SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                          AMENDMENT NO. 1 to FORM 10-KSB

                 Annual Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

[X]  ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT OF 1934

                              For Fiscal Year Ended
                                 March 31, 2003

                           Commission File # 333-69686

                            ANSCOTT INDUSTRIES, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

                                     Florida
                                     -------
                (State or other jurisdiction of incorporation or
                                  organization)

                                   86-0000714
                                   ----------
                      (IRS Employer Identification Number)

                    26 Haynes Drive, Wayne, New Jersey 07470
                    ----------------------------------------
              (Address of principal executive offices ) (Zip Code)

                                  (973)696-7575
                                  -------------
                (Registrant's telephone no., including area code)


              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

                                      None

Securities registered pursuant to Section 12(g) of the Act:

                         Common Stock, $0.0001 par value

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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 if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B not contained in this form, and no disclosure will be contained,
to the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. ( )

Revenues for year ended March 31, 2003: $2,480,727.

Aggregate market value of the voting common stock held by non-affiliates of the
registrant as of July 14, 2003, was: $6,237,482.

Number of shares of the registrant's common stock outstanding as of July 14,
2003 was: 45,685,806

Transfer Agent as of July 14, 2003:

                             Standard Register and Transfer Company
                              12528 South 1840 East
                               Draper, Utah 84020

<PAGE>

                                     PART I
                                     ------

Item 1.  Description of Business

Business Development. We were formed in New York on June 28, 1996 under the name
Learners World, Inc. with the intent to own and operate facilities for the care,
education and recreation of children. On September 26, 2001 (the "Effective
Date"), pursuant to a Stock Purchase Agreement and Share Exchange between
Learners World, Inc. ("Learners World"), a Florida corporation and Liquidics,
Inc. ("Liquidics") a Nevada corporation, Learners World, Inc. acquired all of
the shares of Advanced Fluid Systems, Inc. ("Advanced Fluid") from Liquidics.
Pursuant to the terms of the Agreement, Liquidics sold Advanced Fluid to
Learners World and paid $400,000 to Learners World in consideration for the
issuance of 27,000,000 Learners World shares to the Liquidics shareholders.
Pursuant to the Agreement, Advanced Fluid became a wholly owned subsidiary of
the Company. In addition, we changed our name to Liquidix, Inc. and
redomesticated in the State of Florida.

Pursuant to this Agreement, through Advanced Fluid we were principally engaged
in developing, manufacturing and marketing ferrofluids and products based on or
derived from its ferrofluid technology. Ferrofluids are stable magnetic liquids
that can be precisely positioned or controlled with a magnetic force.
Ferrofluids consist of molecular-sized magnetic particles that are surface
treated so that they can be dispersed in various fluids, usually a synthetic low
vapor pressure oil. Ferrofluids are designed to have a choice of properties such
as viscosity, magnetic strength and vapor pressures to perform numerous specific
function which is sealing. We currently sell our industrial products to the
semiconductor, optical, thin film coating and the vacuum industry.

On April 15, 2003, pursuant to a Stock Purchase Agreement and Share Exchange
between us AFS Seals, Inc and Anscott Industries, Inc., we acquired all of the
shares of Anscott from the Anscott shareholders in consideration for the
issuance of a total of 45,000,000 shares of our common stock to the Anscott

board of directors and the transfer of all of our current assets and liabilities

to AFS. Pursuant to the Agreement, Anscott became a wholly owned subsidiary of
the Company and we filed articles of amendment in the state of Florida changing
our name to Anscott Industries, Inc. We maintain our principal offices at 26
Haynes Drive, Wayne, New Jersey 07470 and our telephone number is (973)696-7575.

We have not been involved in any bankruptcy, receivership or similar proceeding.
We have not been involved in any material reclassification, merger,
consolidation, or purchase or sale of a significant amount of assets not in the
ordinary course of business.


We changed accountants on February 16, 2004 from Sellers & Anderson, LLC to our
current accountants, Madsen & Associates, CPA's Inc.

Section 102 of the Sarbanes-Oxley Act of 2002 makes it unlawful after October
22, 2003 for any person that is not a registered public accounting firm (i.e.,
registered with the PCAOB) to prepare or issue, or to participate in the
preparation or issuance of any report with respect to an issuer. Sellers &
Anderson, LLC is not registered with the PCAOB, but issued a draft audit opinion
dated July 11, 2003 that was incorporated into our original Form 10-K, dated
July 14, 2003. Although registration with PCAOB was not required for public
accounting firms on the filing date of the Form 10-K, the accountant labeled the
financial statements as a "draft". Therefore, we have had our new accountants,
Madsen & Associates, CPA's Inc. re-audit the financial statements in this
Amendment No. 1 to Form 10-K.

At no time has there been any disagreements with such accountants regarding any
matter of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure.



                                       1
<PAGE>

Business of Issuer.

Based on the Agreement and spin off of our assets, we adopted the business plan
of Anscott Industries, Inc. Therefore, currently our principal activity is to
manufacture and sell specialty chemicals, cleaning agents, odor eliminators,
water and stain repellents, treatments, purification and decontamination
processes for the commercial laundry and cleaning industries. Our business is
conducted through three segments: chemical & additive technology for cleaning
and coatings of textiles; filtration & equipment that extends the life
traditional cleaning chemicals through a recycling process; commercialization
venture leveraging aerospace technology and distribution in order to move from
laboratory to commercial products quickly, extending the company's knowledge to
deliver solutions to protect people, property and the environment. We have our
operations in New Jersey and Quebec. We sell to over 100 distributors and 4,000
end-users worldwide. Chemicals & Additives products accounted for 80% of Anscott
Industries, Inc. (subsidiary) 2002 revenues; Filtration & Equipment, 20%;
Commercialization, 0%.

We were established in 1960 and are a leading manufacturer servicing the laundry
and dry cleaning industry. We manufacture chemicals and filter equipment that
clean clothes professionally. We sell our products and services through an
established distribution network of local warehouses nationwide. We maintain a
dedicated force of chemical technicians that provide service throughout the US
and Canada. The following sets forth some of our products:

We have recently acquired the rights to a method of non-hazardous dry cleaning
called the "DryWash Cleaning Process". DryWash replaces "PERC", a probable
carcinogen and hazardous material by utilizing liquid carbon dioxide and
aerospace technology. DryWash has revolutionized the commercial dry cleaning
industry by providing a low cost alternative without toxic chemicals such as
perchloroethylene (perc) or petroleum.

We are a specialty chemical company with a product line of disposable filters &
delivery systems adding in the sales of its chemical business. We have one of
the largest technical forces in the industry. Currently servicing over 5,000
businesses in more than 40 cities and we expect to service over 10,000
businesses within the next two years.

We develop products that are unique and satisfy a specific need. The DryWash
Cleaning Process has been commercialized through a joint venture with Itochu
Aviation, a Japanese aerospace trader. Other development partners include
Raytheon Systems, Los Alamos National Laboratory and Unilever.

We have recently acquired the rights to a method of non-hazardous dry cleaning
called the "DryWash Cleaning Process". DryWash replaces "PERC", a probable
carcinogen and hazardous material by utilizing liquid carbon dioxide and
aerospace technology. DryWash is in position to revolutionize the cleaning
industry by providing a low cost alternative without toxic chemicals such as
perchloroethylene (perc) or petroleum. We manufactures chemicals and disposable
filters that clean clothes professionally. Our technology arm is the exclusive
licensee of Raytheon Systems Company (formally HUGHES AIRCRAFT) for the DryWash
Cleaning Process.

We have expanded our exclusive role to include a sub-licensing program. To date
the technology has been sub-licensed to eight of the industries largest
manufacturers. The licensing group of companies has collectively invested over
$200 million into the development of the DryWash Cleaning process. EPA, DOE and
DOD have also contributed directly and through Los Alamos National Laboratory.

We sell our products and services through an established distribution network of
local warehouses nationwide. We maintain a dedicated force of chemical
technicians that provide service throughout the US and Canada. The following
sets forth some of our products:

                                       2
<PAGE>

o    Flame Fighter is an approved fire retardant that protects Drapes, Clothes
     and Textiles. It's perfect for Hotels, Office Buildings and Homes.

o    XPel Fabric Protector is a barrier coating that protects against all sorts
     of fluids such as blood that carries HIV or Hepatitis, Formulated for
     Hospital Scrubs, Police Uniforms and Protective Gear for professionals.

o    Smoke Out Odor Neutralizer removes all type of foul odors. It was
     specially formulated to remove Smoke, Pet and Musty Smells.

o    Rx is the prescription to clean hard to remove Paint, Oil and Grease
     Stains. Professionally formulated to be safe and effective.

o    NuTouch is an advanced Cleaning Detergent that is Better, Whitener and
     Softer than other products.

o    HyPur Filters Recycle Chemicals and Improve Cleaning Performance.

We manage the following three specific areas of business:

Caled Chemical, established 1953, is a leading manufacturer of traditional
cleaning products. The products for existing cleaning methods include a full
line of brand name detergents, spotting agents and XPel Fabric Protection. Caled
has developed specially formulated additives for DryWash technology. Unilever
Corporation and Raytheon have been working closely with Caled and currently hold
over twenty (20) worldwide patents for cleaning with carbon dioxide.

o    All the chemical products translate 43 years of cleaning knowledge and
     experience into practical cleaning applications customized for the
     specialized needs of the market.

o    Caled's products are practical and easy to use, developed by Ph.D. chemists
     on staff. The chemists explain the basic use of the products in unusually
     clear and easy-to-understand terms.

HyPur Equipment, established 1971, currently manufacturers filter equipment for
existing dry cleaning machines.

o    High quality and technical service is the key to HyPur's long-standing
     customer base.

o    HyPur has been innovative and aggressive in new product development.



                                       3
<PAGE>

Tech Services, is a self-standing field service division that has 22 technical
service representatives. Tech Services is the only national service network that
serves professional dry cleaners and laundries. It currently represents three
product lines and is in the process of adding additional line needing technical
service at the field level.

Tech Services has constructed a promotional site for new technology. The
promotional site will be used to showcase different pieces of equipment. The
site is located less than 30 min. from New York City and will also act as a
training facility for distributors on a worldwide basis.

Employees

We currently employ a total of 32 full time and 8 part time employees in the
following manner: 22 field technicians and 18 headquarters personnel. None of
our employees are covered by a collective bargaining agreement and we believe we
have good relations with our employees.

Item 2. Description of Property

We own the property located at 26 Haynes Drive, Wayne, New Jersey 07470. We have
a 20 year term mortgage with a 1.75 % over prime with CIT as the lender. This
property is our headquarters and is comprised of 41,000 square feet with 4,000
square feet of office space and laboratory and the rest is warehouse for our
products.

Item 3. Legal Proceedings

None. To the best of our knowledge there is no litigation current or pending
against us. The lawsuits set forth in the financial statements are not against
Anscott Industries, Inc.

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

None



                                       4
<PAGE>

                                     PART II
                                     -------

Item 5. Market for Registrants's Common Equity and Related Stockholder Matters

On July 14, 2003, we had 568 shareholders of record of our common stock. Our
common stock is available for trading through electronic trading services via
the OTC Bulletin Board.

Our common stock is currently traded on the OTC Bulletin Board under the symbol
"ASCT." The following charts indicate the high and low sales price for the
common stock for each fiscal quarter between September 2000 and March 2003, as
quoted on the OTC Bulletin Board. These quotations reflect inter-dealer prices,
without retail mark-up, mark-down or commission, and may not represent actual
transactions.

                                                Price $
Quarter Ended                        High                     Low
-------------                        ----                     ---
September 2000                       0.97                    0.38
December 2000                        0.56                    0.03
March 2001                           0.06                    0.02
June 2001                            0.03                    0.01
September 2001                       0.90                    0.01
December 2001                        4.43                    1.74
March 2002                           2.33                    1.20
June 2002                            1.51                    0.35
September 2002                       0.45                    0.13
December 2002                        0.27                    0.10
March 31, 2003                       0.17                    0.05

Dividends

We currently intend to retain future earnings, if any to support our growth. Any
payment of cash dividends in the future will be dependent upon: the amount of
funds legally available therefore; our earnings; financial condition; capital
requirements; and other factors which our Board of Directors deems relevant.

Item 6. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

INTRODUCTION

The following discussion should be read in conjunction with our financial
statements and related notes included herein. Certain statements are not based
on historical facts, but are forward-looking statements that are based upon
assumptions about our future conditions that could prove to be inaccurate.
Actual events, transactions and results may materially differ from the
anticipated events, transactions or results described. Our ability to consummate
transactions and achieve events or results is subject to certain risks and
uncertainties, which include, but are not limited to, the existence of demand
for and acceptance of our products, regulatory approvals and developments,
economic conditions, the impact of competition and pricing, and other factors
affecting our business that are beyond our control.

We undertake no obligation and do not intend to update, revise or otherwise
publicly release the result of any revisions to forward-looking statements that
may be made to reflect future events or circumstances.

YEAR ENDED MARCH 31, 2003 COMPARED TO THE YEAR ENDED MARCH 31, 2002

Revenues for the year ended March 31, 2003 were $2,480,727 as compared to
$2,312,579 for the year ended March 31, 2002. Sales remained stable even with
the continuing downturn in the market.

Cost of sales for the year ended March 31, 2003 were $1,421,889 as compared to
$1,336,082 in 2002. As of percentage of sales, cost of sales decreased 1% for
2003. This was due to the stability of sales and prices.

                                       5
<PAGE>

General and administrative expenses were $1,599,787 for 2002 as compared to
$1,915,803 for 2003. As of percentage of sales, general and administrative
expenses increased from 69% for 2002 to 77% for 2003. The increase was primarily
due to a one-time charge from the issuance of common stock for consulting
services and additional personnel in the United Kingdom and rent for a larger
facility.

For the year ended March 31, 2003, we incurred a net operating loss of $925,133
or $1.38 per share compared to net operating loss of $1,139,529 or $1.79 per
share for the year ended March 31, 2002. The net loss resulted primarily from
stagnant business operations.

IMPACT OF INFLATION

We do not believe that inflation will have any material impact on its commercial
activities for the ensuing year, as our products do not fall under categories
that are traditionally affected.

LIQUIDITY AND CAPITAL RESERVES

The primary roadblock facing our plans for growth is our need for capital. We
are actively seeking additional capital resources through the sale of equity.
With additional capital resources we expect to be able to expand our services
and products. At the present time we have adequate working capital for our
immediate business. Additional capital is needed for any and all expansion. We
have no long-term debt, which assists in not needing additional immediate
working capital. Historically, the Company's primary source of cash has been
from operations and debt financing by related parties.

Cash provided by operating activities during 2003 declined by (708,578)
primarily the result of increases in accounts receivable in the amount of
$107,622 and a decrease in accrued liabilities and accrued expenses of $231,727.

Cash provided by operating activities during 2002 amounted to $252,212,
primarily the result of increases in accounts receivables and inventory of
$413,490 and 100,360 respectively.

Cash received in financing activities during 2003 amounted to $397,000 related
primarily to an increase in notes payable.

Cash used by financing activities during 2002 amounted to $21,686 related
primarily to the prepayment of debt from the prior year.

PLAN OF OPERATIONS FOR FISCAL YEAR 2003

We anticipate that as sales increase we will achieve profitability during fiscal
year 2003. Future activities will be directed towards expanding existing markets
for our products and penetrating new markets. We currently have operations in
the United States and in Great Britain. Future expansion plans will move us into
the Pacific Rim.

Advanced Fluid Systems, Ltd., our subsidiary has received a patent in Europe and
the United States for its controllable fluid damper. This special damper acts as
a shock absorber. Instead of using a metal coil spring, it uses the controllable
fluid to soften the jolting effect felt now with a conventional shock absorber.
Prototypes and some additional testing are needed before this product is
marketable. Discussions have been held with a major manufacturer to joint
venture the final developing.

We do not manufacture our own magnetic fluid or controllable fluid for
production. Our present supplier of fluid has approached us with the possibility
of purchasing their company. The purchase of this company would eliminate any
probability of the loss of a critical part of our production process. We are in
active talks with our fluid supplier and terms should be worked out for the
purchase before the end of the year. The damper and purchase of our fluid
supplier will be put into operation if adequate funding is received. We have
sufficient cash flow to manage the day-to-day operations of completing all
ongoing orders. We have agreed upon terms with a private investor for funding.
In addition, we have entered into various consulting agreements to advise and
consult with the Company on certain business and financial matters in foreign
markets and for business development advisory services.

                                       6
<PAGE>

Item 7. Financial Statements and Supplementary Data

The financial statements of the Company, together with the report of auditors,
are as follows:


                                 LIQUIDIX, INC.

                               TABLE OF CONTENTS




Independent Accountant's Report                                          F1
   Madsen & Associates, CPA's, Inc.

Independent Accountant's Report                                          F2
   Certified Public Accountans

Consolidated Balance Sheet                                               F3

Consolidated Statement of Operations                                     F4

Consolidated Statement of Changes in Stockholder's Equity                F5

Consolidated Statements of Cash Flows                                 F6-F7

Notes to Consolidated Statements                                     F8-F17


<PAGE>


                         INDEPENDENT ACCOUNTANTS' REPORT
                         -------------------------------

To the Stockholders and Board of Directors of
Liquidix, Inc. and Subsidiary

We have audited the accompanying consolidated balance sheet of Liquidix, Inc.
and Subsidiary ("Liquidix, Inc.," or "the Company") for the year ended March 31,
2003, and the related consolidated statements of operations, changes in
stockholders' equity, and cash flows for the year then ended. These consolidated
financial statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audit.

We conducted our audit in accordance with standards of the Public Company
Accounting Oversight Board ("PCAOB"). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the consolidated financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall consolidated financial statement presentation. We
believe our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Liquidix, Inc. and
Subsidiary as of March 31, 2003 and the results of its operations, changes in
stockholders' equity, and its cash flows for the year then ended in conformity
with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. The Company does not have the
necessary working capital to service its debt and for its planned activity,
which raises substantial doubt about its ability to continue as a going concern.
Management's plans regarding these matters are described in the notes to the
consolidated financial statements. The consolidated financial statements do not
include any adjustments that might result from the outcome of this uncertainty.


/s/ Madsen & Associates, CPA's, Inc.

Madsen & Associates CPA's, Inc.
Certified Public Accountants

Murray, Utah
May 25, 2004


                                       F1

<PAGE>

                         INDEPENDENT ACCOUNTANTS' REPORT
                         -------------------------------

To the Stockholders and Board of Directors of
Liquidix, Inc. (formerly Learner's World, Inc.)
(A Subsidiary of Liquidics, Inc.)


We have audited the  accompanying  consolidated  statements of  operations,
changes  in  stockholders'  equity,  and  cash  flows  of  Liquidix,   Inc.
(formerly  Learner's  World,  Inc.) (a Subsidiary  of Liquidics,  Inc.) for
the year ended March 31,  2002.  These  consolidated  financial  statements
are the  responsibility  of the Company's  management.  Our  responsibility
is to express an opinion on these consolidated  financial  statements based
on our audits.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the consolidated financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall consolidated financial statement presentation. We
believe our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the results of operations, changes in
stockholders' equity, and cash flows of Liquidix, Inc. (formerly Learner's
World, Inc.) (a Subsidiary of Liquidics, Inc) for the year ended March 31, 2002
in conformity with accounting principles generally accepted in the United States
of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 11 to the
financial statements, the Company has a net loss in the current year and an
accumulated deficit. This condition raises substantial doubt about its ability
to continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.


Certified Public Accountants

Phoenix, Arizona
July 1, 2002


                                       F2


<PAGE>

                           LIQUIDIX, INC. & SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                 March 31, 2003


                                     ASSETS

<TABLE>
<CAPTION>

Current Assets
<S>                                                                                      <C>
   Cash and cash equivalents                                                             $        96,521
   Accounts receivable                                                                           553,312
   Inventory                                                                                     411,036
                                                                                        -----------------

              Total Current Assets                                                             1,060,869
                                                                                        -----------------

Property and Equipment, net                                                                      182,814
                                                                                        -----------------

Other Assets
   Acquisition costs, net                                                                        192,346
   All other assets                                                                               16,500
                                                                                        -----------------

              Total Other Assets                                                                 208,846
                                                                                        -----------------

              Total Assets                                                               $     1,452,529
                                                                                        =================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
   Accounts payable                                                                      $       678,738
   Notes payable                                                                                 587,446
   Accrued liabilities                                                                            35,642
   Allowance for contingencies                                                                    50,000
                                                                                        -----------------

              Total Current Liabilities                                                        1,351,826
                                                                                        -----------------

Minority interest                                                                                    566
                                                                                        -----------------


Stockholders' Equity
   Common stock - $.001 par value,   75,000, 000 shares authorized
   (684,269 Shares issued and outstanding)                                                           684
   Paid in Capital                                                                             3,543,648
   Accumulated (deficit)                                                                      (3,590,299)
   Foreign currency translation adjustment                                                       146,104
                                                                                        -----------------

              Total Stockholders' Equity                                                         100,137
                                                                                        -----------------

              Total Liabilities and Stockholders' Equity                                 $     1,452,529
                                                                                        =================

</TABLE>


                  The Accompanying Notes are an Integral
               Part of the Consolidated Financial Statements

                                       F3

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                   For the Years Ended March 31, 2003 and 2002
<TABLE>
<CAPTION>

                                                                              2003                    2002
                                                                     ----------------------    ------------------
<S>                                                                       <C>                     <C>
Sales                                                                     $      2,460,727        $    2,312,579

Cost of Sales                                                                    1,421,699             1,336,082
                                                                     ----------------------    ------------------

Gross Profit                                                                     1,039,028               976,497

General and Administrative Expenses                                              1,816,803             1,599,787
                                                                     ----------------------    ------------------

(Loss) from Operations                                                            (777,775)             (623,290)
                                                                     ----------------------    ------------------

Other Income (Expenses)
   Interest income                                                                     386                 1,121
   Interest expense                                                                (48,902)              (20,067)
   Impairment of license agreement                                                       -              (500,000)
   Provision for contingencies                                                     (50,000)                 -
                                                                     ----------------------    ------------------
Total Other Income (Expense)                                                       (98,516)             (518,946)

Minority Interest                                                                      876                 2,707
                                                                     ----------------------    ------------------

Net (Loss)                                                                $       (875,415)       $   (1,139,529)
                                                                     ======================    ==================


Basic and Diluted (Loss) per Common Share                                 $          (1.31)       $        (0.81)
                                                                     ======================    ==================

Weighted-Average Number of Common Shares Outstanding:
   Basic and Diluted                                                               668,223             1,411,082
                                                                     ======================    ==================



</TABLE>

                     The Accompanying Notes are an Integral
                  Part of the Consolidated Financial Statements


                                       F4

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
                   For the Years Ended March 31, 2003 and 2002
  ---------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                             Additional                 Cumulative       Total
                                                       Common Stock          Paid-In      Accumulated   Translation   Stockholders'
                                                  Shares       Amount        Capital        Deficit       Account        Equity
                                                 ---------   -----------   -----------   -----------   -----------   -----------

<S>                                              <C>         <C>           <C>           <C>           <C>           <C>
Balance at March 31, 2001                        1,350,000   $     1,350   $ 2,031,523   $(1,575,355)  $    41,406   $   498,924

Merger with Learner's World, Inc. and
    recapitalization of equity                       5,000             5            (5)           --            --            --

Issuance of common stock for
    services                                       117,500           118       305,382            --            --       305,500


Capital contribution                                    --            --       903,014            --            --       903,014


Translation adjustment                                  --            --            --            --       (30,180)      (30,180)

Loss for the year ended March 31, 2002                  --            --            --    (1,139,529)           --    (1,139,529)
                                                 ---------   -----------   -----------   -----------   -----------   -----------


Balance at March 31, 2002                        1,472,500         1,473     3,239,914    (2,714,884)       11,226       537,729


Cancellation issued stock for non performance      (12,500)          (13)      (25,013)                                  (25,026)


Issuance of stock for conversion of debt            33,107            33        52,938                                    52,971


Stock issued for services                           13,750            13       274,987                                   275,000


Translation adjustment                                  --            --            --            --       134,878       134,878

Cancellation of treasury stock                    (822,588)         (822)          822                                        --


Loss for the period ended March 31, 2003
                                                        --            --            --      (875,415)           --      (875,415)
                                                 ---------   -----------   -----------   -----------   -----------   -----------

Balance at March 31, 2003                          684,269   $       684   $ 3,543,648   $(3,590,299)  $   146,104   $   100,137
                                                 =========   ===========   ===========   ===========   ===========   ===========

</TABLE>

                     The Accompanying Notes are an Integral
                  Part of the Consolidated Financial Statements

                                       F5


<PAGE>


                          LIQUIDIX, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                   For the Years Ended March 31, 2003 and 2002

<TABLE>
<CAPTION>

                                                                                    2003                2002
                                                                              -----------------   -----------------

Cash flows from operating activities:
<S>                                                                                <C>               <C>
   Net Income (Loss)                                                               ($875,415)        ($1,139,529)

Adjustments to reconcile net income (loss) to net cash provided
  by operating activities:
     Depreciation and amortization                                                    49,284             100,482
     Stock issued for services                                                       275,000             305,500
     Stock issued for debt                                                            52,971                   -
     Cancellation of issued stock for non performance                               (25,026)                   -
     Net assets acquired in acquisition                                                   -              155,154
     Impairment of license agreement                                                      -              500,000
     Minority Interest                                                                 (876)              (2,707)
Changes in Assets and Liabilities:
     Accounts receivable                                                            (114,335)            413,491
     Inventory                                                                        (4,722)            100,363
     Other assets                                                                     32,245              47,223
     Accounts payable                                                                128,951            (166,937)
     Accrued liabilities                                                            (231,737)            (60,826)
     Allowance for contingencies                                                      50,000                   -
                                                                              -----------------   -----------------

              Net cash provided (used) by operating activities                      (663,660)            252,214
                                                                              -----------------   -----------------

Cash flows from investing activities:
     Minority Interest                                                               (16,070)             20,219
     Purchase of fixed assets                                                       (138,388)             (6,498)
                                                                              -----------------   -----------------

              Net cash provided (used) by investing activities                      (154,458)             13,271
                                                                              -----------------   -----------------

Cash flows from financing activities:
     Repayment of capital lease                                                            -             (11,850)
     Proceeds from (repayment of) debt, net                                          334,071              (9,836)
                                                                              -----------------   -----------------

              Net cash provided (used) by financing activities                       334,071             (21,686)
                                                                              -----------------   -----------------

Effect of exchange rate changes on cash and intercompany
   accounts                                                                          134,878             (30,180)
                                                                              -----------------   -----------------

Net increase (decrease) in cash and cash equivalents                                (349,169)            214,069

Cash and cash equivalents at beginning of period                                     445,690             231,621
                                                                              -----------------   -----------------

Cash and cash equivalents at end of period                                          $ 96,521            $445,690
                                                                              =================   =================


</TABLE>




                  The Accompanying Notes are an Integral
               Part of the Consolidated Financial Statements

                                       F6


<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
                   For the Year Ended March 31, 2003 and 2002
<TABLE>
<CAPTION>

                                                                                            2003                2002
                                                                                      -----------------   -----------------

Supplemental disclosure of cash flow information:

<S>                                                                                     <C>                 <C>
   Interest paid                                                                        $       48,902      $       20,067
                                                                                      =================   =================

   Income taxes paid                                                                    $            -      $            -
                                                                                      =================   =================

Non-cash investing and financing activities:

   Capital contribution                                                                              -      $      903,014
                                                                                      =================   =================

   Stock issued for services                                                            $      275,000      $      305,500
                                                                                      =================   =================

   Debt converted to stock                                                              $       52,971                   -
                                                                                      =================   =================

   Cancellation of issued stock for non performance                                     $       25,026                   -
                                                                                      =================   =================

</TABLE>











                  The Accompanying Notes are an Integral
               Part of the Consolidated Financial Statements



                                       F7

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 1
                        Nature of Operations and History
--------------------------------------------------------------------------------

Organization

Liquidix,  Inc.  (formerly  Learner's World, Inc., and now known as Anscott
Industries,   Inc.)  (the  "Company")  is  a  Florida  corporation  in  the
business  of  developing,   manufacturing  and  marketing  ferrofluids  and
products  based on or derived from its ferrofluid  technology.  The Company
sells its industrial products throughout the world.

Learner's World, Inc. ("LWI") was formed as a state of New York corporation on
June 28, 1996. On August 15, 2001, the state of Domicile was changed to Florida
by formation of a new entity and merger of the old company of the same name.

Effective September 26, 2001, LWI acquired one hundred percent (100%) of the
outstanding common stock of Advanced Fluid Systems, Inc. ("AFS, Inc.") owned by
its parent company, Liquidics, Inc. ("Liquidics"), which was approximately 93%
of the total shares issued and outstanding. The transaction was accounted for as
a recapitalization with Liquidics as the accounting acquirer in a reverse
merger. The restricted common stock received by Liquidics, Inc. in LWI was then
issued to the Shareholders of Liquidics , making these shareholders the majority
owners of LWI. The Company has 75,000,000 common shares authorized at a par
value of $.001 per share.

In conjunction with the merger, LWI changed its name to Liquidix, Inc

During the year ended March 31, 2003 the Company changed the par value of its
common stock from a par value of $0.0001 to a par value of $0.001. On March 30,
2003 the Company approved a common stock consolidation for a reverse stock split
of twenty (20) old shares for one (1) new share. Both of these changes are
recognized retroactively in these financial statements to inception.

For the year ended March 31, 2003, the method of computing the foreign currency
translation differences was changed to the simplified method whereas the
presentation for the year ended March 31, 2002 was computed on a more complex
method. Both methods are generally accepted methods of accounting. Refer to note
"Change in Accounting Method."

--------------------------------------------------------------------------------
                                     Note 2
      Summary of Significant Accounting Policies and Use of Estimates
--------------------------------------------------------------------------------

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and
its ninety-nine percent (99%) owned subsidiary, Advanced Fluid Systems, Ltd.
(based out of Great Britain). All significant intercompany transactions and
accounts are eliminated in consolidation.

Revenue Recognition

Revenues for sales of products and services are recognized when the related
products are sold and shipped, or services are performed.

                                       F8

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                               Note 2 (continued)
      Summary of Significant Accounting Policies and Use of Estimates
--------------------------------------------------------------------------------

Use of Estimates

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

Cash and Cash Equivalents

For financial accounting purposes, cash equivalents include cash in banks and
all highly liquid investments with an initial maturity of three months or less.

Accounts Receivable

The Company provides for potentially uncollectible accounts receivable by use of
the allowance method. The allowance is provided based upon a review of the
individual accounts outstanding, and the Company's prior history of
uncollectible accounts receivable. As of March 31, 2003 and 2002, a provision
for uncollectible accounts receivable in the amounts of $ 22,181 and $25,016,
respectively, had been established.

Inventory

Inventory consists primarily of raw materials and finished goods. Inventory is
stated at the lower of cost, using the first-in, first-out (FIFO) method, or
market. Reserves and writedowns are established against Company-owned inventory
for excess, slow moving, and obsolete items where the estimated net realizable
value is less than the carrying value.

Property and Equipment

Property and equipment are recorded at cost. Depreciation is provided for on the
straight-line method over the estimated useful lives of the assets. Maintenance
and repairs that neither materially add to the value of the property nor
appreciably prolong its life are charged to expense as incurred. Betterments or
renewals are capitalized when incurred. For the years ended March 31, 2003 and
March 31, 2002 depreciation expense was $49,284 and $51,372 respectively.

The estimated useful lives of the assets are as follows:

                  Furniture and fixtures             5 years
                  Machinery and equipment            5 years
                  Office equipment                   3 years
                  Leasehold improvements          5-10 years

The Company leased equipment under a capital lease agreement that expired
November, 2001. The asset and liability under the capital lease agreement were
recorded at the lower of the present value of the minimum lease payments or the
fair market value of the asset. The asset was depreciated over the lower of its
related lease term or its estimated productive life. Depreciation of the asset
under the capital lease agreement is included in depreciation expense, as noted
above, for the years ended March 31, 2003 and March 31, 2002.

                                       F9

<PAGE>


                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                               Note 2 (Continued)
   Summary of Significant Accounting Policies and Use of Estimates (Continued)
--------------------------------------------------------------------------------

Intangible Assets (Acquisition Costs)

The Financial Accounting Standards Board (FASB) issued FASB "Goodwill and Other
                                                             ------------------
Intangible Assets" effective for the fiscal years beginning after December 15,
-----------------
2001. According to this FASB, goodwill and other intangible assets should not be
amortized. Instead, they should be reviewed for impairment at least annually and
charged to earnings only when their recorded values exceed their implied fair
value.

Acquisition costs represent costs incurred in relation to a Stock Purchase
Agreement. Acquisition costs are amortized ratably over five (5) years through
March 31, 2002. Amortization expense for the year ended March 31, 2002 is
49,110. For the year ended March 31, 2003 management evaluated acquisition costs
and determined the implied fair value exceeds its recorded value; therefore, no
adjustment was made.

Impairment of Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes
in circumstances indicate the carrying amount of an asset may not be
recoverable. Recoverability of assets to be held and used is measured by a
comparison of the carrying amount of an asset to future undiscounted net cash
flows expected measured by the amount by which the carrying amount of the assets
exceeded the fair value of the assets. Assets to be disposed of are reported at
the lower of the carrying amount or fair value less costs to sell.

During the year ended March 31, 2002, the Company recorded impairment in
relation to a licensing agreement in the amount of $500,000 as the fair market
value of the agreement would be less than the carrying value of the long-lived
asset.

For the year ended March 31, 2003, there were no additional impairments of
long-lived assets belonging to the company or subsidiary as fair market value of
the assets were determined by management to be greater than their book values.

Income Taxes

Deferred income taxes are provided on an asset and liability method, whereby
deferred tax assets are recognized for deductible temporary differences and
operating loss and tax credit carryforwards, and deferred tax liabilities are
recognized for taxable temporary differences. Temporary differences are the
differences between the reported amounts of assets and liabilities and their tax
basis. Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, there is uncertainty of the utilization of the operating
losses in future periods. Deferred tax assets and liabilities are adjusted for
the effects of changes in tax laws and rates on the date of enactment.

Basic and Diluted (Loss) per Common Share

Basic (loss) per common share is computed based on weighted average shares
outstanding and excludes any potential dilution from stock options, warrants and
other common stock equivalents. Basic (loss) per share is computed by dividing
loss available to common shareholders by the weighted average number of common
shares outstanding for the period. Diluted (loss) per common share reflects
potential dilution from the exercise or conversion of securities into common
stock or from other contracts to issue common stock. As of March 31, 2003 and
2002 there are no common stock equivalents. A loss would make common stock
equivalents anti-dilutive and would not be included anyway.

                                      F10

<PAGE>


                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                               Note 2 (Continued)
   Summary of Significant Accounting Policies and Use of Estimates (Continued)
--------------------------------------------------------------------------------

Foreign Currency Translation

Account balances and transactions denominated in foreign currencies and the
accounts of the Company's foreign operations have been translated into United
States funds, under a "simple" method of accounting for the year ended March 31,
2003 and under a "complex" method of accounting for the year ended March 31,
2002. This is a change in accounting method. Management determined the change is
immaterial for reporting purposes; therefore, no restatement is made to the
financial statements. Refer to the Note on "Change In Accounting Method. The net
foreign currency translation adjustments for the years ended March 31, 2003 and
for March 31, 2002 are an increase of $134,878 and a decrease of $30,180
respectively.

Stock-Based Compensation

The Company has elected to follow Accounting Principles Board Opinion No. 25,
Accounting for Stock Issued to Employees (APB 25) and the related
interpretations in accounting for its employee stock options. Under APB 25,
because the exercise price of employee stock options equals or exceeds the
market price of the underlying stock on the date of grant, no compensation
expense is recorded. The Company has adopted the disclosure-only provisions of
Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based
Compensation (SFAS No. 123). During the fiscal year ended March 31, 2002, the
company did pay stock-Based compensation to employees. During the fiscal year
ended March 31, 2003 there was no stock based compensation paid by the company
under stock option plans.

Fair Value of Financial Instruments

Accounts receivable, notes receivable, accounts payable, notes payable, lease
obligation and accrued liabilities are substantially current or bear reasonable
interest rates. As a result, the carrying values of these financial instruments
approximate fair value.

Advertising Costs

The Company's advertising costs are expensed when incurred. Advertising costs
for the years ended March 31, 2003 and 2002 were not material in amount.

Reclassification and Restatements

Certain amounts in the year end March 31, 2002 have been reclassified or
restated to conform to the current financial statement presentation.

Other Recent Accounting Pronouncements

The Company does not expect that the adoption of other recent accounting
pronouncements to have any material impact on its financial statements.

                                      F11

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 3
                                License Agreement
--------------------------------------------------------------------------------

The Company has an agreement that gives the right to process silicon wafers in a
method that will reduce size, weight, and heat generation. The license will be
amortized over the term of the license agreement. The agreement commenced
February, 2000 and remains in full force and effect for a period of fifteen
years from the date of execution. The agreement also provides for royalty
payments to be made to the licensor based on the number of silicon wafers
produced. As of March 31, 2002, the Company had yet to commence production of
the product and determined that the technology related to the agreement had been
superseded; therefore, impairment in the amount of $500,000, the full value of
the license agreement, was recorded for the fiscal year ended March 31, 2002. As
of March 31, 2003 nothing has been done with the license agreement and
management is considering seeking remedies to recover all or part of the
$500,000 investment paid by the company for the agreement.

--------------------------------------------------------------------------------
                                     Note 4
                             Property and Equipment
--------------------------------------------------------------------------------


Property and equipment as of March 31, 2003 and 2002 consists of the following:
<TABLE>
<CAPTION>

                                                                     2003                   2002
                                                                     ----                   ----
<S>                                                               <C>                    <C>
Furniture and fixtures                                              19,305                 17,052
Machinery and equipment                                            369,348                297,115
Office equipment                                                    96,961                 47,480
Leasehold improvements                                              68,033                 49,817
                                                                  --------               --------
                                                                   553,647                411,464

(Less) accumulated depreciation                                   (370,833)              (317,754)
                                                                  --------               --------

                                                                  $182,814               $ 93,710
                                                                  ========               ========
</TABLE>

--------------------------------------------------------------------------------
                                     Note 5
                          Concentration of Credit Risk
--------------------------------------------------------------------------------

The Company maintains cash balances at a London financial institution. As of
March 31, 2003 and 2002, the Company had uninsured cash of approximately $93,907
and $228,000, respectively.

--------------------------------------------------------------------------------
                                     Note 6
                           Related Party Transactions
--------------------------------------------------------------------------------

Notes Payable

At March 31, 2003 the related party, including shareholders, notes payable, in
the aggregate amount of $580,904, consist of various notes to shareholders, an
officer and a related entity, with interest rates ranging from ten percent (10%)
to ten and one-half percent (10.5%) per annum. The notes require payments of
accrued interest and principal at maturity. Various notes, in the aggregate of
$580,904 matured during the year ended March 31, 2003 and remain unpaid as of
March 31, 2003. These notes are in default and are due on demand. Also see
following Note 7 on convertible debt.

                                      F12

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 7
                                  Notes Payable
--------------------------------------------------------------------------------

Convertible Debt

In May, 2002, the Company issued a convertible note payable in the amount of
$300,000. The convertible note payable accrues interest at eight percent (8%)
per annum and matures May 9, 2004. The note is convertible into shares of common
stock at sixty percent (60%) of the trading price prior to the conversion, or
$0.73 per share, whichever is lower. The Company issued 37,650 common stock
warrants with the convertible note payable. The warrants have an exercise price
of the lesser of $0.73 or sixty percent (60%) of the trading price prior to the
conversion and a term of five (5) years.

Pursuant to the convertible debt agreement, the Company has filed on Form SB-2 a
registration statement with the Securities and Exchange Commission, registering
441,967 shares of common stock.

Concurrent with the filing of the Form SB-2, the Company has entered into a
convertible note payable in the amount of $250,000. The terms of the agreement
include the conversion of the debt into shares of common stock for the lesser of
sixty percent (60%) of the trading price prior to conversion or $0.73.

The Registration Statement registered two hundred percent (200%) of the shares
of common stock needed should the aggregate of $550,000 of convertible debt be
converted.

During the year ended March 31, 2003 a total of $52,971 of this debt was
converted into 33,107 shares of common stock of the corporation. The remaining
debt was assumed by the transferee of all the Liquidix assets and liabilities
subsequent to the balance sheet date. Kazi Management, to whom the Company owes
the convertible debt, agreed to be paid $497,000, set aside the conversion
option and warrants related to the debt, and agreed to the transferee payment of
the debt. (See Note on Subsequent Events 11)

As of March 31, 2003 this convertible note payable is included in the amount due
of $580,904 related party notes payable discussed in the Note "Related Party
Transactions." The remaining $6,542 balance due for notes payable is for
financing leases with an interest rate of approximately 12%. This gives a total
notes payable of $587,446, all reported as current liabilities.

--------------------------------------------------------------------------------
                                     Note 8
                                  Income Taxes
--------------------------------------------------------------------------------

As of March 31, 2003 and 2002, deferred tax assets consist of the following:
<TABLE>
<CAPTION>

                                            2003                      2002
                                     ------------------       -------------------
<S>                                    <C>                        <C>
Net operating loss carryforwards       $       259,549            $      307,500
Less: valuation allowance                     (258,549)                 (307,500)
                                     ------------------       -------------------

Net deferred tax asset                 $          -               $         -
                                     ==================       ===================
</TABLE>

At March 31, 2003 and 2002, the Company established a valuation allowance equal
to the full amount of the deferred tax asset due to the uncertainty of the
utilization of operating losses in the future.

At March 31, 2003 and 2002, the Company had federal net operating loss carry
forwards in the approximate amount of $904,000 available to offset future
taxable income through 2022.


                                      F13

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 8
                            Income Taxes (Continued)
--------------------------------------------------------------------------------

The deferred tax assets and net operating loss carry forwards exclude the
activity of the Company's foreign operations.

Subsequent to March 31, 2003 the Company changed majority ownership and
management. Management believes the Company has undergone an ownership change as
defined in Section 382 of the internal Revenue Code. If this is the case, then
the Company's tax net operating loss carry forwards as generated prior to the
ownership change will be subject to an annual limitation which could reduce,
eliminate, or defer the utilization of these losses.

--------------------------------------------------------------------------------
                                     Note 9
                          Commitments and Contingencies
--------------------------------------------------------------------------------

Office Lease Commitments

The Company is obligated under a long-term operating lease for an office
facility through the year 2005.

As of March 31, 2003, future minimum lease payments due under the non-cancelable
operating lease agreement is as follows:

        Year ending
          March 31,                                 Amount
        -----------                            ===============

               2004                              $   93,028
               2005                                  86,028

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

        Total                                    $  179,056
                                               ===============

In addition, the Company rents office facilities through December, 2003 and
month to month thereafter.

Rent expense under the aforementioned operating leases and rents was
approximately $ 25,766 and $109,375 for the years ended March 31, 2003 and March
31, 2002, respectively.

Litigation

In the normal course of business, the Company is subject to certain contractual
obligations and litigation. An unsettled legal claim filed December 30, 2002
against the Company of approximately $202,000 plus interest for a breach of the
lease on a location in Scottsdale, Arizona remains unsettled as of March 31,
2003. The Company intends to defend vigorously against this claim if the need
arises. As of March 31, 2003 no discovery has been done on this case.

At March 31, 2002, a claim was filed in the amount of $30,908, which remains
unsettled as of March 31, 2003. The company feels that it has adequate defenses
against this claim and intends to defend vigorously.

Although the company does not feel that it has liability in either of the two
claims noted above, it has accrued a contingent liability in the amount of
$50,000 and has reported it as an allowance for contingencies on the balance
sheet as part of current liabilities.

                                      F14

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 10
                                     Equity
--------------------------------------------------------------------------------

Stock Issued for Services

During the year ended March 31, 2003, the Company issued 13,750 shares of common
stock for consulting services valued at $275,000. During the current year 12,500
shares of common stock was returned to the company and cancelled for non
performance under a contract.

Treasury Stock

During the year ended March 31, 2003, the company cancelled 822,588 shares of
its' common stock that had been held in the treasury. It was the opinion of
management that a reissue of stock in event of a need was preferable to holding
the common stock in the treasury.


--------------------------------------------------------------------------------
                                     Note 11
                                  Going Concern
--------------------------------------------------------------------------------

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company has a loss for the
year ended March 31, 2003 and 2002 in the amounts of $875,415 and $1,139,529
respectively, and accumulated deficit at March 31, 2003 and 2002 in the amounts
of $3,590,299 and $2,715,884 respectively. And, current liabilities exceed
current assets.

The Company does not have the necessary working capital to service its debt and
for its planned activity, which raises substantial doubt about its ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

The controlling shareholder continues to fund the company sufficiently to keep
it going for the coming year. Management is also seeking additional financing
through private and public offerings it plans in the near future. Also, see the
note on subsequent events.

--------------------------------------------------------------------------------
                                     Note 12
                                Minority Interest
--------------------------------------------------------------------------------

Minority Interest

The Company  has a ninety nine  percent  (99%) owned  Subsidiary,  Advanced
Fluid System,  Limited ("AFS,  Ltd.").  During fiscal year ending March 31,
2003,  Liquid,  Inc.  offered the then 7% minority  shareholders  shares of
Liquidix,  Inc.  in  exchange  for their  shares in AFS,  Ltd. By March 31,
2003,  all but 51,120 shares (or 1%) of AFS, Ltd.  stock were exchanged for
1,700,402  shares of Liquidix,  Inc. common stock. and were paid out of the
Company treasury stock.

                                      F15

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 13
                           Change in Accounting Method
--------------------------------------------------------------------------------

Foreign Currency Translation

For the year ended March 31, 2002 the account balances and transactions
denominated in foreign currencies and the accounts of the Company's foreign
operations are translated into United States funds as follows: (i) assets and
liabilities at the rates of exchange prevailing at the balance sheet date; (ii)
revenue and expenses at average exchange rates for the period in which the
transaction occurred: (iii) exchange gains and losses arising from foreign
currency transactions are included in the determination of net earnings for the
period; and (iv) exchange gains and losses arising from the translation of the
Company's foreign operations are deferred and included as a separate component
of stockholders' equity. The foreign currency translation adjustment for the
year ended March 31, 2002 is $11,226 with a net change for the year of $30,180
decrease. This method of accounting is generally accepted in the United States
of America and is what Notes 1 and 2 referred to as a "complex" method of
accounting.

For the year ended March 31, 2003 the Company has chosen to change the method of
accounting for foreign currency translation to what Notes 1 and 2 referred to as
a "simple" method of accounting. This method of accounting also is generally
accepted in the United States of America. In this "simple" method of accounting
as used for the year ended March 31, 2003 the account balances and transactions
denominated in foreign currencies and the accounts of the Company's foreign
operations have been translated into United States funds as follows: (i) assets
and liabilities at the rates of exchange prevailing at the balance sheet date;
(ii) exchange gains and losses arising from the translation of the Company's
foreign operations are deferred and included as a separate component of
stockholders' equity. The foreign currency translation adjustment for the year
ended March 31, 2003 is $146,104 with a net change for the year of $134,878
increase.

Management determined the differences in the two methods of accounting were not
material in amount comparing March 31, 2003 to March 31, 2002. Accordingly, the
financial statements for the year ended March 31, 2002 are not restated to be
comparable to the year ended March 31, 2003.

--------------------------------------------------------------------------------
                                     Note 14
                                Subsequent Events
--------------------------------------------------------------------------------

Sale of the Liquidix Assets

On March 30, 2003 the company entered into an agreement to consolidate the
outstanding common stock by a factor of 20 old shares being equal to one new
share. As previous discussed in Note 1, the financial statements give effect to
the 1 for 20 reverse stock split for all periods presented.

As an extension of this transaction, the company entered into an agreement to
acquire the assets of Anscott Industries, Inc. ("Anscott") by the issuance of
45,000,000 shares of restricted capital stock. Each of the previous directors
resigned. After this purchase of the assets and liabilities of Anscott
Industries, Inc was completed, the new Board of Directors voted to divest itself
of all the assets and liabilities that Liquidix, Inc. had prior to the
acquisition of the assets of Anscott The sale of the assets and liabilities was
completed during April 2003. There was no formal creditor approval of this
transaction. Each party to the agreement indemnified the other party against all
creditor claims. If either party is not financially able to satisfy creditor
claims, then the other party could be held liable for any such creditor claims.

                                      F16

<PAGE>

                          LIQUIDIX, INC. AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 MARCH 31, 2003

--------------------------------------------------------------------------------
                                     Note 15
                          Subsequent Events (unaudited)
--------------------------------------------------------------------------------

Subsequent to purchase and sale as described in Note 14, management of Anscott
Industries, Inc. furnished the following information which has not been audited.

                            ANSCOTT INDUSTRIES, INC.
                             UNAUDITED BALANCE SHEET
                          PROFORMA AS OF MARCH 31, 2003
                                     ASSETS
<TABLE>

CURRENT ASSETS
<S>                                                                             <C>
Cash                                                                            $     2,750
  Accounts receivable                                                               535,547

Inventory                                                                           489,819
  Prepaid expenses                                                                  212,311

TOTAL CURRENT ASSETS                                                              1,210,427

PROPERTY, PLANT AND EQUIPMENT AT COST, LESS DEPRECIATION                            967,201

OTHER ASSETS                                                                      1,741,758

TOTAL ASSETS                                                                    $ 3,919,386


                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

                                   LIABILITIES

CURRENT LIABILITIES
  Accounts payable                                                              $   887,498
  Notes payable                                                                   1,501,642

TOTAL CURRENT LIABILITIES                                                         2,389,140

LONG TERM LIABILITIES                                                             2,633,537

TOTAL LIABILITIES                                                                 5,022,678

                       STOCKHOLDERS' EQUITY (DEFICIENCY)

STOCKHOLDERS' EQUITY (DEFICIENCY)
  Common stock                                                                      724,135
  Paid in Capital                                                                   305,056
  Accumulated Earnings (Deficit)                                                 (2,132,483)

TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY)                                          (1,103,292)

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)                         $ 3,919,386
                                                                                -----------

</TABLE>


                                      F17

<PAGE>

Item  8.  Changes  In and  Disagreements  With  Accountants  on  Accounting  and
          Financial Disclosure



We changed our accountant from Semple & Cooper, LLP in Arizona to Sellers &
Andersen, LLC of Utah. We again changed accountants on February 16, 2004 from
Sellers & Anderson, LLC to our current accountants, Madsen & Associates, CPA's
Inc.

Section 102 of the Sarbanes-Oxley Act of 2002 makes it unlawful after October
22, 2003 for any person that is not a registered public accounting firm (i.e.,
registered with the PCAOB) to prepare or issue, or to participate in the
preparation or issuance of any report with respect to an issuer. Sellers &
Anderson, LLC is not registered with the PCAOB, but issued a draft audit opinion
dated July 11, 2003 that was incorporated into our original Form 10-K, dated
July 14, 2003. Although registration with PCAOB was not required for public
accounting firms on the filing date of the Form 10-K, the accountant labeled the
financial statements as a draft. Therefore, we have had our new accountants,
Madsen & Associates, CPA's Inc. re-audit the financial statements in this
Amendment No. 1 to Form 10-K.

At no time has there been any disagreements with such accountants regarding any
matter of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure.




                                       7
<PAGE>

                                    PART III
                                    --------

Item 9. Directors, Executive Officers, Promoters and Control Persons: Compliance
        With Section 16(a) of the Exchange Act

Our directors and officers, as of July 14, 2003, are set forth below. The
directors hold office for their respective term and until their successors are
duly elected and qualified. Vacancies in the existing Board are filled by a
majority vote of the remaining directors. The officers serve at the will of the
Board of Directors.

                             With Company
Name                   Age   Position
--------------------   ---   -----------------------------
Jack Belluscio         41    President, Chief Financial Officer and Chairman
                             of the Board
Steven Hoh             55    Secretary Treasurer and Director

Jack Belluscio has been the President, Chief Executive Officer, Chief Financial
Officer and Chairman of our Board of Directors since April 15, 2003. He has been
employed as the Chief financial Officer of our subsidiary, Anscott Industries,
Inc., since 2000. From 1995 to 2000 Mr. Belluscio was employed by Global
Technologies, El Segundo, Ca. as its President. From 1990 to 1995 he was
President of Caled Chemical, Wayne, NJ. From 1987 to 1990 Mr. Belluscio was
employed by Western Union, Upper Saddle River, NJ. From 1983 - 1987 he was
employed by Citibank, New York, NY. Mr. Belluscio has an MBA with a
concentration in finance and economics. He has held positions on the Board of
Directors of the Textile Care Association and New York Military Academy.

Steven Hoh has been our Secretary and Treasurer and Director since April 15,
2003. Mr. Hoh has been the Vice President of Operations of our subsidiary,
Anscott Industries, Inc. since 1980. He has held several positions within
Anscott Industries, Inc. and currently is responsible for manufacturing
personnel coordination of materials throughout the company's worldwide
distribution network.

All officers and directors listed above will remain in office until the next
annual meeting of our stockholders, and until their successors have been duly
elected and qualified. There are no agreements with respect to the election of
Directors. We have not compensated our Directors for service on our Board of
Directors, any committee thereof, or reimbursed for expenses incurred for
attendance at meetings of our Board of Directors and/or any committee of our
Board of Directors. Officers are appointed annually by our Board of Directors
and each Executive Officer serves at the discretion of our Board of Directors.

We do not have any standing committees. Our Board of Directors may in the future
determine to pay Directors' fees and reimburse Directors for expenses related to
their activities.

None of our Officers and/or Directors have filed any bankruptcy petition, been
convicted of or been the subject of any criminal proceedings or the subject of
any order, judgment or decree involving the violation of any state or federal
securities laws within the past five (5) years.

COMMITTEES OF THE BOARD

We presently do not have any committees.

Compliance with Section 16(a) of the Exchange Act

None

                                       8
<PAGE>

Item 10. Executive Compensation

The following table sets forth the annual and long-term compensation for
services in all capabilities to the Company.

<TABLE>
<CAPTION>
Name & Position            Year    Salary       Bonus      Other       Annual Long Term
                                                         Compensation     Compensation
                           --------------------------------------------------------------
<S>                        <C>    <C>             <C>      <C>               <C>
Jack Belluscio             2003   $27,996         0        0                 0
President and Director

Steven Hoh                 2003   $47,277         0        0                 0
Secretary, Treasurer
and Director
</TABLE>

Our Directors do not receive compensation for their services as directors but
may be reimbursed for their reasonable expenses for attending Board meetings.

Item 11. Security Ownership of Certain Beneficial Owners and Management

The following table sets forth as of July 14, 2003, information with respect to
the beneficial ownership of the Company's Common Stock by (i) each person known
by the Company to own beneficially 5% or more of such stock, (ii) each Director
of the Company who owns any Common Stock, and (iii) all Directors and Officers
as a group, together with their percentage of beneficial holdings of the
outstanding shares.

                                   Number of Shares of
Name of Beneficial Owner/          Common Stock               % of Beneficial
Identity of Group                  Beneficially Owned         Ownership
--------------------------------------------------------------------------------

Jack Belluscio                     44,000,000 (1)            96.31%

Steven Hoh                                  0                    0

DIRECTORS AND
OFFICERS AS A
GROUP                              44,000,000                96.31%


Item 12. Certain Relationships and Related Transactions.

None.


Item 13. Exhibits and Reports on Form 8-K

(a)  The following documents are filed as part of this report:

1.   Financial statements; see index to financial statement and schedules
     immediately following the signature pages of this report.

2.   Financial statement schedules; see index to financial statements and
     schedules immediately following the signature pages of this report.

3.   Exhibits:

The following exhibits are filed with this Form 10-KSB and are identified by the
numbers  indicated:  see  index  to  exhibits  immediately  following  financial
statements and schedules of this report.

3.1  Certificate of Incorporation, as amended (1)

3.2  Bylaws, as amended (1)

10.1 Stock Purchase Agreement and Share Exchange between the Company and Anscott
     Industries, Inc.(2)

                                       9
<PAGE>

(1)  Incorporated by reference to the Registrant's Form 10-SB, filed on December
     15, 1999 (SEC File No. (000-28513).

(2)  Incorporated by reference to the  Registrant's  Form 8-K filed with the SEC
     on April 29, 2003.

(3)  Reports  on Form  8-K In April  2002 we  filed a  report  on Form 8-K for a
     change in auditors.

     On April 29,  2003 we filed a report on Form 8-K for change in control  and
     we filed an amendment thereto on July 3, 2003.

     On May 9, 2003 we filed a report on Form 8-K for a change in auditor and we
     filed an amendment thereto on May 27, 2003.

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, there unto duly authorized.

                        ANSCOTT INDUSTRIES, INC.

                        By: /s/ Jack Belluscio
                        -----------------------------
                         Jack Belluscio
                         President and Director


Dated: June 16, 2004


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
Name                        Title                                  Date
----                        -----                                  ----

<S>                         <C>                                    <C>
/s/ Jack Belluscio          President, CEO, CFO and Director       June 16, 2004
------------------------
    Jack Belluscio


/s/ Steven Hoh
------------------------    Secretary, Treasurer and Director      June 16, 2004
    Steven Hoh

</TABLE>


                                       10
<PAGE>