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, 2001

                         Commission file number 0-27445


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


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


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


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

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


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

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


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

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

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

State issuer's revenues (net loss) for its most recent fiscal year. $ (86,000)

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 ($0.88 as of April 11, 2002). $2,495,142.


<PAGE>
                    APPLICABLE ONLY TO CORPORATE REGISTRANTS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: March 31, 2002: 7,470,968 Shares of
Common Stock and 6,000,000 Shares of Preferred Stock.

                       DOCUMENTS INCORPORATED BY REFERENCE

- None -

Transitional Small Business Disclosure Format (Check One)

Yes [ ]        No [X]





<PAGE>
                                Table of Contents
<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----
<S>           <C>                                                               <C>
PART I

Item 1.       Description of Business                                            1

Item 2.       Description of Property                                            7

Item 3.       Legal Proceedings                                                  7

Item 4        Submission of Matters to a Vote of Security Holders                7

PART II

Item 5.       Market for Common Equity and Related Stockholder Matters           8

Item 6.       Management Discussion and Analysis of Financial Condition and
              Plan of Operations                                                 9

Item 7.       Financial Statements                                              11

Item 8.       Changes in and Disagreements With Accountants on Accounting and
              Financial Disclosure                                              11

PART III

Item 9.       Directors, Executive Officers, Promoters and Control Persons;
              Compliance With Section 16(a) of the Exchange Act                 12

Item 10.      Executive Compensation                                            12

Item 11.      Security Ownership of Certain Beneficial Owners and Management    13

Item 12.      Certain Relationships and Related Transactions                    14

Item 13.      Exhibits, Lists and Reports on Form 8-K                           15
</TABLE>

<PAGE>
PART I

Item 1.  Description of Business

Our history

         We were 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 plan, 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

         Enviro Voraxial Technology, Inc. (the "Company") is a growing leader in
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 gravity. This separation quality is achieved with
a smaller, lighter and more energy efficient machine than comparable products on
the market today that is capable of processing low throughputs up to over 10,000
gallons per minute. The Company believes the Voraxial Separator technology can
help protect the environment and its natural resources while simultaneously make
industry more productive.

         As a result of the size and efficiency advantages that the Voraxial
Separator solution presents to the end user, it has created a myriad of market
opportunities for the Company. While revenues have been limited to date,
primarily in the form of trial programs, the Company is presently marketing
Voraxial Separator solutions for the energy drilling, sewage, marine/oil-spill,
and waste-to-energy industries. As companies in these industries seek to develop
greater advantages or differentiators, the Voraxial Separator will enable them
to dramatically increase their productivity while decreasing their costs.

         Additionally, the Company expects market opportunities to present
themselves as a result of increased government regulations and standards
enforced by the Environmental Protection Agency ("EPA").

                                       1
<PAGE>
Business

         The Company has concentrated its efforts on a proprietary technology
that has been incorporated into a patented device known as the Voraxial
Separator and has begun increasing the awareness of major equipment
manufacturers and end-users throughout various industrial sectors as described
earlier.

         In the past year, the Company has been involved in discussions with
several large companies and government agencies that are involved in the
development, manufacturing, and sales 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 many
different industries can utilize and benefit from the Voraxial Separator, the
Company is focusing its efforts on a few key opportunities, including energy
drilling, sewage, oil spill and waste to energy markets throughout the US,
Europe, Middle East, and South America.

         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.

         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 that substantial
revenues will begin to be generated from the Voraxial Separator.

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

                                       2
<PAGE>
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.

         Unique in its design, 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:
<TABLE>
<CAPTION>
                                    PRODUCT AND CAPACITY RANGE

        Model               Diameter                Capacity Range                 Weight
        Number                Size                Gallons Per Minute              In Pounds
        ------              --------              ------------------              ---------
<S>      <C>               <C>                       <C>                              <C>
         1000              1 inch                    5-16                             11
         2000              2 inches                  25-100                           20
         4000              4 inches                  300-900                          65
         8000              8 inches                  2,000-6,000                     208
         1600              16 inches                 20,000-50,000                   400
         3200              32 inches                 130,000-150,000                 800
</TABLE>
         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 2001, we have
furthered tested, demonstrated and delivered on a trial basis the Voraxial
Separator units to many companies within various industries including energy
production, sewage, oil spill, and waste-to-energy. The Company has 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 and water separation,
sewage treatment, sludge removal, manufacturing, wood pulp removal for paper
manufacturers, harbor clean-up, deballasting of ships, flood control, farm
irrigation, lake and river revitalization, cooling and aeration of thermally
polluted waters, clean up of contaminated beaches and plasma separation. We also
believe that the separator can be used to recycle water. 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 separation technology is
global in scale. Virtually every industry requires some type of separation
process either during the manufacturing process or prior to discharging the
water into the environment. A short list of just some of the areas where

                                       3
<PAGE>
separation technology is employed is: oil production, oil remediation services,
municipal sewage treatment, bilge water purification, metal finishing,
manufacturing, agricultural production, dredging, coal pond clean-up, removing
of organic material from salt and fresh water environments, and numerous other
industrial production and environmental remediation processes.

         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.

         Units of the Voraxial Separator have been shipped in the past on a
trial basis to many different companies that include a wide range of industrial
applications. Additional requests have been made by some of these businesses for
delivery of larger models to conduct additional testing. The Company continues
to strive in building awareness of the superior separation capabilities 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.

Anticipated Business of the Company

         In fiscal year 2002 management intends to initially concentrate its
marketing efforts in the following industrial sectors: oil production, municipal
sewage treatment, oil spill and waste-to-energy. Industry-wide acceptance in any
of these specific sectors could imply extensive marketing and sales
opportunities on a global scale. The Company is currently in discussions with
companies in one or more of these areas either domestically and/or
internationally. Currently, interests have been expressed by companies, which
collectively have operations in North America, South America, Europe, the Middle
East, Australia, and the Virgin Islands.

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.

         Florida Precision 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.

                                       4
<PAGE>
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.

         We have executed Sales and Marketing Agreements and Distributorship
Agreements that have enabled us to promote our Voraxial Separator within various
industries and countries. 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 2002.

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.

                                       5
<PAGE>
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 substantial 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.

                                       6
<PAGE>
         The aerospace industry is highly regulated in the U.S. by the FAA and
is regulated in other countries by similar agencies to ensure that aviation
products and services meet stringent safety and performance standards. The FAA
prescribes standards and licensing requirements for aircraft components. Because
we assemble to meet specifications and designs created by our customers, we are
not required to obtain any licenses or approvals from the FAA.

Product liability

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

Research and development

         In our past two fiscal years, we have spent approximately $283,000 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
one administrative employee, Alberto Di Bella and a full-time marketing
consultant, 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

         On October 9, 2001, the Company sold the land and building located at
98 Southeast 7th Street, Deerfield Beach, Florida. The sale price was $1,200,000
and the Company's adjusted basis was $551,000. The Company has entered into a
three (3) year lease for an office and manufacturing facility located at 821 NW
57th Place, Fort Lauderdale, FL 33309. 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.

                                       7
<PAGE>
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, 2000 and
ending December 31, 2001. On April 11, 2002, the closing price for our common
stock was $0.88. The quotations reflect inter-dealer prices, without retail
mark-up, mark-down or commission, and may not represent actual transactions.

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

         Period                                    High                  Low
         ------                                    ----                  ---

         Quarter Ended:
              March 31, 2000                       $4.25                 $2.13
              June 30, 2000                        $3.75                 $1.50
              September 30, 2000                   $4.06                 $1.44
              December 31, 2000                    $1.84                 $0.75
              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

         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, 2001, 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.


                                       8
<PAGE>
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 registration statement, we have no intention
to declare dividends.

Other Stockholders Matters

         In 2001, we raised $120,000 through two private placements of our
securities through the following two transactions:

         In April 2001, we raised $100,000 through the private placement of our
securities pursuant to Regulation D of the Securities Act. We sold 1,000 units
containing share of our common stock and warrants to 1 investor. Each unit was
comprised of 100 shares of restricted common stock, par value $.001, and 200
common stock purchase warrants, of which 100 warrants are exercisable at $3.00
per share and 100 warrants are exercisable at $4.00 per share.

         In July 2001, we raised $20,000 through a private transaction whereby
the Company issued 23,530 shares of restricted common stock at $.85 per share to
an individual investor.

         The above transactions were exempt from registration under Section 4(2)
of the Securities Act.

         In February 2002, the Company extended the exercisable life of its
warrants issued in 2000 for a period of one year.

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.

                                       9
<PAGE>
Year ended December 31, 2001 and 2000

         Contract Revenue. Our contract revenue decreased by 72% to $54,000 for
the year ended December 31, 2001 from $195,000 for the year ended December 31,
2000. The decrease was due to the limited contract revenue from the high
precision manufacturing business. New customer orders for machine work were at a
minimum and efforts were focused on marketing of the Voraxial Separator. We have
focused our efforts and resources to the building, assembling, marketing and
selling of the Voraxial Separator, which has caused a reduction in revenue
generated from high precision manufacturing. We do expect revenue from the
Voraxial Separator to increase in 2002 from 2001. Backlog as of April 5, 2002
was $20,000.

General and administrative expenses

         General and Administrative expenses decreased by 11% to $408,000 for
the year ended December 31, 2001 from $460,000 for the year ended December 31,
2000. 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 are reducing the expense allocated towards high precision machining and
focusing 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.

Liquidity and capital resources

         In the year ended December 31, 2001 our working capital increased by
$368,000 from December 31, 2000. This increase was represented by an increase in
cash of $190,000, increase of Accounts Receivable of $11,000, increase in other
assets of $5,000, and a decrease in current liabilities of $162,000. Operating
at a loss for the year negatively impacted our cash position; however the sale
of land, buildings and excess equipment used in high precision machine work
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.

         In 2001, we raised $120,000 through two separate private placements of
our securities pursuant to Regulation D of the Securities Act. Additional
funding will eventually be necessary to expand marketing programs and specific
applications for the Voraxial Separator.

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

                                       10
<PAGE>
experienced in our prior years. In light of these recent developments, we may be
unable to continue as a going concern. However, we believe that the exposure
received in the past year for the Voraxial Separator has positioned the Company
to begin generating sales and supply us with sufficient working capital.

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.

Item 7.  Financial Statements

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

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

         There have been no disagreements with Richard A. Eisner & Company.










                                       11
<PAGE>
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               71             President, 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. Mr.
DiBella holds no directorships in any reporting companies.

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, 2001. We did not grant any
stock options, restricted stock awards or stock appreciation rights or make any
long-term incentive plan payments during 2001.

                           SUMMARY COMPENSATION TABLE
                               Annual Compensation

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

Alberto DiBella            1999          ---            ---          ---
                           2000          ---            ---          ---
                           2001          ---            ---          ---






                                       12

<PAGE>
         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. There is no
market for this class of securities at this time. We have valued the preferred
shares assuming that they will all become eligible for conversion into an equal
number of common shares. The preferred shares are convertible at a premium of
1.2:1 if certain conditions are met (see below). If that were to occur, there
may be a charge to operations for compensation. Since 1997, Mr. DiBella failed
to earn the premium and 800,000 shares reserved for issuance upon conversion of
the preferred stock were cancelled.

         The preferred stock issued to Mr. DiBella is convertible into common
stock, at a premium of 1.2:1, in an amount not greater than 1,200,000 shares per
year for each revenue increase of $10,000,000 over the revenues of the prior
year. If the revenue increase is not $10,000,000 the conversion shall be one for
one. Any shares of preferred stock, which have not been converted by Mr. DiBella
before December 31, 2002, are automatically converted into shares of common
stock on a share-for-share basis.

Employment agreements

         Alberto DiBella, our chief executive officer, president and chairman
currently does not have an employment contract and did not receive compensation
for 1999, 2000 or 2001. However, the Company has recorded a charge $12,000 to
reflect the fair value of services rendered to the Company in 2001. We intend to
enter into an employment agreement with Mr. Alberto DiBella in the future.

Stock options

         During fiscal year 2001, 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. No options or SARs were exercised or unexercised during
fiscal year 2001.

Item 11. Security Ownership of Certain Beneficial Owners and Management

         The table below sets forth information with respect to the beneficial
ownership of our securities as of December 31, 2001 by:

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

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

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

                                       13
<PAGE>
Name and Address of               Number of Shares             Percentage of
  Beneficial Owner               Beneficially Owned              Ownership
-------------------              ------------------            -------------

Alberto DiBella                        8,872,000(1)                 65.37%
3500 Bayview Drive
Fort Lauderdale, FL  33308

Howard J. Falcon, III, Ttee            1,763,579                    12.99%
For Harvey E. Richter
Irrevocable Trust of 6/26/95
400 A North Flagler Drive #2
West Palm Beach, FL  33401

All officers and directors             8,872,000                    65.37%
as a group (1 person)

(1)      Alberto DiBella's beneficial share ownership includes 10,000 shares of
         common stock owned by his wife, 10,000 shares of common stock owned by
         his daughter. It also includes 6,000,000 shares of voting convertible
         non-cumulative, 8% preferred stock, $0.001 par value. These shares are
         convertible into one share of our common stock based on incentive
         formulas, which are measured by our overall performance.

Item 12. Certain Relationships and Related Transactions

         Pursuant to our agreement and plan of reorganization with FPA, we
issued 10,000,000 shares of common stock to the shareholders of FPA. At the time
of this transaction, Alberto DiBella, our sole officer and director, was the
majority shareholder of FPA. Mr. DiBella received 7,830,000 of the 10,000,000
shares of our common stock issued in this transaction.

         From 1994 through 1999, we borrowed approximately $260,000 from our
president, Mr. Alberto DiBella, at an annual rate of eight percent (8%) with
principal payable on demand. The amount was repaid in December 2001.

         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 5,000,000 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.
Any shares of preferred stock, which have not been converted by Mr. DiBella
before December 31, 2002, shall then be automatically converted into shares of
common stock on a share-for-share basis.

                                       14
<PAGE>
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          Agreement for Preferred Shares*

*Previously filed




























                                       15
<PAGE>
                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Securities Exchange Act
of 1934, as amended, the registrant caused this report to be signed on its
behalf by the undersigned and duly authorized on April 15, 2002.

                                     ENVIRO VORAXIAL TECHNOLOGY, INC.


                                     By: /s/ Alberto DiBella
                                        -------------------------------------
                                        Alberto DiBella
                                        President and Chief Executive Officer































                                       16
<PAGE>
















                        ENVIRO VORAXIAL TECHNOLOGY, INC.
                                 AND SUBSIDIARY

                        CONSOLIDATED FINANCIAL STATEMENTS

                                December 31, 2001



<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY


Contents
<TABLE>
<CAPTION>
                                                                                                    Page
                                                                                                    ----
<S>                                                                                                  <C>
Consolidated Financial Statements

   Independent auditors' report                                                                      F-1

   Balance sheet as of December 31, 2001                                                             F-2

   Statements of operations for the years ended December 31, 2001 and 2000                           F-3

   Statements of stockholders' equity for the years ended December 31, 2001 and 2000                 F-4

   Statements of cash flows for the years ended December 31, 2001 and 2000                           F-5

   Notes to financial statements                                                                     F-6
</TABLE>



<PAGE>
INDEPENDENT AUDITORS' REPORT

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


We have audited the accompanying consolidated balance sheet of Enviro Voraxial
Technology, Inc. and subsidiary (the "Company") as of December 31, 2001 and the
related consolidated statements of operations, stockholders' equity and cash
flows for the years ended December 31, 2001 and 2000. 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, 2001, and the consolidated
results of their operations and their consolidated cash flows for the years
ended December 31, 2001 and 2000, 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
negative cash flows from operations 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.



Richard A. Eisner & Company, LLP

Florham Park, New Jersey
April 2, 2002








                                       F-1

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Balance Sheet
December 31, 2001
<TABLE>
<CAPTION>

<S>                                                                                                 <C>
ASSETS
Current assets:
   Cash and cash equivalents                                                                        $       323,000
   Accounts receivable                                                                                       11,000
   Inventory                                                                                                 75,000
   Other current assets                                                                                       5,000
                                                                                                    ---------------

        Total current assets                                                                                414,000

Property, plant and equipment, net                                                                          123,000

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

                                                                                                    $       542,000
                                                                                                    ===============

LIABILITIES
Current liabilities:
   Current portion of obligations under capital leases                                              $        32,000
   Accounts payable and accrued expenses                                                                    153,000
   Due to investor                                                                                          100,000
                                                                                                    ---------------

                                                                                                            285,000
Noncurrent liabilities:
   Obligations under capital leases                                                                          44,000
                                                                                                    ---------------

                                                                                                            329,000
                                                                                                    ---------------

Commitments

STOCKHOLDERS' EQUITY Capital stock $.001 par value:
   Preferred stock, voting, 8% noncumulative, convertible, authorized 7,250,000 shares,
      6,000,000 issued and outstanding (at liquidation value)                                                 6,000
   Common stock, authorized 42,750,000 shares; 7,470,968 shares issued
      and outstanding                                                                                         7,000
Additional paid-in capital                                                                                1,343,000
Accumulated deficit                                                                                      (1,143,000)
                                                                                                    ---------------

        Total stockholders' equity                                                                          213,000
                                                                                                    ---------------

                                                                                                    $       542,000
                                                                                                    ===============
</TABLE>






Attention is directed to the foregoing auditors' report and to the accompanying
notes to financial statements

                                       F-2


<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Operations
<TABLE>
<CAPTION>
                                                                                                   Year Ended December 31,
                                                                                               -----------------------------
                                                                                                    2001             2000
                                                                                               -------------   -------------
                                                                                               <C>             <C>
Contract revenue (Note C)                                                                      $      54,000   $     195,000
                                                                                               -------------   -------------

Costs and expenses:
   Cost of contract revenue                                                                           49,000         135,000
   General and administrative                                                                        408,000         460,000
   Research and development                                                                          148,000         135,000
                                                                                               -------------   -------------

      Total costs and expenses                                                                       605,000         730,000
                                                                                               -------------   -------------

Loss from operations before other (income) expense                                                  (551,000)       (535,000)
                                                                                               -------------   -------------

Other (income) expense:
   Interest expense                                                                                   51,000          76,000
   Other income (Note H)                                                                            (516,000)        (71,000)
                                                                                               -------------   -------------

      Total other (income) expense                                                                  (465,000)          5,000
                                                                                               -------------   -------------

Net loss                                                                                       $     (86,000)  $    (540,000)
                                                                                               =============   =============

Basic and diluted loss per common share                                                        $       (0.01)  $       (0.07)
                                                                                               =============   =============

Weighted average number of common shares outstanding                                               7,435,000       7,383,000
                                                                                               =============   =============
</TABLE>



















Attention is directed to the foregoing auditors' report and to the accompanying
notes to financial statements

                                       F-3

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Stockholders' Equity
<TABLE>
<CAPTION>

                                                                                                Additional
                                                  Preferred Stock           Common Stock         Paid-in   Accumulated
                                                Shares       Amount     Shares       Amount      Capital     Deficit      Total
                                              ----------  ----------- ----------- -----------  ----------- -----------  ---------
<S>                                            <C>        <C>           <C>       <C>          <C>         <C>          <C>
Balance, December 31, 1999                     6,000,000  $     6,000   7,285,518 $     7,000  $   912,000 $  (517,000) $ 408,000
Issuance of shares of common stock at
   $3 per share                                                           121,600                  364,000                364,000
Net loss for the year ended
   December 31, 2000                                                                                          (540,000)  (540,000)
                                              ----------  ----------- ----------- -----------  ----------- -----------  ---------

Balance, December 31, 2000                     6,000,000        6,000   7,407,118       7,000    1,276,000  (1,057,000)   232,000
Issuance of shares of common stock at
   $.85 per share                                                          23,530                   20,000                 20,000
Issuance of shares of common stock at
   market value for services rendered                                      40,320                   35,000                 35,000
Fair value of services provided by founder                                                          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
                                              ==========  =========== =========== ===========  =========== ===========  =========
</TABLE>

















Attention is directed to the foregoing auditors' report and to the accompanying
notes to financial statements

                                      F-4

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>

                                                                                   Year Ended December 31,
                                                                                 --------------------------
                                                                                     2001           2000
                                                                                 -----------    -----------
<S>                                                                              <C>            <C>
Cash flows from operating activities:
   Net loss                                                                      $   (86,000)   $  (540,000)
   Adjustments to reconcile net loss to net cash used in operating activities:
      Depreciation                                                                   105,000        116,000
      Common stock issued for services                                                35,000
      Net gain on sale of property, plant and equipment                             (481,000)       (15,000)
      Fair value of services provided by founder                                      12,000
      Changes in:
        Accounts receivable                                                          (11,000)        57,000
        Inventory                                                                                    25,000
        Other assets                                                                  (8,000)         5,000
        Accounts payable and accrued expenses                                         19,000         81,000
                                                                                 -----------    -----------

           Net cash used in operating activities                                    (415,000)      (271,000)
                                                                                 -----------    -----------

Cash flows from investing activities:
   Purchase of property, plant and equipment                                                         (3,000)
   Proceeds from sale of property, plant and equipment                             1,192,000         55,000
                                                                                 -----------    -----------

           Net cash provided by investing activities                               1,192,000         52,000
                                                                                 -----------    -----------

Cash flows from financing activities:
   Proceeds from issuance of common stock                                             20,000        364,000
   Repayments of mortgage note payable                                              (408,000)       (10,000)
   Repayment of advances from stockholder                                           (275,000)
   Repayments of obligations under capital leases                                    (24,000)       (85,000)
   Advances from investor                                                            100,000         15,000
                                                                                 -----------    -----------

           Net cash (used in) provided by financing activities                      (587,000)       284,000
                                                                                 -----------    -----------

Net increase in cash and cash equivalents                                            190,000         65,000
Cash and cash equivalents, beginning of year                                         133,000         68,000
                                                                                 -----------    -----------

Cash and cash equivalents, end of year                                           $   323,000    $   133,000
                                                                                 ===========    ===========


Supplemental disclosure of cash flow information:
   Cash paid for interest                                                        $    72,000    $    56,000
</TABLE>





Attention is directed to the foregoing auditors' report and to the accompanying
notes to financial statements

                                      F-5

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2001

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 recently, the Company operated 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 is
associated with contract manufacturing services. Primarily all contract revenue
and cost of contract revenue are associated with manufacturing services. 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 operations
and had to sell property, plant and equipment 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 technologies, 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 2002, the Company
anticipates seeking additional capital, commencing sales of the voraxial
separator and continuing to monitor expenses. There is still substantial doubt
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
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2001

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 convertible preferred stock and warrants
       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:

           Convertible preferred stock                           6,200,000
           Warrants                                                243,200
           Stock options                                            45,000
                                                             -------------
                                                                 6,488,200
                                                             =============
[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 amount 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. The Company uses the cash basis method of accounting for income
       tax reporting purposes.

[8]    Research and development expenses:

       Research and development costs are expensed as incurred.

[9]    Revenue recognition:

       The Company recognizes contract revenue when earned. 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, 2001.

[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.
                                      F-7
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2001

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)

[11]   Advertising costs:

       Advertising costs, which amounted to $16,000 in 2000 are expensed as
       incurred. There were no advertising costs incurred during the year ended
       December 31, 2001.

[12]   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.

NOTE C - CONCENTRATION OF CREDIT RISK

Three customers accounted for 37%, 33%, and 16% of contract revenue for the year
ended December 31, 2001 as compared to one customer accounting for 72% of
contract revenue for the year ended December 31, 2000.

NOTE D - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of December 31, 2001 consists of:

       Machinery and equipment                                    $    351,000
       Furniture and fixtures                                           12,000
       Auto                                                             12,000
                                                                  ------------
                                                                       375,000
       Less accumulated depreciation                                   252,000
                                                                  ------------
       Net property, plant and equipment                          $    123,000
                                                                  ============

Included in depreciation expense for the year ended December 31, 2001 is
amortization of equipment under capital leases of $19,000. Accumulated
depreciation relating to equipment under capital leases aggregated $92,000 as of
December 31, 2001. Net book value of equipment under capital leases amounted to
$95,000 as of December 31, 2001.

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).

                                      F-8

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2001

NOTE E - OBLIGATIONS UNDER CAPITAL LEASES

As of December 31, 2001, the future minimum lease payments under capital leases
are as follows:

       Year Ending
       December 31,
       ------------

         2002                                        $    38,000
         2003                                             35,000
         2004                                             13,000
                                                     -----------
                                                          86,000
         Less amount representing interest               (10,000)
                                                     -----------
                                                          76,000
         Due within one year                              32,000
                                                     -----------
         Due after one year                          $    44,000
                                                     ===========

NOTE F - CAPITAL TRANSACTIONS

Common stock:

During the year ended December 31, 2000, the Company sold 1,216 units of common
stock, each unit consisting of 100 shares of common stock, 100 warrants to
purchase 100 shares of common stock at an exercise price of $6 per share and 100
warrants to purchase 100 shares of common stock at an exercise price of $9 per
share, in a private placement. Net proceeds received by the Company aggregated
$364,000. The warrants were exercisable at date of issuance through February
2002 which has been extended to February 11, 2003. No warrants have been
exercised through December 31, 2001.

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.

Preferred stock:

The preferred stock has voting rights, is convertible and accrues dividends at a
rate of 8% per share when and as declared by the Board of Directors. The 6
million shares of preferred stock are convertible into common stock on a one for
one basis. However, beginning January 1, 1998, and for each year thereafter
through December 31, 2002, for each year revenues increase by $10 million over
the preceding years revenue, 1 million preferred shares shall be convertible
into 1,200,000 shares of common stock. Upon the satisfaction of the revenue
increase condition, the Company will incur a charge to operations. Any shares of
preferred stock which have not been converted by December 31, 2002, shall be
automatically converted into shares of common stock on a share for share basis.

As of December 31, 2001, 6,200,000 common shares have been reserved for the
conversion of preferred stock.

                                      F-9

<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2001

NOTE F - CAPITAL TRANSACTIONS (CONTINUED)

Options:

During 2001, the Board of Directors of the Company granted 45,000 stock options
to an employee with an exercise price of $.25 with a contractual life of four
years and a two year vesting period, 50% at the end of each one year period from
the date of grant. The fair value of the options has been estimated on the date
of grant using the Black-Scholes option pricing model. The weighted average fair
value of the option was $.21. The following assumptions were used in computing
the fair value of the option grant; weighted average risk-free interest rate of
4.0%; zero dividend yield, volatility of the Company's common stock of 144% and
an expected life of the option of four years.

The Company applies APB 25 in accounting for its stock option issuances and,
accordingly, recognizes compensation expense for the difference between the fair
value of the underlying common stock and the exercise price of the option at the
date of grant. Had compensation cost for the Company's stock option issuance
been determined based upon the fair value at the date of grant as prescribed by
SFAS No. 123, the pro forma net loss applicable to common stockholders would be
$87,000 and the basic and diluted loss per common share would be $.01.

Due to investor:

During 2001, the Company received $100,000 from an investor. The Company has not
yet received an executed subscription agreement. The amount will be recorded as
equity and 100,000 shares will be issued to the investor if such agreement is
received.

NOTE G - INCOME TAXES

The significant components of the Company's deferred tax asset and liabilities
as of December 31, 2001 are as follows:

       Deferred income tax assets:
          Net operating losses carryforwards                  $    422,000
          Accrual basis adjustments                                 53,000
          Tax credits                                               34,000
       Deferred income tax liabilities:
          Depreciation                                             (12,000)
                                                              ------------
                                                                   497,000
       Valuation allowance                                         497,000
                                                              ------------
       Net deferred tax asset                                 $          0
                                                              ============

The significant components of the benefit for income taxes for the years ended
December 31, 2001 and 2000 are as follows:

                                                          2001          2000
                                                       ---------   ------------
       Deferred:
          Federal                                      $       0   $   (204,000)
          State                                                0        (31,000)
          Change in valuation allowance                        0        235,000
                                                       ---------   ------------
             Total deferred income taxes               $       0   $          0
                                                       =========   ============
                                      F-10
<PAGE>
ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY

Notes to Financial Statements
December 31, 2001

NOTE G - INCOME TAXES  (CONTINUED)

During 2001, the Company utilized approximately $90,000 of net operating losses
to offset taxable income of the same amount. As such, as of December 31, 2001,
the Company has net operating loss carryforwards of approximately $1,120,000 for
federal income tax purposes, which expire through 2021.

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:

                                                          2001        2000
                                                         -----       -----

       Statutory federal income tax rate                  34.0 %      34.0 %
       Other                                                           3.7
       Increase in valuation allowance                   (34.0)      (37.7)
                                                         -----       -----

       Effective income tax rate                           0.0 %       0.0 %
                                                         =====       =====

NOTE H - OTHER INCOME

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. For 2000, other income
consists solely of rental income.

NOTE I - COMMITMENTS

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, 2001 are as follows:

       Year Ending
       December 31,
       ------------

         2002                                  $     42,000
         2003                                        44,000
         2004                                        30,000
                                               ------------
                                               $    116,000
                                               ============

Rent expense charged to operations amounted to $15,000 in 2001.

                                      F-11