|Table of Contents


			**U.S. SECURITIES AND EXCHANGE COMMISSION**

			Washington, D.C. 20549**FORM 10-QSB**
|------------------------------------------------------------------------------------------------------------

|(Mark One)
|----------
|[X]       
|[ ]       

|--------  --------

Commission file number 0-27845**TRANSAX INTERNATIONAL LIMITED**
---------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|**COLORADO**
			------------------------------
			(State or other jurisdiction of incorporation of organization)                                                                                                                                                                                                                                               
|7545 Irvine Center Drive, Suite 200
Irvine, California 92618
--------------------------------------
(Address of Principal Executive Offices)

(949) 623-8316
-------------------------
(Issuer's telephone number)


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

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|Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Yes  [X]
				  ---- | No
				----
|------------------- | -----------

|State the number of shares outstanding of each of the issuer's classes of common equity,
				as of the latest practicable date:
|-------------------------------------------------------------------------------------------------------------------------------
|Common Stock, $.00001 par value                                                                                                
|Transitional Small Business Diclosure Format (check one)                                                                       

|Yes
				  ---- | No  [X]
				----
|-------------- | ----------------

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|Table of Contents
		**PART I. FINANCIAL INFORMATION****ITEM 1. Financial Statements**Consolidated Balance Sheet [Unaudited]Consolidated Statements of Operations [Unaudited]Consolidated Statements of Stockholders' Deficit [Unaudited]Consolidated Statements of Cash Flows [Unaudited]Notes to the Unaudited Consolidated Financial Statements

			**ITEM 2. Management's Discussion and Analysis or Plan of Operations**GeneralCurrent Business OperationsResults of OperationsLiquidity and Capital ResourcesPlan of OperationsMaterial AgreementsOff Balance Sheet Arrangements

			**ITEM 3. Controls and Procedures**



		**PART II. OTHER INFORMATION****ITEM 1. Legal proceedings****ITEM 2. Changes in Securities and Use of Proceeds****ITEM 3. Defaults upon Senior Securities****ITEM 4. Submission of Matters to Vote of Securities Holders****ITEM 5. Other Information****ITEM 6. Exhibits and Other Information on Form 8-K**

		**EXHIBIT 11.1****EXHIBIT 31.1****EXHIBIT 31.2****EXHIBIT 32.1**
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|**PART I. FINANCIAL INFORMATION**Back to Table of Contents
		**ITEM 1. Financial Statements**

		**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES
		Consolidated Financial Statements [Unaudited]
		March 31, 2004**Back to Table of Contents



Statements made in this Form 10-QSB (the "Quarterly Report") that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the "Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. Transax International Limited (the "Company") intends that such forward-looking statements be subject to the safe harbors for such statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond the control of the Company that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital and unexpected costs. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES**
			**Consolidated Balance Sheet [Unaudited]
			March 31, 2004**Back to Table of Contents
|-------------------------------------------------------------------------------------------------------------------------------------------

|**ASSETS
			Current**                                                                                                         
|------------------------------------------------------------------------------------------------------------------------------
|Cash                                                                                                                          
|Accounts receivable 
			   (Net of allowance for doubtful accounts of $0)                                                     
|Prepaid expenses and other current assets                                                                                     
|                                                                                                                              
|**Total Current Assets**                                                                                                      
|**Software Development Costs,** net                                                                                           
|                                                                                                                              
|**Property and Equipment,** net                                                                                               
|                                                                                                                              
|**Total Assets**                                                                                                              
|                                                                                                                              
|**LIABILITIES
			Current**                                                                                                    
|Current portion of capital lease obligation                                                                                   
|Accounts payable and accrued expenses                                                                                         
|Accrued payroll and related expenses                                                                                          
|Advances payable                                                                                                              
|Due to related party                                                                                                          
|Loan from related party                                                                                                       
|Convertible loans from related party                                                                                          
|                                                                                                                              
|**Total Current Liabilities**                                                                                                 
|**Capital Lease Obligation,** net of current portion                                                                          
|                                                                                                                              
|**Total Liabilities**                                                                                                         
|                                                                                                                              
|**COMMITMENTS and CONTINGENCIES** (Note 11)**STOCKHOLDERS' DEFICIT**                                                          
|Common stock 0.00001 par value;                                                                                               
|100,000,000 shares authorized;                                                                                                
|15,303,217 shares issued and outstanding                                                                                      
|Paid-in capital                                                                                                               
|Share subscriptions received                                                                                                  
|Accumulated deficit                                                                                                           
|Other comprehensive income :                                                                                                  
|Cumulative foreign currency translation adjustment                                                                            
|                                                                                                                              
|**Total Stockholders' Deficit**                                                                                               
|                                                                                                                              
|**Total Liabilities and Stockholders' Deficit**                                                                               
|                                                                                                                              
|The accompanying notes are an integral part of these unaudited consolidated financial statements.
			Back to Table of Contents

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|**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES**
			**Consolidated Statement of Operations [Unaudited]**Back to Table of Contents
|-----------------------------------------------------------------------------------------------------------------------------------

|                                                                                                                               | **For the three months ended March 31,**
|------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------
|**2004**                                                                                                                       | **2003**                                
|                                                                                                                              
|**Revenues**                                                                                                                   | $137,584                                
|                                                                                                                              
|Cost of product support services                                                                                               | 84,850                                  
|Payroll and related benefits                                                                                                   | 81,943                                  
|Research & development costs                                                                                                   | 19,365                                  
|Professional fees                                                                                                              | 97,639                                  
|Management & consulting fees - related party                                                                                   | 78,900                                  
|Stock based compensation                                                                                                       | -                                       
|Investor relations                                                                                                             | 16,810                                  
|Depreciation and amortization                                                                                                  | 17,996                                  
|General & administrative                                                                                                       | 101,751                                 
|                                                                                                                              
|**Total Operating Expenses**                                                                                                   | 499,254                                 
|                                                                                                                              
|**Operating Loss**                                                                                                             | (361,670)                               
|                                                                                                                              
|**Other Expenses:**                                                                                                            |                                         
|Other expense                                                                                                                  | (7,832)                                 
|Foreign exchange losses                                                                                                        | (17,310)                                
|Interest expense                                                                                                               | (25,137)                                
|Interest expense - related party                                                                                               | (20,221)                                
|                                                                                                                              
|**Total Other Expenses**                                                                                                       | (70,500)                                
|                                                                                                                              
|**Net Loss**                                                                                                                   | $(432,170)                              
|                                                                                                                              
|**Net loss per Share:**                                                                                                        |                                         
|**Basic and Diluted**                                                                                                          | $(0.03)                                 
|                                                                                                                               |                                         
|**Weighted Average Shares Outstanding**                                                                                        | 15,028,037                              
|                                                                                                                               |                                         
|The accompanying notes are an integral part of these unaudited consolidated financial statements.
			Back to Table of Contents

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|**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES**
			**Consolidated Statement of Stockholders' Deficit [Unaudited]
			For the three months ended March 31, 2004**Back to Table of Contents
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                           | **Common Stock - Par Value** | **Share Subscriptions** | **Paid-In Capital** | **Accumulated Deficit** | **Accumulated Other Comprehensive Income (Loss)** | **Total Stockholders' [Deficit]**
|------------------------------------------------------------------------------------------ | ---------------------------- | ----------------------- | ------------------- | ----------------------- | ------------------------------------------------- | ---------------------------------
|**Shares**                                                                                 | **Amount**                  
|**Balance, January 1, 2004**                                                               | **14,029,647**               | **$141**                | **421,293**         | **$4,590,093**          | **$(6,687,682)**                                  | **$54,676**                      
|Issuance of stock for settlement of share subscriptions,
			January 7, 2004                | 300,000                      | 3                       | (75,000)            | 74,997                  |                                                   |                                  
|Issuance of stock for settlement of share subscriptions,
			Related Party, January 7, 2004 | 373,570                      | 3                       | (93,393)            | 93,390                  |                                                   |                                  
|Issuance of restricted stock for services,
			January 26, 2004                             | 300,000                      | 3                       |                     | 74,997                  |                                                   |                                  
|Issuance of stock for options exercised for settlement of debt,
			February 10, 2004       | 300,000                      | 3                       |                     | 74,997                  |                                                   |                                  
|Comprehensive Income (Loss)                                                               
|Net loss for period                                                                        |                              |                         |                     |                         | (432,170)                                         |                                  
|Foreign currency translation adjustments                                                   |                              |                         |                     |                         |                                                   | 17,558                           
|Total comprehensive income (loss)                                                          |                              |                         |                     |                         |                                                   |                                  
|**Balance, March 31, 2004**                                                                | **15,303,217**               | **$153**                | **$252,900**        | **$4,908,474**          | **$(7,119,852)**                                  | **$72,234**                      

|The accompanying notes are an integral part of these unaudited consolidated financial statements.
			Back to Table of Contents
|------------------------------------------------------------------------------------------------------------------------------

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|**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES**
			**Consolidated Statements of Cash Flows [Unaudited]**Back to Table of Contents
|------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                                               | **For the three months ended March 31**
|------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------
|**2004**                                                                                                                       | **2003**                               
|                                                                                                                              
|**Cash Flows from (used in)
			Operating Activities**                                                                          |                                        
|Net (loss) for the period                                                                                                      | $(432,170)                             
|Adjustments to reconcile net loss to net cash used in operating activities:                                                    |                                        
|-depreciation and amortization                                                                                                 | 37,361                                 
|-stock based compensation                                                                                                      | -                                      
|-shares issued for services rendered                                                                                           | 75,000                                 
|Changes in assets and liabilities:                                                                                             |                                        
|-prepaid expenses and other current assets                                                                                     | (34,755)                               
|-accounts receivable                                                                                                           | (27,296)                               
|-accounts payable                                                                                                              | 58,823                                 
|-accrued interest payable, related party                                                                                       | 20,221                                 
|-accrued interest payable                                                                                                      | 4,061                                  
|-due to related party                                                                                                          | 86,707                                 
|-accrued payroll and related expenses                                                                                          | 73,208                                 
|-other                                                                                                                         | (1,403)                                
|                                                                                                                              
|**Cash Flows - Operating Activities**                                                                                          | (140,247)                              
|                                                                                                                              
|**Cash flows from (used in) Investing Activities**                                                                             |                                        
|Capitalized software development costs                                                                                         | (83,317)                               
|Acquisition of property and equipment                                                                                          | -                                      
|                                                                                                                              
|**Cash Flows - Investing Activities**                                                                                          | (83,317)                               
|                                                                                                                              
|**Cash flows from (used in) Financing Activities**                                                                             |                                        
|Advances from related party                                                                                                    | 72,500                                 
|Repayments under capital lease obligations                                                                                     | (12,005)                               
|Proceeds from loan - related party                                                                                             | 139,500                                
|Proceeds from convertible loans - related party                                                                                | -                                      
|                                                                                                                              
|**Cash Flows - Financing Activities**                                                                                          | 199,995                                
|                                                                                                                              
|**Effect of Exchange Rate Changes on Cash**                                                                                    | 17,558                                 
|                                                                                                                              
|**Net Increase (Decrease) in Cash**                                                                                            | (6,011)                                
|**Cash, Beginning of Period**                                                                                                  | 10,472                                 
|                                                                                                                              
|**Cash, End of Period**                                                                                                        | $4,461                                 
|                                                                                                                              
|The accompanying notes are an integral part of these unaudited consolidated financial statements.
			Back to Table of Contents

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|**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES**
			**Consolidated Statements of Cash Flows [Unaudited] (Continued)**Back to Table of Contents
|------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                                            | **For the three months March 31,**
|--------------------------------------------------------------------------------------------------------------------------- | ----------------------------------
|**2004**                                                                                                                    | **2003**                          
|**SUPPLEMENTAL CASH DISCLOSURES**                                                                                           |                                   
|Cash paid for interest                                                                                                      | $22,683                           
|Cash paid for interest - Related Party                                                                                      | -                                 
|Cash paid for income taxes                                                                                                  | -                                 
|**SUPPLEMENTAL NON-CASH DISCLOSURES**                                                                                       |                                   
|204,000 shares issued for finders' fees [pre merger]                                                                        | -                                 
|Issuance of restricted stock for services, January 26, 2004                                                                 | $75,000                           
|Issuance of stock for options exercised for settlement of debt, February 10, 2004                                           | $75,000                           
|The accompanying notes are an integral part of these unaudited consolidated financial statements.
Back to Table of Contents

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|**Notes to the Unaudited Consolidated Financial Statements**
		Back to Table of Contents

		**1. The Company**
Transax International Limited (“TNSX” or the “Company”)
  was incorporated in the State of Colorado. The Company currently trades on the
  OTC Bulletin Board under the symbol "TNSX" and the Frankfurt and Berlin
  Stock Exchanges under the symbol "TX6".
The Company, through its wholly owned subsidiary TDS Telecommunication Data
  Systems LTDA (“TDS”), is an international provider of information
  network solutions specifically designed for the healthcare providers and health
  insurance companies. The MedLink SolutionTM enables the real time automation
  of routine patient eligibility, verification, authorizations, claims processing
  and payment functions.
As of January 1, 2004, the Company is no longer a development stage company as defined in Financial Accounting Standards Board ("FASB") Statement No. 7, *Accounting and Reporting For Development Stage Companies*.
The accompanying unaudited consolidated financial statements of the Company
  have been prepared in accordance with Regulation S-B promulgated by the Securities
  and Exchange Commission and does not include all the information and footnotes
  required by generally accepted accounting principals in the United States of
  America for complete financial statements. In the opinion of management, these
  interim unaudited consolidated financial statements include all adjustments
  necessary in order to make the financial statements not misleading. The results
  of operations for such interim periods are not necessarily indicative of results
  for a full year. The unaudited consolidated interim financial statements should
  be read in conjunction with the audited consolidated financial statements and
  notes thereto of the Company and results of its operations included in the audited
  financial statements for the year ended December 31, 2003. All material intercompany
  accounts and transactions between the Company and its subsidiaries have been
  eliminated.

**2. Going Concern**
Since inception, the Company has incurred cumulative net losses of approximately
  $7,119,900 and has a stockholders’ deficit of approximately $1,886,100
  at March 31, 2004. The Company expects to continue to incur substantial losses
  to develop its products and distribution networks, and does not expect to attain
  profitability in the near future. Since its inception, the Company has funded
  operations through short-term borrowings and equity investments in order to
  meet its strategic objectives. The Company's future operations are dependent
  upon external funding and its ability to increase revenues and reduce expenses.
  Management believes that sufficient funding will be available from additional
  related party borrowings and private placements to meet its business objectives
  including anticipated cash needs for working capital, for a reasonable period
  of time. However, there can be no assurance that the Company will be able to
  obtain sufficient funds to continue the development of its software products
  and distribution networks.
Further, since fiscal 2000, the Company has been deficient in the payment of
  Brazilian payroll taxes and Social Security taxes. At March 31, 2004, these
  deficiencies amounted to approximately $369,700, including a provision of interest
  and fines of approximately $74,400 (See Note 11). This payroll liability is included as part
  of the accrued payroll and related expenses within the consolidated balance
  sheet.
  As a result of the foregoing, there exists substantial doubt about the Company’s
  ability to continue as a going concern. These consolidated financial statements
  do not include any adjustments that might result from the outcome of this uncertainty.

**3. Summary of Significant Accounting Policies**
**a. Revenue Recognition**
    Revenue from the sale of software products, which do not require any significant
    production, modification or customization for the Company’s targeted
    customers and do not have multiple elements, is recognized when: (1) persuasive
    evidence of an arrangement exists; (2) delivery has occurred; (3) the Company’s
    fee is fixed and determinable, and; (4) collectibility is probable.  As of March 31, 2004,
the Company does not have any multiple elements arrangement with any of its customers.
  **b. Property and Equipment, net**
    Property and equipment is stated at cost less accumulated depreciation and
    amortization. Depreciation and amortization is recorded on a straight-line
    basis over the estimated useful lives (approximately 2 – 10 years) of
    the assets. Expenditures for maintenance and repairs that do not improve or
    extend the life of the expected assets are expensed to operations, while major
    repairs are capitalized.
  **c. Foreign Currency Translation**
    The assets and liabilities of the Company’s foreign subsidiaries are translated
    into U.S. dollars at the year-end exchange rates and all revenue and expenses
    are translated into U.S. dollars at the average exchange rates prevailing
    during the periods in which these items arise. Translation gains and losses
    are deferred and accumulated as a component of other comprehensive income
    in stockholders’ deficit. Transaction gains and losses that arise from
    exchange rate fluctuations on transactions denominated in a currency other
    than the functional currency (TDS – Brazilian Real, Transax Australia,
    - Australian dollar and Transax and the Company – USD) are included
    in the Statement of Operations as incurred.
  **d. Loss Per Share**
Basic loss per share is computed by dividing the loss for the period by the weighted average number of common shares outstanding for the period.
    Diluted loss per share reflects the potential dilution of securities by
    including other potential common stock, including stock options and warrants,
    in the weighted average number of common shares outstanding for a period,
    if dilutive. 
    At March 31, 2004, there were 4,748,570 outstanding warrants and 2,443,270
    outstanding options that were granted under the year 2003 incentive stock
    option plan (See Note 8). These securities may dilute the earnings per share
    calculation in the future.
  **e. Comprehensive Income**
    The Company has adopted SFAS No. 130, Reporting Comprehensive Income. Other
    comprehensive income, which currently includes only foreign currency translation
    adjustments, is shown net of tax in the Statement of Stockholders’
    Deficit.
  **f. Stock Based Compensation**
    The Company accounts for stock-based employee compensation arrangements in
    accordance with the provisions of Accounting Principles Board (“APB”)
    Opinion No. 25, *Accounting for Stock Issued to Employees*, and complies with
    the disclosure provisions of SFAS No. 123, *Accounting for Stock-Based Compensation*.
    Under APB No. 25, compensation expense is recognized based on the difference,
    if any, on the date of grant between the estimated market value of the Company’s
    stock and the amount an employee must pay to acquire the stock. Compensation
    expense is recognized immediately for past services and rateably for future
    services over the option-vesting period.
  The Company accounts for equity instruments issued in exchange for the receipt
    of goods or services from other than employees in accordance with SFAS No.
    123 and the conclusions reached by the Emerging Issues Task Force (“EITF”)
    in Issue No. 96-18, Accounting for Equity Instruments That Are Issued to Other
    Than Employees for Acquiring or in Conjunction with Selling, Goods or Services.
    Costs are measured at the estimated fair market value of the consideration
    received or the estimated fair value of the equity instruments issued, whichever
    is more reliably measurable. The value of equity instruments issued for consideration
    other than employee services is determined on the earlier of a performance
    commitment or completion of performance by the provider of goods or services
    as defined by EITF No. 96-18.

**4. Financial Instruments / Credit risk**
The Company performs certain credit evaluation procedures and does not require
  collateral for financial instruments subject to credit risk. The Company believes
  that credit risk is limited because the Company routinely assesses the financial
  strength of its customers, and based upon factors surrounding the credit risk
  of its customers, establishes an allowance for uncollectible accounts and, as
  a consequence, believes that its accounts receivable credit risk exposure beyond
  such allowances is limited.
  The Company’s principal business activities are located in Brazil. Although
  Brazil is considered to be economically stable, it is always possible that unanticipated
  events in foreign countries could disrupt the Company’s operations. 
  The Company had net sales to 3 major customers during the quarter ended March
  31, 2004, and to 2 major customers during the quarter ended March 31, 2003.
  Currently, TDS has three clients: Camed – Caixa de Assistência dos
  Funcionários do Banco Nordeste, Golden Cross and Bradesco Seguros, with
  Golden Cross being currently responsible for more than 90% of revenues during
  the quarter ended March 31, 2004.
The Company maintains cash deposits with financial institutions, which from
  time to time may exceed federally insured limits. The Company has not experienced
  any losses and believes it is not exposed to any significant credit risk from
  cash. At March 31, 2004 the Company did not have cash balances on deposit that
  exceeded the federally insured limits.

**5. Software Development Costs**
The Company established the technological feasibility of its MedLink Solutions
  in the year ended December 31, 2002. Therefore, from Inception to December 31,
  2002, all costs incurred in establishing the technological feasibility of the
  MedLink Solutions were charged to expense when incurred, as required by Statement
  of Financial Accounting Standards (“SFAS”) Statement No. 2, Accounting
  for Research and Development Costs.
In accordance with SFAS No. 86, Accounting for the Costs of Computer Software
  to be Sold, Leased or Otherwise Marketed, the Company has capitalized certain
  of its software development costs incurred. The Company began to amortize the
  capitalized costs in the third quarter of the fiscal year ending December 31,
  2003, based on the current and future revenue for each product. Amortization
  of these costs for the three-month period ended March 31, 2004 of approximately
  $19,400 (2003 : $0) is included in the statement of operations as part of
  research and development expenses.


**6. Property and Equipment**
Property and equipment are comprised of the following:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                 | March 31, 2004
|------------------------------------------------ | --------------
|Computer equipment                               | $216,125      
|Furniture and fixtures                           | 14,882        
|Other                                            | 43,354        
|                                                 |               
|Total at cost                                    | 274,361       
|Less : accumulated depreciation and amortization | 188,278       
|                                                 |               
|Net property and equipment                       | $86,083       

|Depreciation and amortization charged to operations is approximately $18,000 and $50,700 for each of the quarters ended March 31, 2004 and 2003 respectively.


**7. Foreign operations**
The Company identifies its operating segments based on its business activities
  and geographical locations. The Company operates within a single operating segment,
  being a provider of information network solutions specifically designed for
  healthcare providers and health insurance companies. The Company operates in
  Brazil, Australia and Mauritius, and has a registered mailing address in Singapore
  and in the USA. All of the Company’s assets are located in Brazil.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                    | **Three months ended March 31,**
|--------------------------------------------------- | --------------------------------
|**2004**                                            | **2003**                        
|                                                    |                                 
|Net sales to Unaffiliated Customers                 |                                 
|Brazil                                              | $137,584                        
|USA                                                 | -                               
|Singapore                                           | -                               
|Australia                                           | -                               
|Mauritius                                           | -                               
|                                                    |                                 
|                                                    | $137,584                        
|Loss from operations                                |                                 
|Brazil                                              | (295,336)                       
|USA                                                 | (184,778)                       
|Singapore                                           | (11,623)                        
|Australia                                           | (84)                            
|Mauritius                                           | (7,433)                         
|                                                    |                                 
|                                                    | (499,254)                       
|                                                    |                                 
|                                                    | (361,670)                       
|Other income (expenses)                             |                                 
|Brazil                                              | (46,948)                        
|USA                                                 | (23,978)                        
|Singapore                                           | -                               
|Australia                                           | 426                             
|Mauritius                                           | -                               
|                                                    |                                 
|                                                    | (70,500)                        
|                                                    |                                 
|Net loss as reported in the accompanying statements | $(432,170)                      
|                                                    |                                 

|**8. Share Capital**
**Common Stock**
  On January 7, 2004, the Company issued 300,000 shares of common stock for share
  subscriptions received in 2003 of $75,000.
On January 7, 2004, the Company issued 373,570 units for share subscriptions received in 2003,
  of approximately $93,400 owed to a related
  party whose officer is an officer of the Company. The units were issued to assignees of the debt holder. Each unit is comprised of
  one common share and one warrant. Each warrant entitles the holder to purchase
  an additional share of TNSX’s common stock at $0.50, for a period of 12
  months.
On January 26, 2004, the Company issued 300,000 shares of restricted common
  stock for services rendered, for net value of $75,000 included in the statement
  of operations for the three-month period ended March 31, 2003 as professional
  fees.
On February 12, 2004, the Company issued 300,000 shares of common stock for
  options exercised, for net proceeds of $75,000. The proceeds were utilized for
  the settlement of advances payable.
As at March 31, 2004, 15,303,217 shares were issued and outstanding.
**Stock Options**
  The Board of Directors of Transax approved the adoption of an incentive Stock
  Option Plan, effective January 1, 2003.
As at March 31, 2004, the Company granted 6,999,040 stock options and cancelled
  2,499,040 stock options under the Plan. As at March 31, 2004, 2,056,730 stock
  options were exercised, including 300,000 during the quarter ended March 31
  2004. At March 31, 2004, 2,443,270 stock options were outstanding. There were
  no stock options granted during the quarter ended March 31, 2004. These securities
  may dilute the earnings per share calculation in the future.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The table below lists the exercise prices and expiry date of outstanding options.
|---------------------------------------------------------------------------------

|                                                                 |                                       | **Number of Options** | **Date of Issue** | **Exercise Price** | **Expiration Date** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Life**
|---------------------------------------------------------------- | ------------------------------------- | --------------------- | ----------------- | ------------------ | ------------------- | ----------------------------------- | -----------------------------------------------
|                                                                 |                                      
|Granted,                                                         | August 14, 2003                       | 4,500,000             | 14-Aug-03         | 0.50               | 14-Aug-08           | $0.36                               | 3.19                                           
|                                                                 | exercised during 2003                 | (1,206,730)           |                   |                    |                     |                                     |                                                
|                                                                 | cancelled during 2003                 | (1,293,270)           |                   |                    |                     |                                     |                                                
|                                                                 |                                       |                       |                   |                    |                     |                                     |                                                
|                                                                 | number exercisable, December 31, 2003 | 2,000,000             |                   |                    |                     |                                     |                                                
|                                                                 | exercised during Q1 2004              | -                     |                   |                    |                     |                                     |                                                
|                                                                 | cancelled during Q1 2004              | -                     |                   |                    |                     |                                     |                                                
|                                                                 |                                       |                       |                   |                    |                     |                                     |                                                
|                                                                 | number exercisable, March 31, 2004    | 2,000,000             |                   |                    |                     |                                     |                                                
|Granted,                                                         | October 1, 2003                       | 1,293,270             | 1-Oct-03          | 0.50               | 22-Oct-08           | -                                   | -                                              
|                                                                 | exercised during 2003                 | (87,500)              |                   |                    |                     |                                     |                                                
|                                                                 | cancelled during 2003                 | (1,205,770)           |                   |                    |                     |                                     |                                                
|                                                                 |                                       |                       |                   |                    |                     |                                     |                                                
|                                                                 | number exercisable                    | -                     |                   |                    |                     |                                     |                                                
|Granted,                                                         | December 1, 2003                      | 1,205,770             | 1-Dec-03          | 0.25               | 1-Dec-08            | $0.07                               | 1.27                                           
|                                                                 | exercised during 2003                 | (462,500)             |                   |                    |                     |                                     |                                                
|                                                                 | cancelled during 2003                 | -                     |                   |                    |                     |                                     |                                                
|                                                                 |                                       |                       |                   |                    |                     |                                     |                                                
|                                                                 | number exercisable, December 31, 2003 | 743,270               |                   |                    |                     |                                     |                                                
|                                                                 | exercised during Q1 2004              | 300,000               |                   |                    |                     |                                     |                                                
|                                                                 | cancelled during Q1 2004              | -                     |                   |                    |                     |                                     |                                                
|                                                                 |                                       |                       |                   |                    |                     |                                     |                                                
|                                                                 | number exercisable, March 31, 2003    | 443,270               |                   |                    |                     |                                     |                                                
|Balance,                                                         | March 31, 2004                        | 2,443,270             |                   |                    |                     | $0.43                               | 4.46 years                                     
|                                                                 |                                       |                       |                   |                    |                     |                                     |                                                
|The weighted average fair value of options outstanding is $0.30.

|**Warrants**
As at March 31, 2003, 4,748,570 warrants were outstanding.
The Company has not issued additional warrants during the quarter ended March 31, 2004.
These securities may dilute the earnings per share calculation in the future.
The table below lists the exercise prices and expiry date of outstanding warrants.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                  |                   | **Number of Warrants** | **Date of Issue** | **Exercise Price** | **Expiration Date** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Life**
|----------------------------------------------------------------- | ----------------- | ---------------------- | ----------------- | ------------------ | ------------------- | ----------------------------------- | -----------------------------------------------
|                                                                  |                  
|Granted,                                                          | August 14, 2003   | 4,100,000              | 14-Aug-03         | 1.00               | 14-Aug-08           |                                     |                                                
|Granted,                                                          | August 26, 2003   | 50,000                 | 26-Aug-03         | 1.50               | 26-Aug-04           |                                     |                                                
|Granted,                                                          | November 21, 2003 | 225,000                | 21-Nov-03         | 1.00               | 20-Nov-05           |                                     |                                                
|Granted,                                                          | December 31, 2003 | 373,570                | 31-Dec-03         | 0.50               | 31-Dec-04           |                                     |                                                
|                                                                  |                   |                        |                   |                    |                     |                                     |                                                
|Balance,                                                          | December 31, 2003 | 4,748,570              |                   |                    |                     | $0.93                               | 4.06                                           
|                                                                  |                   |                        |                   |                    |                     |                                     |                                                
|The weighted average fair value of warrants outstanding is $0.32.

|**9. Cash Advances**
As of January 1, 2004 the Company had approximately $152,600 of advances payable
  and accrued interest to a non-related company outstanding. During the quarter
  ended March 31, 2004, the Company issued 300,000 shares of its common stock
  for the settlement of approximately $37,500 of advances payable and $37,500
  of accrued expenses to the non-related company. These advances accrue interest
  at approximately 1% per month [12% per annum]. The Company accrued approximately
  $3,500 for interest during the quarter ended March 31, 2004 and the outstanding payable
  and accrued interest amounted to approximately $118,600 at that date.
**10. Related Parties**
**Due to Related Parties**
During the quarter ended March 31, 2004, a related party whose officer is an
  officer of the Company advanced the Company approximately $72,500, for working
  capital purposes. These advances accrue 1% interest per month. The Company incurred
  approximately $7,400 during the quarter ended March 31, 2004, in interest. At
  March 31, 2004, approximately $268,300 in advances and accrued interest was
  due to this related company. This balance is included in due to related parties
  on the balance sheet.
  
    Within the statement of operations, the following related party costs were
    expensed during the quarter ended March 31, 2004: The Company incurred $33,000 in consulting and management fees (2003:
    $33,000) to a director of the Company. At March 31, 2004, approximately $116,600
    in consulting fees and approximately $69,500 in expenses were outstanding
    to this director;
    The Company incurred $24,000 in consulting and management fees (2003:
    $24,000) to a company whose officer is an officer of the operating subsidiary
    of the Company. At March 31, 2004, $13,000 in consulting fees was outstanding
    to this officer;
    The Company incurred approximately $0 in consulting and management
    fees (2003: $11,100) to a director of the Company. At March 31, 2004, approximately
    $6,400 in consulting fees and approximately $3,100 in expenses were outstanding
    to this director;
    The Company incurred approximately $21,900 in consulting fees (2003:
    $14,600) to a company whose officer is an officer of the Company. At March
    31, 2004, approximately $45,100 in consulting fees and approximately $3,400
    in expenses were outstanding to this officer;
    The Company incurred approximately $0 in consulting fees (2003:
    $0) to a company whose director is a director of the Company. At March 31,
    2004, approximately $25,600 in consulting fees was outstanding to this director;
    The Company incurred approximately $ 20,200 in interest (2003: $2,000)
    to a company whose director is a director of the Company.**Loan**
During the quarter ended March 31, 2004, the Company borrowed approximately
  $139,500 from an officer of the Company for working capital purposes. The loan
  accrues 0.8% interest per month, compounded, has a term of twelve months, and
  the debt is repayable quarterly in arrears. As at March 31, 2004, approximately
  $900 in interest was accrued on this loan.
**Convertible Loans**
At March 31, 2004, the loans for $255,000 and $100,000, due to a related party
  whose officer is an officer of the Company, were in default. The lender carries
  the option during the term of the loan, and any extension thereto, to convert
  the principal and interest into common stock of TNSX, at a conversion price
  of $0.25 per unit. Each unit is comprised of one common share and one warrant.
  Each warrant entitles the holder to purchase an additional share of the Company’s
  common stock at $0.50, for a period of twelve months. The holder of the notes
  has not exercised this conversion feature. The interest rate of the loan is
  12% per annum compounded monthly. As at March 31, 2004, approximately $44,100
  in interest was accrued on these two loans.
The Company did not incur beneficial conversion charges because the conversion
  price was equivalent to the average offering price for equity when these loans
  became convertible.

**11. Subsequent events**
Effective April 1, 2004, the Company has entered into a payment program with the Brazilian authorities whereas the Social Security ("INSS") taxes due and applicable penalties and interests will be repaid over a period of 60 months.  At March 31, 2004, the Company's INSS tax liabilities were approximately $139,600 plus $13,800 in interest, penalties and fines.  The payment program requires the Company to pay a monthly fixed amount of approximately $2,560 per month.  Discussions are currently ongoing for the Company to enter into a similar payment plan for the remainder of the payroll tax liabilities.  The Company made the first payment as per the plan in April 2004.
  On April 18, 2004, the Company issued 450,000 units for options exercised
    during the year ended December 31, 2003. Each unit is comprised of one common
    share and one half warrant. Each warrant entitles the holder to purchase an
    additional share of TNSX’s common stock at $1.00 until November 20,
    2005. The proceeds, totaling $225,000, were utilized to reduce existing debt.**ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**Back to Table of Contents
**General**Back to Table of Contents
Transax International Limited, a Colorado corporation (the “Company”),
  currently trades on the OTC Bulletin Board under the symbol "TNSX"”.
The Company was incorporated under the laws of the State of Colorado in 1999
  under the name “Vega-Atlantic Corporation”. Previously, the Company
  was engaged in the business of minerals and oil and gas exploration, acquisition
  and development within the United States and worldwide. During August 2003,
  the Company completed the acquisition of Transax Limited, a Colorado private
  corporation (“Transax Limited”), pursuant to a reverse merger and
  changed its name to “Transax International Limited” by filing an
  amendment to its articles of incorporation. 
  As of the date of this Quarterly Report, the Company, through its wholly-owned
  subsidiary TDS Telecommunication Data Systems LTDA. (“TDS”) is an
  international provider of information network solutions, products and services
  specifically designed for the healthcare providers and health insurance companies
  (collectively, the “Health Information Management Products”).
**TDS Telecommunication Data Systems LTDA**
TDS Telecommunication Data Systems LTDA (“TDS”) was incorporated
  under the laws of Brazil on May 2, 1998, and is a wholly-owned subsidiary of
  the Company. As of the date of this Quarterly Report, TDS assists the Company
  in providing information network solutions, products and services within Brazil.
**Transax Australia Pty Ltd.**
Transax Australia Pty Ltd. (“Transax Australia”) was incorporated
  under the laws of the state of New South Wales, Australia on January 19, 2003,
  and is a wholly-owned subsidiary of the Company. As of the date of this Quarterly
  Report, Transax Australia assists the Company in seeking marketing opportunities
  to provide information network solutions, products and services within Australia
  and regionally.
**Medlink Technologies, Inc.**
Medlink Technologies, Inc. (“Medlink”) was incorporated under the
  laws of Mauritius on January 17, 2003, and is a wholly-owned subsidiary of the
  Company. As of the date of this Quarterly Report, Medlink holds the intellectual
  property developed by the Company and is responsible for initiating research
  and development.
**Current Business Operations**Back to Table of Contents
As of the date of this Quarterly Report, the Company, through TDS, is an international
  provider of health information management products, as described below, specifically
  designed for the healthcare providers and health insurance companies. The Company
  is dedicated to improving healthcare delivery by providing to hospitals, physician
  practices and health insurance companies with innovative health information
  management systems to manage coding, compliance, abstracting and record managements
  processes.
The strategic focus of the Company is to become a premier international provider
  of health information management network solutions for the healthcare providers
  and health insurance companies, enabling the real time automation of routine
  patient transactions. Management of the Company believes that the Company’s
  unique combination of complimentary solutions is designed to significantly improve
  the business of healthcare. The Company’s health information management
  products and software solutions are designed to generate operational efficiencies,
  improve cash flow and measure the cost and quality of care.
**MedLink Solution**
The Company has developed a proprietary software trademarked (Brazil only) “MedLink”,
  which was specifically designed and developed for the healthcare and health
  insurance industry enabling the real time automation of routine patient eligibility,
  verifications, authorizations, claims processing and payment functions that
  are currently performed manually (the “MedLink Solution”). A transaction
  fee is charged to the insurer for use of the MedLink Solution.
The MedLink Solution hosts its own network processing system (the “Total
  Connectivity Solution”), whereby the Company is able to provide an insurer
  with the ability to cost effectively process all of the transactions generated
  regardless of location or method of generation. Management of the Company believes
  that the MedLink Solution solves technological and communication problems within
  the healthcare systems by creating a virtual “paperless office”
  for the insurer and total connectivity, regardless of method, for the health
  provider. The MedLink Solution replaces manual medical claims systems and provides
  insurance companies and healthcare providers significant savings through a substantial
  reduction in operational costs. The MedLink Solution allows users to collect,
  authorize and process transaction information in real-time for applications
  including, but not limited to, patient and provider eligibility verification,
  procedure authorization and claims and debit processing. Participants of the
  MedLink Solution include private health insurance companies, group medical companies,
  and healthcare providers.
As of the date of this Quarterly Report the Company has installed approximately
  1,900 solutions into healthcare provider locations throughout Brazil and plans
  to install up to a further 10,000 solutions during fiscal 2004.
**Strategic Alliances**
The Company has developed key strategic alliances with the following technology
  providers to support the MedLink Solution’s unique system architecture
  and design. Management of the Company believes that the establishment of these
  strategic alliances have given the Company a significant competitive advantage
  in Brazil.
BearingPoint Inc. On February 12, 2004, the Company and BearingPoint, Inc. (“BearingPoint”),
  entered into a teaming agreement (the “BearingPoint teaming Agreement”)
  for tendering to Petrobras. Pursuant to the terms and provisions of the BearingPoint
  teaming Agreement, (i) BearingPoint will be responsible for the supply of the
  SmartCards; (ii) BearingPoint will be responsible for the development and maintenance
  of the various applications for the SmartCards; (iii) BearingPoint will be responsible
  for the management and operation of the Card Management Systems (“CMS”);
  (iv) BearingPoint will be responsible for consulting services for the integration
  of the specifications of the project; (iv) BearingPoint will be providing Help
  Desk services for stage one; (vi) TDS will be responsible for the development,
  customization, installation, and maintenance of the MedLink Solutions capture
  methods and transaction services; (vii) TDS will be responsible for development,
  customization, and maintenance of the system authorizer; (viii) TDS will be
  providing Help Desk services for stages two and three; (ix) TDS will be responsible
  for the operation and maintenance of the capture methods and their components;
  (x) TDS will be responsible for consulting services for the integration and
  specification of the project.
**GENS Information – PMS/ASP.** On February 19, 2001, the
  Company and GENS Information (“GENS”), entered into an operating
  agreement (the “GENS Operating Agreement”). Pursuant to the terms
  and provisions of the GENS Operating Agreement: (i) GENS will provide to the
  Company a basic product called “Personal Med”, which is a Windows
  client-server application, running with Delphi front-end and Paradox and Oracle
  DB (which has approximately thirty variations designed around specific exam
  data to be acquired and stored in each medical specialization); and (ii) the
  Company will incorporate the MedLink Solution transaction services within the
  Personal Med allowing for its users to use the MedLink Solution services from
  within their PMS.
As of the date of this Quarterly Report, GENS is implementing versions to its
  Personal Med based on SQL server, and is further developing a web enabled version,
  which will allow doctors to select patients they want to have access through
  the InternetWeb, and a tool to access the database of each patient for this
  centralized base. GENS is also implementing access to doctor’s agenda
  and some direct news to be directed to Internet enabled doctors.
**Vidalink – Drug Management.** On August 29, 2001, the Company
  and Vidalink entered into an operational agreement (the “Vidalink Operational
  Agreement”), to allow the Vidalink health portal access to the MedLink
  Solution connectivity services, creating the first authorization and claims
  processing Internet service in Brazil. The Vidalink health portal offers doctors
  the most extensive set of information on pathologies and medication practices,
  with complete drug interaction analysis and alert functionality. It offers also
  extensive continuous education programs, with selection of doctor’s areas
  of interest and automatic issuing news on selected subjects.
Pursuant to the terms and provisions of the Vidalink Operational Agreement,
  the MedLink Solution connectivity capabilities will be added to the Vidalink
  health portal, which will give the MedLink Solution access to Vidalink’s
  drug management services and Internet content, thus creating a synergic relationship
  between the two portals and allow doctors access to each portal reaching a much
  broader range of services.
**Mosaic Software, Inc. – Network Processor System.** On
  November 25, 2002, the Company and Mosaic entered into supplier agreement (the
  “Mosaic Supplier Agreement”) to develop the Network Processor software
  package, known as the “Positllion ”, for use in the MedLink Solution.
  Management of the Company believes that Mosaic is the supplier of the most modern
  technology for network control software, based on a low cost hardware platform
  (PC’s) and Windows NT software. Management believes the Postillion software
  is the best cost effective solution for this kind of system, and has just been
  selected by Calypso, the new ATM being deployed in United States, as the chosen
  platform.
**Hypercom Corporation.**On December 1 2003, the Company and Hypercom
  Inc., a publicly traded multinational company ("Hypercom"), entered
  into a servicing agreement (the "Hypercom Service Agreement"). Pursuant
  to the terms and provisions of the Hypercom Service Agreement, Hypercom would
  provide leasing arrangements for POS (Point of Sale) terminals in Brazil. The
  Company subsequently entered into capital leases for 255 POS units.
On April 30th 2002, the Company and Netset, a wholly owned subsidiary of Hypercom
  based in Brazil, entered into a service agreement whereby Netset will (i) provide
  to the Company installation, servicing, training, customer service and technical
  support (Call Center) for its terminal network in Brazil; and (ii) allow the
  Company to use the entire Hypercom structure to serve its clients.
**SchlumbergerSema.** On February 21, 2003, the Company and SchlumbergerSema
  (“Schlumberger”) entered into an agreement (the “Schlumberger
  Agreement”), pursuant to which the Company and Schlumberger would co-operate
  on a number of business opportunities in the Asia-Pacific and Australasian region.
The Company’s strategic alliance with Schlumberger covers the following
  components: (i) capture devices, which consist of a combination of capture application
  hardware and software capable of identifying and handling pre-defined services
  entries, to be rerouted by means of electronic transactions to an authorizer
  system; (ii) rerouting, which is the development of a hardware and software
  structure for performing services of collecting electronic transactions at one
  service point (a service provider), where there is a capture device, with the
  rerouting of the transaction to a service authorization system, and the following
  return of the authorization’s result to the capture device; and (iii)
  authorization system, which is comprised of a hardware structure and application
  software, for creating parameters for the business regulations, tables and insured
  registries, providers and histories, and is responsible for handling the transactions
  received from the collection network, in reference to services, their analyses,
  release or negative, and for sending the corresponding response to the registered
  provider, in the form of a message.
**Material Agreements**
During the quarter ended March 31, 2004, the Company processed approximately
  486,000 “real-time” transactions for its 3 following customers,
  compared to approximately 1,075,000 during all of fiscal 2003.**Golden Cross** - On August 9, 2002, the Company’s wholly-owned
  subsidiary, TDS, and Golden Cross, one of Brazil’s largest health insurance
  companies (“Golden Cross”) entered into an agreement (the “Golden
  Cross Agreement”). Pursuant to the terms and conditions of the Golden
  Cross Agreement, the Company has committed to supply to Golden Cross a total
  of 1,500 installations consisting of more than 500 MedLink Solution POS terminals
  with the balance being MedLink PC and MedLink Solution servers. Additional installations
  (principally IVR) are planned following the first phase roll out, which management
  anticipates beginning in the second quarter of 2004. The Golden Cross Agreement
  also provides for MedLink Solution WEB and MedLink Solution phone solutions,
  which will be used as appropriate by the healthcare provider. As of the date
  of this Quarterly Report, the Company has approximately 1,750 Medlink Solutions
  in Golden Cross Provider’s locations.
**Camed** - On October 17, 2002, the Company’s wholly-owned
  subsidiary, TDS, and Camed, a self-insured company based in northern Brazil
  (“Camed”), entered into an agreement (the “Camed Agreement”)
  pursuant to which the Company installed MedLink Solution POS terminals for pilot
  testing, which was completed during first quarter 2003. As of the date of this
  Quarterly Report, more then 5,000 installations are scheduled to complete the
  roll out consisting of 250 MedLink Solution POS terminals and 4,800 IVR Phone.
  The Camed Agreement also provides for MedLink Solution WEB and MedLink Solution
  phone solutions, which will be used as appropriate by the healthcare providers.
  As of the date of this Quarterly Report the Company has approximately 200 Medlink
  Solutions in Camed providers’ locations.
**Bradesco Health** - On October 17, 2002 TDS and Bradesco Insurance (“Bradesco”),
  Brazil’s largest health insurance company, entered into an agreement for
  the provision of a four month pilot program contract for the testing of its
  Medlink Solution. Subsequently, in February 2003, the pilot program was extended
  for a further six months at the request of Bradesco. On October 1, 2003 Bradesco
  and the Company entered into a contract pursuant to which the Company would
  undertake and install its Medlink Solution into the Bradesco healthcare provider’s
  network. In order to undertake this program, Bradesco agreed to set up a stand
  alone processing facility to hold its database, which was subsequently contracted
  to a third party. Phase one of the program went live during March 2004. Management
  of the Company anticipates that current plans will require the Company to install
  up to 5,000 solutions into the Bradesco provider’s network during 2004
  in order to achieve Bradesco’s initial target of 1,000,000 transactions
  per month. **Results of Operations**Back to Table of Contents
The accompanying unaudited consolidated financial statements of the Company
  present the accounts of the Company at March 31, 2004, and of Transax for the three
  months ended March 31, 2003.
**For the Three-Month Period Ended March 31, 2004 Compared to the Three-Month
  Period Ended March 31, 2003.**
The Company incurred net losses of approximately $432,200 for the three-month
  period ended March 31, 2004 ($0.03 per share), compared to a net loss of approximately
  $589,600 ($0.04 per share) for the three-month period ended March 31, 2003.
  Comparative results for the three-month period ended March 31, 2003 include
  only the results of Transax and TDS. The results for the current period include
  the operations of the Company. Analysis of the operating losses for the three-month
  period ended March 31, 2004 compared to the three-month period ended March 31,
  2003 is as follows:
During the first quarter of 2004, the Company generated approximately $137,600 in revenues,
  compared to approximately $45,200 in the first quarter of 2003. The significant increase
  in revenues is due to the rollout of new software contracts in Brazil.
During the quarter ended March 31, 2004, payroll and related benefits decreased
  to approximately $82,000 (2003: $127,600) mostly due the capitalization of R&D
  expenditures. The cost of product support services has slightly increased from approximately
  $80,300 to $84,900 for the three-month period ended March 31, 2004 due to the
  rollout of the Company’s newest contract.
During the three-month period ended March 31, 2004, the Company incurred approximately
  $97,600 in professional fees, compared to approximately $45,400 during the three months period
  ended March 31, 2003. This increase in professional fees is primarily due to
  an increase in expenses relating to the merger of Transax with the Company.
  During the three-month period ended March 31, 2004, professional fees consisted
  mainly of approximately: (i) $10,200 in audit and accounting fees (2003: $6,900 ); (ii) $5,000
  in legal fees (2003 : $ 23,700); (iii) $76,200 in financing fees (2003 : $0
  ); (iv) $6,200 in regulatory and filing fees (2003 : $0) and (v) $0 in monitor
  fees (2003 : $14,800).
During the quarter ended March 31, 2004, the Company incurred approximately
  $78,900 (2003: $71,800) in related party management fees. During the three-month
  period ended March 31, 2004, the Company incurred general and administrative
  expenses of approximately $101,800 compared to general and administrative expenses
  of approximately $85,000 during the three-month period ended March 31, 2003.
  The higher costs are primarily due to an increase in support services required
  to maintain operations.
During the three-month period ended March 31, 2004, the Company incurred approximately $16,800
  (2003 : $0) in investor relations costs. These costs consist mainly of the production
  of promotional materials directed to shareholders.
During the three-month period ended March 31, 2004, the Company incurred approximately $17,300
  in foreign exchange losses, compared to a gain of $58,200 during the three-month
  period ended March 31, 2003. The gain in fiscal 2003 was due to favorable foreign exchange
  adjustments related to outstanding debts payable in $US currency.
During the quarter ended March 31, 2004, the Company incurred approximately
  $25,100 in interest expenses related to cash advances and capital leases in
  Brazil, compared to approximately $6,300 for the quarter ended March 31, 2003.
  The increase in expenses is primarily due to the increase in cash advances payable.
During the three-month period ended March 31, 2004, interest expenses due to
  a related party were approximately $20,200, compared to approximately $2,000
  in 2003. The increase in interest results from the company receiving cash advances,
  and entering into loan agreements with related parties.
Mr. Walters, the President, Chief Executive Officer and a director of the Company, derives remuneration from the Company as compensation for management and consulting services rendered. During the three-month period ended March 31, 2004, $33,000 was incurred by the Company to Mr. Walters for management and consulting services rendered. Furthermore, Mr. Walters has advanced funds to the Company and incurred expenses on behalf of the Company. At March 31, 2004, Mr. Walters was owed approximately $186,100 for consulting / management fees and incurred expenses. See "Plan of Operation - Material Agreements"

Ms Pilon, the Chief Financial Officer of the Company, derives remuneration from the Company as compensation for management and consulting services rendered. During the three-month period ended March 31, 2004, $21,900 was incurred by the Company to Ms. Pilon for management and consulting services rendered. Furthermore, Ms. Pilon has incurred expenses on behalf of the Company. At March 31, 2004, Ms. Pilon was owed approximately $48,500 for management / consulting fees and incurred expenses. See "Plan of Operation - Material Agreements".

**Liquidity and Capital Resources**Back to Table of Contents
For the Three-Month Period Ended March 31, 2004
Since inception, the Company has incurred cumulative net losses of approximately
  $7,119,900 and has a stockholders’ deficit of approximately $1,886,100
  as at March 31, 2004. The Company expects to continue to incur substantial losses
  to develop its products and distribution networks, and does not expect to attain
  profitability in the near future. Since its inception, the Company has funded
  operations through short-term borrowings and equity investments in order to
  meet its strategic objectives. The Company's future operations are dependent
  upon external funding and its ability to increase revenues and reduce expenses.
  Management believes that sufficient funding will be available from additional
  related party borrowings and private placements following its merger to meet
  its business objectives including anticipated cash needs for working capital,
  for a reasonable period of time. However, there can be no assurance that the
  Company will be able to obtain sufficient funds to continue the development
  of its software products and distribution networks.
As at March 31, 2004, the Company’s current liabilities were approximately
  $2,228,100 compared to $1,857,300 at December 31, 2003. The increase in current
  liabilities is due primarily to additional loans and cash advances received
  from a related party to fund operations.
For the three-month period ended March 31, 2004, net cash flows used in operating
  activities were approximately $140,200 compared to $198,700 for the three-month
  period ended March 31, 2003.
Net cash flows from financing activities during the three-month period ended
  March 31, 2004 were approximately $200,000 resulting primarily from a loan and
  cash advances from a related party, compared to approximately $247,100 during
  the three-month period ended March 31, 2003. The borrowings were used to fund
  operating activities.
Net cash flows used in investing activities amounted to approximately $83,300
  during the three-month period ended March 31, 2004, compared to $57,100 for
  the three-month period ended March 31, 2003. During the three-month period ended
  March 31, 2004, the Company capitalized software research and development costs,
  while in 2003, some of these costs were expenses as part of the costs of product
  support services.
In summary, based upon the cash flow activities as previously discussed, during
  the three-month period ended March 31, 2004, the Company’s overall cash
  position decreased by approximately $6,000.
**Plan of Operation**Back to Table of Contents
As of the date of this Quarterly Report, there is substantial doubt regarding
  the Company's ability to continue as a going concern as the Company has not
  generated sufficient cash flow to fund its business operations and material
  commitments. The Company's future success and viability, therefore, are dependent
  upon the Company’s ability to develop, provide and market its anticipated
  information network solutions to healthcare providers, health insurance companies
  and other end-users, and the continuing ability to generate capital financing.
  Management is optimistic that the Company will be successful in its business
  operations and capital raising efforts; however, there can be no assurance that
  the Company will be successful in generating revenue or raising additional capital.
  The failure to generate sufficient revenues or raise additional capital may
  have a material and adverse effect upon the Company and its shareholders.
Management of the Company anticipates an increase in operating expenses over
  the next three years to pay costs associated with such business operations.
  The Company must raise additional funds. The Company may finance these expenses
  with further issuances of Common Stock of the Company. The Company believes
  that any anticipated private placements of equity capital and debt financing,
  if successful, may be adequate to fund the Company’s operations over the
  next twelve months. Thereafter, the Company expects it will need to raise additional
  capital to meet long-term operating requirements. If the Company raises additional
  funds through the issuance of equity or convertible debt securities other than
  to current shareholders, the percentage ownership of its current shareholders
  would be reduced, and such securities might have rights, preferences or privileges
  senior to its existing Common Stock. In addition, additional financing may not
  be available upon acceptable terms, or at all. If adequate funds are not available,
  or are not available on acceptable terms, the Company may not be able to conduct
  its business operations successfully, which could significantly and materially
  restrict the Company’s overall business operations.
Based upon a twelve-month work plan proposed by management, it is anticipated
  that such a work plan would require approximately $2,000,000 to $5,000,000 of
  financing designed to fund various commitments and business operations. As of
  the date of this Quarterly Report, management believes that the Company can
  satisfy its cash requirements for the next twelve months based on its ability
  to successfully raise capital and to obtain advances from certain investors
  and related parties, as necessary. The Company’s future success and viability
  are primarily dependent upon the Company’s current management to generate
  revenues from business operations and raise additional capital through further
  private offerings of its stock or loans from private investors. There can be
  no assurance, however, that the Company will be able to raise additional capital.
  The Company’s failure to successfully raise additional capital will have
  a material and adverse affect upon the Company and its shareholders.

**Material Agreements**Back to Table of Contents
In connection with the management of the Company and/or its subsidiary incurred
  liability or borrowed funds pursuant to various contractual arrangements representing
  the following material commitments.
**Walters Consulting Agreement**
A significant and estimated service agreement for the Company for fiscal year
  2004 is the aggregate amount of $132,000 to be paid to Mr. Walters pursuant
  to the Walters Consulting Agreement. Pursuant to the terms and provisions of
  the Walters Consulting Agreement: (i) Mr. Walters agreed to provide technical,
  research and technology development services to the Company; and (ii) Mr. Walters
  shall be paid a monthly fee of $11,000 US Dollars for a potential annual
  salary of $132,000, and reimbursement of expenses.
**Pilon Consulting Agreement**
A significant and estimated service agreement for the Company for fiscal year
  2004 is the aggregate amount of $87,600 to be paid to Ms. Pilon pursuant to
  the Pilon Consulting Agreement. Pursuant to the terms and provisions of the
  Pilon Consulting Agreement: (i) Ms. Pilon agreed to provide financial, administrative
  and managerial services to the Company; and (ii) Ms. Pilon shall be paid a monthly
  fee of $7,300 US Dollars for a potential annual salary of $87,600, and reimbursement
  of expenses.
**De Castro Consulting Agreement**
A significant and estimated material agreement for the Company for fiscal year
  2004 is the aggregate amount of $96,000 to be paid to Mr. De Castro pursuant
  to the De Castro Consulting Agreement. Pursuant to the terms and provisions
  of the De Castro Consulting Agreement: (i) Mr. De Castro agreed to provide technical,
  research and developmental services to the Company’s subsidiary; and (ii)
  Mr. De Castro shall be paid a monthly fee of $8,000 US Dollars for an aggregate
  annual salary of $96,000, and reimbursement of expenses.

**Material Operating Liabilities**
**Convertible Loans**
A significant and estimated material liability for the Company for fiscal year
  2004 is the aggregate amount of $399,700 in principal and interest due and owing
  to a related party. On December 31, 2002, Transax Limited borrowed $66,195 from
  such related party. On March 31, 2003, Transax Limited borrowed $255,000 from
  this related party, and a further $100,000 on April 30, 2003. Each principal
  amount loan is evidenced by a convertible promissory note and is repayable on
  or before a six-month term. The interest rate is 12% per annum compounded monthly.
  The related party as the lender has the option during the term of the loan,
  and any extension thereto, to convert the principal and interest into units
  in the capital of the Company at a conversion price of $0.25 per unit (the “Unit”).
  Each Unit is comprised of one share of restricted Common Stock of the Company
  and one warrant, and each warrant entitles the holder thereof to purchase one
  share of restricted Common Stock of the Company at $0.50 per share for a period
  of twelve months.
On December 31, 2003, the loan and accrued interest of $93,000 were converted
  for 373,570 common shares and warrants. At March 31, 2004, the loans for $255,000
  and $100,000 were in default, and the holder of the notes has not exercised
  the conversion feature. At March 31, 2004, $44,700 in interest was accrued on
  these two loans.
**Loan**
A significant and estimated material liability for the Company for fiscal year
  2004 is the aggregate amount of $141,000 in principal and interest due and owing
  to a related party. On March 5, 2004, the Company borrowed €115,000 (USD
  $ 139,500) from such related party. The loan is evidenced by a promissory note
  and is repayable on or before a twelve-month term. The interest rate is 0.8%
  per month, compounded. At March 31, 2004, approximately $900 in interest was
  accrued on this loan.
**Cash Advances from a Related Party**
A significant and estimated material liability for the Company for fiscal year
  2004 is the aggregate amount of $268,300 in cash advances due and owing to a
  related party, and is included in due to related parties in the balance sheet. During the three-month period ended March 31, 2004, such related
  party advanced approximately $72,500 for working capital purposes. The advances
  due and owing at March 31, 2004 were non-interest bearing until August 31, 2003,
  and are accruing 1% interest per month since September 1, 2003.
**Cash Advances Payable**
During the year ended December 31, 2003, the Company received cash advances
  from a non-related company of $526,500 for working capital purposes. During
  fiscal year ended December 31, 2003, the lender converted $225,000 of advances
  into 450,000 units. Each unit is comprised of one share of Common Stock and
  one half warrant. Each one whole warrant entitles the holder to purchase an
  additional share of the Company’s Common Stock at $1.00, for a period
  of 24 months.
During the year ended December 31, 2003, the Company also issued 700,000
  shares of restricted Common Stock for the settlement of $196,875 in cash advances.
  These remaining advances are accruing 1% interest per month, starting September
  1, 2003. At March 31, 2004, approximately $118,700 in advances and accrued interest
  were due to this company.
**Accrued Payroll and Related Expenses**
A significant and estimated material liability for the Company for fiscal year
  2004 is the aggregate amount of $498,500, including a provision of interest
  and fines of approximately $74,400, due and owing for Brazilian payroll taxes
  and Social Security taxes.

Effective April 1, 2004, the Company has entered into a payment program with the Brazilian authorities whereas the Social Security ("INSS") taxes due and applicable penalties and interests will be repaid over a period of 60 months.  At March 31, 2004, the Company's INSS tax liabilities were approximately $139,600 plus $13,800 in interest, penalties and fines.  The payment program requires the Company to pay a monthly fixed amount of approximately $2,560.  Discussions are currently ongoing for the Company to enter into a similar payment plan for the remainder of the payroll tax liabilities.  The Company made the first payment as per the plan in April 2004.



**Off Balance Sheet Arrangements**Back to Table of Contents
As of the date of this Quarterly Report, the Company does not have any off-balance
  sheet arrangements that have or are reasonably like to have a current or future
  effect on the Company’s financial condition, changes in financial condition,
  revenues or expenses, results of operations, liquidity, capital expenditures
  or capital resources that are material to investors. The term “off-balance
  sheet arrangement” generally means any transaction, agreement or other
  contractual arrangement to which an entity unconsolidated with the Company is
  a party, under which the Company has (i) any obligation arising under a guarantee
  contract, derivative instrument or variable interest; or (ii) a retained or
  contingent interest in assets transferred to such entity or similar arrangement
  that serves as credit, liquidity or market risk support for such assets.


**ITEM 3. Controls and Procedures**Back to Table of Contents
(a) The Company, under the supervision of its President, has conducted an evaluation
  of the effectiveness of the design and operation of the Company’s disclosure
  controls and procedures within 90 days of the filing date of this Quarterly
  Report. Based upon the results of this evaluation, the Company believes that
  it maintains proper procedures for gathering, analyzing and disclosing all information
  in a timely fashion that is required to be disclosed in its reports under the
  Securities Exchange Act of 1934, as amended. There have been no significant
  changes in the Company’s controls subsequent to the evaluation date.
(b) There were no significant changes in the Company’s internal control
  or in other factors that could significantly affect the Company’s internal
  controls subsequent to the evaluation date.
**PART II. OTHER INFORMATION**Back to Table of Contents
**ITEM 1. Legal proceedings**Back to Table of Contents
No report required.
**ITEM 2. Changes in Securities and Use of Proceeds**Back to Table of Contents
**Stock Options Exercised**

As at March 31, 2004, an aggregate of 4,500,000 Stock Options have been granted under the Stock Option Plan, an aggregate of 2,056,730 Stock Options have been exercised for net proceeds of $762,740, and an aggregate 2,443,270 Stock Options remain outstanding.
During the three-month period ended March 31, 2004 and as of the date of this Quarterly Report, an aggregate of 300,000 Stock Options have been exercised at $0.25 per share for aggregate proceeds of $75,000, which amount was utilized to reduce the debt due and owing by the Company to non-related party.
**ITEM 3. Defaults upon Senior Securities**Back to Table of Contents
No report required.
**ITEM 4. Submission of Matters to Vote of Securities Holders**Back to Table of Contents
No report required.
**ITEM 5. Other Information**Back to Table of Contents
No report required.


**ITEM 6. Exhibits and Other Information on Form 8-K**Back to Table of Contents
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|11.1 | Statement of computation of per share earnings [Unaudited]                                                                                                                             
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1 | Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)                                                                       
|31.2 | Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)                                                                       
|32.1 | Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

|**Reports on Form 8-K**
None.**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.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated : May 18, 2004      | Transax International Limited
		By: */s/ Stephen Walters*
		-----------------------------------
		Stephen Walters, President and 
		Chief Executive Officer
|------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|Dated : May 18, 2004      | By: */s/ Nathalie Pilon*
		-----------------------------------
		Nathalie Pilon
		Chief Financial Officer                                                  
|Back to Table of Contents

---

|**EXHIBIT 11.1**

	**TRANSAX INTERNATIONAL LIMITED and SUBSIDIARIES
	Statement of Computation of Per Share Earnings [Unaudited]**Back to Table of Contents
|----------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                                                                                                                                                                                                | **For the three months ended March 31,**
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------
|**2004 (A)**                                                                                                                                                                                                                                                                    | **2003 (A)**                            
|BASIC:
			Average shares outstanding                                                                                                                                                                                                                                            | 15,028,037                              
|Net loss applicable to Common Shares                                                                                                                                                                                                                                            | $(432,170)                              
|Per share amount                                                                                                                                                                                                                                                                | $(0.03)                                 
|FULLY DILUTED:
			Average shares outstanding disregarding dilutive outstanding stock options and warrant conversion of debenture for each year                                                                                                                                  | 15,028,037                              
|Convertible loans                                                                                                                                                                                                                                                               | 1,598,808                               
|Dilutive stock options and warrants, based on the treasury stock method using the average market price                                                                                                                                                                          | 28,374                                  
|Shares outstanding                                                                                                                                                                                                                                                              | 16,655,219                              
|Net loss                                                                                                                                                                                                                                                                        | $(432,170)                              
|Interest on convertible loan                                                                                                                                                                                                                                                    | $44,702                                 
|Net loss for fully diluted calculation                                                                                                                                                                                                                                          | $(387,468)                              
|Per share amount                                                                                                                                                                                                                                                                | $(0.02)                                 
|Note A:   The fully-diluted calculation is submitted in accordance with Regulation S-K, Item 601 (b)(11), although it is contrary to paragraph 13 of Statement of Financial Accounting Standards No. 128 because it produces an anti-dilutive result. Back to Table of Contents

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|**EXHIBIT 31.1**
	Back to Table of ContentsCERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECURITIES EXCHANGE ACT OF 1934 
RULE 13a-14(a) OR 15d-14(a)


I, Stephen Walters, certify that:
I have reviewed this quarterly report on Form 10-QSB of Transax International Limited ;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated: May 18, 2004 | By:  /s/ Stephen Walters
			---------------------------------
			Stephen Walters , President and CEO
|------------------- | ----------------------------------------------------------------------------------------------------

|Back to Table of Contents
|-------------------------

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|**EXHIBIT 31.2**
	Back to Table of ContentsCERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECURITIES EXCHANGE ACT OF 1934 
RULE 13a-14(a) OR 15d-14(a)


I, Nathalie Pilon, certify that:
I have reviewed this quarterly report on Form 10-QSB of Transax International Ltd.;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated: May 18, 2004 | By:  /s/ Nathalie Pilon
			---------------------------------
			Nathalie Pilon , Chief Financial Officer
|------------------- | --------------------------------------------------------------------------------------------------------

|Back to Table of Contents
|-------------------------

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|**EXHIBIT 32.1**
	Back to Table of ContentsCERTIFICATIONS PURSUANT TO SECURITIES EXCHANGE ACT OF 1934 
RULE 13a-14(a) OR 15d-14(a) AND
18 U.S.C. SECTION 1350,
AS ADOPTED PURUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the quarterly report of Transax International Ltd. (the "Company") on Form 10-QSB for the period ended March 31, 2004, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Stephen Walters, President and Chief Executive Officer of the Company, and Nathalie Pilon, Chief Financial Officer of the Company, each certifies for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United  States Code, that:
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Dated: May 18, 2004 | By:  /s/ Stephen Walters
			---------------------------------
			Stephen Walters , President and CEO    
|------------------- | --------------------------------------------------------------------------------------------------------
|Dated: May 18, 2004 | By:  /s/ Nathalie Pilon
			---------------------------------
			Nathalie Pilon , Chief Financial Officer

|Back to Table of Contents
|-------------------------