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


                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended August 31, 2003


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

<TABLE>
<CAPTION>
<S>                                      <C>                                   <C>
======================================== ===================================== =====================================
                Kansas                                 0-21210                              84-0922335
                ------                                 -------                              ----------
    (State or other jurisdiction of            (Commission File Number)         (IRS Employer Identification No.)
            incorporation)
======================================== ===================================== =====================================
</TABLE>


               300 Summers Street, Suite 970, Charleston, WV 25301
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (304) 343-8171
                                                           --------------



State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

                 120,709,509 common shares as of October 8, 2003



<PAGE>






                         PART I-- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The following financial statements are included herein in response to Item 1:


                                                                           Page
                                                                           ----

                  Financial Statements (Unaudited)
                  --------------------------------
                  Consolidated Condensed Balance Sheet                     F-1
                  Consolidated Condensed Statement of Operations           F-2
                  Consolidated Condensed Statement of Cash Flows           F-3
                  Notes to Consolidated Condensed Financial Statements     F-4





















                                       2

<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)

<S>                                                                <C>              <C>
ASSETS                                                             August 31, 2003  May 31, 2003
                                                                   ---------------  ------------

CURRENT ASSETS
    Cash and cash equivalents                                       $       17,889  $        824
    Receivables                                                             20,287        44,123
    Prepaid and other                                                        6,973        11,262
                                                                    --------------  ------------
      Total current assets                                                  45,149        56,209
                                                                    --------------  ------------


FURNITURE AND EQUIPMENT,
    net of accumulated depreciation of $83,546 and $82,269 respectively     16,168        16,942
                                                                    --------------  ------------


      Total assets                                                  $       61,317  $     73,151
                                                                    ==============  ============


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Current maturities of notes payable                             $       48,929  $     48,929
    Current maturities of notes payable - related parties                  472,863       642,354
    Accounts payable                                                       385,289       211,258
    Accrued expenses                                                       422,788       378,086
    Accrued interest payable                                                53,729        53,427
                                                                    --------------  ------------
      Total current liabilities                                          1,383,598     1,334,054
                                                                    --------------  ------------

LONG-TERM LIABILITIES
    Notes payable, less current maturities                                 600,000       550,000
    Notes payable, less current maturities - related parties               473,317       398,719
                                                                    --------------  ------------
      Total Long-term liabilities                                        1,073,317       948,719
                                                                    --------------  ------------

STOCKHOLDERS' EQUITY
    Common stock, $.0001 par value par value; 500 million shares
      authorized: 120,709,509 shares issued and outstanding                 12,071        12,071
    Additional paid-in capital                                           1,040,730     1,040,730
    Accumulated deficit                                                 (3,448,399)   (3,262,423)
                                                                    --------------  ------------
      Total stockholders' equity                                        (2,395,598)   (2,209,622)
                                                                    --------------  ------------

      Total liabilities and stockholders' equity                    $       61,317  $     73,151
                                                                    ==============  ============
</TABLE>

                            See Accompanying Notes.
                                      F-1
<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)


<S>                                                      <C>              <C>
                                                         Three Months Ended August 31,
                                                         ---------------- -------------
                                                              2003            2002
                                                         ---------------- -------------


REVENUE                                                  $       85,961   $    89,743
                                                         ---------------- -------------

EXPENSES
    General and administrative                                  197,925       226,972
    Mutual Fund Costs                                            29,004        36,998
    Interest                                                     43,730        27,581
    Depreciation and amortization                                 1,278         1,363
                                                         ---------------- -------------

      Total expenses                                            271,937       292,914
                                                         ---------------- -------------

OTHER INCOME                                                          -             -
                                                         ---------------- -------------


NET INCOME (LOSS)                                        $     (185,976)  $  (203,171)
                                                         ================ =============


BASIC AND DILUTIVE NET INCOME (LOSS) PER SHARE:

    NET INCOME (LOSS) PER SHARE                          $            -   $         -
                                                         ================ =============

    WEIGHTED AVERAGE SHARES OUTSTANDING                     120,709,509   120,577,744
                                                         ================ =============


</TABLE>

















                            See Accompanying Notes.
                                      F-2
<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)


<S>                                                             <C>               <C>
                                                                Three Months Ended August 31,
                                                                -----------------------------
                                                                     2003           2002
                                                                ---------------   -----------

CASH FLOWS FROM OPERATING ACTIVITIES
    Net income (loss)                                            $     (185,976)  $ (203,171)
    Adjustments to reconcile net income (loss) to
      net cash provided by operating activities
         Depreciation and amortization                                    1,278        1,363
         Changes in operating assets and liabilities:
           Receivables                                                   23,836      (83,991)
           Prepaid and other current assets                               4,289        1,484
           Accounts payable                                             174,031       91,649
           Accrued expenses and other liabilities                        45,004       33,631
                                                                 --------------   ------------
              Net cash flows from (used for) operating activities        62,462     (159,035)
                                                                 --------------   ------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase furniture and equipment                                       (504)           -
                                                                 --------------   ------------
              Net cash flows (used for) investing activities               (504)           -
                                                                 --------------   ------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from related party debt                                    120,836      197,048
    Payment of related party debt                                      (205,729)    (189,733)
    Proceeds from debt obligations                                       65,000      150,000
    Repayment of debt obligations                                       (25,000)      (3,807)
                                                                 --------------   ------------

              Net cash flows (used for) from financing activities       (44,893)     153,508
                                                                 --------------   ------------

NET DECREASE IN CASH                                                     17,065       (5,527)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                                   824        8,689
                                                                 --------------   ------------

CASH AND EQUIVALENTS, END OF PERIOD                              $       17,889   $    3,162
                                                                 ==============   ============


SUPPLEMENTAL DISCLOSURES:
    Interest paid                                                $       43,428   $   19,662
    Income taxes paid                                                         -            -
</TABLE>














                            See Accompanying Notes.
                                      F-3

<PAGE>

NELX, Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Note A - Basis of Presentation

The accompanying  unaudited financial statements of NELX, Inc. (the "Company" or
"NELX")  were  prepared  in  accordance  with  generally   accepted   accounting
principles for interim  financial  information and Article 10 of Regulation S-X.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  all adjustments  considered  necessary for a fair
presentation  of the  results of  operations  and  financial  condition  for the
periods presented have been included. Such adjustments are of a normal recurring
nature.  The results of operations for the  three-month  period ended August 31,
2003, are not  necessarily  indicative of the results of operations  that can be
expected for the fiscal year ending May 31, 2004. For further information, refer
to the Company's audited financial  statements and footnotes thereto included in
Item 7. of Form 10-KSB filed by NELX on September 12, 2003.

Note B - Notes Payable

At August 31, 2003,  related party borrowings  amounted to $946,180.  During the
three month  period  ended August 31,  2003,  borrowings  from  related  parties
amounted  to  $120,836  and  repayments  of  principal  on  such  related  party
borrowings  amounted to  $205,729.  Additionally,  $65,000  was  borrowed by the
Company from an unrelated party and repayments of principal of $15,000 were made
on such  unrelated  party  borrowings.  The  remaining  $50,000 of this  balance
remains outstanding as a note and is due October 2004, carries a stated interest
rate of 10% per annum and is convertible  into shares of NELX during its term at
the lower of $.10 (ten cents) per share or the price or value per share implicit
in any substantial  financing  accomplished  prior to the note's  maturity.  The
resulting  unpaid  balance of notes  payable to  unrelated  parties  amounted to
$648,929.

Note C - Subsequent Event

On September  26, 2003,  the Company  borrowed an  additional  $125,000  from an
unrelated party.  The note is due December 2004,  carries a stated interest rate
of 10% per annum and is  convertible  into shares of NELX during its term at the
lower of $.10 (ten cents) per share or the price or value per share  implicit in
any substantial financing  accomplished prior to the note's maturity. The lender
has the ability to demand payment on this note on December 31, 2004.




                                      F-4
<PAGE>


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


Results of Operations for the Three Month Period Ended August 31, 2003
----------------------------------------------------------------------

NELX, Inc. (the "Company")  experienced a loss for the three-month  period ended
August 31, 2003 in the amount of  $185,976  as compared  with a loss of $203,171
for the corresponding period ended August 31, 2002.  Although,  revenues for the
corresponding  periods  were  slightly  down in both  the  Company's  investment
advisory  business  (Jacobs & Company) and in the Company's  surety business (FS
Investments, Inc. or "FSI"), operating expenses have also decreased.

Net  revenues  for the  three-month  period  ended  August 31, 2003 were $85,961
versus $89,743 for the corresponding period ended August 31, 2002 representing a
4.2%  decrease.  This decrease was  attributable  to a combination  of continued
tightening of the availability of bonding in the surety markets and fluctuations
in the securities  markets resulting in a reduction in the value of assets under
management of Jacobs & Company.

Quarterly  revenues  from the  investment  management  segment,  net of advisory
referral  fees,  were $71,351 for the  three-month  period ended August 31, 2003
versus  $73,394 for the same period in the previous year, a decrease of $ 2,043.
As  investment  advisory  fees are based on the  market  value of  assets  under
management,  some fluctuation will occur due to overall market  conditions.  For
the most part,  however,  such  revenues  will remain  relatively  constant from
quarter to quarter with any large  fluctuations being attributable to the growth
or loss of assets under management. .

Gross premium  income of FSI collected for the  three-month  period ended August
31, 2003 was $234,287,  as compared to $278,297 for the corresponding  period in
the previous year.  Quarterly  revenues from the surety segment were $12,565 for
the three-month  period ended August 31, 2003 versus $14,285 for the same period
in the  previous  year,  a decrease of $1,720.  Revenue for this  segment of the
business is more "seasonable" from quarter to quarter,  due merely to the timing
of the issuance or renewal of bonds placed by the Company.  Due to the nature of
surety bonds, fluctuations in revenue for comparable periods largely reflect the
overall growth or loss of business.

Operating  expenses  for the  three-month  period  ended  August  31,  2003 were
$271,937 as compared  with $292,914 for the  comparable  period ended August 31,
2002,  a  decrease  of  $20,977.  This  decrease  is largely  attributable  to a
reduction in legal and professional expenses.

Interest expense for the three-month period ended August 31, 2003 was $43,730 as
compared with $27,581 for the corresponding period ended August 31, 2002, as the
result of increased indebtedness incurred to finance operations.


                                       3
<PAGE>

Future Direction of Company
---------------------------

The  Company  intends  to focus its  efforts  on the  expansion  of the  ongoing
business  activities of Jacobs & Co. and FSI, namely  investment  management and
advisory services and insurance (surety).

Recent  conditions  in  the  financial  markets  have  resulted  in a  focus  by
individuals and  institutions on safety and  preservation of capital,  which are
the  cornerstone of the investment  strategies  employed by Jacobs & Co. for its
clients.  Effectively  marketing  the  services  of Jacobs & Co. and  increasing
avenues  for the  distribution  of the  Jacobs & Company  Mutual  Fund will be a
principal   focus  of  management  in  the  coming   quarter.   Acquisitions  of
complementary investment advisory businesses will also be considered.

Surety  bonds  have  become  unavailable  to all but the most  financially  able
companies.  The  collateralized  bonding  programs  developed by FSI remain very
promising  if an  insurance  company  will  emerge  to fill  this  vacuum in the
marketplace.   FSI  is  reviewing   possible   acquisitions  of,  and/or  agency
relationships  with,  an  insurance  company  that would enable it to expand the
distribution of its surety programs to fill this market niche. In addition,  FSI
will attempt to take  advantage of  opportunities  for the  generation of income
from consulting services in relation to its surety business as they arise.

Analysis of Financial Condition
-------------------------------

Management is optimistic  with respect to the growth of the Company's  business,
but the rate of such growth is  difficult  to predict.  As of August 31, 2003, a
deficiency in working capital exists as the Company's current liabilities exceed
its current assets by  approximately  $1,340,000.  Management  continues to meet
operating deficits  primarily through short-term  borrowings and will attempt to
utilize other debt and  non-dilutive  equity  financing  alternatives to sustain
operations.  Whether such financing will be available as needed and the ultimate
form of such financing is uncertain.


                           PART II - OTHER INFORMATION


None.


Item 6. EXHIBITS AND REPORTS ON FORM 8-K

31.1   Certification of Chief Executive Officer and Principal Financial
       Officer pursuant to Rule13a-146.1 promulgated under the Securities
       Exchange Act of 1934

32.1   Certification pursuant to 18 U.S.C. Section 1950, as adopted pursuant
       to Section 906 of the Sarbanes-Oxley Act of 2002





                                       4
<PAGE>




SIGNATURES


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

                                                   NELX, Inc.
                                                  (Registrant)

Dated:  October 14, 2003               By:      /s/  John M. Jacobs
                                      ----------------------------------------
                                                     John M. Jacobs, President






















                                       5