U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-KSB

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

                   For the fiscal year ended December 31, 2003

                         Commission file number 0-27445

                        ENVIRO VORAXIAL TECHNOLOGY, INC.
                        --------------------------------
                 (Name of Small Business Issuer in its Charter)

                      Idaho                              83-0266517
                      -----                              ----------
        (State or Other Jurisdiction of               (I.R.S. Employer
         Incorporation or Organization)              Identification No.)

                821 NW 57th Place, Fort Lauderdale, Florida 33309
                -------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

                                 (954) 958-9968
                                 --------------
                           (Issuer's Telephone Number)

              Securities registered under Section 12(b) of the Act:

          Title of Each Class     Name of Each Exchange on Which Registered
          -------------------     -----------------------------------------
                                           None

         Securities registered under Section 12(g) of the Exchange Act:

                          Common Stock, $.001 par value
                          -----------------------------
                                (Title of Class)

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 [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB.[ ]

State issuer's revenues for its most recent fiscal year.  $3,000

State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of a specified date within the past 60
days ($.84 as of December 31, 2003). $4,440,214.80.
<PAGE>
                    APPLICABLE ONLY TO CORPORATE REGISTRANTS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: December 31, 2003: 15,402,636 Shares
of Common Stock.

                       DOCUMENTS INCORPORATED BY REFERENCE
- None -

Transitional Small Business Disclosure Format (Check One)

Yes  [ ]         No  [X]
<PAGE>
<TABLE>
<CAPTION>
                                         Table of Contents
                                         -----------------
                                                                                                Page
                                                                                                ----
PART I
------
<S>           <C>
Item 1.       Description of Business                                                            3

Item 2.       Description of Property                                                            12

Item 3.       Legal Proceedings                                                                  12

Item 4        Submission of Matters to a Vote of Security Holders                                12

PART II
-------

Item 5.       Market for Common Equity, Related Stockholder Matters and Small
              Business Issuer Purchases of Equity Securities                                     13

Item 6.       Management Discussion and Analysis of Financial Condition and Plan
              of Operations                                                                      15

Item 7.       Financial Statements                                                               21

Item 8.       Changes in and Disagreements With Accountants on Accounting and
              Financial Disclosure                                                               21

Item 8A.      Controls and Procedures                                                            21

PART III
--------

Item 9.       Directors and Executive Officers                                                   22

Item 10.      Executive Compensation                                                             23

Item 11.      Security Ownership of Certain Beneficial Owners and Management and
              Related Stockholder Matters                                                        26

Item 12.      Certain Relationships and Related Transactions                                     27

Item 13.      Exhibits, Lists and Reports on Form 8-K                                            27

Item 14.      Principal Accountant Fees and Services                                             28
</TABLE>




















                                        2
<PAGE>
PART I
------

Item 1. Description of Business

Our history

         Enviro Voraxial Technology, Inc. (the "Company") was incorporated in
Idaho on October 19, 1964, under the name Idaho Silver, Inc. From our inception
through 1994, we were engaged in acquiring mining claims and exploring for
silver and lead in Idaho. In May of 1996, we entered into an agreement and plan
of reorganization with a privately held Florida corporation, Florida Precision
Aerospace, Inc. ("FPA"), and its shareholders. FPA was incorporated on February
26, 1993. We exchanged 10,000,000 newly-issued post-split shares of our common
stock, or approximately 97% of our shares then issued and outstanding for all of
the issued and outstanding shares of FPA. As a result of this reorganization,
the shareholders of FPA gained control of our company and FPA became our
wholly-owned subsidiary. Because FPA's management was more qualified to focus
our business on that of FPA, our officers and directors resigned and were
replaced by FPA's designees. At the close of the transaction, we changed our
name to Enviro Voraxial Technology, Inc.

         Pursuant to the reorganization, we reverse split our common stock on a
one share for ten share basis and amended our articles of incorporation to
increase our authorized common stock to 50,000,000 shares, $.001 par value.

General

         We believe we are emerging as a potential leader in the rapidly growing
environmental and industrial separation industries. The Company has developed
and patented the Voraxial Separator ("Voraxial Separator" or "VAS"); a
proprietary technology that efficiently separates large volumes of
liquid/liquid, liquid/solids or liquid/liquid/solids with distinct specific
gravities. Management believes this superior separation quality is achieved in
real-time, and in much greater volumes, with a more compact, cost efficient and
energy efficient machine than any comparable product on the market today. The
Voraxial Separator operates in-line and is scaleable. It is capable of
processing volumes as low as 3 gallons per minute as well as volumes over 10,000
gallons per minute with only one moving part. The Company believes that the VAS
technology can help protect the environment and its natural resources while
simultaneously making numerous industries more productive and cost effective.

         The size and efficiency advantages provided by the Voraxial Separator
to the end-user have provided us with a variety of market opportunities. We have
generated limited revenues to date partially because of insufficient funds to
adequately market our product; however, we have received inquiries from parties
in various industries, including the energy drilling, sewage, pulp and paper,
food processing, shipping, machine shops, and marine/oil-spill industries. The
Company believes the Voraxial Separator will enable companies in these
industries to develop greater advantages or differentiators, by substantially
increasing their efficiency.

         The Company is presently researching and developing VAS solutions for
various applications and markets including pre-treatment (headworks/entrance to
municipal wastewater plant) of wastewater, grit/sand separation, oil-water



                                        3
<PAGE>
separation, oil exploration and production, oil refineries, marine/oil-spill
clean up, and food processing and manufacturing waste treatment.

         We have shipped units of the Voraxial Separator on a trial basis to a
number of different companies that include a wide range of industrial
applications. Additional requests have been made by some of these businesses for
delivery of larger models to conduct additional testing. We have also discussed
the benefits of the Voraxial Separator with various government agencies. We have
installed several Voraxial Separators to date including units to the Alaska
Department of Environmental Conservation, the US Navy and to REGS, an
environmental service company.

         Further we have initiated a demonstration project at one of seven
wastewater treatment facilities operated by the Hillsborough County Water
Department which services greater Tampa, Florida. The system at Hillsborough
incorporates a Model 4000 Voraxial Grit Separator at the head-works of the 5
million gallons per day (MGD) wastewater treatment plant. This installation
initiates the sales and marketing campaign for the Voraxial Grit Separator into
the multi-billion dollar municipal wastewater treatment market place.

         We have formed an Advisory Committee to assist the Company with the
implementation of its corporate objectives. The members include high-level
individuals with experience in the wastewater and oil industry and in sales and
marketing.

         We manufacture and assemble our separators at our facility located in
Ft. Lauderdale, FL. We operate a high-precision engineering machine facility,
which has designed, manufactured and assembled specialized parts and components
for the aerospace and automotive industries. Historically we have performed
contract-manufacturing services to both small and large customers.

         The Company also expects market opportunities to present themselves
because of increased governmental regulation and standards enforcement by the
U.S. Environmental Protection Agency ("EPA"), and the European Union Commission
on the Environment. Additionally, emerging markets worldwide are opening as
growing nations recognize the need and benefit of addressing the environmental
issues faced by population growth and industrialization, such as China, Mexico,
and South America.

Business

         The Company has shifted its focus from the high precision manufacturing
business to the opportunity presented by the Voraxial Separator as management
believes that is where significant growth for the Company will occur. We will
continue to utilize our engineering expertise to manufacture the Voraxial
Separator in-house. Although revenues from the Voraxial Separator have been
nominal since inception, we believe that the in the near future substantial
revenues will begin to be generated from the Voraxial Separator.

         In the past, the Company has delivered or installed Voraxial Separators
to companies that need liquid/liquid and liquid/solid separation, including the
Alaska Department of Environmental Conservation, US Navy, Resource Environmental
Group of Colorado.



                                        4
<PAGE>
         The Company has concentrated its efforts on the Voraxial Separator and
has begun marketing to major equipment manufacturers and end-users throughout
various industrial sectors. In the past year, the Company has been involved in
discussions with several multi-national companies and government agencies that
are involved in the development, manufacture, and sale of cutting-edge
separation technology to a wide range of end-users throughout various industrial
sectors. The Company has received a great deal of interest from a variety of
industries. Although management believes many different industries can utilize
and benefit from the Voraxial Separator, the Company is focusing its efforts on
a few key opportunities, including municipal wastewater, oil exploration &
production, oil refineries, marine/oil-spill clean up and manufacturing.

         During the past fiscal year, we announced the completion of the
Voraxial Grit Separator for the specific use in the municipal wastewater
industry. The Voraxial Grit Separator utilizes a Voraxial Separator configured
for operation in the headworks of a municipal wastewater treatment plant (WWTP).
A single Voraxial Grit Separator is designed to provide for the continuous
removal of grit from screened wastewater at rates up to eight thousand (8000)
gallons per minute (11.5 mgd). We currently have designs for two Voraxial Grit
Separators. The Voraxial Grit Separator Model 4000 has an operating range of
three-tenths to one and three-tenths (0.3 to 1.3) million gallons per day (mgd),
powered by a ten (10) HP TEFC motor. The Voraxial Grit Separator Model 8000 has
an operating range of three to eleven and five-tenths (3.0 to 11.5) mgd, powered
by a fifty (50) HP TEFC motor.

         To demonstrate the efficiency of the Voraxial Grit Separator, the
Company has initiated a demonstration project at one of seven wastewater
treatment facilities operated by the Hillsborough County Water Department which
services greater Tampa, Florida. Plans for this demonstration program were
developed with the invaluable assistance and support of the Hillsborough Water
Department. The system at Hillsborough incorporates a Model 4000 Voraxial Grit
Separator at the head-works of the 5 million gallons per day (MGD) wastewater
treatment plant.

         This demonstration initiates the sales and marketing program for the
Voraxial Grit Separator in the municipal wastewater industry. With over 16,000
publicly owned wastewater treatment facilities in the United States serving
approximately 190 million people, Management believes that the municipal
wastewater industry can potentially be profitable for the Company. We believe
that the savings from the eliminated construction alone will more than justify
the cost to install a Voraxial Separator system.

         In the fourth quarter, the Company delivered a Voraxial Separator Model
2000 to Resource Environmental Group Services ("REGS") after they viewed the
unit operate at the WEFTEC trade show in Los Angeles. REGS conducted several
weeks of testing the Voraxial Separator on refinery waste-oil separation at a
refinery. The objective of the testing was to identify applications for the
Voraxial Separator for both regular refinery maintenance and as a permanently
installed waste reduction system for the facility. In late December 2003, REGS
purchased a Voraxial Separator 4000.

         Until recently, the Company had operated a high-precision engineering
machine facility, which designed, manufactured and assembled specialized parts
and components for the aerospace and automotive industries. Historically,
revenues have been generated from contract manufacturing of specialized



                                        5
<PAGE>
components for use in both the private and government sectors. Although the
Company continues to have the expertise in this area, the primary focus is on
the VAS.

         Previous projects have involved the production of specialized space
navigational and guidance components for Allied Signal Aerospace and The
Department of Defense; gears for General Motors Corporation and New Venture Gear
to be used in design and assembly of automotive transmissions; and specialty
components for Hughes Electronics. The Company has also provided engineering
services to the General Motors/Volvo Heavy Truck Division and machines and
assembled components such as high precision castings, precision tools and
fixtures, beryllium and ceramics, deep brazing, Computer Numerical Control (CNC)
machining and tuning and precision jig boring and assembly.

Voraxial Separator

         The Voraxial Separator is a continuous flow turbo machine that
generates a strong centrifugal force, or a vortex, capable of separating light
and heavy liquids, such as oil and water, or any other combination of liquids
and solids at extremely high flow rates. As the fluid passes through the
machine, the Voraxial Separator accomplishes this separation through the
creation of a vortex. In liquid/liquid and liquid/solid mixtures, this vortex
causes the heavier compounds to gravitate to the outside of the flow and the
lighter elements to move to the center where an inner core is formed. The liquid
stream processed by the machine is divided into separate streams of heavier and
lighter liquids and solids. As a result of this process, separation is achieved.

         The Voraxial Separator is a self-contained, non-clogging device that
can be powered by an electric motor, diesel engine or by hydraulic power
generation. Further, the Voraxial Separator's scalability allows it to be
utilized in a variety of industries and to process various amounts of liquid.
The following are the various sizes and the corresponding capacity range:

                           Product and Capacity Range
                           --------------------------

                            Model            Diameter         Capacity Range
                           Number              Size         Gallons Per Minute
                           ------          ------------     ------------------
                           VAS1000           1 inch                3 - 10
                           VAS2000           2 inches             25 - 80
                           VAS4000           4 inches            250 - 900
                           VAS8000           8 inches          2,000 - 6,000

         The Voraxial Separator can transfer various liquids in either direction
by reversing the machine's rotation. We currently maintain an inventory of
various models of the Voraxial Separator. During fiscal year 2003, we have
furthered tested, demonstrated and delivered on a trial basis the Voraxial
Separator units to companies within various industries including energy
production, wastewater and manufacturing. During 2003 the Company sold and
delivered one unit for refinery application. The Company has also provided the
Voraxial Separator unit to several firms on a trial basis and is engaged in
discussions to deliver additional Voraxial Separator units on an
income-producing basis.



                                        6
<PAGE>
         Management believes that our Voraxial Separator offers substantial
applications on a cost-effective basis, including: oil exploration & production,
oil remediation services, municipal wastewater treatment, bilge water
purification, metal finishing, machining and manufacturing, food processing
waste treatment and numerous other industrial production and environmental
remediation processes. We also believe that the quality of the water separated
from the contaminant is good enough to recycle back into the process stream
(back into the plant) or discharge to the environment. As clean water becomes
less available to the ever-increasing world population, this technology may
become more valuable.

         The Voraxial Separator is now manufactured and assembled at our Fort
Lauderdale, Florida location by our wholly-owned subsidiary, Florida Precision
Aerospace.

Voraxial Separator products, services and the market

         The need for effective and cost efficient wastewater treatment and
separation technology is global in scale. Moreover, virtually every industry
requires some type of separation process either during the manufacturing
process, prior to treatment or discharge of wastewater into the environment, for
general clean up, or emergency response capability. Separation processes,
however, are largely unknown to the average consumer. These processes are deeply
integrated in almost all industrial processes from oil to wastewater to
manufacturing. Management believes that the VAS technology has applications in
most, if not all major separation industries. The unique characteristics of the
VAS allow it to be utilized either as a stand-alone unit or within an existing
system to provide a more efficient and cost effective way to handle the
separation needs of the customer.

         If, as we expect, environmental regulations, both domestically and
internationally, become more stringent, companies will be required to more
effectively treat their wastewater prior to discharge. We believe this offers a
great opportunity for the Company as the Voraxial Separator can be utilized in
most separation applications to significantly increase the efficiency of the
separation processes while simultaneously reduce the cost to the end-user.

         Further, management will only pursue the industries whereby the
customer will either see a decrease in cost or an increase in revenues. As the
Voraxial Separator can provide an efficient means to separate contaminants from
water, it also enables the customer to conduct such operations while utilizing
less energy and a smaller footprint than conventional equipment in the market
today.

         The Company has developed a comprehensive sales and marketing program
to stimulate awareness of the Voraxial Separator to companies in several key
industries which management believes have the ability to establish its Voraxial
Separator technology as an industry-wide standard. Management believes this
visibility will result in increase sales.

         To assist the Company to enter the Oil industry, the company has added
Henry Schlesinger, the former president of Marshall Petroleum to its Advisory
Committee. Further, Kevin Mulshine, Partner and Managing Director at Prager,
Sealy & Co., LLC a prominent investment banking firm, with water and wastewater
investment expertise was added to the Advisory Committee to compliment the
Company's efforts in the municipal wastewater industry.



                                        7
<PAGE>
         To demonstrate the efficiency of the Voraxial Grit Separator, the
Company has initiated a demonstration project at one of seven wastewater
treatment facilities operated by the Hillsborough County Water Department which
services greater Tampa, Florida. Plans for this demonstration program were
developed with the invaluable assistance and support of the Hillsborough Water
Department. The system at Hillsborough incorporates a Model 4000 Voraxial Grit
Separator at the head-works of the 5 million gallons per day (MGD) wastewater
treatment plant.

         This demonstration initiates the sales and marketing program for the
Voraxial Grit Separator in the municipal wastewater industry. With over 16,000
publicly owned wastewater treatment facilities in the United States serving
approximately 190 million people, Management believes that the municipal
wastewater industry can potentially be profitable for the Company. We believe
that the savings from the eliminated construction alone will more than justify
the cost to install a Voraxial Separator system.

Anticipated Business of the Company

         In fiscal year 2004 management intends to continue to concentrate its
marketing efforts in the following industrial sectors: municipal wastewater
treatment, oil/water separation, oil exploration and production, and industrial
wastewater. Industry-wide acceptance in any of these specific sectors could
imply extensive marketing and sales opportunities on a global scale. The Company
anticipates hiring additional management and staff to support the sales and
marketing program. Currently, interests have been expressed by companies, which
collectively have operations in North America, South America, Europe, the Middle
East, Australia, and Asia.

Inventory

         Other than our Voraxial Separators, we maintain no inventory of
finished parts until we receive a customer order. We currently have various
models of the Voraxial Separator in inventory, which includes certain models
located at third party facilities on a trial basis.

         FPA contract manufacturing is not initiated until corresponding
specifications have been obtained from a customer. Typically, a customer seeking
the manufacture of components will provide us with diagrams and specifications.
We complete any remaining design services and begin manufacturing the components
pursuant to the specific contract or purchase order.

Competition

         We are subject to competition from a number of companies who have
greater experience, research abilities, engineering capability and financial
resources than we have.

         Although we believe our Voraxial Separator offers applications which
accomplish better or similar results on a more cost-effective basis than
existing products, other products have, in some instances, attained greater
market and regulatory acceptance. These competitors include, but are not limited
to Westfalia and AlfaLaval.

         We believe the Voraxial Separator can improve a company's technology
and in many ways result in a cost savings and other benefits to the customer.
These benefits result in and include:



                                        8
<PAGE>
         o     A reduction in water and energy usage,
         o     Less space needed to implement the Voraxial Separator; the
               Voraxial Separator weighs less than current systems,
         o     A reduction in time to process and separate the fluids, allowing
               the customer to be more efficient,
         o     Creation of a more efficient and faster process to treat water to
               increase the overall productivity of the end-user,
         o     A reduction in the amount of disposable liquids,
         o     Fewer employees needed to operate the system, and
         o     Reduction of ongoing maintenance and servicing costs.

         We believe that we are the only front-end solution for the separation
industry that can offer increased productivity while reducing the physical space
and energy required to operate the unit. These advantages translate into the
potential for substantial operating cost efficiencies that would increase the
profitability of the solution's end user.

Marketing

         The Company's products and services are marketed through our existing
staff and specific manufacturers representatives. To assist the Company in
developing and penetrating the municipal wastewater and oil industry, the
Company has formed an Advisory Committee consisting of John Combs, Barry Gafner,
Kevin Mulshine and Henry Schlesinger.

         The Company hired additional management and staff to further assist and
support the sales and marketing program which was initiated in fiscal year 2003.
The program consists of signing vendor representatives and/or distributors to
carry the Voraxial Separator and attending trade shows to build technology
awareness, among others.

         We have presented the Voraxial Separator at two prominent trade shows
in the past fiscal year. In October 2003, we demonstrated the Voraxial Separator
at WEFTEC (Water Environment Federation's Technical Exhibition and Conference)
tradeshow in Los Angeles. The Water Environment Federation's Technical
Exhibition and Conference draws thousands of water and wastewater professionals
from around the world to view cutting-edge technologies in the water quality
field while learning about the latest practices, solutions, and regulations in
their industry.

         In November, we showcased the Voraxial Separator at CLEAN GULF 2003.
Clean Gulf exhibition and conference provides a forum through which
professionals from regulatory agencies, the federal government, and the private
sector can address the real issues of cooperation, regulation, preparedness,
prevention, and response for today's energy industry.

         The Company has received a great response by potential clients and
manufacturers representatives from both tradeshows and is still pursuing some of
these opportunities. We anticipate presenting the Voraxial Separator at
tradeshows in 2004, including WEFTEC and Clean Gulf.





                                        9
<PAGE>
Sources and availability of raw materials

         The materials needed to manufacture our Voraxial Separator have been
provided by Baldor Electric Co., Hughes Supply Inc. and SKF USA Inc., among
other suppliers. We do not anticipate any shortage of component parts.

         Intellectual property

         We currently hold several patents pertaining to the Voraxial Separator
and are continually working on developing other patents. The Company owns United
States Patent #6,248,231, #5,904,840 and #5,084,189. The latest patent, Patent
#6,248,231 was registered in 2001 for Apparatus with Voraxial Separator and
Analyzer. Patent #5,904,840 is for Apparatus for Accurate Centrifugal Separation
of Miscible and Immiscible Media, which is for technology invented by our
president and sole director, Alberto DiBella, and registered in 1999. The other
is for the Method and Apparatus for Separating Fluids having Different Specific
Gravities. This is for technology invented by Harvey Richter and registered in
1992 to Richter Systems, Inc. In 1996, we acquired assets, including this patent
from Richter Systems, Inc. The method and apparatus for each of these is applied
in our Voraxial Separator.

         In addition, on December 16, 2003, we received trademark protection for
the word "Voraxial".

Governmental approvals and regulations; environmental compliance

         Our operations are subject to extensive and frequently changing
federal, state and local laws and substantial regulation by government agencies,
including the United States Environmental Protection Agency (EPA), the United
States Occupational Safety and Health administration (OSHA) and the Federal
Aviation Administration (FAA). Among other matters, these agencies regulate the
operation, handling, transportation and disposal of hazardous materials used by
us during the normal course of our operations, govern the health and safety of
our employees and certain standards and licensing requirements for our aerospace
components that we contract manufacture. We are subject to significant
compliance burden from this extensive regulatory framework, which may
substantially increase our operational costs.

         In addition, we may become liable for the costs of removal or
remediation of certain hazardous substances released on or in our facilities
without regard to whether or not we knew of, or caused, the release of such
substances. We believe that we are currently in material compliance with
applicable laws and regulations and are not aware of any material environmental
violations at any of our current or former facilities. We are unaware of any
handling by us of hazardous substances. There can be no assurance, however, that
our prior activities did not create a material environmental situation for which
we could be responsible or that future uses or conditions (including, without
limitation, changes in applicable environmental laws and regulation, or an
increase in the amount of hazardous substances generated or used by our
operations) will not result in any material environmental liability to us or
result in a material adverse effect to our financial condition and results of
operations.




                                       10
<PAGE>
         We are subject to various federal, state, and local environmental
requirements, including those relating to discharges to air, water and land. We
believe that we have not previously and do not currently handle any hazardous
waste. However, in the future we may be subject to regulation involving the
handling and disposal of solid and hazardous waste, and the cleanup of
properties affected by hazardous substances. In addition, certain environmental
laws, such as The Comprehensive Response, Compensation and Liability Act
(CERCLA) and similar state laws, impose strict, retroactive, and joint and
several liability upon persons responsible for releases or potential releases of
hazardous substances. We have not incurred, nor do we expect to incur,
significant costs to address any releases or potential releases of such
substances. It is possible, however, given the retroactive nature of CERCLA
liability, that we will, from time to time, receive notices of potential
liability relating to current or former activities.

         We have been and are in compliance with environmental requirements and
believe that we have no liabilities under environmental requirements. Further,
we have not spent any funds specifically on compliance with environmental laws.
However, some risk of environmental liability is inherent in the nature of our
business, and we might incur substantial costs to meet current or more stringent
compliance, cleanup or other obligations pursuant to environmental requirements
in the future. This could result in a material adverse effect to our results of
operations and financial condition.

         The aerospace industry is highly regulated in the U.S. by the FAA and
is regulated in other countries by similar agencies to ensure that aviation
products and services meet stringent safety and performance standards. The FAA
prescribes standards and licensing requirements for aircraft components. Because
we assemble to meet specifications and designs created by our customers, we are
not required to obtain any licenses or approvals from the FAA.

Product liability

         Our business exposes us to possible claims of personal injury, death or
property damage, which may result from the failure, or malfunction of any
component or subassembly manufactured or assembled by us. We currently do not
have product liability insurance. Any product liability claim made against us
will have a material adverse effect on our business, financial condition or
results of operations in light of our poor financial condition, losses and
limited revenues. We have plans to obtain product liability insurance in the
near future.

         In 2003, we did not possess any third party insurance coverage and
were, therefore, effectively self-insured with respect to product liability,
directors and officers, and general insurance coverage. We have obtained
directors and officers, and general insurance coverage in 2004. We currently do
not have product liability insurance.

Research and development

         In our past two fiscal years, we have spent approximately $884,000 on
product research and development. The Company has finalized the development of
the Voraxial Separator. Although we will continually work on advancing the
technology and applications whereby the technology can be used, we do not
anticipate devoting a significant portion of our funds to this area of the
business.



                                       11
<PAGE>
Employees

         We have five employees. All of these employees work full-time. We have
two administrative employees, Alberto DiBella and John A. DiBella. The balance
of our employees participate in the manufacturing and engineering of our
products. None of our employees are members of a union. We believe that our
relationship with our employees is favorable. We intend to add additional
employees in the upcoming year, including managers, sales representatives and
engineers.

Item 2.  Description of Property

         During October 2002, the Company entered into a three (3) year lease
for an office and manufacturing facility located at 821 NW 57th Place, Fort
Lauderdale, FL 33309. The lease is approximately $4,700 per month. The Company
has the option to renew the lease at the end of the three-year term.

Item 3.  Legal Proceedings

         None.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

































                                       12
<PAGE>
PART II
-------

Item 5. Market for Common Equity and Related Stockholder Matters and
        Small Business Issuer Purchases of Equity Securities

         Our common stock is traded on the NASDAQ Over-The-Counter Bulletin
Board ("OTCBB") under the symbol EVTN. The bid quotations below, as provided by
Interactive Data, have been reported for the period ending March 31, 2002
through the period ending December 31, 2003. On April 8, 2004, the closing price
for our common stock was $1.16. The quotations reflect inter-dealer prices,
without retail mark-up, mark-down or commission, and may not represent actual
transactions.

         Bid Quotations
         --------------

              Quarter Ended                         High              Low
              -------------                         ----              ---

              March 31, 2002                        $0.30           $0.15
              June 30, 2002                         $1.06           $0.20
              September 30, 2002                    $1.05           $0.46
              December 31, 2002                     $1.09           $0.46

              March 31, 2003                        $1.95           $1.00
              June 30, 2003                         $1.62           $0.96
              September 30, 2003                    $1.12           $0.55
              December 31, 2003                     $1.10           $0.61

         We have been advised that seven member firms of the NASD are currently
acting as market makers for our common stock. There is no assurance that an
active trading market will develop which will provide liquidity for our existing
shareholders or for persons who may acquire common stock through the exercise of
warrants.

Holders

         As of December 31, 2003, there were over 750 holders of record of our
common stock outstanding. Our transfer agent is Jersey Transfer & Trust Company,
Inc., Post Office Box 36, Verona, New Jersey 07044.

         No prediction can be made as to the effect, if any, that future sales
of shares of common stock or the availability of common stock for future sale
will have on the market price of the common stock prevailing from time-to-time.
Sales of substantial amounts of common stock on the public market could
adversely affect the prevailing market price of the common stock.

Dividends

         We have not paid a cash dividend on the common stock since current
management joined our company in 1996. The payment of dividends may be made at



                                       13
<PAGE>
the discretion of our board of directors and will depend upon, among other
things, our operations, our capital requirements and our overall financial
condition. As of the date of this report, we have no intention to declare
dividends.

Other Stockholders Matters

         Effective January 1, 2003, we issued warrants to purchase 300,000
shares of our common stock exercisable at $1.00 per share to Frank DeMicco
pursuant to Mr. DeMicco's five-year employment contract with our company.
Warrants to purchase 100,000 shares vested during year ended December 31, 2003
and the remaining warrants vest periodically over the term of the agreement. The
warrants issued to Mr. DeMicco were exempt from registration under Section 4(2)
of the Securities Act. The warrants contain the appropriate restrictive legend
restricting their transferability absent registration or applicable exemption.
Mr. DeMicco received information concerning our company and had the opportunity
to ask questions about the viability of our company.

         During January of 2003 we issued options to purchase 10,000 shares of
our common stock exercisable at $1.00 per share to an individual pursuant to a
two-year employment agreement with our company. The options vest periodically
over the term of the agreement, of which options to purchase 5,000 shares vested
during year ended December 31, 2003. The options issued to the employee were
exempt from registration under Section 4(2) of the Securities Act. The options
contain the appropriate restrictive legend restricting their transferability
absent registration or applicable exemption. The employee received information
concerning our company and had the opportunity to ask questions about the
viability of our company.

         In the beginning of May 2003, we closed the private placement which
commenced in the first quarter of 2003. Under the private placement we sold an
aggregate of 1.25 units of securities to 8 investors for proceeds of $125,000.
Each unit consisted of 100,000 shares of restricted common stock at $1.00 per
share and 100,000 warrants to purchase 100,000 shares of common stock at $1.50
per share. The warrants are exercisable for a period of five years from the date
of closing. Due to market conditions and the proximity to the private placement
disclosed below, management determined to revise the terms of the private
placement during the three months ended September 30, 2003. As such, these
investors subsequently received an additional aggregate of 83,333 shares of
common stock and the exercise price of the previously issued warrants was
reduced to $1.00 per share. The transactions were exempt from registration under
Section 4(2) of the Securities Act. The securities issues contain the
appropriate restrictive legend restricting their transferability absent
registration or applicable exemption. The investors received information
concerning our company and had the opportunity to ask questions to the viability
of our company.

         In May 2003, we commenced a second private placement and have sold an
aggregate of 7.71 units of securities to 14 investors for proceeds of $646,000.
Each unit consisted of 166,666 shares of restricted common stock at $0.60 per
share and 166,666 warrants to purchase 166,666 shares of common stock at $1.00
per share. The warrants are exercisable for a period of five years from the date
of closing. The securities issues contain the appropriate restrictive legend
restricting their transferability absent registration or applicable exemption.
The transaction was exempt from registration under Section 4(2) of the
Securities Act. The investors received information concerning our company and
had the opportunity to ask questions to the viability of our company.



                                       14
<PAGE>
Small Business Issuer Purchase of Equity Securities

         None.

Item 6. Management's Discussion and Analysis of Financial Condition and Plan of
        Operations

General

         Management's discussion and analysis contains various forward-looking
statements. These statements consist of any statement other than a recitation of
historical fact and can be identified by the use of forward-looking terminology
such as "may," "expect," "anticipate," "estimate" or "continue" or use of
negative or other variations or comparable terminology.

         We caution that these statements are further qualified by important
factors that could cause actual results to differ materially from those
contained in the forward-looking statements, that these forward-looking
statements are necessarily speculative, and there are certain risks and
uncertainties that could cause actual events or results to differ materially
from those referred to in such forward-looking statements.

Year ended December 31, 2003 compared to year ended December 31, 2002

Revenue

         Our contract revenue decreased by 100% to $0 for the year ended
December 31, 2003 from $46,000 for the year ended December 31, 2002. The change
was due to no manufacturing contracts in 2003. The Company does not solicit high
precision manufacturing contracts but does receive orders from previous clients.
We have focused our efforts and resources to the manufacturing, assembling,
marketing and selling of the Voraxial Separator. Product sales decreased 92% to
$3,000 for year ended December 31, 2003 as compared to $37,000 for the year
ended December 31, 2002. We do expect revenues from the Voraxial Separator to
increase in 2004 with the sales and marketing program.

General and administrative expenses

         General and Administrative expenses increased by 124% to $751,000 for
the year ended December 31, 2003 from $335,000 for the year ended December 31,
2002. The increase was due to an increase in personnel related to the
applications and marketing of the Voraxial Separator. We have reduced the
expense allocated towards high precision machining and focused all of our
efforts on the marketing of the Voraxial Separator. As such, the general and
administrative overhead typically experienced with the high precision machining
was reduced and consolidated with the marketing activities supporting the
Voraxial Separator.





                                       15
<PAGE>
Research and development expenses

         Research and Development expenses increased 99% to $589,000 for the
year ended December 31, 2003 from $295,000 for the year ended December 31, 2002.
This increase was due to our continuing efforts to expand the applications of
the Voraxial Separator for specific industries.

Liquidity and capital resources

         At December 31, 2003, we had an accumulated deficit of $3,049,000. In
the year ended December 31, 2003 our working capital decreased by $353,000 from
December 31, 2002. Operating at a loss for the year negatively impacted our cash
position; however funds received from the private placement of our securities
added to our working capital position. We believe that including our current
cash resources and anticipated revenue to be generated by our Voraxial
Separators, we will have sufficient resources to continue business operations
for the next twelve months. To the extent that these resources are not
sufficient to sustain current operating activities, we may need to seek
additional capital, or adjust our operating plan accordingly.

         During the year ended December 31, 2003, we issued an aggregate of
1,285,002 shares at $0.60 per share in connection with two private placement
transactions. In connection with these transactions, we also issued warrants to
purchase an aggregate of 1,285,002 shares of our common stock exercisable at
$1.00 per share. The warrants are exercisable for a period of five years from
the date of issuance. We received gross proceeds of approximately $771,000 from
these private placements.

Continuing losses

         We may be unable to continue as a going concern, given our limited
operations and revenues and our significant losses to date. Consequently, our
working capital may not be sufficient and our operating costs may exceed those
experienced in our prior years. In light of these recent developments, we may be
unable to continue as a going concern.

         The Company has experienced net losses, has a working capital deficit
and sustained cash outflows from operating activities and had to raise capital
to sustain operations. There is no assurance that the Company's developmental
and marketing efforts will be successful, that the Company will ever have
commercially accepted products, or that the Company will achieve significant
revenues. If the Company is unable to successfully commercialize its Voraxial
Separator, it is unlikely that the Company could continue its business. The
Company will continue to require the infusion of capital until operations become
profitable. During 2004, the Company anticipates seeking additional capital,
increasing sales of the voraxial separator and continuing to restrict expenses.
Substantial doubt exists about the ability of the Company to continue as a going
concern.

Recent Accounting Pronouncements

         In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." The Company's adoption of SFAS No.
146 on January 1, 2003 did not have any material effect on the financial
statements of the Company.



                                       16
<PAGE>
         In December 2003, the FASB issued Interpretation No. 46R,
"Consolidation of Variable Interest Entities" in an effort to expand upon and
strengthen existing accounting guidance that addresses when a company should
include in its financial statements the assets, liabilities and activities of
variable interest entities, including special-purpose entities or off-balance
sheet structures. The consolidation requirements of FIN No. 46R have a variety
of implementation dates. The Company believes the impact of FIN No. 46R on its
financial position and results of operations will not be material, but the
Company will continue to evaluate the impact of FIN No. 46R during the first
quarter of 2004.

         In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." This
statement affects the issuer's accounting for three types of freestanding
financial statements: mandatorily redeemable shares, put and forward purchase
contracts that require the issuer to buy back some of its shares in exchange for
cash or other assets, and certain obligations that can be settled in shares.
This statement is effective for all financial instruments entered into or
modified after May 31, 2003, and otherwise effective at the beginning of the
first interim period beginning after June 15, 2003. The impact of adopting FASB
No. 150 was not material to the Company's financial position and results of
operations.

         In December 2003, the Securities and Exchange Commission (SEC),
published Staff Accounting Bulletin (SAB) No. 104, "Revenue Recognition." This
SAB updates portions of the Securities and Exchange Commission (SEC) staff's
interpretive guidance provided in SAB 101 and included in Topic 13 of the
Codification of Staff Accounting Bulletins. SAB 104 deletes interpretative
material no longer necessary, and conforms the interpretive material retained,
because of pronouncements issued by the FASB's Emerging Issues Task Force (EITF)
on various revenue recognition topics, including EITF 00-21, "Revenue
Arrangements with Multiple Deliverables." SAB No. 104 also incorporates into the
SAB Codification certain sections of the SEC staff's "Revenue Recognition in
Financial Statements - Frequently Asked Questions and Answers." SAB No. 104 does
not have a material impact on the Company's financial position and results of
operations since the Company's revenue recognition practices previously
conformed to the interpretations codified by SAB No. 104.

         Management does not expect these statements to have a material impact
on the consolidated financial statements.

Risk Factors

Our independent auditors have raised substantial doubt about our ability to
continue as a going concern.

         Although we operated as a precision machine shop for a number of years,
we have only recently completed the development of the Voraxial Separator, and
we have not yet generated significant revenues from that product. As a result,
we have limited operating history in our planned business upon which you may
evaluate our business and prospects. The revenues and income potential of our
business and the markets of our separation technology are unproven. Our business
plan must be considered in light of risks, expenses, delays, problems, and
difficulties frequently encountered by development stage companies.




                                       17
<PAGE>
         We have incurred operating losses since our inception, and we will
continue to incur net losses until we can produce sufficient revenues to cover
our costs. At December 31, 2003, we had an accumulated deficit of $3,049,000,
including a net loss of $1,340,000 for the year ended December 31, 2003. Even if
we achieve profitability, we may not be able to sustain or increase our
profitability on a quarterly or annual basis. Based on historic cash flow and
projected expenditures, management believes that proceeds from the sale of the
minimum number of Units could enable us to pursue our basic business plan for at
least the next twelve months.

         Our ability to generate future revenues will depend on a number of
factors, many of which are beyond our control. These factors include the rate of
market acceptance of our products, competitive efforts, and general economic
trends. Due to these factors, we cannot anticipate with any degree of certainty
what our revenues will be in future periods. You have limited historical
financial data and operating results with which to evaluate our business and our
prospects. As a result, you should consider our prospects in light of the early
stage of our business in a new and rapidly evolving market.

         Our independent auditors have included in their audit report an
explanatory paragraph that states that our continuing losses from operations
raises substantial doubt about our ability to continue as a going concern.

We have been limited by insufficient capital, and we may continue to be so
limited.

         In the past, we have lacked the capital to market the Voraxial
Separator as we would have liked. Our inability to raise the funding or to
otherwise finance our capital needs could adversely affect our financial
condition and our results of operations, and could prevent us from implementing
our business plan.

         We may seek to raise capital through public and private equity
offerings, debt financing or collaboration, and strategic alliances. Such
financing may not be available when we need it or may not be available on terms
that are favorable to us. If we raise additional capital through the sale of our
equity securities, your ownership interest will be diluted and the terms of the
financing may adversely affect your holdings or rights as a stockholder.

Our business model is unproven.

         Our business model is currently unproven and in the early stages of
development and we have not yet undertaken any substantial marketing activities.
The technological, marketing, and other aspects of our business will require
substantial resources and will undergo constant developmental change. Our
ability to develop a successful business model will be dependent upon the
relative success or failure of these respective aspects of our operations and
how effectively they work in concert with one another. If we expend significant
financial and management resources attempting to market the Voraxial Separator
to a specific industry segment, and we subsequently are unsuccessful in
generating sales from that segment, we may not have enough resources to market
to other industry segments. There are no assurances that we will successfully
develop our business model from the standpoint of successfully implementing an
efficient and effective marketing plan.




                                       18
<PAGE>
If our products do not achieve and maintain market acceptance, our business will
not be successful.

         Even though our product is successfully developed, our success and
growth will depend upon its acceptance by various potential users of our
product. Acceptance will be a function of our product being more cost effective
as compared to currently existing or future technologies. If our product does
not achieve market acceptance, our business will not be successful. In addition,
even if our product achieves market acceptance, we may not be able to maintain
that market acceptance over time if new products or technologies are introduced
that are more favorably received than our product or render our products
obsolete.

If we do not develop sales and marketing capabilities or arrangements
successfully, we will not be able to commercialize our product successfully.

         We have limited sales and marketing experience. We may market and sell
our product through a direct sales force or through other arrangements with
third parties, including co-promotion arrangements. Since we may market and sell
any product we successfully develop through a direct sales force, we will need
to hire and train qualified sales personnel.

Our market is subject to intense competition. If we are unable to compete
effectively, our product may be rendered non-competitive or obsolete.

         We are engaged in a segment of the water filtration industry that is
highly competitive and rapidly changing. Many large companies, academic
institutions, governmental agencies, and other public and private research
organizations are pursuing the development of technology that can be used for
the same purposes as our product. We face, and expect to continue to face,
intense and increasing competition, as new products enter the market and
advanced technologies become available. We believe that a significant number of
products are currently under development and will become available in the future
that may address the water filtration segment of the market. If other products
are successfully developed, it may be marketed before our product.

         Our competitors' products may be more effective, or more effectively
marketed and sold, than any of our products. Many of our competitors have:

         o    significantly greater financial, technical and human resources
than we have and may be better equipped to discover, develop, manufacture and
commercialize products; and

         o    more extensive experience in marketing water treatment products.

         Competitive products may render our products obsolete or noncompetitive
before we can recover the expenses of developing and commercializing our
product. Furthermore, the development of new technologies and products could
render our product noncompetitive, obsolete, or uneconomical.

As we evolve from a company primarily involved in design and development to one
also involved in commercialization, we may encounter difficulties in managing
our growth and expanding our operations successfully.

         We may experience a period of rapid and substantial growth that may
place a strain on our administrative and operational infrastructure, and we

                                       19
<PAGE>
anticipate that continued growth could have a similar impact. As our product
continues to enter and advance in the market, we will need to expand our
development, regulatory, manufacturing, marketing and sales capabilities or
contract with third parties to provide these capabilities for us. As our
operations expand, we expect that we will need to manage additional
relationships with various collaborative partners, suppliers, and other third
parties.

If we are unable to adequately protect our technology, or if we infringe the
rights of others, we may not be able to defend our markets or to sell our
product.

         Our success may depend in part on our ability to continue and expand
our patent protection both in the United States and in other countries for our
product. Due to evolving legal standards relating to the patentability,
validity, and enforceability of patents covering our product and the scope of
claims made under these patents, our ability to obtain and enforce patents is
uncertain and involves complex legal and factual questions. Accordingly, rights
under any issued patents may not provide us with sufficient protection for our
product or provide sufficient protection to afford us a commercial advantage
against competitive products or processes.

         Our success may also depend in part on our ability to operate without
infringing the proprietary rights of third parties. The manufacture, use, or
sale of our product may infringe on the patent rights of others. Likewise, third
parties may challenge or infringe upon our existing or future patents.
Proceedings involving our patents or patent applications or those of others
could result in adverse decisions regarding:

         o   the patentability of our inventions relating to our product; and/or

         o   the enforceability, validity, or scope of protection offered by our
             patents relating to our product.

         Litigation may be necessary to enforce the patents we own and have
applied for (if they are awarded), copyrights, or other intellectual property
rights, to protect our trade secrets, to determine the validity and scope of the
proprietary rights of others, or to defend against claims of infringement. This
type of litigation could result in the expenditure of significant financial and
managerial resources and could result in injunctions preventing us from
distributing certain products. Such claims could materially adversely affect our
business, financial condition, and results of operations.

We are dependent on key personnel.

         We are dependent upon the availability and the continued performance of
the services of key personnel. The loss of the services of any such personnel
could have a material adverse effect on us. In addition, the availability of
skilled personnel is extremely important to our growth strategy and our failure
to attract and retain such personnel could have a material, adverse effect on
us. We do not currently maintain any key man life insurance covering these
persons.

Our operations are subject to governmental approvals and regulations and
environmental compliance.

         Our operations are subject to extensive and frequently changing
federal, state, and local laws and substantial regulation by government
agencies, including the United States Environmental Protection Agency (EPA), the
United States Occupational Safety and Health administration (OSHA) and the
Federal Aviation Administration (FAA). Among other matters, these agencies

                                       20
<PAGE>
regulate the operation, handling, transportation and disposal of hazardous
materials used by us during the normal course of our operations, govern the
health and safety of our employees and certain standards and licensing
requirements for our aerospace components that we contract manufacture. We are
subject to significant compliance burden from this extensive regulatory
framework, which may substantially increase our operational costs.

         We believe that we have been and are in compliance with environmental
requirements and believe that we have no liabilities under environmental
requirements. Further, we have not spent any funds specifically on compliance
with environmental laws. However, some risk of environmental liability is
inherent in the nature of our business, and we might incur substantial costs to
meet current or more stringent compliance, cleanup, or other obligations
pursuant to environmental requirements in the future. This could result in a
material adverse effect to our results of operations and financial condition.

Our business has a substantial risk of product liability claims. If we are
unable to obtain appropriate levels of insurance, a product liability claim
against us could aversely affect our business.

         Our business exposes us to possible claims of personal injury, death,
or property damage, which may result from the failure, or malfunction of any
component or subassembly manufactured or assembled by us. We currently do not
have product liability insurance. Any product liability claim made against us
will have a material adverse effect on our business, financial condition, or
results of operations in light of our poor financial condition, losses and
limited revenues. We have plans to obtain product liability insurance in the
near future. We do not possess third party insurance coverage and are,
therefore, effectively, self-insured with respect to product liability,
directors and officers, and general insurance coverage. We have plans to obtain
third party insurance coverage in the near future.

Item 7. Financial Statements

         The financial statements required by this report are included,
commencing on F-1.

Item 8. Changes in and Disagreements With Accountants on Accounting and
        Financial Disclosure

         None.

Item 8A. Controls and Procedures

         Evaluation of disclosure controls and procedures

         As of the end of the period covered by this report, we carried out an
evaluation of the effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Exchange Act Rule 13a-14. This evaluation
was done under the supervision and with the participation of our Principal
Executive Officer and Principal Financial Officer. Based upon that evaluation,
our Principal Executive Officer and Principal Financial Officer concluded that
our disclosure controls and procedures are effective in gathering, analyzing and
disclosing information needed to satisfy our disclosure obligations under the
Exchange Act.

         Changes in internal controls

         There were no significant changes in our internal controls or in other
factors that could significantly affect those controls since the most recent
evaluation of such controls.

                                       21
<PAGE>
PART III
--------

Item 9. Directors and Executive Officers

Directors and executive officers

         The following sets forth the names and ages of our officers and
directors. Our directors are elected annually by our shareholders, and the
officers are appointed annually by our board of directors.

              Name                     Age            Position
              ----                     ---            --------

              Alberto DiBella           72            President and Director
              Frank J. DeMicco          55            Chief Operating Officer
              John A. DiBella           32            Executive Vice President
                                                        of Business Development

         Alberto DiBella is a graduate of the Florence Technical Institute,
Italy, where he obtained a degree in mechanical engineering in 1952. After
immigrating to the United States in 1962, Mr. DiBella worked in New Jersey for a
major tool manufacturer. From 1988 to 1993, he was the President of E.T.P., Inc,
a machining business, where he was responsible for day to day operations of the
company. In 1993, he relocated to Florida and founded FPA, our wholly owned
subsidiary. Since our inception he has worked in the day to day operations of
FPA. He has been our president and chairman since June 1996 and president and
chairman of our subsidiary, FPA, since its organization in February 1993.

         Frank J. DeMicco has been employed by our Company since January 2003.
He previously served as President of United Water New Jersey and Senior
Vice-President of Operations for United Water Resources from 1996 to 2000.
DeMicco, a licensed professional engineer in NY, NJ, PA, VA and Puerto Rico, has
over 35 years of senior executive management experience in the fields of heavy
construction, consulting engineering and utility design, construction, and
management. As the former senior technical and operations executive within
United Water executive management, DeMicco assisted that company in increasing
its market capitalization from $400 Million in 1991 to $1.8 Billion in 2000. In
July 2000, United Water was acquired by the French utility giant, Suez Lyonnaise
des Eaux (NYSE: SZE), the world's largest provider of water and wastewater
services. Prior to his tenure at United Water, DeMicco was the President and
Chief Technical Officer of Buck, Seifert & Jost, Consulting Engineers ("BS&J").
DeMicco's responsibilities have included responsible charge of design and/or
construction inspection for water and sewage treatment plants, pumping stations,
gravity dams, water and sewage pipelines, filter plant expansions, computerized
process control systems and control systems software development for the water
treatment industry.

         John A. DiBella has served as an employee of our Company since January
2002. From 2000 through January 2002 Mr. DiBella provided consulting services to
our Company. Mr. DiBella serves as the Company's Director of Business
Development. Mr. DiBella co-founded and served as President of PBCM, a financial



                                       22
<PAGE>
management company located in New Jersey from 1997 to 1999. While at PBCM, Mr.
DiBella was involved in various consulting services regarding the development of
publicly traded companies, including establishing a management team, negotiating
partnerships, licensing agreements and investigating merger and acquisition
opportunities. Prior to co-founding PBCM, Mr. DiBella served as a Securities
Analyst in the Equities and Derivatives Department for Donaldson, Lufkin and
Jenrette, a NYSE member firm. Mr. DiBella holds a Bachelor of Science Degree in
Finance and Economics from Rutgers University. Mr. DiBella is the nephew of
Alberto DiBella.

Board of Directors and Committees

         During the year ended December 31, 2003, our board of directors held
six meetings.

         To date, we have not established an audit committee. Our board of
directors, solely consisting of Alberto DiBella, reviews the professional
services provided by our independent auditors, the independence of our auditors
from our management, our annual financial statements and our system of internal
accounting controls. Mr. DiBella is not considered a "financial expert."

         We have not established a compensation committee nor nominating
committee.

Code of Ethics

         During the year ended December 31, 2003 we adopted a code of ethics.
The code applies to our officers and directors. The code provides written
standards that are designed to deter wrong-doing and promote: (i) honest and
ethical conduct; (ii) full, fair, accurate, timely and understandable
disclosure; (iii) compliance with applicable laws and regulations; (iv) promote
reporting of internal violations o the code; and (v) accountability for the
adherence to the code.

Section 16(a) of the Exchange Act

         Section 16(a) of the Securities Exchange Act of 1934 requires our
directors and executive officers, and persons who own more than ten percent of
our outstanding common stock to file with the SEC initial reports of ownership
and reports of changes in ownership of common stock. These persons are required
by SEC regulation to furnish us with copies of these reports they file.

         To our knowledge, based solely on a review of the copies of reports
furnished to us and written representations that no other reports were required,
Section 16(a) filing requirements applicable to our officers, directors and
greater than ten percent beneficial owners were not complied with on a timely
basis for the period which this report relates.

Item 10. Executive compensation

         The table below sets forth compensation for the past two years awarded
to, earned by or paid to our chief executive officer and each executive officer
whose compensation exceeded $100,000 for the year ended December 31, 2003.



                                       23
<PAGE>
<TABLE>
<CAPTION>
                                         SUMMARY COMPENSATION TABLE
                                         --------------------------
                                             Annual Compensation

                                                                                  Shares of Common Stock
                                                                                     Underlying Option
Name and Position                   Year             Salary            Bonus           Compensation       Other
-----------------                   ----             ------            -----           ------------       -----
<S>                                 <C>               <C>            <C>                <C>                <C>
Alberto DiBella, CEO                2003              $150,000(4)        ---                  ---           ---
                                    2002              $ 12,000(4)        ---                  ---           (1)

Frank J. DeMicco, COO               2003              $150,000           ---              300,000(2)        (2)

John A. DiBella, EVP                2003              $150,000(5)        ---                  ---           ---
                                    2002              $ 60,000       $60,000            2,000,000(3)        (3)
</TABLE>
(1)      For services rendered during 1997, Mr. DiBella was paid cash
         compensation of $50,000 together with 1,000,000 voting convertible,
         non-cumulative 8% preferred shares, $0.001 par value. In 1997 Mr.
         DiBella also exchanged 5,000,000 shares of common stock for 5,000,000
         shares of voting convertible, non-cumulative 8% preferred shares, $.001
         par value. Effective December 31, 2002, pursuant to its terms, the
         preferred stock converted into shares of common stock on a one for one
         basis. Mr. DiBella had 6,000,000 shares of preferred stock at the time
         of conversion.

(2)      Pursuant to Mr. DeMicco's employment agreement, Mr. DeMicco received
         warrants to purchase 300,000 shares of the Company's common stock
         exercisable at $1.00 per share. The warrants vest periodically over the
         term of the agreement.

(3)      Pursuant to Mr. DiBella's employment agreement, Mr. DiBella received
         options to purchase 2,000,000 shares of the Company's common stock
         exercisable at $.15 per share.

(4)      Salary has been deferred.

(5)      $133,000 has been deferred.

 Options granted in the Year Ended December 31, 2003 to Executives and Directors

                   Number of       % of Total
                   Securities       Options/
                   Underlying         SARs
                    Options/       Granted to       Exercise of
                      SARs        Employees in       Base Price      Expiration
Name                Granted       Fiscal Year        ($/Share)          Date
----                -------       -----------        ---------          ----

Frank DeMicco       300,000           97%              $1.00           1/1/08

         There were 10,000 options granted to executive employees for the year
ended December 31, 2003, 2,200,000 for the year ended December 31, 2002.



                                       24
<PAGE>
         Aggregated Fiscal Year-End Option Value Table

         The following table sets forth certain information concerning
unexercised stock options as of December 31, 2003.
<TABLE>
<CAPTION>
                                         Number Of                               Value Of Unexercised
                                    Unexercised Options                              In-the-Money
                                     Held at 12/31/03                          Options at 12/31/03 (1)
                                     ----------------                          -----------------------

                       Shares        Shares Acquired        Shares
       Name          Exercisable       On Exercise       Unexercisable      Exercisable      Unexercisable
       ----          -----------       -----------       -------------      -----------      -------------
<S>                    <C>               <C>                <C>                 <C>               <C>
Frank DeMicco           100,000           100,000          200,000            $        0            $0
John A. DiBella       2,000,000         2,000,000                0            $1,380,000            $0
</TABLE>
(1)      The closing sale price of the Common Stock on December 31, 2003 as
         reported by OTCBB was $0.84 per share. Value is calculated by
         multiplying (a) the difference between $0.84 and the option exercisable
         price by (b) the number of shares of Common Stock underlying the
         options.

Employment agreements

         Alberto DiBella, our chief executive officer, president and chairman
does not have an employment contract. However, the Company has recorded a charge
$12,000 to reflect the fair value of services rendered to the Company in 2002
and Mr. DiBella accrued a salary of $150,000 in 2003.

         Frank DeMicco. On January 1, 2003, we entered into a five year
employment agreement with Mr. DeMicco to serve as operating officer of our
Company. Pursuant to the agreement, Mr. DeMicco receives an annual base salary
of $150,000 per year, payable in monthly installments. In addition, Mr. DeMicco
shall receive an annual increase in base salary equal to a minimum of ten
percent of his prior base salary. Pursuant to the agreement, Mr. DeMicco also
has received warrants to purchase 100,000 shares of common stock exercisable at
$1.00 per share commencing on the one year anniversary of the agreement. In
addition, at the end of each subsequent year of the agreement, Mr. DeMicco shall
be issued warrants to purchase 50,000 shares of common stock exercisable at
$1.00 per share.

         John A. DiBella. On January 17, 2002, our Company entered into a one
year employment agreement with John A. DiBella to serve as vice president and
director of business development. Pursuant to the agreement, Mr. DiBella
receives a base salary of $60,000 with a bonus provision for $60,000. Such bonus
and salary were earned and accrued in 2002. Mr. DiBella was also granted stock
options to purchase 2,000,000 shares of our common stock at an exercise price of
$.15 per share. The agreement further provides that until a new employment
agreement is negotiated, Mr. DiBella's salary shall increase to $150,000 per
year, payable monthly.

Director Compensation

         Directors are not compensated by our company.



                                       25
<PAGE>
Item 11. Security Ownership of Certain Beneficial Owners and Management

Beneficial Ownership

         The table below sets forth information with respect to the beneficial
ownership of our securities as of December 31, 2003 by:

         1) each person known by us to be the beneficial owner of five percent
or more of our outstanding securities, and

         2) executive officers and directors, individually and as a group.

         Unless otherwise indicated, we believe that the beneficial owner has
sole voting and investment power over such shares.

Name and Address of             Number of Shares                Percentage of
 Beneficial Owner              Beneficially Owned                 Ownership
 ----------------              ------------------                 ---------

Alberto DiBella                       9,050,000(1)                   63%
3500 Bayview Drive
Fort Lauderdale, FL 33308

Frank DeMicco                           100,000(3)                    *
821 N.W. 57th Place
Fort Lauderdale, FL 33309

John DiBella                          3,066,666(2)                 17.2%
821 N.W. 57th Place
Fort Lauderdale, FL 33309

All officers and directors           12,216,666                    75.9%
as a group (3 persons)

*      less than 1%

(1)    Alberto DiBella's beneficial share ownership includes 10,000 shares of
       common stock owned by his wife.

(2)    Includes 2,000,000 shares of common stock underlying warrants
       exercisable at $.15 per share.

(3)    Includes 100,000 shares of common stock underlying warrants exercisable
       at $1.00 per share which are exercisable immediately, but excludes
       200,000 shares of common stock underlying warrants exercisable at $1.00
       per share which vest periodically over the next four years.









                                       26
<PAGE>
Securities Authorized for Issuance Under Equity Compensation Plans

         The table below provides information pertaining to all compensation
plans under which equity securities of our company are authorized for issuance
as of the end of the most recent fiscal year.
<TABLE>
<CAPTION>
                                                                                           Number of securities
                                  Number of securities                                    remaining available for
                                    to be issued upon          Weighted-average            future issuance under
                                       exercise of             exercise price of            equity compensation
                                  outstanding options,       outstanding options,       plans (excluding securities
                                   warrants and rights        warrants and rights         reflected in 1st column
                                   -------------------        -------------------         -----------------------
<S>                                              <C>                     <C>                             <C>
Equity compensation plans
   approved by security holders                  0                         N/A                           0

Equity compensation plans not
   approved by security holders          2,555,000                       $0.30                           0

         Total                           2,555,000                                                       0
</TABLE>
Item 12. Certain Relationships and Related Transactions

         None.

Item 13. Exhibits, Lists and Reports on Form 8-K

Exhibit No.     Description of Exhibit
-----------     ----------------------

    2           Plan of Merger*
    3(i)        Articles of Incorporation*
    3(ii)       Bylaws*
    4           Share Certificate*
    14          Code of Ethics
    21          Subsidiaries*
    31.1        Rule 13a-14(a)/15d-4(a) Certification of Principal
                Financial Officer
    31.2        Rule 13a-14(a)/15d-4(a) Certification of Principal
                Financial Officer
    32.1        Section 1350 Certification of Principal Executive Officer
    32.2        Section 1350 Certification of Principal Financial Officer

*Previously filed
















                                       27
<PAGE>
Item 14. Principal Accountant Fees and Services

Year ended December 31, 2003

         Audit Fees: The aggregate fees, including expenses, billed by our
principal accountant in connection with the audit of our consolidated financial
statements for the most recent fiscal year and for the review of our financial
information included in our Annual Report on Form 10-KSB; and our quarterly
reports on Form 10-QSB during the fiscal year ending December 31, 2003 was
$30,000.

         Audit Related Fees: The aggregate fees, including expenses, billed by
our principal accountant for services reasonably related to the audit for the
year ended December 31, 2003 were $-0-.

         All Other Fees: The aggregate fees, including expenses, billed for all
other services rendered to us by our principal accountant during year 2003 was
$-0-.

Year ended December 31, 2002

         Audit Fees: The aggregate fees, including expenses, billed by our
principal accountant in connection with the audit of our consolidated financial
statements for the fiscal year ended December 31, 2002 and for the review of our
financial information included in our Annual Report on Form 10-KSB for the
fiscal year ended December 31, 2002; and our quarterly reports on Form 10-QSB
during the fiscal year ending December 31, 2002 was $27,050.

         Audit Related Fees: The aggregate fees, including expenses, billed by
our principal accountant for services reasonably related to the audit for the
year ended December 31, 2002 were $-0-.

         All Other Fees: The aggregate fees, including expenses, billed for all
other services rendered to us by our principal accountant during year 2002 was
$-0-.

         The Board of Directors has considered whether the provisions of the
services covered above under the captions "Financial Information Systems Design
and Implementation Fees" and "All Other Fees" is compatible with maintaining the
auditor's independence.


















                                       28
<PAGE>
                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Securities Exchange Act
of 1934, as amended, the registrant caused this report to be signed on its
behalf by the undersigned and duly authorized on April 14, 2004.

                                     ENVIRO VORAXIAL TECHNOLOGY, INC.


                                     By: /s/ Alberto DiBella
                                        ----------------------------------------
                                        Alberto DiBella
                                        President and Chief Executive Officer
                                        (Principal Executive Officer and
                                        Principal Financial Officer)








































                                       29

<PAGE>





















                        ENVIRO VORAXIAL TECHNOLOGY, INC.
                                 AND SUBSIDIARY

                        CONSOLIDATED FINANCIAL STATEMENTS

                                DECEMBER 31, 2003



<PAGE>
<TABLE>
<CAPTION>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY


Contents

                                                                                                                       Page
                                                                                                                       ----

<S>                                                                                                                    <C>
Consolidated Financial Statements

   Independent auditors' report                                                                                        F-1

   Balance sheet as of December 31, 2003                                                                               F-2

   Statements of operations for the years ended December 31, 2003 and 2002                                             F-3

   Statements of stockholders' equity (capital deficit) for the years ended December 31, 2003
      and 2002                                                                                                         F-4

   Statements of cash flows for the years ended December 31, 2003 and 2002                                             F-5

   Notes to consolidated financial statements                                                                          F-6
</TABLE>



<PAGE>
INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Stockholders
Enviro Voraxial Technology, Inc.


We have audited the accompanying consolidated balance sheet of Enviro Voraxial
Technology, Inc. and subsidiary (the "Company") as of December 31, 2003 and the
related consolidated statements of operations, stockholders' equity (capital
deficit) and cash flows for the years ended December 31, 2003 and 2002. These
consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

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

In our opinion, the financial statements enumerated above present fairly, in all
material respects, the consolidated financial position of Enviro Voraxial
Technology, Inc. and subsidiary as of December 31, 2003 and the consolidated
results of their operations and their consolidated cash flows for the years
ended December 31, 2003 and 2002, in conformity with accounting principles
generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note A to the
financial statements, the Company has experienced recurring net losses, has a
working capital deficit and cash outflows from operating activities that raise
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note A. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.



Eisner LLP

Florham Park, New Jersey
April 6, 2004









                                       F-1
<PAGE>
<TABLE>
<CAPTION>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Balance Sheet
--------------------------
December 31, 2003
-----------------


<S>                                                                                               <C>
ASSETS
Current assets:
   Cash and cash equivalents                                                                      $     150,000
   Inventory                                                                                             70,000
   Other current assets                                                                                   5,000
                                                                                                  -------------

        Total current assets                                                                            225,000

Property, plant and equipment, net                                                                       46,000
Other assets                                                                                              5,000
                                                                                                  -------------

                                                                                                  $     276,000
                                                                                                  =============

LIABILITIES
Current liabilities:
   Current portion of obligations under capital leases                                            $      15,000
   Accounts payable and accrued expenses                                                                591,000
                                                                                                  -------------

        Total current liabilities                                                                       606,000
                                                                                                  -------------

Commitments and contingency

CAPITAL DEFICIT
Capital stock $.001 par value:
   Preferred stock, voting, 8% noncumulative, convertible, authorized 7,250,000
      shares, issued and outstanding - none
   Common stock, authorized 42,750,000 shares; 15,402,636 shares issued
      and outstanding, 100,000 shares issuable                                                           15,000
Additional paid-in capital                                                                            2,725,000
Deferred compensation                                                                                   (21,000)
Accumulated deficit                                                                                  (3,049,000)
                                                                                                  -------------

        Total capital deficit                                                                          (330,000)
                                                                                                  -------------

                                                                                                  $     276,000
                                                                                                  =============
</TABLE>











                 See notes to consolidated financial statements
                                      F-2
<PAGE>
<TABLE>
<CAPTION>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Operations
-------------------------------------



                                                                                    Year Ended December 31,
                                                                                -------------------------------
                                                                                    2003              2002
                                                                                -------------     -------------

<S>                                                                             <C>               <C>
Revenue:
   Contract revenue (Note C)                                                                      $      46,000
   Product sales (Note C)                                                       $       3,000            37,000
                                                                                -------------     -------------

      Total revenue                                                                     3,000            83,000
                                                                                -------------     -------------

Costs and expenses:
   Cost of contract revenue                                                                               4,000
   Cost of sales                                                                        1,000            14,000
   General and administrative                                                         751,000           335,000
   Research and development                                                           589,000           295,000
                                                                                -------------     -------------

      Total costs and expenses                                                      1,341,000           648,000
                                                                                -------------     -------------

Loss before other expense                                                          (1,338,000)         (565,000)
                                                                                -------------     -------------

Other expenses (income):
   Interest expense                                                                     5,000            10,000
   Other income (Note G)                                                               (3,000)           (9,000)
                                                                                -------------     -------------

      Total other expense                                                               2,000             1,000
                                                                                -------------     -------------

Net loss                                                                        $  (1,340,000)    $    (566,000)
                                                                                =============     =============

Basic and diluted loss per common share                                         $       (0.09)    $       (0.08)
                                                                                =============     =============

Weighted average number of common shares outstanding                               14,674,459         7,509,000
                                                                                =============     =============
</TABLE>












                 See notes to consolidated financial statements
                                       F-3

<PAGE>
<TABLE>
<CAPTION>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Stockholders' Equity (Capital Deficit)
-----------------------------------------------------------------



                                    Preferred Stock           Common Stock     Additional
                                    ---------------           ------------      Paid-in     Deferred    Accumulated
                                  Shares    Par Value     Shares    Par Value   Capital   Compensation    Deficit        Total
                                  ------    ---------     ------    ---------   -------   ------------    -------        -----
<S>                              <C>          <C>      <C>           <C>       <C>        <C>           <C>           <C>
Balance, December 31, 2001       6,000,000    $ 6,000    7,470,968   $  7,000  $1,343,000               $(1,143,000)  $  213,000
Issuance of units consisting of
   common stock and warrants,
   net of issuance costs                                   516,666      1,000     285,000                                286,000
Shares of common stock and
   common stock warrants
   issuable (Note E)                                       100,000                100,000                                100,000
Services provided by founder
   at estimated fair value                                                         12,000                                 12,000
Issuance of common stock
   upon conversion of preferred
   stock (Note E)               (6,000,000)    (6,000)   6,000,000      6,000                                                  0
Net loss for the year ended
   December 31, 2002                                                                                       (566,000)    (566,000)
                                ----------   --------   ----------   --------  ----------  ---------    -----------   ----------

Balance, December 31, 2002               0          0   14,087,634     14,000   1,740,000                (1,709,000)      45,000
Issuance of units consisting
   of common stock and warrants,
   net of issuance costs                                 1,285,002      1,000     769,000                                770,000
Issuance of warrants in
   accordance with
   employment agreement                                                            45,000  $ (45,000)                          0
Amortization of deferred
   compensation                                                                               24,000                      24,000
Shares issued for services                                 130,000                171,000                                171,000
Net loss for the year ended
   December 31, 2003                                                                                     (1,340,000)  (1,340,000)
                                ----------   --------   ----------   --------  ----------  ---------    -----------   ----------

Balance, December 31, 2003               0    $     0   15,502,636   $ 15,000  $2,725,000  $ (21,000)   $(3,049,000)  $ (330,000)
                                ==========   ========   ==========   ========  ==========  =========    ===========   ==========
</TABLE>

















                 See notes to consolidated financial statements
                                       F-4


<PAGE>
<TABLE>
<CAPTION>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows
-------------------------------------


                                                                                                  Year Ended December 31,
                                                                                                --------------------------
                                                                                                    2003           2002
                                                                                                ------------   -----------
<S>                                                                                             <C>            <C>
Cash flows from operating activities:
   Net loss                                                                                     $ (1,340,000)  $  (566,000)
   Adjustments to reconcile net loss to net cash used in operating activities:
      Depreciation                                                                                    32,000        45,000
      Common stock issued for services                                                               171,000
      Deferred compensation                                                                           24,000
      Services provided by founder without remuneration                                                             12,000
      Changes in:
        Accounts receivable                                                                           10,000         1,000
        Inventory                                                                                      1,000         4,000
        Accounts payable and accrued expenses                                                        345,000        93,000
                                                                                                ------------   -----------

           Net cash used in operating activities                                                    (757,000)     (411,000)
                                                                                                ------------   -----------

Cash flows from financing activities:
   Net proceeds from issuance of common stock                                                        770,000       286,000
   Repayments of obligations under capital leases                                                    (30,000)      (31,000)
                                                                                                ------------   -----------

           Net cash provided by financing activities                                                 740,000       255,000
                                                                                                ------------   -----------

Net decrease in cash and cash equivalents                                                            (17,000)     (156,000)
Cash and cash equivalents, beginning of year                                                         167,000       323,000
                                                                                                ------------   -----------

Cash and cash equivalents, end of year                                                          $    150,000   $   167,000
                                                                                                ============   ===========

Supplemental disclosure of cash flow information:
   Cash paid for interest                                                                       $      5,000   $    10,000

Supplemental disclosures of noncash investing and financing activities:
   Issuance of 100,000 common shares at $1 per share in settlement of                                          $   100,000
      amount due to investor
   Issuance of 6 million common shares upon conversion of 6 million preferred
      shares (Note E)                                                                                          $         0
</TABLE>















                 See notes to consolidated financial statements
                                       F-5

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE A - ORGANIZATION AND OPERATIONS

Enviro Voraxial Technology, Inc. (the "Company") is a provider of environmental
and industrial separation technology. The Company has developed and patented the
Voraxial Separator, which is a technology that efficiently separates solids and
liquids with distinct specific gravities. Potential commercial applications and
markets include pre-treatment of wastewater (headworks) at municipal wastewater
facilities, oil/water separation, and environmental cleanup.

Until 1999, the Company focused its operations on a high precision engineering
machine shop located in Florida which designs, manufactures and assembles
specialized parts and components for the aerospace and automotive industries.
The Company currently operates within two segments: the manufacture and
distribution of the voraxial separator; and contract manufacturing services to
the aerospace and automotive industries. All assets of the Company, except for
inventory, are associated with contract manufacturing services. Contract revenue
and cost of contract revenue are associated with manufacturing services. Product
sales and cost of sales are associated with the voraxial separator. All research
and development expenses and primarily all general and administrative expenses
are associated with the voraxial separator. Since 1999, the Company has been
focusing its efforts on developing and marketing the voraxial separator.

The Company has experienced net losses, has negative cash flows from operating
activities, and had to raise capital to sustain operations. There is no
assurance that the Company's developmental and marketing efforts will be
successful, that the Company will ever have commercially accepted products, or
that the Company will achieve a level of revenue sufficient to provide cash
inflows to sustain operations. The Company will continue to require the infusion
of capital until operations become profitable. During 2004, the Company
anticipates seeking additional capital, increasing sales of the voraxial
separator and continuing to restrict expenditures. Substantial doubt exists
about the ability of the Company to continue as a going concern. These financial
statements make no adjustment to the classification or amount of assets or
liabilities that may be necessary if the Company is unable to continue as a
going concern.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

[1]    Principles of consolidation:

       The consolidated financial statements include the accounts of the parent
       company, Enviro Voraxial Technology, Inc., and its wholly-owned
       subsidiary, Florida Precision Aerospace, Inc. All significant
       intercompany accounts and transactions have been eliminated.

[2]    Cash and cash equivalents:

       The Company considers all highly liquid investments with a maturity of
       three months or less at the date of purchase to be cash equivalents. The
       Company maintains its cash balances with various financial institutions.
       Balances at these institutions may at times exceed the FDIC limits.

[3]    Property, plant and equipment:

       Property, plant and equipment are stated at cost less accumulated
       depreciation. The cost of maintenance and repairs is charged against
       results of operations as incurred. Depreciation is computed by the
       straight-line method over the estimated economic useful life of the
                                      F-6
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

[3]    Property, plant and equipment: (Continued)

       assets (5-10 years). Gains and losses recognized from the sales or
       disposal of assets is the difference between the sales price and the
       recorded cost less accumulated depreciation less costs of disposal.

[4]    Net loss per share:

       Basic and diluted loss per share has been computed by dividing the net
       loss available to common stockholders by the weighted average number of
       common shares outstanding. The warrants and stock options have been
       excluded from the calculation since they would be anti-dilutive. Such
       equity instruments may have a dilutive effect in the future and include
       the following potential common shares:

           Warrants                                              3,062,202
           Stock options                                         2,255,000
                                                                 ---------
                                                                 5,317,202
                                                                 =========

       The number of stock options above does not include 375,000 stock options
       contingently issuable upon the achievement of milestones under a
       consulting agreement. The timetable to achieve the specified milestones
       has been extended to June 2004.

[5]    Inventory:

       Inventory consists of components for the voraxial separator and is priced
       at lower of first-in, first-out cost or market. Inventory includes
       components held by third parties in connection with pilot programs as
       part of the continuing evaluation by such third parties as to the
       effectiveness and usefulness of the service to be incorporated into their
       respective operations.

[6]    Use of estimates:

       The preparation of financial statements in conformity with accounting
       principles generally accepted in the United States of America requires
       management to make estimates and assumptions that affect the reported
       amounts of assets and liabilities and disclosures of contingent assets
       and liabilities at the date of the financial statements and the reported
       amounts of revenue and expenses during the reporting period. Actual
       results may differ. A significant estimate involves the value of the
       Company's inventory.

[7]    Income taxes:

       Deferred income taxes are recognized for the tax consequences in future
       years of differences between the tax bases of assets and liabilities and
       their financial reporting amounts based on enacted tax laws and statutory
       tax rates applicable to the periods in which the differences are expected
       to affect taxable income. Valuation allowances are established when
       necessary, to reduce deferred tax assets to the amount expected to be
       realized.
                                      F-7
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

[8]    Research and development expenses:

       Research and development costs are expensed as incurred.

[9]    Revenue recognition:

       The Company recognizes contract revenue when earned. Shipments of the
       voraxial separator to third parties are recognized as revenue upon
       customer acceptance. Shipments to third parties in connection with pilot
       programs are not recognized as revenue and such components are included
       in inventory as of December 31, 2003.

[10]   Fair value of financial instruments:

       Obligations under capital leases approximate fair value as the interest
       rates applicable to these debt instruments are comparable to current
       market rates for similar maturities.

[11]   Advertising costs:

       Promotion costs, which amounted to $9,000 in 2003, are expensed as
       incurred and are included in general and administrative expenses.
       Promotion costs incurred during the year ended December 31, 2002 amounted
       to $11,000.

[12]   Stock-based compensation:

       The Company accounts for stock-based employee compensation under
       Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock
       Issued to Employees," and related interpretations. The Company has
       adopted the disclosure-only provisions of Statement of Financial
       Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based
       Compensation," and SFAS No. 148, "Accounting for Stock-Based Compensation
       - Transition and Disclosure," which was released in December 2002 as an
       amendment of SFAS No. 123. The following table illustrates the effect on
       net loss and loss per share if the fair value based method had been
       applied to all awards.
<TABLE>
<CAPTION>
                                                                                 Year Ended December 31,
                                                                               ---------------------------
                                                                                    2003           2002
                                                                               -------------    ----------
<S>                                                                            <C>              <C>
        Reported net loss                                                      $ (1,340,000)    $ (566,000)
        Stock-based employee compensation expense included in
           reported net loss, net of related tax effects                             24,000
        Stock-based employee compensation determined under the
           fair value based method                                                 (146,000)      (114,000)
                                                                               ------------     ----------

        Pro forma net loss                                                     $ (1,462,000)    $ (680,000)
                                                                               ============     ==========

        Basic and diluted loss per common share:
           As reported                                                         $      (0.09)    $    (0.08)
                                                                               ============     ==========
           Pro forma                                                           $      (0.10)    $    (0.09)
                                                                               ============     ==========
</TABLE>
                                      F-8
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

[12]   Stock-based compensation: (Continued)

       The fair value of each option grant on the date of grant is estimated
       using the Black-Scholes option-pricing model with a volatility of 68% for
       2003 and 2002, expected life of options of 5 years, risk free interest
       rate of 2.9% - 4.3% in 2003 and 2002 and a dividend yield of 0%. The
       weighted average fair value of options granted during the years ended
       December 31, 2003 and 2002 was $0.60 and $0.09, respectively.

[13]   Recent accounting pronouncements:

       In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
       Associated with Exit or Disposal Activities." The Company's adoption of
       SFAS No. 146 on January 1, 2003 did not have any material effect on the
       consolidated financial statements of the Company.

       In December 2003, the FASB issued Interpretation No. 46R, "Consolidation
       of Variable Interest Entities," in an effort to expand upon and
       strengthen existing accounting guidance that addresses when a company
       should include in its financial statements the assets, liabilities and
       activities of variable interest entities, including special-purpose
       entities or off-balance sheet structures. The consolidation requirements
       of FIN No. 46R have a variety of implementation dates. The Company
       believes the impact of FIN No. 46R on its financial position and results
       of operations will not be material, but the Company will continue to
       evaluate the impact of FIN No. 46R during the first quarter of 2004.

       In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
       Financial Instruments with Characteristics of both Liabilities and
       Equity." This statement affects the issuer's accounting for three types
       of freestanding financial statements: mandatorily redeemable shares, put
       and forward purchase contracts that require the issuer to buy back some
       of its shares in exchange for cash or other assets, and certain
       obligations that can be settled in shares. This statement is effective
       for all financial instruments entered into or modified after May 31,
       2003, and otherwise effective at the beginning of the first interim
       period beginning after June 15, 2003. The impact of adopting SFAS No. 150
       was not material to the Company's financial position and results of
       operations.

       In December 2003, the Securities and Exchange Commission ("SEC"),
       published Staff Accounting Bulletin ("SAB") No. 104, "Revenue
       Recognition." This SAB updates portions of the SEC staff's interpretive
       guidance provided in SAB No. 101 and included in Topic 13 of the
       Codification of Staff Accounting Bulletins. SAB No. 104 deletes
       interpretative material no longer necessary, and conforms the
       interpretive material retained, because of pronouncements issued by the
       FASB's Emerging Issues Task Force ("EITF") on various revenue recognition
       topics, including EITF 00-21, "Revenue Arrangements with Multiple
       Deliverables." SAB No. 104 also incorporates into the SAB Codification
       certain sections of the SEC staff's "Revenue Recognition in Financial
       Statements - Frequently Asked Questions and Answers." SAB No. 104 does
       not have a material impact on the Company's financial position and
       results of operations since the Company's revenue recognition practices
       previously conformed to the interpretations codified by SAB No. 104.
                                      F-9
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE C - CONCENTRATION OF CREDIT RISK

One customer accounted for 100% of total revenue for the year ended December 31,
2003. Four customers accounted for 35%, 27%, 15% and 13% of total revenue for
the year ended December 31, 2002.

NOTE D - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of December 31, 2003 consists of:

     Machinery and equipment                                    $  351,000
     Furniture and fixtures                                         12,000
     Auto                                                           12,000

                                                                   375,000
     Less accumulated depreciation                                 329,000
                                                                ----------
     Net property, plant and equipment                          $   46,000
                                                                ==========

Included in depreciation expense for the year ended December 31, 2003 is
amortization of equipment under capital leases of $19,000. Accumulated
depreciation relating to equipment under capital leases aggregated $129,000 as
of December 31, 2003. Net book value of equipment under capital leases amounted
to $46,000 as of December 31, 2003.

NOTE E - CAPITAL TRANSACTIONS

[1]    Common stock:

       During 2003, the Company issued 1,285,002 shares at $0.60 per share in
       connection with private placement transactions. In connection with these
       transactions the Company issued warrants to purchase 1,285,002 shares of
       common stocks exercisable at $1.00 per share for a period of five years
       from the date of each closing.

       During 2003 the Company issued 130,000 shares of common stock for
       consulting services valued at $171,000. Such amount has been recorded as
       a charge to operations in 2003.

       During the year ended December 31, 2002, the Company sold 5.17 units of
       securities at $60,000 per unit. Each unit consisted of 100,000 shares of
       common stock, 100,000 warrants to purchase 100,000 shares of common stock
       at an exercise price of $1 per share and 100,000 warrants to purchase
       100,000 shares of common stock at an exercise price of $1.25 per share.
       The warrants issued at $1 per share are callable at par value provided
       the stock trades above $1.50 per share for 20 consecutive trading days.
       The warrants issued at $1.25 per share are callable at par value provided
       the stock trades above $2 per share for 20 consecutive trading days. Net
       proceeds received by the Company aggregated $286,000. The warrants were
       exercisable at date of issuance through December 2007. In connection with
       this transaction, the Company issued 10,000 warrants exercisable at $1.25
       per share to the underwriter. No warrants have been exercised through
       December 31, 2002.
                                      F-10
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE E - CAPITAL TRANSACTIONS  (CONTINUED)

[1]    Common stock: (Continued)

       During 2001, the Company received $100,000 from an investor. The Company
       received an executed subscription agreement in December 2002 and will
       issue 100,000 common shares, 100,000 warrants to purchase 100,000 shares
       of common stock at $3 per share and 100,000 warrants to purchase 100,000
       shares of common stock at $4 per share to this investor in 2004.

[2]    Preferred stock:

       The preferred stock had voting rights, was convertible and accrued
       dividends at a rate of 8% per share when and as declared by the Board of
       Directors. The 6 million shares of preferred stock were convertible into
       common stock on a one for one basis. Prior to December 31, 2002, for each
       year revenue increased by $10 million over the preceding year's revenue,
       1 million preferred shares would be convertible into 1,200,000 shares of
       common stock. On December 31, 2002, this provision lapsed and the
       preferred stock was converted into common stock on a one for one share
       basis.

[3]    Options:

       Stock option transactions for employees during 2003 and 2002 were as
       follows:
<TABLE>
<CAPTION>
                                                                                      Exercise      Weighted Average
                                                                                     Price Per       Exercise Price
                                                     Options           Vested          Common          Per Option
                                                   Outstanding         Shares          Share           Outstanding
                                                   -----------         ------          -----           -----------
<S>                                                     <C>                   <C>      <C>               <C>
         Balance, January 1, 2002                       45,000                0        $0.30             $0.30
         Granted/vested during the year              2,200,000        1,115,000    $0.15 - $0.77         $0.20
                                                    ----------        ---------

         Balance, December 31, 2002                  2,245,000        1,115,000    $0.15 - $0.77         $0.21
         Granted/vested during the year                 10,000        1,120,000        $1.00             $1.00
                                                    ----------        ---------
         Balance, December 31, 2003                  2,255,000        2,235,000    $0.15 - $1.00         $0.21
                                                    ==========        =========
</TABLE>
       Information with respect to employee stock options outstanding and
       employee stock options exercisable at December 31, 2003 is as follows:
<TABLE>
<CAPTION>
                                                            Weighted
                                         Number              Average          Weighted                        Weighted
                                     Outstanding at         Remaining          Average                        Average
                 Range of             December 31,         Contractual        Exercise         Number         Exercise
             Exercise Prices              2002           Life (in Years)        Price        Exercisable       Price
             ---------------              ----           ---------------        -----        -----------       -----
<S>               <C>                   <C>                   <C>              <C>             <C>             <C>
                  $0.15                 2,000,000             3.55             $0.15           2,000,000       $0.15
                  $0.30                    45,000             1.87             $0.30              30,000       $0.30
                  $0.77                   200,000             4.13             $0.77             200,000       $0.77
                  $1.00                    10,000             1.01             $1.00               5,000       $1.00
</TABLE>
                                      F-11
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE E - CAPITAL TRANSACTIONS  (CONTINUED)

[4]    Warrants:
                                        Number        Range of        Number
                                     Outstanding   Exercise Price  Exercisable
                                     -----------   --------------  -----------
         Balance, December 31, 2001      243,200   $6.00 - $9.00       243,200
         Issued                        1,234,000   $1.00 - $1.25     1,234,000
                                     -----------                   -----------
         Balance, December 31, 2002    1,477,200   $1.00 - $9.00     1,477,200
         Issued                        1,585,002       $1.00         1,385,002
                                     -----------                   -----------
         Balance, December 31, 2003    3,062,202   $1.00 - $9.00     2,862,202
                                     ===========                   ===========

NOTE F - INCOME TAXES

The significant components of the Company's deferred tax asset and liabilities
as of December 31, 2003 are as follows:

       Deferred income tax assets:
          Net operating losses carryforwards             $     1,109,000
          Tax credits                                             79,000
       Deferred income tax liabilities:
          Depreciation                                            (5,000)
                                                         ---------------
                                                               1,183,000
       Valuation allowance                                    (1,183,000)
                                                         ---------------
       Net deferred tax asset                            $             0
                                                         ===============

The significant components of the benefit for income taxes for the years ended
December 31, 2003 and 2002 are as follows:
                                                        2003           2002
                                                     ----------    -----------
       Deferred:
          Federal                                    $  440,000    $   160,000
          State                                          73,000         22,000
          Change in valuation allowance                (513,000       (182,000)
                                                     ----------    -----------
             Total deferred income taxes             $        0    $         0
                                                     ==========    ===========

As of December 31, 2003, the Company has net operating loss carryforwards of
approximately $2,949,000 for federal income tax purposes, which expire through
2023.

The difference between the statutory federal income tax rate on the Company's
pre-tax loss and the Company's effective income tax rate is summarized as
follows:
                                                        2003          2002
                                                        ----          ----
       Statutory federal income tax rate                34.0 %        34.0 %
       Increase in valuation allowance                 (34.0)        (34.0)

       Effective income tax rate                         0.0 %         0.0 %

                                      F-12
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE G - OTHER INCOME

For 2003 and 2002, other income consists of rental income from pilot programs
relating to the voraxial separator.

NOTE H - COMMITMENTS AND CONTINGENCY

[1]    Employment agreements:

       The Company entered into an employment agreement dated January 17, 2002
       with an individual to serve as the Vice President and Director of
       Business Development. This individual had served as a consultant to the
       Company since 1999. The term of the agreement is for one year. The base
       year salary is $60,000 with a bonus provision for $60,000. Such bonus and
       salary was earned and accrued in 2002. The agreement also provides for a
       contingent bonus to be paid to this employee in the amount of $300,000 to
       improve the financial condition of the Company. Such bonus is payable
       upon the Company obtaining a total of $3 million of financing or when
       revenue exceeds $1 million. The employee was granted stock options to
       purchase 2 million shares of common stock with an exercise price of $0.15
       per share. The market price at the date of grant was $0.12 per share.

       The Company hired two employees under employment agreements that
       commenced in January 2003. The combined salaries for 2003 are $215,000
       subject to annual increases beginning in 2004. Both agreements have a
       term of 5 years. One agreement provides for the granting of up to 300,000
       cashless exercise warrants to purchase common stock at $1 per share which
       may result in a significant charge to operations in the future. The other
       agreement provides for the granting of 10,000 stock options to purchase
       common stock at $1 per share exercisable ratably over two years from the
       date of grant.

[2]    Operating lease:

       The Company leases office and warehouse space in Ft. Lauderdale, Florida.
       Future minimum lease payments, exclusive of common area maintenance
       charges as of December 31, 2003 are as follows:

           Year Ending
           December 31,
           ------------
             2004                                   $ 30,000

       Rent expense charged to operations amounted to $60,000 and $63,000 in
       2003 and 2002, respectively.

[3]    Other matter:

       The Company does not possess third party insurance coverage and is,
       therefore, effectively self-insured with respect to product liability,
       directors and officers, and general insurance coverage.

NOTE I - SUBSEQUENT EVENTS

[1]    Notes payable:

       In January 2004, the Company issued promissory notes amounting to
       $150,000 to third parties. The notes bear interest at 8% per annum with
                                      F-13
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 2003

NOTE I - SUBSEQUENT EVENTS  (CONTINUED)

[1]    Notes payable:  (continued)

       principal and accrued interest payable on December 31, 2004. In the event
       of a default, the interest rate increases to 18%.

       The notes are convertible at the option of the holder for any or all of
       the outstanding principal and interest at a conversion price of $.75 per
       share. The notes shall automatically convert into units that are sold in
       the Company's private placement under terms of a term sheet dated October
       29, 2003 upon the closing of the minimum private placement of $750,000.
       If the private placement is not completed by July 31, 2004, the notes
       will convert into common stock of the Company at the conversion price of
       $.60 per share and the holders shall also receive one warrant for each
       share received in the conversion, exercisable at $1.00 per share for a
       period of five years.

       The above notes were issued to the investment bankers engaged to raise
       the funds under the above mentioned private placement term sheet.

[2]    Common stock:

       In January 2004, the Company sold .37 units of securities to investors.
       Each unit consisted of 166,666 shares of restricted common stock at $.60
       per share and 166,666 warrants to purchase 166,666 shares of common stock
       at $1.00 per share. The warrants are exercisable for a period of five
       years from the date of closing.

[3]    Consulting agreement:

       In January 2004, the Company entered into a consulting agreement (the
       "Agreement"). Services will consist of management consulting, business
       advisory, shareholder information and public relations.

       In connection with this Agreement, the Company sold 170,000 shares to the
       consultant at par value ($0.001 per share). The Company will recognize a
       charge of approximately $141,000 during the first quarter as a result of
       this transaction.

[4]    Stock options:

       In January 2004, three employees settled accrued salaries amounting to
       $370,000 for 1,394,666 options to purchase shares of common stock of the
       Company. 697,333 options are exercisable at $.60 per share and 697,333
       options are exercisable at $1.00.

[5]    Loss:

       In April 2004, the Company experiences a casualty loss of certain copies
       of its technology. Management believes that this will not have a material
       adverse effect on its future operations.
                                      F-14