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 February 28, 2003


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


<TABLE>
<CAPTION>
<S>                                      <C>                                   <C>
======================================== ===================================== =====================================
                KANSAS                                 0-21210                              84-09223335
                ------                                 -------                              -----------
---------------------------------------- ------------------------------------- -------------------------------------
    (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:

                120,708,509 common shares as of April 17, 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>
                                                                                     February 28, 2003     May 31, 2002
                                                                                     -----------------     ------------
ASSETS

CURRENT ASSETS
    Cash and cash equivalents                                                        $          1,002    $         8,6892
    Receivables                                                                                81,204              39,312
    Prepaid and other                                                                          13,160              10,688
                                                                                     ------------------  -----------------
      TOTAL CURRENT ASSETS                                                                     95,366              58,689
                                                                                     ------------------  -----------------

FURNITURE AND EQUIPMENT,
    NET OF ACCUMULATED DEPRECIATION OF $80,866 AND $76,776, RESPECTIVELY                       15,988              20,078
                                                                                     ------------------  -----------------


      TOTAL ASSETS                                                                   $        111,354    $         78,767
                                                                                      =================  =================


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Current maturities of notes payable                                              $         40,219    $         50,000
    Current maturities of notes payable - related parties                                     500,937             635,310
    Accounts payable                                                                          211,472             207,814
    Accrued expenses                                                                          411,278             335,571
    Accrued interest payable                                                                   51,855              33,449
                                                                                     ------------------  -----------------
      TOTAL CURRENT LIABILITIES                                                             1,215,761           1,262,144
                                                                                     ------------------  -----------------

LONG-TERM LIABILITIES
    Notes payable, less current maturities                                                    562,500             100,000
    Notes payable, less current maturities - related parties                                  383,505             226,681
                                                                                     ------------------  -----------------
      TOTAL LONG-TERM LIABILITES                                                              946,005             326,681
                                                                                     ------------------  -----------------

STOCKHOLDERS' EQUITY
    Common stock, $.0001 par value par value; 500 million shares
      authorized: 120,577,744 shares issued and outstanding                                    12,058              12,058
    Additional paid-in capital                                                              1,034,155           1,037,155
    Accumulated deficit                                                                    (3,096,625)         (2,559,271)
                                                                                     ------------------  -----------------
      TOTAL STOCKHOLDERS' EQUITY                                                           (2,050,412)         (1,510,058)
                                                                                     ------------------  -----------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                     $        111,354    $         78,767
                                                                                     ==================  =================

</TABLE>



                            See accompanying notes.
                                      F-1


<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)

<S>                                            <C>                <C>                <C>                 <C>
                                                  Three Months Ended February 28,       Nine Months Ended February 28,
                                               ---------------------------------------------------------------------------
                                                     2003               2002               2003                2002
                                               -----------------  -----------------  -----------------   -----------------

REVENUE                                        $        77,658    $        68,264    $       252,928     $       249,281
                                               -----------------  -----------------  -----------------   -----------------

EXPENSES
    General and administrative                         199,191            299,790            592,576             812,146
    Business development and financing                       -             68,715            105,761             165,420
    Interest                                            28,646             21,025             87,857              49,366
    Depreciation and amortization                        1,363              2,400              4,090               4,800
                                               -----------------  -----------------  -----------------   -----------------

      TOTAL EXPENSES                                   229,200            391,930            790,284           1,031,732
                                               -----------------  -----------------  -----------------   -----------------

OTHER INCOME                                                 -                 49                  2              27,648
                                               -----------------  -----------------  -----------------   -----------------

NET INCOME (LOSS)                              $      (151,542)   $      (323,617)   $      (537,354)    $      (754,803)
                                               =================  =================  =================   =================


BASIC AND DILUTIVE NET INCOME (LOSS) PER SHARE:

    NET INCOME (LOSS) PER SHARE                $             -    $             -    $             -     $         (0.01)
                                               =================  =================  =================   =================


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



</TABLE>






                            See accompanying notes.
                                      F-2

<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)
<S>                                            <C>                 <C>               <C>                 <C>
                                                  Three Months Ended February 28,       Nine Months Ended February 28,
                                               ---------------------------------------------------------------------------
                                                     2003               2002               2003                2002
                                               -----------------  -----------------  -----------------   -----------------

CASH FLOWS FROM OPERATING ACTIVITIES
    Net income (loss)                          $       (151,542)  $       (323,617)  $       (537,354)   $       (754,803)
    Adjustments to reconcile net income (loss) to
      net cash provided by operating activities
        Salary imputed to shareholder                         -                  -                  -                   -
        Depreciation and amortization                     1,363              2,400              4,090               4,800
        Cancellation of accounts payable
          per settlement agreement                                                                                (24,255)
        Changes in operating assets and liabilities:
          Receivables                                   (19,385)            24,027            (41,892)             17,795
          Prepaid and other current assets                2,110              4,377             (2,472)             14,416
          Accounts payable                                5,680            (44,537)             3,658              13,093
          Accrued expenses and other liabilities         31,352             74,564             94,113             117,505
                                               -----------------  -----------------  -----------------   -----------------
Net cash flows from (used ) operatiing activities      (130,422)          (262,786)          (479,857)           (611,449)
                                               -----------------  -----------------  -----------------   -----------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase furniture and equipment                          -            (10,479)                 -             (13,691)
                                               -----------------  -----------------  -----------------   -----------------
    Net cash flows (used ) investing activities               -            (10,479)                 -              (13,691)
                                               -----------------  -----------------  -----------------   -----------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from related party debt                    152,065                               541,289
    Repayment of related party debt                    (183,473)                 -           (621,838)                  -
    Proceeds from debt obligations                      162,500            512,904            562,500             826,904
    Repayment of debt obligations                             -           (200,201)            (9,781)           (707,577)
    Repayment of term notes payable                           -            (82,334)                 -            (266,073)
                                               -----------------  -----------------  -----------------   -----------------

Net cash flows (used ) from financing activities        131,092            230,369            472,170            (146,746)
                                               -----------------  -----------------  -----------------   -----------------

NET INCREASE IN CASH                                        670            (42,896)            (7,687)           (771,886)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                   332             42,896              8,689             771,886
                                               -----------------  -----------------  -----------------   -----------------

CASH AND EQUIVALENTS, END OF PERIOD            $          1,002   $              -   $          1,002    $              -
                                               =================  =================  =================   =================


SUPPLEMENTAL DISCLOSURES:

    Interest paid                              $         24,405   $         13,935   $         69,451    $        108,973
    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 and nine month  periods ended
February 28, 2003, are not  necessarily  indicative of the results of operations
that can be  expected  for the fiscal  year  ending May 31,  2003.  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, Inc. on September 13,
2002.

Note B - Notes Payable

At February 28, 2003, related party borrowings amounted to $884,442.  During the
nine month period  ended  February 28,  2003,  borrowings  from related  parties
amounted  to  $541,289  and  repayments  of  principal  on  such  related  party
borrowings  amounted to $621,838.  During the three month period ended  February
28, 2003,  $162,500 was borrowed by the Company from two  unrelated  parties and
$75,000 was borrowed from a related party.  These notes are due in October 2004,
carry a stated interest rate of 10% per annum and are convertible into shares of
NELX  during  their term at $.10 (ten  cents) per share.  The  resulting  unpaid
balance of notes payable to unrelated parties amounted to $602,719.

Note C - Events Subsequent to February 28, 2003

In May of 2002, the Board of Trustees of Advisors  Series Trust  determined that
certain  securities  held by the Jacobs & Company  Mutual Fund (the "Fund") were
incorrectly  priced. A demand was made on Jacobs & Company as investment adviser
to the Fund in November 2002, and Jacobs & Company agreed to pay to the Fund the
amount  required to avoid a charge to the accounts of  shareholders of the Fund.
Jacobs & Company has filed  claims with its insurers for its loss arising out of
these  circumstances.  In December  2002,  Jacobs & Company  paid $20,000 to the
Fund, and one of its insurers paid $304,360.28 to the Fund on behalf of Jacobs &
Company.  The insurer  treated  the amount paid as an advance,  pending the full
investigation  and  settlement  of the claim of Jacobs & Company.  There remains
$27,966.60 in expenses incurred by the Fund for which reimbursement is sought by
the Fund from Jacobs & Company.  These expenses are included in the claims filed
with the  insurers  by Jacobs & Company.  The claims of Jacobs & Company  remain
under  investigation  by the  insurers.  On March 24, 2003,  the Company paid an
outstanding  invoice in the amount of  $13,176.41  for services  rendered to the
Company by Investor  Relations  Company ("IRC") by the issuance to IRC of shares
of the Company's  common stock.  Based on an agreed  valuation of $.10 per share
for the  Company's  stock,  131,765  shares were issued by the Company to IRC in
full satisfaction of the invoice.

                                      F-4
<PAGE>
NELX, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Note C - Events Subsequent to February 28, 2003 (cont'd)

During March 2003, the Company  borrowed $50,000 from an unrelated party under a
convertible  promissory  note.  The note is due October  2004,  carries a stated
interest  rate of 10% per annum and is  convertible  into  shares of NELX during
their term at $.10 (ten cents) per share.

Note D - Reclassifications

Certain reclassifications have been made for consistent presentation.























                                      F-5
<PAGE>

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

RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED FEBRUARY 28, 2003
------------------------------------------------------------------------

The Company  experienced a loss for the  three-month  period ended  February 28,
2003 in the amount of  $151,542  as  compared  with a loss of  $323,617  for the
corresponding period ended February 28, 2002.

Revenues  for the  three-month  period  ended  February 28, 2003 were $77,658 as
compared  to $68,264 for the  corresponding  period  ended  February  28,  2002,
representing a 13.8% increase. This increase is comprised of a 15.0% Increase in
revenues  attributable to the investment  management segment and a 9.3% decrease
in premiums written through the surety segment of the Company's business.

Quarterly  revenues from the investment  management segment were $74,437 for the
three-month period ended February 28, 2003 AS compared with $64,710 for the same
period in the previous year, an increase of $9,727. As investment  advisory fees
are based on the market value of assets under management,  some fluctuation will
occur due to overall  market  conditions,  especially  during periods of extreme
adjustments such as have been recently experienced.  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.

Quarterly  revenues  from the surety  segment  were  $3,222 for the  three-month
period ended February 28, 2003 versus $3,554 for the same period in the previous
year,  a decrease  of $322.  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  February 28, 2003 were
$229,200 as compared with $391,930 for the comparable  period ended february 28,
2002, a decrease of $162,730.  Such decrease was  attributable  to a decrease in
general and  administrative  expense of $100,599 and a $68,715 decrease in costs
attributable  to business  development  and  financing  (classified  in previous
reports as costs of unconsummated  acquisitions).  Interest expense increased by
$7,621 during this period.

Jacobs  &  Company  ("Jacobs"),  a  wholly  owned  subsidiary  of  NELX,  is the
investment  advisor to the Jacobs & Company Mutual Fund (the "Fund").  While the
Fund is responsible for its own operating expenses,  Jacobs, as the advisor, has
agreed to limit the Fund's aggregate  annual operating  expenses to 2.00% of the
average net assets.  Under this expense  limitation  agreement,  Jacobs absorbed
approximately  $17,043 of the Fund's  operating  expenses during the three-month
period  ended  February  28,  2003.  As the Fund grows in size (of assets  under
management),  expenses  (in  excess of the 2%  level)  absorbed  by Jacobs  will
decrease  until such time as the Fund  reaches  sufficient  size to support  its
on-going operating costs. In contrast,  as the Fund grows in size, revenues from
investment  advisory  fees  will  increase.  Additionally,   should  the  Fund's

                                       3
<PAGE>

operating  expense ratio fall below the 2.00% level,  the costs  absorbed by the
Company  are  reimbursable  to it for a  period  of up to seven  years.  For the
three-month period ended February 28, 2003, the Fund's investment  Advisory fees
amounted to $28,278 as compared  to $24,698  for the  corresponding  three-month
period ended February 28, 2002.

Interest expense for the three-month  period ended February 28, 2003 was $28,646
as compared with $21,025 for the  corresponding  period ended February 28, 2002.
The  increase  in  interest  expense  is  attributable  to the  increase  in the
Company's short and long-term indebtedness incurred to fund ongoing operations.

RESULTS OF OPERATIONS FOR THE NINE MONTH PERIOD ENDED FEBRUARY 28, 2003
-----------------------------------------------------------------------

For the nine-month  period ended  February 28, 2003,  the Company  experienced a
loss of  $537,354  as compared  with a loss of  $754,803  for the  corresponding
period ended February 28, 2002.

Revenues for the nine-month  period ended February 28, 2003 were $252,928 versus
$249,281 for the  corresponding  period ended  February 28, 2002  representing a
1.5%  increase.  This  increase  is  comprised  of a 6.4%  increase  in revenues
attributable  to the  investment  management  segment  and a 29.9%  decrease  in
revenues attributable to the surety segment of the business.

Revenues from the investment management segment were $229,094 for the nine-month
period ended  February 28, 2003 as compared with $215,276 for the same period in
the previous year, an increase of $13,818. As investment advisory fees are based
on the market value of assets under management,  some fluctuation will occur due
to overall market conditions,  especially during periods of extreme  adjustments
such as have  been  recently  experienced.  For the  most  part,  however,  such
revenues will remain relatively  constant from period to period,  with any large
fluctuations   being  attributable  to  the  growth  or  loss  of  assets  under
management.

Revenues from the surety  segment were $23,833 for the  nine-month  period ended
February  28, 2003 as compared  with $34,005 for the same period in the previous
year,  a decrease  of  $10,172.  Revenue  for this  segment of the  business  is
typically more "seasonable"  from period to period,  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 would  normally
reflect  the  overall  growth or loss of  business,  but in this case is largely
attributable to a reduction in the commission rate paid by the principal  market
in which the Company places its business.

Operating  expenses  for the  nine-month  period  ended  February  28, 2003 were
$790,284 as compared with  $1,031,732 for the  comparable  period ended February
28, 2002, a decrease of $241,448.  The principal  elements  accounting  for this
reduction  are mutual fund direct costs and expenses  which were $22,062 for the
nine-month  period  ended  February  28,  2003,  as compared to $124,689 for the
comparable period ended February 28, 2002 and acquisition-related expenses which
were $105,760 for the nine- month period ended February 28, 2003, as compared to
$165,420 for the comparable period ended February 28, 2002.

Interest  expense for the nine-month  period ended February 28, 2003 was $87,857
as compared with $49,366 for the  corresponding  period ended February 28, 2002.
The  increase  in  interest  expense  is  attributable  to the  increase  in the
Company's short and long-term indebtedness incurred to fund ongoing operations.

                                       4
<PAGE>

FUTURE DIRECTION OF COMPANY
---------------------------

The Company is focusing  its efforts on the  expansion  of the ongoing  business
activities  of Jacobs &  Company,  namely  investment  management  and  advisory
services,  and secondarily to the insurance  (surety)  business of NELX's wholly
owned subsidiary FS Investments, Inc. (FSI).

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,  including the Jacobs & Company Mutual Fund. In addition to growing the
number  of  private  clients,  Jacobs & Co. is  working  to  develop  additional
distribution  channels  for the  Mutual  Fund,  which  holds  much  promise  for
capturing additional  investment management business.  Additionally,  the Mutual
Fund provides an ideal vehicle for the  collateralized  surety bonding  programs
offered by FSI through its subsidiary  Triangle Surety Agency,  Inc.  Management
continues to believe this segment of its business holds much promise for growth.

The Company  has been  working to develop  strategic  alliances  with  insurance
companies that will adopt  collateralized  bonding programs.  Traditional surety
programs  continue  to  experience   significant  problems,   and  the  lack  of
availability  of bonding to many market  segments  has become  critical.  FSI is
reviewing possible insurance company acquisition targets and, as an alternative,
is seeking program  management  relationships  that will enable it to expand the
distribution of its surety programs to fill this market niche.

ANALYSIS OF FINANCIAL CONDITION
-------------------------------

Management  remains  optimistic  with  respect  to the  growth of the  Company's
business  as  described  above,  but the rate of such  growth  is  difficult  to
predict.  As of February 28, 2003, a deficiency in working capital exists as the
Company's  current  liabilities  exceed  its  current  assets  by  approximately
$1,120,000.  Management  has met  operating  deficits  for the nine months ended
February  28, 2003  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.


                                       5
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

     None.


ITEM 2. CHANGE IN SECURITIES

     None.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None.


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

     None.


ITEM 5. OTHER INFORMATION

     None.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  None.

     (b)  None.









                                       6
<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:  April 24, 2003                    By:/s/  John M. Jacobs
        --------------                    -------------------------------------
                                          John M. Jacobs
                                          President and Director
























                                       7