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**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, 2002

                         Commission file number 0-27445

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

                      Idaho83-0266517
          (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. $ (83,000)

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 ($1.40 as of December 31, 2002). $7,161,887.60.

                    **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, 2002: 13,987,634 Shares
of Common Stock.

                       **DOCUMENTS INCORPORATED BY REFERENCE**
- None -

Transitional Small Business Disclosure Format (Check One)
Yes ___       No  X

                                Table of Contents

PART I
                                                                            Page

Item 1.       Description of Business.........................................3

Item 2.       Description of Property.........................................9

Item 3.       Legal Proceedings...............................................9

Item 4        Submission of Matters to a Vote of Security Holders.............9

PART II

Item 5.       Market for Common Equity and Related Stockholder Matters.......10

Item 6.       Management Discussion and Analysis of Financial
              Condition and Plan of Operations...............................12

Item 7.       Financial Statements...........................................14

Item 8.       Changes in and Disagreements With Accountants
              on Accounting and Financial Disclosure.........................15

PART III

Item 9.       Directors, Executive Officers, Promoters and Control Persons;
              Compliance With Section 16(a) of the Exchange Act..............16

Item 10.      Executive Compensation.........................................17

Item 11.      Security Ownership of Certain Beneficial
              Owners and Management..........................................18

Item 12.      Certain Relationships and Related Transactions.................19

Item 13.      Exhibits, Lists and Reports on Form 8-K........................19

Item 14.      Controls and Procedures........................................20

                                       2
**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 solids and
liquids with distinct specific gravities. Management believes this superior
separation quality is achieved in real-time, and in much greater volumes, with a
more compact and energy efficient machine than any comparable product on the
market today. The VAS operates in-line and is capable of processing at flow
rates exceeding 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 countless industries more
reliable, productive and cost effective.

     The Company is presently researching and developing VAS solutions for
various applications and markets including pre-treatment (head works) of
wastewater, grit/sand separation, oil-water separation, marine/oil-spill clean
up, bilge and ballast treatment, stormwater treatment, and food processing waste
treatment. As companies in these industries seek to develop greater advantages
or differentiators, the VAS may enable them to dramatically increase their
productivity while decreasing their costs.

     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. Recognizing the global crisis concerning water consumption and
waste treatment, the United Nations has declared 2003 to be the "Year of Fresh
Water."

                                       3
**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.

     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 wastewater, grit/sand separation, oil-water
separation, marine/oil-spill clean up, bilge and ballast treatment, stormwater
treatment, and food processing waste treatment markets.

     Until recently, the Company has 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
components for use in both the private and government sectors.

     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.

                                       4

     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                       5 - 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 2002, we have furthered
tested, demonstrated and delivered on a trial basis the Voraxial Separator units
to many companies within various industries including energy production,
wastewater and oil spill. The Company has sold and delivered units for the use
by Alaska Department of Environmental Conservation for oil spill response and
the US Navy for stormwater 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.

     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 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.

                                       5

     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 received two unit orders and delivered both units in fiscal
year 2002. The Company is developing a comprehensive sales and marketing program
that will commence in fiscal year 2003 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.

     The Company has introduced and tested a compact, modular, self-contained
recycle system for the treatment of sanitary wastewater from hotels, apartment
complexes, office buildings, and commercial facilities. The system, called the
Modular WasteWater Processor, treats sanitary wastewater so that the cleaned
water may be used for sanitary, commercial & industrial reuse, lawn and farm
crop irrigation, or stream, river or ocean discharge without damaging the
environment. By treating the wastewater at the source, management believes that
the need for costly piping infrastructure can be eliminated and can permanently
prevent the problem of rainwater overflow in wastewater plants.

**Anticipated Business of the Company**

     In fiscal year 2003 management intends to initially concentrate its
marketing efforts in the following industrial sectors: municipal wastewater
treatment, oil/water separation, oil spill, and oil exploration and production.
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.

                                       6
**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.

**Marketing**

     The Company's products and services are marketed through our existing staff
and specific distributors currently focused in the US, Europe, Middle East, and
South America. The Company anticipates hiring additional management and staff to
further assist and support the sales and marketing program which will be
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 been represented at several trade conferences in both the United
States and Europe. We anticipate participating in other trade shows and
presenting the product to other companies in 2003.

**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.

     The materials for our high precision manufacturing are obtained from
various suppliers based on individual project specifications. Our customers
often provide the materials or recommend the suppliers for their projects.

**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
#6,248,231was 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.

                                       7
**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.

     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.

                                       8
**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.

     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.

**Research and development**

     In our past two fiscal years, we have spent approximately $443,000 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.

**Employees**

     We have four employees.  All of these employees work full-time. We have two
administrative employees, Alberto Di Bella and John A. Di Bella. The balance of
our employees participates 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.

                                       9
**PART II

Item 5.  Market for Common Equity and Related Stockholder Matters**

     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 beginning March 31, 2001 and
ending December 31, 2002. On April 11, 2003, the closing price for our common
stock was $1.40. 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, 2001                  $1.43              $0.81
         June 30, 2001                   $1.20              $0.70
         September 30, 2001              $0.94              $0.21
         December 31, 2001               $0.30              $0.16
         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

     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, 2002, there were approximately 789 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
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.

                                       10
**Other Stockholders Matters**

     During 2001, we received $100,000 from an investor. We received an executed
subscription agreement in December 2002 and will issue the investor 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
$4.00 per share. The warrants expire April 2004. The transaction was exempt from
registration under Section 4(2) of the Securities Act.

     During the year ended December 31, 2002, we sold 5.17 units of securities
at $60,000 per unit in a private placement to 5 investors. 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 our
Company aggregated $286,000. The warrants are exercisable from the date of
issuance through December 2007. No warrants have been exercised through December
31, 2002. The transaction was exempt from registration under Section 4(2) of the
Securities Act.

     On January 17, 2002, we issued options to purchase 2,000,000 shares of our
common stock at an exercise price of $.15 per share. The market price at the
date of the grant was $.12 per share. These options were issued pursuant to an
employment agreement. In addition, during year ended December 31, 2002, we also
issued stock options to purchase 200,000 shares of common stock to an additional
employee of our Company. These options have an exercise price of $.77 per share.

     On December 31, 2002, we issued 6,000,000 shares of common stock to Alberto
DiBella pursuant to the automatic conversion rights of the preferred stock held
by Mr. DiBella. The 6,000,000 shares of preferred stock held by Mr. DiBella were
returned to treasury and cancelled.

     In January 2003, we issued warrants to purchase an aggregate of 310,000
shares of common stock exercisable at $1.00 per share. The warrants were issued
pursuant to two separate employment agreements.

     In February 2003, we extended the exercisable life of certain warrants
issued in 2000 for a period of one year. The warrants now expire on in February
2004.

     In February and March of 2003, we sold 1.05 units of securities to three
investors. Each unit consisting of 100,000 shares of 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. The transaction was exempt from registration under Section 4(2) of
the Securities Act.

                                       11
**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, 2002 and 2001**

     ContractRevenue. Our contract revenue increased by 15% to $46,000 for the
year ended December 31, 2002 from $54,000 for the year ended December 31, 2001.
The change was due to fewer manufacturing contracts in 2002. The Company does
not solicit high precision manufacturing contracts but does receive orders from
previous clients. Product sales increased $37,000 or 100% as we sold two
machines in 2002. We have focused our efforts and resources to the
manufacturing, assembling, marketing and selling of the Voraxial Separator, as
such, revenues were generated from the Voraxial Separator in 2002. We do expect
revenues from the Voraxial Separator to increase in 2003 with the implementation
of a comprehensive sales and marketing program.

**General and administrative expenses**

     General and Administrative expenses decreased by 18% to $335,000 for the
year ended December 31, 2002 from $408,000 for the year ended December 31, 2001.
The decrease was due to consolidation of administrative efforts, which included
decrease in personnel related to Florida Precision that were offset by an
increase in personnel related to the applications of the Voraxial Separator. We
have reduced the expense allocated towards high precision machining and focused
a majority 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.

**Research and development expenses**

     Research and Development expenses increased 99% to $295,000 for the year
ended December 31, 2002 from $148,000 in 2001. This increase was due to our
continuing efforts to expand the applications of the Voraxial Separator line.

                                       12
**Other Income**

     Other income decreased 98% to $9,000 from $516,000. This decreased is
attributable to the sale of our building in 2001 resulting in a gain of
approximate $566,000.

**Liquidity and capital resources**

     In the year ended December 31, 2002 our working capital decreased by
$157,000 from December 31, 2001. This decrease was represented by a decrease in
cash of $156,000, decrease in Inventory of $4,000 and an increase in current
liabilities of $105,000. Operating at a loss for the year negatively impacted
our cash position; however the financing 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, 2002, we sold 5.17 units of securities
at $60,000 per unit in a private placement. 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 our
Company aggregated $286,000. The warrants were exercisable at date of issuance
through December 2007. No warrants have been exercised through December 31,
2002.

     In February and March of 2003, we sold 1.05 units of securities. Each unit
consisting of 100,000 shares of 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.

**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 2003, 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.

                                       13
**New Accounting Standards**

     During 2001, the Financial Accounting Standards Board issued SFAS No. 141
"Business Combinations", SFAS No. 142 "Goodwill and Other Intangible Assets",
SFAS No. 143 "Accounting for Asset Retirement Obligations" and SFAS No. 144
"Accounting for the Impairment or Disposal of Long-Lived Assets to be Disposed
Of." SFAS No. 141, 142 and 144 as they relate to the Company are effective
beginning January 1, 2002. SFAS No. 143 is effective beginning January 1, 2003.

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

**Critical Accounting Policies**

     The Company's financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America.
Certain accounting policies have a significant impact on amounts reported in
financial statements. A summary of those significant accounting policies can be
found in Note B to the Company's financial statements. The Company has not
adopted any significant new accounting policies other than those disclosed
during the period ended December 31, 2002. Among the significant judgments made
by management in the preparation of the Company's financial statements is the
determination of inventory valuation. Such adjustments are made each period in
the ordinary course of accounting.

**Item 7.  Financial Statements**

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

                                       14

                        ENVIRO VORAXIAL TECHNOLOGY, INC.
                                 AND SUBSIDIARY

                        CONSOLIDATED FINANCIAL STATEMENTS

                                December 31, 2002

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Contents

                                                                           Page
                                                                           ----

Consolidated Financial Statements

   Independent auditors' report                                             F-1

   Balance sheet as of December 31, 2002                                    F-2

   Statements of operations for the years ended
       December 31, 2002 and 2001                                           F-3

   Statements of stockholders' equity for the years ended
       December 31, 2002 and 2001                                           F-4

   Statements of cash flows for the years ended
       December 31, 2002 and 2001                                           F-5

   Notes to financial statements                                            F-6

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, 2002 and the
related consolidated statements of operations, stockholders' equity and cash
flows for the years ended December 31, 2002 and 2001. 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, 2002, and the consolidated
results of their operations and their consolidated cash flows for the years
ended December 31, 2002 and 2001, 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 and has a
working capital deficit and sustained 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 4, 2003

                                      F-1

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Balance Sheet
December 31, 2002

ASSETS
Current assets:
   Cash and cash equivalents                                    $     167,000
   Accounts receivable                                                 10,000
   Inventory                                                           71,000
   Other current assets                                                 5,000
                                                                -------------

        Total current assets                                          253,000

Property, plant and equipment, net                                     78,000

Other assets                                                            5,000
                                                                -------------

                                                                $     336,000
                                                                =============

LIABILITIES
Current liabilities:
   Current portion of obligations under capital leases          $      35,000
   Accounts payable and accrued expenses                              246,000
                                                                -------------

        Total current liabilities                                     281,000

Obligations under capital leases, less current portion                 10,000
                                                                -------------

        Total liabilities                                             291,000
                                                                -------------

Commitments and contingency

STOCKHOLDERS' EQUITY
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;
       13,987,634 shares issued
      and outstanding, 100,000 shares issuable                         14,000
Additional paid-in capital                                          1,740,000
Accumulated deficit                                                (1,709,000)
                                                                -------------

        Total stockholders' equity                                     45,000
                                                                -------------

                                                                $     336,000
                                                                =============

    Attention is directed to the accompanying notes to financial statements

                                      F-2

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Operations

                                                           Year Ended December 31,
                                                            2002            2001

Contract revenue (Note C)                              $      46,000   $      54,000
Product sales (Note C)                                        37,000
                                                       -------------

      Total revenue                                           83,000          54,000
                                                       -------------    ------------

Costs and expenses:
   Cost of contract revenue                                    4,000          49,000
   Cost of sales                                              14,000
   General and administrative                                335,000         408,000
   Research and development                                  295,000         148,000
                                                       -------------   -------------

      Total costs and expenses                               648,000         605,000
                                                       -------------   -------------

Loss before other expense (income)                          (565,000)       (551,000)
                                                       -------------   -------------

Other expense (income):
   Interest expense                                           10,000          51,000
   Other income (Note H)                                      (9,000)       (516,000)
                                                       -------------   -------------

      Total other expense (income)                             1,000        (465,000)
                                                       -------------   -------------

Net loss                                               $    (566,000)  $     (86,000)
                                                       =============   =============

Basic and diluted loss per common share                   $(0.08)          $(0.01)
                                                          ======           ======

Weighted average number of common shares outstanding       7,509,000       7,435,000
                                                       =============   =============

    Attention is directed to the accompanying notes to financial statements

                                      F-3

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Stockholders' Equity

                                  Preferred Stock           Common Stock   Additional
                                              Par      Paid-in               Paid-in   Accumulated
                                  Shares     Value      Shares   Par Value   Capital     Deficit        Total
                                 ---------  -------  ---------   -------  -----------  -----------  ----------
Balance, December 31, 2000       6,000,000  $6,000   7,407,118   $ 7,000   $1,276,000  $(1,057,000) $  232,000
Issuance of common stock
  at $.85 per share                                     23,530                 20,000                   20,000
Issuance of common stock at
  market value for services
  rendered                                              40,320                 35,000                   35,000
Services provided by founder
  at estimated fair value                                                      12,000                   12,000
Net loss for the year ended
  December 31, 2001                                                                        (86,000)    (86,000)
                                 ---------  -------  ---------   -------  -----------  -----------  ----------

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 F)                                    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 F)                      (6,000,000) (6,000)  6,000,000    6,000
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
                                ==========  ======= ==========   =======  ===========  ===========  ==========

    Attention is directed to the accompanying notes to financial statements

                                      F-4

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

                                                                 Year Ended December 31,
                                                                  2002             2001
                                                            ---------------  -------------

Cash flows from operating activities:
   Net loss                                                 $      (566,000) $     (86,000)
   Adjustments to reconcile net loss to net
    cash used in operating activities:
      Depreciation                                                   45,000        105,000
      Common stock issued for services                                              35,000
      Net gain on sale of property, plant and equipment                           (481,000)
      Services provided by founder without renumeration              12,000         12,000
      Changes in:
        Accounts receivable                                           1,000        (11,000)
        Inventory                                                     4,000
        Other assets                                                                (8,000)
        Accounts payable and accrued expenses                        93,000         19,000
                                                            ---------------  -------------

           Net cash used in operating activities                   (411,000)      (415,000)
                                                            ---------------  -------------

Cash flows from investing activity:
   Proceeds from sale of property, plant and equipment                           1,192,000
                                                                             -------------

Cash flows from financing activities:
   Net proceeds from issuance of common stock                       286,000         20,000
   Repayments of mortgage note payable                                            (408,000)
   Repayment of advances from stockholder                                         (275,000)
   Repayments of obligations under capital leases                   (31,000)       (24,000)
   Advances from investor                                                          100,000
                                                            ---------------  -------------

           Net cash provided by (used in)
            financing activities                                    255,000       (587,000)
                                                            ---------------  -------------

Net (decrease) increase in cash and cash equivalents               (156,000)       190,000
Cash and cash equivalents, beginning of year                        323,000        133,000
                                                            ---------------  -------------

Cash and cash equivalents, end of year                      $       167,000  $     323,000
                                                            ===============  =============

Supplemental disclosure of cash flow information:
   Cash paid for interest                                   $        10,000  $      72,000

Supplemental disclosure of noncash investing and
  financing activity:

   Issuance of 100,000 common shares at $1 per
    share in settlement of amount due to investor           $       100,000

   Issuance of 6 million common shares upon
    conversion of 6 million preferred shares (Note F)      $             0

    Attention is directed to the accompanying notes to financial statements

                                      F-5

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2002

NOTE A - ORGANIZATION AND OPERATIONS

Enviro Voraxial Technology, Inc. (the "Company") is a provider of environmental
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 include
oil/water separation, environmental cleanup and the separation of industrial
chemicals.

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, resulting in commercially accepted products. The Company will
continue to require the infusion of capital until operations become profitable.
During 2003, 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.
These financial statements make no adjustment to the classification or amount of
assets or liabilities that may be necessary as a result of the going concern
uncertainty.

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

                                      F-6

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

[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                  1,486,531
           Stock options             2,245,000
                                 -------------

                                     3,731,531
                                 =============

The stock option amount 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 expires in the
third quarter of 2003.

[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.

[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.

[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,
2002.

                                      F-7

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

[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 quoted market prices for
similar issues.

[11] Advertising costs:

Advertising costs, which amounted to $11,000 in 2002, are expensed as incurred.
There were no advertising costs incurred during the year ended December 31,
2001.

[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.

                                                                Year Ended December 31,
                                                                 2002             2001

 Reported net loss                                          $    (566,000)    $    (86,000)
 Stock-based employee compensation expense included in
    reported net loss, net of related tax effects                       -                -
 Stock-based employee compensation determined under the
    fair value based method                                      (114,000)          (1,000)
                                                            --------------    --------------

 Pro forma net loss                                         $    (680,000)    $    (87,000)
                                                            ==============    ==============

 Basic and diluted loss per common share:
    As reported                                                 $(0.08)          $(0.01)
                                                                ======           ======
    Pro forma                                                   $(0.09)          $(0.01)
                                                                ======           ======

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 2002 and 144%
for 2001, expected life of options of 5 years, risk free interest rate of
2.95%-4.34% in 2002 and 4% in 2001 and a dividend yield of 0%. The weighted
average fair value of options granted during the years ended December 31, 2002
and 2001 was $.09 and $.21, respectively.

[13] Recent accounting pronouncements:

In June 2001, the Financial Accounting Standards Board issued No. 141,
"Accounting for Business Combinations" and SFAS No. 142, "Accounting for
Goodwill and Other Intangible Assets" effective for fiscal years beginning after
December 15, 2001. Under SFAS No. 141, a company must use the purchase method of
accounting for all business acquisitions. Under SFAS No. 142, goodwill and
intangible assets deemed to have indefinite lives will no longer be amortized
but will be subject to annual impairment tests in accordance with the
statements. The adoption of these standards is expected to have no effect on the
Company's financial statements.

                                      F-8

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

[13] Recent accounting pronouncements: (continued)

In August 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets". This statement superseded SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of" and addresses financial accounting and reporting for impairment
of long-lived assets to be held and used, and long-lived assets and components
of an entity to be disposed of. The Company adopted this statement on January 1,
2002.

In November 2002, the FASB issued Interpretation No. 45 ("FIN 45"), "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others". FIN 45 clarifies the requirements of SFAS
No. 5, "Accounting for Contingencies", relating to a guarantor's accounting for,
and disclosure of, the issuance of certain types of guarantees. For certain
guarantees issued after December 31, 2002, FIN 45 requires a guarantor to
recognize, upon issuance of a guarantee, a liability for the fair value of the
obligations it assumes under the guarantee. Guarantees issued prior to January
1, 2003, are not subject to liability recognition, but are subject to expanded
disclosure requirements. The Company does not believe that the adoption of this
Interpretation will have a material impact on its financial position or
statement of operations.

In January 2003, FASB issued FIN 46, an interpretation of Accounting Research
Bulletin No. 51. FIN 46, requires firms to consolidate variable interest
entities for which they are deemed to be the primary beneficiary and disclose
information about variable interest entities in which they have a significant
variable interest. FIN 46 became effective immediately for variable interest
entities formed after January 31, 2003 and will become effective in the third
quarter of 2003 for any variable interest entities formed prior to February 1,
2003. The adoption of this standard is expected to have no material effect on
the Company's financial statements.

NOTE C - CONCENTRATION OF CREDIT RISK

Four customers accounted for 35%, 27%, 15% and 13% of total revenue for the year
ended December 31, 2002. Three customers accounted for 37%, 33%, and 16% of
total revenue for the year ended December 31, 2001.

NOTE D - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of December 31, 2002 consists of:

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

                                                      375,000
       Less accumulated depreciation                  297,000
                                                 ------------

       Net property, plant and equipment         $     78,000
                                                 ============

Included in depreciation expense for the year ended December 31, 2002 is
amortization of equipment under capital leases of $19,000. Accumulated
depreciation relating to equipment under capital leases aggregated $111,000 as
of December 31, 2002. Net book value of equipment under capital leases amounted
to $76,000 as of December 31, 2002.

                                      F-9

NOTE D - PROPERTY, PLANT AND EQUIPMENT  (CONTINUED)

During 2001, the Company sold its building and related land (Note H). In
connection therewith, the Company paid off the mortgage payable of $408,000 and
amounts due stockholder of $275,000 with the proceeds received from the sale.
The Company leased a new facility in Ft. Lauderdale, Florida (Note I).

NOTE E - OBLIGATIONS UNDER CAPITAL LEASES

As of December 31, 2002, the future minimum lease payments under capital leases
are as follows:

       Year Ending
       December 31,

         2003                                    $    38,000
         2004                                         11,000
                                                 -----------

                                                      49,000
         Less amount representing interest            (4,000)
                                                 -----------

                                                      45,000
         Due within one year                          35,000
                                                 -----------

         Due after one year                      $    10,000
                                                 ===========

NOTE F - CAPITAL TRANSACTIONS

Common stock:

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.

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 2003.

During the year ended December 31, 2001, the Company sold 23,530 shares of
common stock at $.85 per share. In addition, the Company issued 40,320 shares of
common stock valued at $.81 per share for consulting services rendered to the
Company.

                                      F-10

NOTE F - CAPITAL TRANSACTIONS (CONTINUED)

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 automatically converted
into common stock on a one-for-one share basis.

Options:

Stock option transactions for employees during 2002 and 2001 were as follows:

                                                                      Exercise   Weighted Average
                                                                     Price Per   Exercise Price
                                      Options         Vested          Common       Per Option
                                    Outstanding       Shares           Share      Outstanding

  Balance, January 1, 2001                    0               0
  Granted/vested during the year         45,000               0        $.30          $0.30
                                  -------------   -------------

  Balance, December 31, 2001             45,000               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
                                  =============   =============

Information with respect to employee stock options outstanding and employee
stock options exercisable at December 31, 2002 is as follows:

                                       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

       $0.15         2,000,000           4.55          $0.15    1,000,000     $0.15
       $0.30            45,000           2.87          $0.30       15,000     $0.30
       $0.77           200,000           5.13          $0.77      100,000     $0.77

Warrants:

       Balance, January 1, 2001 and December 31, 2001  $     243,200
       Issued                                              1,243,331
                                                        ------------

       Balance, December 31, 2002                      $   1,486,531
                                                       =============

121,600 warrants exercisable at $6.00 per share and 121,600 warrants exercisable
at $9.00 per share previously expiring on February 11, 2003 have been extended
to February 11, 2004.

                                      F-11

NOTE G - INCOME TAXES

The significant components of the Company's deferred tax asset and liabilities
as of December 31, 2002 are as follows:

       Deferred income tax assets:
          Net operating losses carryforwards                  $    623,000
          Tax credits                                               64,000
                                                              ------------

       Deferred income tax liabilities:
          Depreciation                                              (7,000)
                                                              ------------

                                                                   680,000
       Valuation allowance                                        (680,000)
                                                              ------------

       Net deferred tax asset                                 $          0
                                                              ============

The significant components of the benefit for income taxes for the years ended
December 31, 2002 and 2001 are as follows:

                                                2002           2001

       Deferred:
          Federal                          $    160,000    $    261,0000
          State                                  22,000           46,000
          Change in valuation allowance        (182,000)        (307,000)
                                           ------------    -------------

             Total deferred income taxes   $          0    $          0
                                           ============    =============

During 2001, the Company utilized approximately $90,000 of net operating losses
to offset taxable income of the same amount. As of December 31, 2002, the
Company has net operating loss carryforwards of approximately $1,655,000 for
federal income tax purposes, which expire through 2022.

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:

                                                2002          2001

       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 %
                                            ========      ========

NOTE H - OTHER INCOME

For 2002, other income consists of rental income from pilot programs relating to
the voraxial separator. For 2001, other income consists of rental income from
the sublease of office space of $33,000 on a month-to-month basis, a loss on
sale of equipment of $85,000, and a gain on sale of real estate of $566,000.

                                      F-12

ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2002

NOTE I - COMMITMENTS AND CONTINGENCY

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
employee was granted stock options to purchase 2 million shares of common stock
with an exercise price of $.15 per share. The market price at the date of grant
was $.12 per share.

In addition, in 2002 the Company also issued stock options to purchase 200,000
shares of common stock to another employee with an exercise price of $0.77 per
share.

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, 2002 are as follows:

       Year Ending
       December 31,

         2003                $     44,000
         2004                      30,000
                             ------------

                             $     74,000
                             ============

Rent expense charged to operations amounted to $63,000 and $15,000 in 2002 and
2001, respectively.

Other matter:

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

NOTE J - SUBSEQUENT EVENTS

Common stock:

In February and March of 2003, the Company sold 1.05 units of securities. Each
unit consisting of 100,000 shares of 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.

Employment contracts:

The Company hired two employees under employment agreements that commence 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 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.

                                      F-13

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

         None.

                                       15
**PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons

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

     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.

**Key employees**

     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
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.

     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.

                                       16
**Committees**

     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.

**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 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, 2002.

                           SUMMARY COMPENSATION TABLE
                              Annual Compensation

Name                    Year           Salary         Bonus       Other
----                    ----           ------         -----       -----

Alberto DiBella         2000            ---            ---         ---
                        2001            ---            ---         ---
                        2002            ---            ---         ---

     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.

                                       17
**Stock options**

     During fiscal year 2002, there were no option or SAR grants to any of our
executive officers or directors.

**Option exercises and holdings**

     To date, we have not issued any options or SARs to any of our executive
officers or directors.

**Employment agreements***Alberto DiBella*, our chief executive officer, president and chairman did
not receive compensation for 2000, 2001 or 2002. However, the Company has
recorded a charge $12,000 to reflect the fair value of services rendered to the
Company in 2002 and 2001.

     *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 $150,000 per year,
payable monthly.

     *Frank J. 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.

**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 March 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.

                                       18

     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                     8,872,000                63%
3500 Bayview Drive
Fort Lauderdale, FL  33308

All officers and directors          8,872,000                63%
as a group (1 person)

(1)  Alberto DiBella's beneficial share ownership includes 10,000 shares of
common stock owned by his wife.
*Equity Compensation Plan (not approved by shareholders)*

Information with respect to employee stock options outstanding and employee
stock options exercisable at December 31, 2002 is as follows:

                                Weighted                            Weighted
           Number               Average                             Average
         Outstanding            Exercise            Number          Exercise
         At 12/31/02             Price           Exercisable         Price
         -----------           ---------         -----------       ---------

          2,245,000              $0.21            1,115,000          $0.21

**Item 12. Certain Relationships and Related Transactions**

     On October 20, 1997, our Chairman, Alberto DiBella, agreed to contribute
5,000,000 shares of common stock to our treasury which shares were cancelled in
consideration for the issuance to him of 6,000,000 shares of our preferred
stock. Subject to adjustment, the preferred stock issued to Mr. DiBella is
convertible into common stock, on a one share for one share basis, in an amount
not greater than 1,200,000 shares per year commencing January 1, 1998, for each
revenue increase of $10,000,000 over the revenues of the prior year. The shares
of preferred stock converted into 6,000,000 shares of common stock pursuant to
their terms on December 31, 2002.

**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*
      10          Mortgage Note*
      21          Subsidiaries*
      99.1        Certification

*Previously filed

                                       19
**Item 14. Controls and Procedures

Evaluation of disclosure controls and procedures**

     Within the 90 days prior to the filing date of this report, the Company
carried out an evaluation of the effectiveness of the design and operation of
its disclosure controls and procedures pursuant to Exchange Act Rule 13a-14.
This evaluation was done under the supervision and with the participation of the
Company's Principal Executive Officer and Principal Financial Officer. Based
upon that evaluation, he concluded that the Company's disclosure controls and
procedures are effective in gathering, analyzing and disclosing information
needed to satisfy the Company's disclosure obligations under the Exchange Act.

**Changes in internal controls**

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

                                       20
**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 15, 2003.

                                            **ENVIRO VORAXIAL TECHNOLOGY, INC.**

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

                                       21
**CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

     In  connection with the accompanying Annual Report of ENVIRO VORAXIAL
TECHNOLOGY, INC. (the "Registrant") on Form 10-KSB for the year ending December
31, 2002, as filed with the Securities and Exchange Commission on the date
hereof (the "Annual Report"), I, ALBERTO DIBELLA, Principal Executive Officer
and Principal Financial Officer of the Registrant, certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, to the best of my knowledge, that:

1.       I have reviewed this Annual Report;
2.       Based on my knowledge, this Annual Report does not contain any untrue
         statement of material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances under which
         such statements were made, not misleading with respect to the period
         covered by this Annual Report;
3.       Based on my knowledge, the financial statements, and other financial
         information included in this Annual Report, fairly present in all
         material respects the financial condition, results of operations and
         cash flows of the registrant as, and for the periods presented in this
         Annual Report;
4.       I am  responsible for establishing and maintaining disclosure controls
         and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for
         the Registrant and have:
         a)       designed such disclosure controls and procedures to ensure
                  that material information relating to the Registrant,
                  including its consolidated subsidiaries, to the extent
                  applicable, is made known to me by others within those
                  entities, particularly during the period in which this Annual
                  Report is being prepared;
         b)       evaluated the effectiveness of the Registrant's disclosure
                  controls and procedures as of a date within 90 days prior to
                  the filing date of this Annual Report (the "Evaluation Date");
                  and
         c)       presented in this Annual Report my conclusions about the
                  effectiveness of the disclosure controls and procedures based
                  on my evaluation as of the Evaluation Date;

                                       22

5.       I have disclosed, based on my most recent evaluation, to the
         Registrant's auditors and the audit committee of Registrant's board of
         directors (or persons performing the equivalent functions):
         a)       all significant deficiencies in the design or operation of
                  internal controls which could adversely affect the
                  Registrant's ability to record, process, summarize and report
                  financial data and have identified for the Registrant's
                  auditors any material weaknesses in internal controls; and
         b)       any fraud, whether or not material, that involves management
                  or other employees who have a significant role in the
                  Registrant's internal controls; and
6.       I have indicated in this Annual Report whether or not there were
         significant changes in internal controls or in other factors that
         could significantly affect internal controls subsequent to the date of
         my most recent evaluation, including any corrective actions with regard
         to significant deficiencies and material weaknesses.

By:      /s/ALBERTO DIBELLA
         ------------------
         Alberto DiBella
         Principal Executive Officer and
         Principal Financial Officer
         April 15, 2003

                                       23
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