UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-KSB

                                   (Mark One)

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

                   For the fiscal year ended December 31, 2003

                                       OR

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

                    For the transition period ____________to

                        Commission file number 333-83152

                                   INYX, INC.

                 (Name of small business issuer in its charter)

                     Nevada                                      75-2870720
        (State or other jurisdiction of                       (I.R.S. Employer
         incorporation or organization)                      Identification No.)

825 Third Avenue, 40th Floor, New York, New York                    10022
    (Address of principal executive offices)                     (Zip Code)

         Issuer's telephone number, including area code: (212) 838-1111

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the issuer was required to file such reports),  and
(2) has been subject to such filing requirements for the past 90 days.

YES  X  NO

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation  S-B contained  herein,  and none will be  contained,  to the best of
registrant's   knowledge,   in  definitive   proxy  or  information   statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment to
this Form 10-KSB. [X]

The issuer's revenues for its most recent fiscal year were:  $13,099,000

The aggregate market value of the voting common stock held by  non-affiliates of
the  issuer,  based  on the  average  bid and  asked  price of such  stock,  was
$33,177,500 at March 23, 2004.

At March 1, 2004, the registrant had outstanding  28,850,000 shares of par value
$.001 common stock.

                       DOCUMENTS INCORPORATED BY REFERENCE

None.

Transitional Small Business Disclosure Format (check one):  Yes    No X
                                                               ---   ---


<PAGE>

                                TABLE OF CONTENTS

PART I.........................................................................1
   ITEM 1. DESCRIPTION OF BUSINESS.............................................1
   ITEM 2. PROPERTIES.........................................................16
   ITEM 3. LEGAL PROCEEDINGS..................................................16
   ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS................16
PART II.......................................................................17
   ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS...........17
   ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION..........18
   ITEM 7. FINANCIAL STATEMENTS...............................................43
   ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
           AND FINANCIAL DISCLOSURE...........................................43
   ITEM 8A. CONTROLS AND PROCEDURES...........................................44
PART III......................................................................44
   ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;......44
   ITEM 10. EXECUTIVE COMPENSATION............................................47
   ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT....49
   ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS....................50
   ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K..................................52
   ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES............................54






















                                       i
<PAGE>

                                   INYX, INC.

PART I

ITEM 1.  DESCRIPTION OF BUSINESS
         -----------------------

General

         Inyx, Inc. (formerly known as Doblique, Inc.) ("Doblique"), through its
wholly-owned subsidiaries,  Inyx Pharma Limited ("Inyx Pharma") and Inyx Canada,
Inc. ("Inyx  Canada"),  is a specialty  pharmaceutical  company that focuses its
expertise on contract manufacturing of prescription and over-the-counter ("OTC")
pharmaceutical  products and provides specialty  pharmaceutical  development and
manufacturing  consulting  services to the international  healthcare  market. By
"specialty  pharmaceutical,"  we mean that we specialize in the  development and
manufacturing  of selected  pharmaceutical  products  and  technologies  for the
treatment  of   respiratory,   allergy,   dermatological   and  topical  disease
conditions.  We intend to expand our product research and development activities
with our own lines of prescription and OTC pharmaceuticals,  but we have not yet
commercialized  or marketed our own products or drug delivery  applications.  We
have limited product  distribution  capabilities,  and, although we perform some
sales and marketing  functions,  until we build or contract our own sales force,
we will initially  depend on our customers'  distribution  channels or strategic
partners  to market and sell the  pharmaceutical  products  we are  planning  to
develop.  A material  element of our growth  strategy is to expand our  existing
business through the strategic acquisitions of pharmaceutical  products and drug
delivery  devices that are  complementary  with our expertise,  including  those
through  the  acquisition  of  other  pharmaceutical   companies.  We  therefore
continually evaluate  opportunities to make strategic  acquisitions of specialty
pharmaceutical  products or  businesses.  We completed our first  acquisition in
April 2003, which is discussed below. Our corporate address is 825 Third Avenue,
40th  Floor,  New  York,  New York  10022,  and our  telephone  number  is (212)
838-1111, fax (212) 838-0060. Inyx, Inc. is a Nevada corporation. Inyx Pharma is
a  corporation  formed  under the laws of  England  and Wales with  offices  and
product development and manufacturing facilities in Runcorn, Cheshire,  England.
Inyx Canada, a Canadian  corporation that provides  administrative  and business
development support, is located in Toronto, Ontario.

         Doblique was  incorporated  under the laws of Nevada in March 2000.  In
July  2002,  Doblique  became a  publicly-traded  company  when we  completed  a
registration statement for the sale, by our principal stockholder,  of 2,450,000
shares  of  common   stock.   Our  common   stock  is  traded  on  the  Nasdaq's
Over-the-Counter  Bulletin  Board.  We  voluntarily  file annual,  quarterly and
periodic reports with the Securities and Exchange Commission pursuant to Section
15(d)  of the  Securities  Exchange  Act of  1934.  We  maintain  a  website  at
(www.inyxinc.com) and publish all such SEC reports on our website.

         In  accordance  with the terms of the Stock  Exchange  Agreement  dated
March 24, 2003, our controlling stockholder at that time accepted an unsolicited
offer  to  sell a  controlling  block  of  2,250,000  shares  of  common  stock,
representing  approximately 45% of our Company's issued and outstanding  shares,
to Medira  Investments LLC. Medira  subsequently  transferred such shares to its
principal,  Viktoria  Benkovitch,  the wife of Dr. Jack  Kachkar,  our Company's
Chairman  and CEO.  Also,  as part of the sale of shares to  Medira,  Doblique's
prior  controlling  stockholder  released and discharged all  liabilities of the
Company to her.  Prior to such  acquisition,  Doblique  was in the  business  of
owning  and  racing  thoroughbred  horses.  All  assets  of that  business  were
previously sold on March 6, 2003.

         On March 26, 2003, we issued a press release  announcing  the change of
control  transaction and that we would now pursue further  strategic  investment
opportunities  in a number of sectors within the  pharmaceutical,  biotechnology
and medical devices  industries.  These opportunities would include research and
development,    manufacturing,    distribution,    and   intellectual   property
acquisitions.

         On April 22, 2003,  we  announced  that we had agreed to acquire all of
the issued and outstanding  securities of Inyx Pharma.  Previously,  on March 7,
2003,  Inyx Pharma had  acquired  the  majority of the  pharmaceutical  business
assets for $7.1 million plus  acquisition  costs of $1.2  million.  These assets
consisted of one aerosol  manufacturing  site and a  pharmaceutical  development
operation.  Pursuant  to  this  transaction  Inyx  Pharma  received  all  of the
property,  plant, machinery and equipment,  inventory,  customer base, employees
and intellectual  property to continue to manage and run those parts of the Miza
UK operation as a going concern, excluding the Bioforma Division.

<PAGE>

         On April 17, 2003, we entered into an agreement with five parties under
which we issued 2,450,000 of shares of restricted common stock as a fee to these
parties for their role in  facilitating  the  transaction  with Inyx Pharma.  On
April 21, 2003, we also entered into a two year Business  Advisory and Financial
Consulting  Services  Agreement  with a consultant to provide advice and counsel
regarding our strategic  business  plans. As  consideration  for this consulting
arrangement,  we  issued  1,500,000  shares  of  restricted  securities  to  the
consultant.

         On April 28, 2003, we concluded  our  acquisition  of Inyx Pharma.  The
transaction  consisted of an exchange of 100% of the outstanding common stock of
Inyx Pharma,  for  16,000,000  shares of restricted  common stock of the Company
(the "Exchange"), representing approximately 64% of the approximately 25,000,000
shares  outstanding  after the  Exchange.  As a  result,  Inyx  Pharma  became a
wholly-owned  subsidiary  of the Company.  Inyx Pharma  focuses its expertise on
development-led  manufacturing  in the sterile  pharmaceutical,  finished-dosage
form,  outsourcing sector. It specializes in niche products and technologies for
the treatment of respiratory,  allergy, dermatological,  and topical conditions.
Inyx  Pharma's  client base is  comprised of  blue-chip  ethical  pharmaceutical
companies, branded generic firms and biotechnology groups.

         To reflect our new operating business, we changed our corporate name on
May 6, 2003 from Doblique, Inc. to Inyx, Inc.

         On May 15,  2003,  the Company  formed Inyx  Canada,  Inc.  Inyx Canada
performs  certain  administrative  and business  development  functions  for the
Company,  including the business  development  functions necessary to obtain the
selection by the United  Nations  Development  Programme for contracts to assist
candidate developing countries to meet the requirements of the Montreal Protocol
to phase out the  consumption  of ozone  depleting  chlorofluorocarbon  gases in
metered dose inhalers.

         The Inyx Pharma  acquisition is our first  pharmaceutical  acquisition.
Our  principal  business  following the Exchange was the business of Inyx Pharma
and other  possible  acquisitions  within  the  pharmaceutical  industry.  These
include research and development;  manufacturing,  distribution and intellectual
property  acquisitions;  acquisition of pharmaceutical  products in development;
pharmaceutical  products  marketed by other  companies that may be available for
purchase; and company acquisitions and mergers.

         The  transaction  that the  Company has  completed  with Inyx Pharma is
classified as a reverse acquisition.  Reverse acquisitions occur when one entity
(the nominal  acquirer) issues sufficient shares to the former owners of another
entity (the  nominal  acquiree) so as to cause the  shareholders  of the nominal
acquiree  to  become  the  majority   shareholders  of  the  resultant  combined
enterprise.  The  total  purchase  cost is  allocated  to the net  assets of the
Company.

         All monetary amounts described herein are stated in either U.S. Dollars
($) or United Kingdom pounds sterling  ((pound)).  The exchange rate between the
two  currencies  on December 31, 2003 was (pound)1 = $1.78,  and the average for
the period from April 28, 2003 through December 31, 2003 was $1.67.

         See "Management -- Certain  Relationships and Related Transactions" for
information  about the interests of certain  directors,  executive  officers and
promoters  of the  company  in the  formation  and  reorganization  transactions
described above.

Business Strategy

         Our Company is focused on the development and contract manufacturing of
prescription and over-the-counter ("OTC") pharmaceutical products to our clients
in the respiratory, allergy, topical and dermatological markets. We also provide
pharmaceutical development and manufacturing consulting and research services in
these market  areas.  We intend to expand our product  research and  development
activities into our own lines of prescription and OTC  pharmaceutical  products,
but we have not yet  commercialized  or marketed any of our own products or drug
delivery applications.  We have limited product distribution capabilities,  and,
although  we  perform  some  sales and  marketing  functions,  until we build or
contract  our own  sales  force,  we will  initially  depend  on our  customers'
distribution   channels   or   strategic   partners   to  market  and  sell  the
pharmaceutical  products we are planning to develop.  We plan to complement  our
organic growth  opportunities  through strategic  acquisitions of pharmaceutical
products and drug delivery  devices that are  complementary  with our expertise,
including those through the acquisition of other pharmaceutical companies.


                                       2
<PAGE>

Products

         We  currently  develop  and  manufacture  five types of  pharmaceutical
products.  In each case,  we formulate  the  pharmaceuticals  to our  customers'
specifications  and fill the delivery  devices to produce a finished product for
delivery.

Hydrocarbon Aerosols

         We develop and  manufacture  hydrocarbon  aerosols as a delivery system
for  dermatological   and  topical  drug  applications.   The  drug  (usually  a
corticosteroid or similar  anti-inflammatory  agent specifically formulated with
excipients)  is kept under  pressure  in a can with liquid  hydrocarbons.  These
hydrocarbons  are normally a mixture of propane,  iso-butane and butane.  As the
product is dispensed and released from the can, the  hydrocarbons  spontaneously
vaporize,  turning the resulting mixture into a mousse or foam (depending on the
exact  formulation).  This  results in the drug being in a format  suitable  for
rapid  absorption  into  the  skin.  In  addition,  the  hydrocarbons  used  are
deodorized,  so the drug can be  administered  in an  odorless  way,  leaving no
residue on the skin. We utilize two state of the art  hydrocarbon  filling lines
each with fire suppressant equipment, protected gassing of hydrocarbons,  remote
safety monitoring equipment, and dedicated manufacturing areas.

         We  believe  that  our  contract  share of the  U.K.  prescription  and
over-the-counter aerosol market is substantial. In some instances, we may be the
only contract manufacturer for such products.  Additionally, we believe that the
specialized nature of the topical hydrocarbon aerosols market, which has limited
competition, will allow us to continue to maintain and expand our current market
share in this sector.

         We  intend  to  expand  our  expertise  in  this  area in  order  to be
recognized  as  a  world  leader  in  hydrocarbon  aerosols  for  pharmaceutical
applications.  In addition to our growing  business  base and the recent rise of
new hydrocarbon aerosol business in the pharmaceutical industry, we believe that
there are significant growth  opportunities in aseptic hydrocarbon  applications
for  other  existing  or  potential  customers  as the  use of  this  technology
continues to grow. With  significant  experience in this area and two regulatory
compliant  hydrocarbon  aerosol filling lines, we believe we are well positioned
to expand our contract market share in this sector. Additionally, as development
runs  for  the  introduction  of new  products  vary,  we  believe  that we have
sufficient  manufacturing  flexibility to take on new products while  addressing
our customers' volume requirements.

Metered Dose Inhalers ("MDIs")

         We also develop and manufacture  metered dose inhalers  ("MDIs"),  used
primarily  for  respiratory  conditions,  which  employ both  chlorofluorocarbon
("CFC") and hydrofluroalkane ("HFA") propellant technologies. CFC-based products
include  Salbutamol,  a mild asthma and rescue therapy,  and  Beclomethasone,  a
steroid  used as an  anti-inflammatory  for  respiratory  disease.  HFA products
include MDIs for  respiratory  ailments  and a metered dose oral ("MDO")  spray,
such as a "GTN" spray which is a nitrate  propelled HFA aerosol that is used for
prescription and over the counter products, primarily for cardiac ailments.

         In the past, our CFC-based MDIs were sold throughout Europe, Australia,
Canada and South America.  Given growing global  restrictions on ozone-depleting
CFC products,  we believe that the use of HFA-propelled MDI opportunities within
the pharmaceutical industry will increase. Specifically, we are now developing a
number of HFA MDIs for a number of our clients.  Further, we plan to exploit the
MDO-spray HFA product through sales to our primary  customer in this area, which
is  Genpharm,   a  Canadian-based   subsidiary  of  Merck  Generics.   Utilizing
client-funded product and process development applications,  we plan to continue
changing to HFA MDI  production  in 2004,  while  continuing  to utilize CFC MDI
manufacturing capabilities and CFC allocations for markets which have not banned
CFC use as of yet. This includes capitalizing on our relationships with a number
of our clients which have extensive  distribution  channels for such products in
South America,  Africa and the Middle East. Based upon  Pharma-File,  a European
industry publication,  we believe we have a competitive advantage in this sector
as one of the few pharmaceutical companies with the capabilities to both develop
and manufacture  HFA based  inhalants.  Based on our  capabilities in this area,
early in 2004 we were  selected  by the  United  Nations  Development  Programme
(UNDP) - Montreal Protocol to assist a developing country with the transition of
CFC MDIs to HFA MDIs.


                                       3
<PAGE>

Dry Powdered Inhalers ("DPIs")

         We assist in the  development  and  production  of dry powder  inhalers
("DPIs"),  which are  primarily  used for  respiratory  ailments such as asthma.
Specific  products  in this area  include  Salbutamol,  which we  believe is the
leading product in the area, and Beclomethasone,  which we believe is the second
leading  product  in the  area.  We  are  also  reviewing  the  possible  use of
Budesonide,   an   anti-inflammatory    corticosteroid,    and   Formeterol,   a
bronchodilator, as DPIs. Our major customer in the DPI area has licensed the DPI
device  (the  "Clickhaler")  that  we  currently  manufacture  under  a  license
agreement from a UK-based biotechnology  company. This U.K.-based  biotechnology
company is also in the  process of  licensing  its  product to a number of other
pharmaceutical  companies.  Subject to the results of this licensing program, we
expect to continue  to  manufacture  DPIs for  third-party  licensees.  Based on
increasing  consumer  acceptance  and the growth in diagnoses and  incidences of
asthma,  we believe  that DPIs are expected to grow in use. We also believe that
manufacturing  revenue  opportunities  in this product category will continue to
expand as this mode of drug  delivery is  beginning to enjoy  increased  use not
only for  respiratory  inhalants  but as a mode of delivery for other  products.
Such other  products  include  those which target  systemic  disease,  which may
include insulin for diabetes and pain management drugs.

Metered Dose Pump Sprays ("MDPSs")

         We develop and produce  metered  dose nasal and throat pumps and sprays
("MDPSs")   for  nasal   decongestion,   anti-allergic   and   anti-inflammatory
applications.   Specific  products  within  these  areas  include  coricosteroid
products  such as a  Beclomethasone  Dipropionate  for the  treatment of allergy
conditions. Allergy pump sprays are a seasonal product with the largest consumer
use  coming in the  spring  and late  summer  months.  We plan to  leverage  the
manufacturing  upgrades that the previous  owners of our UK based  manufacturing
site  performed on the pump spray  filling  line.  We believe that such upgrades
will  provide us with an  excellent  production  base to maintain  our  existing
customer volumes,  while developing new business in the growing seasonal allergy
market sector.  Further,  we intend on capitalizing on growing  opportunities in
this area by expanding  product  development  and marketing  activities that may
lead to manufacturing opportunities.  Such opportunities include pump sprays for
complex proteins, pain medications, hormone applications and vaccines.

Saline Aerosols

         We  develop  and  manufacture  products  that  are  nitrogen  propelled
buffered and non-buffered  normal aerosols for eye and wound care. These include
the  water-for-injection/alcohol  aerosols and  non-alcohol  based  disinfectant
aerosols.  Based upon  Pharma  File,  we  believe  that we may now be one of the
largest  manufacturers  of sterile  saline and  alcohol  aerosols  in the United
Kingdom.  We are actively pursuing new technologies such as a "bag-in-can" wound
spray that may provide enhanced spraying parameters for sterile wound aerosols.

Product Rights

         The processes used to develop and  commercialize  our clients' products
utilize spray technologies that are proprietary to the Company and can therefore
be used to support other activities. Such technologies consist of the process of
filling and  packaging  aerosols and the  associated  operating  procedures  and
methods.  However,  specific  formulations  and  specifications  supplied by the
client are deemed  confidential and are therefore not available for us to use in
any other application.

Product Development

         Our business  strategy  includes the  development  and sales of our own
proprietary  products,   including  both  delivery  devices  and  pharmaceutical
products, for respiratory, dermatological and topical drug delivery applications
through our own customers'  distribution channels or with strategic partners. No
agreements currently exist for the use of our customers'  distribution  channels
for these  products.  These  products  are expected to include  non-CFC  generic
respiratory   inhalants,   non-CFC  propelled  oral  sprays  for  cardiovascular
ailments,  wound irrigation and cleansing sprays,  and  anti-inflammatory  nasal
pumps.  We  have  now  commenced  building  the  infrastructure  and  resources,
including  building out our laboratories  and expanding our product  development
staff to implement such a business strategy.


                                       4
<PAGE>

         We believe that we can also enhance our  competitive  position  through
the acquisition of regulatory-approved pharmaceutical products and drug delivery
devices for respiratory,  dermatological and topical drug delivery  applications
or such products in  development,  including  those through the  acquisition  of
other pharmaceutical companies.

         Our  product  development  capabilities  are located at our Inyx Pharma
development and manufacturing facilities in the United Kingdom.

Contract Services

         As we have experience in the development and  manufacturing of CFC-free
or HFA MDIs for asthma and other respiratory diseases, our Company,  through our
wholly owned subsidiaries,  Inyx Canada and Inyx Pharma, commenced a business in
early  2004 of  contracting  consulting  services  through  the  United  Nations
Development  Programme  ("UNDP"),  as funded by the United Nations  Multilateral
Fund  ("MLF")  to  assist  selected   developing   countries   comply  with  the
requirements  of the  Montreal  Protocol on  Substances  that  Deplete the Ozone
Layer.  The  Montreal  Protocol  is an  international  agreement  signed  by 180
countries (both developed and undeveloped)  designed to eliminate the production
and  consumption  of  substances  that  deplete  the  stratospheric  ozone layer
including the reduction of the use of CFC's within the pharmaceutical  industry.
Our  consulting   activities   include  the  procurement  and   installation  of
manufacturing facilities and equipment, and the training of personnel in the use
of  ozone-friendly  HFA propellants in developing  countries as specified by the
UNDP.

         The  terms  of the  initial  contract  with the  UNDP to  provide  such
services in a candidate  country has been approved and will be released publicly
upon receipt of necessary  governmental  documents.  We hope that,  based on our
performance  on  these  initial  services,  we may be  requested  by the UNDP to
provide such services in other countries seeking to achieve  compliance with the
Montreal  Protocol.  The largest  markets for such  services are for  nationally
owned pharmaceutical entities in developing countries in Latin America and Asia,
including China and India.

Manufacturing Process and Capabilities

Facilities

         Our manufacturing  facility is located at Astmoor,  Runcorn,  Cheshire,
England.  Our  production  facility is utilized to manufacture  sterile  aerosol
products,  including  metered  dose and dry powder  respiratory  inhalers,  pump
sprays, and saline and topical aerosols. Our manufacturing operation consists of
over 60,000 square feet of manufacturing,  laboratory and warehouse space and we
currently  have 90  employees  working  at the  facility.  Twenty-five  of these
employees  are  in  quality   operations  with  the  remainder  in  engineering,
manufacturing,  packaging and supply chain management,  and clerical and support
staff.  The  remainder  of our staff in the U.K. (32 persons) are located at the
Manor  Park   office  and   development   facility   in   finance,   commercial,
administrative human resource, and product development functions.  Highlights of
the manufacturing  operation  include:  two cGMP-compliant  regulatory  approved
hydrocarbon aerosol manufacturing and filling lines; an HFA metered dose inhaler
manufacturing  and  filling  line,  which  is  regulatory  compliant  and  fully
validated;  and an innovative DPI production  facility,  which  represents a new
type of drug delivery  technology for respiratory  conditions and other ailments
including pain management.

Manufacturing Capabilities

         With  respect  to  hydrocarbon  aerosol  production,   we  utilize  two
state-of-the-art hydrocarbon filling lines that are capable of bulk manufacture,
filling, valve placements, gassing, water-bath testing, and packaging, including
individual  cartons into a wide variety of packs. Based on three shifts, our two
hydrocarbon  filling lines are capable of producing 27.3 million units annually.
We are presently  running one shift on these lines.  Based on one shift,  annual
capacity on these lines,  combined,  is nine million  units.  As of December 31,
2003,  based on one shift,  our  capacity  utilization  on these  lines has been
averaging 35% on an annual basis.

         With  respect  to  MDIs,   we  employ  two  filling   lines.   One  MDI
manufacturing line produces CFC-based inhalers. The CFC manufacturing line has a
capacity of 30.4 million units annually,  based on three shifts.  The second MDI
manufacturing line produces CFC-free or HFA inhalers. The HFA line is capable of


                                       5
<PAGE>

manufacturing 9.1 million units annually,  based on three shifts. Each such line
consists of valve placements,  filling,  check-weighing and packing  operations.
These  lines  are  also  capable  of bulk  manufacture  feeding  and  come  with
integrated downstream  packaging.  As of December 31, 2003, due to the phase out
of CFC-based inhalers, our capacity utilization on the CFC line has been minimal
(less than 2%). As of December 31, 2003,  our  capacity  utilization  of the HFA
line,  based on one shift,  has been averaging 17% on an annual basis.  Based on
one shift, the capacity of the HFA line is three million units, annually.

         In producing dry powder inhalers,  we utilize a semi-automatic  process
that  includes  bulk  manufacture,  device  assembly and  printing,  filling and
packaging.  Our annual output  capacity for dry powder inhalers is currently 2.1
million units,  based on three shifts. Our DPI filling and blending equipment is
owned by the  innovator (a U.K.-based  biotechnology  company) of the dry powder
inhaler  device.  As of December  31,  2003,  based on one shift,  our  capacity
utilization on the DPI line has been averaging 24% on an annual basis.  Based on
one shift, the capacity of the DPI line is one million units, annually.

         With  respect  to pump  spray  production,  we employ  newly  installed
equipment  capable  of bulk  manufacturing,  filling/crimping  or  filling/screw
capping and final packaging. We are capable of producing these products in glass
or plastic  bottles.  Current  maximum  capacity for the pump spray line is 12.1
million units annually, based on three shifts. As of December 31, 2003, based on
one shift,  our capacity  utilization  on the pump spray line averages 32% on an
annual  basis.  Based on one shift,  the capacity of the pump spray line is four
million units, annually.

         With respect to continually sterilized saline aerosol manufacturing, we
are   capable  of  bulk   manufacture,   sterile   filling,   valve   placement,
actuation/capping  and  packaging  into final  product  shipper.  Based on three
shifts,  the saline  aerosol  line is capable of producing  15.2  million  units
annually.  As of December 31, 2003, based on one shift, our capacity utilization
on the aerosol saline line averages 26% on an annual basis.  Based on one shift,
the capacity of the saline aerosol line is five million units annually.

         Finally,  with respect to secondary packaging,  we utilize two discrete
areas capable of handling a wide range of products and packaging materials on an
automatic, semi-automatic, and manual basis. The MDI packaging lines are capable
of packaging material via check-weighers, function testers, labeling, cartoning,
shrink-wrapping,  coding and palletizing equipment. Based on three shifts, these
packaging lines are capable of packaging 33.4 million units annually.

         Below is a capacity summary in connection with our Company's current
manufacturing run rate.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                        Capacity Summary 2003
--------------------------------------------------------------------------------------------------------
                                      Annual
                                  capacity based       Annual
                                  on 3 shifts at   capacity based                          Present
                   Average line   100% capacity    on current run    Estimated 2003    utilization rate
                    run speed      utilization     rate (1 shift)   production units    based on single
 Production line      (cpm)*       (units 000s)        000s)         (units (000s)        shift (%)
----------------- -------------- ---------------- ---------------- ------------------ ------------------
<S>               <C>            <C>              <C>              <C>                <C>
      Saline            50             15,187          5,125            1,333                26
----------------- -------------- ---------------- ---------------- ------------------ ------------------
    Pump Spray          40             12,150          4,100            1,312                32
----------------- -------------- ---------------- ---------------- ------------------ ------------------
       DPI               7             2,127           1,000             240                 24
----------------- -------------- ---------------- ---------------- ------------------ ------------------
       HFA              30             9,112           3,075             523                 17
----------------- -------------- ---------------- ---------------- ------------------ ------------------
       CFC              100            30,375         10,250             185                 2.0
----------------- -------------- ---------------- ---------------- ------------------ ------------------
   Hydrocarbon          90             27,336          9,224            3,228                35
----------------- -------------- ---------------- ---------------- ------------------ ------------------
</TABLE>

* cpm = containers per minute

Capital Improvements

         We  continuously  make  capital  improvements  to our  development  and
production  facilities  in order to  improve  operating  efficiencies,  increase
automation,  improve quality control and keep pace with regulatory  requirements


                                       6
<PAGE>

and market demand.  The total of these improvements over the next three years is
expected to be approximately $5 million, including approximately $1.6 million in
2004. We have also commenced implementation of a new business information system
with  related  computer  hardware  and  software.  The  cost of this  system  is
approximately $550,000.

Suppliers

         We  utilize  a  variety  of  suppliers  as  indicated  by our  and  our
customers'  respective  requirements.  There are five  critical  suppliers for a
number of our products,  primarily related to our can and valve requirements for
aerosol  products.  The loss of any of these  suppliers or the  interruption  or
delay in the supply of materials and components  could result in an adversity in
which we would be forced to seek an alternative source. These suppliers are:

         1.       Cebal - provides various types of cans
         2.       Perfect Valois - provides valves for MDIs
         3.       Lablabo - provides actuators for steroidal foam products
         4.       Bespak - valves for MDIs and the Clickhaler device
         5.       Pfifer - pump valves for nasal pump spray products

Inventories

         We maintain various levels of inventories of pharmaceuticals, materials
and  components  to produce our products and drug  delivery  devices,  which are
stored in a warehouse at our production site in the United Kingdom.  Inventories
are  reconciled  monthly and  security  measures are in place to avoid theft and
unauthorized access. Additionally, finished products are quarantined in specific
areas within our warehouse facilities before shipping to our customers.

Development

         Our  development  operation is comprised of a 15-person  pharmaceutical
research  and  development  center,  located  at a  30,000  square  foot  leased
laboratory and office complex in Manor Park, Cheshire, England. This development
and testing center, which is a five minute drive from our Astmoor  manufacturing
site,  provides  analytical  and  formulation  development,  stability  testing,
scale-up and validation  outsourcing  services to our clients.  On a contract or
fee-for-service  basis, we provide product research and development  services to
our customers in the respiratory,  allergy,  dermatological  and topical disease
areas. In addition to these services,  our research and development group is now
actively involved in developing our own proprietary  products,  and seeking drug
delivery extensions and improvement for existing marketed products. Our research
and  development  group also  provides  our  manufacturing  services  group with
integrated support for product scale-up and  commercialization  activities,  and
explores  ways to  improve  the  quality  and  efficiency  of our  manufacturing
processes. Our development scientists and associated laboratories have developed
a number of pharmaceutical  products for our clients,  which are currently being
supplied  to these  clients in a number of  international  markets.  Early-stage
development  activities  are outsourced  when necessary to independent  clinical
research organizations to reduce overhead costs and increase efficiency.

         Our  development  operation,  comprised of five  separate  areas listed
below,  is  vertically  integrated  into our  manufacturing  operation,  thereby
allowing us to provide complementary scale-up and commercialization services for
our manufacturing clients and to scale-up our own products,  when developed,  to
commercial production.

         Formulation  Development.  We have the  capability  to formulate a wide
range of  therapeutic  dosage forms.  We presently  concentrate  on those dosage
forms that  complement  our core  manufacturing  skills,  such as orally inhaled
products   (metered  dose  and  dry  powder   inhalers),   nasal  pump  actuated
formulations and topical and dermal pharmaceuticals.

         Analytical  Development.  Our development group also has the ability to
work closely with existing and new customers to provide method  development  and
validation  services that support  pre-formulation  and stability testing.  This
group is equipped with required analytical  instrumentation  including automated
High  Performance  Liquid  Chromatography  (HPLCs),  gas liquid  chromatography,
malvern particle sizer, and Anderson cascade  impactors.  Generated  methods and
reports are used to support worldwide regulatory submissions.


                                       7
<PAGE>

         Stability.  Our development  group also provides  extensive  time-point
testing  expertise,  enabling the group to guide our clients to the  appropriate
stability  protocol for a particular type of dosage form or targeted  geographic
market.  Large walk-in  stability  chambers offer the flexible  capacity to meet
world-wide  market  requirements,   all  operating  within  guidelines  for  the
International   Conference  on  Harmonization  of  Technical   Requirements  for
Registration  of  Pharmaceuticals  for Human Use (ICH).  We intend to expand our
stability  capabilities and services as we believe that customer demand for this
type of development service is growing.

         Regulatory  Support.  This  development  service is  comprised  of four
functions:  1)  technical  guidance,  which  involves  ensuring  that all agreed
technical  protocols  will  achieve  license  approval in the target  geographic
market; 2) license submission support, where we generate a comprehensive product
technical  file,  which is then  transferred  to the client for  inclusion  in a
regulatory file submission;  3) technical  assistance,  which involves assisting
the client to respond  promptly to queries  and  questions  from the  regulatory
authorities;  and 4) license maintenance,  which involves supporting renewal and
license variations including manufacturing licenses.

         Integrated  Project  Management.  We also provide full turnkey  project
management services at our Manor Park development center. These services include
formulation  and  analytical   development   through  production  scale  process
validation and batch stability, and to license submission support and production
for commercial  marketing.  Alternatively,  our development clients can contract
for  any  combination  of the  individual  component  services  provided  by our
development group.

Seasonality

         A number of our products are seasonal, especially the metered dose pump
sprays such as Beclometh aqueous nasal products that are supplied to the allergy
market. Such products are predominantly  produced early in the first quarter for
sale in the spring  season and then again in the third  quarter  for sale in the
late   summer   (harvest   season)  of  each  year.   We  also   manufacture   a
hydrocarbon-based  product that is used in the treatment of head lice,  and this
is produced to allow its sale to coincide with the beginning of school terms.

Operating Strategies

         We  believe  that  our  competitive  strengths  lie in our  experienced
management,  our ability to offer  specialized  pharmaceutical  development  and
manufacturing  services,  including product transition consulting services,  and
our  blue-chip  customer  base.  We intend to employ the following key strategic
initiatives in order to leverage our strengths:

Provide comprehensive  sterile fill manufacturing and developmental  services in
the aerosol and topical spray market sector.

         We believe  that the  outsourcing  of  finished  dosage form drugs is a
growing trend in the pharmaceutical industry,  resulting in an increasing demand
for our  services.  By  capitalizing  on our niche  sterile-fill  pharmaceutical
aerosol  manufacturing  technologies,  we intend to  provide  our  clients  with
commercial  manufacturing  capabilities  that may be largely  unavailable to our
clients'   competitors.   Additionally,   through  integrated   late-stage  drug
development  and  manufacturing  scale-up  capabilities,  we believe that we can
enhance our clients' competitive position by accelerating the time to market for


                                       8
<PAGE>

their new pharmaceutical products. Due to the ensuing site-specific,  regulatory
authorizations for the manufacture of these products at our production facility,
we believe we can retain the subsequent commercial  manufacturing  opportunities
from clients.

Develop and invest in specialized sterile-fill manufacturing processes that have
significant barriers to entry.

         We  believe  that we must  continue  to  expand  our  customer  base by
developing and investing in  specialized  sterile-fill  manufacturing  processes
that  constitute  significant  barriers  to entry.  We believe  that most of our
contract services growth opportunities will come from pharmaceutical  companies'
requirements for highly specialized manufacturing  technologies,  for which they
lack the required  niche  expertise or capacity,  as well as from the  increased
presence  of  biopharmaceutical  and  virtual  pharmaceutical  companies  in the
healthcare   market.   These  types  of  companies   usually  lack  an  in-house
manufacturing infrastructure and, therefore, we expect that these companies will
increasingly   rely  on  us  for  their  process   development   and  production
requirements.   We  believe   that  as  we  further   develop  our   specialized
manufacturing  capabilities,  we can maintain  greater  pricing power and margin
growth as a result of  increased  demand.  Based on our  experience  within  the
industry,  we  believe  that  potential  clients  may be unable to secure  these
specialized manufacturing  capabilities elsewhere,  while competitors may not be
inclined to invest in specialized non-core  manufacturing  competencies that may
take significant time and capital to develop.

Enhance clients' competitive position by accelerating time to market for new and
innovative pharmaceutical products.

         We believe  that one of our  strengths  is our  ability to provide  our
customers  with a  full  spectrum  of  products  and  services  in  development,
formulation,  analytical  testing and trial, and large-scale  production  phases
within the pharmaceutical  aerosol sector. By leveraging integrated scale-up and
pilot  facilities,  we believe we can assist our  clients  develop  sterile-fill
manufacturing  processes to commercialize  new or innovative  products.  We also
believe that as a result of their limited financial resources, which are focused
on  clinical   development  and  clinical  testing,   biotechnology  and  small,
specialized  pharmaceutical  clients will  increasingly  rely on our  integrated
product  development and  manufacturing  capabilities to bring their products to
market.

Focus on quality,  versatility,  innovative  solutions and outstanding  customer
service.

         We believe  that our success is  critically  dependant  upon  achieving
results for our clients by providing comprehensive and versatile development and
manufacturing  services  in our  targeted  market  sectors,  which  include  the
respiratory,   allergy,  dermatological  and  topical  disease  areas.  We  have
integrated our  development  and scale-up  capabilities  with our  manufacturing
operations in order to allow ourselves to efficiently  introduce new products or
product line extensions  into a targeted  market area.  Based on our experience,
regulatory  agencies  such as the  United  States  Food and Drug  Administration
("FDA") and the United  Kingdom  Medicines and  Healthcare  Products  Regulatory
Authority  ("MHRA") are continuously  enacting new policies  requiring more high
quality  control  and  quality  assurance  systems in the global  pharmaceutical
industry.  As a result of these policies by the regulatory agencies,  we believe
that we must continually  invest to maintain and upgrade our  manufacturing  and
quality systems to meet the evolving  requirements of such regulatory  agencies,
our  customers  needs,  and our own  requirements.  We believe that we must also
continue to enhance our staff  training  systems in order to improve our staff's
performance  in line  with  our  customers'  changing  needs.  We  believe  that
manufacturing  flexibility,  along with a  well-trained  staff and high  quality
systems, will allow us to provide good customer service, and thereby enhance our
competitive position and growth opportunities.

Improve the organic growth of the business by introducing  volume  products that
complement the existing  product  portfolio,  especially via the introduction of
our own proprietary products.

         We  believe  that we  possess  a  blue-chip  customer  base that has an
international  presence and multinational  distribution  channels.  Based on our
review of publicly available documents, many of our customers are lacking one or
more key  pharmaceutical  aerosol  products in their  product  portfolio  or are
looking for product line  extensions in niche market  areas.  We believe that by
developing  and licensing  these types of niche  products to our client base, we
can significantly  increase our manufacturing  volume and enhance the commercial
relationships we have with these customers. We believe that the Company can also
take advantage of key strategic  relationships with a number of our customers to
exploit key and profitable  niche market  sectors in the aerosol  pharmaceutical
market.  We believe that these  customers  would prefer to allocate  capital and
resources to sales and marketing  functions,  while leaving the manufacturing to
companies  like us. This may become even more prevalent in the event that highly
specialized development processes or equipment is required. We believe this type
of  relationship  may  lead to a  strategic  relationship  with  such  potential
clients.  These types of ventures  may become even more  prevalent  in the event
that a  highly  specialized  development  process  or  production  equipment  is
required.  We believe that such factors also facilitate the  introduction of our
Company's own proprietary  products,  which will allow us to focus on materially
higher  profitable  business  opportunities  while  departing  from lower profit
activities.

Capitalize  on  the  increasing  conversion  from  ozone-depleting  CFC  aerosol
pharmaceutical products to non-CFC pharmaceuticals.

         We believe that we are one of the few  pharmaceutical  companies in the
world that has proven  experience in the conversion from CFC to CFC-free (namely
HFA propellant) aerosol  pharmaceuticals,  and we have conducted such transition


                                       9
<PAGE>

for clients in Europe and Canada. As the United States and countries in Asia and
Latin and South America implement the phase-out of CFC  pharmaceutical  products
in coming years, we plan to increase our contract  development and manufacturing
services  in this  area and  also to  leverage  our  CFC-to-HFA  expertise  into
strategic  partnering  relationships,  as well as to cultivate our Company's own
CFC-free proprietary products.

Where feasible, acquire under-exploited,  complementary  pharmaceutical products
and businesses that would benefit from our development and production expertise.

         We  also  view  growth  opportunities  through  strategic  product  and
business  acquisitions  that  would  benefit  from our  aerosol  pharmaceuticals
development  and  production  expertise,   including  our  capabilities  in  the
conversion  of  CFC-based   pharmaceutical   aerosol   productions  to  CFC-free
pharmaceutical  aerosols.  We believe that there is an  increasing  trend in the
pharmaceutical  industry,  particularly  by  big  pharmaceutical  companies,  to
license or sell outright products that they deem to no longer be core assets. We
also believe that the  acquisition of strategic  products and  businesses  would
accelerate the building of our Company.

Insurance Coverage and Risk Management

         We  maintain  insurance  coverage,  including  property,  casualty  and
business  interruption;  foreign medical costs; freight;  motor vehicles;  title
insurance  on owned real  properties;  errors and  omissions  including  product
liability;  and employee injury liability. We also maintain director and officer
liability coverage.

         Our products must meet with the strict  requirements of  pharmaceutical
manufacturers  including  those  required by the FDA and MHRA, and general cGMPs
(current Good  Manufacturing  Practices).  We also maintain a quality  assurance
group to ensure that production  quality and associated  documentation  meet the
requirements of customers and regulatory  authorities alike. The quality control
group performs  in-line  testing during the  manufacturing  operations to ensure
that the necessary  standards are met. All filled and packaged product is placed
in  quarantine  to verify  and  ensure  sterility  before it is  shipped  to the
customers. Regulatory agencies, local environment, health and safety authorities
and the customers themselves, inspect and audit our facilities and operations on
a regular basis.

Industry Overview and Markets

The Pharmaceutical Manufacturing Market

         According to two financial  reports  (National  Bank Financial and CIBC
World  Markets)   published  in  November  2001,   market  spending  for  global
pharmaceutical  manufacturing  has  reached $53  billion,  or just over 13% of a
total  global  pharmaceutical  market of $400  billion.  The $53 billion  global
manufacturing  market  represents  both in-house and  outsourced  pharmaceutical
manufacturing and is divided between two market segments:  primary manufacturing
and secondary manufacturing. Primary manufacturing relates to the manufacture of
active pharmaceutical  ingredients ("API") in bulk. Spending in this segment has
reached $19 billion.  Secondary  manufacturing  refers to the processing of APIs
into finished dosage-form pharmaceutical products ("fill and finish").  Spending
in this segment has reached $34 billion. The highlighted reports further outline
that of the total $53 billion spent annually on the pharmaceutical manufacturing
market,   approximately   $14.8  billion  of  those   expenditures  are  in  the
manufacturing  outsourcing  sector  and  approximately  $38.4  billion  of those
expenditures are in the in-house manufacturing sector.

Pharmaceutical Manufacturing Outsourcing Sector

         According  to  the  noted   reports,   pharmaceutical   companies   are
outsourcing their manufacturing and packaging requirements increasingly allowing
them to focus on core  competencies  such as the research and development of new
drug  products.  During  2001,  the  primary  manufacturing  outsourcing  sector
accounted  for $9.7 billion of  expenditures,  and the  secondary  manufacturing
outsourcing  sector accounted for $5.1 billion of  expenditures.  Outsourcing in
the primary manufacturing  segment is well established,  due to the availability
of  large-scale,  low cost-base  facilities.  Given the maturity of this sector,
outsourcing   growth   opportunities  are  relatively   limited.   In  contrast,
outsourcing of finished dosage-form drugs (secondary manufacturing  outsourcing)
is a  relatively  new  trend  in  the  pharmaceutical  industry.  Demand  in the
secondary  manufacturing  outsourcing sector emerged mainly from escalating drug
research, development and regulatory costs, and the need to access manufacturing
capacity.  We are  focused on  sterile-fill  manufacturing  applications  in the


                                       10
<PAGE>

secondary finished dosage-form manufacturing segment. According to the Freedonia
Group,  an industry  market  research  organization,  sterile-fill  applications
account  for  approximately  $8.2  billion  of the total $34  billion  secondary
manufacturing market segment.

Targeted Market Sectors

         Due to the added  regulatory  scrutiny and  resulting  high barriers to
entry,  we have  focused our  expertise  on the sterile  aerosol  pharmaceutical
market sector. Aerosol pharmaceuticals are those drugs that are administered via
varying  spraying  mechanisms  through  the use of  propellants,  forced  air or
mechanical  pump  actions.  Propellants  include  CFC and HFA  gases  for use in
respiratory   aerosols,   or   hydrocarbon   propellants   which   are  used  in
dermatological  aerosols to create a foamed solution.  We have also targeted the
following market sectors:

         Respiratory Market - According to publicly available published reports,
the respiratory  patient population is one of the fasted growing segments in the
healthcare  market.  Asthma and chronic  obstructive  pulmonary  diseases affect
approximately   10%  of  the  population  in  industrialized   countries,   with
significant growth forecasted as a result of increasing incidents and awareness.
This includes allergy,  asthma, chronic obstructive pulmonary disease and coughs
and colds.  According  to a recent  respiratory  market  report by the  industry
research group Datamonitor,  the global asthma market alone is estimated to have
reached  $11.5  billion  annually.  The United  States is the  largest  national
market,  accounting for approximately 35% of the global asthma market.  The U.S.
market is followed by the Japanese market,  which accounts for approximately 13%
of the global asthma market.  However, the United Kingdom has the largest market
size per capita,  due to high  diagnosis and treatment  rates and higher product
prices there.  Given that many of the branded inhalant products are scheduled to
lose  patent  protection  within the next  three  years,  market  demand and the
subsequent   development   and   production   of  such  drugs  should   increase
significantly.  Additionally,  due to the Montreal Protocol regarding the ban on
ozone-depleting CFC sprays,  there are new regulations that require companies to
phase out  CFC-containing  inhalers  and replace  them with  CFC-free  inhalers,
propelled by  substances  such as HFAs.  Many  countries,  including  the United
States,  have not yet  implemented  the phase-out of CFC propellants for medical
products,  whereas the European  Community,  Canada and Australia have generally
phased out the use of CFC pharmaceuticals.

         We  believe  that we are one the few  pharmaceutical  companies  in the
world that has both CFC and HFA manufacturing capabilities. We also believe that
we are one of a small number of companies that have the development capabilities
to assist our clients in the transition from CFC to HFA inhaler applications.

         The Systemic Drug Delivery Market - Traditionally, the vast majority of
medicines have been administered orally,  either in solid/tablet or liquid form.
Not all  drugs  can be  taken  effectively  through  the  digestive  tract  and,
therefore, must be administered parenterally, usually by injection. The inherent
draw back to  injections  is in patient  compliance  and risk of infection  when
utilizing needle devices.  Drugs administered through the lungs,  however,  also
reach the  circulatory  system very quickly,  bypassing the digestive  track the
same way as an  injection.  As there is no pain or  reluctance  associated  with
needle use, patient compliance may be much higher with oral-spray delivery. As a
result, respiratory aerosols may be excellent alternative to injections.

         According to publicly available  documents  regarding the biotechnology
industry, with the recent mapping of the human genome, it has been reported that
there has been an explosion in new drug discovery  targeted for specific disease
states.  These new drugs tend to be large peptides and proteins.  If these types
of complex molecules were to be taken orally, the environment encountered in the
human digestive tract would degrade them and render them  ineffectual.  As such,
many of these new drugs may be excellent  candidates  for  delivery  through the
lungs. In addition, some of these large molecule drugs may also be candidates to
be  administered  nasally.  Based on our  experience in pulmonary and nasal drug
delivery systems,  combined with our development capabilities in these areas, we
believe that we are in an excellent  position to  capitalize on working with new
molecules that lend themselves to these types of drug delivery systems.

         The Dermatological  Market - In 2001, the worldwide retail prescription
market for dermatological  pharmaceuticals  was estimated by IMS Health to be $9
billion  and  growing  at 5% per  year.  In  the  same  year,  the  U.S.  retail
prescription market for dermatological pharmaceuticals was valued at $4 billion.
The  market is  normally  subdivided  into five  categories:  retinoids  (any of
various  synthetic or  naturally  occurring  analogues of vitamin A),  steroids,
antifungals,  antibiotics and other  products.  Such products are widely used to


                                       11
<PAGE>

treat skin conditions, including: acne and atopic dermatitis, fungal infections,
inflammation  and psoriasis,  baldness and for hair removal.  In addition,  such
drugs  are used  for  diagnostic  procedures  and to treat  symptoms  of  aging,
photo-damage and photosensitivity.

         According to publicly available reports,  skin conditions requiring the
use of medications often tend to be of a chronic nature with causes unknown. The
drugs are often used in order to relieve  symptoms  rather  than as a  permanent
cure.  The result is a constant  demand for  continuing  drug  therapy  from the
patient  base.  Until  recently,  this market has lacked  innovation in its drug
delivery sector. Drugs were normally  administered only in creams and ointments.
Some  patients are  reluctant to use  treatments  that leave  visible  sticky or
greasy spots on themselves  or their  clothing.  With the advent of  hydrocarbon
aerosol  technology,  drugs can be  delivered in a manner that allows the active
ingredient to be quickly  absorbed  into the skin leaving no residues.  This may
result in better patient  compliance and, in turn,  greater usage and demand for
the drugs  administered  in this fashion.  We believe that with our  hydrocarbon
aerosol manufacturing capabilities,  we are well positioned to take advantage of
this  trend  in  the  dermatology  marketplace.  In  addition,  we  possess  the
development  capabilities  to assist new clients to transition  their drugs into
this new delivery system.

Trademarks, Patents and Licenses

         When we acquired  Inyx  Pharma,  we  acquired a number of licenses  and
other forms of intellectual property.

Pharmaceutical Manufacturing Licenses

         Inyx Pharma possesses a Manufacturer's License,  ML20165/1,  granted by
the  MHRA  and also  possesses  all the  necessary  authorities,  approvals  and
certifications to conduct normal business  activities within the United Kingdom.
See "--  Government  Regulation."  The license must be renewed every five years,
and the next renewal is in February 2008.

Product Licenses

         Inyx  Pharma  owns  product  licenses  granted  by the MHRA in the U.K.
market for  Oxymetazoline  decongestant  nasal spray  (expiration  August 2005),
Chlorhexidine   Gluconate   mouth   spray   (expiration   December   2005)   and
Beclomethasone  Dipropionate nasal spray (expiration August 2008). Every license
in the United  Kingdom is granted for a period of five years.  At that time, the
product  license is subject to a review by the MHRA.  The MHRA  reviews  product
stability, adverse event reports and any legislative changes that may have taken
place  within  that  five-year  period  that may  have  affected  the  licensing
requirements  for that product.  During the review process,  the subject company
may continue to market the licensed product. Once the MHRA completes its review,
it extends the expiration  date on the license for another five years,  when the
licensing review cycle is repeated again.

Medical Devices

         Inyx Pharma is also an ISO9001/EN 46001 registered  company and as such
is approved for the design, manufacture and inspection of pharmaceutical medical
devices.  Such medical  devices  include  sterile  saline for wound  irrigation,
ringers irrigation solution,  sterile saline in a polyethylene  bottle,  sterile
buffered  saline for contact lens use,  sterile  saline aerosol for contact lens
use, two step lens care system stage one-disinfecting solution and two step lens
care system stage two-rinsing and neutralizing solution. Such certification must
be renewed  annually,  and we  received  approval  in March 2004 for the ensuing
twelve months.

Registered Marks and Logos

         We are presently  using and have filed  trademarks on Inyx, Inyx Pharma
and the associated logo (i.e., six square orange and grey boxes).

Patents and Registered Design Rights

         Our customers' patents and product licenses are owned by the respective
client. On a contract basis, we manufacture products according to our customers'
specifications.  Until we  successfully  develop  and  begin to  market  our own
products,  we will not have any design  rights  that are  registered  to our own
brand items.  At that time,  we will seek  trademark  protection  for any design
rights or brand names for such products.


                                       12
<PAGE>

Confidential Information, Industrial Secrets, Trade Secrets and Know-how

         Confidential  information,  such as business  proposals  and/or  plans,
customer lists, profit projections,  budgets, economic or market information and
specific  manufacturing methods, is limited to staff and customers on a "need to
know" basis. Data such as manufacturing formulas and methods, forecasts etc. are
held within databases under individual  password control.  We retain and control
all associated soft copy and hard copy documentation.

         We have entered into a number of confidentiality  agreements with third
parties including customers, suppliers and contractors.

Databases and Software Protection

         We have  replaced  our  existing  information  technology  and business
management system with the Sage 500 Management Information System, which started
to become operational in January,  2004. This system is intended to support many
of our business functions, including manufacturing,  warehousing,  distribution,
logistics, sales reporting,  accounting,  inventory, quality control, budgeting,
financial reporting,  and operating and strategic reporting.  In connection with
the  Sage 500  implementation,  we will  incur  related  costs of  approximately
$550,000 as a one-time cost for the purchase of hardware and operating software,
and  implementation   costs,  plus  annual  maintenance  and  support  costs  of
approximately $65,000.

         Other databases including PEMAC (Planned Maintenance program), Prolog 4
(Payroll system),  Maximizer (Customer Relationship Management system) and other
Microsoft  based  systems are all  individually  licensed,  and  controlled  and
supported by our internal information technology group.

Software

         As part of the Sage 500 Management Information system purchase, we will
ultimately own both the associated hardware and operating system software
("Sage") that will require newer version annual updates. The proprietary license
for "off-the-shelf" software that we have traditionally utilized are held by the
providers.

Domain Names

         We have  registered  several  domain  names,  including  "inyxinc.com,"
"inyxcorp.com," "inyxpharm.com,"  "inyx-pharma.co.uk" and "inyx-pharma.com." Our
primary website is located on the world-wide web at "inyxinc.com."

Competition

         According to two financial  reports  (National  Bank Financial and CIBC
World  Markets)  published  in  November,  2001,  and other  publicly  available
documents, the global contract service industry was comprised of more than 1,000
contract   manufacturing    organizations   ("CMOs")   and   contract   research
organizations ("CROs") combined.  Reports further indicate that fewer than 20 of
these CMOs and CROs are major  participants  in the  pharmaceutical  outsourcing
industry.  Competition also comes from in-house producers.  The majority of such
competitors  provide  contract  manufacturing  services to third parties only if
manufacturing  capacity is available.  In some cases, these competitors may also
present  acquisition   opportunities  as  consolidation  in  the  pharmaceutical
industry continues.

         We believe that we are able to compete  effectively as a pharmaceutical
CMO because we provide our customers with a spectrum of products and services in
specialized niche areas but on a broad scale. We believe that we are a leader in
the development, commercialization and production of respiratory, dermatological
and topical aerosols.  Additionally, by leveraging integrated scale-up and pilot
facilities,  we can assist  clients  in  developing  sterile-fill  manufacturing
processes  to  commercialize  new or  innovative  products in the  aerosol  drug
delivery market.

         In the  specialty  pharmaceutical  sector,  we  compete  directly  with
several pharmaceutical product development and manufacturing organizations. Many
of  our  competitors,   particularly   large  established   pharmaceutical   and
biotechnology  companies,  have  significantly  greater resources than we do. We
believe that by focusing on selected niche sectors of the pharmaceutical  market


                                       13
<PAGE>

such as the respiratory and  dermatological  aerosol fields,  we can effectively
compete  with our  competitors  by  leveraging  our  experience,  expertise  and
customer  distribution channels on specialty  pharmaceutical  products which are
positioned at a price point that is attractive to the payer community  including
managed care, government formularies and the specialist physician population.

Government Regulation

         Our business as a  pharmaceutical  company is  regulated by  government
authorities in the United States,  the United Kingdom,  and other  jurisdictions
where we and our customers  market and distribute  products,  including  Canada,
various parts of Europe and Latin America.  We must ensure that our products and
services  continuously  comply with strict  requirements  designed to ensure the
quality and integrity of pharmaceutical products. These requirements include the
United States  Federal Food,  Drug and Cosmetic Act ("FDC Act")  governed by the
FDA and the MHRA under cGMP ("current Good Manufacturing Practices") regulations
for   pharmaceutical   manufacturers.   Our  products  and  services  must  also
continuously  comply  with  the  requirements  of the  European  Agency  for the
Evaluation  of Medicinal  Products (the  "EMEA"),  and the Canadian  Therapeutic
Products  Directorate (the "TPD").  These regulations apply to all phases of our
business,  including drug testing and manufacturing;  record keeping;  personnel
management;  management and  operations of facilities and equipment;  control of
materials, processes and laboratories; and packaging, labeling and distribution.

         All of the pharmaceutical products supplied to the United States market
are approved and  regulated by the FDA and are approved  under,  and subject to,
the FDC Act. In the U.S., the FDA requires extensive testing of new and existing
pharmaceutical  products to demonstrate  safety,  efficacy and purity,  ensuring
that the products are effective in treating the  indications  for which approval
is granted.  Where  products  are under  development,  testing in humans may not
commence until either an Investigational  New Drug application has been approved
or an exemption is given by the FDA.

         Where a drug is acquired that has been previously  approved by the FDA,
both the  Company  and the  former  application  holder are  required  to submit
certain  information  to the FDA.  This  information,  provided it is  adequate,
enables the transfer of manufacturing and/or marketing rights to take place. The
Company is also required to advise the FDA about any changes that may affect the
approved application as set forth in FDA's regulations.  Our strategy focuses on
acquiring  existing  approved  products  or  those  in  late-stage  development,
transferring  manufacture  to  our  own  facilities  to  leverage  our  existing
expertise and know-how where this is considered both economic and  advantageous.
In order to perform such transfers,  we must  demonstrate by filing  information
with the FDA that we are able to  manufacture  the  product in  accordance  with
cGMPs  and  the   specifications   and  conditions  of  the  approved  marketing
application. For changes where prior approval is required under FDA regulations,
there is no assurance that such approval will be granted by FDA.

         The FDA also mandates that drugs be manufactured, assembled and labeled
in  conformity  with such cGMPs.  In  complying  with cGMP  regulations,  we are
required to  continue to expend  time,  money and effort in  production,  record
keeping,  and quality control to ensure that the products meet the necessary and
applicable   specifications.   The  FDA  periodically   inspects   manufacturing
facilities to ensure  compliance with applicable cGMP  requirements.  Failure to
comply with the statutory and regulatory  requirements subjects the manufacturer
to regulatory or, in some extreme instances,  to possible legal action,  such as
suspension of manufacturing,  seizure of product, or voluntary recall. Where FDA
inspections  result in cGMP  non-compliances  being  observed  a written  report
(known as a FDA Form 483) is issued.  These  observations  are  reported  to the
manufacturer  to  assist  in  complying  with  the FDC  Act and the  regulations
enforced by FDA. The last FDA  inspection  of our United  Kingdom  manufacturing
facility  resulted in the  issuance of a Form 483 that  required the facility to
resolve a number of observations, but did not require us to delay or discontinue
the  production of any products made at its facility for the U.S.  market as the
non-compliances issued were corrected.  Adverse experiences with products in the
market must be reported to the FDA and could result in the  imposition of market
restrictions through labeling changes or product removal.  Product approvals may
be withdrawn if compliance with regulatory  requirements is not maintained or if
problems concerning safety, or efficacy of the product occurs after approval.

         The  U.S.   government  has  extensive   enforcement  powers  over  the
activities of pharmaceutical manufacturers,  including the authority to withdraw
approvals,  to prohibit sales of unapproved or  non-conforming  products,  seize
product and to halt  manufacturing  operations that are not compliant with cGMPs
in addition to monetary  penalties,  both civil and criminal.  Such restrictions
may materially adversely affect our business,  financial performance and results
of operations.


                                       14
<PAGE>

         In  addition,   modifications   to  or  enhancements  of  manufacturing
facilities  may be subject to further  additional  approval  by the FDA that may
require a lengthy  approval  process.  The Company's  manufacturing  facility is
subject to continual  inspection  from  regulatory  bodies and other  government
agencies such as the FDA, and  manufacturing  operations  can be  interrupted or
halted if such inspection proves unsatisfactory.

         Our  United  Kingdom  manufacturing  facility  holds  a  Manufacturer's
License granted by the U.K.'s Medicines Control Agency, which, on April 1, 2003,
merged with the U.K.'s  Medical  Device  Agency to form the MHRA.  This  license
permits the Company to manufacture,  control and supply pharmaceutical  products
to all markets provided that individual  products meet with the specification in
force within the particular territory that the product is marketed.  The MHRA is
very  similar to the FDA in that it operates  under formal  legislation  (in the
U.K.  known as The  Medicines  Act) that  controls the approval of all medicinal
products used within the U.K. As a member of the European  Union,  the MHRA also
regulates  products  manufactured for sale both within the U.K. and the E.U. The
MHRA is responsible for the review and approval of all license applications and,
via its  inspection  and  enforcement  division,  the  inspection and control of
manufacturing, assembly and labeling requirements for all medicinal products. As
with the FDA, the MHRA has a legal  jurisdiction  whereby  companies who are not
compliant with license particulars (known as marketing authorizations within the
E.U.)  or  cGMP  can be  heavily  penalized,  including  seizure,  cessation  of
manufacture,  product  recall  or, in extreme  cases,  the  cancellation  of the
manufacturer's  license.  In this latter  case,  the  manufacturing  facility is
unable to manufacture  for any market.  Monetary  penalties can also be enforced
subject to the judicial system approval within the U.K.

         Following  an  inspection,  the MHRA  issues a  report  (called  a Post
Inspection  Letter) that highlights any observation or deficiencies noted at the
facility,  to aid the manufacturer to resolve any  non-compliances  noted during
the inspection. At the last inspection in October 2001, a Post Inspection Letter
was issued that highlighted a number of  non-compliances  to be addressed . This
did not require the  interruption  of  manufacturing  activities nor require any
impact upon products supplied from our facility,  as the non-compliances  issued
were corrected.

         Our operations are also subject to numerous and increasingly  stringent
regulations,  whether  scientific,  environmental  or labor related,  and can be
applied  via  central  government  or at  state or local  level.  The  standards
required  by  regulatory  authorities  as  a  result  of  changes  in  statutes,
regulations or legal interpretations cannot be determined in advance by us. Such
future  changes  could have a material  effect upon our  business in the future.
Changes  may,  among  other  aspects,   require  modification  to  manufacturing
facilities or processes,  amend labeling, result in product recall,  replacement
or discontinuation of products, increase the requirements for control and record
keeping or require additional scientific substantiation. Such changes may affect
our business, financial condition and results of operations.

         In addition to regulations  that govern the  manufacture  and supply of
pharmaceutical  products,  our facility is also subject to  regulation  by other
agencies such as the U.K.'s Health and Safety  Executive,  Environmental  Agency
and other legislation within the U.K. (e.g., Labor Relations Act, etc.) that are
applicable  under the laws of the United  Kingdom.  Periodic  inspection  by the
appropriate  agencies  occurs  to  ensure  that we are in  compliance  with  the
requirements  within the appropriate  regulations whether these are local, state
or national.

Employees

         As of  December  31,  2003,  we  employed  a  total  of 127  personnel,
consisting of 5 executives,  13 managerial, 12 clerical, 37 technical (including
15  scientific  research  and  development  personnel),  and 59  production  and
maintenance  staff.  All but five of our employees  reside in the U.K. Our Chief
Executive  Officer and two other key executives  reside in North America and our
President  resides in the U.K. We are seeking a Chief Financial  Officer,  and a
senior sales and marketing executive, both of whom will reside in North America.
None of our  employees is a member of any union.  Our U.K.  subsidiary  consults
with  its   employees   via  a  Joint   Consultation   Committee   comprised  of
representatives  across  all  levels of the  business  and  chaired  by a senior
manager. The purpose of that committee is consultative only. We believe we enjoy
favorable  relations  with our  employees.  We make  available to our  employees
benefits  consisting of a contributing and matching pension plan available after
one year of service,  life insurance benefits,  and stock options based upon the
Company's value and meeting performance targets.


                                       15
<PAGE>

Environmental Impact

         We utilize a variety of  chemicals in our  business,  many of which are
dangerous  if  used  or  handled  improperly.  As of  March  2004,  we  utilized
approximately  170 raw material  chemicals to formulate  over 160 bulk  products
that in turn are used to produce approximately 400 finished goods. A substantial
number of the  chemicals  we handle are  classified  as  dangerous  due to their
toxicity,  corrosiveness,  ability to cause irritation or  flammability.  Wastes
from our  manufacturing  and testing processes are either collected in drums and
removed by a waste  contractor  or discharged  into public sewers  pursuant to a
Trade Effluent Discharge Consent. The Company takes stringent precautions in the
storage and use of these materials and constantly  trains its personnel in their
use. Because of this, we have not caused any release of hazardous materials into
the  environment  or exposed any of our employees to health  risks.  We maintain
liability and products-liability  insurance covering the risks of such exposure,
in amounts we deem to be adequate.

         Under  government  regulations  governed  by the  Montreal  Protocol on
Substances That Deplete the Ozone Layer,  chlorofluorocarbon  ("CFC")  compounds
are being phased out because of environmental concerns. We presently manufacture
respiratory  inhalers  that utilize CFC gas as a propellant.  Although,  we have
expertise in converting such products to non-CFC based respiratory  inhalers and
have commenced  manufacturing  non-CFC or hydrofluoroalkane  ("HFA") respiratory
inhalers at our Inyx Pharma production facility, a small number of our customers
continue  to  require  CFC  respiratory  inhalers.  These  customers  sell these
products in a number of countries  that still allow the import and  marketing of
CFC-based  respiratory  inhalers.  We believe  that we are able to  successfully
implement  a  complete  transition  to the use of  CFC-free  gas or HFA gas as a
propellant in the  development  and  production of  respiratory  aerosols,  when
required by the respective governing agencies.

ITEM 2.  PROPERTIES
         ----------

Properties

         Our principal  executive offices are located at 825 Third Avenue,  40th
Floor, New York, New York 10022,  consisting of approximately  4,000 square feet
of leased space at an annual rent of $120,000.

         Our   manufacturing   facilities  are  situated  over  seven  proximate
locations  in Runcorn,  Cheshire,  England.  These sites are  combined  into the
60,000 square feet manufacturing facility in the Astmoor Industrial Estate. Five
of these sites are owned by Inyx  Pharma and two are leased from the  Warrington
and  Runcorn  Development  Corp.  for  annual  rents of  $45,000  and  $163,000,
respectively.

         Our development facility in the United Kingdom occupies a 30,000 square
feet  facility  nearby the  manufacturing  site, in the Seymour Court Manor Park
area owned by the Borough council. Annual rent is $127,000.

         Our Inyx Canada  subsidiary leases  approximately  2,800 square feet of
office space for an annual cost of  approximately  $50,000 at 4141 Yonge Street,
Suite 205, Toronto, Ontario M2P 2A8.

         All such facilities are deemed to be adequate for the Company's present
needs.

ITEM 3.  LEGAL PROCEEDINGS
         -----------------

         The  Company is  involved  from time to time in legal  proceedings  and
litigation  incidental  to  the  conduct  of  its  business.  No  pending  legal
proceeding  is deemed by the  Company to pose the risk of any  material  adverse
effect.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         ---------------------------------------------------
None.



                                       16
<PAGE>

                                    PART II

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
         --------------------------------------------------------

                        COMMON STOCK AND DIVIDEND POLICY

Market Information

         Our common stock is traded in the over-the-counter market on the Nasdaq
OTC Bulletin  Board under the symbol IYXI.  The following  table shows the price
range of the Company's  common stock since it was  initially  quoted in February
2003 until December 31, 2003.  Prior to May 14, 2003, our common stock traded in
the  over-the-counter  market on the Nasdaq OTC Bulletin  Board under the symbol
DBLQ. All amounts are adjusted for a 5-for-1 stock split in March 2003.

                                          BID                         ASK
Quarter Ended                      High         Low             High        Low
-------------                      ----         ---             ----        ---
12-31-02                           $0.30       $0.30            None       None
3-31-03                            $0.35       $0.25            $2.85      $1.25
6-30-03                            $1.70       $0.35            $2.85      $0.99
9-30-03                            $1.53       $1.09            $1.59      $1.15
12-31-03                           $1.82       $1.18            $1.92      $1.20

Holders

         As of December 31, 2003, there were 316 record holders of the Company's
common stock and approximately 784 additional beneficial holders.

Dividends

         We have never paid any dividends, and we do not anticipate any stock or
cash dividends on our common stock in the foreseeable future.

Recent Sales of Unregistered Securities

         On October 1, 2003,  the  Company  issued  three-  year  warrants to R.
Castro and  Associates,  PLLC to purchase 30,000 shares of common stock at $1.25
per share in exchange  for  advisory  and  consulting  services  provided by Mr.
Rafael Castro, of R. Castro and Associates, to the Company.

         On October 29, 2003, the Company  issued a 7% Convertible  Term Note to
Laurus Master Fund,  Ltd. in the principal  amount of  $4,500,000.  Such note is
convertible  by the holder into  common  stock at the fixed  conversion  rate of
$1.00 per share.  In  addition,  such  certain  conditions,  the  principal  and
interest payable under the Note may be paid by the Company in additional  shares
of common stock,  and up to 6,000,000  shares of common stock that may be issued
by the Company upon such  conversion  or in lieu of debt  reserves  payments are
being registered hereunder.  The Company also issued a Stock Purchase Warrant to
purchase  450,000 shares at $1.25 per share,  450,000 shares at $1.50 per share,
and 450,000 shares at $1.75 per share.

         On October 30, 2003, the Company issued  3,000,000  shares at $1.00 per
share to 13 institutional and accredited  investors in a private  placement.  In
addition,  the Company  issued  warrants to purchase  1,500,000  shares of which
750,000 shares are  exercisable  at $1.00 and 750,000 shares are  exercisable at
$1.35.

         On December  30, 2003,  the Company  closed a  transaction  with Laurus
Master Fund,  Ltd. to obtain a US $3.5 million debt facility  (the  "Facility").
The initial advance under the Facility was $3,133,197,  of which  $2,676,300 was
used to repay the Company's factoring  arrangement with Venture Finance, PLC and


                                       17
<PAGE>

the  balance  was  applied to working  capital.  The  Facility  consists  of two
promissory notes, a $1.0 million Secured Convertible Minimum Borrowing Note, and
a $2.5  million  Secured  Revolving  Note.  Such Notes are secured by all of the
Company's  assets  previously  pledged to Laurus  under the $4.5 million loan on
October  29,  2003,  and  additionally  by the  Company's  accounts  receivables
released by Venture  Finance.  Both Notes bear  interest at the greater of prime
plus 3% or 7% and are  convertible  into the  Company's  common stock at a fixed
conversion   price  of  $1.47  per  share.  In  addition,   subject  to  certain
limitations,  the Secured Convertible Minimum Borrowing Note permits payments to
be made in the Company's common stock,  and we have registered  3,150,000 shares
hereunder to register  shares issued upon  conversion of the Notes or in lieu of
Note payments.  As additional  consideration for the loan, we issued to Laurus a
five year Common Stock  Purchase  Warrant to purchase  660,000  shares of common
stock at exercise prices of $1.84 for 220,000 shares,  $2.20 for 220,000 shares,
and $2.57 for 220,000 shares.

ITEM 6. .MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
         ---------------------------------------------------------

Forward Looking Statements

         Statements  that are not  historical  facts included in this report are
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995 that involve risks and  uncertainties  that could
cause actual results to differ from projected  results.  Such statements address
activities, events or developments that the Company expects, believes, projects,
intends or  anticipates  will or may  occur,  including  such  matters as future
capital, business strategies,  expansion and growth of the Company's operations,
cash flow,  marketing of products and services,  and development of new products
and  services.  Factors  that could cause  actual  results to differ  materially
("Cautionary  Disclosures")  are described  throughout  this report.  Cautionary
Disclosures include, among others: general economic conditions,  the markets for
and market price of the Company's  products and services,  the Company's ability
to find,  acquire,  market,  develop and produce new products and services,  the
strength and  financial  resources of the Company's  competitors,  the Company's
ability to find and retain skilled personnel, labor relations,  availability and
cost of material and equipment, the results of financing efforts, and regulatory
developments  and compliance.  All written and oral  forward-looking  statements
attributable  to the Company are  expressly  qualified in their  entirety by the
Cautionary Disclosures. The Company disclaims any obligation to update or revise
any  forward-looking  statement  to reflect  events or  circumstances  occurring
hereafter or to reflect the occurrence of anticipated or unanticipated events.

GENERAL

         Inyx,  Inc.   ("Inyx"  or  the  "Company")   through  its  wholly-owned
subsidiaries,  Inyx  Pharma  Limited  and  Inyx  Canada,  Inc.,  is an  emerging
specialty  pharmaceutical company. We focus our expertise on the development and
manufacturing   of   prescription   and    over-the-counter    ("OTC")   aerosol
pharmaceutical  products and drug  delivery  technologies  for the  treatment of
respiratory,  allergy,  dermatological and topical  conditions.  Our client base
primarily  consists of blue-chip ethical  pharmaceutical  corporations,  branded
generic pharmaceutical  distributors,  and biotechnology companies.  Although we
perform some sales and marketing functions, we have limited product distribution
capabilities  and  so we  depend  on our  customers'  distribution  channels  or
strategic partners to market and sell the pharmaceutical products we develop and
manufacture for them.

         We  intend  to  expand  our  product   development  and   manufacturing
activities into our own lines of prescription and OTC  pharmaceutical  products,
but as of December 31, 2003, we had not yet  commercialized  or marketed our own
products or drug delivery applications.  Additionally, a material element of our
growth  strategy  is  to  expand  our  existing   business   through   strategic
acquisitions of pharmaceutical products and drug delivery technologies which are
complementary with our expertise in the aerosol pharmaceutical sector.

         Our Company was incorporated  under the laws of Nevada in March 2000 as
Doblique,  Inc.  In July  2002,  we  became a  publicly-traded  company  when we
completed a registration  statement for the sale by our principal stockholder of
2,450,000  shares of common  stock.  Since  July  2002,  we have  filed  annual,
quarterly  and periodic  reports  with the  Securities  and Exchange  Commission
pursuant to Section 15(d) of the Securities Exchange Act of 1934.

         Prior to March  2003,  we were in the  business  of owning  and  racing
thoroughbred  horses at various major horse racing tracks  throughout the United
States.  In March  2003,  the assets of that  operation  were sold for cash to a
third party,  and the Company  discontinued  the business of breeding and racing


                                       18
<PAGE>

thoroughbred  race horses.  On March 26, 2003, we announced that our controlling
stockholder  had accepted an  unsolicited  offer to sell a controlling  block of
2,250,000  shares  of  common  stock,  representing  approximately  45%  of  the
Company's then issued and outstanding  shares,  to Medira  Investments,  LLC. At
that time, the Company also announced that it would pursue strategic  investment
opportunities  in a number of sectors within the  pharmaceutical,  biotechnology
and medical devices industries.

         During   2003,   we  operated  in  one   business   segment,   contract
manufacturing of  pharmaceutical  products.  All other business  activities were
deemed to be in support of our primary  purpose.  Segmentation  of our  business
will occur as we move into additional activities discussed herein.

Currency Exchange Rates and Hedging Activities

         The functional  currency of our Company's U.K.  subsidiary is the Great
Britain Pound  ((pound)).  Our Company's  financial  statements  are reported in
United States  Dollars ($) and are  translated in accordance  with  Statement of
Financial  Accounting  Standards No. 52, which  requires  that foreign  currency
assets and  liabilities be translated  using the exchange rates in effect at the
balance sheet date. The exchange rate between the two currencies at December 31,
2003 was  (pound)1 = $1.78 and the  average  for the period  from April 28, 2003
through  December  31,  2003 was  $1.67.  The  effects  of  unrealized  exchange
fluctuations on translating foreign currency assets and liabilities into Dollars
are accumulated as a cumulative  translation adjustment in stockholders' equity.
Realized gains and losses from foreign currency transactions are included in the
results of operation  for the period.  Fluctuations  arising from  inter-company
transactions  are of long  term in  nature  and are  accumulated  as  cumulative
translation adjustments.

         As of December  31,  2003,  we had not  utilized  any  currency-hedging
programs.  However,  as we intend to  continue  to  utilize  US-based  financing
sources, and as the significant majority of our revenues are in Pounds Sterling,
we  are  currently  in  the  process  of   establishing  a  commercial   banking
relationship with a major financial institution,  that will also provide us with
currency-hedging   advisory  including  our  participation  in  currency-forward
contracts for the purpose of mitigating foreign exchange fluctuations.

Acquisition of Inyx Pharma

         On April 28, 2003, we acquired all of the outstanding  common shares of
Inyx Pharma in a transaction  accounted for as a reverse acquisition of Doblique
by Inyx  Pharma,  where we  exchanged  16 million  of our common  shares for all
outstanding and issued shares of Inyx Pharma.  As a result of such  transaction,
the   stockholders   of  Inyx  Pharma  became  our   controlling  and  principal
stockholders,  owning  approximately  64% of our outstanding  stock at the time;
Inyx Pharma became our wholly-owned  subsidiary;  and on May 6, 2003, we changed
our  name to Inyx,  Inc.  Prior to this  reverse  acquisition,  we were a public
company with nominal  operations  and assets.  As a result of the  accounting of
this transaction as a reverse  acquisition,  and for comparative  purposes only,
the historical  financial  statements of Inyx Pharma are presented herein as our
own historical statements.

         Prior to our reverse  acquisition  with Inyx Pharma,  on March 7, 2003,
that  company  had  acquired  the  majority  of  the  business  assets  of  Miza
Pharmaceuticals  (UK) Limited ("Miza UK") from a  court-appointed  Administrator
(the U.K.  equivalent  of a Chapter 11  trustee).  Through the Miza UK purchase,
Inyx Pharma had acquired one aerosol pharmaceutical manufacturing site (the Miza
UK Aerosols Division) and a pharmaceutical  product  development  operation (the
Miza UK Development Division). In connection with this acquisition,  Inyx Pharma
issued approximately $7.1 million in debt to effect the transaction and incurred
an  additional  $1.2  million in  acquisition  costs.  Prior to the sale to Inyx
Pharma, Miza UK's operation also included another  pharmaceutical  manufacturing
operation (the Miza UK Biopharma Division). The business assets of the Biopharma
Division were excluded from the Inyx Pharma purchase.

         As the Biopharma business was part of Miza UK in 2002, but not acquired
by Inyx Pharma on March 7, 2003,  its results of  operation  are included in the
2002  audited  financial  statements  of Miza UK but not in Inyx  Pharma's  2003
financial statements. In a separate column within our financial statements,  the
operations of the Biopharma  Division,  for the period prior to the merger,  are
shown on a stand-alone  basis.  The results of operations have been presented in
this  manner  to show  the Miza UK  operation  with and  without  the  Biopharma
Division in comparing its results of operations,  as the predecessor company, to
our  results  of  operations.  In 2002,  Miza UK's  Biopharma  division  had net
revenues of approximately $3.5 million,  with costs of revenue of $3.45 million,
general and administrative  expenses of $394,000, and sales expenses of $13,000,


                                       19
<PAGE>

resulting in a net loss of  approximately  $5 million,  consisting  of a loss of
approximately $500,000 and one time expenses and costs of $4.5 million it had as
part of the Administration process that Miza UK went through.

         Additionally,  the  goodwill  originally  reflected  in  our  Company's
financial  statements  as a result of the Inyx  Pharma  transaction  amounted to
$10.3 million and resulted from Inyx Pharma's acquisition of the business assets
of Miza UK (goodwill  amounting to approximately $1.9 million) plus the goodwill
attributable to our reverse acquisition with Inyx Pharma through the issuance of
16  million  of our  Company's  common  shares  to  Inyx  Pharma's  shareholders
(goodwill amounting to approximately $8.4 million).

         The total  goodwill  therefore  recorded,  as a result  of our  reverse
acquisition  of Inyx Pharma,  represented  the excess of the purchase price over
net assets acquired of $7.1 million plus acquisition costs of approximately $3.2
million.  We initially  accounted for these  acquisitions  as purchases with the
recognition  of goodwill  since we viewed the  transactions  between Miza UK and
Inyx Pharma as a sale of assets between  unrelated  parties.  We also considered
the sale of  Doblique's  assets,  namely its  racehorses,  prior to our  reverse
merger with Inyx Pharma as a normal  operating  decision which did not terminate
Doblique's  business   activities.   After  further  review  of  the  facts  and
circumstances  regarding these transactions,  we have concluded that Inyx Pharma
was  controlled  by parties  affiliated  to our Company and that the sale of our
racehorses,  prior to our reverse  merger with Inyx Pharma,  did  terminate  our
operating  activities at the time,  rendering  Doblique a  non-operating  public
shell corporation. As a consequence, we have reversed the goodwill $10.3 million
of recorded goodwill arising from the noted transactions,  and restated the loss
and reduced the additional  paid-in  capital  presented in previously  published
financial  statements for the quarterly periods ended June 30, and September 30,
2003.  Both noted  transactions  are  therefore  viewed as capital  transactions
recorded at the carrying value of the underlying net assets acquired. Our change
in the  accounting for these  transactions  will also result in a fourth quarter
adjustment based upon management's  decision to account  conservatively for this
transaction,  and in a restatement of our financial statements for the quarterly
periods  ended June 30, and  September  30,  2003 to  eliminate  the  originally
recorded goodwill.

Pro Forma Results

         Our pro forma  results for the year ended  December 31,  2003,  include
approximately   two  months  of   operations   for  Miza  UK  while  it  was  in
Administration  (January  1 to March  6,  2003),  approximately  two  months  of
operations  for Inyx Pharma,  after it purchased  the assets of Miza UK from the
Administrator  (March 7 to April 28,  2003),  and eight months of  operations of
Inyx Pharma as a wholly-owned subsidiary of Inyx, Inc. (April 28 to December 31,
2003).

         The  Biopharma  Division  was not  acquired  by Inyx Pharma on March 7,
2003,  but its  results  of  operation  are  still  included  in the  pro  forma
comparative  discussion for the year ended  December,  2003 as that division was
part of the Miza UK until  its  acquisition  by Inyx  Pharma.  As the  Biopharma
Division was also in Administration, its business activities were diminished for
the period of January 1, 2003 to March 6, 2003.

         For the periods ended December 31, 2003 and 2002,  operations  relating
to the  business  of the  former  Doblique,  Inc.,  now  Inyx,  Inc.,  have been
eliminated  from these pro forma  statements as if the divestiture of assets and
liabilities and the discontinuance of related operations  occurred on January 1,
2003 and January 1, 2002, respectively.

Consolidated Results

         The  accompanying   consolidated  financial  information  includes  the
accounts of Inyx, Inc. and its wholly-owned  subsidiaries,  Inyx Pharma Limited,
incorporated under the laws of England and Wales; Inyx Canada, Inc., formed as a
federally  incorporated Canadian  corporation;  and Inyx Realty, Inc., a Florida
corporation. All inter-company accounts and transactions have been eliminated in
consolidation







                                       20
<PAGE>
<TABLE>
<CAPTION>

                         SELECTED FINANCIAL INFORMATION

 (Tabular amounts expressed in thousands of U.S. dollars, except per share amounts)


                                                 Year Ended        Year Ended
                                               December 31,        December 31,
                                               ------------        ------------

                                                    2003(1)      2002       2002(2)
                                                   --------    --------    --------
<S>                                                <C>         <C>         <C>
Statement of Operations Data

Net revenues                                       $ 13,099    $ 24,644    $ 21,184
Gross profit                                          2,465       3,872
                                                                              3,862
Total operating expenses                              7,124       8,483
                                                                              6,993
Loss from operations before other expenses           (4,659)     (4,611)     (3,131)
Other expenses                                       (9,110)    (26,729)    (25,512)
Loss from discontinued operations                       (25)       --          --
Net loss from continuing operations                 (12,500)    (30,998)    (28,643)
Loss  per  share  of  common  stock  outstanding
     basic and fully diluted:                      $  (0.55)   $  (1.94)   $  (1.79)
</TABLE>
----------------------
(1) Represents eight months of operations, commencing on April 28, 2003.

(2) Actual results of operations adjusted to remove the results of the Biopharma
division which was not part of Inyx Pharma's  acquisition of the business assets
of Miza UK

                                                Year Ended
                                         December 31, 2003
                                         -----------------
Balance Sheet Data

        Total assets                        $       13,751
        Working capital (deficit)                   (1,421)
        Total liabilities                           15,229
        Stockholders' deficit                       (1,478)

Pro Forma Condensed Combining Summary Financial Information

<TABLE>
<CAPTION>

                                     Pro Forma Year Ended           Actual Year Ended
                                         December 31,                  December 31,
                                  --------------------------    --------------------------

                                    2003(1)        2003(2)         2002(3)       2002(4)
                                  -----------    -----------    -----------    -----------
Statement of Operations Data          With         Without          With         Without
                                   Biopharma      Biopharma      Biopharma      Biopharma
<S>                               <C>            <C>            <C>            <C>
Net revenues                      $    15,829    $    15,495    $    24,644    $    21,184
Gross profit                            2,926          2,985          3,872          3,862
Loss  from operations before           (5,045)        (5,215)        (4,611)        (3,131)
other expenses
Net loss                              (13,117)       (13,490)       (30,988)       (28,643)
</TABLE>

(1) The condensed pro forma  consolidated  statements of operations for the year
ended December 31, 2003 are based on the assumption that the acquisition of Inyx
Pharma  Limited took place as of January 1, 2003 and include the  operations  of
Miza  Pharmaceuticals  (UK) Limited ("Miza UK"), the  predecessor to Inyx Pharma
Limited, for the period January 1, 2003 to March 6, 2003 and Inyx Pharma Limited
for the period March 7, 2003 to December 31, 2003. On March 7, 2003, Inyx Pharma


                                       21
<PAGE>

Limited  acquired  the  operating  assets  of Miza  UK  from a  court  appointed
Administrator  and continued the  operations of Miza UK in unbroken  succession.
This condensed combining pro forma statement of operations for 2003 includes the
results of the  Biopharma  division,  although this division was not acquired by
Inyx Pharma.

(2) For the pro forma year ended December 31, 2003, the results of operations of
the Biopharma division, which was not acquired by Inyx Pharma in its purchase of
the business assets of Miza UK, have been eliminated for comparative purposes.

(3)  For  the  year  ended  December  31,  2002,  the  operations  of Miza UK as
predecessor to Inyx Pharma Limited are presented for comparative analysis.  This
condensed  actual  statement of operations  for 2002 includes the results of the
Biopharma  Division.  Although the  Biopharma  Division was not acquired by Inyx
Pharma,  this division was part of the Miza UK operation and contributed to Miza
UK's overall results.

(4) For  comparative  analysis,  for the  year  ended  December  31,  2002,  the
operations of Miza UK as predecessor to Inyx Pharma Limited are presented  after
the elimination of the results of Miza UK's Biopharma division.

RESULTS OF OPERATIONS

         The financial  information set forth in the following discussion should
be read in  conjunction  with,  and  qualified in its entirety by, the financial
statements of our Company presented elsewhere herein.

Year Ended December 31, 2003

         Inyx Actual  Results of Operations for the Year Ended December 31, 2003
(eight months of  operations)  Compared to Actual  Results of Operations for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         The  following  discussion  of our results of  operations  for the year
(eight months of  operations)  ended December 31, 2003 focuses on the operations
of our wholly  owned  subsidiary,  Inyx  Pharma,  which we acquired on April 28,
2003.  Prior to our  acquisition  of Inyx  Pharma,  we had  divested  all  prior
operations of our thoroughbred  horse business.  Since then, all of our revenues
have been generated by Inyx Pharma. Consequently,  our results of operations for
the year ending  December 31, 2003 consist of eight months of actual  operations
commencing on April 28, 2003.

         Because  the  Biopharma  Division  was  part of Miza UK in 2002 but not
acquired by Inyx Pharma on March 7, 2003,  its results of operation are included
in the  2002  financial  statements  of Miza UK but  not in Inyx  Pharma's  2003
financial statements. Therefore, for comparative purposes, we have presented the
2002 actual  results of  operations  for Miza UK including  Miza UK's  Biopharma
Division and also,  separately  excluded the 2002 results of  operations  of the
Biopharma Division,  as this division is not related to the Company's operations
in 2003. The results of operations for those Miza UK business assets acquired by
Inyx Pharma are outlined by the caption "Miza UK excluding Biopharma".

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         In the pro forma financial statements,  for the comparative years ended
December  31,  2003 and  2002,  respectively,  the  results  of  operations  are
presented as if our  acquisition of Inyx Pharma had occurred on January 1, 2003.
The business assets of the Biopharma Division were excluded from the Inyx Pharma
purchase of Miza UK's assets, but for comparative purposes, and to show the full
historical results of the predecessor  company,  the results of operation of the
Biopharma  Division are included in our 2003 pro forma  results as that division
was part of the Miza UK until its acquisition by Inyx Pharma. Our 2003 pro forma
results of operation  for the year ended  December 31, 2003 are then compared to
the actual  results of Miza UK including  Biopharma for the year ended  December
31, 2002.

NET REVENUES

         Our revenues are derived from pharmaceutical  manufacturing and product
formulation and development  outsourcing services,  including product stability,


                                       22
<PAGE>

commercial  scale-up,  and validation  and  regulatory  support for our clients'
products. Future contract revenues are dependant upon our clients maintaining or
obtaining regulatory approval for the sale of their products in their designated
markets.

         Although we do not  currently  derive any of our revenues from the sale
of our own  products,  we believe  that we can increase our revenues and achieve
greater  margins  through  the  addition  of our own  product  lines in selected
pharmaceutical  market sectors,  with marketing to be conducted  through certain
strategic customers. We expect that these types of revenues would include direct
sales,  royalty  payments and licensing  fees of our planned  products.  At this
time, we have not commercialized any of our own proprietary products and we have
no agreements for such fees or distribution agreements finalized.

Inyx Actual Results of Operations for the Year Ended December 31, 2003 (eight
months of operations) Compared to Actual Results of Operations for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Net  revenues for the year ended  December 31, 2003 were  approximately
$13.1  million.  These  revenues  are  attributed  solely to the newly  acquired
business of Inyx Pharma and  represent  eight months of business  activity  from
April 28, 2003, the date of the  acquisition of Inyx Pharma,  to December 31. In
comparison,  net  revenues for the year ended  December  31, 2002,  amounting to
twelve months of operations,  were  approximately  $24.6  million.  Net revenues
decreased by $11.5 million or approximately  47% for the year ended December 31,
2003 as compared to the previous  year  primarily  as a result of the  Biopharma
Division  being  excluded from the Inyx Pharma  purchase of the Miza UK business
assets,  and the shorter operating period that we had as a company in 2003. Inyx
had  eight  months  of  operations  during  2003 as  compared  to 12  months  of
operations during 2002 as Miza UK.

         In 2002, Miza UK's Biopharma division had net revenues of approximately
$3.5 million.  Therefore,  net revenues for Miza UK excluding  Biopharma for the
year ended December 31, 2002 were approximately $21.1 million.

         For the year ended  December  31,  2003,  our three  largest  customers
accounted for  approximately  $5.5 million or approximately 42% of our total net
revenues.  During the year ended December 31, 2003,  these three  customers were
the Merck Generics group of companies, accounting for approximately $2.5 million
in  net  revenues  or  approximately  19%  of  total  revenues;  Genpharm  Inc.,
accounting for approximately $1.9 million in net revenues or approximately 14.5%
of total revenues;  and SSL International Plc, accounting for approximately $1.1
million in net revenue or approximately 8.5% of total revenues.  The loss of any
one of our top  three  clients  would  have a  material  adverse  affect  on our
revenues  and  profitability  opportunities.  As  part of our  strategic  growth
objectives,  we are  planning  to broaden  our  customer  base and  distribution
channels to mitigate the risk of our economic dependence on any one client.

         In comparison,  for the year ended December 31, 2002, the three largest
customers of Miza UK accounted for approximately  $12.5 million or approximately
51% of total net  revenues.  For the year ended  December  31,  2002,  the three
largest  customers were the Merck  Generics  group of Companies,  accounting for
approximately  $8.7  million  in net  revenues  or  approximately  35% of  total
revenues; Connetics Corporation,  accounting for $2.8 million in net revenues or
approximately  11.5% of  total  revenues;  and  Celltech  Pharmaceuticals  Ltd.,
accounting for approximately $1 million in net revenues or approximately 4.5% of
total  revenues.  Net  revenues  for  these  three  largest  customers  were all
generated at Miza UK excluding Biopharma.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Our pro forma net revenues for the year ended December 31, 2003,  which
include the net revenues of the Biopharma  division for the period of January 1,
2003  to  March  6,  2003  were  approximately  $15.8  million  as  compared  to
approximately  $24.6  million in net  revenues  for the year ended  December 31,
2002.  Pro forma  net  revenues  decreased  by  approximately  $8.8  million  or
approximately  35% as compared to the net  revenues for the  comparable  year in
2002.

         For the pro forma year ended  December  31,  2003,  our  largest  three
customers  accounted for  approximately $ 7 million or approximately  44% of pro


                                       23
<PAGE>

forma net revenues as compared to the three  largest  customers  accounting  for
approximately  $12.5 million or approximately 50% of total pro forma net revenue
for the year ended  December 31, 2002. For the pro forma year ended December 31,
2003,  our three largest  customers  were the Merck Generics group of companies,
accounting for  approximately  $3.5 million in net revenues or approximately 22%
of total revenues;  Genpharm Inc.,  accounting for approximately $2.2 million in
net revenues or approximately 14% of total revenues;  and SSL International Plc,
accounting for approximately  $1.3 million in net revenue or approximately 8% of
total revenues.

         For the pro forma year ended December 31, 2003, the Biopharma  Division
had net revenues of approximately $334,000 or approximately 2% of total revenues
for the pro forma year.  None of the revenues for our three  largest  customers,
during the pro forma year ended  December 31, 2003,  were  generated at the Miza
Biopharma Division.

Discussion and Analysis Regarding our Net Revenues

         The major factors  contributing to the decrease in net revenues for the
comparative periods are the phase-out of chlorofluorocarbon  (CFC) based aerosol
respiratory inhalers,  the loss of a major client due to a transition to another
production  facility,  and the loss of a number of customer product  development
and  commercialization  projects due to the business  uncertainty created by the
Administration process that our predecessor company was involved in.

         The first major  reason for the  decrease in net  revenues  between the
comparative  periods is the phase out of our  chlorofluorocarbon  (CFC)  aerosol
respiratory  inhalers (MDIs)  production for a number of our clients,  including
our largest customer,  the Merck Generics group of companies.  This reduction in
production  is in line  with the  Montreal  Protocol  treaty  to  phase  out the
consumption and production of ozone-depleting  CFC products around the globe. In
2003,  a number  of  countries  where our  clients  distribute  their  CFC-based
pharmaceutical  products  banned such products in  accordance  with the Montreal
Protocol.  For the year ended December 31, 2002, CFC-based  respiratory inhalers
accounted for  approximately $5 million in net revenues or approximately  20% of
total  revenues.  In comparison,  for the pro forma year ended December 31, 2003
such  products  accounted  for only  approximately  $500,000 in net  revenues or
approximately 3% of our total net revenues.  Consequently,  the phase-out of our
European and Canadian  customers'  CFC  production  requirements  resulted in an
approximately $4.5 million decrease of net revenues for the comparative periods.

         Presently,  our CFC  production  line is  operating  at less  than  two
percent  capacity  utilization.  As we  continue to develop  greater  commercial
opportunities in the United States and Latin American  markets,  where CFC-based
respiratory inhalers are still utilized,  we plan to increase the utilization of
this production line. As a result of these marketing  initiatives and commercial
opportunities  for CFC-based  inhalers,  we expect to be increasingly  utilizing
this  manufacturing  line, as we increase our customer base in these  geographic
markets.  We are also  presently  assisting  a number  of our  clients  with the
transition   to  non-CFC   based   respiratory   inhalers  and  have   commenced
manufacturing  such inhalers at our Inyx Pharma production  facility.  We expect
revenue  levels to  gradually  increase in this area as our clients  continue to
receive  regulatory  approvals for their  replacement  products over the next 24
months.

         The second major reason for the decrease in net revenue  levels between
the pro forma year ended  December 31, 2003 and the year ended December 31, 2002
is the significant  decrease in revenues from one of the  predecessor  company's
largest clients, Connetics Corporation,  which moved its production requirements
for hydrocarbon aerosols to a manufacturing facility in the United States due to
strategic reasons. For the year ended December 31, 2002, Connetics accounted for
approximately $2.8 million or approximately 11% of total revenues as compared to
only approximately $333,000 in net revenues or 2% of total revenues for the year
ended December 31, 2003.  Consequently,  the  significant  decrease of Connetics
contract  revenue  resulted in an  approximately  $2.5  million  decrease of net
revenues  for the  comparative  periods.  We believe  that with our  significant
expertise  and  product  development  and  manufacturing  capabilities  in  this
pharmaceutical  manufacturing  sector,  we will  continue to replace this client
with other  customers that require  hydrocarbon  aerosol  products as the use of
non-CFC based pharmaceutical  aerosol technology continues to grow. During 2003,
our largest  customer in this area was SSL  International  Plc,  accounting  for
approximately  $1.1  million  in net  revenue  or  approximately  8.5% of  total
revenues as compared to approximately  $587,000 or  approximately  2.4% of total
revenues in 2002.


                                       24
<PAGE>

         The third major reason for the decrease in net revenue  levels  between
the pro forma year ended  December 31, 2003 and the year ended December 31, 2002
is attributed to the fact that Inyx Pharma's predecessor  company,  Miza UK, was
acquired out of  Administration  on March 7, 2003.  By the time that the Miza UK
business  assets were acquired by Inyx Pharma,  the Miza UK business had been in
Administration  for a period of seven months commencing on September 4, 2002. As
the  Administration  period went on, there were a number of business and revenue
interruptions  due to  product  release  delays  and  lack of  components.  This
adversely  affected  customer  confidence  as  clients  either  halted  on-going
production or development projects or did not initiate new commercial activities
due to the business uncertainties of Administration. Consequently, although most
of our customer base has been  retained,  our level of revenues has not yet been
restored  to  the  levels  experienced  by  the  predecessor  company  prior  to
Administration.  It has taken time  during  2003 to  start-up a number of client
projects  due  to  the  required  regulatory   approvals,   and  the  production
commissioning   and  validation   processes   involved  in  the   pharmaceutical
manufacturing  industry.  We believe  that as we continue  to meet our  clients'
product  development,  commercialization  and  manufacturing  requirements,  and
invest to  continually  improve our  production  facilities'  manufacturing  and
quality  systems,  we can restore  customer  confidence  and restore  previously
experienced revenue levels.

         We have  been  actively  marketing  to our  customer  base  and  expect
revenues from  manufacturing  and development  revenues to be restored to levels
experienced  by the  business  assets  acquired  by  Inyx  Pharma  prior  to the
Administration   period.   Excluding   the   CFC-metered   dose  inhaler   (MDI)
manufacturing line, which is being phased out due to environmental requirements,
our  manufacturing  operations  were  operating  at an average 27% of  available
capacity. Revenues and, therefore capacity utilization, are expected to increase
as new customer  contracts and purchase  orders are obtained.  Additionally,  we
expect to be able to increase our  manufacturing  activities as  customers'  raw
material and component  inventory  requirements  are restored to normal business
operational  levels.  Also, we believe our  expertise in converting  from CFC to
CFC-free    aerosol    pharmaceuticals,    particularly    the   production   of
hydrolfuoroalkane  (HFA)  non-ozone-depleting  aerosol pharmaceutical  products,
should generate  increasing  business as the Montreal  Protocol  continues to be
implemented around the world.

COST OF GOODS SOLD

         Cost of goods sold is associated  with  manufacturing  and  development
revenues and includes materials, labor, factory overheads and technical affairs,
which include quality control and quality assurance regulatory support.

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Cost  of  goods  sold  amounted  to  approximately   $10.6  million  or
approximately  81% of net revenues  for the year ended  December 31, 2003 (eight
months of operations).  In comparison, the cost of goods sold for the year ended
December 31, 2002,  amounting to twelve months of operations as Miza UK, totaled
approximately $20.8 million or approximately 84% of net revenues.

         In relation to Miza UK's  Biopharma  Division  only, for the year ended
December 31, 2002, the cost of goods sold was $3.45 million. Therefore, the cost
of goods sold for Miza UK excluding  Biopharma  for the year ended  December 31,
2002 was $17.3 million or approximately  82% of  approximately  $21.1 million in
net revenues.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro forma  cost of goods  sold for the year  ended  December  31,  2003
amounted to approximately  $12.9 million or  approximately  82% of net pro forma
revenues  of $15.8  million  as  compared  to  actual  costs  of  goods  sold of
approximately $20.8 million or approximately 84% of actual net revenues of $24.6
million for the year ended December 31, 2002.

         For  the  pro  forma  year  ended  December  31,  2003,  the  Biopharma
Division's  cost of goods sold amounted to $393,000 or  approximately  3% of the
Company's  total  costs  of  goods  sold  for the pro  forma  year.  During  the


                                       25
<PAGE>

administration  process,  the Biopharma Division's business activity was minimal
and not sufficient to recover overhead and manufacturing costs. As a result, for
the pro forma year ended  December 31, 2003,  Biopharma's  cost of goods sold of
$393,000 were greater than its revenues of approximately $334,000.

Discussion and Analysis Regarding Cost of Goods Sold

         The cost of goods sold as a percentage of revenues is consistently high
in the comparative periods due to the following factors:

         (1)  On  September  4,  2002,  the  predecessor   company  entered  the
Administration  period,  which  adversely  affected the overall sales levels and
reduced  operations  from an average of 50% to an average  range of 25% - 30% of
total  manufacturing  capacity,  thereby reducing fixed overhead cost absorption
and  concomitantly  increasing the cost of goods sold.  Since our acquisition of
Inyx Pharma, we have enhanced our business  development and marketing activities
in order to restore customer  confidence that was adversely affected as a result
of the Administration  period which created shipping delays to our customers due
to the lack of components  and supplies.  We expect our cost of goods sold to be
reduced  as more  overhead  costs  are  absorbed  with  increased  manufacturing
capacity  utilization,  as more  customer  contracts  and  purchase  orders  are
obtained.

         (2) This reduced manufacturing  capacity utilization has continued into
2003 as it has taken us time during 2003 to start-up a number of client projects
due to the required regulatory approvals,  and the production  commissioning and
validation processes involved in the pharmaceutical  manufacturing  industry. We
expect our cost of goods sold to be reduced as more of these projects are ramped
up to  full  production.  With  more  volume  throughput  at  our  manufacturing
facility,   we  can  absorb  more  overhead  costs  and  therefore   reduce  our
manufacturing costs.

         (3) In addition,  due to the previously noted Montreal Protocol Treaty,
during  2002 and 2003,  we have be phasing  out the  CFC-based  MDI  respiratory
product  line,  which has  gradually  reduced our total  manufacturing  capacity
utilization,  and therefore reduced overhead  absorption rates and increased our
cost of goods  sold..  As a result of the CFC  phase-out,  the MDI  line,  which
accounted for approximately 20% of overall  production in 2002, now accounts for
only  approximately  2% of overall  production.  Additionally,  CFC  respiratory
inhaler  products  are  approximately  20% lower in  material  costs  than their
non-CFC equivalents.  As we are now focused on phasing in the non-CFC version of
these products,  primarily  HFA-based  respiratory  MDIs, our cost of goods sold
have  marginally  increased  as a result  of the  increased  production  of such
inhalers for our customers.

         Even though we have  experienced  moderate raw material and labor price
increases since our reverse acquisition of Inyx Pharma, due to inflation and new
vendor  relationships,  we  expect  the  cost of  goods  sold  percentage  to be
maintained or reduced as more customer  contracts are initiated or renewed,  and
our  capacity  utilization  is  enhanced.  With  improved  fixed  overhead  cost
absorption, we expect to improve our profit margins.

         However,  we also expect to start  incurring  research and  development
costs as part of our cost of goods  sold once we pursue the  development  of our
own proprietary  pharmaceutical  products. Such costs would include intellectual
property  development costs and salaries for the required  additional  technical
staff. We expect that such research and  development  costs would increase costs
in the short term,  but would be offset by the higher  profit  margins long term
for our own products as compared to the margins for our  contract  manufacturing
services.

GROSS PROFIT

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Gross profit amounted to approximately  $2.5 million on net revenues of
approximately  $13.1 million or  approximately  19% of net revenues for the year
ended  December  31, 2003 (eight  months of  operations)  as compared to a gross
profit of  approximately  $3.9  million  on net  revenues  of $24.6  million  or
approximately 16% of net revenues for the year ended December 31, 2002.


                                       26
<PAGE>

         For the year ended December 31, 2002, the Biopharma division on its own
generated  a  gross  profit  of   approximately   $50,000  on  net  revenues  of
approximately $3.5 million,  or approximately 1% of Miza UK's overall profit for
the reporting period.  The gross profit for Miza UK excluding  Biopharma for the
year ended December 31, 2002 was  approximately  $3.85 million or  approximately
18% of net revenues.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro forma gross profit  amounted to  approximately  $2.9 million on net
revenues of approximately $15.8 million or approximately 18% of net revenues for
the year ended December 31, 2003 as compared to a gross profit of  approximately
$3.9 million or  approximately  18% of net revenues for the year ended  December
31, 2002.

         For the pro  forma  period  ended  December  31,  2003,  the  Biopharma
Division lost $59,000. As the Biopharma Division's business activity was minimal
and not  sufficient  to recover  overhead  and  manufacturing  costs  during the
Administration process,  Biopharma had a cost of goods sold of $393,000 based on
net revenues of $334,000 for the pro forma period.

Discussion and Analysis Regarding Gross Profit

         By the time that Miza UK was  acquired by Inyx Pharma on March 7, 2003,
the Miza UK business  had been in  Administration  for a period of seven  months
commencing on September 4, 2002. As a result of the administration  process, our
predecessor  company  experienced a significant  decline in profitability due to
periods of business interruption caused by the lack of materials, components and
supplies  to  manufacture  finished  goods for  customers,  as well as a lack of
customer marketing and sales efforts.

         Additionally,   research  and  development   contract   customers  were
unwilling to continue  development  projects during the  Administration  period.
Customer product  development  projects are usually initiated to provide product
manufacturing and regulatory support.  This type of service usually spans over a
period  of six  months  to two  years,  but due to the  uncertainty  during  the
administration  period,  most  clients in the  latter  part of 2002 and into the
first  quarter of 2003 either  stopped the progress of on-going  projects or did
not  initiate new product  development  projects.  We have  already  restarted a
number of such development  projects,  and we expect that as we continue to meet
our  clients'   product   development,   commercialization   and   manufacturing
requirements  we can continue to build  customer  confidence in order to improve
our profitability in this area.

         Our  research  and  development  contract  services  have higher  gross
margins than our contract manufacturing services because we only have to account
for our own labor support costs while charging out such professional services we
provide to our  customers at agreed  higher  rates.  We  therefore  expect gross
profitability  levels to increase as more  customer  contracts  are initiated or
renewed  for  our  contract   development   services,   particularly  for  those
development  products  which  allow  us  to  increase  the  utilization  of  our
production capacity by commercializing such products.

         We believe that we can also improve our gross  profit  margins  through
the addition of our own pharmaceutical product lines, which offer greater profit
margins than those provided by contract manufacturing  services.  Although we do
not currently derive any revenues from the sale of our own products,  we believe
that our first proprietary product may be ready for commercial  marketing by the
end of 2004.

GENERAL AND ADMINISTRATIVE EXPENSES

         Our General and  Administrative  expenses  include  corporate  overhead
costs,  administrative  support,  and business  and  corporate  development  and
support costs incurred by our wholly owned subsidiaries.


                                       27
<PAGE>

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         General and  administrative  expenses  amounted to  approximately  $6.5
million or  approximately  50% of net revenues  for the year ended  December 31,
2003 (eight months of operations) as compared to  approximately  $6.9 million or
28% of net  revenues  for the year ended  December  31,  2002,  an  increase  of
approximately 22% of revenues for the comparative periods.

         For the year ended  December  31,  2002,  the  Biopharma  Division  had
general and administrative  expenses totaling $375,000.  Therefore,  the general
and administrative  expenses for Miza UK excluding  Biopharma for the year ended
December 31, 2002 amounted to  approximately  $6.5 or  approximately  31% of net
revenues.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro  forma  general  and  administrative  expenses  for the year  ended
December 31, 2003 amounted to approximately  $7 million or approximately  44% of
pro forma net  revenues  of $15.8  million as  compared  to actual  general  and
administrative  expenses of approximately  $6.9 million or approximately  28% of
actual net revenues of $24.6  million for the year ended  December 31, 2002,  an
increase of approximately 16% of net revenues for the comparative periods.

         For  the  pro  forma  year  ended  December  31,  2003,  the  Biopharma
Division's   general  and   administrative   expenses  amounted  to  $33,000  or
approximately  0.4% of the Company's total general and  administrative  expenses
for the pro forma year.  These  expenses  were  minimal as business  activity at
Biopharma was significantly reduced during the administration period.

Discussion and Analysis Regarding our General and Administrative Expenses

         The significant  increases in the general and  administrative  expenses
for the respective  comparative periods are largely  attributable to a number of
business  ramp-up and  corporate  overhead  costs that we had to incur after our
reverse acquisition of Inyx Pharma. These included the costs associated with the
hiring of a number of key  personnel,  consulting,  legal and  accounting  fees,
higher  insurance  costs,  and  increased  business  and  corporate  development
activities, including travel and communication expenses.

         Of  the  total   amount  of  $6.5  million  we  spent  on  general  and
administrative   expenses  in  2003,   approximately   $1.7   million  of  these
expenditures were related to salaries and benefits;  approximately  $1.6 million
for legal,  accounting and consulting  fees;  approximately  $910,000 in travel,
communication  and  corporate  development  costs,   including  rent  paid;  and
approximately  $600,000  in  insurance  costs,  due  to a  general  increase  in
insurance  premiums within the insurance  industry.  Our Inyx Pharma  subsidiary
also had an allowance for bad debt totaling approximately $190,000.

         For the year ended  December 31, 2003, we also  expensed  approximately
$1.5 million for employee  incentive and non-qualified  stock options granted to
employees,   officers,   directors,   and  other  persons  which  made  valuable
contributions  to our Company,  as we expect to be issuing stock options to such
persons on a recurring basis. We have expensed any other warrants that we issued
during  the year  under  "Other  Expenses"  as we do not  expect  to grant  such
securities issuances on a recurring basis.

         In comparison,  for the year ended  December 31, 2002,  Miza UK did not
have  significant   legal,   accounting,   and  consulting  fees,  or  corporate
development  and public  company  costs,  and  therefore,  had lower general and
administrative expenses. The Administrator's fees for 2002 were expensed.

         As we  continue  to  implement  our  corporate  development  and growth
strategy, we expect to incur additional administrative costs due to the addition
of senior business and financial  executives to our management  team. We believe


                                       28
<PAGE>

that  as we grow  our  business  and  begin  to  introduce  our own  proprietary
products,   which  we  believe  will  have  better  margins  than  the  contract
development and manufacturing fees that we presently receive from our customers,
we can offset these administrative incremental costs on a long-term basis.

SELLING EXPENSES

         Selling  expenses  consists  primarily  of  salaries,  commissions  and
marketing costs  associated with the commercial,  and sales and marketing arm of
our business. Although we perform some sales and marketing functions,  presently
such activities are primarily  focused on expanding our  pharmaceutical  aerosol
manufacturing business with existing or potential clients.

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Selling  expenses were $260,000 or  approximately 2% of net revenues of
approximately  $13.1 million for the year ended  December 31, 2003 (eight months
of  operations)  compared  to $376,000 or  approximately  2% of net  revenues of
approximately $24.6 million, for the year ended December 31, 2002.

         In relation to Miza UK's  Biopharma  Division  only, for the year ended
December 31, 2002,  selling  expenses  were  approximately  $13,000.  Therefore,
selling expenses for Miza UK excluding Biopharma for the year ended December 31,
2002 were  $363,000 or  approximately  1.7% of net revenues of $21.1 million for
the year.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro forma  selling  expenses,  for the year ended  December  31,  2003,
amounted to  $311,000  or 2% of net  revenues  of  approximately  $15.8  million
compared to $363,000 or approximately 2% of net revenues of approximately  $24.6
million for the year ended December 31, 2002.

         For the pro forma year ended  December 31, 2003,  there were no selling
expenses associated with the Biopharma Division.

Discussion and Analysis Regarding Selling Expenses

         Although we continue to expand our own proprietary  product development
programs,  we have not yet  commercialized  or marketed our own products or drug
delivery applications.  Therefore, our selling expenses have remained consistent
over the comparative periods.  Since our reverse acquisition of Inyx Pharma, our
sales and  marketing  functions  have been  primarily  focused on expanding  our
pharmaceutical   aerosol  manufacturing  business  with  existing  or  potential
clients.  As we continue  to ramp-up our  business  development  and  commercial
activities,  we expect our  selling  expenses  to  increase  concomitantly  with
expected revenue expansion. Our selling expenses as a percentage of our revenues
will  also  increase  as we are  planning  to add  senior  sales  and  marketing
executives  to assist in our  business  expansion,  including  intensifying  our
marketing activities to existing or potential customers.

         Once we commence  marketing our own proprietary  products,  we may also
need to build or contract  our own sales  force.  We believe  that we will incur
substantial  additional  selling  expenses  once we  undertake  these  types  of
commercial activities. Initially though, until we can adequately afford the cost
of building or contracting our own sales force, we will depend on our customers'
distribution   channels   or   strategic   partners   to  market  and  sell  the
pharmaceutical products that we are presently developing or planning to develop.

DEPRECIATION and AMORTIZATION

         The value of our property and equipment is stated at cost. Depreciation
is computed using the  straight-line  method based on the estimated useful lives
of the  assets,  which  range  from 25 years for  buildings  and 3-10  years for
equipment. Any goodwill is not amortized but will be subject to annual review to
determine whether there is any impairment of the value ascribed to it.


                                       29
<PAGE>

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Depreciation  and  amortization  expenses  were  $387,000  or 3% of net
revenues of  approximately  $13.1  million for the year ended  December 31, 2003
(eight  months  of  operations)   compared  to  approximately  $1.3  million  or
approximately  5% of net revenues of  approximately  $24.6  million for the year
ended December 31, 2002. Depreciation and amortization expense for 2003 includes
amortization of financing costs amount to $40,000; there were no financing costs
in 2002.

         In relation to Miza UK's  Biopharma  Division  only, for the year ended
December 31, 2002,  depreciation  and amortization  expenses were  approximately
$321,000.  Therefore,   depreciation  and  amortization  expenses  for  Miza  UK
excluding Biopharma, for the year ended December 31, 2002, were approximately $1
million or approximately 4.7% of net revenues.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro forma  depreciation and amortization  expenses amounted to $615,000
or approximately 4% of net revenues of $15.8 million for the year ended December
31, 2003 as compared to  approximately  $1.3 million or  approximately 5% of net
revenues of approximately $24.6 million, for the year ended December 31, 2002.

         For the pro forma year ended  December 31, 2003,  without the Biopharma
Division,  depreciation  and  amortization  expenses  amounted  to  $877,000  or
approximately 6% of net revenues.

Discussion and Analysis Regarding Depreciation and Amortization Expenses

         Since our reverse acquisition of Inyx Pharma, there were no significant
additions  to fixed  assets  during  the  year  ended  December  31,  2003.  Our
depreciation  and  amortization  costs for the year were  $387,000  comprised of
$340,000,  for the depreciation of property,  plant and equipment and $7,000 for
the amortization of equipment under capital leases.

         In comparison,  for the year ended December 31, 2002,  depreciation and
amortization  costs were mainly  attributable  to the  depreciation of property,
plant and equipment acquired during 2001 and 2002 by Miza UK.

         For  the   comparative   years  ended   December   31,  2003  and  2002
respectively, depreciation and amortization expenses were significantly reduced,
as our subsidiary,  Inyx Pharma, which had purchased the business assets of Miza
UK out of  Administration,  paid  significantly less than the book value of Miza
UK's assets. Inyx Pharma paid approximately $5.1 million for the purchase of the
Miza UK business assets.  In comparison,  prior to  Administration,  Miza UK had
recorded the value of its property,  plant and equipment at  approximately  $9.5
million.

         For the comparative pro forma year, our  depreciation  and amortization
expenses are higher than our actual costs in this area, as such expenses are for
a longer  period,  based on the  assumption  that we had acquired Inyx Pharma on
January 1,2003 as opposed to April 28, 2003.

OPERATING LOSS BEFORE OTHER EXPENSES

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division

         Loss from operations  before other expenses  amounted to  approximately
$4.7 million for the year ended  December 31, 2003 (eight months of  operations)
compared to a loss from operations  before other expenses of approximately  $4.6
million for the year ended December 31, 2002.


                                       30
<PAGE>

         In relation to Miza UK's  Biopharma  Division  only, for the year ended
December 31, 2002, loss from operations  before other expenses was approximately
$397,000 (before pro forma adjustments).

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro forma loss from operations before other expenses for the year ended
December 31, 2003 amounted to  approximately $5 million as compared to pro forma
loss from  operations  before other  expenses  amounting to  approximately  $4.6
million for the year ended December 31, 2002.

         In relation to Miza UK's  Biopharma  division  only, for the year ended
December 31,  1003,  loss from  operations  before  other  expenses  amounted to
$92,000  before pro forma  adjustments.  Pro forma  adjustments  to reflect  the
charges  related  to fixed  assets as of the  closing  of the asset  acquisition
resulted  in pro forma  operating  income of  $170,000  as  compared to $397,000
(before pro forma  adjustments).  In 2002, pro forma  adjustments to reflect the
charges  related  to fixed  assets as of the  closing  of the asset  acquisition
resulted in pro forma operating loss of $1.5 million.

Discussion and Analysis of Operating Loss

         For the comparative  periods,  pro forma loss from operations primarily
resulted from reduced  revenues due to the phasing out of our CFC production for
the European and Canadian markets,  which negatively  impacted  unabsorbed fixed
costs associated with low manufacturing  capacity  utilization,  also due to the
one start-up and business integration, marketing and corporate development costs
as a result of our acquisition of Inyx Pharma during the period.

OTHER EXPENSES

         Other  expenses  consist of such costs that we do not expect to be of a
recurring nature and are therefore expensed as one time cost items. We have also
included any interest paid for the comparative periods within Other Expenses.

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Other expenses were  approximately $9.1 million or approximately 70% of
net revenues of approximately $13.1 million for the year ended December 31, 2003
(eight months of operations) compared to costs of approximately $26.7 million or
approximately 109% of net revenues of approximately $24.6 million,  for the year
ended December 31, 2002.

         In relation to Miza UK's  Biopharma  Division  only, for the year ended
December 31, 2002, other expenses were  approximately  $1.2 million.  Therefore,
other  expenses for Miza UK excluding  Biopharma for the year ended December 31,
2002 were  approximately  $25.5 million or approximately 121% of net revenues of
$21.1 million for the year.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         On a pro forma basis,  other expenses  amounted to  approximately  $9.3
million or approximately 59% of net revenues of $15.8 million for the year ended
December 31, 2003 as compared to  approximately  $26.7 million or  approximately
109% of net revenues of approximately $24.6 million, for the year ended December
31, 2002.

         For  the  pro  forma  year  ended  December  31,  2003,  the  Biopharma
Division's other expenses amounted to $253,000. Therefore, without the Biopharma
Division,  on a pro  forma  basis we had  approximately  $9.5  million  in other
expenses for the year ended December 31, 2003.


                                       31
<PAGE>

Discussion and Analysis Regarding Other Expenses

         The  significant  amount of expenses we incurred in 2003 was  primarily
related to our reverse acquisition of Inyx Pharma on April 28, 2003. In addition
to start-up costs, we incurred  various  business  integration,  development and
financing  costs in  acquiring  Inyx  Pharma  and  establishing  ourselves  as a
specialty pharmaceutical company.

         In comparison,  for the year ended  December 31, 2002,  Miza UK's other
expenses primarily consisted of business  reorganization  costs that it incurred
as a result of the Administration process it underwent.

         For  the   comparative   years  ended   December   31,  2003  and  2002
respectively, other expenses consisted of the following:

                                                    2003       2002
                                                  -------------------
1. Office lease deposit                           $    100   $   --
2. Investor relations marketing expenses               430       --
3. Interest expense on debt                            491      1,680
4. Excess of purchase  price over carrying             707       --
   valueof assets acquired
5. Acquisition costs                                 3,186       --
6. Warrants issued for services                      2,411       --
7. Shares issued for consulting fees                   799       --
8. Consulting fees                                     233       --
9. Fees paid to related party                          753       --
                                                      --         --
10.Reorganization and Administration costs            --       25,049
                                                  -------------------
                                                  $  9,110   $ 26,729
                                                  ===================

1.) In 2003, Inyx Realty, Inc., a wholly-owned subsidiary that we established to
operate our corporate office lease, entered into a lease agreement for an office
space in Miami,  Florida.  At that time, we had provided the landlord a security
deposit for the lease and required leasehold improvements.  In 2003, we made the
strategic decision to instead locate our corporate office in New York, New York.
We therefore  entered into an agreement with one of our  stockholders to acquire
Inyx Realty from us. As a result of this transaction,  our Company no longer has
any obligations under the ten-year lease.

2.) After our reverse  acquisition  of Inyx Pharma,  we  implemented a number of
investor and corporate  development  initiatives in order to establish ourselves
as a publicly-traded specialty pharmaceutical company.

3.) Interest  expense  amounted to $491,000 or  approximately 4% of net revenues
for the year ended  December 31, 2003 (eight  months of  operation)  compared to
approximately  $1.7  million or  approximately  7% of net  revenues for the year
ended December 31, 2002. The 2003 interest expense includes interest paid to our
original lender, Venture Finance PLC, which we subsequently repaid from proceeds
provided by our present  lender,  Laurus  Master Fund,  Ltd.  The 2003  interest
expense also includes accrued  interest to our convertible note holder,  Stiefel
Laboratories.  The 2002 interest paid relates to the outstanding indebtedness of
Miza UK at the time and is not  indicative  of the  interest  that we will incur
going forward, as a result of new financing arrangements.

4.) This  amounted  to the  excess of the  purchase  price  over the net  assets
acquired in conjunction with the acquisition of Miza UK by Inyx Pharma.

5.) Acquisition costs amounting to $3,186,000  included  $1,884,000 paid in cash
to outside consultant's for accounting, legal and appraisal fees and the balance
of $1,302,000 represents consideration for finders' fees paid in stock.


                                       32
<PAGE>

6.) During the year ended  December 31, 2003, we granted  5,485,000  warrants to
purchase  a maximum  of  5,485,000  whole  shares of our  common  stock.  Of the
warrants granted, 2,000,000 warrants were issued pursuant to issuance of equity,
2,010,000  warrants were issued pursuant to issuance of debt with the balance of
1,475,000  warrants issued  pursuant to consulting and investment  banking fees.
These  warrants allow the holders to buy our common stock at prices ranging from
$1.00 to $3.10 per share and expire at various  dates  between  July 1, 2006 and
December  30,  2008.  The net  proceeds  of all  these  financings  amounted  to
approximately  $10.3 million and were utilized to retire  previous  debt, add to
working capital,  and help fund our operations'  product development and capital
expenditure   requirements,   including  the  implementation  of  the  Sage  500
Management Information System.

7.) This amount  represents  fees paid in stock to a  consultant  assisting  our
Company with a number of business development initiatives.

8.) In order to continue to integrate and grow our business,  we have retained a
number of  consultants  with  various  skills and  expertise in order to help us
integrate the Inyx Pharma operation and develop our Company.

9.) This amount  represents the return of a  contribution  to the Company by our
Chairman.  In March 2003, our Chairman  agreed to contribute  (pound)400,000  to
Inyx Pharma so it could meet the shareholders' equity requirement of its lender.
Such  contribution was made with an  understanding  that the Company would repay
this  contribution  when it could meet the  financial  covenant on its own.  The
contribution  was  returned  in  November  2003 in the form of a  payment  to JK
Services,  a partnership  controlled by companies  owned by the Chairman and his
immediate family.

10.)Our  predecessor  company  incurred  non-recurring  charges  related  to the
Administration process. These reorganization items amounted to approximately $25
million  and are  comprised  of items of  income,  expense  and loss  that  were
realized  or  incurred  by the  Company  as a result of being  placed  under the
supervision of an administrator in accordance with the U.K. Insolvency Act 1986.
The following  summarizes  the  reorganization  charges  recorded by the Company
during the year ended December 31, 2002:

         Administrator and related fees                   $       452
         Impairment of property, plant and equipment            9,505
         Impairment of intangible assets                        7,031
         Advances to affiliated entities                        8,061
                                                          -----------
                                                          $    25,049

         The  Administrator and related fees of $452,000 were one-time costs and
fees  incurred  during  the  Administration  process.  Such  costs and fees were
incurred by Begbies Traynor, the court-appointed administrator during the period
of September 4, 2002 through  March 6, 2003.  The  impairment  to the  property,
plant  and  equipment  assets  of  approximately  $9.5  million  relates  to the
write-down  of the book value of such  assets  when Inyx  Pharma  purchased  the
business assets of Miza UK (excluding the Biopharma division). The impairment to
the intangible  assets of  approximately $7 million relates to the write-down of
the book value of the goodwill and other  intangible  assets of Miza UK,  which,
once it went into  Administration,  were not sufficient to recover such carrying
amounts.

         As we  continue  to  implement  our  corporate  development  and growth
strategy,  we expect to incur some  expenses  but at a reduced  level to what we
spent in 2003 after our reverse acquisition of Inyx Pharma.

INCOME TAX BENEFIT

         For the year ended December 31, 2003 (eight months of operations),  the
tax benefit net of valuation allowance is approximately $1.3 million as compared
to a tax benefit net of valuation  allowance of  approximately  $352,000 for the
year ended December 31, 2002.

         At December 31, 2003, the Company has  approximately $9 million of U.S.
and Canadian  operating loss carry forwards expiring from 2004 through 2019; and
approximately  $4.3 million of foreign loss carry  forwards  expiring  from 2004
through  2006.  We have not made any  provisions  for United  States  federal or
foreign taxes that may result from future remittances of undistributed  earnings
of foreign  subsidiaries,  because it is  expected  that such  earnings  will be
permanently reinvested in our foreign operations.


                                       33
<PAGE>

NET LOSS/INCOME

Inyx Actual  Results of Operations  for the Year Ended  December 31, 2003 (eight
months of  operations)  Compared to Actual  Results of  Operations  for the Year
Ended December 31, 2002 (Miza UK including results for the Biopharma Division)

         Net loss for the year ended December 31, 2003 was  approximately  $12.5
million as compared  with a net loss of  approximately  $31 million for the year
ended December 31, 2002.

         In relation to Miza UK's Biopharma  Division only, the net loss for the
year  ended  December  31,  2002,  was  approximately  $2.5  million  due to the
Administration  process.  For the year ended  December 31, 2002,  net losses for
Miza UK excluding Biopharma amounted to approximately $28.6 million.

Inyx Pro Forma  Results of  Operations  for the Year  Ended  December  31,  2003
(twelve  months of  operations,  including  results of the  Biopharma  Division,
commencing  January 1, 2003)  Compared to Actual  Results of Operations  for the
Year Ended  December  31,  2002 (Miza UK  including  results  for the  Biopharma
Division)

         Pro forma net loss for the year ended  December  31,  2003  amounted to
approximately  $13.1  million as  compared  to a net loss of  approximately  $31
million for the year ended  December 31, 2002.  Pro forma net loss  decreased by
approximately  $15.6  million or  approximately  52%.  The major  reason for the
change  was  the  incurrence  of  Administration  and  reorganization  costs  of
approximately $25 million during the 2002 year by Miza UK.

Discussion and Analysis Regarding our Net Losses

         For the year ended December 31, 2003, our net losses resulted primarily
from reduced  contract  development and  manufacturing  revenues and a number of
one-time  costs that we  incurred  in our reverse  acquisition  of Inyx  Pharma,
including the start up and integration costs of the combined companies.

         As we continue to ramp-up our  business  and obtain new  contracts  and
purchase orders from existing and new customers,  we believe that we can achieve
profitability and have positive cash flows from the operations we acquired, once
we fully integrate and develop the Inyx Pharma business and establish  ourselves
as a specialty pharmaceutical company.

         We also expect  profitability  to be restored to levels  experienced by
the business assets acquired by Inyx Pharma prior to the  Administration  period
as more customer contracts and purchase orders are initiated or renewed, through
the  increase of our  manufacturing  capacity  utilization,  increased  business
derived from our expertise in non-CFC aerosol pharmaceuticals, and the marketing
of our proprietary pharmaceutical products, therefore improving gross margins.

LIQUIDITY AND CAPITAL RESOURCES

General

         We  have  financed  our  operations  primarily  through  revenues  from
contract manufacturing and product development  contracts,  stockholders' equity
contributions,  credit facilities, and the financing of property,  equipment and
inventory  acquisitions.  Additionally,  earlier in our Company's development we
were partially  dependant on funding of our working capital  requirements in the
form of  stockholder  loans from  affiliates of the Company.  For the year ended
December 31, 2003 such stockholder loans included  approximately  $534,000 as an
interest-free  bridge financing loan from our Chairman/Chief  Executive Officer,
Dr. Jack Kachkar and  short-term  loans  totaling  approximately  $450,000  from
Viktoria  Benkovitch,  who is a  stockholder  and Dr.  Kachkar's  spouse.  As of
December 31, 2003, all such stockholder loans had been repaid.  There is also no
binding  obligation  for these  affiliates  to  provide  any  additional  future
funding.

         As  of  December  31,  2003,  we  had   approximately  $15  million  in
contractual  obligations  that are due  from  2004 to  2013.  These  obligations
include both  short-term and long-term  debt interest and principal  repayments,


                                       34
<PAGE>

and amounts owed for operating  leases.  In 2004, in addition to net contractual
obligations of  approximately  $2.7 million,  we believe that we will require at
least  another $10 million in  additional  funding to meet our working  capital,
capital expenditure and product development  requirements during that year. On a
longer term basis, we will require such additional funding for at least the next
3 to 5 years in order to continue  implementing our capital  expenditure  plans,
and product development and commercialization initiatives.

         Additionally,  we continue to incur operating  losses since our reverse
acquisition of Inyx Pharma.  For the year ended  December 31, 2003,  such losses
resulted  from  reduced  contract  development  and  manufacturing  revenues  in
connection with the UK  Administration  process,  and amounted to  approximately
$4.7  million,  plus a number of one-time  costs that we incurred in our reverse
acquisition of Inyx Pharma,  including the start up and integration costs of the
combined companies,  of approximately $9.1 million.  This combined total loss of
$13.8 million was offset by approximately  $1.3 million in a deferred income tax
asset creating a net loss for the year ended December 31, 2003 of $12.5 million.

         As we continue to develop and build our company,  we will have to cover
any cash flow deficits from additional funding sources. In time, we believe that
we can achieve  profitability  by enhancing our sales and  marketing  efforts to
increase the number of customer  purchase  orders and contracts for our contract
development,  and manufacturing  services.  We also believe we can establish new
sources of revenue by providing pharmaceutical manufacturing consulting services
to the industry and by marketing our own proprietary pharmaceutical products. We
expect that the successful launch of our products will provide greater operating
margins and improve our performance and overall profitability.

         Although the business assets of our  predecessor  company were acquired
out of  Administration,  most of the customer base was  retained,  and Miza UK's
2001  results,  when  it  was  profitable,  may  be  indicative  of  our  future
operations.  We believe that we can achieve profitability and have positive cash
flows from the  operations we acquired  once we fully  integrate and develop the
business in accordance with our noted business  strategies.  Until that time, we
will continue to depend on our credit  facilities,  and placements of equity and
debt  securities  to assist us with our working  capital  requirements,  capital
expenditure plans, and proprietary product development initiatives.

Capital Resources

         For the year ended December 31, 2003 (eight months of operations  after
our reverse  acquisition  of Inyx  Pharma),  we  completed  financings  totaling
approximately  $11.6 million in the form of private  equity  placements  and the
issuance of convertible debt and equity securities.  These financings included a
$500,000 private  placement of equity  securities that we announced on September
9, 2003, $4.5 million through the issuance of a convertible term note on October
29, 2003, a $3 million  private  placement of equity  securities  on October 30,
2003,  and the  issuance  of $3.5  million in  convertible  debt  securities  on
December 30, 2003.  Additionally,  on November 17, 2003, pursuant to an exercise
of options  under our Company  Stock Option  Plan,  we issued  75,000  shares of
common stock for net proceeds of $90,000.

         The net  proceeds of all these  financings  amounted  to  approximately
$10.4 million and were utilized to retire previous debt, add to working capital,
and help  fund our  operations'  product  development  and  capital  expenditure
requirements,   including  the   implementation   of  the  Sage  500  Management
Information System.

         The credit facilities,  equity and convertible debt security placements
and cash generated from operations during the eight months of operations in 2003
were sufficient to fund our  requirements  for that period.  However,  on both a
short-term and long term basis,  we will be required to raise capital  through a
combination of additional  borrowings,  and the issuance of additional  debt and
equity securities to implement our business and growth strategies as a specialty
pharmaceutical company.

         On a  short-term  basis,  in  2004,  we  believe  that we will  require
approximately  $12.7 million in additional funding to meet our debt and interest
repayment  obligations,  and fund our working capital,  capital  expenditure and
product development spending requirements. On a longer term basis, over 2005 and
2006 and 2007, we believe that in each  respective  year we will require further
funding in order to continue to meet our  contractual  obligations and implement
our capital expenditure and product development and commercialization plans.

         In 2004,  we  believe  that we will  require  at least  $4  million  in
additional  working  capital to enhance our sales and  marketing,  and  business


                                       35
<PAGE>

development  activities  in order  to  secure  additional  purchase  orders  and
contracts  from our  customers,  and improve the  performance  of our  business.
Further,  as a result of the long lead time  required to order  specialized  raw
materials and components necessary for the manufacture of some of our customers'
products,  we will  require  this  additional  working  capital to  support  the
purchase  and  storage  of such  supplies  in order to match the  ramp-up of our
business, and meet our customers' product and delivery requirements. On a longer
term basis,  we believe that we will continue to require working capital funding
as we implement our organic growth strategy and secure additional contracts from
our customers.

         Additionally,  in 2004, we will also require  funding of  approximately
$3.45 million to implement our capital expenditure plans. As described later, we
plan to spend approximately $2.9 million in 2004 for capital  expenditures which
are  intended  to  improve  our   pharmaceutical   manufacturing   technologies,
production  capabilities,  and plant  quality and safety  systems so that we are
able to pursue expanding commercial and product manufacturing opportunities with
existing and potential  multinational  pharmaceutical and biotechnology clients.
In  2004,  we  will  also  require  an  additional   $550,000  to  complete  the
implementation  of the Sage 500 MIS.  In order to  continue  to  strengthen  our
competitive position in the pharmaceutical  aerosol sector, in 2005 and 2006, we
will require a further  combined  total of $2.1  million in capital  expenditure
spending to enhance our aerosol manufacturing and quality control systems.

         As we have commenced the development of our own  proprietary  products,
in 2004, we will require  approximately $2.55 million in additionally funding to
complete the commercialization of our first product and commence the development
of a number of other proprietary products that we expect to commercialize within
the next three years. We will also require  additional funding over the next few
years to continue  to develop,  commercialize  and market our  products  through
strategic distribution relationships with our key clients.

         Additionally, in the event that we make significant future acquisitions
or changes in our  capital  structure,  we may also be  required  to raise funds
through  additional  borrowings  or the  issuance of  additional  debt or equity
securities. We are presently actively pursuing acquisitions that may require the
use of substantial capital resources.

Contractual Obligations as of December 31, 2003

<TABLE>
<CAPTION>
--------------------------------------------- -----------------------------------------------------
TABULAR DISCLOSURE OF CONTRACTUAL
OBLIGATIONS
(dollars in thousands)                   Payments due by Period
--------------------------------------------- -----------------------------------------------------
                                                                      2005-    2007-
                                                Total     2004        2006     2008     Thereafter
--------------------------------------------- --------- ---------- --------- --------- ------------
<S>                                            <C>       <C>        <C>       <C>      <C>
Long-Term Debt Obligations - Principal         $ 8,822   $ 1,382    $ 3,427   $ 4,013       --
--------------------------------------------- --------- ---------- --------- --------- ------------
Long Term Debt Obligations - Interest            1,603       578        784       241        241
--------------------------------------------- --------- ---------- --------- --------- ------------
Operating Lease Obligations (1)                  4,584       827      1,082       772      1,903
--------------------------------------------- --------- ---------- --------- --------- ------------
Purchase Obligations                              --        --         --        --         --
--------------------------------------------- --------- ---------- --------- --------- ------------
Other Long-Term Liabilities Reflected on the
     Balance Sheet under GAAP of the
     financial statements                         --        --         --        --         --
--------------------------------------------- --------- ---------- --------- --------- ------------
Total                                          $15,008   $ 2,787    $ 5,293   $ 5,557      2,144
--------------------------------------------- --------- ---------- --------- --------- ------------
</TABLE>

(1) Includes  approximately $1.6 million of a contractual obligation to pay rent
over 10 years under a lease agreement for an office space in Miami. The lease is
held by Inyx  Realty,  Inc. a wholly owned  subsidiary  of Inyx.  Subsequent  to
December 31,  2003,  Inyx Realty,  which we  established  solely to operate this
property lease, was acquired by First Jemini Trust, a discretionary family trust
in which our Chairman/CEO and his spouse,  who is also one of our  stockholders,
are beneficiaries.  Therefore  approximately $1.6 million of our operating lease
obligations  were eliminated  subsequent to December 31, 2003 (please see Future
Commitments).

Analysis of Cash Flows

         At December 31, 2003, we had cash of approximately $796,000 as compared
to zero  cash at  December  31,  2002  for Miza  UK,  due to the  Administration
process.  The increase in our cash  position was due mainly to proceeds from our
financing activities during 2003.


                                       36
<PAGE>

Cash Flows from Operating Activities
------------------------------------

         The net cash used in operating  activities  for the year ended December
31, 2003 (eight months of operations)  amounted to approximately $8.6 million as
compared to approximately $3.2 million of net cash generated from operations for
the year ended  December  31,  2002 by Miza UK. The  principal  reasons  for the
significant reduction in cash flows from operating activities for the year ended
December 31, 2003 were the number of one time business  integration and start-up
costs and expenses,  totaling  approximately $9.1 million,  which we incurred in
2003,  as a result  of our  reverse  acquisition  of Inyx  Pharma,  after it had
acquired the business assets of Miza UK out of Administration.

         For the year ended  December 31,  2003,  the net cash used in operating
activities  included a net loss of  approximately  $12.5  million  adjusted  for
non-cash  charges  totaling  approximately  $8.9  million  primarily  due to the
issuance of equity  securities as compensation of services and financing  costs,
which we have expensed.  These  non-cash  charges have been offset by a deferred
income tax asset of  approximately  $1.3 million,  consisting of a net operating
loss carried forward. Working capital changes reducing cash flow from operations
were due primarily to increases in inventory,  accounts  receivable  and prepaid
deposits,  resulting from increasing sales and business  activities during 2003.
Working capital changes  increasing cash flow from operations were due primarily
to  increases  in  accounts  payable  and  accrued  liabilities  as we ramped up
business after our reverse acquisition of Inyx Pharma.

         In comparison,  for the year ended December 31, 2002, the net cash used
in  operating  activities  included  a net  loss of  approximately  $31  million
adjusted for a significant  non-cash charge of approximately  $25 million due to
non-recurring charges related to the Administration  process and subsequent sale
of the Miza UK  business  assets  to Inyx  Pharma.  Other  non-cash  adjustments
included  charges  of  $1.3  million  for  depreciation  and  amortization,  and
approximately  $2.1 million as reserves for obsolete inventory and bad debt. Due
to the Administration process that Miza UK underwent, there were minimal working
capital changes reducing cash flow from operations while working capital changes
increasing  cash flow from  operations  were due  primarily  to increases in the
accounts  payable and accrued  liabilities,  plus the amount of liabilities that
became subject to compromise.

Cash Flows from Investing Activities
------------------------------------

         The net cash used in investing  activities  for the year ended December
31, 2003 (eight months of operations)  amounted to approximately $5.2 million as
compared to approximately $2 million of net cash used in investing activities by
Miza UK for the year ended December 31, 2002.

         For the year ended  December  31,  2003,  we spent  approximately  $5.2
million in capital expenditures,  all related to our reverse acquisition of Inyx
Pharma. These expenditures included  approximately $5.1 million for the purchase
of the Miza UK business assets by Inyx Pharma and approximately $100,000 for the
purchase of computer  hardware and software  (including  deposits required for a
new business information system), and office furniture and fixtures.

         In  comparison  for the year ended  December 31, 2002,  of the net cash
used in  investing  activities,  Miza UK spent  approximately  $1.8  million  in
capital expenditures and approximately  $190,000 related to associated equipment
acquisition, installation and commissioning costs. These expenditures were spent
on new filling,  packaging,  and quality control equipment to establish a second
hydrocarbon aerosol  manufacturing line. Such expenditures were completed before
Miza UK went into Administration.

Cash Flows from Financing Activities
------------------------------------

         For the  year  ended  December  31,  2003,  the net  cash  provided  by
financing  activities,   including  the  net  cash  provided  by  the  financing
activities  of Inyx  Pharma,  was  approximately  $14.8  million  consisting  of
proceeds of  approximately  $22.5 million in borrowings and the issuance of debt
and equity securities (as described  below),  offset by short-term and long-term
debt repayments and financing fees totaling approximately $7.7 million.

         In  comparison,  for the year ended  December 31, 2002,  there was $1.7
million of net cash used in financing  activities  by Miza UK.  Proceeds of $8.6


                                       37
<PAGE>

million,  from the issuance of long term debt,  were offset by $10.3  million of
cash used for the  repayment  of  previously  issued  debt or  remaining  in the
Administration proceedings, which commenced on September 4, 2002.

External Sources of Liquidity

Financing Activities
--------------------

         Our  Company's  operating   subsidiary,   Inyx  Pharma,   financed  its
acquisition  of the business  assets of Miza UK through  stockholder  equity and
term debt in the form of a secured  asset-based  loan from  Venture  Finance PLC
("Venture Finance"), a United Kingdom asset-based lender that is part of the IFN
Group  owned by  ABN-AMRO  Bank.  Inyx Pharma  obtained  this loan from  Venture
Finance on March 7, 2003.  On that date,  Venture  Finance  also  provided  Inyx
Pharma  with a  working  capital  loan  in the  form of a  confidential  invoice
discounting credit facility.

         The term loan credit  facility  that Inyx Pharma  received from Venture
Finance  consisted of a $4.8 million  plant and machinery  credit  facility with
available room of $3.2 million and a real property term loan with available room
of  $1.6  million.   Inyx  Pharma  pledged  its  real  estate  properties,   and
manufacturing  equipment and facilities as collateral for these loans. The plant
and machinery  credit  facility and the real property loan were  repayable in 34
equal  monthly  payments  of $67,000  and $45,000  respectively.  This  included
interest on  outstanding  balances  calculated at 2.25% above the base rate from
time to time  set by  Venture  Finance  subject  to a  minimum  of 4%.  Payments
commenced one month after the commencement of the credit facilities with a final
bullet payment 36 months after commencement of the facilities.  On March 7, 2003
Inyx  Pharma  drew  $3.5  million  to help  pay for its  Miza UK  purchase.  The
available unused credit on these loans, combined, amounted to $1.3 million. Inyx
Pharma would only have been able to draw on these  facilities if it had acquired
additional  property or  equipment  and obtained the  necessary  approvals  from
Venture  Finance.  Any such advances would be limited to 75% of the market value
of the acquired asset.

         The confidential  invoice  discounting credit facility obtained by Inyx
Pharma from Venture  Finance was a $4.8 million credit facility for the purchase
of debts.  This credit  facility  allowed  Inyx  Pharma to receive an  immediate
working  capital  advance  from  Venture  Finance  at the time  that a  customer
invoiced for a particular  service or product.  Venture  Finance  advanced  Inyx
Pharma up to 85% of the required payment amount on eligible  customer  invoices.
Inyx Pharma utilized such advances for its working capital requirements while it
awaited  payment from the customer,  based on 30 day payment terms from the date
of  invoice.  At the  time the  customer  had  eventually  paid its debt to Inyx
Pharma,  Venture  Finance was repaid its 85% advance while Inyx Pharma  received
the  balance  or 15% of that  debt.  Until  any such  debt had been  paid by the
customer, Inyx Pharma pledged to Venture Finance the customer receivable against
any advanced  amounts.  Inyx Pharma was also charged interest on any outstanding
balances  under this  facility.  Interest was calculated at 2.25% above the base
rate from time to time set by Venture  Finance  subject to a minimum of 4%. Inyx
Pharma's real estate properties, and manufacturing equipment and facilities were
pledged as  collateral  for these  loans.  The term of the  invoice  discounting
credit  facility  was 36  months  and  Inyx  Pharma  was able to draw up to $4.8
million under this facility.

         In order to obtain these credit  facilities from Venture Finance,  Inyx
Pharma  signed an All Asset  Debenture  in favor of Venture  Finance on March 7,
2003. This debenture  provided  Venture Finance with a fixed and floating charge
over all the assets of Inyx Pharma.  For providing  all such credit  facilities,
Venture Finance  received an arrangement fee from Inyx Pharma.  This arrangement
fee  consisted of 1% of the total amount of credit  facilities  provided to Inyx
Pharma  ($96,000 in total fees paid to Venture  Finance).  Venture  Finance also
charged Inyx Pharma a service charge for managing these credit facilities.  Such
service  charges were based on 0.25% of the gross amount drawn under the invoice
discounting credit facility.

         As a result  of our  reverse  acquisition  of Inyx  Pharma on April 28,
2003, we consolidated the Venture Finance credit facilities.

         Subsequently,  on October 29, 2003, we issued a secured 7%  Convertible
Term Note due October 29, 2006 to Laurus  Master Fund,  Ltd.  ("Laurus")  in the
principal  amount of $4.5 million in exchange for cash.  This  convertible  term
note is secured by all of our real and personal  properties in the United States
and the United  Kingdom,  and the common stock of Inyx Pharma  consisting of one
million  ordinary  shares.  We also  issued to Laurus a five-year  Common  Stock
Purchase  Warrant to purchase a total of 1,350,000 shares based on the following
prices:  450,000  shares at $1.25 per share;  450,000 shares at $1.50 per share;
and 450,000  shares at $1.75 per share.  Excluding  related  financing  fees and


                                       38
<PAGE>

costs of $700,000, the net proceeds of the three-year convertible note financing
with  Laurus  amounted  to $3.8  million.  Approximately  $3  million of the net
proceeds  were used to repay the  outstanding  balance of the  original  Venture
Finance plant and machinery  credit facility and terminate that credit facility,
with  the  balance  of  approximately  $800,000  utilized  for  working  capital
purposes.

         Principal and interest on the Laurus $4.5 million Convertible Term Note
(the "Laurus  Note") is  convertible  into common stock at the fixed  conversion
price of $1.00 per share ("Fixed Conversion  Price");  however, no conversion is
permitted  if the shares  issued upon  conversion,  together  with other  shares
beneficially  owned by the Laurus,  would exceed 4.99% of our outstanding common
shares.  At our option  therefore,  provided  our shares have been  trading at a
price at least 15% in excess of the  fixed  conversion  price,  we may repay the
principal and interest of the Laurus Note, not theretofore converted,  in shares
of our common  stock at the fixed  conversion  price.  Any  amount of  principal
repaid  in cash will be  payable  in an  amount  equal to 105% of the  principal
amount  whereas  interest is  repayable in cash at the set  interest  rate.  The
Laurus Note may  therefore be prepaid in cash or shares of common stock  subject
to various prepayment penalties and limitations.

         The interest rate of the Laurus Note accrues at a rate of seven percent
(7%) per annum (the "Contract  Rate"),  subject to  adjustment.  The interest or
Contract Rate was agreed to between Laurus and the Company. On the last business
day of each month  after the  closing  date of October 29, 2003 (each such date,
referred to as the  "Determination  Date"), the Contract Rate that we pay Laurus
will be set on the following basis: (1) if we have registered both the shares of
our common stock  underlying  the conversion of the Laurus Note and the warrants
that we  issued  to  Laurus  as  additional  consideration  in  connection  with
providing us with the convertible  debt financing,  on a registration  statement
declared effective by the Securities and Exchange  Commission  ("SEC"),  and (2)
the  volume  weighted  average  price  of  our  common  stock,  as  reported  by
"Bloomberg,  L.P.", for the ten days immediately  preceding a Determination Date
exceeds the then applicable Fixed Conversion Price by certain  percentages,  the
interest  or  Contract  Rate for the  succeeding  calendar  month  automatically
adjusts based on the following:

               i)   100%  or  less  of the  Fixed  Conversion  Price  or a stock
                    trading  price of a $1.00 per common  share - a 7%  interest
                    rate on the Laurus Note is payable;
               ii)  125% of the  Fixed  Conversion  Price or at least or a stock
                    trading price of at least a $1.25 per common share - a 6.75%
                    interest rate on the Laurus Note is payable;
               iii) 150%  or  less  of the  Fixed  Conversion  Price  or a stock
                    trading  price of at least  $1.50 per common  share - a 6.5%
                    interest rate on the Laurus Note is payable;
               iv)  175% of the Fixed  Conversion Price or a stock trading price
                    of at least $1.75 per common share - a 6.25%  interest  rate
                    on the Laurus Note is payable.

         On December  30,  2003,  we also closed a  financing  transaction  with
Laurus to obtain an  additional  $3.5 million  credit  facility.  In addition to
being  collateralized  by our eligible accounts  receivable,  this Laurus credit
facility is also secured by all other  assets of our Company.  Based on eligible
accounts  receivable at the time, the net proceeds of this financing amounted to
approximately  $3.1 million of which  approximately $2.6 million of the proceeds
were utilized to repay and terminate the confidential invoice discounting credit
facility originally  obtained by Inyx Pharma from Venture Finance.  Exclusive of
financing fees of approximately  $180,000,  the balance of the net proceeds were
utilized for working capital purposes.

         The Laurus $3.5  million  credit  facility  consists of two  promissory
notes, a $1.0 million  Secured  Convertible  Minimum  Borrowing Note, and a $2.5
million Secured Revolving Note. Both Notes bear interest at the greater of prime
plus 3% or a 7% rate  and at the  time  of  closing  on  December  30,2003  were
convertible  into our  common  stock at a fixed  conversion  price of $1.47  per
share. As outlined in our Subsequent Events discussion, we later agreed to amend
this fixed  conversion  price to $1.00 per share,  in connection with additional
funding provided by Laurus.  In addition,  subject to certain  limitations,  the
Secured  Convertible  Minimum  Borrowing Note permits payments to be made in our
common  stock,  and we  have  filed  a  registration  statement  that is not yet
effective to register 3,150,000 shares issued upon conversion of the Notes or in
lieu of Note payments. As additional  consideration for the loan, we also issued
to Laurus a  five-year  Common  Stock  Purchase  Warrant to  purchase a total of
660,000 shares based on the following prices: 220,000 shares at $1.84 per share;
220,000 shares at $2.20 per share; and 220,000 shares at $2.57 per share.


                                       39
<PAGE>

         Thereforeby December 31, 2003, we had utilized proceeds from the Laurus
financings to repay and  extinguish  all previous  financings  obtained  through
Venture Finance.  As of December 31, 2003, the outstanding amounts on the Laurus
credit  facilities were $4.5 million on the secured 7% Convertible Term Note due
October 29, 2006, and a total of $3.1 million owing on the $3.5 working  capital
credit  facility,  (consisting of the $1.0 million Secured  Convertible  Minimum
Borrowing  Note and $2.5 million  Secured  Revolving  Note) which we obtained on
December 30, 2003.

         In addition to the proceeds from our equity  placement  financings,  in
2003, the Laurus credit  facilities were sufficient to fund our requirements for
the eight months of  operations  ending  December 31, 2003.  However,  on both a
short-term and long-term basis, we will be required to continually raise capital
through  additional  borrowings  or the  issuance of  additional  debt or equity
securities in order to implement our business and growth  strategies,  which may
include significant business or corporate acquisitions or changes to our capital
structure.

Certain Indebtedness and Other Matters
--------------------------------------

         In  addition  to the  original  credit  facilities  provided by Venture
Finance,  on March 6, 2003,  Inyx Pharma also received a working  capital credit
facility in the form of an unsecured  convertible  debt instrument (the "Stiefel
Loan")  from  one  of  its  clients,  Stiefel  Laboratories,  Inc.  ("Stiefel").
Headquartered   in  Coral  Gables,   Florida,   Stiefel  is  a  privately   held
pharmaceutical  company  which  has  a  number  of  domestic  and  international
operations.

         Stiefel  provided  the loan in order to  ensure  that Inyx  Pharma  had
sufficient working capital to support its inventory and insurance  requirements,
once  Stiefel  agreed to exclusive  development,  and  manufacturing  and supply
agreements  with Inyx Pharma.  Stiefel and Inyx Pharma  signed such  agreements,
which  also  included  a  quality  agreement,  on March  6,  2003.  Under  these
agreements, Inyx Pharma is to manufacture and assist in the commercialization of
specific  hydrocarbon  aerosol  dermatological  products for Stiefel's worldwide
customer base.

         The principal  amount of the Stiefel Loan is  approximately $4 million,
and is due on March 6,  2007.  Interest  is  payable  annually  at a rate of 6%,
beginning March 7, 2004.  Stiefel may, from time to time,  agree to postpone any
accrued interest  payments.  Under the Stiefel Loan,  Stiefel also has the first
right of first  refusal,  for a period of four  years,  on any  additional  debt
financing  that may be required by the Company from time to time. To date,  they
have not exercised this right of first refusal.

         Due to our reverse acquisition of Inyx Pharma, the Stiefel Loan and any
accrued  interest may be converted  into 4 million shares of common stock of the
Company  at  anytime  before  March  6,  2007.  When we  concluded  our  reverse
acquisition  of Inyx Pharma on April 28, 2003, the  transaction  consisted of an
exchange of 100% of the  outstanding  common  stock of Inyx Pharma (or 1 million
ordinary  shares of Inyx Pharma) in exchange for 16 million shares of our common
stock,  as a result of which Inyx  Pharma's  shareholders  became  the  majority
shareholders of our Company and Inyx Pharma became our wholly owned  subsidiary.
As a result  of the  reverse  acquisition  and  under  the  terms of its  option
agreement  with Inyx Pharma,  Stiefel is now entitled to 4 million common shares
of our stock,  if it exercises its option to convert its debt into equity of our
Company.  As of December  31,  2003,  the  outstanding  amount we owed under the
Stiefel  Loan  totaled  approximately  $4.2  million in  principal  and  accrued
interest.

         In addition to the credit  facilities  noted above,  during  2003,  our
Company's  stockholders  periodically  advanced and received  repayment of funds
loaned to the  Company.  Until the  completion  of our  initial  financing  with
Laurus,  we had utilized such stockholder  loans to support  operations,  settle
outstanding  trade accounts  payable,  and for general working capital purposes.
Such  loans  were  payable  upon  demand.  As of  December  31,  2003,  all such
outstanding  stockholder  loans have been repaid,  except for two $50,000 demand
notes, each accruing interest at 18% annually, owed to two of our non-affiliated
shareholders.  We  have  not as of yet  repaid  these  two  loans  and we are in
discussion with the two note holders to apply the outstanding  principal amounts
to the purchase of common stock.  As of December 31, 2003,  there were no formal
agreements  between  the  Company  and any of our  stockholders  to provide  any
further funding either on a short-term or long-term basis.

         As of December  31, 2003,  we had also entered into two capital  leases
amounting to approximately $414,000 in total costs. The major component of these
capital  lease  costs  was  the  implementation  of a new  business  information
technology  system,  the Sage 500 Management  Information System (Sage 500 MIS),


                                       40
<PAGE>

which has now become  operational.  Excluding  interest payable of approximately
$105,000,  the capital  amount of these leases is  approximately  $309,000.  The
lease for the Sage 500 MIS will expire by 2006 and is  presently  guaranteed  by
our Chairman.

         For the year ended December 31, 2003, the total amount of interest paid
on all of our Company's borrowings amounted to $491,000. This amount of interest
consisted of  approximately  $216,000 of interest  paid and $275,000 of interest
accrued.  For the year ended  December 31, 2003, the weighted  average  interest
rate paid on outstanding loans during the year amounted to approximately 6.6%.

Capital Expenditures
--------------------

         For the year ending  December 31,  2003,  we spent  approximately  $5.2
million in capital expenditures.  These expenditures included approximately $5.1
million  for the  purchase  of the Miza UK  business  assets by Inyx  Pharma and
approximately  $100,000 for the purchase of computer hardware and software,  and
office furniture and fixtures.

         In  comparison,  for the year ending  December 31, 2002,  approximately
$1.8 million was spent in capital  expenditures  at Miza UK. These  expenditures
were spent on new filling, packaging, and quality control equipment to establish
a  second  hydrocarbon  aerosol   manufacturing  line.  Such  expenditures  were
completed before Miza UK went into Administration.

         Although we had planned a number of capital  expenditures  in 2003,  we
instead  focused  our   expenditures  on  business   integration  and  corporate
development activities.  In 2004 we plan to commence spending approximately $2.9
million in capital expenditures for our Inyx Pharma manufacturing operation. Our
planned  capital   expenditures  for  2004  include  $900,000  to  commence  the
development of a new  hydrocarbon  aerosol  manufacturing  and product  blending
area,  which will provide  appropriate  segregation to  manufacture  anti-fungal
aerosol products and to grow existing product opportunities;  $550,000 for a new
mixing vessel and  associated  ancillary  equipment to enable us to  manufacture
newly formulated  hydrocarbon aerosol products;  $460,000 to expand our CFC-free
(HFA) metered dose inhaler production  facility in order to allow us to pursue a
number of our own and new customer product development  opportunities in the HFA
respiratory  area;  $365,000 to introduce  additional needle valve and under-cup
gassing technology to produce our own proprietary  products that incorporate new
product-propellant   barrier  systems;  and  $640,000  in  facility  maintenance
expenditures,  including  modification to the existing sprinkler systems to meet
enhanced insurance standards, and the relocation of a propellant storage area to
meet health and safety requirements.

         In  addition  to the  leasing  costs  we  have  already  undertaken  in
connection with the implementation of the Sage 500 MIS, in 2004, we will have to
also spend approximately  $550,000 in related capital  expenditures for this MIS
system, plus ongoing annual maintenance costs of approximately $65,000. This MIS
system supports our business  functions at Inyx Pharma including  manufacturing,
warehousing,  distribution,  logistics, sales reporting, accounting,  inventory,
quality control, budgeting and financial reporting, and other company functions.

         We also expect to increase our capital  expenditures  over the next few
years to improve  our  capabilities  to  introduce  new  pharmaceutical  aerosol
products  for  increasing   market   opportunities   in  the   respiratory   and
dermatological  sectors.  Planned capital  expenditures  will include  equipment
purchases and facility  improvements at our United Kingdom  product  development
and  manufacturing  facilities.  These  planned  investments  will  support  the
maintenance  of  our  facilities  and a  number  of  immediate  business  growth
opportunities.  These planned  expenditures  will also allow us continue to meet
ongoing  regulatory  compliance   requirements,   including  adherence  to  good
manufacturing  practice, and the health, safety and environmental aspects of our
pharmaceutical operations.

Future Commitments
------------------

         As of December 31, 2003,  exclusive of our contractual  obligations for
debt  repayments,  our main  long-term  financial  commitments  are our property
leases,   including   those  for  our  office  and  development  and  production
facilities.  These property  leases range from one to fifteen years depending on
the specific property. We also have a number of operating and capital leases for
office equipment, fork lifts and staff automobiles in the United Kingdom.

         As of December 31, 2003, we had operating lease contractual obligations
totaling  approximately  $4.6  million due to various  vendors over the next ten


                                       41
<PAGE>

years.  This  amount  includes  approximately  $1.6  million  of  a  contractual
obligation to pay rent over 10 years under a lease agreement for an office space
in Miami.  The lease is held by Inyx Realty,  Inc. a wholly owned  subsidiary of
Inyx.  Subsequent to December 31, 2003, Inyx Realty, which we established solely
to  operate  this  property  lease,  was  acquired  by  First  Jemini  Trust,  a
discretionary  family trust in which our Chairman/CEO and his spouse, who is one
of our stockholders, are beneficiaries. Therefore, approximately $1.6 million of
our operating lease obligations were eliminated subsequent to December 31, 2003.

         With  regard to our vendor and  suppliers,  due to the  purchase of the
business assets of Miza UK out of  Administration,  we continue to be on cash on
delivery  (COD)  payment  terms with a small number of our  suppliers in Europe,
including  Perfect  Valois,  which provides  valves,  and MY  Healthcare,  which
provides packaging material.  We expect that by the end of 2004, we can commence
30-60 day payment terms with such vendors.

Acquisitions
------------

         We believe  that we can enhance our  competitive  position  through the
acquisition  of  regulatory-approved  pharmaceutical  products and drug delivery
devices for respiratory,  dermatological and topical drug delivery  applications
or such products in  development,  including  those through the  acquisition  of
other pharmaceutical companies.

         We are  actively  pursuing  acquisitions  that may require  substantial
capital resources. In the event that we make a significant future acquisition or
change  our  capital  structure,  we may be  required  to  raise  funds  through
additional borrowings or the issuance of additional debt or equity securities.

Subsequent Events and Expectations

         On February 3, 2004, we announced  that our Company was selected by the
United  Nations  Development  Programme  to assist a candidate  country meet the
requirements  of  the  Montreal   Protocol  to  phase  out  the  consumption  of
ozone-depleting chorofluorocarbon ("CFC") gases in metered dose inhalers used in
the  treatment  of  asthma  and  other  respiratory  conditions.   With  funding
assistance for this project  provided by the United Nations  Multilaterial  Fund
for the Implementation of the Montreal  Protocol,  in 2004 we expect to commence
our initial contract providing  technology  transition  consulting services to a
candidate country. These services will include the installation of manufacturing
facilities,  equipment, and systems to manufacture CFC-free or Hydrofluoroalkane
("HFA")  aerosol  based  respiratory  inhalers  for the  treatment of asthma and
chronic obstructive respiratory disease conditions.

         On February 27, 2004, we closed a transaction  with our primary lender,
Laurus Master Fund, Ltd.  ("Laurus"),  to obtain an additional financing of $2.0
million as an amendment to the $3.5 million  credit  facility that we previously
entered with them on December 30, 2003. That Laurus $3.5 million credit facility
consists of two promissory  notes, a $1.0 million  Secured  Convertible  Minimum
Borrowing  Note, and a $2.5 million  Secured  Revolving Note. As a result of the
additional  Laurus  financing,  the $1.0  million  Secured  Convertible  Minimum
Borrowing  was increased by $1.0 million and the $2.5 million  principal  amount
Secured  Revolving  Note of the credit  facility was  increased by $1.0 million.
Both Notes were further amended to decrease the applicable  conversion rate from
$1.47 to $1.00. As additional  consideration for the loan, we issued to Laurus a
five-year  Common Stock  Purchase  Warrant to purchase  330,000 shares of common
stock at exercise prices of $1.25 for 110,000  shares,  $1.50 for 110,000 shares
and $1.75 for 110,000 shares.

         On March 30, 2004, we also obtained an additional  $1.0 million advance
from Laurus  under the Secured  Revolving  Credit  Note,  and issued  additional
warrants to purchase  55,000 shares of common stock for $1.25 per share,  55,000
shares  for $1.50 per share and 55,000  shares  for $1.75 per share.  Subject to
certain  limitations,  these Laurus credit facilities permit payments to be made
in our common stock. We therefore expect to amend a registration statement, that
is not yet  effective,  to register an additional  3,000,000  shares issued upon
conversion of the Notes or in lieu of Note  payments,  and the 495,000  warrants
that we have issued to Laurus in association with these financings.

         Subsequent  to December  31,  2003,  pursuant to our 2003 Stock  Option
Plan,  there were 325,000 stock options  exercised.  The net proceeds,  from the
exercise of these options,  amounts to $357,500. With the issuance of the shares
associated  with the exercise of these options,  we now have  28,850,000  shares
issued and outstanding.


                                       42
<PAGE>

         In April  2004,  Inyx  Realty,  Inc.,  which we  established  solely to
operate a corporate office lease in Miami Florida,  was acquired by First Jemini
Trust, a discretionary family trust in which our Chairman/CEO and his spouse are
beneficiaries, thus terminating the Company's obligations under the lease.

         In 2004,  we will  continue to focus on  strengthening  and growing our
pharmaceutical  aerosol  contract  manufacturing  business  in  order  to  reach
profitability.  Additionally,  we plan to continue  the  development  of our own
proprietary pharmaceutical products for respiratory,  dermatological and topical
drug  delivery  applications,  to be marketed  and sold  through our  customers'
distribution  channels or with  strategic  partners.  Planned  products  include
metered dose inhalers, nasal pumps, topical aerosols, wound care sprays and oral
sprays for  cardiovascular  disease.  We are  primarily  focusing our efforts on
generic pharmaceutical products and innovative drug delivery systems which allow
line extensions of established products, or those delivery systems that overcome
present product and propellant  incompatibility  in the  pharmaceutical  aerosol
sector.  In 2004,  we will also  continue  to  explore  pharmaceutical  business
acquisitions  or  the  acquisition  of  pharmaceutical  products,   intellectual
property or drug delivery devices.

ITEM 7.  FINANCIAL STATEMENTS
         --------------------

The financial statements required by this item begin at Page F-1 hereof.

ITEM  8.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
          ----------------------------------------------------------------------
          FINANCIAL DISCLOSURE
          --------------------

         On July 23,  2002,  Doblique was  informed by Scott W.  Hatfield,  CPA,
Dallas,  Texas, (the "Auditor") that his firm resigned as its independent public
accountant.

         The Auditor's  reports for the two most recent fiscal years included an
explanatory paragraph concerning the Registrant's ability to continue as a going
concern.  During the two most recent fiscal years and during the interim  period
from  December  31,  2001  until July 23,  2002,  the  Company  did not have any
disagreements  with the  Auditor  on any  matter  of  accounting  principles  or
practices,  financial statement  disclosure or auditing scope or procedures that
would require  disclosure in the Form 8-K reporting the  resignation  dated July
23, 2003.  During such period,  there were no reportable  events as described in
Item 304(a)(1)(v) of Regulation S-K.

         Scott W. Hatfield,  CPA, furnished to the Company a letter addressed to
the SEC stating that it agrees with the statements in the immediately  preceding
paragraph.  An updated  copy of such  letter,  dated August 7, 2002 was filed as
Exhibit 1 to the Form 8-K.

         On July 26,  2002,  Doblique  retained  the  accounting  firm of Parks,
Tschopp,  Whitcomb & Orr, Maitland,  Florida as its independent auditors for the
fiscal  year  ending  December  31,  2002.  The Board of  Directors  of Doblique
approved the  selection  of Parks,  Tschopp,  Whitcomb & Orr as new  independent
auditors.  During the Company's two most recent fiscal years ended  December 31,
2001, and the subsequent  interim periods through the date of the 8K Report, the
Company did not consult with Parks, Tschopp, Whitcomb & Orr regarding any of the
matters or events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-K.

         On March 29, 2003,  following a change in control of the  Company,  the
Company  dismissed Parks,  Tschopp,  Whitcomb & Orr as its independent  auditors
(the "Auditor").

         The Auditor's  reports for the two most recent fiscal years included an
explanatory  paragraph  concerning the Company's  ability to continue as a going
concern.  During the two most recent fiscal years and during the interim  period
from  January  1,  2003  until  March 29,  2003,  the  Company  did not have any
disagreements  with the  Auditor  on any  matter  of  accounting  principles  or
practices,  financial statement  disclosure or auditing scope or procedures that
would  require  disclosure  in the Form 8-K dated March 24, 2003  reporting  the
closing.  During such period,  there were no  reportable  events as described in
Item 304(a)(1)(v) of Regulation S-K.

         Parks,  Tschopp,  Whitcomb  & Orr  furnished  to the  Company  a letter
addressed  to the  SEC  stating  that  it  agreed  with  the  statements  in the
immediately preceding paragraph.  A copy of such letter, dated April 2, 2003 was
filed as Exhibit 2 to the Form 8-K.


                                       43
<PAGE>

         On  March  29,  2003,  the  Company  retained  the  accounting  firm of
Berkovits,  Lago and Company, LLP, Fort Lauderdale,  Florida, as its independent
auditors for the fiscal year ending December 31, 2003. The Board of Directors of
the Company  approved the selection of Berkovits,  Lago and Company,  LLP as new
independent auditors.  Neither management nor anyone on its behalf had consulted
with  Berkovits,  Lago and Company,  LLP regarding the application of accounting
principles to a specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the Company's  financial  statements,
and neither a written  report nor oral advice was  provided to the Company  that
Berkovits, Lago and Company, LLP concluded was an important factor considered by
the Company in reaching a decision as to the  accounting,  auditing or financial
reporting  issue  during the  Company's  two most recent  fiscal  years prior to
engaging Berkovits, Lago and Company, LLP.

ITEM 8A.  CONTROLS AND PROCEDURES

         (a)      Within the 90-day period prior to the date of this report,  we
                  carried out an evaluation,  under the supervision and with the
                  participation of our management, including the Chief Executive
                  Officer   and  acting   Chief   Financial   Officer,   of  the
                  effectiveness  of the design and  operation of our  disclosure
                  controls  and  procedures  pursuant  to  Rule  13a-14  of  the
                  Securities  Exchange Act of 1934 (the "Exchange  Act").  Based
                  upon that evaluation,  the Chief Executive  Officer and acting
                  Chief Financial Officer concluded that our disclosure controls
                  and  procedures  are  effective  in  timely  alerting  them to
                  material  information  relating to the Company  (including  it
                  consolidated  subsidiaries)  required  to be  included  in our
                  Exchange Act filings.

         (b)      There  have  been  no  significant  changes  in  our  internal
                  controls or in other factors, which could significantly affect
                  internal  controls  subsequent  to the date we carried out our
                  evaluation.

PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
         -------------------------------------------------------------

Section 16(a) Beneficial Ownership Reporting Compliance

         The Company's officers,  directors and 10% stockholders are not subject
to Section 16 reporting.

Directors and Executive Officers

<TABLE>
<CAPTION>

    Name             Age             Position with Company              Start Date with Company
    ----             ---             ---------------------              -----------------------
<S>                  <C>    <C>                                         <C>
Jack Kachkar         40     Chairman,   Chief  Executive   Officer,          April 1, 2003
                            Secretary and Director
Steven Handley       40     President and Director                            May 1, 2003
Colin Hunter         47     Executive   Vice    President,    Chief
                            Scientific Officer and Director                   May 1, 2003
Douglas Brown        51     Director  and  Compensation   Committee          July 17, 2003
                            Chair
Orestes L. Lugo      45     Director and Audit Committee Chair              October 6, 2003
Jay M. Green         55     Executive  Vice  President and Director
                            of Corporate Development                        December 1, 2003
                            Vice President-Finance and Treasurer
Rima Goldshmidt      41     (Acting Chief Financial Officer)                 April 1, 2003
</TABLE>



                                       44
<PAGE>

         Jack  Kachkar - Chairman,  Secretary  and  Director.  Dr.  Kachkar is a
medical  doctor  with  experience  as an  executive  within  the  pharmaceutical
industry.  From 1996  until  December  2002,  he was  President  and CEO of Miza
Pharmaceuticals,  Inc., a Canadian corporation in Toronto,  Ontario. Dr. Kachkar
has  founded  and  assisted  in the  acquisition  of a number of  pharmaceutical
companies focused on niche product  development and manufacturing  capabilities.
He has also provided  consulting and advisory services within the pharmaceutical
industry and was a founder in 1995 of a medical publishing company.  Dr. Kachkar
earned  his  medical  degree  from  the  English  Language  Medical  Program  at
Semmelweis Medical University in Budapest,  Hungary. Miza Pharmaceuticals,  Inc.
("Miza") had three  operating  subsidiaries,  Miza  Pharmaceuticals  (UK),  Ltd.
("Miza UK"), Miza Ireland Limited ("Miza Ireland") and Miza Pharmaceuticals USA,
Inc.  ("Miza  USA").  Dr.  Kachkar was  involved in the  management  of all four
companies,  although he resigned as an officer of Miza in December 2002 and as a
director  in May 2003;  he  resigned as a director of Miza UK in August 2002 and
was never an officer;  he resigned as a director of Miza Ireland in October 2002
and was never an  officer;  and he  resigned  as an officer of Miza USA in March
2003 and as a director in May 2003,  after it had been sold to its management in
October 2002. Miza UK was placed in  Administration  in 2001 and sold its assets
out of  Administration  in March 2003 to Inyx  Pharma.  Miza USA was placed with
Chapter 11 bankruptcy  proceedings  by its new owners in May 2003 under the name
Carr Pharmaceuticals, Inc. Miza is currently inactive.

         Steven Handley - President and Director.  Mr. Handley has over 20 years
experience within the pharmaceutical  industry.  During this period, Mr. Handley
has held several  senior  management  positions in  manufacturing  and technical
operations.  He has extensive  experience in the  development and manufacture of
sterile  pharmaceuticals  and aerosols  technology.  Mr.  Handley has worked for
Evans   Medical,   Medeva  PLC,  and,   during  the  past  five  years  for  CCL
Pharmaceuticals  and its  successor  Miza UK, where he was  responsible  for all
manufacturing  and technical  operations as Senior Vice  President.  Mr. Handley
holds a qualified  pharmaceutical  technician  degree and is a member of several
professional bodies. He also holds a diploma in management and is experienced in
vaccine manufacturing and lyophilization technology.

         Colin Hunter - Executive Vice President,  Chief Scientific  Officer and
Director.  Mr.  Hunter has over 25 years  experience  within the  pharmaceutical
industry where he has held senior  positions  within  quality and  manufacturing
operations, gaining extensive experience of regulatory authorities' requirements
for  pharmaceutical  products,  including  both FDA and EU regulatory  agencies.
During his career, he has worked for Glaxo  Pharmaceuticals,  Evans Medical Ltd.
and Medeva PLC.  From  January  1990 until June 2000,  he was  European  Quality
Director for Medeva  Pharma Ltd., a subsidiary  of Medeva + Celltech  PLC.  From
July 2000 until April 2001,  he was Quality  Director for CCL  Industries,  Inc.
From  May 2001  until  February  2003,  he was  Senior  Vice  President  of Miza
Pharmaceuticals  UK, Ltd. From March 2003 until April 2003, he was a director of
Inyx Pharma  Limited,  and he became  Executive Vice President of the Company in
May  2003.  Mr.  Hunter  holds a  Bachelor  of  Science  Degree  with  Honors in
Bacteriology and Virology. He is a Chartered Biologist,  Member of the Institute
of Biology,  a Fellow of The  Institute of Quality  Assurance and is a member of
other professional societies.

         Douglas Brown - Director and Audit  Committee  Member and  Compensation
Committee  Chair.  Mr. Brown is an independent  director of the Company.  He has
been active in a number of financial and investment companies.  He has served as
a director  of the L/M Asia  Arbitrage  Fund since June 1988 and of the  Eastern
Capital  Fund since June  1988.  Previously,  Mr.  Brown was  Vice-President  of
Citibank in London,  United Kingdom,  and Geneva,  Switzerland  where he managed
over one billion  dollars in assets.  Mr.  Brown  graduated  LLB from  Edinburgh
University, United Kingdom.

         Orestes  L.  Lugo  -  Director   and  Audit   Committee   Chairman  and
Compensation  Committee Member.  Mr. Lugo has been a certified public accountant
for 23 years.  Since April 2002 he has served as the Chief Financial  Officer of
Renal Carepartners, a private healthcare company. From February 2000 until April
2002, he was an independent financial  consultant.  He also serves as a director
of Momentum  Consulting Corp., a private  information  systems  consulting firm.
From August 1995 to February 2000, Mr. Lugo was Chief Financial Officer of Renex
Corp.,  a  publicly-held  company that was sold in 2000 Mr. Lugo was employed by
Touche  Ross & Co.  a  public  accounting  firm  from  1980-1989,  and  held key
financial  positions with two  publicly-held  healthcare-related  companies from
1989-1995.

         Jay M. Green - Executive  Vice  President  and  Director  of  Corporate
Development. Mr. Green joined Inyx in December 2003. From January until November
2003,  Mr.  Green was a managing  director  of Duncan  Capital,  LLC, a merchant
banking/investment banking firm that served as our investment banking firm. From


                                       45
<PAGE>

June 2001 until 2002  year-end,  Mr.  Green was a Managing  Director of BlueFire
Partners,  a Minneapolis-based  capital markets advisory firm. From January 2001
until May 2001, Mr. Green served as an independent financial consultant advising
both private and public companies.  From June 2000 until December 2000, he was a
Vice President with Unapix  Entertainment,  Inc.,  which was a public company on
the American Stock Exchange (ASE:  UPX) that filed for bankruptcy and its assets
were  subsequently  liquidated.  From March 1999 to May 2000,  Mr.  Green was an
independent  consultant  advising private and public  companies.  From September
1998 until February 1999, he served as a Vice President with Paxar Corp.  (NYSE:
PXR).  From January 1991 until May 1998,  Mr.  Green was a Vice  President  with
Seitel, Inc. (which was on the ASE and then the NYSE during his tenure).

         Rima  Goldshmidt - Vice  President-Finance,  Treasurer and Acting Chief
Financial  Officer.  Ms.  Goldshmidt is responsible for financial  reporting and
fiscal  management.  She has been employed with Inyx Canada Inc. and Inyx,  Inc.
since April 2003. Ms. Goldshmidt worked in the pharmaceutical  industry for Miza
Pharmaceuticals,  Inc.  between  November 2001 and September 2002 as Director of
Finance.  From September 2002 to April 2003, she was a  self-employed  financial
consultant to pharmaceutical  companies.  Prior to November, 2001 Ms. Goldshmidt
served as an audit  manager at KPMG where she focused on serving  clients in the
life sciences industry.  Mrs. Goldshmidt is a Chartered Accountant with a degree
in Microbiology and Biochemistry from the University of Toronto.

Director Compensation

         Directors  serve for a term of one year or until their  successors  are
elected and qualified.  Non-management  directors receive annual compensation of
$30,000  for  serving  on  the  Board  and  all  committees.  The  chair  of the
Compensation Committee receives an additional $10,000 per year, and the chair of
the  Audit  Committee  receives  an  additional   $20,000  per  year.   Existing
non-management   directors  have  also  received  certain  stock  options.   See
"Principal Stockholders and Security Ownership of Management."

Other Key Employees

Name                            Position with Company
Andy Millican                   General Manager
John Hamer                      Vice President, Regulatory & Development
James Meade                     Plant Manager - Astmoor Site
Mike White                      Head of Quality & Regulatory
David Bytheway                  Head of Commercial - Inyx Pharma
Joseph Rose                     Head of Finance - Inyx Pharma
Bill Jackson                    Management Accountant
Pat Gilmore                     HR Manager
Serge Agueev                    Manager of Information Systems

         Officers  are  appointed  by and  serve  at the  will of the  Board  of
Directors.  There  are no  family  relationships  between  or  among  any of the
directors or executive officers of the Company.

Governance

         The Board of Directors has adopted the  following  committees to assist
in the Company's governance:

         Audit  Committee - Orestes  Lugo and Douglas  Brown  comprise the Audit
Committee,  and Mr. Lugo is the Chairman and Audit Committee  Financial  Expert.
The Audit  Committee  functions  under a Charter  empowering  it to, among other
things,  appoint the independent auditors,  approve the auditor's fees, evaluate
performance  of  the  auditor,  review  financial  statements  and  management's
discussion and analysis thereof,  review all SEC reports and press releases of a
financial  nature,  oversee internal audit processes,  oversee new audit reviews
performed by the  auditors,  and receive  management  and other reports from the
auditor.


                                       46
<PAGE>

         Compensation Committee - Douglas Brown and Orestes Lugo comprise the
Compensation Committee, and Mr. Brown serves as the Chairman. The Compensation
Committee determines the compensation of the Chief Executive Officer and other
executive officers, determines Board of Director compensation, awards options
and other stock grants, and issues the report regarding these matters for
inclusion in annual reports to stockholders.

ITEM 10. EXECUTIVE COMPENSATION
         ----------------------

Executive Compensation

         For the fiscal years ended December 31, 2003, 2002 and 2001, the
following officers of the Company received the following cash compensation for
services rendered to the Company. See "Management -- Employment Agreements" for
a description of compensation arrangements entered into by the Company with
certain of its executive officers.

<TABLE>
<CAPTION>
                                                      Annual Compensation (1)             Long-Term
                                                    ------------------------     ----------------------------
                                                                Other Annual                       All Other
 Name/Principal Position        Year    Salary      Bonus       Compensation     Compensation    Compensation
 -----------------------        ----    ------      -----       ------------     ------------    ------------
<S>                             <C>     <C>         <C>         <C>              <C>             <C>
Jack Kachkar(2),                2003    $245,000       --        $100,000(3)           --          $65,000
     Chief Executive Officer    2002       --          --             --               --             --
                                2001       --          --             --               --             --
Steven Handley,                 2003    $163,300    $12,250           --               --          $16,120
     President                  2002       --          --             --               --             --
                                2001       --          --             --               --             --
Colin Hunter,                   2003    $155,135    $11,635           --               --          $16,120
    Executive Vice-             2002       --          --             --               --             --
    President                   2001       --          --             --               --             --
</TABLE>

(1)      No compensation was paid in 2001 and 2002.
(2)      Dr. Kachkar provides his services to Inyx and its subsidiaries  through
         "JK Services",  a partnership of corporations  owned by him and members
         of his immediate family.
(3)      Represents a  discretionary  expense  allowance.  Effective  January 1,
         2004, such amount will be combined with the salary amount.

Stock Options

<TABLE>
<CAPTION>
                                                      Number of Securities Underlying        Value of Unexercised
                                                                Unexercised                  In-the-Money Options
                                                        Options at Fiscal Year End            at Fiscal Year End
                                                      -----------------------------      -----------------------------
                      Number of Shares
                        Acquired or      Value
       Name              Exercised       Realized     Exercisable     Unexercisable      Exercisable     Unexercisable
       ----              ---------       ---------    -----------     -------------      -----------     -------------
<S>                      <C>             <C>          <C>             <C>                <C>             <C>
Jack Kachkar                 --              --         500,000             --            $140,000              --
Steven Handley               --              --           -0-               -0-                 -0-             -0-
Colin Hunter                 --              --         284,000          116,000           $79,520         $32,480
</TABLE>








                                       47
<PAGE>
<TABLE>
<CAPTION>


Long-Term Incentive Plans

                                                                  Estimated Future Payments under
                                                                    Non-Stock Price-Based Plans
                                                                 --------------------------------
                        Number of
                      Shares, Under     Performance or Other
                         or Other          period Until           Threshold    Target     Maximum
     Name                Rights         Maturation or Payout      ($ or #)    ($ or #)   ($ or #)
     ----                ------         --------------------      ---------   --------   --------
<S>                      <C>            <C>                       <C>         <C>        <C>
Jack Kachkar              None
Steven Handley            None
Colin Hunter              None
</TABLE>

Employment Agreements

         The Company has signed Employment Agreements with its five executive
officers. Such agreements have the following principal terms:
<TABLE>
<CAPTION>

       Feature          Jack Kachkar(1)     Steven Handley      Colin Hunter      Rima Goldshmidt         Jay Green
       -------          ------------        --------------      ------------      ---------------         ---------
<S>                     <C>                 <C>                 <C>               <C>                     <C>
Start Date               April 1, 2003       May 1, 2003         May 1, 2003       April 1, 2003      December 1, 2003
Term of years                  5                  5                   5                  4                    5
Base salary                 $245,000       (pound)100,000      (pound)95,000            $92,000            $150,000
Expense Allowance           $100,000       (pound)50,000       (pound)25,000             --                $ 35,000
Stock options (2)           750,000            750,000             100,000            100,000               500,000
Vacation weeks                 4                  5                   5                  4                    4
Severance amount         24 months base     12 months base     12 months base      6 months base          24 months
</TABLE>
--------------------

(1)      Dr. Kachkar's  contract was with Inyx through May 15, 2003, when it was
         amended  to direct all  payments  to JK  Services,  a  personally  owed
         investment  company,  for purposes of Canadian tax planning.  Beginning
         January 1, 2004, the employment  agreement was resumed with Dr. Kachkar
         and the terms  amended to provide  for a $345,000  salary  without  any
         discretionary expense allowance.
(2)      Instead  of the  amounts  of options  provided  for in the  agreements,
         actual grants during 2003 were: Kachkar - 500,000,  Handley - 0, Hunter
         - 400,000, Goldshmidt - 200,000 and Green - 500,000.

         All agreements contain the following provisions: Bonus payments will be
made as a percentage  of base salary  increasing  with  performance  measured by
EBITDA,  with a  guaranteed  bonus of ten  percent of annual base  salary.  Each
executive may receive  additional  option grants upon award of the  Compensation
Committee.  Base  salary will  increase by 5% during each year of the term.  The
term  automatically  renews for successive  one-year periods after expiration of
the primary  employment  term.  Each agreement may be terminated  early for good
cause or by the executive's  resignation.  Termination for other reason triggers
payment  of the  severance  amount,  offset  by any  termination  event  that is
insured. Severance amounts for key senior executives increase from one-year base
salary to two times salary in case of termination  due to a change of control of
the Company. Each executive is subject to customary confidentiality  obligations
and an  agreement  not to compete  with the Company  for three  years  following
termination.  Key executives are covered by a life insurance  policy through the
Company benefit plan. The policy coverage starts at two times base salary.

Stock Option Plan

         The Company's  Stock Option Plan (the "Option  Plan")  provides for the
grant to eligible  employees and directors of options for the purchase of common
stock. The Option Plan covers,  in the aggregate,  a maximum of 5,000,000 shares


                                       48
<PAGE>

of common stock and provides for the granting of both  incentive  stock  options
(as  defined  in  Section  422  of  the  Internal  Revenue  Code  of  1986)  and
nonqualified  stock  options  (options  which do not meet  the  requirements  of
Section 422). Under the Option Plan, the exercise price may not be less than the
fair market value of the common stock on the date of the grant of the option.

         The Board of Directors  administers  and interprets the Option Plan and
is  authorized  to grant  options  thereunder  to all eligible  employees of the
Company,  including officers.  The Board of Directors  designates the optionees,
the number of shares subject to the options and the terms and conditions of each
option. Each option granted under the Option Plan must be exercised,  if at all,
during a period  established in the grant which may not exceed 10 years from the
later of the date of grant or the date first  exercisable.  An optionee  may not
transfer or assign any option  granted and may not exercise any options  after a
specified period subsequent to the termination of the optionee's employment with
the Company.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
         --------------------------------------------------------------

The following  table sets forth certain  information  regarding the ownership of
Common Stock as of March 1, 2004,  by each  stockholder  known to the Company to
own beneficially  more than five percent of the outstanding  Common Stock,  each
current director,  and all executive officers and directors as a group, based on
information provided to the Company by such persons. Except as otherwise stated,
each such person has sole investment and voting power with respect to the shares
set forth in the table:

                 Name and Address           Number of Shares       Percentage
                 ----------------           ----------------       ----------
Jordan Slatt                                  2,083,500(1)            7.2%
124 Sandringham Drive
North York, Ontario Canada M3H 1E3
Viktoria Benkovitch                           2,250,000(2)            7.8%
44 Cotswold Crescent, Toronto, Ontario
M2P 1N2
Jack Kachkar                                   700,000(3)             2.3%
Unit #1210, 445 Grand Bay Drive
Key Biscayne, Florida 33149
Steven Handley                                2,000,000(4)            6.9%
37 Parkland Drive
Elton, Chester
Cheshire, England CH2 4PG
Rima Goldshmidt                                200,000(5)             0.7%
103 Overbrook Place
Toronto, Ontario, Canada M3H 4P5
Colin Hunter                                  1,000,000(6)            3.4%
11 Humberclose
Widnes, Cheshire, England
Larry Stockhamer, Trustee                     7,600,000(7)           26.3%
76 Sanibel Crescent
Thornhill, Ontario, Canada L4J 8K7
Stiefel Laboratories, Inc.,                   4,000,000(8)           12.2%
which is owned by Charles Stiefel and
Family Members
255 Alhambra Circle
Coral Gables, Florida 33134
Seward Trade Ltd.                               2,300,000             8.0%
Des Bergues 11, CP, Geneva 11
Switzerland, CH-1211
J. Douglas Brown                               450,000(9)             1.5%
Sturdy's, Taston
Oxon, UK 0OX735L



                                       49
<PAGE>

                 Name and Address           Number of Shares       Percentage
                 ----------------           ----------------       ----------

Orestes L. Lugo                                350,000(10)            1.2%
3801 N.E. 207 Street, #2501
Aventura, Florida 33180
Jay M. Green                                   500,000(11)            1.7%
825 Third Avenue, 40th Floor
New York, New York 10022
All officers and directors as a group       5,200,000(12)            16.7%
   (7 persons)
-----------

(1)      Consists of 1,183,500 shares owned of record and beneficially,  700,000
         owned in his  capacity  as  trustee  of  715821  Ontario  Limited,  and
         warrants to purchase 200,000 shares.
(2)      Shares owned of record and  beneficially.  Ms. Benkovitch is the spouse
         of Dr. Jack  Kachkar,  who disclaims  any  beneficial  ownership of her
         shares.
(3)      Consists of 100,000 shares owned of record and beneficially, options to
         purchase  500,000  shares,  and  warrants to purchase  100,000  shares.
         Although Dr. Kachkar is presently one of the  beneficiaries  of the JEM
         Family Trust,  such Trust is a  discretionary  family trust for Kachkar
         family  members  in  which  the  Trustee  has  absolute  discretion  to
         determine  to pay any or part of the income or capital of the Trusts to
         the  beneficiaries and to exclude any beneficiary from any distribution
         - also see note (9) below.  Dr.  Kachkar  possesses no right to vote or
         dispose  of or  otherwise  control  any shares  held by the Trust,  and
         therefore has no direct  beneficial  ownership of shares owned by Larry
         Stockhamer as sole Trustee of the Trust.
(4)      Shares owned of record and beneficially.
(5)      Options to purchase 200,000 shares.
(6)      Consists of 600,000 shares owned of record and beneficially and options
         to purchase 400,000 shares.
(7)      Mr.  Stockhamer is the Trustee of the JEM Family Trust, a discretionary
         family trust. As Trustee of the JEM Family Trust,  Mr.  Stockhamer owns
         of record and beneficially 7,600,000 shares.
(8)      Represents  shares  issuable  upon  conversion of  a(pound)2.5  million
         Convertible Debenture which is due on March 6, 2007.
(9)      Consists of 100,000 shares owned of record and beneficially, options to
         purchase 250,000 shares and warrants to purchase 100,000 shares.
(10)     Options to purchase  350,000 shares.  (11) Options to purchase  500,000
         shares.
(12)     Includes  2,800,000 shares,  options to purchase  2,200,000 shares, and
         warrants to purchase 200,000 shares.

         The Company is not aware of any arrangement which might result in a
change in control in the future.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
          ----------------------------------------------

Organization of the Company

         Jack Kachkar,  Steven  Handley and Colin Hunter may be considered to be
the promoters who organized the Company.

         On March 26, 2003, the prior  controlling  shareholders  of the Company
sold 2,250,000 shares of common stock,  representing 45% of shares  outstanding,
to  Medira  Investments  LLC,  which  subsequently  transferred  such  shares to
Viktoria Benkovitch, the wife of Dr. Kachkar

         On April 28, 2003, the Company  acquired all outstanding  stock of Inyx
Pharma,  Ltd. in exchange for 16,000,000  shares of common stock of Inyx,  Inc.,
including  7,600,000  shares  issued to Larry  Stockhamer  as trustee of the JEM
Family Trust, of which Dr.  Kachkar's  children and other family members are the
beneficiaries, 2,000,000 shares to Mr. Handley and 600,000 shares to Mr. Hunter.
Dr.  Kachkar  disclaims  any  beneficial  ownership  of the shares  owned by Ms.
Benkovitch  or Mr.  Stockhamer.  See the  discussion  below  in  "Related  Party
Transactions."


                                       50
<PAGE>

         Dr. Kachkar has been issued stock options for a total of 500,000 shares
at an  exercise  price of $1.10 per share and has  entered  into the  Employment
Agreement described below. On August 22, 2003, he also participated in a private
placement of restricted common stock which was made to existing stockholders. He
acquired  100,000 shares at $1.00 per share in exchange for debt owed to him and
received two-year warrants to purchase one share for each share purchased in the
offering for $1.50 per share.

         Mr. Handley has entered into the Employment  Agreement described above.
Mr.  Hunter has been granted  stock  options for a total of 400,000  shares at a
price of $1.10 per share and the Employment Agreement described above.

Related Party Transactions

         On May 1, 2001, Miza UK, a subsidiary of Miza Pharmaceuticals,  Inc., a
Canadian corporation,  acquired the pharmaceutical development and manufacturing
business of CCL  Pharmaceuticals,  a division of CCL  Industries  (UK),  Limited
unrelated to the Company or any  affiliate,  for $20 million in a combination of
stock,  and  vendor  debt  and  convertible  debt  notes.  At  that  time,  Miza
Pharmaceuticals,  Inc.  was  majority  owned by Dr. Jack  Kachkar and his family
members.  Dr. Kachkar resigned as an executive officer of Miza  Pharmaceuticals,
Inc. on December 31, 2002 and as a Director of that company on May 15, 2003.

         On  September  4,  2002,  Miza  UK  was  placed  into   court-appointed
Administration. On February 2, 2003, Inyx Pharma was organized by Steven Handley
and Colin Hunter, who acquired 12.5% and 3.75% of the company, respectively, for
nominal value. On March 3, 2003, 75821 Ontario Limited  ("Ontario"),  a Canadian
entity owned by Jordon Slatt, acquired 8.75% of Inyx Pharma for services and 65%
of Inyx Pharma as trustee for the JEM Family trust ("JEM"),  whose beneficiaries
are Jack  Kachkar  and his  family.  Such  trust is  irrevocable  and  grants to
independent  trustees  the right to vote and  dispose of any stock  owned by the
trust. Therefore,  Dr. Kachkar and Mrs. Benkovitch (Dr. Kachkar's wife) disclaim
beneficial  ownership of the shares owned by the trust. JEM paid  (pound)549,900
to acquire such shares,  which were distributed from Ontario to JEM in May 2003.
The final investor in Inyx Pharma was Coral Beach Ventures, Inc., which acquired
10% of the company for (pound)750,000 on March 7, 2003.

         On March 7, 2003,  two  divisions  of Miza UK, Miza  Aerosols  and Miza
Development, were sold from the Administrator to Inyx Pharma Limited for a total
purchase price,  inclusive of working capital, of $7.1 million, plus acquisition
costs of $1.2  million.  The  acquisition  price was obtained from the foregoing
capital contributions and a loan from Venture Finance PLC.

         Then,  on April 28,  2003,  the Inyx  Pharma  stockholders  unanimously
agreed to  exchange  their  shares for an  aggregate  of 64% of the  outstanding
common stock of Doblique. At the time of the transfer,  Dr. Kachkar was the sole
director and officer of Inyx (f/k/a Doblique), and his wife, Ms. Benkovitch, was
the  owner  of 45% of the  outstanding  common  stock of Inyx  (f/k/a  Doblique)
following  the  transfer to her from  Medira  Investments,  LLC, a  wholly-owned
investment company.

         Dr.  Kachkar  acted for  Doblique  in  connection  with the Inyx Pharma
acquisition.  In  addition,  Inyx  Pharma  was  represented  by its own Board of
Directors,  officers, and separate legal counsel. Dr. Kachkar concluded that the
Inyx Pharma  transaction was fair to the  unaffiliated  stockholders of Doblique
and all other parties. Such conclusion was based upon the following factors:

         o        Doblique  received an opinion that the acquisition was fair to
                  the Doblique  stockholders from a financial point of view from
                  Jeffrey  Katz,  C.A.  Mr.  Katz  is an  independent  chartered
                  accountant  in Canada and is  experienced  in the  analysis of
                  public companies and rendering of fairness opinions.

         o        Doblique shares were trading  sporadically at prices as low as
                  $.21 per share before the  acquisition  of the control bloc by
                  Medira was  announced,  and the net book value per share as of
                  December 31, 2002 was a negative $0.03. Following announcement
                  of the change of control and closing of the  acquisition,  the
                  trading price of the Doblique stock increased to $1.55.

         o        Doblique has moved from a small  company  with limited  assets
                  and  continuing  losses from  operations to a growing  company
                  with anticipated sales in 2003 of approximately $13 million.


                                       51
<PAGE>

         The Company and Inyx Pharma previously had been without cash resources,
and Dr.  Kachkar's  family made numerous cash  advances in  anticipation  of the
acquisition of Inyx Pharma. In August 2003, $100,000 of such loans was converted
into common stock at $1.00 per share, and all other amounts have been satisfied.

         Inyx Canada  provides  management  services to Inyx and its subsidiary,
Inyx Pharma.  JK Services,  a partnership of companies  owned by Dr. Kachkar and
his immediate family members,  provides Dr.  Kachkar's  services to Inyx Canada.
Total payments to JK Services in 2003 were $980,939,  consisting of $228,125 for
recurring salary and $752,814 based on the following: In March 2003, Dr. Kachkar
agreed  to  contribute  (pound)400,000  to Inyx  Pharma  so it  could  meet  the
shareholders equity requirement of its lender Venture Finance. Such contribution
was made with an  understanding  that the  Company  would repay it when it could
meet the  financial  covenant on its own, and the  contribution  was returned in
November 2003 in the form of a payment to JK Services.  The arrangement  between
the Company and JK Services was terminated December 31, 2003.

         In April  2004,  the Company  was in the  process of  transferring  all
shares of its  subsidiary,  Inyx  Realty,  Inc.,  to First  Jemini  Trust for no
consideration,  a trust for the benefit of the Kachkar  Family.  Inyx Realty was
formed to be the lessee of an office  facility  in Miami.  The  Company  instead
determined  to lease office space in New York,  New York and had no need for the
Miami  space or its  associated  liability.  The  transfer  of Inyx  Realty will
effectively remove the long-term lease commitment liability from the Company.

         The Company believes that all of the foregoing transactions were made
on terms as favorable as could have been obtained from unrelated third parties.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

(a)      The following documents are filed as part of this Annual Report on Form
         10-KSB:

         1.       Financial  Statements:  The financial statements filed as part
                  of  this  report  are  listed  in  the  "Index  to   Financial
                  Statements" on Page F-1 hereof.

         2.       Exhibits required to be filed by Item 601 of Regulation S-B:


*2.1.1         Stock Exchange Agreement dated April 25, 2003, among Inyx Pharma,
               Doblique  and  the  Inyx  Stockholder.  (Material  schedules  are
               otherwise attached as exhibits hereto)
*3.1.1         Restated Articles of Incorporation of Inyx, Inc.
*3.2           Bylaws of Inyx, Inc.
*4             Specimen stock certificate for common shares
*10.1          2003 Stock Option Plan
*10.2          Indemnity Agreement dated April 25, 2003 among the Company, Steve
               Handley, Colin Hunter and Jack Kachkar
*10.3          Registration  Rights  Schedule to Stock Exchange  Agreement dated
               April 25, 2003
*10.4.1.1      Employment Agreement dated April 1, 2003, with Jack Kachkar
$$$10.4.1.2    Management Services Agreement dated May 15, 2003 with JK Services
$$$10.4.1.3    Employment Agreement dated January 1, 2004 with Jack Kachkar
*10.4.2        Employment Agreement dated May 1, 2003, with Steven Handley
*10.4.3        Employment Agreement dated May 1, 2003, with Colin Hunter
*10.4.4        Employment Agreement dated April 1, 2003, with Rima Goldshmidt
$10.4.4.1      Amendment  dated May 15,  2003 to  Employment  Agreement  or Rima
               Goldshmidt
$$10.4.5       Employment Agreement dated December 1, 2003 with Jay Green.
*10.5          Opinion of Jeffrey Katz, C.A.
*10.6.1        Lease  dated July 22,  1994 with the  Council  of the  Borough of
               Halton for  facilities at 6 Seymour Court,  Manor Park,  Runcorn,
               Cheshire, England
*10.6.2        Lease  dated  June  23,  1988  between   Warrington  and  Runcorn
               Development  Corp  and  MiniPak  Aerosols,   Ltd.  for  lease  of
               facilities at 10-11 Arkwright Road,  Astmoor  Industrial  Estate,
               Runcorn, Cheshire, England


                                       52
<PAGE>

*10.6.3        Lease  dated  June  23,  1988  between   Warrington  and  Runcorn
               Development  Corp  and  MiniPak  Aerosols,   Ltd.  for  lease  of
               facilities  at 1-2 Arkwright  Road,  Astmoor  Industrial  Estate,
               Runcorn, Cheshire, England
*10.7          Business  Advisory and Financial  Consulting  Services  Agreement
               with Jordan Slatt
*10.8          Agreement dated March 7, 2003 between Miza  Pharmaceuticals  (UK)
               Limited (in administration) and Inyx Pharma
*10.9.1.       Option  Agreement  dated  March 6, 2003  between  Inyx Pharma and
               Stiefel Laboratories, Inc.
*10.9.2        6%  Convertible  Promissory  Note  dated  March  6,  2003  in the
               principal  amount of  (pound)2,500,000  to Stiefel  Laboratories,
               Inc.
*10.10         Finders Fee Agreement with Saintsbury Management Corp., Grosvenor
               Trust Company, Ltd. And Liberty Management LLC
*10.11         Finders Fee Agreement with TriFinity Venture  Corporation and BPL
               Corp.
**10.12.1      All  Assets  Debenture  dated  March 7, 2003 in favor of  Venture
               Finance PLC
**10.12.2      Plant  and  Machinery  Loan  Agreement  dated  March 7, 2003 with
               Venture Finance PLC
**10.12.3      Real  Property  Loan  Agreement  dated March 7, 2003 with Venture
               Finance PLC
**10.12.4      Agreement for the Purchase of Debts with Venture Finance PLC
**10.13.1      Six percent Convertible  Promissory Note to Stiefel Laboratories,
               Inc. dated March 6, 2003
**10.13.2      Option  Agreement dated March 6, 2003 with Stiefel  Laboratories,
               Inc.
$$10.13.3      Manufacturing and Supply Agreement between Registrant and Stiefel
               Laboratories,  Inc dated March 6, 2003 (Confidentiality requested
               as to certain parts of this Agreement)
$$1.13.4       Development    Agreement    between    Registrant   and   Stiefel
               Laboratories, Inc. dated March 6, 2003 (Confidentiality requested
               as to certain parts of this agreement)
$$10.13.5      Quality  Agreement between  Registrant and Stiefel  Laboratories,
               Inc. dated March 6, 2003
***10.14       Consulting  Agreement dated June 1, 2003 with National  Financial
               Communications Corp.
***10.15       Stock  Purchase   Warrant  dated  June  26,  2003  with  National
               Financial Communications Corp.
***10.16       Stock Purchase Warrant dated June 26, 2003 with Gary Geraci
***10.17       Business  Consulting  Services  Agreement dated July 1, 2003 with
               Marc Courturier
#10.18.1       Securities  Purchase Agreement dated October 29, 2003 with Laurus
               Master Fund, Ltd.
#10.18.2       Convertible Term Note dated October 29, 2003
#10.18.3       Common Stock Purchase Warrant
#10.18.4       Registration Rights Agreement
#10.18.5       Debenture (security agreement)
#10.18.6       Charge Over Shares (pledge agreement)
#10.19         Form of Subscription Agreement for common stock placement
###10.20       Consulting  Agreement  executed  July 1, 2003 with  Patrick  W.H.
               Garrard/dba/The Garrard Group of West Redding CT
##10.20.1      Security Agreement
##10.20.2      Secured Revolving Note
##10.20.3      Secured Convertible Minimum Borrowing Note
##10.20.4      Common Stock Purchase Warrant
###10.21       Public Relations  Agreement with Capital  Financial Media,  Inc.,
               dated August 15, 2003
$$10.22        Investment  banking  agreement  with Duncan  Capital  LLC,  dated
               August 25, 2003
###10.23.1     Stock Purchase Warrant for  200,000shares of the Company's common
               stock with Patrick  W.H.  Garrard/dba/The  Garrard  Group of West
               Redding CT, dated July 1, 2003
###10.23.2     Stock Purchase Warrant for 100,000 shares of the Company's common
               stock with Capital Financial Media, Inc., dated August 15, 2003
###10.23.4     Stock Purchase Warrant for 100,000 shares of the Company's common
               stock with Dr. Jack Kachkar, dated August 22, 2003
###10.23.5     Stock Purchase Warrant for 200,000 shares of the Company's common
               stock with Mr. Jordan Slatt, dated August 22, 2003
###10.23.6     Stock Purchase  Warrant for 50,000 shares of the Company's common
               stock with Saintsburg Management Corp., dated August 22, 2003
###10.23.7     Stock Purchase  Warrant for 50,000 shares of the Company's common
               stock with Liberty Management, LLC, dated August 22, 2003
###10.23.8     Stock Purchase Warrant for 300,000 shares of the Company's common
               stock with Duncan Capital LLC, dated August 25, 2003
###10.23.9     Stock Purchase  Warrant for 20,000 shares of the Company's common
               stock with Mr. Rick Iler, dated September 12, 2003
$$$21.1        Subsidiaries of Registrant
$$$23.1        Consent of Berkovits, Lago & Company, LLP


                                       53
<PAGE>

$$$31.1        Certification of Chief Executive Officer under Section 302 of the
               Sarbanes-Oxley Act of 2002
$$$31.2        Certification of the Chief Financial Officer under Section 302 of
               the Sarbanes-Oxley Act of 2002
$$$32.1        Certification  of the Chief  Executive  Officer  under 18 USC ss.
               1350,  as adopted  pursuant to Section 906 of the  Sarbanes-Oxley
               Act of 2002
$$$32.2        Certification  of the  Chief  Financial  Officer  under 18 USCss.
               1350,  as adopted  pursuant to Section 906 of the  Sarbanes-Oxley
               Act of 2002
----------------------
*        Filed as  exhibit  to the Form 8K filed May 13,  2003 and  incorporated
         herein by reference
**       Filed as  exhibit to Form 8K/A  filed  June 24,  2003 and  incorporated
         herein by reference
***      Filed as exhibit to Form 10-QSB filed August 19, 2003 and  incorporated
         herein by reference
#        Filed as exhibit to Form 8-K filed  November  3, 2003 and  incorporated
         herein by reference
##       Filed as  exhibit to Form 8-K filed  January  6, 2004 and  incorporated
         herein by reference
###      Filed  as  exhibit  to  Form  10-QSB   filed   November  14,  2003  and
         incorporated herein by reference
$        Filed as exhibits to Form SB2 File No.  333-112902  dated  February 17,
         2004 and incorporated herein by reference
$$       Filed as exhibits  to Form 8K/A filed  March 14, 2004 and  incorporated
         herein by reference
$$$      Filed herewith

(b)      Reports on Form 8-K

                  Form 8K dated  October 8, 2003  reporting a financial  release
                  under Items 9 and 12.
                  Form 8K dated  October 16, 2003  reporting a press release and
                  election of a director under Items 5 and 7.
                  Form 8K dated  October 26, 2003  reporting a loan  transaction
                  under Items 5 and 7.
                  Form 8K dated November 13, 2003 reporting a financial  release
                  under Items 7, 9 and 12.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
         --------------------------------------

         The Audit Committee has appointed Berkovits Lago & Company,  LLP as the
Company's independent auditor's for 2003.

         For 2003,  Berkovits Lago & Company, LLP has billed the Company for the
services described below:

         Audit Fees.  Berkovits  Lago & Company's fees for the review of interim
financial  statements for the quarters  ended March 31, 2003,  June 30, 2003 and
September 31, 2003 were $18,200. Berkovits Lago & Company also billed $15,000 as
a retainer in connection with the Company's audit for the year ended 2003.

         Audit-Related Fees.  None.
         ------------------

         Tax Fees.  None.
         --------

         All Other  Fees.  During  2003,  the  Company  paid  $75,000 in fees to
Berkovits Lago & Company for the audit of Miza  Pharmaceutical  (UK) Limited for
the year ended  December 31, 2002 and December 31, 2001 in  connection  with the
amended  form  8k  filing  of  the  Inyx  Pharma  transaction  as a  Significant
Acquisition.  In 2003,  the Company also paid  Berkovits  Lago & Company fees of
$65,700 in connection with client assistance services which included $25,000 for
the review of internal controls and due diligence,  $2,500 as a retainer for the
Company's SB-2  registration  statement,  $3,200 for services in connection with
the Company's S-8 and Form 8k filings,  $10,000 for consulting  services related
to the Company's  proposed business  acquisitions,  and $25,000 for consultation
services and the associated review and filing of the necessary documentation for
the Inyx Pharma transaction. None in 2002.

         The Audit  Committee is required to pre-approve the audit and non-audit
services to be performed by the independent  auditor in order to assure that the
provisions of such services  does not impair the  auditor's  independence.  This
review and approval will take place on an annual basis and  periodically  during
the year.


                                       54
<PAGE>

                                   SIGNATURES

         Pursuant to the requirements of the Securities Act, the Company and has
duly caused this  Annual  Report to be signed on its behalf by the  undersigned,
thereunto duly authorized,  in the City of New York, State of New York, on April
12, 2004.

                           INYX, INC.



                           By:  /S/ Jack Kachkar
                              -------------------------------------------------
                              Jack Kachkar, Chairman and Chief Executive Officer

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

Name                               Office                              Date
----                               ------                              ----

/s/ Jack Kachkar         Chairman, Chief Executive                April 12, 2004
-------------------      Officer and Director
Jack Kachkar             (Principal Executive Officer)




/s/ Rima Goldshmidt      Vice President and Acting Chief          April 12, 2004
-------------------      Financial Officer (Principal Financial
Rima Goldshmidt          and Accounting Officer)




/s/ Steven Handley       President and Director                   April 12, 2004
-------------------
Steven Handley



/s/ Douglas Brown        Director                                 April 12, 2004
-------------------
Douglas Brown



/s/ Orestes L. Lugo      Director                                 April 12, 2004
-------------------
Orestes L. Lugo



/s/ Colin Hunter         Vice President and Director              April 12, 2004
-------------------
Colin Hunter



                                       55
<PAGE>

                                                    INYX, INC.

                                                 TABLE OF CONTENTS

Financial Statements of Inyx, Inc.

                                                                            Page

Independent Auditors' Reports                                                F-2

Financial Statements:

         Consolidated Balance Sheet - December 31, 2003                      F-4

         Consolidated Statements of Operations - Years Ended
              December 31, 2003 and 2002                                     F-5

         Consolidated Statements of Stockholders' Equity and
              Other Comprehensive Loss -
              Years Ended December 31, 2003 and 2002                         F-6

         Consolidated Statements of Cash Flows - Years Ended
              December 31, 2003 And 2002                                     F-7

         Notes To Financial Statements                                       F-8

         Pro Forma Financial Stataments                                     F-22



                                       56
<PAGE>


                          INDEPENDENT AUDITOR'S REPORT


To the Board of Directors of
Inyx, Inc. (formerly known as Doblique, Inc.)


We have audited the balance  sheet of Inyx,  Inc.  (formerly  known as Doblique,
Inc.) (the  "Company")  as of December  31, 2003 and the related  statements  of
operations,  changes in  stockholders'  equity  (deficit) and cash flows for the
year then  ended.  These  financial  statements  are the  responsibility  of the
Company's  management.  Our  responsibility  is to  express  an opinion on these
financial statements based on our audit.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of Inyx, Inc. (formerly known as
Doblique,  Inc.) as of December 31, 2003 and the results of its  operations  and
its cash flows for the year then ended in conformity with accounting  principles
generally accepted in the United States of America.




/s/ Berkovits, Lago & Company, LLP

Ft. Lauderdale, Florida
April 9, 2004



                                      F-2




<PAGE>

                          INDEPENDENT AUDITOR'S REPORT


To the Board of Directors of
Inyx, Inc. (Miza Pharmaceuticals (UK) Limited)


We have audited the balance  sheet (not  presented  seperately  herein) of Inyx,
Inc. (the successor to Miza  Pharmaceuticals (UK) Limited) (the "Company") as of
December  31,  2002  and  the  related  statements  of  operations,  changes  in
stockholders'  equity  (deficit)  and cash flows for the year then ended.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all  material   respects,   the   financial   position  of  Inyx,   Inc.   (Miza
Pharmaceuticals  (UK)  Limited) as of  December  31, 2002 and the results of its
operations  and its cash  flows  for the year  then  ended  in  conformity  with
accounting principles generally accepted in the United States of America.

As  discussed  more fully in Notes 1 and 13 to the  financial  statements,  Miza
Pharmaceuticals (UK) Limited was placed under supervision of an Administrator in
accordance  with the United  Kingdom  Insolvency  Act of 1986. On March 7, 2003,
while under the supervision of the  Administrators,  Miza  Pharmaceuticals  (UK)
Limited  sold the  majority of its  property,  plant and  equipment,  inventory,
customer base and  intellectual  property to INyX Pharma,  Ltd., a subsidiary of
the Company and the designated successor of Miza Pharmaceuticals (UK) Limited.



/s/ Berkovits, Lago & Company, LLP

Ft. Lauderdale, Florida
May 19, 2003

                                      F-3
<PAGE>


                                   INYX, INC.
                           Consolidated Balance Sheet
                    (Expressed in thousands of U.S. dollars)
                                December 31, 2003



                                     Assets
                                     ------


Current assets:
     Cash                                                           $       796
     Accounts receivable, net                                             3,395
     Inventory, net                                                       1,089
     Prepaid expenses and other current assets                            1,089
                                                                    -----------
           Total current assets                                           6,369
                                                                    -----------

Property, plant and equipment, net                                        5,183
Deferred financing costs, net and other assets                              905
Deferred tax asset                                                        1,294
                                                                    -----------
                                                                          7,382
                                                                    -----------

           Total assets                                             $    13,751
                                                                    ===========

                      Liabilities and Stockholders' Deficit

Current liabilities:
     Borrowings under revolving line of credit                      $     3,133
     Accounts payable                                                     2,178
     Accrued expenses and other current liabilities                         996
     Current portion of long-term debt                                    1,483
                                                                    -----------
           Total current liabilities                                      7,790
                                                                    -----------

Long-term debt, net of current portion                                    7,439
                                                                    -----------
           Total liabilities                                             15,229
                                                                    -----------

Commitments and contingencies
Subsequent events

Stockholders'
deficit:
     Preferred stock - $0.001 par value, 10,000,000 shares
     authorized -0- shares issued and outstanding                          --
     Common stock - $0.001 par value, 150,000,000 shares
     authorized, 28,525,000 shares issued
     and outstanding                                                         29
     Additional paid-in capital                                          11,584
     Accumulated deficit                                                (12,696)
     Subscriptions receivable                                              (100)
     Accumulated other comprehensive loss -
     foreign currency translation adjustment                               (295)
                                                                    -----------
           Total stockholders' deficit                                   (1,478)
                                                                    -----------

Total liabilities and stockholders' deficit                         $    13,751
                                                                    ===========


The  accompanying  notes are an integral  part of these  consolidated  financial
statements


                                       F-4

<PAGE>

                                   INYX, INC.
                      Consolidated Statements of Operations
       (Expressed in thousands of U.S. dollars, except per share amounts)
                        For the years ended December 31,




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

Net revenues                                       $     13,099    $     24,644
Cost of goods sold                                       10,634          20,772
                                                   ------------    ------------
      Gross profit                                        2,465           3,872

Expenses:
    General and administrative expenses                   6,477           6,850
    Selling expenses                                        260             376
    Depreciation and amortization                           387           1,257
                                                   ------------    ------------

             Total operating expenses                     7,124           8,483
                                                   ------------    ------------
Loss from operations before
    other expenses                                       (4,659)         (4,611)

Other expenses                                           (9,110)        (26,729)
                                                   ------------    ------------
Loss before income tax benefit
    and discontinued operations                         (13,769)        (31,340)

Income tax benefit                                        1,294             352
                                                   ------------    ------------

Loss from continuing operations                         (12,475)        (30,988)

Loss from discontinued operations, net of tax               (25)           --
                                                   ------------    ------------

Net loss                                           $    (12,500)   $    (30,988)
                                                   ============    ============
Loss per share of common stock
    outstanding-basic and fully diluted
    from continuing operations                     $      (0.55)   $      (1.94)
                                                   ============    ============
Weighted-average number of shares
  outstanding - basic and fully diluted              22,857,260      16,000,000
                                                   ============    ============



The  accompanying  notes are an integral  part of these  consolidated  financial
statements


                                       F-5

<PAGE>
<TABLE>
<CAPTION>

                                   INYX, INC.
         Consolidated Statements of Changes in Stockholders' Equity and
                            Other Comprehensive Loss
                    (Expressed in thousands of U.S. dollars)
                 For the years ended December 31, 2003 and 2002



                                                   Common Stock             Additional        Stock
                                             Number of                       Paid-in       Subscription
                                              Shares         Par Value       Capital        Receivable
                                           ------------    ------------    ------------    ------------
<S>                                        <C>             <C>             <C>             <C>

Balances at
 January 1, 2002                                 16,000    $         16    $      8,006    $       --

Net loss for the year                              --              --              --              --

Foreign currency translation
   adjustment                                      --              --              --              --
                                           ------------    ------------    ------------    ------------

Balances at
  December 31, 2002                              16,000              16           8,006            --

Administration settlement
adjustments/recapitalization                       --              --            (5,925)           --

Issuance of Stock for finders fees
on April 17, 2003                                 2,450               2           1,302            --

Issuance of Stock for services
On April 17, 2003                                 1,500               2             799            --

Issuance of Stock for reverse
acquisition of Doblique Inc.
on April 28, 2003                                 5,000               5             214            --

Issuance of Stock net of  offering costs
of $11,800 on August 22, 2003                       500               1             488            --

Subscriptions receivable                           --              --              --              (100)

Issuance of Stock net of  offering costs
of $310,702 on November 4, 2003                   3,000               3           2,686            --

Issuance of Stock for options
exercised on November 17, 2003                       75               0              90            --

Issuance of stock options                         1,513           1,513

Issuance of Warrants for services                  --              --             2,411            --

Net loss for the period                            --              --              --              --

Foreign currency translation
   adjustment                                      --              --              --              --

                                           ------------    ------------    ------------    ------------
Balance at December 31, 2003                     28,525    $         29    $     11,584    $       (100)
                                           ------------    ------------    ------------    ------------

The  accompanying  notes are an integral  part of these  consolidated  financial
statements


                                       F-6

<PAGE>

                                   INYX, INC.
         Consolidated Statements of Changes in Stockholders' Equity and
                      Other Comprehensive Loss (continued)
                    (Expressed in thousands of U.S. dollars)
                 For the years ended December 31, 2003 and 2002






                                             Accumu-
                                              lated
                                              Other
                                             Compre-           Accumu-
                                             hensive           lated
                                              loss            Deficit          Total
                                           ------------    ------------    ------------

Balances at
 January 1, 2002                           $       (771)   $        524    $      7,775

Net loss for the year                              --           (30,988)        (30,988)

Foreign currency translation
   adjustment                                      (732)           --              (732)
                                           ------------    ------------    ------------

Balances at
  December 31, 2002                              (1,503)        (30,464)        (23,945)

Administration settlement
adjustments/recapitalization                      1,503          30,464          26,042

Issuance of Stock for finders fees
on April 17, 2003                                  --              --             1,304

Issuance of Stock for services
On April 17, 2003                                  --              --               801

Issuance of Stock for reverse
acquisition of Doblique Inc.
on April 28, 2003                                  --              (196)             23

Issuance of Stock net of  offering costs
of $11,800 on August 22, 2003                      --              --               489

Subscriptions receivable                           --              --              (100)

Issuance of Stock net of  offering costs
of $310,702 on November 4, 2003                    --              --             2,689

Issuance of Stock for options
exercised on November 17, 2003                     --              --                90

Issuance of stock options

Issuance of Warrants for services                  --              --             2,411

Net loss for the period                            --           (12,500)        (12,500)

Foreign currency translation
   adjustment                                      (295)           --              (295)

                                           ------------    ------------    ------------
Balance at December 31, 2003               $       (295)        (12,696)   $     (1,478)
                                           ------------    ------------    ------------
</TABLE>




The  accompanying  notes are an integral  part of these  consolidated  financial
statements

                                      F-7
<PAGE>
<TABLE>
<CAPTION>

                                   INYX, INC.
                      Consolidated Statements of Cash Flows
                    (Expressed in thousands of U.S. dollars)
                        For the years ended December 31,


                                                                     2003        2002
                                                                   --------    --------
<S>                                                                <C>         <C>
Cash flows from operating activities:
    Net loss                                                       $(12,500)   $(30,988)
    Adjustments to reconcile net loss from continuing operations
      to net cash (used in) provided by operating activities:
      Depreciation                                                      347       1,257
      Amortization of financing costs                                    40        --
      Deferred tax asset                                             (1,294)
      Issuance of stock for services                                  2,101        --
      Issuance of options                                             1,513        --
      Issuance of warrants for consulting and promotional fees        2,411        --
      Issuance of shares in  recapitalization                         2,081        --
      Reorganization and administration costs                          --        25,049
      Reserve for inventory obsolescence                                207         713
      Provision for bad debt                                            191       1,386
    Changes in assets and liabilities
      (Increase) decrease in accounts receivables                    (3,586)        152
      (Increase) decrease in inventory                               (1,296)        726
      (Increase) in prepaid and other current assets                   (783)       (283)
      Increase in accounts payable and
      accrued liabilities                                             2,891       3,017
      (Increase) in deferred financing costs and other assets          (900)       --
      Increase in liabilities subject to compromise                    --         2,210
                                                                   --------    --------
    Net cash (used in) provided by continuing
      operations                                                     (8,577)      3,239

    Net cash provided from discontinuing
      operations                                                         50        --
                                                                   --------    --------
          Net cash (used in) provided by operating activities        (8,527)      3,239
                                                                   --------    --------

Cash flows from investing activities:
    Purchase of fixed assets                                         (5,221)     (1,776)
    Goodwill and acquisition costs                                     --          (190)
                                                                   --------    --------

          Net cash used in investing activities from
           continuing  operations                                    (5,221)     (1,966)
                                                                   --------    --------

Cash flows from financing activities:
    Advances by stockholder                                             450        --
    Repayment to stockholder                                           (450)       --
    Borrowings under revolving line of credit                         7,520        --
    Repayment of borrowings under revolving line of credit           (3,350)       --
    Proceeds from issuance of long term debt                          7,376       8,610
    Repayment of long term debt                                      (3,013)     (9,693)
    Payment of loan fees                                               (900)       --
    Proceeds from issuance of stock, net of issue
      costs of $323,000                                               2,978        --
    Proceeds from exercise of stock options                              90        --
    Proceeds from issuance of promissory note                         4,013        --
    Proceeds from demand notes                                          100        --
    Advances to affiliates and related parties                         --          (652)
                                                                   --------    --------

          Net cash provided by (used in) financing activities
          from continuing operations                                 14,814      (1,735)
                                                                   --------    --------

Effect of foreign exchange rate changes
    on cash                                                            (295)        (72)

Increase (decrease) in cash                                             771        (534)

Cash at beginning of period                                              25         534
                                                                   --------    --------

Cash at end of period                                              $    796    $   --
                                                                   ========    ========
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements

                                       F-7

<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
               (Tabular amounts expressed in thousand of dollars)
                     Years ended December 31, 2003 and 2002


NOTE 1:  BUSINESS DESCRIPTION AND PRESENTATION
------   -------------------------------------

         Inyx, Inc. (the  "Company") was  incorporated on March 28, 2000, in the
State of Nevada, under the name Doblique,  Inc.  ("Doblique").  As Doblique, the
Company was engaged in the business of breeding and racing  thoroughbred  horses
at various major horse racing venues  throughout the United States.  On March 6,
2003,  management  decided  to  discontinue  the  Company's  thoroughbred  horse
operation by selling the assets of that  operation to a third party.  Concurrent
with the  discontinuance of its horse racing  operations,  Doblique  concluded a
reverse acquisition of Inyx Pharma Limited ("Inyx Pharma"), and changed its name
to Inyx, Inc. ("Inyx").

         Inyx Pharma's  business  emerged from its  acquisition of the assets of
Miza  Pharmaceuticals,  Ltd.  (Miza  UK) on March 7,  2003.  Miza UK had been an
operating  entity which filed for  bankruptcy and  reorganization  in the United
Kingdom on  September 3, 2002.  During the period  September 3, 2002 to March 6,
2003, Miza UK's  court-appointed  Administrator  settled certain  liabilities of
Miza UK and sold or  discontinued  certain of its  assets.  The net  adjustments
resulting during the bankruptcy and  reorganization  period of approximately $26
million are presented in the consolidated statements of changes in stockholders'
equity.

         The  acquisition  of Inyx Pharma was  consummated on April 28, 2003, by
exchanging  16  million  shares  of the  Company's  restricted  common  stock in
exchange for 100% of the outstanding common stock of Inyx Pharma. As a result of
the  exchange,   the   stockholders   of  Inyx  Pharma  became  the  controlling
stockholders of the Company. In the aggregate they hold approximately 64% of the
Company's  outstanding  shares.  The  acquisition  has been  accounted  for as a
capital  transaction  under the reverse  acquisition  method of  accounting  for
business combinations.  Under this method, Inyx Pharma (the legal subsidiary) is
considered to have acquired Inyx,  Inc. (the legal parent)  effective  April 28,
2003 and continued as Inyx, Inc. thereafter.  The net assets of Inyx Pharma were
recorded at carrying value with no recognition of goodwill.

         Inyx,  through its wholly-owned  subsidiaries,  Inyx Pharma Limited and
Inyx Canada,  Inc.,  is specialty  pharmaceutical  company  which focuses on the
development and  manufacturing  of  prescription  and  over-the-counter  ("OTC")
aerosol pharmaceutical products and drug delivery technologies for the treatment
of respiratory,  allergy,  dermatological and topical conditions.  Inyx's client
base primarily consists of large ethical  pharmaceutical  corporations,  branded
generic pharmaceutical distributors, and biotechnology companies.

         The accompanying  consolidated  financial statements of the Company for
the year ended December 31, 2003 include the operations of Inyx, Inc. from April
28, 2003 to December 31, 2003. As a result of the reverse  acquisition method of
accounting,  the audited  consolidated  financial  statements for the year ended
December 31, 2002 presented herein as the historical financial statements of the
combined enterprise, reflect the financial position and results of operations of
Miza  UK  the  predecessor  company  of  Inyx  Pharma.  Thus,  unless  otherwise
indicated,  all  historical  operational  information  for  2002 is based on the
historical operations of Miza UK.

         The  Company  manages its  operations  and  business  as one  operating
segment.

                                      F-8

<PAGE>

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------   ------------------------------------------

a)       Consolidation
         -------------

         The accompanying consolidated financial statements include the accounts
of Inyx,  Inc.  and its wholly  owned  subsidiaries:  Inyx  Pharma  Limited,  an
operating company formed under the laws of England and Wales; Inyx Canada, Inc.,
a federally incorporated Canadian Corporation;  and Inyx Realty, Inc., a Florida
corporation.  All intercompany accounts and transactions have been eliminated in
consolidation.

b)       Use of Estimates
         ----------------

         The consolidated  financial  statements are prepared in conformity with
accounting  principles  generally accepted in the United States of America.  The
preparation of consolidated  financial statements,  in conformity with generally
accepted  accounting  principles,  requires  management  to make  estimates  and
assumptions.  Those  estimates and  assumptions  affect the reported  amounts of
assets and liabilities, the disclosure of contingent assets and liabilities, and
the reported amounts of revenues and expenses.  Actual results could differ from
those estimates.

         Estimates and assumptions are periodically  reviewed and the effects of
any material revisions are reflected in the consolidated financial statements in
the period that they are determined to be necessary.

c)       Accounts Receivable
         -------------------

         Accounts  receivable  are  stated at net  realizable  value,  net of an
allowance for doubtful accounts.  Periodically,  management reviews all accounts
receivable and based on an assessment of whether they are collectible, estimates
the  portion,  if any, of the  balance  that will not be  collected  in order to
establish an allowance for doubtful  accounts.  Such  allowance was based on the
specific  identification  of accounts  deemed  uncollectible  as of December 31,
2003.  The  provision  for the  allowance  for doubtful  accounts is included in
General and Administrative expenses, in the accompanying  consolidated statement
of operations.

d)       Inventory
         ---------

         Inventory  is  valued  using  the  first-in  and  first-out  method  of
accounting and is stated at the lower of cost or net realizable value.

e)       Property, Plant and Equipment
         -----------------------------

         Property,  plant and  equipment is stated at cost,  net of  accumulated
depreciation and  amortization,  which is provided for by charges to income over
the  estimated  useful life of the assets  using the straight  line method.  The
useful life of assets ranges from 3-10 years for  equipment,  and up to 25 years
for buildings.  Leasehold improvements and capital leases are amortized over the
life of the  related  lease.  Expenditures  that  extend the useful  life of the
respective  assets  are  capitalized  and  depreciated  over  the  lives  of the
respected  asset.  Maintenance,  repairs and other  expenses  that do not extend
their useful life are expensed as incurred.

f)       Business Combinations
         ---------------------

         The Company accounts for business  combinations in accordance with FASB
141  Business  Combinations.  Business  combinations  that  qualify  as  reverse
acquisitions  with  public  shells are  accounted  for as  capital  transactions
without the recognition of goodwill. Whereas, business combinations which do not
meet the latter criteria are accounted for under the purchase method.  Where any
excess  of the  purchase  price  over the  estimated  fair  value of net  assets
acquired is recorded as goodwill. SFAS 141 requires that goodwill and intangible


                                      F-9

<PAGE>

assets with indefinite  useful lives no longer be amortized,  but instead tested
for impairment at least  annually by comparing  carrying value to the respective
fair value in accordance  with the provisions of SFAS 142. SFAS 142 Goodwill and
Other Intangible Assets. This pronouncement also requires that intangible assets
with estimable useful lives be amortized over their respective  estimated useful
lives to their  estimated  residual  values,  and  reviewed  for  impairment  by
assessing the  recoverability  of the carrying value. As of January 1, 2003, the
Company adopted the provisions of SFAS 141 and SFAS 142.

g)       Deferred Financing Costs
         ------------------------

         Costs directly  associated with obtaining financing are capitalized and
amortized on a  straight-line  basis over the  estimated  life of the  financing
arrangement.

h)       Impairment of Long Lived Assets
         -------------------------------

         The  Company  reviews  the  carrying  value of its long  lived  assets,
including intangibles, whenever events or changes in circumstances indicate that
the historical cost-carrying value of an asset may no longer be appropriate. The
Company  assesses  recoverability  of  the  carrying  value  of  the  assets  by
estimating  the  future  net cash  flows  expected  to result  from the  assets,
including eventual  disposition.  If the future net cash flows are less then the
carrying  value of the assets,  an  impairment  loss is  recorded,  equal to the
difference  between the asset's carrying value and its fair value. In performing
such reviews,  management takes into  consideration the current operating levels
including any idle capacity,  alternative uses for production  utilizing current
equipment, and growth trends and industry projections.

i)       Financial Instruments
         ---------------------

         Financial  instruments consist of cash, accounts  receivable,  accounts
payable, accrued liabilities,  borrowings under the revolving line of credit and
loans payable.  Non-derivative  financial instruments include letters of credit,
commitments  to extend credit and  guarantees of debt.  There were no derivative
financial  instruments  at  December  31,  2003.  The  carrying  values of these
financial  instruments  approximate  their fair market  value as of December 31,
2003.

j)       Revenue Recognition
         -------------------

         The  Company   recognizes   revenue  (1)  persuasive   evidence  of  an
arrangement exists; (2) delivery has occurred or services rendered;  (3) the fee
is fixed or determinable;  and (4) collectibillity is reasonably assured.  Under
the  provisions of SAB 101,  revenues are recognized  FOB shipping  point,  when
products are shipped,  which is when legal title and risk of loss is transferred
to the Company's  customers,  and is recorded at the net invoiced value of goods
supplied to customers  after  deduction of sales  discounts  and sales and value
added tax, where applicable. In situations where the Company receives payment in
advance of the  performance of research and development  services,  such amounts
are deferred and recognized as revenue as the related services are performed. In
2003,  deferred  revenue  amounting to $351,000 is included in accrued and other
liabilities.

         Non-refundable  fees are  recognized  as  revenue  over the term of the
arrangement,  based on the percentage of costs incurred to date, estimated costs
to  complete  and total  expected  contract  revenue.  Product  returns  are not
accepted.

         Shipping  costs are paid for by the Company's  customers.  Any shipping
and handling  costs  incurred by the company are included in costs of goods sold
in the accompanying consolidated statements of operations.

k)       Loss per Share
         --------------

         The Company  applies  Statement of Financial  Accounting  Standards No.
128,  Earnings  Per Share (FAS 128).  Basic loss per share  ("LPS") is  computed
using the  weighted  average  number of common  shares  outstanding  during  the
period.  Diluted LPS is computed using the weighted average number of common and


                                      F-10

<PAGE>

dilutive  potential  common  shares  outstanding  during  the  period.  Dilutive
potential  common shares consist of common stock issuable upon exercise of stock
options and warrants using the treasury stock method. No adjustments to earnings
were made for purposes of per share calculations. The Company has reported a net
loss for the years ended December 31, 2003 and 2002. As a result,  4,800,000 and
5,485,000  shares of common  stock,  which may be issued upon  exercise of stock
options and warrants  respectively,  have been excluded from the  calculation of
diluted loss per share,  for the year ended  December 31,  2003,  because  their
inclusion would be  anti-dilutive.  There were no options or warrants granted in
2002.

l)       Stock Based Compensation
         ------------------------

         On May 1, 2003 the Company  adopted a Stock Option Plan which  provides
for the granting of incentive  stock options and non qualified stock options for
the benefit of employees,  officers, consultants and directors and those persons
who the Company  believes may have made a valuable  contribution to the Company.
The total  number  of  shares  that may be  issued  under  the plan  amounts  to
5,000,000.  The  exercise  price  per share  must be at least  equal to the fair
market price at the time of grant. The Company granted  4,800,000 options during
the year ended December 31, 2003.

         The Company  applies the fair value method of SFAS No. 123,  Accounting
for Stock Based  Compensation  ( SFAS 123) in  accounting  for its stock  option
plan,  the fair value of each option  granted was estimated on the date of grant
using the  Black-Scholes  option  pricing  model.  The fair  value of all option
granted has been charged to salaries,  wages,  and benefits in  accordance  with
SFAS No. 123.

m)       Concentration of Credit Risk
         ----------------------------

         The Company obtains detailed credit evaluations of customers  generally
without  requiring  collateral,  and  establishes  credit  limits  as  required.
Exposure to losses on receivables is  principally  dependent on each  customer's
financial  condition.  The Company  monitors its exposure for credit risk losses
and maintains an allowance for anticipated  losses. For the years ended December
31, 2003 and 2002, the Company's three largest  customers  accounted for 42% and
51% of net revenues and 57% and 24% of net receivables,  respectively.  The loss
of any of these  customers may have a material  adverse effect on the operations
of the Company.

n)       Income Taxes
         ------------

         The Company has adopted Statement of Financial Accounting Standards No.
109 - Accounting for Income Taxes (SFAS No. 109). This standard requires the use
of an asset and  liability  approach for financial  accounting  and reporting on
income taxes.  If it is more likely than not that some portion of a deferred tax
asset will not be realized, a valuation allowance is recognized.

o)       Translation of Foreign Currency
         -------------------------------

         The functional  currency of the Company's U.K.  subsidiary is the Great
Britain Pound. The Company's financial  statements are reported in United States
Dollars (the  "Dollar" ) and are  translated  in  accordance  with  Statement of
Financial  Accounting  Standards No. 52 Foreign Currency  Translation  (SFAS No.
52), which requires that foreign  currency  assets and liabilities be translated
using the  exchange  rates in effect  at the  balance  sheet  date.  Results  of
operations are translated using the average exchange rates prevailing during the
period.  For purposes of SFAS No. 52, the Company considers the Dollar to be the
reporting  currency.   The  effects  of  unrealized  exchange   fluctuations  on
translating foreign currency assets and liabilities into Dollars are accumulated
as a cumulative translation adjustment which is included as a separate component
in  stockholders'  equity.  Realized  gains and  losses  from  foreign  currency
transactions are included in the results of operation for the period.

p)       Recently Issued Accounting Standards
         ------------------------------------

         In January 2003,  the Company  adopted the  provisions of SFAS No. 143,
Accounting for Asset Retirement  Obligations.  SFAS No. 143 addresses accounting
and  reporting  for  obligations  associated  with the  retirement  of  tangible


                                      F-11

<PAGE>

long-lived  assets and the associated asset retirement  costs. As of the date of
adoption of SFAS 143, the Company had no tangible long-lived assets.  During the
second  quarter of 2003,  the Company,  through the reverse  acquisition of Inyx
Pharma  acquired  property,  plant and  equipment,  including the  manufacturing
facility for CFC-based  inhalers.  The Company  evaluates the carrying  value of
property plant and equipment to determine  whether there is any impairment.  Our
evaluations have indicated no such impairment to date.  Management believes that
as the Company  increases its marketing and commercial  activities in the United
States and Latin  America where the market for  CFC-based  respiratory  inhalers
still exists, the Company will be increasingly utilizing its production line for
such products and any idle capacity will be eliminated.

         In January 2003,  the Company  adopted the  provisions of SFAS No. 146,
Accounting for Costs Associated with Exit or Disposal  Activities.  SFAS No. 146
requires  that a  liability  for a cost  associated  with an  exit  or  disposal
activity  be  recognized  when the  liability  is  incurred  rather  than when a
commitment to an exit plan is made.  The adoption of SFAS No. 146 did not have a
material impact on the Company's consolidated financial statements.


         In January 2003,  the Company  adopted the  provisions of SFAS No. 148,
Accounting  for  Stock-Based  Compensation  --  Transition  and  Disclosure,  an
Amendment of FASB  Statement No. 123. SFAS No. 148 provides  alternatives  for a
voluntary  change to the fair value based method of accounting  for  stock-based
employee  compensation.   In  addition,  SFAS  No.  148  amends  the  disclosure
requirements  of SFAS No.  123,  Accounting  for  Stock-Based  Compensation,  to
require prominent  disclosures in annual and interim financial  statements about
the method of accounting for stock-based employee compensation and the effect in
measuring  compensation  expense.  The  Company  will  continue  to account  for
stock-based compensation using the intrinsic value method and it has adopted the
disclosure requirements of SFAS No. 148.


         In April 2003, the FASB issued SFAS No. 149, Amendment of Statement 133
on Derivative  Instruments  and Hedging  Activities,  which amends and clarifies
accounting for derivative instruments,  including certain derivative instruments
embedded in other contracts,  and for hedging  activities under SFAS No. 133 and
is effective for  contracts  entered into or modified  after June 30, 2003.  The
adoption  of SFAS  No.  149 did not  have a  material  effect  on the  Company's
consolidated   financial  statements.   The  Company  does  not  currently  have
derivative instruments or hedging activities.  However, the Company is currently
in the processes of setting up an  arrangement  with a financial  institution to
participate in currency forward contracts for the purpose of mitigating  foreign
exchange fluctuations.


         In May 2003,  the FASB  issued  SFAS No.  150,  Accounting  for Certain
Financial  Instruments with Characteristics of both Liabilities and Equity. SFAS
No. 150 provides guidance with respect to the  classification and measurement of
certain  financial  instruments  with  characteristics  of both  liabilities and
equity.  This statement requires that an issuer classify a financial  instrument
that is within its scope as a liability rather than, under previous guidance, as
equity.  SFAS No. 150 is effective  for  financial  instruments  entered into or
modified  after May 31, 2003, and otherwise is effective at the beginning of the
first interim period beginning after June 15, 2003. The adoption of SFAS No. 150
did  not  have  a  material  effect  on  the  Company's  consolidated  financial
statements.

q)       Reclassifications
         -----------------

         Certain amounts in the 2003 and 2002 consolidated  financial statements
have been reclassified to conform to the 2003 presentation.



                                      F-12

<PAGE>

NOTE 3:  ACCOUNTS RECEIVABLE, NET
------   ------------------------

         Accounts receivable consists of the following as of December 31, 2003:




Trade  receivables                                                   $    3,586
Less: Allowance for doubtful accounts                                      (191)
                                                                     ----------

                                                                     $    3,395
                                                                     ==========

         There were no write offs druing 2003. (In 2003, wrtie offs approximated
at $1,781,000)

NOTE 4:  INVENTORY, NET
------   --------------

         Inventory is comprised of the following as of December 31, 2003:


Finished goods                                                       $       15
Work in process                                                             266
Raw materials                                                             1,015
                                                                     ----------
                                                                          1,296
Less: Provision for obsolescence                                           (207)
                                                                     ----------

                                                                     $    1,089
                                                                     ==========


NOTE 5:  PREPAID EXPENSES AND OTHER CURRENT ASSETS
------   -----------------------------------------

         Prepaid  expenses and other current  assets consist of the following as
of December 31, 2003

Prepaid vendor invoices                                              $      347
Prepaid consulting fees                                                     152
Sales tax receivable                                                        132
Prepaid insurance                                                           128
Prepaid rent                                                                 71
Prepaid refundable deposit for acquisition candidate                         71
Prepaid property tax                                                         55
Other prepaids                                                              133
                                                                     ----------
                                                                     $    1,089
                                                                     ==========


NOTE 6:  PROPERTY, PLANT AND EQUIPMENT, NET
------   -----------------------------------

         Property,  plant and  equipment  consisted of the following at December
31, 2003

                                                                     $      546
Land
Buildings                                                                 1,059
Machinery, equipment and office furniture                                 3,524
Computer hardware & software                                                 19
                                                                     ----------
                                                                          5,148
Less: accumulated depreciation                                             (340)
                                                                     ----------
                                                                          4,808

Computer hardware & software under capital lease                            382
Less: accumulated amortization                                               (7)
                                                                     ----------
                                                                            375

                                                                     ----------
                                                                     $    5,183
                                                                     ==========


                                      F-13

<PAGE>

         For the  year  ended  December  31,  2003  and  2002,  depreciation  of
property,   plant  and  equipment  was  approximately  $340,000  and  $1,257,000
respectively.  Amortization for equipment under capital leases was approximately
$7,000. There was no amortization of capital leases in 2002.

NOTE 7:  DEFERRED FINANCING COSTS, NET AND OTHER ASSETS
------   ----------------------------------------------

         Deferred  financing  costs,  net and  other  assets  are  comprised  of
deposits on office  space of $45,000 and  deferred  financing  costs of $860,000
associated  with the  Company's  revolving  line of credit  and term note from a
financial institution.  For the period ended December 31, 2003, the amortization
of deferred financing costs approximated  $40,000.  There was no amortization of
deferred financing costs in 2002.

NOTE 8:  BORROWINGS UNDER REVOLVING LINE OF CREDIT
------   -----------------------------------------

         The Company has a $3,500,000  revolving line of credit with a financial
institution which is renewable in December,  2006.  Advances under this facility
of $3,133,000 at December 31, 2003 are  collateralized  by accounts  receivables
based on an agreed upon formula and all other assets of the Company. The Company
has the  option of paying  interest  on these  borrowings  in cash or by issuing
common stock. Interest on these borrowings is payable monthly at a minimum of 7%
interest rate on the  outstanding  balance or an agreed upon formula (prime plus
3%).

NOTE 9:  FAIR VALUES OF FINANCIAL INSTRUMENTS
------   ------------------------------------

         The carrying values of cash, accounts receivable,  accounts payable and
accrued liabilities  approximate their fair values due to their relatively short
lives to maturity.  The fair value of debt also approximate fair market value as
these amounts are due at rates which are compatible to market interest rates.

NOTE 10: LONG -TERM DEBT, NET OF CURRENT PORTION
-------  ---------------------------------------
<TABLE>
<CAPTION>

         Long-term  debt,  net of current  portion  consists of the following at
December 31, 2003:

<S>                                                                                    <C>
7% convertible term note due to financial institution, Collateralized by accounts
receivable and other assets of the Company, (a)                                        $    4,500

Uncollateralized 6% convertible promissory note due to customer,  (b)                       4,013

Uncollateralized 18% demand notes due to stockholders, principle and interest due on
demand                                                                                        100

Capital lease obligations, due to financial institutions, collateralized by software
and equipment, due in monthly installments of $14,000 including interest of 10%
throgh 27%, Net of interest of $105,000                                                       309
                                                                                       ----------
                                                                                            8,922

Less: Current portion                                                                       1,483
                                                                                       ----------

Debt, net of current portion                                                           $    7,439
                                                                                       ==========
</TABLE>


(a)      The principal is due in monthly  installments  of $140,625  starting in
         April of 2004  through  November  of 2006,  while  interest  on  unpaid
         balances is payable monthly. The Company has the option to issue common
         stock in lieu of debt service payments at the then-market  price of the
         stock.  In  addition,  at the  option  of the  holder,  the debt may be
         converted  into common stock at a fixed  conversion  price of $1.00 per
         share. In April 2004, the Company received a thirty day waiver from the
         holder on the first principal payment due.


                                      F-14

<PAGE>


(b)      Principal  is due in Great  Britain  Pounds,  on March 6,  2007,  while
         interest is payable  annually  commencing on March 7, 2004.  The holder
         has the option to convert  this note and any  accrued  interest  into 4
         million  shares of the Company's  common stock at any time before March
         6, 2007. Additionally, the holder has the first right of refusal, for a
         period  of four  years on any  additional  debt  financing  that may be
         required by the Company.  In March of 2004, the Company received,  from
         the holder, a waiver of the first annual interest payment  amounting to
         approximately  $240,000 in consideration of future product  development
         services.

         As at December 31, 2003 the aggregate  maturities of long term debt are
as follows:

Year                                                                   Amount
----                                                                ------------
2004                                                                $      1,483
2005                                                                       1,787
2006                                                                       1,639
2007                                                                       4,013
                                                                    ------------

Total                                                               $      8,922
                                                                    ============


NOTE 11: COMMITMENTS AND CONTINGENCIES
-------  -----------------------------

         Leases:

         The Company has  commitments  under various  long-term  operating lease
agreements for office and manufacturing  space. For the years ended December 31,
2003 and 2002 total rent  expense was $407,000 and  $412,000,  respectively.  In
addition to rent, the Company is responsible  for operating  costs,  real estate
taxes and insurance.

         As of December 31, 2003, future minimum annual rental commitments under
operating leases are as follows:

Year                                                                   Amount
----                                                                ------------
2004                                                                $        827
2005                                                                         613
2006                                                                         469
2007                                                                         452
2008                                                                         320
Thereafter                                                                 1,903
                                                                    ------------

Total                                                               $      4,584
                                                                    ============


         Included  above  is   approximately   $1.6  million  of  a  contractual
obligation to pay rent over 10 years under a lease agreement for office space in
Miami, Florida. The lease is held by Inyx Realty, Inc. a wholly owned subsidiary
of the  Company.  Subsequent  to  December  31,  2003,  Inyx  Realty,  which was
established  solely to make the lease payments under this  agreement,  is in the
process of being transferred to an entity controlled by a stockholder.

         Legal Matters:
         --------------

         The Company  and its  subsidiaries  are subject to claims and  lawsuits
arising in the ordinary course of business. Management, in consultation with its
legal advisors,  believes that the outcomes of such legal matters are remote and
unlikely to have a material adverse effect on the Company's  financial  position
or operating results.

                                      F-15
<PAGE>

NOTE 12: SUBSEQUENT EVENTS
-------  -----------------

         On February 27, 2004, the Company's financial institution increased the
Company's  revolving  line of credit by $2.0  million As  consideration  for the
increase to this facility,  the Company issued a five-year Common Stock Purchase
Warrant to the financial  institution to purchase 330,000 shares of common stock
at exercise  prices ranging from $1.25 to $1.75.  As further  consideration  for
this increase,  the Company  amended the fixed  conversion  price of this credit
facility from $1.47 to $1.00 per share.

         On March 30, 2004, the Company's  financial  institution  increased the
revolving line of credit by an additional $1 million.  As consideration  for the
increase to this facility,  the Company issued a five-year Common Stock Purchase
Warrant to the financial  institution to purchase 165,000 shares of common stock
at exercise prices ranging from $1.25 to $1.75.

         Subsequent to December 31, 2003,  pursuant to our Company's  2003 Stock
Option Plan,  there were 325,000  stock  options  exercised.  64,500 shares were
issued with the balance of 260,500 shares exercised but not issued.



NOTE 13: STOCKHOLDERS' EQUITY
-------  --------------------

         On April 17, 2003,  the Company issued  2,450,000  shares of restricted
common stock to certain entities as finders' fees for their role in facilitating
the transaction with Inyx Pharma.

         On April 21, 2003,  the Company issued  1,500,000  shares of restricted
common stock to a consultant/stockholder  as consideration for business advisory
and financial  consulting  services.  In addition the Company entered into a two
year consulting/agreement with this consultant and stockholder.

         On April 28, 2003, the Company issued  16,000,000  shares of restricted
common stock for 100% of the issued and  outstanding  shares of Inyx Pharma in a
transaction accounted for as a reverse acquisition. This issuance has been given
accounting  recognition  on January 1, 2001 in  accordance  with  provisions  of
reverse  accounting  acquisition.  The  Company has  recorded an  administrative
settlement  adjustment for all activities conducted by the Administrator for the
period from January 1, 2003 to April 28, 2003.  This  adjustment also allows for
the  continuity of the stock holders  equity account from 2002 through 2003. The
total of these adjustments amounts to $26 million.

         On August 22, 2003, the Company completed a private placement financing
under which the Company  sold  500,000  shares of its common stock at a price of
$1.00 per  share,  and the  investors  also  received  a common  stock  purchase
warrant, with an exercise price of $1.50 per share, along with each common share
purchased. Neither the common shares nor the warrants are registered for trading
at this  time.  The  offering  included  the  conversion  of  $100,000  due to a
stockholder..  The remaining  proceeds of the offering were used to increase the
company's working capital.  The investors in this private placement included the
Company's Chairman and an outside Director.

         On October 30,  2003,  the  Company  closed the  private  placement  of
$3,000,000 in common stock.  The common stock private  placement has resulted in
the issuance of 3,000,000 shares to a group of institutions and other accredited
investor.  In addition to the common shares, the purchasers received a five-year
Stock  Purchase  Warrant  to buy one share of common  stock for each two  shares
acquired  in the  placement,  at a price of  $1.00  per  share  for half of such
warrants and $1.35 for the remaining  half.  The Company can call these warrants
for  redemption if the Company'  stock price has closed above 200% of the strike
price for 20 consecutive days.

         On November  17,  2003,  pursuant to an exercise of 75,000  options the
Company issued 75,000 shares of common stock for net proceeds of $90,000.


                                      F-16
<PAGE>

NOTE 14: ACCUMULATED COMPREHENSIVE LOSS
-------  ------------------------------

         Accumulated   comprehensive  loss  from  foreign  currency  translation
adjustments  for the year ended  December 31, 2003 and 2002 amounted to $295,000
and $1,503,000,  respectively.  Foreign currency translation adjustments are not
adjusted  for  income  taxes as they  relate to an  indefinite  investment  in a
foreign subsidiary.


NOTE 15: STOCK OPTION PLAN
-------  -----------------

         During 2003,  the Company's  Board of Directors  adopted the 2003 Stock
Option Plan,  which provides for the granting of incentive stock options and non
qualified  stock options for the benefit of employees,  officers,  directors and
those persons who the Company believes may have made a valuable  contribution to
the  Company.  The total  number of shares that may be issued  under the plan is
5,000,000.  The  exercise  price  per share  must be at least  equal to the fair
market price at the time of grant.  The term of each option is 10 years from the
date of grant.

         The weighted average fair value, at the date of grant of the individual
options  granted  during  2003 is  estimated  at $1.12.  The fair value of these
options was determined using the  Black-Scholes  option-pricing  model, with the
following assumptions:


Dividend yield                                                              None
Volatility                                                               66.40 %
Risk-free interest rate                                                   3.14 %
Expected life                                                            4 Years


         Total  net   compensation   expense  relating  to  options  granted  to
employees,  officers,  directors,  and other  persons  amounted to $1,513,000 in
2003.  This amount is included  in general  and  administrative  expenses in the
consolidated  statement  of  operations,  as the  Company  expects  that it will
continue to issue stock  options to such persons.  In addition,  the Company has
expensed  $2.4 million in  warrants.  This amount was charged to other costs and
expenses as the Company  does not expect to grant such  issuances on a recurring
basis.

         A summary of 2003  stock  option  transactions  under the plan is shown
below:

                                                                       Weighted
                                                                        Average
                                                                       Exercise
                                                          Shares         Price
                                                        ------------------------
Outstanding at beginning of year                              --            --
Granted                                                      6,185          1.12
Exercised                                                      (75)         1.20
Forfeited                                                     (310)         1.10
Canceled                                                    (1,000)         1.10
                                                        ------------------------
Outstanding at the end of the year                           4,800          1.12
                                                        ========================

Exercisable at end of year                                   3,212    $     1.12
                                                        ========================



                                      F-17

<PAGE>
<TABLE>
<CAPTION>


The following table summarizes information concerning outstanding and
exercisable options at December 31, 2003:


                                      Options outstanding                        Options exercisable

                                         Weighted Average     Weighted                           Weighted
                                            Remaining          Average                           Average
     Range of              Shares          Contractual        Exercise           Shares          Exercise
  Exercise Price        Outstanding        Life (years)         Price         Exercisable         Price
-------------------------------------------------------------------------------------------------------------
<S>       <C>              <C>                  <C>             <C>              <C>              <C>
   $1.10 -$1.75            4,800                9               $1.12            3,212            $1.12
=============================================================================================================
</TABLE>


NOTE 16: WARRANTS
-------  --------

         During the year ended December 31, 2003, the Company granted  5,485,000
warrants to purchase a maximum of 5,485,000 whole shares of common stock. Of the
warrants granted, 2,000,000 warrants were issued pursuant to issuance of equity,
2,010,000  warrants were issued pursuant to issuance of debt with the balance of
1,475,000  warrants issued  pursuant to consulting and investment  banking fees.
These  warrants  allow the holders to buy the  Company's  common stock at prices
ranging from $1.00 to $3.10 per share and expire at various  dates  between July
1, 2006 and December 30, 2008.

NOTE 17: OTHER EXPENSES
-------  --------------
         Other expenses consisted of the following at December 31, 2003:
<TABLE>
<CAPTION>

                                                                                     2003         2002
                                                                                  -----------------------
<S>                                                                               <C>          <C>
Lease deposit (a)                                                                 $      100   $     --
Investor relations marketing expenses                                                    430         --
Interest expense on debt                                                                 491        1,680
Reversal of goodwill - Excess of purchase  price over carrying  value of assets
           acquired (b)                                                                  707         --
Reversal of goodwill - Acquisition costs (b)                                           3,186         --
Warrants issued for services                                                           2,411         --
Shares issued for consulting fees                                                        799         --
Consulting fees                                                                          233         --
Fees paid to related party (d)                                                           753         --
Reorganization and Administration costs (c)                                             --         25,049
                                                                                  -----------------------
                                                                                  $    9,110   $   26,729
                                                                                  =======================
</TABLE>

         (a)      In 2003 Inyx,  Realty a wholly owned  subsidiary of Inyx, Inc.
                  entered into a lease  agreement  for an office space in Miami,
                  Florida.  Subsequent  to the year end,  Inyx  Realty is in the
                  process  of being  transferred  to an entity  controlled  by a
                  stockholder thus terminating the Company's  obligations  under
                  this lease.

         (b)      Summary of components of goodwill  reversed during 2003 are as
                  follows:
<TABLE>
<CAPTION>

<S>                                                                              <C>
Reversal of goodwill-excess of purchase price over  assets acquired in
  conjunction with acquisition of Miza UK                                        $      707

Reversal of goodwill - acquisition costs (included $1,884,000 paid in cash to
  outside consultants for accounting, legal and appraisal fees and
  $1,302,000 issued in stock for finders' fees )                                      3,186

Reversal of  additional paid-in capital arising from shares issued pursuant to
   acquisition of Inyx Pharma                                                         6,407

                                                                                 ----------
                                                                                 $   10,300
                                                                                 ==========
</TABLE>


                                      F-18

<PAGE>


         (c)      Miza  UK,  the  predecessor  company,  incurred  non-recurring
                  charges related to the  Administration  process and subsequent
                  sale of its  business  assets  (excluding  Biopharma)  to Inyx
                  Pharma.  These  reorganization items amounted to approximately
                  $25 million and are comprised of items of income, expenses and
                  losses that were  realized or incurred by the Company,  during
                  the year as a result of being placed under the  supervision of
                  a court  -appointed  Administrator in accordance with the U.K.
                  Insolvency   Act   1986.   The   following    summarizes   the
                  reorganization charges recorded by the Company during the year
                  ended December 31, 2002;


                  Administrator and related fees                           $ 452
                  Impairment of property, plant and equipment              9,505
                  Impairment of intangible assets                          7,031
                  Advances to affiliated entities                          8,061
                                                                    ------------
                                                                    $     25,049
                                                                    ============

                  The  Administrator  and related fees of $452,000 were one-time
                  costs and fees  incurred  during the  Administration  process.
                  Such  costs and fees were  incurred  by Begbies  Traynor,  the
                  court-appointed  administrator  during the period of September
                  4, 2002 through March 6, 2003.

                  The impairment to the property,  plant and equipment assets of
                  approximately  $9.5 million  relates to the  write-down of the
                  book  value of such  assets  when Inyx  Pharma  purchased  the
                  business assets of Miza UK (excluding the Biopharma division).

                  The impairment to the intangible  assets of  approximately  $7
                  million  relates  to the  write-down  of the book value of the
                  goodwill and other intangible  assets of Miza UK, which,  once
                  it went into  Administration,  were not  sufficient to recover
                  such carrying amounts.

         (d)      This  amount  represents  a  fee  paid  by  the  Company  to a
                  partnership  controlled  by  holding  companies  owned  by the
                  Company's   Chairman  and  his  family  members  for  services
                  rendered to the Company by the Chairman.

NOTE 18: INCOME TAXES
-------  ------------

         The tax effects of temporary  differences that give rise to significant
portion  of the  deferred  tax  benefit  as of  December  31,  2003 and 2002 are
presented below:

                                                          2003          2002
                                                       ========================
Deferred tax benefit:
    U.S. Federal Deferred                              $    3,269          --
    Foreign                                                 1,294    $    9,300
                                                       ------------------------
                                                            4,563         9,300
Less: valuation allowance                                  (3,269)       (8,948)
                                                       ------------------------
Benefit for income taxes                               $    1,294    $      352
                                                       ========================







                                      F-19
<PAGE>

         The tax effects of temporary  differences that gave rise to significant
portions of the  deferred  tax assets as of  December  31, 2003 and 2002 were as
follows:

                                                          2003          2002
                                                       ------------------------
Deductible temporary differences
   U.S. Federal Deferred Operating loss                $    3,269    $     --
   Foreign Deferred Operating loss                          1,094          --
   Foreign deferred accruals and allowances                   200         9,300
                                                       ------------------------
                                                            4,563         9,300
Less: valuation allowance                                  (3,269)       (8,948)
                                                       ------------------------
Total tax assets                                       $    1,294    $      352
                                                       ========================


         At December 31, 2003, the Company has  approximately $9 million of U.S.
and Canadian  operating loss carry forwards expiring from 2004 through 2019; and
approximately  $4.3 million of foreign loss carry  forwards  expiring  from 2004
through 2006.  The Company has not made any provisions for United States federal
or foreign  taxes that may  result  from  future  remittances  of  undistributed
earnings of foreign  subsidiaries because it is expected that such earnings will
be permanently  reinvested in these foreign  operations.  It is not practical to
estimate the amount of taxes that might be payable on the eventual remittance of
these earnings.

NOTE 19: DISCONTINUED OPERATIONS
-------  -----------------------

         Effective  March 6, 2003,  the  Company  sold  assets  relating  to the
operations of Doblique, Inc., to a third party for cash and has discontinued the
business of breeding  and racing  thoroughbred  race  horses.  Accordingly,  the
results of operations and changes in cash flow of the discontinued business have
been disclosed separately from those of the continuing operations.

NOTE 20: SUPPLEMENTAL CASH FLOW INFORMATION
-------  ----------------------------------
<TABLE>
<CAPTION>
                                                                         2003         2002
                                                                      -----------------------
<S>                                                                   <C>          <C>
Supplemental Disclosure of Cash Flow Information:

      Cash paid during the period for interest                        $      216   $     --
                                                                      =======================
Supplemental Disclosure of Non-Cash Financing Activities:
                                                                      =======================
      Conversion of shareholder debt into 100,000 shares of stock            100         --
                                                                      =======================
      Shares issued for services                                             799         --
                                                                      =======================
      Shares issued for finders fees                                                    1,302
                                                                      =======================
      Warrants issued for services                                         2,411         --
                                                                      =======================
Supplemental Disclosure of Non-Cash Investing Activities:
      Reclassification of debt to liabilities subject to compromise         --         14,201
                                                                      =======================
      Capital leases                                                         309         --
                                                                      =======================
</TABLE>


NOTE 21: BUSINESS COMBINATIONS
-------  ---------------------

         On March 7, 2003, Inyx Pharma,  the Company's wholly owned  subsidiary,
acquired the business assets of Miza UK from a court appointed  Administrator in
the United  Kingdom.  In connection  with this  acquisition,  Inyx Pharma issued
approximately  $7.1  million  in debt to effect  the  transaction  and  incurred
approximately  $1.2  million in  acquisition  costs.  At that  time,  management
concluded that the net assets of Miza UK were  purchased from unrelated  parties
and thus recognized goodwill as set forth below:


                                      F-20

<PAGE>

Purchase price of Miza UK business assets by Inyx Pharma             $    8,333
Less:
Property, plant and equipment acquired                                   (5,136)
Inventory acquired                                                       (1,319)
                                                                     ----------
Goodwill                                                             $    1,878
                                                                     ==========


         On April 28, 2003, the Company  acquired all of the outstanding  common
shares of Inyx Pharma by issuing 16 million of the Company's  shares for all the
outstanding  and issued shares of Inyx Pharma.  As a result of the  transaction,
the  stockholders  of Inyx  Pharma  received  64% of the voting  interest of the
combined  company.  At that time,  management  viewed the sale of the  Company's
assets,  consisting of racehorses as a normal  operating  decision which did not
terminate   Doblique's   business  activities  thus  converting  Doblique  to  a
non-operating public shell.

         This  transaction  was viewed as a purchase and  therefore  the Company
recognized goodwill as follows:

Purchase price                                                       $   10,505
Less:
Net assets acquired from Inyx Pharma                                     (2,083)
                                                                     ----------
Goodwill                                                             $    8,422
                                                                     ==========


         The  aggregate  goodwill,   on  both  transactions,   of  approximately
$10,300,000  consists  of  the  purchase  price  over  net  assets  acquired  of
$7,100,000 and  acquisition  costs of  approximately  $3,200,000.  After further
review of the facts and circumstances surrounding these transactions, management
viewed that the net assets of Miza UK were  controlled by parties  affiliated to
the Company,  and that the sale of Doblique's operating assets did terminate its
business   activities,   rendering  it  a  non-operating   public  shell.  As  a
consequence,  the Company has reversed all of the goodwill  recognized  above to
other  expenses  and to  additional  paid-in  capital.  Therefore  both of these
transactions are accounted for as capital transactions  recorded at the carrying
value of the  underlying  net assets  acquired with no  recognition of goodwill.
This adjustment is considered a significant fourth quarter adjustment based apon
management's  desire to account  conservatively  for this transaction.  See Note
17(b)

NOTE 22: RELATED PARTY TRANSACTIONS
-------  --------------------------

         An affiliated  Partnership controlled by the Chairman and his immediate
family provided the Chairman's  services to the Company in 2003.  Total payments
to this affiliate  amounted to $980,000.  Of this amount,  a one-time  charge of
$753,000 is included in other expenses,  and the balance of $227,000 was charged
to  general  and  administrative  expenses  in  the  consolidated  statement  of
operations.

         During the year the Chairman and his spouse  provided  working  capital
advances to the  Company.  At December  31, 2003,  all such  advances  have been
repaid.

         During the year the Company paid rent to an  affiliate  for a furnished
office  space  amounting  to  $66,000.  This  amount is  included in general and
administrative expenses.



                                      F-21

<PAGE>

                    PRO FORMA FINANCIAL STATEMENT INFORMATION
                    -----------------------------------------

         The following condensed pro forma consolidated statements of operations
are based on the  assumption  that the  acquisition  of Inyx Pharma Limited took
place as of January 1, 2003, and includes the operations of Miza Pharmaceuticals
(UK) Limited ("Miza UK"), the predecessor to Inyx Pharma Limited, for the period
January 1, 2003 to March 6, 2003,  and Inyx Pharma  Limited for the period March
7, 2003 to December 31, 2003. On March 7, 2003, Inyx Pharma Limited acquired the
majority of the operating assets of Miza UK from a court appointed Administrator
and continued the operations of Miza UK in unbroken succession.  The acquisition
did not include the  operations  of Miza's  Biopharma  division  which have been
eliminated for the purposes of these pro forma statements.

         For the year ended  December 31, 2002,  the  operations  of Miza UK, as
predecessor  company to Inyx  Pharma  Limited,  are  presented  for  comparative
analysis after the elimination of Miza's Biopharma division.

         For the year ended December 31, 2003 and 2002,  operations  relating to
the business of Doblique,  Inc., now Inyx, Inc., have been eliminated from these
pro forma statements as if the divestiture of Doblique's  assets and liabilities
and the discontinuance of its related operations occurred on January 1, 2003 and
January 1, 2002, respectively.



























                                      F-22
<PAGE>
<TABLE>
<CAPTION>

              Unaudited Pro Forma Combining Statement of Operations
                      For the Year Ended December 31, 2002
                    (Expressed in thousands of U.S. dollars)



                                          Inyx, Inc.         Miza
                                          12 Months       12 Months                        Pro            Pro
                                             Ended          Ended                         Forma          Forma        Adjusted
                                          December 31,   December 31,    Combined          Adj            Adj         Combined
                                              2002           2002          Total           (1)            (2)           Total
                                          -----------    -----------    -----------    -----------    -----------    -----------
<S>                                       <C>            <C>            <C>            <C>            <C>            <C>
Net revenues                              $        54    $    24,644    $    24,698         (3,460)           (54)   $    21,184
Cost of goods sold                                            20,772         20,772         (3,450)                       17,322
                                          -----------    -----------    -----------                                  -----------
 Gross profit                                      54          3,872          3,926                                        3,862

Expenses:
  Livestock & jockey expenses                      96           --               96                           (96)          --
  General and administrative                       32          6,850          6,882           (394)           (32)         6,456
  Selling expenses                                               376            376            (13)                          363
  Depreciation and amortization                    22          1,257          1,279         (1,083)           (22)           174
                                          -----------    -----------    -----------                                  -----------
                                                  150          8,483          8,633                                        6,993
                                          -----------    -----------    -----------                                  -----------
(Loss) from operations before
  other expenses                                  (96)        (4,611)        (4,707)                                      (3,131)
                                          -----------    -----------    -----------                                  -----------

Other expenses:
  Reorganization & administration costs          --           25,049         25,049                                       25,049
  Loss on sale of livestock                        17           --               17                           (17)          --
  Interest expense                               --            1,680          1,680         (1,217)                          463
                                          -----------    -----------    -----------                                  -----------
                                                   17         26,729         26,746                                       25,512
                                          -----------    -----------    -----------                                  -----------

(Loss) before tax benefit                        (113)       (31,340)       (31,453)         2,697            113        (28,643)

Income tax benefit                               --              352            352           (352)                         --
                                          -----------    -----------    -----------                                  -----------

Net (loss)                                $      (113)   $   (30,988)   $   (31,101)                                 $   (28,643)
                                          ===========    ===========    ===========                                  ===========
</TABLE>


(1)  Interest  and  depreciation  expense  are  adjusted  to reflect the charges
related  to pro forma debt and net fixed  assets as of the  closing of the asset
acquisition.  The activity relating to Biopharma division which was not included
in the acquisition is eliminated

(3) This is the  adjustment to remove the results of operations  relating to the
business of owning and racing horses. The horses previously owned by the Company
were sold for cash on March 6, 2003.


                                      F-23

<PAGE>
<TABLE>
<CAPTION>

                        INYX, INC. (f/k/a Doblique, Inc.)
             Unaudited Pro Forma Combining Statements of Operations
                      For the year ended December 31, 2003
                    (Expressed in thousands of U.S. dollars)


                                                                               Combined      Pro Forma      Adjusted
                                                Inyx, Inc.      Miza (1)         total        Adj. (2)        total
                                               -----------    -----------    -----------    -----------    -----------
<S>                                            <C>            <C>            <C>            <C>            <C>
Net Revenues                                   $    13,099    $     2,730    $    15,829    $      (334)   $    15,495
Cost of goods sold                                  10,634          2,269         12,903           (393)        12,510
                                               -----------    -----------    -----------                   -----------
  Gross profit                                       2,465            461          2,926                         2,985

Expenses:
  General and administrative expenses                6,477            568          7,045            (33)         7,012
  Selling expenses                                     260             51            311                           311
  Depreciation and amortization                        387            228            615            262            877
                                               -----------    -----------    -----------                   -----------
     Total operating expenses                        7,124            847          7,971                         8,200
                                               -----------    -----------    -----------                   -----------

(Loss) from operations before other expenses        (4,659)          (386)        (5,045)                       (5,215)

Other expense:
  Administration expense                              --               55             55                            55
  Other expenses                                     9,110            176          9,286            253          9,539
                                               -----------    -----------    -----------                   -----------
                                                   (13,769)          (617)       (14,386)                      (14,809)

Income tax benefit                                   1,294           --            1,294                         1,294
                                               -----------    -----------    -----------                   -----------
Loss from continuing operations                    (12,475)          (617)       (13,092)                      (13,515)

Loss from discontinuing operations
                                                       (25)          --              (25)                          (25)
                                               -----------    -----------    -----------                   -----------
Net (loss)                                     $   (12,500)   $      (617)   $   (131172)                  $   (13,490)
                                               ===========    ===========    ===========                   ===========
</TABLE>


(1)  Results  of  Inyx  pharma  for  period  from  March  7,  2003  the  date of
acquisition, to June 30, 2003






                                      F-24