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

                                  FORM 10-KSB/A

(Mark One)

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
             1934 For the fiscal year ended December 31, 2003

  [_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the
         transition period from _________________ to _________________

                        Commission file number 333-83152


                                   Inyx, Inc.
        (Exact name of small business issuer as specified in its charter)

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


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

                                 (212) 838-1111
                           (Issuer's telephone number)

      Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days:
Yes [X]  No [_].

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

      Check whether the registrant filed all documents and reports required to
be filed by Section l2, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court. Yes [_]  No [_]

APPLICABLE ONLY TO CORPORATE ISSUERS

      State the number of shares outstanding of each of the issuer's classes of
common equity, as of March 1, 2004: 28,850,000 shares of common stock.

Transitional Small Business Disclosure Format (Check one): Yes [_]  No [X]

Include whether Registrant is an accelerated filer: Yes [_]  No [X]



                                       1
<PAGE>


                                EXPLANATORY NOTE

      Inyx,  Inc.  (the  "Company")  is filing  this  Amended  Form  10-KSB (the
"Amended  Form"  10-KSB/A")  to restate Items 6 and 7 of Part I contained in the
Company's  Annual  Report on Form 10-KSB (the  "Original  Form  10-KSB") for the
period  ended  December 31, 2003 as  originally  filed with the  Securities  and
Exchange  Commission  on April 14, 2004.  This Amended  Form  10-KSB/A  reflects
restatements of the previously filed audited  consolidated  financial statements
as of December 31, 2003 and related changes in the  Management's  Discussion and
Analysis of Financial  Condition  and Results of Operations  resulting  from the
matters discussed below.

      The restatement  resulted  primarily from correction of accounting for the
following transactions: (1) accounting for the acquisition of the Miza UK assets
as a purchase  transaction rather than a reorganization of entities under common
control,  (2) correction to the  recognition  and  measurement of the beneficial
conversion   feature   relating  to   convertible   debt,   (3)   correction  to
classification  of amortization of deferred  financing  costs, (4) correction to
classification  of  various  non  recurring  operating  costs (see Note 3 to the
financial statements).

      This Amended Form  10-KSB/A does not attempt to modify or update any other
disclosures set forth in the Original Form 10-KSB, except as required to reflect
the effects of the noted restatements.  Additionally, this Amended Form 10-KSB/A
and the  Original  Form  10-KSB is  subject to  updating  and  supplementing  as
provided in the periodic  reports that the Company has filed and will file after
the  original  filing  date with the  Securities  and  Exchange  Commission.  In
addition,  the  filing  on this  Amended  Form  10-KSB/A  shall not be deemed an
admission that the original filing,  when made, included any untrue statement of
material  fact or omitted a material  fact  necessary  to make a statement  made
therein not misleading.


<PAGE>


Item 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS


      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",  "we",  "us",  "our",  or the "Company")  through its
wholly-owned subsidiaries, Inyx Pharma Limited ("Inyx Pharma"), Inyx Canada Inc.
("Inyx  Canada"),  and Inyx USA Ltd. ("Inyx USA") is a 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,
cardiovascular, dermatological and topical conditions. Our client base primarily
consists of 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 the strategic acquisition of
pharmaceutical products and drug delivery technologies that are complementary to
our expertise in the aerosol pharmaceutical sector, including those through the
acquisition of other pharmaceutical companies.

      Our 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. 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.

      On March 6, 2003, management decided to discontinue the Company's
thoroughbred horse operation by selling the assets of that operation for cash to
a third party; these assets and operations were nominal. Then 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 our common stock,
representing approximately 45% of the Company's then issued and outstanding
shares, to Medira Investments, LLC ("Medira"), which later conveyed such shares
to its sole member, Ms. Viktoria Benkovitch, our Chairman and CEO's spouse.

      On April 28, 2003, subsequent to the discontinuance of our horse racing
operations, we concluded a reverse acquisition of Inyx Pharma Limited ("Inyx
Pharma"), an aerosol pharmaceutical manufacturing company

                                       2
<PAGE>


incorporated under the laws of England and Wales. 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.

      The transaction consisted of an exchange of 100% of the outstanding common
stock of Inyx Pharma for 16,000,000 restricted shares of our common stock (the
"Exchange"), representing approximately 64% of the approximately 25,000,000
shares outstanding after the Exchange. As a result of the Exchange, Inyx Pharma
became our wholly-owned subsidiary and we changed our name to Inyx, Inc.
("Inyx"). At that time, we also announced that we would pursue strategic
investment opportunities in a number of sectors within the pharmaceutical,
biotechnology and medical devices industries.

      We currently operate in one business segment, the manufacturing of
pharmaceutical aerosol products. Although we also perform product research and
development activities, at this time, these business activities are primarily
supporting our manufacturing operations for the benefit of our customers.
Segment reporting on our business will begin to occur as we move into the
additional business activities described herein.

      Recent Developments

      Since our reverse acquisition of Inyx Pharma, we have been actively
marketing to our customer base and expect that the manufacturing capacity
utilization at our Inyx Pharma operation will continue to increase as new
customer contracts and purchase orders are signed and initiated.

      It has taken time to start-up a number of new client projects due to such
clients' own required regulatory or business approvals, lead times required for
critical raw materials and components in the pharmaceutical aerosol sector, and
as a result of the production commissioning and validation processes involved in
the pharmaceutical manufacturing industry. Such delays have been particularly
relevant in the transition of a chlorofluorocarbon ("CFC") aerosol respiratory
MDI to a CFC-free or hydrofluoralkane ("HFA") MDI for one of our major clients.
This client, a large international generic drug marketing and distribution
company, has not yet received the necessary regulatory approvals to market their
CFC-free MDI for the treatment of asthma which has led to a decrease in our
revenues and profitability opportunities during 2004. This client believes that
they can complete the transition to a CFC-free MDI by mid-2005.

      We believe that in addition to the conversion of CFC inhalers to non-ozone
depleting HFA products, a second major area of potential growth in our
manufacturing business is a result of our proprietary hydrocarbon aerosol foam
expertise.

      Our business strategy also includes the development and marketing of our
own proprietary products, including both drug delivery devices and
pharmaceutical products that are complementary to our manufacturing
technologies. Although we have started developing our own proprietary
pharmaceutical products, we have not yet commenced the marketing or sale of any
such products.

      CRITICAL ACCOUNTING POLICIES

      Our accounting policies are disclosed in Note 2 to the Notes to the
Consolidated Financial Statements found elsewhere herein. We consider the
following policies to be important to our financial statements.

      Revenue Recognition

      The Company recognizes revenue when (1) persuasive evidence of an
arrangement exists; (2) product delivery has occurred or services rendered; (3)
the fee is fixed or determinable; and (4) collection is reasonably assured.
Revenues are recognized FOB (Freight-on-Board) 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.

                                       3
<PAGE>


      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.

      Translation of Foreign Currency

      The functional currency of our Company's United Kingdom subsidiary, Inyx
Pharma, is the Great Britain Pound (GBP). Our Company's financial statements are
reported in United States Dollars (USD) 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. Results of operations are translated using the
average exchange rates prevailing during the period. For purposes of SFAS No.
52, we consider 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
in stockholders' deficit. 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.

      The Inyx Pharma Transaction

      Concurrent with the discontinuance of our thoroughbred horse racing
operations in the first half of 2003, we concluded a reverse acquisition of Inyx
Pharma, an aerosol manufacturing company incorporated under the laws of England
and Wales and changed our name to Inyx.

      The acquisition of Inyx Pharma was consummated on April 28, 2003, by
exchanging 16 million shares of the Company's restricted common stock for 100%
of the outstanding common stock of Inyx Pharma. As a result of the exchange, the
stockholders of Inyx Pharma became the Company's controlling stockholders, in
the aggregate, holding approximately 64% of Inyx's outstanding shares. The
transaction was accounted for as a recapitalization of Inyx using the reverse
acquisition method of accounting and therefore, the historical financial
statements of Inyx Pharma are presented herein as our own historical financial
statements. As a result of the Inyx Pharma transaction, we incurred costs of
approximately $2.7 million consisting primarily of legal, accounting, consulting
and finders' fees. All such costs were expensed as incurred.

      Prior to its reverse acquisition by Inyx, on March 7, 2003, Inyx Pharma
had purchased the majority of the pharmaceutical business assets of Miza
Pharmaceuticals (UK) Ltd. ("Miza UK") out of Administration (a United Kingdom
equivalent of bankruptcy protection and reorganization) for approximately $8.3
million, consisting of an approximately $7.1 million cash payment to the
Administrator for Miza UK's assets, plus approximately $1.2 million in direct
transaction costs. The assets acquired by Inyx Pharma consisted of one aerosol
manufacturing site and a pharmaceutical development operation. A third Miza UK
operation, the "Biopharma Division", was not acquired. As such, Inyx Pharma
received all of the property, plant, machinery and equipment, inventory,
customer base, employees, and know-how to continue to manage and run those
acquired parts of the Miza UK operation as a going concern.

      The Inyx Pharma acquisition of Miza UK's business assets was accounted for
utilizing the purchase method of accounting. Accordingly, the total purchase
price of $8.3 million incurred by Inyx Pharma was allocated to the identifiable
net tangible and intangible assets acquired based on their estimated fair
values. Based on an independent third-party fair value valuation, the tangible
assets acquired by Inyx Pharma, consisting of fixed assets and inventory, were
allocated a fair value of approximately $5.1 million and $1.3 million,
respectively, and the intangible assets, consisting of a customer list and
know-how, were allocated a fair value of approximately $1.3 million and
approximately $600,000, respectively. As a consequence of these purchase price
allocations, no goodwill was recorded.

                                       4
<PAGE>

      Pro Forma Results

      Inyx Pharma's acquisition of the majority of the business assets of Miza
UK took place on March 7, 2003. Therefore, we present herein consolidated pro
forma statement of operations for the years ended December 31, 2002 and 2003 to
give effect to the acquisition of Miza UK by Inyx Pharma as if the acquisition
had taken place as of the beginning of the periods presented. The historical
financial data is derived from the historical audited financial statements of
Miza UK, the predecessor entity to Inyx Pharma.

      Additionally, as the Miza UK acquisition did not include the operations of
Miza UK's Biopharma Division, that division's results of operations have been
presented as discontinued operations in the underlying historical financial
statements.

      The pro forma adjustments and certain assumptions are described in the
accompanying notes to the unaudited pro forma financial statements.

      The following unaudited consolidated pro forma statement of operations
presented herein for the years ended December 31, 2002 and December 31, 2003
give effect to the acquisition of Miza UK Pharmaceuticals Ltd. (Miza UK) by Inyx
Pharma Limited ("Inyx Pharma") as if the acquisition had taken place as of
January 1, of the periods presented.

      As Miza UK is the predecessor entity, the historical financial information
presented is that of Miza UK. The historical financial data is derived from the
historical audited financial statements of the predecessor entity to Inyx
Pharma. On March 7, 2003, Inyx Pharma acquired the majority of the operating
assets of Miza UK from a court appointed Administrator. The acquisition did not
include the operations of Miza UK's Biopharma Division, and such operations have
been presented as discontinued operations in the underlying historical financial
statements.

      The acquisition was accounted for using the purchase method of accounting.
The unaudited pro forma financial data is not necessarily indicative of the
operations had the acquisition taken place on January 1, 2002 and are not
intended to project the Company's results of operations for any future period.

      The unaudited pro forma adjustments and certain assumptions are described
in the accompanying notes. The unaudited pro forma financial statements should
be read in conjunction with Inyx, Inc.'s consolidated financial statements and
notes and the management's discussion and analysis included within this filing.

                                       5
<PAGE>

            Unaudited Consolidated Pro Forma Statement of Operations

                      For the Year Ended December 31, 2002

                    (Expressed in thousands of U.S. dollars)

<TABLE>
<CAPTION>
                                                                          Pro forma
                                                            Historical    Adjustment          Pro forma
<S>                                                         <C>           <C>                 <C>

Net Revenues                                                $   21,184    $       --          $   21,184
Cost of sales                                                   17,322                            17,322
                                                            ----------    ----------          ----------
                                                                 3,862            --               3,862

Operating expenses:
        General and administrative expenses                      6,456            --               6,456
        Selling expenses                                           363            --                 363
        Depreciation and amortization                              936          (415) (3)            521
        Amortization of intangibles                                 --           166  (4)            166
                                                            ----------    ----------          ----------

                Total operating expenses                         7,755          (249)              7,506

Loss from continuing operations before interest
expense, reorganization items and income tax benefit            (3,893)          249              (3,644)

        Interest expense                                         1,680        (1,037) (1),(2)        643
                                                            ----------    ----------          ----------

Loss from continuing operations before
reorganization items and income tax benefit                     (5,573)        1,286              (4,287)

        Reorganization items                                    25,049            --              25,049
                                                            ----------    ----------          ----------

Loss from continuing operations before income tax benefit      (30,622)        1,286             (29,336)

Income tax benefit                                                 352                               352
                                                            ----------    ----------          ----------

Loss from continuing operations                             $  (30,270)   $    1,286          $  (28,984)
                                                            ==========    ==========          ==========
</TABLE>


                                       6
<PAGE>
       Unaudited Consolidated Pro Forma Combining Statement of Operations
                      For the Year Ended December 31, 2003
                    (Expressed in thousands of U.S. dollars)

<TABLE>
<CAPTION>
                                                                                        Pro forma           Pro forma
                                                              Miza UK      Inyx, Inc.   Adjustment          Combined
<S>                                                         <C>           <C>           <C>                <C>
Net Revenues                                                $    2,396    $   13,099    $       --         $   15,495
Cost of sales                                                    1,876        10,634            --             12,510
                                                            ----------    ----------    ----------         ----------
                                                                   520         2,465            --              2,985

Operating expenses:
        General and administrative expenses                        568        12,093            --             12,661
        Selling expenses                                            51           260            --                311
        Depreciation and amortization                               75           347            (7)(3)            415
        Amortization of intangibles                                 --           139            27 (4)            166
                                                            ----------    ----------    ----------         ----------
                Total operating expenses                           694        12,839            20             13,553

Loss from continuing operations before interest
expense, reorganization items and income tax benefit              (174)      (10,374)          (20)           (10,568)

        Interest expense                                           176         4,312        (1,037)(1),(2)      3,451
                                                            ----------    ----------    ----------         ----------

Loss from continuing operations before
reorganization items and income tax benefit                       (350)      (14,686)        1,017            (14,019)

        Reorganization items                                        --            --            --                 --
                                                            ----------    ----------    ----------         ----------

Loss from continuing operations before income tax benefit         (350)      (14,686)        1,017            (14,019)

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

Loss from continuing operations                             $     (350)   $  (13,392)   $    1,017         $  (12,725)
                                                            ==========    ==========    ==========         ==========
</TABLE>

              NOTES TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS

      1)    Interest expense was reduced by approximately $1,217,000 to reflect
            a reduction in interest expense assuming the repayment of Miza UK's
            debt. Upon completion of the acquisition, approximately $6.5 million
            of the cash paid to the Administrator was used to repay Miza UK's
            secured debt.

      2)    Interest expense was increased by approximately $180,000 to reflect
            the interest on the debt issued by the Company in connection with
            the acquisition.

      3)    Depreciation expense was adjusted to reflect the charges related to
            changes in fixed assets as of the closing of the acquisition.

      4)    Amortization of intangible assets was recorded to reflect the
            amortization of purchased intangible assets subject to amortization
            including customer list and know-how.

      Consolidated Results

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

      Pro Forma Combined Results for Comparative Purposes

      Prior to its acquisition of the majority of Miza UK's business assets,
Inyx Pharma was a non-operating private corporation with nominal net assets. As
the historical financial statements of Inyx Pharma are presented herein as the
Company's historical financial statements, and because as of March 7, 2003 Inyx
Pharma's sole

                                       7
<PAGE>


operation was essentially the continuation of the Miza UK business, the
Company's historical financial statements for the period from January 1, 2003
through March 6, 2003 and prior, are those of Miza UK, and are therefore
presented as "Predecessor" financial statements. The Company's financial
statements for the periods commencing March 7, 2003 are referred to as
"Successor" financial statements. The financial statements for all periods are
collectively referred to as "Inyx" or the "Company".

      Additionally, as the Biopharma Division was historically part of the Miza
UK business but was an operation not acquired by Inyx Pharma, its results of
operations are presented as discontinued operations in the underlying historical
financial statements.

      For comparative purposes, managements' discussion and analysis of results
of operation will focus on combined results including the results of the
Successor Company for the period from March 7, 2003 through to December 31, 2003
combined with the results of operations of the Predecessor Company for the
period from January 1, 2003 through March 6, 2003 (while Miza UK was in
Administration), compared to the results of the Predecessor company for the year
ended December 31, 2002.

RESULTS OF OPERATIONS FOR THE PERIOD ENDED DECEMBER 31, 2003 (FROM MARCH 7, 2003
THROUGH DECEMBER 31, 2003) COMPARED TO THE YEAR ENDED DECEMBER 31, 2002

      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.

Periods Ended December 31, 2003 and Year Ended December 31, 2002

      NET REVENUES

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

      Net revenues for the period from March 7, 2003 through December 31, 2003
were approximately $13.1 million. These revenues are attributed solely to the
newly acquired business of Inyx Pharma and represent approximately ten months of
business activity. In comparison, net revenues for the year ended December 31,
2002, representing twelve months of operations, were approximately $21.2
million.

      Net revenues decreased by $8.1 million or approximately 38% for the period
as compared to the previous year primarily as a result of the shorter operating
period that we had as a Company in 2003; as a result of our reverse acquisition
of Inyx Pharma on April 28, 2003, Inyx had approximately eight months of
significant business operations during 2003 as compared to 12 months of
operations for the predecessor business operation during 2002 as Miza UK.
Additionally, Inyx Pharma's operating results for the period from March 7, 2003
through April 28, 2003 were nominal.

      For the period from March 7, 2003 through December 31, 2003, our three top
customers accounted for approximately $5.5 million or approximately 42% of our
total net revenues. During this period, these three customers were the Merck
Generics group of companies ("Merck Generics"), accounting for approximately
$2.5 million in net revenues or approximately 19% of total revenues; Genpharm
Inc. ("Genpharm"), accounting for approximately $1.9 million in net revenues or
approximately 14.5% of total revenues; and SSL International Plc ("SSL"),
accounting for approximately $1.1 million in net revenue or approximately 8.4%
of total revenues.

                                       8
<PAGE>


        In comparison, for the year ended December 31, 2002, Miza UK's three top
customers accounted for approximately $12.5 million in revenues or approximately
59% of total net revenues. For the year ended December 31, 2002, Miza UK's three
top customers were Merck Generics, accounting for approximately $8.7 million in
net revenues or approximately 41% of total revenues; Connetics Corporation
("Connetics"), accounting for $2.8 million in net revenues or approximately 13%
of total revenues; and Celltech Pharmaceuticals Ltd. ("Celltech"), accounting
for approximately $1 million in net revenues or approximately 5% of total
revenues.

      Combined net revenues for the two periods ended March 6, 2003 and December
31, 2003, respectively, were approximately $15.5 million as compared to
approximately $21.2 million in net revenues for the year ended December 31,
2002. The combined net revenues in 2003 decreased by approximately $5.7 million
or approximately 27% compared to net revenues in 2002.

      For the combined two periods in 2003, our three top customers accounted
for approximately $7.0 million or approximately 45% of combined net revenues as
compared to the three top customers accounting for approximately $12.5 million
or approximately 59% of total net revenues for the year ended December 31, 2002.

      For the combined two periods ended March 6, 2003 and December 31, 2003,
our three top customers were Merck Generics, accounting for approximately $3.5
million in net revenues or approximately 23% of total combined revenues;
Genpharm, accounting for approximately $2.2 million in net revenues or
approximately 14% of total combined revenues; and SSL, accounting for
approximately $1.3 million in net revenues or approximately 8% of total combined
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 continue to broaden our customer base and distribution
channels to mitigate the risk of our economic dependence on any one client.

      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.

      (1) The first major reason for the decrease in net revenues between the
comparative periods is the phase out of our CFC aerosol respiratory inhalers
(MDIs) production for a number of our clients, including our largest customer,
Merck Generics. 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 $5.0 million in net
revenues or approximately 23.5% 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 2.4% of our total
combined 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.

      Currently, 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.

      (2) The second major reason for the decrease in net revenue levels between
the comparative periods is the significant decrease in revenues from one of the
predecessor company's largest clients, Connetics, which moved its

                                       9
<PAGE>


production requirements for hydrocarbon aerosols to a manufacturing facility in
the United States due to strategic reasons. For example, for the year ended
December 31, 2002, Connetics accounted for approximately $2.8 million or
approximately 13% of total revenues as compared to approximately only $333,000
in net revenues or 2% of total combined revenues for the pro forma year ended
December 31, 2003. Consequently, the significant decrease of Connetics contract
revenue resulted in an approximately $2.5 million decrease of net revenues
between 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,
accounting for approximately $1.1 million in net revenue or approximately 8% of
total combined revenues as compared to approximately $587,000 or approximately
3% of total revenues in 2002.

      (3) The third major reason for the decrease in net revenue levels between
the comparative periods 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 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 3, 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 hydroflouroalkane ("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.

      For the period from March 7, 2003 through December 31, 2003, cost of goods
sold amounted to approximately $10.6 million or approximately 81% of net
revenues. 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
$17.3 million or approximately 82% of net revenues.

      Combined cost of goods sold for the two periods, January 1, 2003 through
March 6, 2003 and March 7, 2003 through December 31, 2003, amounted to
approximately $12.5 million, or approximately 81% of combined net revenues of
$15.5 million.

                                       10
<PAGE>


      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 3, 2002, our predecessor company, Miza UK, 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 over a broader base of products and
therefore reduce our per unit manufacturing costs.

      (3) In addition, due to the previously noted Montreal Protocol Treaty,
during 2002 and 2003, we have been 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, accounted for
approximately only 2% of overall production in 2003. 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, in 2004, we also expect to commence 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

      Gross profit amounted to approximately $2.5 million on net revenues of
approximately $13.1 million or approximately 19% of net revenues for the period
from March 7, 2003 through December 31, 2003, as compared to a gross profit of
approximately $3.9 million on net revenues of $21.2 million or approximately 18%
of net revenues for the year ended December 31, 2002.

      Combined gross profit for the two periods, January 1, 2003 through March
6, 2003 and March 7, 2003 through December 31, 2003, amounted to approximately
$3.0 million on combined net revenues of approximately $15.5 million or
approximately 19% of net revenues for the combined two periods.

      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 3, 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.

                                       11
<PAGE>


      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
2005.

      OPERATING EXPENSES

      Our operating expenses consist of product research and development costs,
and general and administrative, selling, depreciation and amortization, and
amortization of intangible assets expenses.

      For the period from March 7, 2003 through December 31, 2003, our operating
expenses amounted to approximately $12.8 million or approximately 98% of net
revenues of $13.1 million as compared to operating expenses of approximately
$7.8 million or approximately 37% of net revenues of approximately $21.2 million
for the year ended December 31, 2002, an increase in operating expenses of
approximately $5.1 million or approximately 66% between the comparative
reporting periods.

      Combined operating expenses for the two periods, January 1, 2003 through
March 6, 2003 and March 7, 2003 through December 31, 2003, amounted to
approximately $13.5 million or approximately 87% of combined net revenues of
$15.5 million as compared to operating expenses of approximately $7.5 million or
approximately 35% of net revenues of approximately $21.2 million for the year
ended December 31, 2002, an increase of approximately $6.0 million or
approximately 80% between the comparative twelve-month periods.

      The largest contributor to the increase in our operating expenses between
the comparative periods is an increase of our general and administrative
expenses due to our reverse acquisition of Inyx Pharma on April 28, 2003. For
the period ended December 31, 2003, general and administrative expenses were
approximately 94% of our overall operating expenses (see "General and
Administrative Expenses" below).

      As a consequence, as our general and administrative expenses increased
between the comparative periods, our operating expenses also increased.

      For the period ended December 31, 2003, we did not incur any research and
development costs. Inyx Pharma's predecessor business, Miza UK, did not have any
research and development costs and did not incur any amortization of intangible
assets expenses for the year ended December 31, 2002.

      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.

                                       12
<PAGE>


      General and administrative expenses amounted to approximately $12.1
million or approximately 92% of net revenues of $13.1 million for the period
from March 7, 2003 through December 31, 2003 as compared to approximately $6.5
million in general and administrative expenses or 31% of net revenues of
approximately $21.2 million for the year ended December 31, 2002, an increase of
approximately $5.6 million or approximately 86% between the comparative
reporting periods.

      Combined general and administrative expenses for the two periods, January
1, 2003 through March 6, 2003 and March 7, 2003 through December 31, 2003,
amounted to approximately $12.7 million or approximately 82% of combined net
revenues of $15.5 million, as compared to general and administrative expenses of
approximately $6.5 million or approximately 31% of net revenues of approximately
$21.2 million for the year ended December 31, 2002, an increase of approximately
$6.2 million or approximately 95% between the comparative twelve-month periods.

      The significant increases in the general and administrative expenses
between the respective comparative periods are largely attributable to a number
of business ramp-up and corporate overhead costs that we had to incur as a
result of our reverse acquisition of Inyx Pharma on April 28, 2003.

      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 $12.1 million we spent on general and
administrative expenses from March 7, 2003 through December 31, 2003,
approximately $1.3 million of such expenses was related to warrants issued in
conjunction with services provided by consultants and investment bankers;
approximately $2.0 million of expenses related to reorganization and acquisition
costs; approximately $1.7 million of these expenditures were related to salaries
and benefits; approximately $1.6 million in expenses for legal, accounting and
consulting fees; approximately $910,000 in travel, communication and corporate
development costs, including rent paid; approximately $1.1 million in expenses
for investor relation activities; approximately $753,000 relating to a
consulting services provided by an affiliated Partnership controlled by the
Chairman and his immediate family 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 period from March 7, 2003 through December 31,
2003, we also expensed approximately $1.5 million for employee vested options
granted to employees, officers, directors, and other persons who made valuable
contributions to our Company as per the Company's 2003 Stock Option Plan. We
expect to be issuing stock options to such persons on a recurring basis.

      In comparison, for the year ended December 31, 2002, Inyx Pharma's
predecessor business, 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 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 consist 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.

                                       13
<PAGE>


      Selling expenses were approximately $260,000 or approximately 2% of net
revenues of approximately $13.1 million for the period from March 7, 2003
through December 31, 2003 as compared to approximately $363,000 or approximately
2% of net revenues of approximately $21.2 million, for the year ended December
31, 2002.

      Combined selling expenses for the two periods, January 1, 2003 through
March 6, 2003 and March 7, 2003 through December 31, 2003, amounted to
approximately $311,000 or 2% of combined net revenues of approximately $15.5
million.

      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.

      We believe that once we commence marketing our own proprietary products,
we may also need to build or contract our own sales force. We expect to 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, plant 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.

      Depreciation and amortization expenses were approximately $347,000 or 3%
of net revenues of approximately $13.1 million for the period from March 7, 2003
through December 31, 2003 as compared to depreciation and amortization expenses
of approximately $936,000 or approximately 4% of net revenues of approximately
$21.2 million for the year ended December 31, 2002, a decrease of approximately
$589,000 or 63% between the comparative periods.

      Combined depreciation and amortization expenses for the two periods,
January 1, 2003 through March 6, 2003 and March 7, 2003 through December 31,
2003, amounted to approximately $415,000 or approximately 3% of combined net
revenues of $15.5 million.

      Since our reverse acquisition of Inyx Pharma, there were no significant
additions to fixed assets during the period from March 7, 2003 through December
31, 2003. Our depreciation and amortization costs for the year were $347,000
comprised of $340,000, for the depreciation of property, plant and equipment and
$7,000 for the amortization of equipment under capital leases.

      Amortization of Intangible Assets

      The fair values assigned to the intangible assets acquired are based on
estimates and assumptions provided and other information compiled by management,
including independent valuations, that utilize established valuation techniques
appropriate for the industry the Company operates in.

      The amortization expenses for intangible assets for the period from March
7, 2003 through December 31, 2003 were approximately $139,000 or approximately
1% of net revenues of approximately $13.1 million and there were no similar
charges in the year ended December 31, 2002.

                                       14
<PAGE>

      Our amortization expenses for intangible assets relate to the Company's
purchased intangible assets related to the Inyx Pharma acquisition of Miza UK's
assets; the intangible assets include Miza UK's customer list and know-how. The
customer list is amortized over a period of 12 years and know-how is amortized
over 10 years.

      These intangible assets are amortized on a straight line basis over their
estimated remaining useful lives in proportion to the underlying cash flows that
were used in determining the acquired value.

      OPERATING LOSS BEFORE INTEREST AND FINANCING COSTS, REORGANIZATION ITEMS,
INCOME TAX BENEFIT AND DISCONTINUED OPERATIONS

      Loss from operations before interest and financing costs, reorganization
items, income tax benefit and discontinued operations amounted to approximately
$10.4 million for the period from March 7, 2003 through December 31, 2003
compared to a loss from operations before other such expenses of approximately
$3.9 million for the year ended December 31, 2002, an increased loss from
operations of approximately $6.5 million or 167%.

      The combined loss from operations before other expenses for the two
periods, January 1, 2003 through March 6, 2003 and March 7, 2003 through
December 31, 2003, amounted to approximately $10.5 million.

      For the comparative periods, the loss from operations before other
expenses, for the period ended December 31, 2003 and the combined periods of
2003, 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.
The increased loss from operations before other expenses between the comparative
periods is also due to increased general and administrative costs, and start-up
and business integration, marketing and corporate development costs as a result
of our acquisition of Inyx Pharma on April 28, 2003.

      INTEREST AND FINANCING COSTS

      Interest and financing costs consist of interest expense related to the
long term debt as well as the amortization of the financing charges and the
amortization of the debt discount associated with the fair value of the warrants
issued and the beneficial conversion feature related to the financings with
Laurus Master Fund, Ltd. ("Laurus Funds").

      For the period from March 7, 2003 through December 31, 2003, interest and
financing costs were approximately $4.3 million or approximately 33% of net
revenues of approximately $13.1 million, compared to interest and financing
costs of approximately $1.7 million or approximately 8% of net revenues of
approximately $21.2 million, for the year ended December 31, 2002.

      On a combined basis, interest and financing costs for the two periods,
January 1, 2003 through March 6, 2003 and March 7, 2003 through December 31,
2003, amounted to approximately $4.5 million or approximately 29% of net
revenues of $15.5 million for pro forma year ended December 31, 2003 as compared
to approximately $1.7 million or approximately 8% of net revenues of
approximately $21.2 million, 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
current lender, Laurus Funds. The 2003 interest expense also includes accrued
interest to our convertible note holder, Stiefel Laboratories, Inc. ("Stiefel")
and the amortization of debt discount of approximately $48,000 related to the
fair value of the warrants issued to Laurus Funds in relation to their 7%
convertible note and the advances under the revolving line of credit.

      In addition, since this debt is convertible into equity at the option of
the note holder at the date of issuance, at beneficial conversion rates, an
embedded beneficial conversion feature amounting to approximately $3.7 million
was recorded as a charge to interest expense during the period from March 7,
2003 through December 31, 2003.

                                       15
<PAGE>


      The 2002 interest expenses, amounting to approximately $1.7 million, all
relate to the outstanding indebtedness of Miza UK at the time and such expenses
are not indicative of the interest that we expect that we will incur going
forward as a result of our new financing arrangements with Laurus Funds.

      REORGANIZATION ITEMS

      Inyx did not incur any reorganization costs in 2003 however, our
predecessor company, Miza UK, incurred reorganization and transaction charges of
approximately $25.1 million for the year ended December 31, 2002. Such charges
related to the Administration process that Miza UK underwent.

      These reorganization items were comprised of items of income, expense and
loss that were realized or incurred by Miza UK as a result of our predecessor
operation being placed under the supervision of an administrator in accordance
with the United Kingdom Insolvency Act 1986.

      The following summarizes the reorganization charges recorded for the year
ended December 31, 2002, as a result of the administration process that Miza UK
underwent:

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 approximately $450,000 were one-time
costs and fees incurred during the Administration process. Such costs and fees
were incurred by Begbies Traynor, the court-appointed administrator. Miza UK was
operated and controlled by its Administrator from September 3, 2002, the date it
went into Administration, until March 7, 2003, the date the Administrator sold
the majority of its assets to Inyx Pharma. Under U.K. law, the Administrator
operates and controls a business that has gone into Administration on behalf of
a court until that business is sold as a going concern, or its assets sold or
liquidated for the benefit of creditors.

      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. The impairment
amount includes property, plant and equipment assets relating to the Biopharma
division which was historically a division of Miza UK, however was not acquired
by Inyx Pharma, and is accounted for as discontinued operations in the Company's
consolidated financial statements for all periods.

      The impairment of intangible assets of approximately $7.0 million relates
to the write-down of the book value of the goodwill and other intangible assets
of Miza UK, which, once that operation went into Administration, were not
sufficient to recover such carrying amounts. This impairment amount includes
intangible assets relating to the Biopharma division of Miza UK.

      Impairment of advances to affiliated entities relates to approximately
$8.1 million of an unrecoverable advance to a Miza UK affiliated company, prior
to its acquisition by Inyx Pharma.

      INCOME TAX BENEFIT

      For the period from March 7, 2003 through December 31, 2003, 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.

      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.

                                       16
<PAGE>

      DISCONTINUED OPERATIONS

      The Biopharma Division was historically part of the Miza UK business but
was an operation not acquired by Inyx Pharma on March 7, 2003. Therefore, its
results of operations are presented as discontinued operations in the underlying
historical financial statements.

      The Biopharma Division had net revenues of approximately $334,000 and
costs of revenue of approximately $892,000, resulting in a gross loss of
approximately $558,000 for the period January 1, 2003 through March 6, 2003.

      For the year ended December 31, 2002, Miza UK's Biopharma Division had net
revenues of approximately $3.5 million, with costs of sales of approximately
$3.9 million, general and administrative expenses of approximately $395,000,
sales expenses of approximately $15,000, and depreciation and amortization
expenses of approximately $1.1 million, resulting in a net loss of approximately
$718,000.

      All the assets and liabilities relating to the Biopharma division have
been included in the reorganization charge described above under Reorganization
Items.

      NET LOSS

      The net loss for the period from March 7, 2003 through December 31, 2003
was approximately $13.4 million as compared with a net loss of approximately
$31.0 million for the year ended December 31, 2002.

      The combined net loss for the two periods, January 1, 2003 through March
6, 2003 and March 7, 2003 through December 31, 2003, amounted to approximately
$14.3 million.

      The major reason for the decrease in the net loss between the actual and
combined comparative periods in 2003 and for the year ended December 31, 2002
was the administration and reorganization costs that Miza UK incurred during
2002 as a result of the Administration process. These costs amounted to
approximately $25.0 million.

      For the period from March 7, 2003 through 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. In comparison, for the year ended December 31, 2002, the
primary reason that our predecessor company incurred a significant net loss was
attributable to the administration process and related reorganization costs.

      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

                                       17
<PAGE>

were partially dependant on funding of our working capital requirements in the
form of stockholder loans from affiliates of the Company. For the period from
March 7, 2003 through 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, 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 period from March 7, 2003 through December
31, 2003, such losses resulted from reduced contract development and
manufacturing revenues in connection with the Miza UK Administration process,
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. This combined total loss of $14.30 million was offset by
approximately $1.3 million in a deferred income tax asset creating a combined
net loss for the year ended December 31, 2003 of $13.0 million and the loss for
the period from March 7, 2003 through December 31, 2003 of $14.6 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 period from March 7, 2003 through December 31, 2003, 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

                                       18
<PAGE>

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 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 additional 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                                                 Payments due by Period
CONTRACTUAL OBLIGATIONS
(amounts in thousands of U.S. dollars)
---------------------------------------------------------------------------------------------------
                                                    2004     2005-2006   2007-2008  Thereafter    Total
<S>                                               <C>         <C>         <C>         <C>        <C>

Long-Term Debt Obligations - Principal            $ 1,382     $ 3,427     $ 4,013     $    --    $ 8,822

Long Term Debt Obligations -Interest                  578         784         241          --      1,603

Operating Lease Obligations (1)                       827       1,082         772       1,903      4,584
                                                  -------     -------     -------     -------    -------
Total                                             $ 2,787     $ 5,293     $ 5,026     $ 1,903    $15,009
                                                  =======     =======     =======     =======    =======
</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

                                       19
<PAGE>

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.

      Cash Flows from Operating Activities for the Period Ended December 31,
2003

      The net cash used in operating activities for the period from March 7,
2003 through December 31, 2003 amounted to approximately $5.7 million as
compared to approximately $3.6 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 period from March 7, 2003 through December 31, 2003
were the number of one time business integration and start-up costs and
expenses, totaling approximately $9.1 million, which were included as general
and administrative expenses. These costs were incurred 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 period from March 7, 2003 through December 31, 2003, the net cash
used in operating activities included a net loss of approximately $13.4 million
adjusted for non-cash charges totaling approximately $8.3 million primarily due
to the issuance of equity securities as compensation for services and financing
costs, and beneficial conversion feature related to convertible debt issued to
Laurus, 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 $936,000 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 for the Period Ended December 31,
2003

      The net cash used in investing activities for the period from March 7,
2003 through December 31, 2003 amounted to approximately $394,000 as
compared to approximately $2 million of net cash used in investing activities by
Miza UK for the year ended December 31, 2002.  Capital expenditures of
$394,000 related to the purchase of computer hardware and software (including
deposits required for a new business information system), and office furniture
and fixtures.

                                       20
<PAGE>

      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 the 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

      For the period from March 7, 2003 through December 31, 2003, the net cash
provided by financing activities, including the net cash provided by the
financing activities of Inyx Pharma, was approximately $6.7 million consisting
of proceeds of approximately $14.3 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 $5.9
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
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 expenses, related to 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 was
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

                                       21
<PAGE>

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
covering 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 Funds") 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 Funds 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
costs of $700,000, the net proceeds of the three-year convertible note financing
with Laurus Funds 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 Funds $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 Laurus Funds, 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 Funds 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 Funds 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 Funds 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 at least $1.00 per common share - a 7%
                  interest rate on the Laurus Note is payable;
                  ii) 125% of the Fixed Conversion Price 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% 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.

                                       22
<PAGE>

      On December 30, 2003, we also closed a financing transaction with Laurus
Funds to obtain an additional $3.5 million credit facility. In addition to being
collateralized by our eligible accounts receivable, this Laurus Funds 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 and the balance of the net proceeds
were utilized for working capital purposes.

      The Laurus Funds $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 Funds. 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 Funds, 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.

      Therefore, by December 31, 2003, we had utilized proceeds from the Laurus
Funds financings to repay and extinguish all previous financings obtained
through Venture Finance. As of December 31, 2003, the outstanding amounts on the
Laurus Funds 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 Funds 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 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

                                       23
<PAGE>

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
Funds, 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),
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 period from March 7, 2003 through 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 period from March 7, 2003 through 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 $394,000 in
capital expenditures for the purchase of computer hardware and software, and
office furniture and fixtures. Although we had originally planned a number of
additional capital expenditures at our Inyx Pharma operation in 2003, we instead
focused our expenditures on business integration and corporate development
activities.

      In comparison, for the year ending December 31, 2002, approximately $1.8
million was spent on 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.

                                       24
<PAGE>

      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 to 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
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.

                                       25
<PAGE>

                                   SIGNATURES

             Pursuant to the requirements of the Securities Act, the Company and
has duly caused this Form 10KSB/A to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York, State of New York, on April
8, 2005.

INYX, INC.


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

Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and
on the dates indicated.

<TABLE>
<CAPTION>
Name                                          Office                            Date
----                                          ------                            ----

<S>                                        <C>                                        <C>
/s/ Jack Kachkar                Chairman, Chief Executive                    April 8, 2005
--------------------------
Jack Kachkar                    Officer and Director
                                (Principal Executive Officer)

/s/ Rima Goldshmidt             Secretary, Vice President                    April 8, 2005
--------------------------
Rima Goldshmidt                 and Acting Chief Financial Officer
                                (Principal Financial and Accounting Officer)

/s/ Steven Handley              President and Director                       April 8, 2005
--------------------------
Steven Handley

/s/ Douglas Brown               Director                                     April 8, 2005
--------------------------
Douglas Brown

/s/ Joseph A. Rotmil            Director                                     April 8, 2005
--------------------------
Joseph A. Rotmil

/s/ Colin Hunter                Vice President and Director                  April 8, 2005
--------------------------
Colin Hunter
</TABLE>

                                       26
<PAGE>

                                   INYX, INC.


Item 7. FINANCIAL STATEMENTS


Table of Contents ...................................................

Reports of Independent Registered Public Accounting Firm ............        F-2

Consolidated Balance Sheet as of December 31,2003....................        F-5

Consolidated Statements of Operations for the period from
March 7, 2003 through December 31, 2003; for the period
from January 1, 2003 through March 6, 2003; and the
Statement of Operations for the Year Ended December 31, 2002.........        F-6

Consolidated Statements of Stockholders' Equity and
Other Comprehensive Loss for the period from March 7,
2003 through December 31, 2003; for the period from January
1, 2003 through March 6, 2003; and Statement of
Stockholders' Equity (deficit) for the Year Ended
December 31, 2002....................................................        F-7

Consolidated Statements of Cash Flows for period from March
7, 2003 through December 31, 2003; for the period from
January 1, 2003 through March 6, 2003; and the Statement of
Cash Flows for the Year Ended December 31, 2002......................        F-8

Notes to Consolidated Financial Statements...........................        F-9



<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


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

We have audited the consolidated balance sheet of Inyx, Inc. (formerly known as
Doblique, Inc.) (the "Company") as of December 31, 2003 and the related
consolidated statements of operations, changes in stockholders' equity and cash
flows for the period from March 7, 2003 through December 31, 2003. 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 the standards of the Public Company
Accounting Oversight Board (United States). 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 consolidated financial statements referred to above present
fairly, in all material respects, the consolidated 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 period then ended in conformity
with accounting principles generally accepted in the United States of America.

As discussed in Note 3 to the consolidated financial statements, the
accompanying consolidated balance sheet and related consolidated statements of
operations, changes in stockholders' equity (deficit) and cash flows have been
restated to reflect the accounting for the acquisition of certain assets of Miza
Pharmaceuticals (UK) Ltd. as a purchase, the recording of beneficial conversion
features and warrants associated with certain convertible debt.


/s/ Berkovits, Lago & Company, LLP

Fort Lauderdale, Florida
April 9, 2004, except for
Note 3 as to which the date
is April 1, 2005


                                      F-2
<PAGE>


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors of
Miza Pharmaceuticals (UK) Ltd. (the predecessor to Inyx, Inc.)

We have audited the statements of operations, changes in stockholders' equity
(deficit) and cash flows of Miza Pharmaceuticals (UK) Ltd. (the predecessor to
Inyx, Inc.) (the "Company") for the period from January 1, 2003 through March 6,
2003. 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 the standards of the Public Company
Accounting Oversight Board (United States). 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 results of operations and cash flows of Miza
Pharmaceuticals (UK) Ltd. (the predecessor to Inyx, Inc.) for the period then
ended in conformity with accounting principles generally accepted in the United
States of America.

As discussed more fully in Note 1 to the financial statements, Miza
Pharmaceuticals (UK) Ltd. 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 Administrator, Miza Pharmaceuticals (UK) Ltd.
sold the majority of its property, plant and equipment, inventory, customer base
and intellectual property to INYX Pharma, Ltd., a subsidiary of Inyx, Inc., and
the designated successor of Miza Pharmaceuticals (UK) Ltd.


/s/ Berkovits, Lago & Company, LLP
Ft. Lauderdale, Florida
December 28, 2004


                                      F-3
<PAGE>


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of
Miza Pharmaceuticals (UK) Ltd. (the predecessor to Inyx, Inc.)

We have audited the balance sheet of Miza Pharmaceuticals (UK) Ltd. (the
predecessor to Inyx, Inc.) (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 the standards of the Public Company
Accounting Oversight Board (United States). 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 Miza Pharmaceuticals (UK) Ltd.
(the predecessor to Inyx, Inc.) 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 Note 1 to the financial statements, Miza
Pharmaceuticals (UK) Ltd. 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)
Ltd. sold the majority of its property, plant and equipment, inventory, customer
base and intellectual property to INYX Pharma, Ltd., a subsidiary of Inyx, Inc.
and the designated successor of Miza Pharmaceuticals (UK) Ltd.


/s/ Berkovits, Lago & Company, LLP
Ft. Lauderdale, Florida
May 19, 2003


                                      F-4
<PAGE>

                                INYX, INC.
                        Consolidated Balance Sheet
    (Expressed in thousands of U.S. dollars except for share amounts)

<TABLE>
<CAPTION>
                                                               ------------
                                                               DECEMBER 31,
                                                                   2003
                                                                 RESTATED
                                                               ------------
<S>                                                            <C>
                                     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                                           860
Other assets                                                            45
Deferred tax asset                                                   1,294
Purchased intangible assets, net                                     1,739
                                                                  --------
                                                                     9,121
                                                                  --------

       Total assets                                               $ 15,490
                                                                  ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Borrowings under revolving line of credit                     $  2,375
    Accounts payable                                                 2,178
    Accrued expenses and other current liabilities                     996
    Current portion of long-term debt                                1,483
                                                                  --------
         Total current liabilities                                   7,032
                                                                  --------
Long term debt, net of current portion                               6,617
                                                                  --------
         Total liabilities                                          13,649
                                                                  --------

Commitments and contingencies

Stockholders' equity:
    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
      at December 31, 2003                                              29
    Additional paid-in capital                                      15,599
    Accumulated deficit                                            (13,392)
    Subscriptions receivable                                          (100)
    Accumulated other comprehensive loss -
      foreign currency translation adjustment                         (295)
                                                                  --------
         Total stockholders' equity                                  1,841
                                                                  --------

         Total liabilities and stockholders' equity               $ 15,490
                                                                  ========
</TABLE>

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

                                      F-5
<PAGE>

                                   INYX, INC.
                      Consolidated Statements of Operations
       (Expressed in thousands of U.S. dollars, except for share amounts)

<TABLE>
<CAPTION>
                                                                         -----------------------------------------------------------
                                                                                Sucessor                     Predecessor
                                                                         -----------------------------------------------------------
                                                                          For the Period from   For the Period from    For the Year
                                                                         March 7, 2003 through   January 1, 2003         Ended
                                                                          December 31, 2003      March 6, 2003     December 31, 2002
                                                                                 Restated
                                                                         -----------------------------------------------------------
<S>                                                                            <C>                 <C>                 <C>
Net revenues                                                                   $     13,099        $      2,396        $     21,184
Cost of sales                                                                        10,634               1,876              17,322
                                                                         -----------------------------------------------------------
      Gross profit                                                                    2,465                 520               3,862

Operating expenses:
      Research and development                                                           --                  --                  --
      General and administrative expenses                                            12,093                 568               6,456
      Selling expenses                                                                  260                  51                 363
      Depreciation and amortization                                                     347                  75                 936
      Amortization of intangible assets                                                 139                  --                  --
                                                                         -----------------------------------------------------------
                           Total operating expenses                                  12,839                 694               7,755
                                                                         -----------------------------------------------------------

Loss from continuing operations before interest and
financing costs, reorganization items, income tax
benefit and discontinued operations                                                 (10,374)               (174)             (3,893)

Interest and financing costs                                                          4,312                 176               1,680
                                                                         -----------------------------------------------------------

Loss before reorganization items, income tax
benefit and discontinued operations                                                 (14,686)               (350)             (5,573)

Reorganization items                                                                     --                  --              25,049
                                                                         -----------------------------------------------------------

Loss before income tax benefit and
 discontinued operations                                                            (14,686)               (350)            (30,622)

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

Loss before discontinued operations                                                 (13,392)               (350)            (30,270)

Loss from discontinued operations, net of income taxes                                   --                 558                 718
                                                                         -----------------------------------------------------------

Net loss                                                                       $    (13,392)       $       (908)       $    (30,988)
                                                                         ===========================================================
Basic and fully diluted loss per share
      Loss before discontinued operations                                      $      (0.59)                 --                  --
      Loss from discontinued operations, net of income taxes                             --                  --                  --
                                                                         -----------------------------------------------------------


                                                                               $      (0.59)                 --                  --
                                                                         ===========================================================
Weighted-average number of shares
 used in computing per share amounts                                             22,857,260                  --                  --

</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.
                                      F-6
<PAGE>


                                   INYX, INC.
          Consolidated Statement of Changes in Stockholders' Equity and
                            Other Comprehensive Loss
                    (Expressed in thousands of U.S. dollars)
                                   (Restated)

<TABLE>
<CAPTION>
                                                                                                  Accumu-
                                                                                                  lated
                                                                                                  Other
                                                        Common Stock      Additional Stock        Compre-    Accumu-
                                                    Number of             Paid-in    Subscription hensive    lated
                                                    Shares     Par Value  Capital    Receivable   loss       Deficit      Total
                                                    --------   --------   --------   --------    --------    --------    --------
<S>                                                    <C>     <C>        <C>        <C>         <C>         <C>         <C>
Predecessor
Balances at January 1, 2002                            5,000   $  8,022   $     --   $     --    $   (771)   $    524    $  7,775
Net loss for the year                                     --         --         --         --          --     (30,988)    (30,988)
Foreign currency translation adjustment                   --         --         --         --        (732)         --        (732)

                                                    --------   --------   --------   --------    --------    --------    --------
Balances at December 31, 2002                          5,000      8,022         --         --      (1,503)    (30,464)    (23,945)
                                                    --------   --------   --------   --------    --------    --------    --------

Net loss for the period
  January 1 through March 6, 2003                         --         --         --         --          --        (908)       (908)
Foreign Currency translation adjustment                   --         --         --         --        (102)         --        (102)

                                                    --------   --------   --------   --------    --------    --------    --------
Balances at March 6, 2003                              5,000   $  8,022   $     --   $     --    $ (1,605)   $(31,372)   $(24,955)
                                                    ========   ========   ========   ========    ========    ========    ========


Successor
Balances at March 7, 2003                             16,000   $     16   $  2,081   $     --    $     --    $     --    $  2,097
Issuance of stock for reverse acquisition              5,000          5         18         --          --          --          23
Issuance of stock for finders fees (April 17)          2,450          2      1,302         --          --          --       1,304
Issuance of stock for services (April 21)              1,500          2        799         --          --          --         801
Issuance of stock net of offering
  costs of $11,800 (August 22)                           500         --        488         --          --          --         488
Issuance of stock net of offering
  costs of $310,702 (November 4)                       3,000          3      2,686         --          --          --       2,689
Issuance of stock for options exercised
  (November 17)                                           75          1         90         --          --          --          91
Issuance of stock options                                 --         --      1,513         --          --          --       1,513
Issuance of warrants for services                         --         --      1,261         --          --          --       1,261
Issuance of warrants with convertible debt                --         --      5,361         --          --          --       5,361
Subscriptions receivable                                  --         --         --       (100)         --          --        (100)
Foreign currency translation adjustment                   --         --         --         --        (295)         --        (295)
Net loss for the period                                   --         --         --         --          --     (13,392)    (13,392)

                                                    --------   --------   --------   --------    --------    --------    --------
Balances at December 31, 2003                         28,525   $     29   $ 15,599   $   (100)   $   (295)   $(13,392)   $  1,841
                                                    ========   ========   ========   ========    ========    ========    ========
</TABLE>

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


                                      F-7
<PAGE>

                                   INYX, INC.
                      Consolidated Statements of Cash Flows
                    (Expressed in thousands of U.S. dollars)

<TABLE>
<CAPTION>
                                                                      -----------------------------------------------------
                                                                          Sucessor                      Predecessor
                                                                       -----------------------------------------------------
                                                                      For the Period from   For the Period from  For the Year
                                                                      March 7, 2003 through  January 1, 2003        Ended
                                                                      December 31, 2003      March 6, 2003     December 31, 2002
                                                                          Restated
                                                                       -----------------------------------------------------
<S>                                                                    <C>                <C>                <C>
Cash flows from operating activities:
    Net loss for the period                                            $       (13,392)   $          (908)   $       (30,988)
                                                                       -----------------------------------------------------
      Add: loss from discontinued operations                                        --                558                718
      Loss from continuing operations                                          (13,392)              (350)           (30,270)
    Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
      Reorganization items                                                          --                 --             25,049
      Depreciation and amortization                                                347                 75                936
      Interest and amortization of financing costs and debt discount             3,821                 --                 --
      Amortization of intangible assets                                            139                 --                 --
      Deferred tax asset                                                        (1,294)                --                 --
      Issuance of stock for services                                             2,105                 --                 --
      Reserve for inventory obsolescence                                           207                 --                713
      Provision for bad debts                                                      191                 --              1,386
      Stock option compensation                                                  1,513                 --                 --
      Warrants issued for financing  fees                                        1,261                 --                 --
      Issuance of shares in recapitalization                                        23                 --                 --
    Changes in assets and liabilities:
      (Increase) decrease in accounts receivables                               (3,586)              (215)               152
      (Increase) decrease in inventory                                              23                385                726
      (Increase) decrease in prepaid and other current assets                      230                267               (283)
      Increase in other assets                                                     (45)
      Increase in accounts payable and accrued liabilities                       2,380                640              3,017
      Increase in deferred revenues                                                351                 --                 --
      Increase in liabilities subject to compromise                                 --                353              2,210
                                                                       -----------------------------------------------------

           Net cash provided by (used in) continuing operations                 (5,726)             1,155              3,636
                                                                       -----------------------------------------------------

    Net cash provided by (used in) discontinued operations                          50               (617)              (397)
                                                                       -----------------------------------------------------

           Net cash provided by (used in) operating activities                  (5,676)               538              3,239
                                                                       -----------------------------------------------------

Cash flows from investing activities:
    Acquisition of assets                                                           --                 --               (190)
    Purchase of property, plant and equipment                                     (394)               (18)            (1,776)
                                                                       -----------------------------------------------------

           Net cash  used in investing activities                                 (394)               (18)            (1,966)
                                                                       -----------------------------------------------------

Cash flows from financing activities:
    Borrowings under revolving line of credit, net                               5,735               (522)                --
    Repayment of revolving line of credit                                       (2,655)
    Advances by stockholder                                                        450                 --                 --
    Repayment to stockholder                                                      (450)                --                 --
    Proceeds from issuance of long term debt                                     4,500                 --              8,610
    Repayment of long term debt                                                 (2,771)               104             (9,693)
    Payment of financing fees                                                     (417)                --                 --
    Proceeds from issuance of promissory demand notes                              100                 --                 --
    Increase in deferred financing costs                                          (900)                --                 --
    Payment of financing fees on revolving line of credit                         (157)
    Gross Proceeds from issuance of stock                                        3,500                 --                 --
    Costs related to issuance of common stock                                     (323)
    Proceeds from exercise of stock options                                         90                 --                 --
    Advances to affiliated and related parties                                      --                 --               (652)
                                                                       -----------------------------------------------------

           Net cash provided by (used in) financing activities                   6,703               (418)            (1,735)
                                                                       -----------------------------------------------------

Effect of foreign exchange rate changes
    on cash and cash equivalents                                                  (295)              (102)               (72)

Change in cash                                                                     338                 --               (534)

Cash at beginning of period                                                        458                 --                534
                                                                       -----------------------------------------------------

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

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

                                      F-8
<PAGE>

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          (Tabular amounts are expressed in thousands of U.S. dollars)

NOTE 1: BUSINESS DESCRIPTION AND PRESENTATION


      Inyx, Inc. ("Inyx" or the "Company") through its wholly-owned
subsidiaries, Inyx Pharma Limited and Inyx Canada Inc., is a 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 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; such assets and operations were
nominal. Subsequent to the discontinuance of its horse racing operations, the
Company concluded a reverse acquisition of Inyx Pharma Limited ("Inyx Pharma");
an aerosol pharmaceutical manufacturing company incorporated under the laws of
England and Wales, and changed its name to Inyx, Inc. ("Inyx").

      The acquisition of Inyx Pharma was consummated on April 28, 2003, by
exchanging 16 million shares of the Company's restricted common stock for 100%
of the outstanding common stock of Inyx Pharma. As a result of the exchange, the
stockholders of Inyx Pharma became the Company's controlling stockholders, in
the aggregate, holding approximately 64% of the Company's outstanding shares.
The transaction was accounted for as a recapitalization of Inyx using the
reverse acquisition method of accounting and therefore, the historical financial
statements of Inyx Pharma are presented herein as the Company's historical
financial statements. As a result of the Inyx Pharma transaction, the Company
incurred costs of approximately $2.7 million consisting primarily of legal,
accounting, consulting and finders' fees. All such costs were expensed as
incurred.

      Prior to its reverse acquisition by the Company, on March 7, 2003, Inyx
Pharma had purchased the majority of the pharmaceutical business assets of Miza
Pharmaceuticals (UK) Ltd. ("Miza UK") out of Administration (a United Kingdom
equivalent of Chapter 11 bankruptcy protection and reorganization) for
approximately $8.3 million, consisting of an approximately $7.1 million cash
payment to the Administrator for Miza UK's assets and approximately $1.2 million
in direct transaction costs. The Inyx Pharma acquisition of Miza UK's business
assets was accounted for utilizing the purchase method of accounting.
Accordingly, the total purchase price was allocated to the tangible and
identifiable intangible assets acquired based on their estimated fair values.
The intangible assets acquired consisted of customer list and know-how which
were allocated a fair value of approximately $1,280,000 and $598,000,
respectively, based on an independent third party evaluation.

      Prior to its acquisition of the majority of Miza UK's business assets,
Inyx Pharma was a non-operating private corporation with nominal net assets. As
the historical financial statements of Inyx Pharma are presented herein as the
Company's historical financial statements, and because as of March 7, 2003, Inyx
Pharma's sole operation was essentially the continuation of the Miza UK
business, the Company's historical financial statements for the period from
January 1, 2003 through March 6, 2003 and prior, are those of Miza UK, and are
therefore presented as "Predecessor" financial statements.


                                      F-9
<PAGE>

      The Company's financial statements for the periods commencing March 7,
2003 are referred to as "Successor" financial statements. The financial
statements for all periods are collectively referred to as "Inyx" or the
"Company". Additionally, as the Biopharma Division was historically part of the
Miza UK business but was an operation not acquired by Inyx Pharma, its results
of operations are presented as discontinued operations in the Predecessor
Company's financial statements.

      Inyx currently manages and operates its business as one operating segment.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      a)    Consolidated Financial Statements

      The accompanying consolidated financial statements include the accounts of
Inyx 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 inter-company accounts and transactions have been eliminated in
consolidation


                                      F-10
<PAGE>

      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 at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. The more significant estimates are those
used by management to measure the recoverability of intangible assets,
deferred tax asset, the allowances for doubtful accounts and inventory reserves
and the value of shares, options or warrants issued for services or in
connection with financing transactions. 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 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 each period end. The
provision for the allowance for doubtful accounts is included in general and
administrative expenses in the accompanying consolidated statements of
operations.

      d) Inventory

      Inventory is valued using the first-in, 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 operations
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 respective assets.
Maintenance, repairs and other expenses that do not extend their useful life are
expensed as incurred.

      f) Purchased Intangible Assets

      The Company's purchased intangible assets consist of a customer list and
know-how. These intangible assets are accounted for in accordance with Statement
of Financial Accounting Standards No. 142, "Goodwill and Other Intangible
Assets"("SFAS No. 142") and are amortized on a straight line basis over their
estimated remaining useful lives in proportion to the underlying cash flows that
were used in determining the acquired value. Customer list is amortized over a
period of 12 years and know-how is amortized over 10 years.

      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) Business Combinations

      The Company accounts for business combinations in accordance with
Statement of Financial Accounting Standard No. 141 "Business Combinations"
("SFAS No. 141"). SFAS No.141 requires that the purchase method of accounting be
used for all business combinations. SFAS No.141 requires that goodwill and
intangible assets with indefinite useful lives no longer be amortized, but
instead be tested for impairment at least annually by comparing carrying value
to the respective fair value in accordance with the provisions of Statement of
Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets"
("SFAS No.142"). This pronouncement also requires that intangible assets with
estimable useful lives be amortized over their respective estimated useful lives


                                      F-11
<PAGE>

to their estimated residual values, and reviewed for impairment by assessing the
recoverability of the carrying value, The Company has adopted the provisions of
SFAS 141 and SFAS 142 as of January 1, 2003.

      i) Impairment of Long Lived Assets and Intangible Assets

      The Company reviews the carrying value of its long lived assets including
purchased intangible assets 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
than 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.

      j) 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 for any of the periods presented. The carrying values of
these financial instruments approximated their fair market value as of December
31, 2003 and 2002.

      k) Revenue Recognition

      The Company recognizes revenue when (1) persuasive evidence of an
arrangement exists; (2) product delivery has occurred or services have been
rendered; (3) the fee is fixed or determinable; and (4) collectability is
reasonably assured. 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.

      As of December 31, 2003 and 2002, deferred revenues amounted to $351,000
and $0, respectively and are included in accrued expenses 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 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.

      l) Convertible Debt

      Convertible debt with beneficial conversion features, whereby the
conversion feature is "in the money" are accounted for in accordance with
guidance supplied by Emerging Issues Task Force ("EITF") No. 98-5 "Accounting
for Convertible Securities with Beneficial Conversion Features or Contingently
Adjustable Conversion Ratios" and EITF No. 00-27 "Application of Issue 98-5 to
Certain Convertible Instruments." The relative fair value of the warrants has
been recorded as a discount against the debt and is amortized over the term of
the debt.

      In addition since the debt is convertible into equity at the option of the
note holder at the date of issuance at beneficial conversion rates, an embedded
Beneficial Conversion Feature ("BCF") has been charged to interest and financing
costs in the accompanying consolidated statement of operations and as an
increase to additional paid-in capital at the time of issuance.

      For convertible debt and related warrants, the recorded debt discount is
calculated at the issuance date as the difference between the conversion price
and the relative fair value of the common stock and warrants into which the
security is convertible or exercisable.

      Notes 3, 12, 14 and 20 provide additional information on the valuation of
the warrants and the beneficial conversion feature.

      m) Net Loss per Share


                                      F-12
<PAGE>

      The Company follows the guidelines of Statement of Financial Accounting
Standards No. 128, "Earnings Per Share" ("SFAS No.128") in calculating its loss
per share. SFAS No.128 states basic and diluted earnings per share are based on
the weighted average number of shares of common stock and potential common stock
outstanding during the period. Potential common stock equivalents for purposes
of determining diluted earnings per share include the effects of dilutive stock
options, warrants and convertible securities. The effect on the number of shares
of such potential common stock equivalents is computed using the treasury stock
method or the if-converted method, as applicable. The Company has excluded all
outstanding options and warrants as well as shares to be issued upon conversion
of convertible debt from the calculation of diluted net loss per share because
these securities are anti-dilutive. Accordingly, as of December 31, 2003, the
Company had common stock equivalents of approximately 10,345,000 shares related
to options and warrants; and approximately 10,880,952 shares related to shares
to be issued upon the conversion of the convertible debt.

      n) Stock Based Compensation

      On May 1, 2003, the Company adopted a Stock Option Plan that provides for
the granting of incentive stock options and non qualified stock options for the
benefit of employees, officers, consultants, directors and 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 applies the fair value method of Statement of Financial
Accounting Standards No. 123, "Accounting for Stock Based Compensation" ("SFAS
No. 123") in accounting for its stock option plan. This standard states that
compensation cost is measured at the grant date based on the value of the award
and is recognized over the service period, which is usually the vesting period.
The fair value of each option granted is estimated on the date of the grant
using the Black-Scholes option pricing model. The fair value of all vested
options granted has been charged to salaries, wages, and benefits in accordance
with SFAS No. 123.

      o) 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 period from March 7, 2003 through December 31, 2003 and the year
ended December 31, 2002 the Company's three largest customers accounted for 57%
and 42%, respectively.

      As of December 31, 2003, the Company's three largest customers accounted
for 48% of net receivables, respectively. The loss of any of these customers
could have a material adverse effect on the operations of the Company.

      p) Income Taxes

      The Company follows Statement of Financial Accounting Standards No. 109
"Accounting for Income Taxes" ("SFAS No. 109"). Under the asset and liability
method of SFAS No. 109, deferred tax assets and liabilities are recognized for
the future tax consequences attributed to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax base. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled. Under SFAS
No. 109, the effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date. If
it is more likely than not that some portion of a deferred tax asset will not be
realized, a valuation allowance is recognized.

      q) Translation of Foreign Currency

      The functional currency of the Company's United Kingdom subsidiary is the
Great Britain ("GBP"). The Company's financial statements are reported in United
States Dollars ("USD" ) 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


                                      F-13
<PAGE>

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 operations for the period.

      r) Recently Issued Accounting Standards

      In January 2003, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 143, "Accounting for Asset Retirement
Obligations" ("SFAS No. 143"). SFAS No. 143 addresses accounting and reporting
for obligations associated with the retirement of tangible long-lived assets and
the associated asset retirement costs. As of the date of adoption of SFAS No.
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 Statement of
Financial Accounting Standards No. 146, "Accounting for Costs Associated with
Exit or Disposal Activities" ("SFAS No. 146"). This standard 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 April 2003, the FASB issued Statement of Financial Accounting Standards
No. 149, "Amendment of Statement 133 on Derivative Instruments and Hedging
Activities" ("SFAS No. 149"). SFAS No. 149 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 Statement of Financial Accounting Standards
No. 150 "Accounting for Certain Financial Instruments with Characteristics of
both Liabilities and Equity" ("SFAS No. 150"). 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. The adoption of
SFAS No. 150 did not have a material effect on the Company's consolidated
financial statements.

      s) Reclassifications

      Certain amounts from prior consolidated financial statements and related
notes have been reclassified to conform to the current period presentation.

NOTE 3: RESTATEMENT OF FINANCIAL STATEMENTS

      The Company determined that the previously filed audited consolidated
financial statements for the period from March 7, 2003 through December 31,
2003, contained errors that required restatement.

      The restatement resulted primarily from correction of accounting for the
following transactions: (1) accounting for the acquisition of the Miza UK assets
as a purchase transaction rather than a reorganization of entities under common
control, (2) correction to the recognition and measurement of the beneficial


                                      F-14
<PAGE>

conversion feature relating to convertible debt, (3) correction to
classification of amortization of deferred financing costs, (4) correction to
classification of various non recurring operating costs.

      The components of the restatement are explained in the notes below the
      table.

<TABLE>
<CAPTION>
                                                                            Adjustment to
                                                                 As filed     restate     Restated
                                                                ----------------------------------
                                                                (Expressed in thousands, except per share amounts)
<S>                                                             <C>            <C>         <C>
Balance sheet data as at December 31, 2003
Deferred financing costs, net (b)                               $    905    $    (45)   $    860
Other assets (b)                                                      --          45          45
Purchased intangible assets, net (c)                                  --       1,739       1,739
Total assets (a), (c)                                             13,751       1,739      15,490
Borrowings under revolving line of credit, net of discount (a)     3,133        (758)      2,375
Long-term debt, net of current portion and debt discount (a)       7,439        (822)      6,617
Accumulated deficit (a), (c)                                     (12,696)       (696)    (13,392)
Additional paid in capital (d)                                    11,584       4,015      15,599
Total liabilities and stockholders' equity(deficit) (a), (c)      13,751       1,739      15,490

Statement of operations data for the period from
March 7, 2003 through December 31, 2003
General and administrative expenses (e)                         $  6,477    $  5,616    $ 12,093
Depreciation and amortization (e-iii)                                387         (40)        347
Amortization of intangible assets (c)                                 --         139         139
Loss from continuing operations before interest  and
  financing costs, reorganization items, income tax
  benefit and discontinued operations (a), (e)                    (4,659)     (5,715)    (10,374)
Other expenses (e)                                                 9,110      (9,110)         --
Interest and financing costs (a)                                      --       4,312       4,312
Discontinued operations (e-iv)                                       (25)         25          --
Net loss                                                         (12,500)       (892)    (13,392)
Basic and fully diluted loss per share                             (0.55)      (0.04)      (0.59)
</TABLE>


      As a consequence of the changes made to the consolidated balance sheet and
statements of operations, as noted above, the consolidated statements of cash
flows and changes in stockholders equity and other comprehensive loss have been
restated accordingly.

      a)    Valuation of Warrants and Beneficial conversion feature ("BCF")

      The Company completed its analysis of the accounting for the convertible
debt and warrants issued to Laurus Master Fund Ltd. ("Laurus Funds"). The
analysis indicated that the beneficial conversion feature and the fair value
assigned to the warrants relating to these instruments, as previously recorded
on the Company's financial statements, were understated. Accordingly the
historical financial statements presented herein are restated to account for
these items in accordance with Emerging Issues Task Force ("EITF") No. 98-5
"Accounting for Convertible Securities with Beneficial Conversion Features or
Contingently Adjustable Conversion Ratios" and EITF No. 00-27 "Application of
Issue 98-5 to Certain Convertible Instruments."

      These corrections increased additional paid-in capital by $4.0 million and
increased debt discount by $1.6 million as of December 31, 2003 and increased
interest and financing costs by $4.3 million, including interest relating to
amortization of debt discount amounting to approximately $48,000 for the period
from March 7, 2003 through December 31, 2003.

      b) Reclassification of Other Assets

      The Company has revised its consolidated balance sheet classification to
separately disclose long term deposits and other long term assets amounting to
approximately $45,000 as of December 31, 2003, which had previously been
reported as deferred financing costs and other assets.

      c) Accounting for the purchase of Miza Pharmaceuticals (UK) Ltd.'s assets

      On March 7, 2003, the Company's subsidiary, Inyx Pharma Ltd. ("Inyx
Pharma") had purchased the majority of the pharmaceutical business assets of
Miza Pharmaceuticals (UK) Ltd. ("Miza UK") out of Administration (a United
Kingdom equivalent of bankruptcy protection and reorganization) for
approximately $8.3 million, consisting of an approximately $7.1 million cash
payment to the Administrator for the acquired Miza UK assets plus approximately
$1.2 million in direct transaction costs. This transaction was accounted under


                                      F-15
<PAGE>

the purchase method of accounting rather than the original method used to
account for reorganization of entities under common control. Under the purchase
method of accounting, the purchase price is allocated to the fair value of the
net assets acquired with any excess allocated to identifiable tangible and
intangible assets. Accordingly, the total purchase price of approximately $8.3
million incurred by Inyx Pharma has been allocated to the acquired identifiable
tangible and intangible Miza UK assets. Based on an independent third-party fair
value valuation, the tangible assets acquired by Inyx Pharma, which consisted of
fixed assets and inventory, were allocated a fair value of approximately $5.1
million and $1.3 million, respectively, and the intangible assets, consisting of
a customer list and know-how, have been allocated a fair value of approximately
$1.3 million and approximately $600,000, respectively. As a consequence of such
purchase price allocations, no goodwill was recorded.

      In addition, previously the Company charged approximately $1.2 million of
transaction related costs and approximately $700,000 of goodwill to other
expenses. These amounts have now been reversed and capitalized to the
acquisition cost of Miza UK's assets in accordance with the purchase method of
accounting rather than the reorganization of entities under common control. This
correction decreased other expenses by approximately $1.9 million. As a result
net loss for the period from March 7, 2003 through December 31, 2003 was
affected by the same amount. The net adjustment to purchased intangible assets
approximated $1.7 million as of December 31, 2003. This correction also
increased amortization of intangible assets by $139,000 for the period from
March 7, 2003 through December 31, 2003, in the accompanying consolidated
statements of operations.

      d) Additional Paid-In capital

      At December 31, 2003 additional paid-in capital was increased by
approximately $4.2 million to reflect the net adjustment relating to the
correction of the accounting for beneficial conversion feature of the Laurus
Funds debt and respective warrants as detailed above in Note 3(a). In addition
management determined that retained earnings (deficit) included approximately
$196,000 relating to accumulated deficit of the thoroughbred horse operations,
this amount should instead be classified as additional paid-in capital,
therefore the Company corrected the classification accordingly.

      e) Other Reclassifications

      Certain amounts in the restated consolidated financial statements for the
period from March 7, 2003 through December 31, 2003 have been reclassified as
follows:

         i. Management has evaluated the nature of the expenses previously
         classified as other expenses in the consolidated statement of
         operations and determined that although certain items are one-time non-
         recurring charges, these amounts relate to the ongoing operations of
         the Company. Such amounts for the period from March 7, 2003 through
         December 31, 2003 were approximately $4.5 million and have now been
         reclassified as general and administrative expenses; approximately
         $491,000 relating to interest expense is now presented as a separate
         line item in the accompanying consolidated financial statements, and
         approximately $1.1 million for the fair value of the beneficial
         conversion feature has been reclassified to interest and financing
         costs.

         ii. Approximately $1.2 million of transaction related costs which
         previously had been charged to other expenses and approximately
         $700,000 of goodwill which previously had been written off, have now
         been capitalized as intangible assets ( see Note 3 (c) above).

         iii. Management determined that amortization expenses related to
         financing costs amounting to approximately $40,000 that had originally
         been charged along with depreciation and amortization expenses should
         instead be charged to interest expense. Accordingly, the Company has
         corrected its consolidated statement of operations to reflect this
         change in classification.

         iv. Expenses related to the thoroughbred horse racing operations
         amounting to approximately $25,000 are included as general and
         administrative expenses.

         v. Management determined that the relative fair value of the detachable
         warrants issued to Laurus Funds in relation to its convertible debt
         that had originally been expensed to the consolidated statement of
         operations instead be recorded as a discount against the debt, and the
         discount is amortized over the term of the debt. As of March 31, 2005,
         the convertible debt to Laurus Funds was paid in full as part of the
         acquisition concluded on March 31, 2005 which has not been reflected in
         these financial statements.


                                      F-16
<PAGE>

NOTE 4: ACQUISITION AND RECAPITALIZATION TRANSACTION

      Acquisition

      On March 7, 2003, Inyx Pharma acquired the business assets of Miza UK from
a court-appointed Administrator in the United Kingdom. The acquisition was
accounted for in accordance with the purchase method of accounting. Miza UK is
considered to be a predecessor business and accordingly results of operations
included in these consolidated financial statements prior to the acquisition of
Miza UK are those of Miza UK. Effective as of the purchase date the Company
established a new basis in the acquired assets based on the purchase
consideration and transaction costs totalling approximately $8.3 million. The
results of the operations of the acquired business have been included in the
consolidated financial statements since the acquisition date. In connection with
this acquisition, Inyx Pharma paid cash of approximately $7.1 million and
incurred approximately $1.2 million in direct transaction costs.

      The purchase price was allocated to the identifiable net assets purchased
based on their estimated fair market value at the date of acquisition as
follows:

      Property, plant and equipment                $5,136
      Inventory                                     1,319
      Intangible assets subject to amortization:
        Customer list                               1,280
        Know-how                                      598
                                                   ------
                                                   $8,333
                                                   ======

      The fair values assigned to the intangible assets acquired are based on
estimates and assumptions provided and other information compiled by management,
including independent valuations, that utilize established valuation techniques
appropriate for the industry the Company operates in.

      Pro forma results

      The following unaudited pro forma financial information for the year ended
December 31, 2002 reflect the combined results of operations of the Company and
Miza UK as if the acquisition had occurred at the beginning of the year:

                                                      ------------
                                                      December 31,
                                                          2002
                                                      ------------

      Pro forma net revenues                          $     21,184
                                                      ------------
      Pro forma net loss from continuing operations   $     28,984
                                                      ------------

The most significant pro forma adjustments are as follows:

1) Interest expense was reduced by approximately $1,217,000 to reflect a
reduction in interest expense assuming the repayment of Miza UK's debt. Upon
completion of the acquisition, approximately $6.5 million of the cash paid to
the Administrator was used to repay Miza UK's secured debt.

2) Interest expense was increased by approximately $180,000 to reflect the
interest on the debt issued by the Company in connection with the acquisition.

3) Depreciation expense was adjusted to reflect the charges related to changes
in fixed assets as of the closing of the acquisition.

4) Amortization of intangible assets was recorded to reflect the amortization of
purchased intangible assets subject to amortization including customer list and
know-how.


                                      F-17
<PAGE>

      The pro forma financial information should be read in conjunction with the
related historical information and is not necessarily indicative of the results
that could have been obtained had the transaction actually taken place as of the
date presented, or which may be expected to occur in the future.

      Recapitalization Transaction

      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 Company's outstanding
shares, after the issuance of shares for finders' fees and consulting services.
The transaction was accounted for as a recapitalization of Inyx using the
reverse acquisition method of accounting. Consequently, the assets transferred
were recorded at historical value.

NOTE 5: REORGANIZATION ITEMS

      For the year ended December 31, 2002 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
                                                    -------
      Total                                         $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 3, 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. The impairment
amount includes property, plant and equipment assets relating to the Biopharma
division which was historically a division of Miza UK, however was not acquired
by Inyx Pharma, and is accounted for as discontinued operations in the Company's
financial statement for all periods presented.

      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 after the business was placed into the Administration process
and once in Administration, the assets were not sufficient to recover the
carrying amounts.

      The advances to affiliated entities related to net advances to the parent
company which were subsequently compromised as Miza UK went into Administration.

NOTE 6: ACCOUNTS RECEIVABLE, NET

      Accounts receivable consist of the following:

                                                              -----------------
                                                              December 31, 2003
                                                              -----------------
      Trade receivables                                       $           3,586
      Less allowance for doubtful accounts                                 (191)
                                                              -----------------
                                                              $           3,395
                                                              =================

      There were no write-offs during the period from March 7, 2003 through
December 31, 2003. There was no bad debt expense for the period from March 7,
2003 through December 31, 2003 and $1.7 million for the year ended December 31,
2002.


                                      F-18
<PAGE>

NOTE 7: INVENTORY, NET

      Inventory is comprised of the following:

                                                              -----------------
                                                              December 31, 2003
                                                              -----------------
      Finished goods                                          $              15
      Work in process                                                       266
      Raw materials                                                       1,015
                                                              -----------------
                                                                          1,296
      Less provision for obsolescence                                      (207)
                                                              -----------------
                                                              $           1,089
                                                              =================

NOTE 8: PREPAID EXPENSES AND OTHER CURRENT ASSETS

      Prepaid expenses and other current assets consist of the following:

                                                              -----------------
                                                              December 31, 2003
                                                              -----------------
      Prepaid vendor invoices                                 $             347
      Prepaid refundable deposit for acquisition candidate                   71
      Deferred legal and consulting fees                                    152
      Prepaid rent                                                           71
      Prepaid property tax                                                   55
      Prepaid insurance                                                     128
      Sales tax receivable, net                                             132
      Other prepaid expenses                                                133
                                                              -----------------
                                                              $           1,089
                                                              ==================


NOTE 9: PROPERTY, PLANT AND EQUIPMENT, NET

      Property, plant and equipment consist of the following:

                                                              -----------------
                                                              December 31, 2003
                                                              -----------------
      Land                                                    $             546
      Buildings                                                           1,059
      Machinery, equipment and office furniture                           3,524
      Computer hardware and software                                         19
                                                              -----------------
                                                                          5,148
      Less accumulated depreciation                                        (340)
                                                              -----------------
                                                                          4,808

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

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

      For the period from March 7, 2003 through December 31, 2003 and for the
year ended December 31, 2002, depreciation of property, plant and equipment was
approximately $340,000 and $936,000, respectively. Amortization for equipment
under capital leases was approximately $7,000 for the period from March 7, 2003
through December 31, 2003 and there was no amortization of capital leases in
2002. For the period from January 1, 2003 through March 6, 2003 depreciation of
property, plant and equipment was approximately $75,000.


                                      F-19
<PAGE>


NOTE 10: PURCHASED INTANGIBLE ASSETS, NET

      Purchased intangible assets consist of the following:

                                                              -----------------
                                                              December 31, 2003
                                                                  Restated
                                                              -----------------
      Customer list (12 year life)                            $           1,280
      Know-how (10 year life)                                               598
                                                              -----------------
                                                                          1,878
      Less accumulated amortization                                        (139)
                                                              -----------------
                                                              $           1,739
                                                              =================


      Purchased intangible assets are carried at cost less accumulated
amortization. For the period from March 7, 2003 through December 31, 2003
amortization expense related to intangible assets totaled approximately
$139,000. The aggregate estimated amortization expense for intangible assets as
of December 31, 2003 for each of the following five years and thereafter is as
follows:


      2004                                                    $             166

      2005                                                                  166

      2006                                                                  166

      2007                                                                  166

      2008                                                                  166

      Thereafter                                                            909
                                                              -----------------
      Total                                                   $           1,739
                                                              =================

NOTE 11: DEFERRED FINANCING COSTS, NET

      Deferred financing costs, net are comprised of fees related to the
issuance of long term convertible debt issued to Laurus Funds. These amounts are
amortized over the term of the loan.

      Deferred financing costs, net consist of the following:

                                                              -----------------
                                                              December 31, 2003
                                                                   Restated
                                                              -----------------
      Deferred financing costs                                              900
      Less accumulated amortization                                         (40)
                                                              -----------------
                                                              $             860
                                                              =================

      For the period from March 7, 2003 through December 31, 2003, amortization
of deferred financing costs amounted to $40,000.

      For the period from January 1, 2003 through March 6, 2003 there were no
deferred financing costs and no respective amortization.

NOTE 12: BORROWINGS UNDER REVOLVING LINE OF CREDIT NET OF DEBT DISCOUNT

      On December 30, 2003, the Company issued to Laurus Funds (i) Secured
Revolving Convertible Note in the maximum principle amount of up to $2.5 million
and (ii) Secured Convertible Minimum Borrowing Note in the original principal
amount of $1.0 million. In connection with the issuance of the Revolving Note
and the Minimum Borrowing Note, the company issued 660,000 warrants to purchase
up to 660,000 shares of the Company's common stock having exercise prices
ranging from $1.84 to $2.57 per share. The warrants expire on December 30, 2008
and have a cashless exercise provision. The relative fair value of these
warrants was estimated at approximately $758,000 based on the Black-Scholes
option pricing model with the following assumptions; a risk free interest rate
of 3.14%, an expected life of four years, a volatility factor of 66%, and a
dividend yield of 0%. In accordance with EITF 00-27, the Company recorded the
relative fair value of the warrants as a discount against the revolving line of
credit, and is amortizing the discount over the term of the debt. In addition
since the debt is convertible into equity at the option of the note holder at
the date of issuance at beneficial conversion rates, an embedded conversion
feature related to the revolving line of credit was charged to interest and
financing costs amounting to approximately $568,000 in the accompanying
consolidated statement of operations.


                                      F-20
<PAGE>

        The Company can elect to pay the outstanding balance in shares of common
stock at a fixed conversion price of $1.47. If the closing price of the
Company's stock for any of the 10 trading days preceding the repayment date is
less than 110% of the fixed conversion price then the Company shall pay cash
instead.

      The unamortized debt discount amount at December 31, 2003 was $758,000.

      Laurus Funds shall not be entitled to be issued shares of common stock in
repayment of any portion of the notes or upon exercise of either of the warrants
if and to the extent such issuance would result in Laurus Funds and its
affiliates beneficially owning more than 4.99% of the issued and outstanding
common stock upon issuance, unless Laurus Funds shall have provided at least 75
days prior written notice to the Company of its revocation of such restriction.
To date, the Company has not received any such notice.

NOTE 13: 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 approximates fair market value,
as these amounts are due at rates which are compatible to market interest rates.

NOTE 14: LONG TERM DEBT, NET OF CURRENT PORTION AND DEBT DISCOUNT

      Long-term debt, net of current portion consists of the following:

<TABLE>
<CAPTION>
                                                                            -----------------
                                                                            December 31, 2003
                                                                            -----------------
<S>                                                                         <C>
      7% convertible term note due to Laurus Funds, collateralized by
           accounts receivable and other assets of the Company, net of
           debt discount of $822,000 (a)                                    $           3,678
      Uncollateralized 6% convertible promissory note due to customer,(b)               4,013
      Uncollateralized 7% to 18% demand notes due to a stockholder and
           an executive of the Company, principal 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% to 27%,
           through 2006 (c)                                                               309
                                                                            -----------------
                                                                                        8,100
      Less current portion                                                             (1,483)
                                                                            -----------------
      Debt, net of current portion                                          $           6,617
                                                                            =================
</TABLE>

      (a)   On October 29, 2003, the Company issued to Laurus Funds a
            Convertible Term Note in the maximum principle amount of $4.5
            million. In connection with the issuance of the Convertible Term
            Note, the Company issued 1,350,000 warrants to purchase up to
            1,350,000 shares of the Company's common stock having exercise
            prices ranging from $1.25 to $1.75 per share. The warrants expire on
            October 29, 2008 and have a cashless exercise provision. The fair
            value of these warrants was estimated at approximately $870,000
            based on the Black-Scholes option pricing model with the following
            assumptions; a risk free interest rate of 3.14%, an expected life of
            four years, a volatility factor of 66%, and a dividend yield of 0%.
            The relative fair value allocated to the warrants was recognized as
            debt discount and amortized over the term of the note.

            In addition, since this debt is convertible into equity at the
            option of the note holder at beneficial conversion rates, an
            embedded beneficial conversion feature amounting to approximately
            $3.2 million was recorded. The value of the beneficial conversion
            feature has been recorded to interest and financing costs in
            accordance with EITF No. 00-27.

            The interest expense for the amortization of debt discount for the
            period March 7, 2003 to December 31, 2003 was approximately $48,000.

            The principal is due in monthly installments of approximately
            $141,000 starting in April 2004 through November 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 based on an agreed upon
            conversion formula.


                                      F-21
<PAGE>

            Pursuant to the Registration Rights Agreement with Laurus Funds, the
            Company is liable for certain penalties as a result of not
            registering the securities within a specified time frame. However,
            Laurus Funds has waived all penalties through to April 14, 2004.

            Laurus Funds shall not be entitled to be issued shares of common
            stock in repayment of any portion of the notes or upon exercise of
            either of the warrants if and to the extent such issuance would
            result in Laurus Funds and its affiliates beneficially owning more
            than 4.99% of the issued and outstanding common stock upon issuance,
            unless Laurus Funds shall have provided at least 75 days prior
            written notice to the Company of its revocation of such restriction.
            To date, the Company has not received any such notice.

      (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.

      (c)   The Company leases computers and furniture under capital leases that
            expire at various dates through 2006. The recognition of these
            assets and liabilities in the accompanying financial statements did
            not result in cash payments by the Company. Interest rates range
            from 10% to 27%.

      As at December 31, 2003, the principal installments payable on the debt
are as follows:


      2004                                                    $           1,483
      2005                                                                1,787
      2006                                                                1,639
      2007                                                                4,013
                                                              -----------------
      Total                                                   $           8,922
                                                              =================


NOTE 15: COMMITMENTS AND CONTINGENCIES

      Leases:

      The Company has commitments under various long-term operating lease
agreements for premises. For the period ended December 31, 2003 and the year
ended December 31, 2002, total rent expense was $407,000 and $412,000,
respectively. As of December 31, 2003, future minimum annual rental commitments
under operating leases are as follows:


      2004                                                    $             827
      2005                                                                  613
      2006                                                                  469
      2007                                                                  452
      2008                                                                  320
      Thereafter                                                          1,903
                                                              -----------------
                                                              $           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 outcome of such legal matters are remote and
unlikely to have a material adverse effect on the Company's financial position
or operating results.


                                      F-22
<PAGE>

NOTE 16: 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 17: STOCKHOLDERS' EQUITY

      The stockholders' equity information presented in these consolidated
financial statements reflects the recognition of the effect of the reverse
acquisition transaction with Inyx Pharma (See Note 1).

      On April 17, 2003 the Company issued 2,450,000 shares of restricted common
stock as a fee to five entities as finders' fees for their role in facilitating
the transaction with Inyx Pharma. The value assigned to these shares of common
stock approximated $1.3 million.

      On April 21, 2003 the Company issued 1,500,000 shares of restricted common
stock to an individual as consideration for business advisory and financial
consulting services. The value of the common stock was approximately $799,000.

      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
reverse merger acquisition.

      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. As announced by the Company on September 9, 2003 the proceeds of
the offering were to be used to increase the Company's working capital. The
investors in this private placement included the Company's Chairman and an
Outside Director of the Company.

      On October 30, 2003, the Company closed the private placement of $3
million in common stock. The common stock private placement has resulted in the
issuance of 3 million shares, par value $0.01 to a group of institutions and
other accredited investors. Proceeds net of offering costs of approximately
$310,000, amounted to approximately $2,686,000. 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.

      For the period from March 7, 2003 through December 31, 2003, the Company
recorded approximately $1,513,000 of additional paid-in capital resulting from
stock options which vested during the period. This amount is included in general
and administrative expenses in the consolidated statement of operations.

      On October 29, 2003 and December 30, 2003, the Company issued Laurus Funds
a Convertible Term Note and a Secured Revolving Convertible Note with attached
warrants. The beneficial conversion feature and the fair value of the warrants
were recorded to additional paid-in capital. The value of the beneficial
conversion feature was $3.7 million and the fair value assigned to the warrants
was $1.6 million.

      During the period from March 7, 2003 through December 31, 2003, the
Company recorded approximately $1,261,000 resulting from the issuance of
1,475,000 stock purchase warrants as consideration for services to consultants
and stock options to employees. These amounts are included in general and
administrative expenses in the consolidated statement of operations.


                                      F-23
<PAGE>


NOTE 18: ACCUMULATED COMPREHENSIVE LOSS

      Accumulated comprehensive loss from foreign currency translation
adjustments for the period from March 7, 2003 through December 31, 2003 and the
year ended December 31, 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 19: STOCK OPTION PLAN

      On May 1, 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 predecessor Company had no stock option plan.

      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 estimated using the Black-Scholes option-pricing model, with the
following assumptions for the period from March 7, 2003 through December 31,
2003, volatility rate 66% respectively, risk free interest rate of 3.14%, an
expected life of four years and no dividend yield for all periods.

      Total net compensation expense relating to options granted to employees,
officers, directors, and other persons approximated $1,513,000 during the period
from March 7, 2003 through December 31, 2003. There were no stock options
granted during 2002. These amounts are 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. There was no
similar expense for options in the other periods presented.

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

                    ------------------------------------------------------
                          Successor                  Predecessor
                    ------------------------------------------------------
                                            For the Period
                      For the Period         from January
                        from March 7,           1, 2003       Year Ended
                        2003 through        through March      December
                     December 31, 2003         6, 2003         31, 2002
                    -------------------    ---------------   ------------

Beginning Balance               --                    --             --
Granted                      6,185                    --             --
Exercised                      (75)                   --             --
Forfeited                     (250)                   --             --
Cancelled                   (1,000)                   --             --
                            ------                ------         ------
Ending Balance               4,860                    --             --
                            ======                ======         ======


      The following table summarizes information concerning outstanding and
exercisable options at December 31, 2003; the predecessor Company had no stock
option plan.

<TABLE>
<CAPTION>
                                   Options outstanding                                Options exercisable
------------------------------------------------------------------------------------------------------------
                                                         Weighted
                                                         Average       Weighted                    Weighted
                          Range of                      Remaining       Average                    Average
                          Exercise        Shares       Contractual     Exercise       Shares       Exercise
                            Price       Outstanding    Life (Years)      Price      Exercisable     Price
------------------------------------------------------------------------------------------------------------
<S>                     <C>             <C>            <C>             <C>          <C>            <C>
December  31, 2003      $1.10 -$1.75          4,860              9     $   1.12           3,212    $   1.12
------------------------------------------------------------------------------------------------------------
</TABLE>


                                      F-24
<PAGE>

NOTE 20: WARRANTS

      For the period from March 7, 2003 through December 31, 2003, the Company
granted 3,475,000 warrants to purchase a maximum of 3,475,000 whole shares of
common stock. Of the warrants granted, 2,000,000 warrants were issued pursuant
to issuance of debt that are non-detachable and 1,475,000 detachable warrants
were issued pursuant to consulting and investment banking agreements. 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. The fair value assigned to the warrants issued for
consulting and investment banking fees was approximately $1,260,000 based on the
Black-Scholes option pricing model with the following weighted average
assumption: a risk free interest rate of 3.14%, an estimated life of four years,
a volatility factor of 66%, and a dividend yield of 0%. This amount was included
in the general and administrative expenses on the Company's consolidated
statement of operations for the period from March 7, 2003 through December 31,
2003.

      The warrants issued to Laurus Funds in conjunction with the issuance of
debt over the period from March 7, 2003 through December 31, 2003 were assigned
a fair value of approximately $1.6 million. This value was recorded to debt
discount and is being amortized as interest expense over the period the debt is
outstanding. The amortization for the period from March 7, 2003 through December
31, 2003 was approximately $48,000. There were no warrants granted during the
year ended December 31, 2002.

NOTE 21: SUPPLEMENTAL CASH FLOW INFORMATION

<TABLE>
<CAPTION>
                                                  -----------------------------------------------
                                                       Successor             Predecessor
                                                  -----------------------------------------------
                                                                      For the
                                                   For the Period    Period from
                                                    from March 7,    January 1,
                                                    2003 through    2003 through      Year Ended
                                                    December 31,      March 6,        December
                                                        2003            2003          31, 2002
                                                  -----------------------------------------------
<S>                                               <C>                <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 of $100,000 into
   shares of stock                                       100               --               --
                                                     -------          -------          -------
Issuance of stock for services                           799               --               --
                                                     -------          -------          -------
Issuance of stock for finders fees                     1,302               --               --
                                                     -------          -------          -------
Reclassification of debt to liabilities subject to
   compromise                                             --               --           14,201
                                                     -------          -------          -------

Issuance of stock options                              1,513               --               --
                                                     -------          -------          -------
Warrants issued for consulting and financing fees      1,261               --               --
                                                     -------          -------          -------
Warrants issued for convertible debt                   1,628               --               --
                                                     -------          -------          -------
Supplemental Disclosure of Non-Cash Investing
Activities:
                                                     -------          -------          -------
Capital leases                                           309               --               --
                                                     -------          -------          -------
</TABLE>

NOTE 22: INCOME TAXES

<TABLE>
<CAPTION>
                                              ----------------------------------------------------------------------------------
                                                       Successor                               Predecessor
                                              ----------------------------------------------------------------------------------
                                                For the Period from
                                               March 7, 2003 through          For the Period from
                                                 December 31, 2003          January 1, 2003 through       Year ended December
                                                      Restated                   March 6, 2003                  31, 2002
                                              ----------------------------------------------------------------------------------
<S>                                           <C>                          <C>                         <C>
Loss before income taxes and discontinued
  operations
                                              $                 (14,686)   $                    (350)  $                 (30,622)
                                              =========================    =========================   =========================

             Tax benefit:
                 Federal current              $                      --    $                      --   $                      --
                 Federal deferred                                    --                           --                          --
                 Foreign deferred                                 1,294                           --                          --
                 State                                               --                           --                          --
                                              -------------------------    -------------------------   -------------------------

             Total tax benefit                $                   1,294    $                      --   $                      --
                                              =========================    =========================   =========================

             Effective tax benefit rate                             8.8%                          --                          --
                                              =========================    =========================   =========================
</TABLE>


      The difference between the tax benefit rate and the statutory benefit rate
is as follows:

<TABLE>
<CAPTION>

                                            ------------------------------------------------------------------------------------
                                                       Successor                               Predecessor
                                            ------------------------------------------------------------------------------------
                                              For the Period from
                                                 March 7, 2003           January 1, 2003 through         For the Period from
                                            through December 31, 2003          March 6, 2003          Year ended December 31, 2002
                                            ------------------------------------------------------------------------------------
<S>                                         <C>                          <C>                           <C>
Statutory benefit rate                                             35%                          35%                           35%
                                            -------------------------    -------------------------     -------------------------

Inability to utilize operating loss carry
forwards
                                                                (26.2%)                         --                            --
                                            -------------------------    -------------------------     -------------------------

             Other                                                 --                          (35%)                          --
                                            -------------------------    -------------------------     -------------------------

Effective tax benefit rate
                                                                  8.8%                          --                            35%
                                            =========================    =========================     =========================
</TABLE>



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


                                      F-25
<PAGE>

                              ----------------------------------------
                               December 31, 2003     December 31, 2002
                              ----------------------------------------
Deferred tax benefit:

        US federal deferred   $            4,240    $               --
        Foreign                              447                 9,300
                              ------------------    ------------------
                                           4,687                 9,300
Less: valuation allowance                 (3,393)               (8,948)
                              ------------------    ------------------


Benefit for income taxes      $            1,294    $              352
                              ==================    ==================


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

<TABLE>
<CAPTION>
                                              -------------------------------------
                                              December 31, 2003   December 31, 2002
                                              -------------------------------------
<S>                                           <C>                  <C>
Deductible temporary differences
     US federal Deferred Operating loss       $           4,240    $             --
     Foreign Deferred Operating loss                        247               9,300
     Foreign deferred accruals and
        allowances                                          200                  --
                                              -----------------    ----------------
                                                          4,687               9,300
Less: valuation allowance                                (3,393)             (8,948)
                                              -----------------    ----------------

Total tax assets                              $           1,294    $            352
                                              =================    ================
</TABLE>


      At December 31, 2003, the Company has approximately $3.9 million of U.S.
and Canadian operating loss carry-forwards expiring from 2004 through 2019; and
approximately $2.6 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 23: DISCONTINUED OPERATIONS

      On March 7, 2003, Inyx Pharma acquired the majority of the pharmaceutical
business assets of Miza UK out of Administration. The business assets of Miza
UK's Biopharma division were not purchased and therefore have been presented as
discontinued operations in the period from January 1, 2003 through March 6, 2003
and for the year ended December 31, 2002.  The Biopharma Division generated net
revenues of approximately $335,000 and $3,460,000, respectively, costs of sales
of approximately $395,000 and $3,950,000, respectively and a net loss of
approximately $558,000 and $718,000, respectively.

      All the assets and liabilities relating to the Biopharma division have
been included in the reorganization items as described in Note 5.

NOTE 24: RELATED PARTY TRANSACTIONS

      During the period from March 7, 2003 through December 31, 2003, an
affiliated partnership controlled by the chairman and his immediate family
charged the Company for the chairman's services. Total payments to this
affiliate approximated $980,000. The amount consisting of a one-time consulting
charge of $753,000 and the balance of $227,000 for recurring salary were charged
to general and administrative expenses in the consolidated statement of
operations.

      During the period from March 7, 2003 through December 31, 2003, the
Chairman and his spouse provided working capital advances to the Company. At
December 31, 2003, all such advances have been repaid.

      During the period from March 7, 2003 through December 31, 2003 and for the
year ended December 31, 2002, the Company paid rent to an affiliate for a
furnished office space amounting to $66,000 and $0, respectively. This amount is
included in general and administrative expenses.


                                      F-26
<PAGE>

              UNAUDITED PRO FORMA FINANCIAL STATEMENTS INFORMATION

      The following unaudited consolidated pro forma statement of operations
presented herein for the years ended December 31, 2002 and December 31, 2003
give effect to the acquisition of Miza UK Pharmaceuticals Ltd. (Miza UK) by Inyx
Pharma Limited ("Inyx Pharma") as if the acquisition had taken place as of
January 1, of the periods presented.

      As Miza UK is the predecessor entity, the historical financial information
presented is that of Miza UK. The historical financial data is derived from the
historical audited financial statements of the predecessor entity to Inyx
Pharma. On March 7, 2003, Inyx Pharma acquired the majority of the operating
assets of Miza UK from a court appointed Administrator. The acquisition did not
include the operations of Miza UK's Biopharma Division, and such operations have
been presented as discontinued operations in the underlying historical financial
statements.

      The acquisition was accounted for using the purchase method of accounting.
The unaudited pro forma financial data is not necessarily indicative of the
operations had the acquisition taken place on January 1, 2002 and are not
intended to project the Company's results of operations for any future period.

      The unaudited pro forma adjustments and certain assumptions are described
in the accompanying notes. The unaudited pro forma financial statements should
be read in conjunction with Inyx, Inc.'s consolidated financial statements and
notes and the management's discussion and analysis included within this filing.


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

<TABLE>
<CAPTION>
                                                                            Pro forma
                                                             Historical     Adjustment           Pro forma
<S>                                                         <C>             <C>                  <C>

Net Revenues                                                $     21,184    $       --           $  21,184
Cost of sales                                                     17,322            --              17,322
                                                            ------------    ----------           ---------
                                                                   3,862            --               3,862

Operating expenses:
        General and administrative expenses                        6,456            --               6,456
        Selling expenses                                             363            --                 363
        Depreciation and amortization                                936          (415) (3)            521
        Amortization of intangibles                                   --           166  (4)            166
                                                            ------------    ----------           ---------

                Total operating expenses                           7,755          (249)              7,506

Loss from continuing operations before interest
expense, reorganization items and income tax benefit              (3,893)          249              (3,644)

        Interest expense                                           1,680        (1,037) (1),(2)        643
                                                            ------------    ----------           ---------

Loss from continuing operations before
reorganization items and income tax benefit                       (5,573)        1,286              (4,287)

        Reorganization items                                      25,049            --              25,049
                                                            ------------    ----------           ---------

Loss from continuing operations before income tax benefit        (30,622)        1,286             (29,336)

Income tax benefit                                                   352                               352
                                                            ------------    ----------           ---------

Loss from continuing operations                             $    (30,270)   $   1,286           $ (28,984)
                                                            ============    ==========           =========

</TABLE>


              NOTES TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS

      1)    Interest expense was reduced by approximately $1,217,000 to reflect
            a reduction in interest expense assuming the repayment of Miza UK's
            debt. Upon completion of the acquisition, approximately $6.5 million
            of the cash paid to the Administrator was used to repay Miza UK's
            secured debt.

      2)    Interest expense was increased by approximately $180,000 to reflect
            the interest on the debt issued by the Company in connection with
            the acquisition.

      3)    Depreciation expense was adjusted to reflect the charges related to
            changes in fixed assets as of the closing of the acquisition.

      4)    Amortization of intangible assets was recorded to reflect the
            amortization of purchased intangible assets subject to amortization
            including customer list and know-how.


                                      F-27