
|                                                                                                    | Consolidated Statements of Cash Flows (Unaudited) for
      the nine months endedSeptember
      30, 2003 and 2002           | 7
|                                                                                                    |                                                                                                                              |  
|                                                                                                    | Notes to Consolidated Financial Statements                                                                                   | 8
|                                                                                                    |                                                                                                                              |  
|Item 2. Managements Discussion and
      Analysis of Financial Condition and Results of Operations | 15                                                                                                                           |  
|                                                                                                    |                                                                                                                              |  
|Item 3. Controls and Procedures                                                                     | 17                                                                                                                           |  
|                                                                                                    |                                                                                                                              |  
|PART II. OTHER INFORMATION                                                                          | 17                                                                                                                           |  
|                                                                                                    |                                                                                                                              |  
|Item 1. Legal Proceedings                                                                           | 17                                                                                                                           |  
|                                                                                                    |                                                                                                                              |  
|Item 5: Other Information                                                                           | 17                                                                                                                           |  
|                                                                                                    |                                                                                                                              |  
|Item 6. Exhibits and Reports on Form 8-K                                                            | 17                                                                                                                           |  
|                                                                                                    |                                                                                                                              |  
|Signatures                                                                                          | 17                                                                                                                           |  

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ITEM 1. Financial Statements
    Aucxis Corp.
    (formerly e-Auction Global Trading Inc.)
    (a Nevada Corporation) Consolidated Financial Statements 
    (Unaudited) 
    September 30, 2003 
    (expressed in U.S. dollars)




3

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| | AUCXIS
        CORP. 
        (a Nevada Corporation) CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2003 
        (in U.S. dollars) | 
| | ------------------------------------------------------------------------------------------------------------------------------------ | 



4

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

|                                                                      |   | September 30, |   |   | December 31, |  
|--------------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                                      |   | 2003          |   |   | 2002         |  
|                                                                      |   | (unaudited)   |   |   | (audited)    |  
|                                                                      |   |               |   |   |              |  
|ASSETS                                                                |   |               |   |   |              |  
|                                                                      |   |               |   |   |              |  
|CURRENT ASSETS                                                        |   |               |   |   |              |  
|Cash and equivalents                                                  | $ | 18,602        |   | $ | 617,811      |  
|Accounts receivable, net of allowance for doubtful account of $12,840 |   | 40,561        |   |   | 1,135,903    |  
|Inventory                                                             |   | -             |   |   | 1,394,028    |  
|Prepaid expenses                                                      |   | 658           |   |   | 51,218       |  
|Total Current Assets                                                  |   | 59,821        |   |   | 3,198,960    |  
|Investments (Note 2)                                                  |   | 1,008,000     |   |   | 160,070      |  
|Property and equipment                                                |   | 18,900        |   |   | 297,624      |  
|Acquired core technology                                              |   | -             |   |   | 299,584      |  
|Total Assets                                                          | $ | 1,086,721     |   | $ | 3,956,238    |  
|                                                                      |   |               |   |   |              |  
|LIABILITIES                                                           |   |               |   |   |              |  
|                                                                      |   |               |   |   |              |  
|CURRENT LIABILITIES                                                   |   |               |   |   |              |  
|Accounts payable (Note 6(c))                                          | $ | 491,144       |   | $ | 896,398      |  
|Accrued liabilities                                                   |   | 55,959        |   |   | 696,220      |  
|Due to former Kwatrobox shareholders                                  |   | 530,887       |   |   | 356,274      |  
|Deferred revenue                                                      |   | -             |   |   | 2,000,082    |  
|Current portion of long-term debt                                     |   | 498,640       |   |   | 488,666      |  
|Deferred tax liability                                                |   | -             |   |   | 5,241        |  
|Total Current Liabilities                                             |   | 1,576,630     |   |   | 4,442,881    |  
|Long-term debt                                                        |   | -             |   |   | 105,859      |  
|Non-controlling interest                                              |   | -             |   |   | 2,400        |  
|Total Liabilities                                                     |   | 1,576,630     |   |   | 4,551,140    |  
|Mandatory Redeemable Shares of Common Stock (Note 7)                  |   | 4,215,914     |   |   | 4,818,181    |  
|                                                                      |   | 5,792,544     |   |   | 9,369,321    |  
|Commitments and Contingencies (Note 10)                               |   |               |   |   |              |  
|                                                                      |   |               |   |   |              |  
|STOCKHOLDERS EQUITY (DEFICIT)                                        |   |               |   |   |              |  
|                                                                      |   |               |   |   |              |  
|Common stock                                                          |   |               |   |   |              |  
|Authorized: 250,000,000 shares, $0.001 par value                      |   |               |   |   |              |  
|Issued and outstanding: 62,773,051 shares                             |   | 62,773        |   |   | 62,773       |  
|Additional paid-in capital                                            |   | 18,736,200    |   |   | 18,736,200   |  
|Accumulated other comprehensive income                                |   | 595,461       |   |   | 243,710      |  
|Deficit                                                               |   | (24,100,257   | ) |   | (24,455,766  | )
|Total Stockholders Equity (Deficit)                                  |   | (4,705,823    | ) |   | (5,413,083   | )
|Total Liabilities and Stockholders Equity (Deficit)                  | $ | 1,086,721     |   | $ | 3,956,238    |  

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

5

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|AUCXIS
        CORP.CONSOLIDATED STATEMENTS OF OPERATIONS(Expressed in U.S. dollars) 
        (unaudited)
|---------------------------------------------------------------------------------------------------------

|                                                    |   | Three months  |   |   | Three months  |   |   | Nine months   |   |   | Nine months   |  
|--------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------- | - | - | ------------- | -
|                                                    |   | ended         |   |   | ended         |   |   | ended         |   |   | ended         |  
|                                                    |   | September 30, |   |   | September 30, |   |   | September 30, |   |   | September 30, |  
|                                                    |   | 2003          |   |   | 2002          |   |   | 2003          |   |   | 2002          |  
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Revenue                                             | $ | -             |   | $ | 1,561,714     |   | $ | 1,226,880     |   | $ | 4,172,485     |  
|Cost of goods sold                                  |   | -             |   |   | (398,622      | ) |   | (307,800      | ) |   | (1,717,966    | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|                                                    |   | -             |   |   | 1,163,092     |   |   | 919,080       |   |   | 2,454,519     |  
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Selling, general and administrative expense         |   | 47,651        |   |   | 1,106,958     |   |   | 1,110,767     |   |   | 2,732,221     |  
|Depreciation and amortization expense               |   | 2,328         |   |   | 111,982       |   |   | 67,024        |   |   | 233,912       |  
|Recovery of inventory                               |   | -             |   |   | -             |   |   | (14,040       | ) |   | -             |  
|Loss (gain) on disposal of assets                   |   | -             |   |   | 6,895         |   |   | (20,746       | ) |   | 122,667       |  
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Total operating expenses                            |   | 49,979        |   |   | 1,225,835     |   |   | 1,143,005     |   |   | 3,088,800     |  
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Operating loss                                      |   | (49,979       | ) |   | (62,743       | ) |   | (223,925      | ) |   | (634,281      | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Share of income (loss) of equity investment         |   | -             |   |   | (2,950        | ) |   | 32,170        |   |   | (2,950        | )
|Miscellaneous revenue                               |   | 914           |   |   | -             |   |   | 4,969         |   |   | -             |  
|Gain on cancellation of mandatory redeemable shares |   | -             |   |   | -             |   |   | 542,295       |   |   | -             |  
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Income (loss) before income taxes                   |   | (49,065       | ) |   | (65,693       | ) |   | 355,509       |   |   | (637,231      | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Provision for income taxes                          |   | -             |   |   | (67,108       | ) |   | -             |   |   | (59,003       | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Net income (loss) for the period                    | $ | (49,065       | ) | $ | (132,801      | ) | $ | 355,509       |   | $ | (696,234      | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Basis income (loss) per share                       | $ | (0.00         | ) | $ | (0.00         | ) | $ | 0.01          |   | $ | (0.01         | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Diluted income (loss) per share                     | $ | (0.00         | ) | $ | (0.00         | ) | $ | 0.01          |   | $ | (0.01         | )
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Weighted average shares used in computing           |   |               |   |   |               |   |   |               |   |   |               |  
|basic and diluted earnings per share                |   | 62,773,051    |   |   | 62,738,926    |   |   | 62,773,051    |   |   | 62,738,926    |  
|                                                    |   |               |   |   |               |   |   |               |   |   |               |  
|Weighted average shares used in computing           |   |               |   |   |               |   |   |               |   |   |               |  
|diluted earnings per share                          |   | 62,773,051    |   |   | 62,738,926    |   |   | 62,773,051    |   |   | 62,738,926    |  

(The Accompanying Notes are an Integral Part of These 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                       |   | 2003     |   |   | 2002       |  
|---------------------------------------------------- | - | -------- | - | - | ---------- | -
|                                                     |   |          |   |   |            |  
|                                                     |   |          |   |   |            |  
|OPERATING ACTIVITIES                                 |   |          |   |   |            |  
|Net income (loss) for the period                     | $ | 355,509  |   | $ | (696,234   | )
|Adjustments to reconcile net income (loss) to cash   |   |          |   |   |            |  
|Interest                                             |   | -        |   |   | 23,048     |  
|Depreciation and amortization                        |   | 67,024   |   |   | 233,912    |  
|Foreign exchange                                     |   | -        |   |   | 34,610     |  
|Gain on cancellation of mandatory redeemable shares  |   | (542,295 | ) |   | -          |  
|Share of income (loss) of equity investment          |   | (32,170  | ) |   | 2,950      |  
|Provision for impairment                             |   | -        |   |   | 82,003     |  
|Loss (gain) on disposal of assets                    |   | (20,746  | ) |   | 40,664     |  
|Net change in operating assets and liabilities       |   |          |   |   |            |  
|Accounts receivable                                  |   | (4,124   | ) |   | 375,056    |  
|Inventory                                            |   | -        |   |   | (1,585,218 | )
|Prepaid expenses                                     |   | 15,315   |   |   | 46,124     |  
|Accounts payable and accrued liabilities             |   | 156,463  |   |   | (380,501   | )
|Deferred items                                       |   | -        |   |   | 1,685,250  |  
|                                                     |   |          |   |   |            |  
|CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES      |   | (5,024   | ) |   | (138,336   | )
|                                                     |   |          |   |   |            |  
|INVESTING ACTIVITIES                                 |   |          |   |   |            |  
|Purchase of property and equipment (net of proceeds) |   | -        |   |   | (1,440     | )
|Purchase of investment                               |   | -        |   |   | (5,927     | )
|Change in subsidiary net assets                      |   | (861,574 | ) |   | -          |  
|CASH USED IN INVESTING ACTIVITIES                    |   | (861,574 | ) |   | (7,367     | )
|                                                     |   |          |   |   |            |  
|FINANCING ACTIVITIES                                 |   |          |   |   |            |  
|Long-term debt, net of repayment                     |   | -        |   |   | 321,816    |  
|CASH PROVIDED BY FINANCING ACTIVITIES                |   | -        |   |   | 321,816    |  
|                                                     |   |          |   |   |            |  
|EFFECT OF EXCHANGE RATE CHANGES ON CASH              |   | 267,389  |   |   | 35,020     |  
|                                                     |   |          |   |   |            |  
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     |   | (599,209 | ) |   | 211,133    |  
|                                                     |   |          |   |   |            |  
|CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD        |   | 617,811  |   |   | 310,050    |  
|                                                     |   |          |   |   |            |  
|CASH AND CASH EQUIVALENTS END OF PERIOD              | $ | 18,602   |   | $ | 521,183    |  
|                                                     |   |          |   |   |            |  
|Supplemental cash flow information:                  |   |          |   |   |            |  
|                                                     |   |          |   |   |            |  
|Interest paid                                        | $ | 15,120   |   | $ | -          |  
|Income taxes paid                                    | $ | -        |   | $ | -          |  

(The Accompanying Notes are an Integral Part of These 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, 2003                                                         

|1. | NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS
        The Company was incorporated in Nevada, USA on January 8, 1998 under
          the name Kazari International, Inc. and changed its name to e-Auction
          Global Trading Inc. on June 10, 1999. The Company changed its name to
          Aucxis Corp. on June 12, 2001. The Companys business is the development
          of e-business services for the perishable commodity marketplace primarily
          in Europe, the installation and maintenance of auction clock and cooling
          systems for traditional auction halls, and the development of software
          for auctions. The Company has suspended development of e-business services
          for the perishable commodity marketplace pending further review of the
          business opportunities in this area. Refer to Note 2.
        These financial statements have been prepared on a going concern basis,
          which implies the Company will continue to realize its assets and discharge
          its liabilities in the normal course of business. The Company has not
          generated significant revenues since inception 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, 2003, the Company has a working capital deficiency
          of $1,516,809 (2002 - $892,633), and has accumulated losses of $24,100,257
          since inception. These 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.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|2. | BASIS OF PRESENTATION
      These financial statements include the accounts of the Company and its
        wholly-owned subsidiaries as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 100%        Aucxis
      Corp. NV (Belgium)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | 100%        I-Three
      Inc. (Canada)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 100%        e-Auction
      Global Trading Inc. (Barbados)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | 100%        Aucxis
      Corp. (Canada)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Aucxis Corp. NV (Belgium) has investments in the following
      companies which are accounted for by the equity method:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 92.5%        Aucxis
      Trading Solutions NV                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 30.0%        Aucxis
      Trading Services Netherlands B.V.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | 40.0%        SDL
      Invest NV (Belgium)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | All intercompany transactions and balances have been eliminated.
      Aucxis Corp. NV owns a 92.5% interest in Aucxis Trading
        Solutions NV (ATS), a Belgium company. ATS is engaged in the
        installation and maintenance of auction clock and cooling systems for
        traditional auction halls and the development of software for auctions,
        including Internet-based auction systems. On April 11, 2003, Aucxis Corp.
        NV voluntarily filed for bankruptcy. As the Company has relinquished control
        of Aucxis Corp. NV to a trustee in bankruptcy, its operating results have
        not been included in the consolidated results of operations since the
        bankruptcy filing (see Note 4). With the exception of ATS, none of the
        Companys subsidiaries or other investments have significant assets,
        liabilities, cash flows or operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

| | The investment balance consists of the following: |   |               |  |   |              | 
| | ------------------------------------------------- | - | ------------- |  | - | ------------ | 
| |                                                   |   | September 30, |  |   | December 31, | 
| |                                                   |   | 2003          |  |   | 2002         | 
| |                                                   |   |               |  |   |              | 
| | Auction Trading Services Netherlands BV           | $ | -             |  | $ | 5,657        | 
| | Aucxis Corp. NV                                   |   | 1,008,000     |  |   | -            | 
| | SDL Invest NV                                     |   | -             |  |   | 116,931      | 
| | Equity income                                     |   | -             |  |   | 37,482       | 
| |                                                   | $ | 1,008,000     |  | $ | 160,070      | 

8

---

|AUCXIS
        CORP.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Expressed in U.S. dollars)
|---------------------------------------------------------------------------------------------
|NINE MONTHS ENDED SEPTEMBER 30, 2003                                                         

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

9

---

|AUCXIS
        CORP.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Expressed in U.S. dollars)
|---------------------------------------------------------------------------------------------
|NINE MONTHS ENDED SEPTEMBER 30, 2003                                                         

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

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Nine Months Ended   |  
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------------- | -
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | September
      30, |  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2003                |  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                     |  
| |     | Net income (loss)  as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ | 355,482             |  
| |     | Add: Stock-based compensation expense included in net loss  as                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                     |  
| |     | reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | -                   |  
| |     | Deduct: Stock-based compensation expense determined under fair                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                     |  
| |     | value method                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | (80,730             | )
| |     | Net income (loss)  pro forma                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $ | 274,752             |  
| |     | Net income (loss) per share (basic and diluted) 
      as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 0.01                |  
| |     | Net income (loss) per share (basic and diluted)  pro forma                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 0.01                |  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | The fair value of the stock options granted
        was estimated using the Black-Scholes option pricing model with the following
        weighted-average assumptions: risk free interest rate of 5.77%, expected
        volatility of 30%, an expected option life of three years and no expected
        dividends.                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (j) | Interim financial statements
      These interim unaudited financial statements have been
        prepared on the same basis as the annual financial statements and in the
        opinion of management, reflect all adjustments, which include only normal
        recurring adjustments, necessary to present fairly the Companys
        financial position, results of operations and cash flows for the period
        shown. The results of operations for such periods are not necessarily
        indicative of the results expected for a full year or for any future period.

10

---

|AUCXIS
        CORP.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Expressed in U.S. dollars)
|---------------------------------------------------------------------------------------------
|NINE MONTHS ENDED SEPTEMBER 30, 2003                                                         

|3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (continued)
|-- | ------------------------------------------------------------
|   |                                                             
|   | (j)                                                         
|   |                                                             
|   | (k)                                                         

| |  |                                          |   | Three Months Ended  |   |   | Nine Months Ended     |  
| |  | ---------------------------------------- | - | ------------------- | - | - | --------------------- | -
| |  |                                          |   | September
      30, |   |   | September
        30, |  
| |  |                                          |   | 2003                |   |   | 2002                  |  
| |  | Income (loss) for the period             | $ | (49,065             | ) | $ | (132,801              | )
| |  | Foreign currency translation adjustments |   | (7,083              | ) |   | 69,338                |  
| |  | Comprehensive income (loss)              | $ | (56,148             | ) | $ | (63,463               | )

11

---

|AUCXIS
        CORP.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Expressed in U.S. dollars)
|---------------------------------------------------------------------------------------------
|NINE MONTHS ENDED SEPTEMBER 30, 2003                                                         

|**4.** | SUMMARIZED FINANCIAL INFORMATION OF DECONSOLIDATED SUBSIDIARY
        The Company has a 100% interest in Aucxis Corp. NV, a Belgium company
          (wholly-owned subsidiary), which has a 92.5% interest in Aucxis
          Trading Solutions NV (ATS). On April 11, 2003, Aucxis Corp.
          NV, voluntarily filed for bankruptcy. A trustee in bankruptcy has been
          entrusted with Aucxis Corp. NVs management and the realization
          of its assets for the benefit of its creditors. Court proceedings for
          the final verification of claims took place on June 5, 2003. Management
          of the Company is working with the trustee to maximize the proceeds
          received for ATS and to ensure there is little disruption to employees
          and normal business operations. Accordingly, the Company ceased consolidating
          the operations of Aucxis Corp. NV effective April 11, 2003 and the Companys
          investment is recorded at a net realizable value of $1,008,000.
        Summarized consolidated financial information of Aucxis Corp. NV is
          as follows:
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                  |   | September 30, |  |   | December 31,  | 
| | -------------------------------- | - | ------------- |  | - | ------------- | 
| |                                  |   | 2003          |  |   | 2002          | 
| |                                  |   |               |  |   |               | 
| | Current assets                   | $ | 3,143,712     |  | $ | 2,729,274     | 
| |                                  |   |               |  |   |               | 
| | Noncurrent assets                | $ | 527,714       |  | $ | 505,188       | 
| |                                  |   |               |  |   |               | 
| | Current liabilities              | $ | 3,055,624     |  | $ | 2,633,896     | 
| |                                  |   |               |  |   |               | 
| | Noncurrent liabilities           | $ | 36,608        |  | $ | 105,859       | 
| |                                  |   |               |  |   |               | 
| | Minority interests               | $ | 59,972        |  | $ | 2,400         | 
| |                                  |   |               |  |   |               | 
| |                                  |   | Nine Months   |  |   | Nine Months   | 
| |                                  |   | Ended         |  |   | Ended         | 
| |                                  |   | September 30, |  |   | September 30, | 
| |                                  |   | 2003          |  |   | 2002          | 
| |                                  |   |               |  |   |               | 
| | Revenue                          | $ | 1,226,880     |  | $ | 4,172,485     | 
| |                                  |   |               |  |   |               | 
| | Cost of goods sold               | $ | 307,800       |  | $ | 1,717,966     | 
| |                                  |   |               |  |   |               | 
| | Net income (loss) for the period | $ | 10,296        |  | $ | 51,136        | 

|5. | BANK INDEBTEDNESS
        The Companys Belgium subsidiary, ATS, has available a bank credit
          facility of approximately $266,000 (247,000 Euros) which can be used
          for operating purposes. This credit facility bears interest at the banks
          base rate plus 1.25% and is secured by certain assets of ATS. The Company
          has executed a postponement agreement in favour of the bank. Under the
          agreement, the Company may not cause the ATS subsidiary to pay dividends
          to the Company or otherwise make payments to other companies in the
          group without the consent of the bank.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|6. | RELATED PARTY TRANSACTIONS
        The Company incurred the following amounts to related parties during
          the nine-month period ended September 30, 2003 and 2002, respectively:                                                                                                                                                                                                                                                                                                                                                                                                                                                              

| |     |                                                                   |   | September 30, |  |   | September 30, | 
| | --- | ----------------------------------------------------------------- | - | ------------- |  | - | ------------- | 
| |     |                                                                   |   | 2003          |  |   | 2002          | 
| |     |                                                                   |   |               |  |   |               | 
| | (a) | Consulting fees to a company controlled by an officer             | $ | 69,970        |  | $ | 63,380        | 
| | (b) | Professional fees paid to a firm in which a director is a partner | $ | 17,467        |  | $ | 64,214        | 
| | (c) | Amount owed to a company controlled by an officer included        |   |               |  |   |               | 
| |     | in accounts payable                                               | $ | 93,870        |  | $ | 14,840        | 
| | (d) | Rent paid to SDL Invest N.V. (Belgium)                            | $ | -             |  | $ | 74,150        | 

12

---

|AUCXIS
        CORP.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Expressed in U.S. dollars)
|---------------------------------------------------------------------------------------------
|NINE MONTHS ENDED SEPTEMBER 30, 2003                                                         

|7. | MANDATORY REDEEMABLE SHARES OF COMMON STOCK
        During the nine-month period ended September 30, 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.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|8. | SEGMENTED INFORMATION
        The Company operated in one operating segment, this being the installation
          of auction clocks and cooling systems in Belgium. Resources are allocated
          based on revenue and overall profitability by the Companys chief
          operating decision maker as defined by SFAS No. 131 Disclosures
          about Segments of an Enterprise and Related Information.                                                                                                                                                                                                                                                                                                                                                                

|       |                                                                                                                                                 |   | Nine Months   |  |   | Nine Months   |  
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------- |  | - | ------------- | -
|       |                                                                                                                                                 |   | Ended         |  |   | Ended         |  
|       |                                                                                                                                                 |   | September 30, |  |   | September 30, |  
|       |                                                                                                                                                 |   | 2003          |  |   | 2002          |  
|       | Revenue                                                                                                                                         |   |               |  |   |               |  
|       | Belgium                                                                                                                                         | $ | 1,226,880     |  | $ | 4,172,485     |  
|       |                                                                                                                                                 |   |               |  |   |               |  
|       | Net income (loss) for the period                                                                                                                |   |               |  |   |               |  
|       | Canada                                                                                                                                          | $ | 319,256       |  | $ | (747,370      | )
|       | Belgium                                                                                                                                         |   | 39,226        |  |   | 51,136        |  
|       |                                                                                                                                                 | $ | 358,482       |  | $ | (696,234      | )
|       |                                                                                                                                                 |   |               |  |   |               |  
|       |                                                                                                                                                 |   | September 30, |  |   | December 31,  |  
|       |                                                                                                                                                 |   | 2003          |  |   | 2002          |  
|       | Identifiable long lived assets                                                                                                                  |   |               |  |   |               |  
|       | Canada                                                                                                                                          | $ | 18,900        |  | $ | 24,558        |  
|       | Belgium                                                                                                                                         |   | 1,008,000     |  |   | 572,650       |  
|       |                                                                                                                                                 | $ | 1,026,900     |  | $ | 597,208       |  
|       |                                                                                                                                                
|**9.** | INCOME AND LOSS PER SHARE
      The following table represents the calculation of basic and diluted
        net income (loss) per common share:

| |                                                                                                                                                                                                                                                                          |   | Nine Months   |  |   | Nine Months   |  
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | ------------- |  | - | ------------- | -
| |                                                                                                                                                                                                                                                                          |   | Ended         |  |   | Ended         |  
| |                                                                                                                                                                                                                                                                          |   | September 30, |  |   | September 30, |  
| |                                                                                                                                                                                                                                                                          |   | 2003          |  |   | 2002          |  
| |                                                                                                                                                                                                                                                                          |   |               |  |   |               |  
| | Net income (loss)                                                                                                                                                                                                                                                        | $ | 355,509       |  | $ | (696,234      | )
| |                                                                                                                                                                                                                                                                          |   |               |  |   |               |  
| | Weighted-average shares used in computing basic net                                                                                                                                                                                                                      |   |               |  |   |               |  
| | income (loss) per share                                                                                                                                                                                                                                                  |   | 62,773,051    |  |   | 62,738,926    |  
| | Dilutive effect of common share equivalents                                                                                                                                                                                                                              |   | -             |  |   | -             |  
| |                                                                                                                                                                                                                                                                          |   |               |  |   |               |  
| | Weighted-average shares used in computing diluted net                                                                                                                                                                                                                    |   |               |  |   |               |  
| | income (loss) per share                                                                                                                                                                                                                                                  |   | 62,773,051    |  |   | 62,738,926    |  
| |                                                                                                                                                                                                                                                                          |   |               |  |   |               |  
| | Basic net income (loss) per share                                                                                                                                                                                                                                        | $ | 0.01          |  | $ | (0.01         | )
| |                                                                                                                                                                                                                                                                          |   |               |  |   |               |  
| | Diluted net income (loss) per share                                                                                                                                                                                                                                      | $ | 0.01          |  | $ | (0.01         | )
| |                                                                                                                                                                                                                                                                         
| | For the nine months ended September 30,
        2003, potential common shares in the form of stock options to purchase
        3,054,500 shares of common stock, were anti-dilutive and therefore not
        included in the computation of diluted earnings per share.

13

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|AUCXIS
        CORP.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Expressed in U.S. dollars)
|---------------------------------------------------------------------------------------------
|NINE MONTHS ENDED SEPTEMBER 30, 2003                                                         

|**10.** | COMMITMENTS AND CONTINGENCIES
        The Company has an outstanding commitment to sell its remaining 40%
          investment in SDL Invest N.V., an equity method investee of the Companys
          Belgium subsidiary, to a former director of ATS under the terms of an
          option held by the former ATS director.
        Litigation
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                   
|        | a)                                                                                                                                                                                                                                                                                                                                                
|        |                                                                                                                                                                                                                                                                                                                                                   
|        | b)                                                                                                                                                                                                                                                                                                                                                

14

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

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

Overview

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

Aucxis currently has a wholly owned subsidiary, e-Auction
  (Barbados), which in turn has one wholly owned subsidiary, Aucxis Corp. (Canada).
  The Company also owns Aucxis Corp. (Belgium) (Aucxis NV), directly,
  which in turn has a 92.5% ownership in Aucxis Trading Solutions, N.V. (ATS)
  (formerly Schelfhout Computer Systemen N.V.), a Belgium company. Aucxis Trading
  Solutions N.V. in turn has a 33.3.% interest in Auction Trading Services Nederland
  BV (ATS Holland) formed in partnership with two of the largest flower
  auctions.

On April 11, 2003 Aucxis NV, voluntarily filed for bankruptcy.
  A trustee in bankruptcy has been entrusted with Aucxis NVs management
  and the realization of its assets for the benefit of its creditors. Court proceedings
  for the final verification of claims took place on June 5, 2003. Management
  of the Company is working with the trustee to maximize the proceeds received
  for ATS and to ensure there is little disruption to employees and normal business
  operations. Accordingly, the Company ceased consolidating the operations of
  Aucxis NV effective April 11, 2003.

ATS (formerly Schelfhout) is a solutions provider for perishable
  commodity (fish, flower, fruits and vegetables) auction houses. Over the past
  17 years ATS has developed trading systems for numerous selling organizations
  all over the world. ATS delivers the tools to bring together supply and demand
  under optimum conditions and thus create a better market situation. ATS has
  focused on two market sectors: (i) the computerization of auctions and (ii)
  automation for the preservation of perishable products. As an ancillary to the
  auction system, a modular graphic display panel was developed by ATS in 1992
  and added to the product range. ATS is engaged in the installation and maintenance
  of auction clock and cooling systems for traditional auction halls and the development
  of software for auctions, including Internet-based auction systems.

The company has temporarily suspended development of e-business
  services for the perishable commodity marketplace pending further review. Aucxis
  continues to maintain a staging environment in Toronto, Canada for
  testing and further research and development. It is managements intention
  to review business opportunities in this area in order to evaluate alternatives
  to maximize shareholder value.

15

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Highlights of the Quarter

Effective April 11, 2003, the Company has voluntarily relinquished
  control of Aucxis NV to a trustee in bankruptcy and, accordingly, has deconsolidated
  the subsidiary and ceased consolidating the operations of ATS. the 92.5% owned
  subsidiary of Aucxis NV. As a result, revenue for the three months ended September
  30, 2003 was $nil compared to $1,561,714 in the same three-month period in 2002.
  There were no costs of sales in the current quarter compared to $398,622 in
  the corresponding three-month period in 2002. Revenue for the nine months ended
  September 30, 2003 was $2,945,605 lower that the corresponding nine months in
  2002, due to the deconsolidation.

Selling, general and administrative expense for the quarter
  ended September 30, 2003 was $47,651 as compared to $1,106,958 for the corresponding
  three-month period in 2002. Depreciation and amortization expense for the quarter
  was $2,328 compared to $111,982 in the prior year period. Total operating expenses
  for the nine months ended September 30, 2003 were $1,143,005 compared to $3,088,800
  in the corresponding nine month period in the prior year. The reason for the
  sharp decline in expenses is because the company ceased consolidating the operations
  of ATS.

Net income for the nine months ended September 30, 2003 was
  $355,509, compared to a net loss of $696,234 for the corresponding prior year
  period. Included in income is a gain of $542,295 from the cancellation of 454,545
  mandatory redeemable common shares. During the quarter ended March 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. This gain has been offset by operational losses in the nine months ended
  September 30, 2003. The company had a net loss of $49,065 for the quarter ended
  September 30, 2003 compared to a net loss of $132,801 for the same quarter in
  2002. The significant reduction in the net loss is due to the exclusion of the
  ATS results as described above.

Management continues to manage costs while simultaneously
  exploring various strategic options for the Company. Management will be reviewing
  the Collateral Management Utility (CMU) and related hardware to determine if
  the CMU justifies additional research and development. It is expected that this
  review will lead to discussions with interested parties for the development
  or sale of the CMU, depending on the outcome of any financings or the sale of
  ATS.

Liquidity and Capital Resources

As at September 30, 2003, the Company had a cash balance of
  $18,602 compared to $617,811 at December 31, 2002. The significant decrease
  is due to the deconsolidation of Aucxis NV as discussed above. Future cash flows
  for the Company will be derived from recovery of outstanding receivables, the
  sale of redundant assets, the success of future external financing initiatives
  and proceeds from the sale of ATS. Management continues to examine a variety
  of options to raise additional financing. Aucxis is continuing cost management
  initiatives, including decreasing operating costs and working with creditors
  regarding outstanding payables. It is not possible at this time to predict with
  any assurance the success of any of these initiatives, however management is
  working diligently towards the goal of self-sustainability.

Critical Accounting Policies

The Company's discussion and analysis of its financial condition
  and results of operations are based upon the consolidated financial statements,
  which have been prepared in accordance with accounting principles generally
  accepted in the United States of America. The preparation of financial statements
  require managers to make estimates and judgments that affect the reported amounts
  of assets and liabilities, revenues and expenses and disclosures on the date
  of the financial statements. On an on-going basis, the Company evaluates its
  estimates, including, but not limited to, those related to revenue recognition.
  The Company uses authoritative pronouncements, historical experience and other
  assumptions as the basis for making judgments. Actual results could differ from
  those estimates.

16

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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,
  2003. 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 1.    Legal Proceedings

There are no developments from the previous quarter.

Item 5.    Other Information

The Company has no other information to report.

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
| |                                                |                                                                                                                             
| | The Company has no exhibits to file.          
| |                                                |                                                                                                                             
| | (b)                                            | Reports on Form 8-K                                                                                                         
| |                                                |                                                                                                                             
| | The Company has no reports on Form 8K to file.

SIGNATURES

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

|Date: | November 19, 2003 | Aucxis Corp.
|----- | ----------------- | ------------
|      |                   | (Registrant)
|      |                   |             
|      |                   | By:         
|      |                   |             
|      |                   |             
|      |                   |             

17

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