U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                For the quarterly period ended December 31, 2003

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


                         For the transition period from

                          Commission File # 333-69686

                            ANSCOTT INDUSTRIES, INC.
        (Exact name of small business issuer as specified in its charter)

            Florida                                          86-0000714
(State or other jurisdiction of                            (I.R.S. Employer
 incorporation or organization)                           Identification No.)

                 26 Haynes Drive, Wayne, New Jersey 07470
                    (Address of Principal Executive Offices)

                                 (973)696-7575
                           (Issuer's telephone number)


      (Former name, address and fiscal year, if changed since last report)

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

Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of February 14, 2004: 54,778,955 shares of common stock outstanding,
$0.0001 par value.


<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                        CONSOLIDATED FINANCIAL STATEMENTS

                                      INDEX

                                                                            Page
                                                                            ----
Part I -- FINANCIAL INFORMATION
     Item 1. Financial Statements
                Consolidated Balance Sheets                                    1
                Liabilities and Stockholders' Equity                           2
                Consolidated Statements of Income                              3
                Consolidated Statements of Stockholders' Equity                4
                Consolidated Statements of Cash Flows                          5
                Notes to Financial Statements                                  6
     Item 2. Management's Discussion and Analysis of Financial Condition
     Item 3. Controls and Procedures

Part II-- OTHER INFORMATION
     Item 1. Legal Proceedings
     Item 2. Changes in Securities
     Item 3. Defaults Upon Senior Securities
     Item 4. Submission of Matters to a Vote of Security Holders
     Item 5. Other Information
     Item 6. Exhibits and Reports on Form 8-K
     Signature


Item 1. Financial Information

BASIS OF PRESENTATION

The accompanying reviewed financial statements are presented in accordance with
generally accepted accounting principles for interim financial information and
the instructions to Form 10-QSB and item 310 under subpart A of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting only of normal
occurring accruals) considered necessary in order to make the financial
statements not misleading, have been included. Operating results for the nine
months ended December 31, 2003 are not necessarily indicative of results that
may be expected for the year ending March 31, 2004. The financial statements are
presented on the accrual basis.


                                       1

<PAGE>

                            Anscott Industries, Inc.

                   Index to Consolidated Financial Statements


                                                                            PAGE
                                                                            ----

Consolidated Balance Sheets ................................................   2

Consolidated Statements of Income ..........................................   3

Consolidated Statements of Stockholders' Equity ............................   4

Consolidated Statements of Cash Flows ......................................   5

Notes to Consolidated Financial Statements .................................   6



                                       2
<PAGE>

ACCOUNTANTS' REVIEW REPORT


To The Board of Directors
Anscott Industries, Inc.
Wayne, New Jersey


We  have  reviewed  the  accompanying  consolidated  balance  sheet  of  Anscott
Industries,  Inc.  as of  December  31,  2003  and  the  related  statements  of
operations,  stockholders'  deficit and cash flows for the three and nine months
then ended, in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public  Accountants.  All
information  included in these financial statements is the representation of the
management of Anscott Industries, Inc.

A review consists  principally of inquiries of Company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion  regarding the financial  statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements  in order  for them to be in
conformity with generally accepted accounting principles.

Our review was made for the purpose of expressing  limited  assurance that there
are no material modifications that should be made to the financial statements in
order  for  them  to  be  in  conformity  with  generally  accepted   accounting
principles. The information included in the accompanying schedules I, II and III
is presented only for supplementary analysis purposes.  Such information has not
been subjected to the inquiry and analytical procedures applied in the review of
the basic financial  statements,  but were compiled from the information that is
the representation of management without audit or review. Accordingly, we do not
express  an  opinion  or any  other  form  of  assurance  on  the  supplementary
information.


Dischino & Associates, P.C.
Certified Public Accountants

January 20, 2004


<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                           CONSOLIDATED BALANCE SHEET
                                DECEMBER 31, 2003

                                     ASSETS

CURRENT ASSETS
     Cash                                                        $81,560
     Accounts receivable net of allowance for bad debts
        of $23,400                                               758,751
     Inventories                                                 552,944
     Prepaid expenses and other current assets                    72,348
                                                              ----------
TOTAL CURRENT ASSETS                                           1,465,603

PROPERTY AND EQUIPMENT, NET                                    3,272,873

OTHER ASSETS:
     Intangible assets, net                                    1,269,414
     Security deposits                                            13,852
     Investment in Caled Signal Products Canada Ltd.             364,646
     Investment in Global Technologies, L.L.C                    188,617
     Deferred income taxes                                        34,291
                                                              ----------
TOTAL OTHER ASSETS                                             1,870,820
                                                              ----------

TOTAL ASSETS                                                  $6,609,296
                                                              ==========


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


                                       3
<PAGE>

                             ANSCOTT INDUSTRIES, INC
                           CONSOLIDATED BALANCE SHEET
                                DECEMBER 31, 2003

                      LIABILITIES AND STOCKHOLDERS' DEFICIT

<TABLE>
<CAPTION>
CURRENT LIABILITIES
<S>                                                                            <C>
     Notes payable, current portion                                                $39,229
     Line of credit                                                                649,649
     Small business loans, current portion                                           9,531
     Accounts payable                                                              701,826
     Payroll taxes payable                                                         705,765
     Trade notes payable, current portion                                           92,097
     Accrued expenses                                                              293,463
                                                                               -----------

TOTAL CURRENT LIABILITIES                                                                2,491,560

LONG-TERM LIABILITIES
     Notes payable, net of current portion                                                  29,344
     Trade notes payable, net of current portion                                            88,512
     Small business loans, net of current portion                                        1,662,694
     Loan payable                                                                          149,451
     Deferred income tax payable                                                            16,544
                                                                                       -----------

TOTAL LONG-TERM LIABILITIES                                                              1,946,545
                                                                                       -----------

TOTAL LIABILITIES                                                                        4,438,105

STOCKHOLDERS' EQUITY:
     Common stock, authorized 75,000,000 shares; $.001 par value; issued
        and outstanding 53,113,000 shares                                                   53,113
     Additional paid-in capital                                                          2,377,333
     Accumulated deficit                                                                  (310,620)
     Accumulated other comprehensive income                                                 51,365
                                                                                       -----------
TOTAL STOCKHOLDERS' EQUITY                                                               2,171,191
                                                                                       -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                              $6,609,296
                                                                                       ===========
</TABLE>


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


                                       4
<PAGE>


                            ANSCOTT INDUSTRIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                   THREE MONTHS        NINE MONTHS
                                                                      ENDED               ENDED
                                                                DECEMBER 31, 2003   DECEMBER 31, 2003
                                                                -----------------   -----------------
<S>                                                             <C>                 <C>
SALES                                                               $1,197,334         $3,429,173

COST OF GOODS SOLD                                                     735,587          2,063,917
                                                                   -----------        -----------

GROSS PROFIT                                                           461,747          1,365,256

SELLING EXPENSES                                                      (385,069)        (1,098,142)

GENERAL AND ADMINISTRATIVE EXPENSES                                    (83,593)          (645,881)
                                                                   -----------        -----------

LOSS FROM OPERATIONS                                                    (6,915)          (378,767)
                                                                   -----------        -----------

OTHER INCOME (EXPENSE):
     Interest expense                                                  (58,863)          (151,118)
     Equity in earnings of Caled Signal Products Canada Ltd.            31,090             54,891
     Forgiveness of debt                                                28,188             60,618
     Rental income/H.D. Realty                                          42,278            126,860
                                                                   -----------        -----------
TOTAL OTHER INCOME (EXPENSE)                                            42,693             91,251
                                                                   -----------        -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES                         35,778           (287,516)

INCOME TAX EXPENSE                                                          --              1,014
                                                                   -----------        -----------

NET INCOME (LOSS)                                                      $35,778          $(288,530)
                                                                   ===========        ===========
</TABLE>


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


                                       5
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                                         Accumulated
                                                                        Additional          Other
                                    Common             Paid in          Accumulated     Comprehensive
                                    Stock              Capital            Deficit           Income              Total
                                  -----------        -----------        -----------       -----------        -----------
<S>                               <C>                <C>                <C>               <C>                <C>
BALANCE,
MARCH 31, 2003                       $724,135           $305,056        $(2,203,968)      $    22,090        $(1,152,687)

NET (LOSS)                                                                 (116,936)                            (116,936)
                                  -----------        -----------        -----------       -----------        -----------

BALANCE,
JUNE 30, 2003                         724,135            305,056         (2,320,904)           22,090        (1,269,623)

NET INCOME (LOSS)                                                          (207,372)           10,403           (196,969)
                                  -----------        -----------        -----------       -----------        -----------

BALANCE,
SEPTEMBER 30, 2003                    724,135            305,056         (2,528,276)           32,493        (1,466,592)

NET INCOME                                                                   35,778            18,872             54,650

STOCK ACQUISITION                    (722,449)         1,547,858           (102,286)                             723,123

REVALUATION OF FIXED ASSETS                                               2,284,164                            2,284,164

STOCK SOLD                             51,427            524,419                                                 575,846
                                  -----------        -----------        -----------       -----------        -----------

BALANCE,
DECEMBER 31, 2003                 $    53,113        $ 2,377,333        $  (310,620)      $    51,365        $ 2,171,191
                                  ===========        ===========        ===========       ===========        ===========
</TABLE>


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


                                       6
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                       THREE MONTHS       NINE MONTHS
                                                                                          ENDED              ENDED
                                                                                    DECEMBER 31, 2003   DECEMBER 31, 2003
                                                                                    -----------------   -----------------
<S>                                                                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income (loss)                                                                 $    35,778        $  (288,530)
     Adjustments to reconcile net loss to net cash used by operating activities:
        Depreciation and amortization                                                       38,984             60,804
        Income from investments accounted for on the equity method                          18,872             29,275
        (Increase) decrease in:
           Accounts receivable                                                             (87,075)           (16,730)
           Inventories                                                                     (27,930)           (93,125)
           Prepaid expenses and other current assets                                       (16,664)            (3,425)
           Investment in Caled Signal Products Canada Ltd.                                 (32,412)           (66,616)
        Increase (decrease) in:
           Accounts payable                                                               (161,757)          (171,501)
           Accrued expenses                                                                 43,287            177,567
           Payroll taxes payable                                                             9,720            162,398
           State income taxes payable                                                           --              1,014
                                                                                       -----------        -----------
NET CASH USED IN OPERATING ACTIVITIES                                                     (179,197)          (208,869)

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of fixed assets                                                              (13,000)           (17,278)
     Revaluation adjustment                                                               (102,279)          (102,279)
     Revaluation of fixed assets                                                          (854,557)          (728,653)
                                                                                       -----------        -----------
NET CASH USED IN INVESTING ACTIVITIES                                                     (969,836)          (848,210)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Principal repayments on line of credit                                                (78,091)           (57,660)
     Proceeds from stock sale                                                              575,845            575,846
     Revaluation of common stock                                                           825,409            825,409
     Principal repayments on notes payable                                                  (9,782)           (34,588)
     Principal repayments on long term debt                                                (83,017)          (170,642)
                                                                                       -----------        -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                                1,230,364          1,138,365
                                                                                       -----------        -----------

NET INCREASE IN CASH                                                                        81,331             81,286

CASH, BEGINNING OF PERIOD                                                                      229                274
                                                                                       -----------        -----------

CASH, END OF PERIOD                                                                    $    81,560        $    81,560
                                                                                       ===========        ===========

SUPPLEMENTAL DISCLOSURE OF CASH PAID:
     Interest                                                                          $    58,863        $   151,118
</TABLE>


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


                                       7
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENDED DECEMBER 31, 2003


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

NATURE OF BUSINESS

Anscott Chemical Industries, Inc. was incorporated in the State of New Jersey on
January 21, 1960.  The Company is engaged in the business of  manufacturing  and
distribution of specialty chemicals and filtration products.

On April 15, 2003, pursuant to a Stock Purchase Agreement and Share Exchange
between Liquidix, Inc., AFS Seals, Inc. and Anscott Chemical Industries, Inc,
Liquidix, Inc., acquired all of the shares of Anscott shareholders in
consideration for the issuance of a total of 45,0000,000 shares of Liquidix
common stock to Anscott and the transfer of all of Liquidix current assets and
liabilities to AFS Seals, Inc. Pursuant to the Agreement, Anscott became a
wholly owned subsidiary and AFS Seals filed articles of amendment in the state
of Florida changing its name to Anscott Industries, Inc. The Company maintains
its principal offices at 26 Hanes Drive, Wayne, New Jersey 07470.

The fixed assets and stockholder's equity have been restated during the three
month period, October 1, 2003 through December 31, 2003 to reflect the fair
value of the assets at the time of acquisition.

The Company sells cleaning chemicals and filters primarily to customers
throughout the United States. The Company performs ongoing credit evaluations of
its customers' financial conditions and generally requires no collateral from
its customers. Credit losses, when realized, have been within the range of the
Company's expectations and, historically have not been significant.

BASIS OF ACCOUNTING

The consolidated financial statements have been prepared in accordance with
generally accepted accounting principles, using the accrual method. Revenues are
recorded in the period they are earned and expenses are recorded in the period
they are incurred.

The accompanying consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries, H.D. Realty Corp. and Anscott of
Canada, Inc. All intercompany balances and transactions are eliminated in
consolidation.

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.


                         See accountants' review report


                                       8
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENED DECEMBER 31, 2003


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED):

COMPREHENSIVE INCOME

Statement of Financial Accounting Standards No. 130, Reporting Comprehensive
Income, (SFAS 130), requires that total comprehensive income be reported in the
consolidated financial statements. Total comprehensive income is presented on
the Consolidated Statements of Changes in Stockholders' Deficit.

INVENTORY

Inventory is stated at the lower of cost (first-in, first-out) or market.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost. Depreciation is computed over the
estimated useful lives of the assets using both straight-line and accelerated
methods. Repairs and maintenance are charged to operations in the period
incurred. The estimated useful lives used in computing depreciation are:


          Warehouse Equipment                                           7 years
          Office Furniture, Laboratory and Sales Equipment              7 years
          Leasehold improvements                                       39 years
          Building                                                     39 years
          Land

INTANGIBLE ASSETS

Intangible assets at December 31, 2003:

          Goodwill                                               $     678,743
          Start-up costs                                               560,219
          Mortgage acquisition costs                                    45,584
                                                                  -------------
                                                                     1,284,546

          Less:  accumulated amortization                             (15,132)
                                                                  -------------
                  Total                                          $   1,269,414
                                                                  =============


Goodwill will be tested for impairment in the fourth quarter. Assets that have
finite useful lives will continue to be amortized over their useful lives, but
without the constraint of an arbitrary ceiling. Intangible assets are recorded
at cost. Amortization is calculated using the straight-line method over the
following periods: start up costs, 15 years; loan origination and acquisition
fees over the terms of related loans, 20 years


                         See accountants' review report


                                       9
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENDED DECEMBER 31, 2003


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED):

INCOME TAXES

Current income taxes are based on the current year's income, which is taxable
for federal and state income tax reporting purposes. Deferred tax assets and
liabilities are determined based on the differences between the financial
statement and tax basis of assets and liabilities, using enacted tax rates in
effect for the year in which the differences are expected to reverse. Deferred
tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized. Deferred tax assets and liabilities primarily
result from differences in the basis of property and equipment, allowance for
doubtful accounts, net operating loss carry forwards and investments accounted
for under the equity method.

NOTE 2 - INVENTORIES:

Inventories at December 31, 2003:

          Raw materials                                      $   149,533
          Work in process                                         33,612
          Finished goods                                         369,799
                                                              -----------
            Total inventory                                  $   552,944
                                                              ===========


NOTE 3 - PROPERTY AND EQUIPMENT:

Property and equipment at December 31, 2003 consists of:

          Furniture & equipment                           $   170,762
          Leasehold improvements                               37,277
          Land and building                                 3,125,638
                                                          -----------
                                                            3,333,677

          Less:  accumulated depreciation                     (60,804)
                                                          -----------
              Property and equipment, net                 $ 3,272,873
                                                          ===========


                         See accountants' review report


                                       10
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENDED DECEMBER 31, 2003


NOTE 4 - INVESTMENT IN CALED SIGNAL PRODUCTS CANADA LTD.:

Anscott of Canada,  Inc.,  a wholly  owned  consolidated  subsidiary,  has a 50%
ownership interest in Caled Signal, which is carried on the equity method.

<TABLE>
<CAPTION>
<S>                                                                              <C>
             Balance of equity-December 31, 2003                                 $  364,646
                                                                                  ===========
</TABLE>


NOTE 5 - INVESTMENT IN GLOBAL TECHNOLOGIES, L.L.C.:

Global Technologies, L.L.C. ("Global") is a 50% owned limited liability company,
which is accounted for using the equity method. The Company was started during
1995 to produce and market a new dry cleaning system called "Dry Wash."

<TABLE>
<CAPTION>
<S>                                                                              <C>
             Balance of equity - December 31, 2003                               $  188,617
                                                                                  ===========
</TABLE>

NOTE 6 - TRADE NOTES PAYABLE:

The Company has refinanced several trade payables and renegotiated prior
outstanding trade notes payable into long-term trade notes payable as follows:

<TABLE>
<CAPTION>
<S>                                                                                <C>
Balance at December 31, 2003 -                                                     $      180,609
                                                                                       -----------
</TABLE>

Several trade payables were refinanced and prior outstanding trade notes payable
were renegotiated into long-term trade notes payable due in varying monthly
installments, at various maturity dates extending into 2005.

<TABLE>
<CAPTION>
<S>                                                                                <C>
Total                                                                              $      180,609
Less:  current portion                                                                     92,097
                                                                                       -----------
Total long-term portion                                                            $       88,512
                                                                                       ===========
</TABLE>

                         See accountants' review report


                                       11
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENDED DECEMBER 31, 2003


NOTE 7 - LINE OF CREDIT:

During September 2000, the Company obtained a revolving line of credit with a
financial institution. The credit line is initially available for a
2-year term commencing on September 10, 2000 and ending September 2002.
The proceeds were used to pay off prior existing line of credit and some of the
existing debt.

Advances under the credit line are based on 85% of eligible accounts receivable
plus the lessor of 50% of eligible inventory or $300,000. Borrowings under the
credit line may not exceed $1,300,000. The balance on the credit line at
December 31, 2003 is $649,649. The credit line bears interest at 10%.

NOTE 8 - NOTES PAYABLE:


<TABLE>
<CAPTION>
<S>                                                                                 <C>
Balance at December 31, 2003 -                                                      $  68,573
                                                                                     ---------
During September 2000, the Company obtained an equipment loan, which is linked
to the revolving line of credit (Note 7). The loan is payable in monthly
installments of $3,260 plus interest with the balance payable in five years.

     Total                                                                          $  68,573

Less:  current portion                                                                 39,229
                                                                                     ---------

Total long-term portion                                                             $  29,344
                                                                                     =========
</TABLE>

                         See accountants' review report


                                       12
<PAGE>


                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENDED DECEMBER 31, 2003


NOTE 8 - NOTES PAYABLE (CONT'D):

Future minimum payments on the notes payable are as follows:

            DECEMBER 31,

                2004                                     $   39,120
                2005                                         29,453
                                                          ----------
                Total                                    $   68,573
                                                          ==========


NOTE 9 - SMALL BUSINESS ADMINISTRATION LOAN

On April 29, 1999, the Company entered into a loan agreement with the Small
Business Administration in the amount of $1,276,000. The loan bears interest at
the prime rate published in the Wall Street Journal plus 1.75%. The loan is
collateralized by the Company's land and building. The loan is payable in
monthly installments of principal and interest of $11,541, with the remaining
principal and accrued interest due and payable 264 months from the date of the
initial disbursement. During 2002, the Company renegotiated the loan to defer
principal payments for a four-month period.

Principal balance at December 31, 2003                       $  1,263,125
Less:  current portion                                              9,531
                                                              ------------
Total Long-term portion                                      $  1,253,594
                                                              ============


                         See accountants' review report


                                       13
<PAGE>


                            ANSCOTT INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  THREE AND NINE MONTHS ENDED DECEMBER 31, 2003


NOTE 10 - SMALL BUSINESS ADMINISTRATION LOAN

The Company suffered an economic hardship as a result of the September 11, 2001
disaster. Therefore it applied to the SBA for a disaster relief loan. The
$40,125 initial payment was used to purchase raw materials during December 2001.
The balance of $368,975 was received in 2002. Payments and interest will be
deferred for a two-year period starting December 2004. The loan is payable in
monthly installments of principal and interest of $3,287 with the remaining
principal and accrued interest due and payable 15 years at an interest rate of
4% per annum.

Future minimum payments on the small business loan from SBA are as follows:


               DECEMBER 31,
               ------------
                  2003                                $      --
                  2004                                    2,272
                  2005                                   27,273
                  2006                                   28,151
                  2007                                   28,996
                  Thereafter                            322,408
                                                       ---------
                                                      $ 409,100
                                                       =========


NOTE 11 - CONCENTRATIONS OF CREDIT RISK:

The Company is subject to credit risk on its trade receivables. In the normal
course of business, the Company extends credit, on open account, to its
customers. The Company performs ongoing credit evaluations of its customers'
financial condition and provides reserves for accounts doubtful of collection.


NOTE 12 - EMPLOYEE BENEFIT PLAN:

The Company has a 401(k) plan covering substantially all of its employees. The
Company has the option of making an annual discretionary contribution and can
also match each employee's contribution to the plan up to a predetermined limit.
For the period ended December 31, 2003, the Company has elected not to
contribute to the plan.


                         See accountants' review report


                                       14
<PAGE>

                            ANSCOTT INDUSTRIES, INC.
                      MANAGEMENT'S DISCUSSION AND ANALYSIS


INTRODUCTION

The following discussion should be read in conjunction with our financial
statements and related notes included herein. Certain statements are not based
on historical facts, but are forward-looking statements that are based upon
assumptions about our future conditions that could prove to be inaccurate.
Actual events, transactions and results may materially differ from the
anticipated events, transactions or results described. Our ability to consummate
transactions and achieve events or results is subject to certain risks and
uncertainties, which include, but are not limited to, the existence of demand
for and acceptance of our products, regulatory approvals and developments,
economic conditions, the impact of competition and pricing, and other factors
affecting our business that are beyond our control.

On April 15, 2003, pursuant to a Stock Purchase Agreement and Share Exchange
between us AFS Seals, Inc and Anscott Industries, Inc., we acquired all of the
shares of Anscott from the Anscott shareholders in consideration for the
issuance of a total of 45,000,000 shares of our common stock to the Anscott
shareholders and the transfer of all of our current assets and liabilities to
AFS. Pursuant to the Agreement, Anscott became a wholly owned subsidiary of the
Company and we filed articles of amendment in the state of Florida changing our
name to Anscott Industries, Inc.

Based on the Agreement and spin off of our assets, we adopted the business plan
of Anscott Industries, Inc. Therefore, currently our principal activity is to
manufacture and sell specialty chemicals, cleaning agents, odor eliminators,
repellents, treatments, purification and decontamination processes for the
commercial laundry and cleaning industries. Our business is conducted through
three segments: chemical & additive technology for cleaning and coatings of
textiles; filtration & equipment that extends the life traditional cleaning
chemicals through a recycling process; commercialization venture leveraging
aerospace technology and distribution in order to move from laboratory to
commercial products quickly, extending the company's knowledge to deliver
solutions to protect people, property and the environment. We have our
operations in New Jersey, California and Quebec. We sell to over 150
distributors and 5,000 end-users worldwide. Chemicals & Additives products
accounted for 78% of Anscott Industries, Inc. (subsidiary) 2002 revenues;
Filtration & Equipment, 20%; Commercialization, 2%.

We were established in 1960 and a manufacturer servicing the garment services
industry. We manufacture chemicals and disposable filters that clean textiles
professionally. We sell our products and services to over 5,000 professional
cleaners today.

Our joint venture with Itochu Aviation, named Global Technologies, is the
exclusive licensee of Raytheon Systems Company (formally HUGHES AIRCRAFT) for
the DryWash Process. The Dry Wash Process has been sub-licensed to some of the
industries largest chemical, machine and carbon dioxide manufacturers. DryWash
cleaning process replaces "PERC", a probable carcinogen and hazardous material
by utilizing liquid carbon dioxide and aerospace technology. DryWash has an
opportunity to revolutionize the garment services industry by providing a low
cost alternative without toxic chemicals such as perchloroethylene (perc) or
petroleum.

NINE MONTHS ENDED  DECEMBER 31, 2003 COMPARED TO NINE MONTHS ENDED
DECEMBER 31, 2002

Revenues for the nine months ended December 31, 2003 were $3,429,173 as compared
to $1,980,628 for the nine months ended December 31, 2002. The increases in the
revenues were due to the merger.

Cost of sales for the nine months ended December 31, 2003 were $2,063,917 as
compared to $1,105,398 for the nine months ended December 31, 2002. This was due
to the merger.


                                       15
<PAGE>


General and administrative expenses were $1,394,108 for the nine months ended
December 31, 2002 as compared to $645,881 for the nine months ended December 31,
2003. The decrease was primarily due the merger.

For the nine months ended December 31, 2003, we incurred a net operating loss of
$378,767 compared to a net operating loss of $633,598 for the nine months ended
December 31, 2002. The net loss resulted primarily from the high cost of
capital.

IMPACT OF INFLATION

We do not believe that inflation will have any material impact on its commercial
activities for the ensuing year, as our products do not fall under categories
that are traditionally affected.

LIQUIDITY AND CAPITAL RESERVES

The primary roadblock facing our plans for growth is our need for capital. We
are actively seeking additional capital resources through the sale of equity.
With additional capital resources we expect to be able to expand our services
and products. At the present time we have adequate working capital for our
immediate business. Additional capital is needed for any and all expansion.
Historically, the Company's primary source of cash has been from operations and
debt financing by related parties.

Cash provided by operating activities during the nine months ended December 31,
2003 amounted to $81,286 primarily the result of current operations and the sale
of equity.

Cash provided by financing activities during the nine months ended December 31,
2002 amounted to $83,525, related primarily to the repayment of notes payable.

PLAN OF OPERATIONS FOR FISCAL YEAR 2003

We anticipate that as sales increase we will achieve profitability during fiscal
year 2003. Future activities will be directed towards expanding existing markets
for our products and penetrating new markets. We have our operations in New
Jersey, California and Quebec. We sell to over 150 distributors and 5,000
end-users worldwide. During this year we are in the process of expanding our
service coverage and technology that is expected to double our customer base to
ten (10,000) thousand within two (2) years.

Item 3. Controls and Procedures

(a)   Evaluation of disclosure controls and procedures.

      Our Chief Executive Officer and Chief Financial Officer (collectively the
      "Certifying Officers") maintain a system of disclosure controls and
      procedures that is designed to provide reasonable assurance that
      information, which is required to be disclosed, is accumulated and
      communicated to management timely. Under the supervision and with the
      participation of management, the Certifying Officers evaluated the
      effectiveness of the design and operation of our disclosure controls and
      procedures (as defined in Rule [13a-14(c)/15d-14(c)] under the Exchange
      Act) within 90 days prior to the filing date of this report. Based upon
      that evaluation, the Certifying Officers concluded that our disclosure
      controls and procedures are effective in timely alerting them to material
      information relative to our company required to be disclosed in our
      periodic filings with the SEC.

(b)   Changes in internal controls.

      Our Certifying Officers have indicated that there were no significant
      changes in our internal controls or other factors that could significantly
      affect such controls subsequent to the date of their evaluation, and there
      were no such control actions with regard to significant deficiencies and
      material weaknesses.


                                       16
<PAGE>


                           PART II - OTHER INFORMATION

<TABLE>
<CAPTION>
<S>                                                         <C>
Item 1.   Legal Proceedings.                                None.  To the best of our
                                                            knowledge  there is no
                                                            litigation  current or pending
                                                            against us.

Item 2.   Changes in Securities.                            None

Item 3.   Defaults Upon Senior Securities.                  Not Applicable

Item 4.   Submission of Matters to a Vote of Security       None.

Item 5.   Other Information.                                None

Item 6.   Exhibits and Reports of Form 8-K.                 None
</TABLE>


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed in its
behalf by the undersigned, thereunto duly authorized, on February 14, 2004.



                             ANSCOTT INDUSTRIES, INC.


Date:  February 14, 2004     By: /s/  Jack Belluscio
                             -------------------------
                             Jack Belluscio
                             Chairman and President


                                       17

<PAGE>


                                 CERTIFICATION OF
                             CHIEF EXECUTIVE OFFICER AND
                              CHIEF FINANCIAL OFFICER
                                   PURSUANT TO
                             18 U.S.C. SECTION 1350,
                    AS ADOPTED PURSUANT TO SECTION 906 OF THE
                           SARBANES-OXLEY ACT OF 2002

I, Jack Belluscio certify that:

1.    I have reviewed this quarterly report on Form 10-QSB of Anscott
      Industries, Inc.

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a 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 quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in the quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in the
      quarterly 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, if any, is made known to us by others
            within those entities, particularly during the period in which this
            quarterly 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 quarterly report (the "Evaluation Date"); and

      c)    presented in this quarterly report our conclusions about
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    I have disclosed, based on our 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 weakness 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 the quarterly report whether there were significant
      changes in internal controls or in other factors that could significantly
      affect internal controls subsequent to the date of our most recent
      evaluation, including any corrective actions with regard to significant
      deficiencies and material weaknesses.


Dated: February 14, 2004

/s/ Jack Belluscio
-------------------------
Jack Belluscio
President, Chief Executive Officer
and Chief Financial Officer


                                      18
<PAGE>



      CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
                       PURSUANT TO 18 U.S.C. SECTION 1350


     IN CONNECTION WITH THE ACCOMPANYING QUARTELRY REPORT ON FORM 10-QSB OF
ANSCOTT INDUSTRIES, INC. FOR THE PERIOD ENDED DECEMBER 31, 2003, JACK BELLUSCIO,
PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER OF ANSCOTT
INDUSTRIES, INC. HEREBY CERTIFY PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, TO THE BEST OF MY
KNOWLEDGE AND BELIEF, THAT:

1. Such Annual Report on Form 10-QSB for the period ended December 31, 2003,
fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and

2. The information contained in such Annual Report on Form 10-QSB for the period
ended December 31, 2003, fairly presents, in all material respects, the
financial condition and results of operations of Anscott Industries, Inc.


                                 ANSCOTT INDUSTRIES, INC.


                                 By:  /s/ Jack Belluscio
                                     ------------------------------
                                        Jack Belluscio
                                     Principal Executive Officer and
                                     Principal Financial Officer


Dated: February 14, 2003



                                       19