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 March 31, 2003

                                       OR

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

             For the transition period from         to

                        Commission File Number 000-30440

                              THE AUXER GROUP, INC.
        (Exact name of small business issuer as specified in its charter)


          DELAWARE                                      22-3537927
 (State or other jurisdiction of              (IRS Employer Identification No.)
  incorporation or organization)

                             954 Business Park Drive
                             Traverse City, MI 49686
                    (Address of Principal Executive Offices)

                                 (231) 946-4343
                           (Issuer's telephone number)


Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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 [ ].

Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of the latest practicable date: 822,239,211 shares of common
stock, no par value, as of April 30, 2003.

================================================================================

                              THE AUXER GROUP, INC.

                                   FORM 10-QSB

                      FOR THE QUARTER ENDED MARCH 31, 2003

                                TABLE OF CONTENTS


Part I.  CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                                                         Page
Item 1.   Condensed Consolidated Financial Statements

          Condensed Consolidated Balance Sheets
               March 31, 2003 and December 31, 2002                         3

          Condensed Consolidated Statements of Operations
               Three months ended March 31, 2003 and 2002                   4

          Condensed Consolidated Statements of Cash Flows
               Three months ended March 31, 2003 and 2002                   5

          Notes to Condensed Consolidated Financial Statements            6-7

Item 2.   Management's Discussion and Analysis of Financial Condition and
               Results of Operations                                        8



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 of Form 8-K. None

         Signatures



                                        1

<PAGE>

                                     PART I


                              FINANCIAL INFORMATION


Item 1. Financial Statements
----------------------------

The consolidated financial statements of The Auxer Group, Inc. and subsidiaries
(collectively, the "Company"), included herein were prepared, without audit,
pursuant to rules and regulations of the Securities and Exchange Commission.
Because certain information and notes normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America were condensed or omitted pursuant to such rules and
regulations, these financial statements should be read in conjunction with the
financial statements and notes thereto included in the audited financial
statements of the Company as included in the Company's Form 10-KSB for the year
ended December 31, 2002.

                                       2

<PAGE>

<TABLE>
<CAPTION>

                              THE AUXER GROUP, INC.
                           CONSOLIDATED BALANCE SHEETS

                                                                          March 31,             December 31,
                                                                            2003                    2002
                                                                            ----                    ----
                   ASSETS                                                (unaudited)
Current Assets
<S>                                                                 <C>                     <C>
     Cash                                                           $               163     $            10,222
     Accounts receivable, net                                                         -                  15,077
     Inventory                                                                        -                 158,447
     Prepaid expenses                                                                 -                  55,087
                                                                      ------------------      ------------------
          Total Current Assets                                                      163                 238,833

Property plant and equipment, net of accumulated depreciation                         -                  20,397
Security deposit                                                                      -                   5,132
Goodwill                                                                      6,200,000                       -
                                                                      ------------------      ------------------
          Total Assets                                              $         6,200,163     $           264,362
                                                                      ==================      ==================

              LIABILITIES AND CAPITAL
Current Liabilities
     Accounts payable and accrued expenses                          $           662,981     $           673,517
     Credit line                                                                 24,728                 120,731
     Taxes payable                                                              109,816                 129,240
     Notes payable                                                              803,769                 908,838
     Notes payable-shareholders                                                       -                 174,528
                                                                      ------------------      ------------------
          Total Current Liabilities                                           1,601,294               2,006,854

Long term debt, less current maturities                                               -                   2,682
Common stock subject to rescission                                               61,250                  61,250

Commitments and contingencies

Stockholders' Equity (Deficit)
  Common stock, 1,000,000,000 shares authorized at $.001
    par value; issued and outstanding 671,207,531 at March
    31, 2003 and 357,022,731 at December 31, 2002                               669,157                 357,023
  Preferred stock 25,000,000 shares authorized at
    $.001 par value; 1,500,000 shares outstanding
    at March 31, 2003 and December 31, 2002                                       1,500                   1,500
Additional paid-in capital                                                   15,119,694              10,414,189
Accumulated deficit                                                         (11,252,732)            (12,579,136)
                                                                      ------------------      ------------------
          Stockholders' Equity (Deficit)                                      4,537,619              (1,806,424)
                                                                      ------------------      ------------------
          Total Liabilities and Capital                             $         6,200,163     $           264,362
                                                                      ==================      ==================
</TABLE>


                        See Notes to Financial Statements
                                        3

<PAGE>

<TABLE>
<CAPTION>
                              THE AUXER GROUP, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS


                                                                 For the Three Months Ended
                                                                          March 31,
                                                               2003                    2002
                                                               ----                    ----
                                                            (unaudited)             (unaudited)

<S>                                                    <C>                     <C>
Sales revenues                                         $                 -     $         1,004,513

Cost of sales                                                            -                 864,738
                                                         ------------------      ------------------

Gross profit                                                             -                 139,775

General and administrative expenses                                166,155                 258,697
Depreciation and amortization                                            -                  33,803
Interest expenses                                                   19,620                  36,468
                                                         ------------------      ------------------
                                                                   185,775                 328,968

    Loss from operations                                          (185,775)               (189,193)

Other income and expenses
    Bad debt recovery and other                                      5,277                       -
    Loss on sale of assets                                         (23,873)                      -
                                                         ------------------      ------------------

Net loss from continuing
     operations                                        $          (204,371)    $          (189,193)
                                                         ==================      ==================

Net loss per common share                              $             (0.00)    $             (0.00)
                                                         ==================      ==================

Weighted average shares outstanding                            584,586,961             138,117,072
                                                         ==================      ==================
</TABLE>


                       See Notes to Financial Statements.
                                        4
<PAGE>

<TABLE>
<CAPTION>

                              THE AUXER GROUP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                            For the Three Months Ended
                                                                                     March 31,
                                                                           2003                    2002
                                                                           ----                    ----
                                                                        (unaudited)             (unaudited)
Operating Activities
<S>                                                                <C>                     <C>
   Net loss from continuing operations                             $          (204,371)    $          (189,193)
   Adjustments to reconcile net loss to net cash
      used by operating activities:
   Depreciation and amortization                                                     -                  33,804
   Common stock issued for services                                             30,000                       -
   Stock issued for compensation                                                10,000                       -
   Other                                                                         7,312                       -
   Loss on sale of subsidiary                                                   23,873                       -
   Changes in operating assets and liabilities:
   (Increase) decrease in accounts receivable                                        -                (387,320)
   (Increase) decrease in inventory                                                  -                  75,763
   (Increase) decrease in other receivables                                          -                  40,112
   Increase (decrease) in accounts payable and accrued expenses                117,494                  85,144
   Increase (decrease) in deferred sales                                             -                  85,854
                                                                     ------------------      ------------------
   Net cash used by operating activities                                       (15,692)               (255,836)

Investing Activities
   Sale and spin off of business, net                                          (42,991)                      -
                                                                     ------------------      ------------------
   Net cash used by investing activities                                       (42,991)                      -

Financing Activities
   Bank loans                                                                        -                 100,000
   Payment of bank loan                                                            (41)                 (1,999)
   Borrowings/payments under loan agreement, net                                     -                 178,129
   Payments on short-term debt                                                  49,264                     668
   Payments on long-term debt                                                     (599)                   (985)
   Shareholder loan payable                                                          -                 (18,611)
                                                                     ------------------      ------------------
   Net cash provided by financing activities                                    48,624                 257,202
                                                                     ------------------      ------------------

   Increase (decrease) in cash                                                 (10,059)                  1,366
   Cash at beginning of period                                                  10,222                  27,616
                                                                     ------------------      ------------------
   Cash at end of period                                           $               163     $            28,982
                                                                     ==================      ==================

Supplemental Disclosures of Cash Flow Information:
  Cash paid during year for:
     Interest                                                      $                       $                 -
                                                                     ==================      ==================
     Income taxes (benefits)                                       $                       $                 -
                                                                     ==================      ==================
</TABLE>



                       See Notes to Financial Statements.
                                        5

<PAGE>

                              THE AUXER GROUP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003



Note 1-   The accompanying consolidated financial statements contain all
          adjustments necessary to present fairly the financial position of The
          Auxer Group, Inc. and subsidiaries (collectively, the "Company") as of
          March 31, 2003 and their results of operations and their cash flows
          for the three month periods ended March 31, 2003 and 2002. Results of
          operations for the three month period ended March 31, 2003 are not
          necessarily indicative of the results that may be expected for the
          year ending December 31, 2003. All material inter-company balances and
          transactions have been eliminated in consolidation.

Note 2-   Basic earnings (loss) per common share ("EPS") is computed as net
          earnings (loss) divided by the weighted-average number of common
          shares outstanding for the period. Diluted EPS representing the
          potential dilution that could occur from common shares issuable
          through stock-based compensation including stock options, restricted
          stock awards, warrants and other convertible securities is not
          presented for the three month periods ended March 31, 2003 and 2002
          since there was no dilutive effect of potential common shares.

Note 3-   On January 8, 2003 the Company entered into an agreement to exchange
          246,000,000 shares of the Company's common stock for 100% ownership of
          VIVA International, Inc., a Puerto Rico Corportion. In addition, the
          Company will issue 140,000 shares of common stock (valued at $4,480)
          and grant 660,000 shares of common stock at $0.10 per share to certain
          employees of VIVA airlines, Inc. VIVA Airlines, Inc. has no assets and
          holds a letter of intent to acquire 49% of Queen Air and/or Aeronaves
          Queen, SA (a Dominican Republic air carrier) for $600,000 U.S.
          Dollars.

Note 4-   Also, on January 8, 2003, the Company sold 80% of Harvey Westbury to a
          former officer of the Company for $44,126.90 and the forgiveness of
          $110,401.29 of monies owed by the Company to this officer. The Company
          approved the forgiveness of $1,206,625 of loans made to Harvey
          Westbury Corp. The Company then approved the spin-off of the remaining
          20% interest in Harvey Westbury to the Company's shareholders of
          record on January 9, 2003.

Note 5-   During March, 2003 the Company issued 3,000,000 shares of common stock
          for the payment of legal fees valued at $30,000 and 63,134,800 shares
          of common stock for the conversion of $86,710 of principal and $71,127
          of interest of convertible debt.

                                        6
<PAGE>

                              THE AUXER GROUP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2003

Note 6-   On April 24, 2002 the Company entered into a modification and payment
          restructuring agreement with one of its creditors whereby the creditor
          would try to sell the underlying collateral and offset the proceeds
          against an agreed upon amount, and any short would be paid by the
          Company before September 2002. The Company did not make the payment
          when due and is now in default.

Note 7-   During the first quarter of 2003, the Company corrected an error in
          failing to issue 2,000,000 shares of common stock to a former officer
          of the Company for services in a prior year. The value of the shares
          of $10,000 was charged to compensation expense.

Note 8-   SUBSEQUENT EVENTS:

          During the second quarter of 2003, the Company announced that it's
          wholly owned subsidiary, VIVA Airlines, Inc. has completed the
          acqusition of 49% of Queen Air, Aeronaves Queen S.A.

          The Company has made an application for a Name and Symbol change.

          The Company announced a reverse stock split of 800 to 1 to be
          effective as of May 29, 2003 and an offer that will allow common
          shareholders to convert their holdings into a new class of preferred
          stock.

          The Company has completed the conversion of the balance of its
          convertible debt and interest for 66,031,680 shares of common stock.

          The Company issued 85,000,000 shares of common stock to the
          convertible debt holders in settlement of a dispute.

          The Company issued 15,000,000 shares of preferred stock to Mojave Jet,
          LLC as a deposit on the purchase of jet aircraft (Boeing 727-200). The
          purchase price of the asset is approximately $1,600,000.


                                        7

<PAGE>

Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations
--------------------------------------------------------------------------------

The following discussion should be read in conjunction with the consolidated
financial statements and notes. In addition to historical information, this
discussion and analysis contains forward-looking statements that involve risks,
uncertainties and assumptions, which could cause actual results to differ
materially from Management's expectations. Factors that could cause differences
include, but are not limited to, continued reliance on external sources on
financing, expected market demand for the Auxer Group's products, fluctuations
in pricing for products distributed by the Auxer Group's subsidiaries and
products offered by competitors, as well as general conditions of the aviation
marketplace.

The Auxer Group is a holding company that consists of (4) four wholly owned
subsidiaries: Viva Airlines, Inc., CT Industries, Inc., Hardyston Distributors,
Inc. (doing business as The Mechanics Depot), and Universal Filtration
Industries, Inc. A previously wholly owned subsidiary (Harvey Westbury Corp.)
was spun off by Auxer during January, 2003 to a former officer and director of
the Company in exchange for the assumption of debts and related liabilities.
Viva Airlines, Inc. is a development stage company that will provide passenger
and cargo services to various destinations from its commercial hub in Santo
Domingo, Dominican Republic. CT Industries, Inc., Hardyston Distributors, Inc.
and Universal Filtration Industries, Inc. are all inactive and management does
not currently plan to resume their respective operations.

Results of Operations for the Three Months Ended March 31, 2002 and 2003.

The Auxer Group had sales of $0 for the quarter ended March 31, 2003 as compared
to sales of $1,004,513 for the quarter ended March 31, 2002. The decrease in
sales was attributed to the spin off of Harvey Westbury Corp.

The Auxer Group had net losses of $204,371 for the quarter ended March 31, 2003
as compared to net losses of $189,193 for the quarter ended March 31, 2002. The
increase in net losses was primarily attributed to the Company's decision to
develop its aviation related business segment and the decision to discontinue
its automotive business lines.

The Auxer Group had general administrative expenses of $166,155 for the quarter
ended March 31, 2003 as compared to general administrative expenses of $258,697
for the quarter ended March 31, 2002. The decrease in these expenses was
attributable to the Company's decision to develop its aviation related business
segment and to discontinue its automotive business lines.

The Auxer Group had interest expenses of $19,620 for the quarter ended March 31,
2003 as compared to $36,468 for the quarter ended March 31, 2002. The decrease
in these expenses was primarily due to the reduction of the interest paid as a
result of a reduction in the convertible note.

The Company did not report any revenue for the three month period ending March
31, 2003. The aviation industry subsidiary is a development stage company and is
the only active subsidiary. The aviation industry subsidiary is expected to
begin operations during the quarter ended June 30, 2003.

On January 3, 2002, The Auxer Group announced restructuring to accommodate
future acquisition opportunities. The restructuring is to take place during the
first quarter. Management has agreed to defer compensation for Mr. Chiaramonte,
our CEO. This restructuring phase has continued through the third quarter of
2002. To date, management's restructuring efforts have resulted in a cumulative
reduction of general & administrative expenses in excess of $1,765,000.
Additionally, we have relocated our administrative and operational facilities in
a continuing effort to reduce current expenses.

On January 11, 2002, CT Industries introduced its new website,
www.ctiprepaid.com. This site is an informational site on CT Industries'
products. We also plan to introduce new sites for our investor and distributor
companies as well. As of November 15, 2002, no new sites have been introduced.

On March 15, 2002, the Board of Directors approved the dissolution of Auxer
Telecom and consolidation of the telecom assets into CT Industries. Management's
plan was for CT Industries to continue to distribute prepaid phone cards. Due to
Auxer's inability to raise additional external financing, CT Industries has been
unable to continue to remain current on their terms with its carriers and has
resulted in the loss of its carriers which caused a termination of service. As
of November of 2002, our Telecommunications subsidiaries are inactive.

On April 15, 2002, Auxer announced its initial phase of restructuring neared
completion. We announced a reduction in loss due to restructuring. The reduction
in losses and reduction in general administrative expenses continued during the
three month period ended June 30, 2002 as well as the three month period ended
September 30, 2002.

On May 2, 2002, Auxer announced it has entered into an agreement with certain
debenture holders to settle its convertible debentures for $1 Million. Under the
terms of the agreement, 92 Million shares of common stock which were registered
under our Form SB-2 registration statement were issued and placed in escrow
based on a lock up arrangement. Upon the debenture holders receiving the
settlement payment, through a third party, the registration and debenture
agreements are to be retired. As of the three month period ended September 30,
2002, the debenture holders have not received adequate funds from the third
party to retire their debenture. Furthermore, the agreement has been terminated
for lack of funding and is now in negotiations for future settlement.

On May 7, 2002, Auxer announced that the Board of Directors is focusing its
corporate resources on sourcing acquisition candidates in the telecommunications
and technology industry sectors. Management has since identified candidates to
invest in and/or acquire within the Transportation Industry. As of the third
quarter ending September 30, 2002, Auxer has engaged several discussions with
merger candidates and continues to negotiate.

On May 21, 2002, Auxer announced an increase in revenues and a reduction of
expenses due to its restructuring initiatives. Our revenues have decreased and
our expenses continued to decrease in the three months ended September 30, 2002.

On June 20, 2002, Auxer announced sales for products sold by its automotive
group increased compared to last year for the three month period ended March 31,
2002 and March 31, 2001, respectively. Sales in the third quarter ended
September 30, 2002 have decreased compared to sales in the third quarter ended
September 30, 2001. These results are primarily a result of the operating
subsidiaries inability to purchase adequate inventory to grow and/or maintain
sales of the telecommunications and automotive products.

On July 3, 2002, Auxer announced Harvey Westbury completed an agreement to
produce, manufacture and distribute a line of motor vehicle filters. We plan to
introduce this line at the 2002 AAPEX Show in Las Vegas. As of the third quarter
ending September 30, 2002, We have been successful in commencing our launch of
our new DiamondTM Oil & Air filter lines. However, the new product lines were
not introduced at the 2002 AAPEX Show due to financial restrictions from the
restructuring initiated in January 2002.

On September 12, 2002, we announced that we launched a search for an interim CEO
to focus on our acquisition strategy. As of January 15, 2003 and in connection
with a stock exchange agreement with Viva Airlines, Inc. and a plan of
reorganization, Robert J. Scott was appointed as the Company CEO.

On December 2, 2002, Auxer announced that it signed a letter of intent ot
acquire Viva Airlines based in San Juan, Puerto Rico.

On December 17, 2002, Auxer announced that its merger candidate, Viva Airlines
was planning to change its name to Viva International, Inc. As of March 31,
2003, the name change had not been completed and management has decided rather
than to change the name of Viva Airlines, Inc. that it would seek to change
Auxer's name to Viva International, Inc.

On January 15, 2003, Auxer completed a stock exchange agreement and plan of
reorganization with Viva Airlines, Inc.

On February 19, 2003, Auxer announced that Viva Airlines, Inc. had agreed to
acquire Aerocontinente Dominicana, S.A. for $1,200,000 in cash. The Company
failed to complete this agreement and abandoned its attempt to complete the
acquisition.

On February 20, 2003, Auxer announced that Viva Airlines, Inc. had entered into
a purchase agreement with Mojave Jet for 2 Boeing 727-200 aircraft. The purchase
agreement remains open as of March 31, 2003.

On March 10, 2003, Auxer announced that Viva Airlines, Inc. was close to
finalizing its agreement to acquire a 49% interest in Queen Air, Aeronaves
Queen, S. A. The Company formally closed on this agreement on May 14, 2003.

On March 19, 2003, Auxer announced that it is considering exiting the depository
trust and clearing system (DTC). The Company has not yet filed its request for
consideration of removal from the system.

On March 21, 2003, Auxer announced that Viva Airlines, Inc. has agreed to
purchase its fuel requirements and supplies from World Fuel Services. An account
relationship has been established even though Viva has yet to commence actual
operations.

On March 27, 2003, Auxer announced that it had made executive appointments at
its Viva Airline subsidiary. Rudy Dominguez was appointed as President and Chief
Operating Officer and Oscar Hasan was appointed as Vice President of Sales &
Marketing. Mr. Dominguez has yet to assume his official duties. Mr. Hasan
assumed his official duties as of April 1, 2003.

Sources of Liquidity

At March 31, 2003, the Company has $163 of available cash. Since inception the
Company has accumulated a net loss of approximately $11,252,732.

The Auxer Group, Inc. will require a minimum of $3,000,000 of working capital to
complete Viva Airlines, Inc, transition from a development stage company to full
operation.

Auxer does not currently have the funds necessary to provide working and
expansion capital to Viva Airlines, Inc. Auxer will only be able to provide the
needed capital by raising additional funds.

The inability to raise funds or a continued lack of funds could result in the
failure to complete needed acquisitions of certain aviation assets or payment of
certain related expenses that would delay or prevent the commencement of the
operation of Viva Airlines, Inc.

Management is optimistic that the Company will be able to borrow sufficient
capital to fund Viva Airlines, Inc.

Any forward-looking statements included in this Form 10-QSB reflect management's
best judgement based on factors currently known and involve risks and
uncertainties. Actual results may vary materially.

Item 3. Controls and Procedures
-------------------------------

(a)  Evaluation of disclosure controls and procedures.

Our Principal Executive Officer and Principal 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.




                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.  The Auxer Group has the following pending or
threatened litigation:

(1)  The Auxer Group, Auxer Telecom, Inc. and CT Industries, Inc. vs. Husni
     Hassan, Clifton Telecard Alliance, Kattosko Communications, Mohd Qattous
     and Mustafa Qattous - Superior Court of New Jersey, Law Division, Passaic
     County - Index No. L1120-02, filed on February 22, 2002. We are requesting
     a sum of $1,250,000 plus interest for default of promissory note, violation
     of stock purchase agreement and violation of employment contract. On April
     12, 2002, Clifton Telecard Alliance, Kattosko Communications, Mohd Qattous
     and Mustafa Qattous filed a counterclaim for violation of stock purchase
     agreement. The parties have entered into settlement negotiations. The
     present proposal is for the defendant, Kattosko Communications, to pay the
     plaintiffs $15,000. In return for such consideration, plaintiffs agree to
     allow Mustafa Qattous' stock to be traded and sold and undertake certain
     filings and provide other financial information for Clifton Telecard, Inc.

(2)  Trans National Communications vs. Auxer Telecom Inc. dba Auxer Group-
     Superior Court of New Jersey Law Division, Passaic County - Docket No.
     L793-02. On April 17, 2002, a judgment in the amount of $339,381.84 was
     obtained against the defendants. The plaintiff, Trans National
     Communications attached our bank account even though the responsible party
     was Auxer Telecom. Our litigation counsel successfully separated the
     defendants in this case and the judgment is only against Auxer Telecom
     Inc., our inactive subsidiary. The attachment on our bank account should be
     released shortly. We do not intend to contest the judgment against Auxer
     Telecom Inc. since it was dissolved on March 18, 2002.

(3)  International Access dba Access International, Inc. v. CT Industries, Inc.
     - Los Angeles Superior Court, Central District - Case No. BC 282393, filed
     on September 30, 2002. International Access ("IA") claims that CT
     Industries, Inc., our subsidiary, entered into an agreement (Switch Port
     Lease and Service Agreement) with IA whereby IA would provide one year of
     telecommunications services to CT Industries. IA claims it provided the
     services and was not paid because checks from CT Industries were returned
     for insufficient funds. IA is requesting payment of $76,095.34 plus 10%
     interest per annum from March 13, 2002. We do not intend to respond to this
     lawsuit and will allow a judgment to be entered against CT Industries, our
     inactive subsidiary.

(4)  Mahure, LLC vs. Auxer Group, Inc. - Superior Court of New Jersey, Law
     Division, Passaic County; Docket No. L-4245-02. Filed August 14, 2002.
     Mahure, LLC, was our landlord for the premises known as 12 Andrews Drive,
     West Patterson, New Jersey, our former business address. It is suing us for
     failure to pay our base rent of $7,083.33 from October 2001 throught August
     2002, plus 50% of real estate taxes, insurance premiums and other fixed
     charges contained in our lease. Mahure, LLC is requesting $58,465.49
     attorney's fees, cost of suit and interest. We are trying to settle this
     matter.

(5)  Canete Landscape, Inc. vs. Auxer Group - Superior Court of New Jersey, Law
     Division, Pasaic County - Docket No. DC-11893-02. Filed October 25, 2002.
     Plaintiff, Canete Landscape claims that we owe them $2,353.90 together with
     interest and costs of suit. We intend to settle this matter.

(6)  Colbie Pacific Capital - On April 24, 2002, we entered into a Modification
     and Restructuring Agreement with Colbie Pacific Capital. The agreement
     required us tomake a $350,000 payment to Colbie by September 28, 2002. We
     failed to make such payment and the sum of $450,000 is now due to Colbie
     from us. On October 8, 2002, we received a settlement offer from Colbie's
     attorney whereby Colbie agreed to allow us to sell certain assets and make
     our required payment. We are trying to sell such assets, specifically
     telecommunications switching equipment.

(7)  Abel Estrada vs. CT Industries, Inc. - Labor Commissioner, State of
     California - State Case Number 06-67045 JAH - Hearing Date: November 20,
     2002 in Los Angeles, California. Abel Estrada, a former employee of our
     subsidiary, CT Industries, Inc. filed a claim against CT in the amount of
     $10,376.08 with the Labor Commissioner, State of California, for the
     following claims: unpaid wages - $1,068; unpaid commissions - $8,000;
     unpaid vacation time - $861.33; unpaid expenses $43.75; and unauthorized
     deduction from wages - $403.00. CT Industries does not intend to appear at
     the hearing and contest this matter.

(8)  Ronald Shaver and Ryan Shaver - (a) On September 30, 2002, our litigation
     counsel sent a letter to Ryan Shaver, our former employee, requesting the
     return of equipment and a data base taken by Ryan and his brother, Ronald
     Shaver, our former officer; (b) On October 30, 2002, Ronald Shaver sent us
     a letter dated October 10, 2002, from the State of New Jersey, Department
     of the Treasury, Division of Taxation regarding outstanding tax liabilities
     for Clifton Telecard Inc., formerly owned by us; and (c) On August 30,
     2002, we received letters from Ryan Shaver and Ronald Shaver requesting
     payments we owed each of them under their terminated employment agreements,
     continuation of healthcare, settlement of cash compensation and equity
     obligations. They did not specify the amount owed.

(9)  Panel Prints Inc. v. Harvey Westbury Corporation - Superior Court of New
     Jersey, Law Division, Passaic COunty - Docket No. DC-004164-02. We agreed
     to pay Panel Prints $3,000. To date, we have paid it $1,500 and are paying
     the balance of $1,500 at a rate of $500 per month.

(10) One of our shareholders, Daniel Kahraman, has requested that we have an
     annual shareholders meeting. We have informed him that we do not have
     sufficient funds to undertake our annual meeting. Mr. Kahraman has
     responded that he will be taking legal action against us in the future.

(11) Paul R. Lydiate - Labor Claim in California against Auxer Telecom Inc. for
     $20,192. We did not appear at the hearing on May 6, 2002. Auxer Telecom
     Inc. was dissolved on March 18, 2002.

Item 2. Changes in Securities.

On May 2, 2002, we entered into an agreement whereby 8% convertible debentures
totaling $894,185 will be retired for one million dollars ($1,000,000) for
principal and accrued interest. The $1,000,000 is reduced by any proceeds
received by the debenture holder from the conversion of the debt into common
stock and the sale of common stock. For the three months ended March 31, 2003
$86,710 of debt was converted into 63,134,800 shares of common stock.

Item 3.  Defaults Upon Senior Securities.

 Not Applicable

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

None

Item 5.  Other Information.

None

Item 6.  Exhibits and Reports of Form 8-K.

None

     (a)  Exhibits required by Item 601 of Regulation S-B.    None

     (b)  Reports of Form 8-K.   None


                                   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 May 20, 2003.

                             THE AUXER GROUP, INC.

Date:  May 20, 2003          By:  /s/   Robert J. Scott
                             ---------------------------------
                             Robert J. Scott
                             President


--------------------------------------------------------------------------------

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

I, Robert J. Scott  certify that:

1.    I have reviewed this quarterly report on Form 10-QSB of The Auxer Group,
      Inc.

2.    Based on my knowledge, the 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 this
      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:     May 20, 2003

/s/    Robert J. Scott
----------------------------
Robert J. Scott.
Principal Executive Officer
Principal Financial Officer