10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2018
	OR
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-30675

EnXnet, Inc.

(Name of issuer in its charter)

Oklahoma	73-1561191
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

7450 S Winston Ave - Tulsa, Ok 74136

(Address of principal executive offices & zip code)

(918) 494 - 6663

Registrant’s telephone number, including area code:

Indicate by check mark 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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.   YES [X]     NO [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (SS 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES [ ]     NO [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	[   ]	Accelerated Filer	[   ]
Non-accelerated Filer	[   ]	Smaller Reporting Company	[X]
(Do not check if smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES [ ]     NO [X]

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of November 14, 2018, there were outstanding 58,376,518 shares of the registrant’s common stock, $0.00005 par value.

	Table of Contents
		Page
Item 1.	PART I. FINANCIAL INFORMATION Financial Statements
	Consolidated Balance Sheets as of September 30, 2018 and March 31, 2018 (unaudited)	3
	Consolidated Statements of Operations for the Three and Six months ended September 30, 2018 and 2017 (unaudited)	4
	Consolidated Statements of Cash Flows for the Six months ended September 30, 2018 and 2017 (unaudited)	5
	Notes to Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Controls and Procedures	14

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	14
Item 1A.	Risk Factors	14
Item 6.	Exhibits and Reports on Form 8-K	15
Signatures		16
Exhibit Index		17

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

ENXNET, INC

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30, 2018			March 31, 2018
ASSETS
CURRENT ASSETS
Cash	$	8,922		$	21,744
Restricted cash		2,313			19,620
Prepaid expenses		—			1,118
TOTAL CURRENT ASSETS		11,235			42,482
OTHER ASSETS
Oil and gas cash bond		100,000			100,000
TOTAL OTHER ASSETS		100,000			100,000
TOTAL ASSETS	$	111,235		$	142,482
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	694,281		$	674,297
Advances from officer - related party		10,500			25,500
Advances from stockholder		31,000			31,000
Note payable-stockholder		—			100,000
Note payable-related party		—			—
Convertible notes payable		400,000			300,000
Convertible notes payable - related party		935,101			920,101
TOTAL CURRENT LIABILITIES		2,070,882			2,050,898
LONG-TERM LIABILITIES
Convertible note payable		—			100,000
TOTAL LONG-TERM LIABILITIES		—			100,000
TOTAL LIABILITIES		2,070,882			2,150,898
STOCKHOLDERS’ DEFICIT
Common stock, $0.00005 par value; 200,000,000 shares authorized, 58,376,518 and 55,276,518 shares issued and outstanding, respectively		2,919			2,764
Additional paid-in capital		5,838,671			5,689,654
Accumulated deficit		(7,701,237	)		(7,600,834	)
Other comprehensive loss		(100,000	)		(100,000	)
TOTAL STOCKHOLDERS’ DEFICIT		(1,959,647	)		(2,008,416	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	111,235		$	142,482

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

3

ENXNET, INC

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended September 30,						For the Six Months Ended September 30,
EXPENSES		2018			2017			2018			2017
Oil and gas exploration	$	—		$	—		$	—		$	600
Impairment of oil and gas properties, unproven		15,366			—			32,494			—
Consulting		1,672			12,196			1,672			12,196
Payroll		1,500			18,998			3,000			20,498
Professional services		5,827			14,187			20,934			20,210
Occupancy and offices		1,578			1,235			3,466			3,089
Travel		295			367			520			617
Total Expenses		26,238			46,983			62,086			57,210
LOSS FROM OPERATIONS		(26,238	)		(46,983	)		(62,086	)		(57,210	)
OTHER EXPENSE
Loss on conversion of notes payable		(17,500	)		—			(17,500	)		—
Interest expense		(9,934	)		(15,056	)		(20,817	)		(28,425	)
Total Other Expenses	$	(27,434	)	$	(15,056	)	$	(38,317	)	$	(28,425	)
NET LOSS	$	(53,672	)	$	(62,039	)	$	(100,403	)	$	(85,635	)
BASIC AND DILUTED NET LOSS PER SHARE	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED		57,096,298			54,899,595			56,181,436			54,668,139

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

4

ENXNET, INC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended September 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(100,403	)	$	(85,635	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for additional interest		—			8,300
Common stock issued for compensation		—			7,650
Stock options extended		1,672			22,044
Impairment of oil and gas properties, unproved		32,494			—
Loss on conversion of notes payable		17,500			—
Changes in operating assets and liabilities:
Prepaid expenses		1,118			—
Accounts payable & accrued expenses		19,984			17,414
Net cash used in operating activities		(27,635	)		(30,227	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to oil and gas properties, unproved		(32,494	)		(32,821	)
Purchase of cash bond		—			(100,000	)
Net cash used in investing activities		(32,494	)		(132,821	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances from officer-related party		—			500
Payment of advances from officer-related party		—			(500	)
Proceeds from convertible note payable-stockholder		—			50,000
Proceeds from convertible notes payable – related parties		—			16,000
Proceeds from note payable-stockholder		—			100,000
Proceeds from sales of stock		30,000			—
Net cash provided by financing activities		30,000			166,000
NET CHANGE IN CASH AND RESTRICTED CASH		(30,129	)		2,952
CASH AND RESTRICTED CASH - Beginning of period		41,364			60,400
CASH AND RESTRICTED CASH - End of period	$	11,235		$	63,352
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for interest	$	—		$	2,750
Cash paid for taxes	$	—		$	—
NON-CASH FINANCING AND INVESTING TRANSACTIONS:
Conversion of advances from officer-related party to convertible notes payable-related party	$	15,000		$	6,000
Conversion of notes payable stockholder with stock issuance	$	100,000		$	—

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

5

ENXNET, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of EnXnet, Inc. (“EnXnet” or “the Company”) for the six months ended September 30, 2018 have been prepared in accordance with generally accepted accounting principles in the United States of America, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. Accordingly, the financial statements do not include all information and footnotes required by generally accepted accounting principles in the United States for complete annual financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s March 31, 2018 Annual Report on Form 10-K.

Reclassification

Certain amounts in the 2017 financial statements have been reclassified to conform to the 2018 financial presentation. These reclassifications have no impact on net loss.

Cash and Restricted Cash     Cash and restricted cash consist of the following:
	September 30, 2018		March 31, 2018
Cash		8,922		21,744
Restricted cash		2,313		19,620
Total cash and restricted cash	$	11,235	$	41,364

Recent Accounting Pronouncements

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for all interim and annual reporting periods beginning after December 15, 2017. The attached financial statements include the adoption of ASU 2016-18 which was adopted by the Company on April 1, 2018. The adoption did not have a material impact on the Company’s Consolidated Financial Statements “, other than certain reclassifications have been made in the Company’s consolidated statements of cash flows to conform with the current period presentation.

The Company does not expect the adoption of other recently issued accounting pronouncements to have a significant impact on the Company's results of operation, financial position or cash flows.

NOTE 2 – GOING CONCERN

The Company has a working capital deficit and has incurred losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

Management of the Company has undertaken certain actions to address these conditions. Funds required to carry out management’s plans are expected to be derived from future stock sales and borrowings from outside parties. There can be no assurances that the Company will be successful in executing its plans.

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NOTE 3 – NOTES PAYABLE

Note payable-stockholder consists of the following:

	September 30, 2018		March 31, 2018
5.75% note payable to a stockholder, due May 31, 2018.	$	—	$	100,000

Convertible notes payable-related party consists of the following:
	September 30, 2018	March 31, 2018
2% convertible notes payable to Ryan Corley, President of the Company, due on demand, convertible into a maximum of 38,238,984 common shares	764,455	749,455
2% convertible note payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 978,000 common shares	48,900	48,900
3% convertible notes payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 1,619,500 common shares	111,350	111,350
2% convertible notes payable to Douglas Goodsell, a related party, due on demand, convertible into a maximum of 519,828 common shares	10,396	10,396
Total notes payable-related party	$ 935,101	$ 920,101
Convertible notes payable consists of the following:
	September 30, 2018	March 31, 2018
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,	50,000	-
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,	50,000	-
7% convertible notes payable to stockholder, which is past due, convertible into a maximum of 250,000 common shares,	50,000	50,000
7% convertible notes payable to stockholder, due August 12, 2018 convertible into a maximum of 250,000 common shares,	50,000	50,000
4% convertible notes payable to a stockholder, due on demand, convertible into a maximum of 350,000 common shares	175,000	175,000
2% convertible notes payable to stockholders, due on demand, convertible into a maximum of 1,100,000 common shares	25,000	25,000
Total notes payable	$ 400,000	$ 300,000
Long Term Convertible notes payable consists of the following:
	September 30, 2018	March 31, 2018
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,	-	50,000
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,	-	50,000
Total notes payable	$ -	$ 100,000

7

On April 1, 2018, the Company converted $15,000 of the advances from an officer into a convertible note payable. The note bears interest of 2% and is convertible with the accrued interest into common shares of the Company at a rate of $0.025 per share.

In April 2018, our CEO and President acquired a $50,000 interest in a note payable-stockholder that was due May 17, 2018, On August 13, 2018 the Company paid this note with the issuance of 1,250,000 shares of stock. In addition, on August 13, 2018, The Company issued another 1,250,000 shares of stock to pay a note payable-stockholder in the amount of $50,000. A total of 2,500,000 shares of stock were issued to pay notes payable aggregating $100,000. The fair market value of the 2,500,000 shares issued was $117,500. The Company recognized a loss on conversion of the notes payable in the amount of $17,500.

NOTE 4 – RELATED PARTY TRANSACTIONS

Advances from Stockholder:

Advances from a stockholder at September 30, 2018 and March 31, 2018 was $31,000.

Advances from Officer:

Our CEO, Ryan Corley, has made advances to the Company in prior years. During the six months ended September 30, 2018 and the year ended March 31, 2018, respectively, the CEO made additional unsecured advances totaling $-0- and $15,500. During the six months ended September 30, 2018 and the year ended March 31, 2018, the Company made payments on these advances of $-0- and $500, respectively. At September 30, 2018 and March 31, 2018, respectively, advances from the CEO were $-0- and $15,000, respectively.

Accrued Interest - officer

The Company has notes payable to the CEO in the aggregate amount of $764,455 and $749,455 as of September 30, 2018 and March 31, 2018, respectively. Accrued interest owed on these notes at September 30, 2018 and March 31, 2018 is $212,506 and $204,861, respectively. These notes and accrued interest are convertible into 42,388,166 and 41,411,316 shares of restricted common stock of the Company, as of September 30, 2018 and March 31, 2018 respectively.

Advances from officer - related party

At September 30, 2018 and March 31, 2018, advances from the entity controlled by the CEO was $10,500 and notes payable totaled $160,250. Accrued interest owed on these notes at September 30, 2018 and March 31, 2018 is $36,557 and $35,188, respectively. These notes and accrued interest are convertible into 3,180,115 and 3,155,917 shares of restricted common stock of the Company, as of September 30, 2018 and March 31, 2018, respectively.

Oil and Gas Leases

During the six months ended September 30, 2018, the Company paid $100 in transfer fees to acquire a lease on an additional 640 acres in the Rocky Mountain range located in the state of Colorado for a 4-year term. The lease was acquired from our President and CEO. Each year, the Company is responsible for making additional lease payments of $2.50 per acre to keep the lease

The Company conducts its business from the office of its CEO, Ryan Corley, rent free. 

NOTE 5 – STOCK OPTIONS

On July 24, 2001, the Company filed with the SEC Form S-8, for its 2002 Stock Option Plan, (the Plan). An aggregate amount of common stock that may be awarded and purchased under the Plan is 3,000,000 shares of the Company’s common stock.

On July 10, 2018, the Company extended and repriced options that were expiring. A total of 150,000 options were expiring, of these 100,000 options were extended for 1 years at an exercise price of $0.25 per option. The Company used the Black-Scholes option pricing method to determine if there were additional compensation expenses to recognize. The extension and repricing resulted in the recognition of $1,672 in compensation expense.

8

A summary of the status of the Company’s stock options as of September 30, 2018 is presented below:

	September 30, 2018
Options outstanding at beginning of year		1,290,000
Options granted		—
Options exercised		—
Options expired		(50,000	)
Options outstanding at end of year		1,240,000

The following table summarizes the information about the stock options as of September 30, 2018:

Weighted Average of Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life Years		Number Exercisable
0.08	900,000		3.80	900,000
0.10	240,000		3.80	240,000
0.25	100,000		0.80	100,000
$ 0.08 - 0.25	1,240,000		3.56	1,240,000

NOTE 6 – COMMON STOCK TRANSACTIONS

On July 16, 2018, the Company issued 600,000 common shares in exchange for $30,000 in cash.

On August 13, 2018, the Company issued 2,500,000 common shares to retire two note payable in the aggregate amount of $100,000. These notes were in default. Prior to retiring the note, our CEO acquired a one-half interest in the note. Of these shares, 1,250,000 were issued to the CEO as payment of the note. The fair market value of the 2,500,000 shares issued was $117,500. The Company recognized a loss on conversion of the notes payable in the amount of $17,500.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS.

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Exchange Act which represent the expectations or beliefs concerning future events that involve risks and uncertainties, including but not limited to the demand for Company products and services and the costs associated with such goods and services. All other statements other than statements of historical fact included in this Quarterly Report including, without limitation, the statements under “Management’s Discussion and Analysis or Plan of Operations” and elsewhere in the Quarterly Report, are forward-looking statements. While the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.

The following discussion of the results of operations and financial conditions should be read in conjunction with the financial statements and related notes appearing in this report.

EnXnet, Inc. (the “Company”) was formed under the laws of the State of Oklahoma on March 30, 1999. On August 7, 2015, the Company incorporated EnXnet Energy Company LLC. in the State of Colorado as a wholly owned subsidiary. EnXnet Inc. and its wholly owned subsidiary, EnXnet Energy Company, LLC. (“the Company”) is a natural gas and petroleum exploitation, development and production company engaged in locating and developing hydrocarbon resources, primarily in the Rocky Mountain region. The Company’s principal business strategy is to enhance stockholder value by generating and developing high-potential exploitation resources in these areas. The Company’s principal business is the acquisition of leasehold interests in petroleum and natural gas rights, either directly or indirectly, and the exploitation and development of properties subject to these leases. The Company has leased property in Colorado and is currently searching for additional opportunities in the natural gas and petroleum industry. Our goal is to lease the oil and gas properties of acreage that has a high likelihood of becoming a producing property. We will require additional funding to drill and complete a producing natural gas and petroleum well.

The Company currently can satisfy its current cash requirements for approximately 90 days and will raise additional working capital by the sale of shares of the Company common stock to select perspective individuals and from additional borrowings. This plan should provide the additional necessary funds required to enable the Company to initiate its drilling program on the oil and gas lease properties.

The Company does not anticipate any significant cash requirements for the purchase of any facilities. The Company currently has no full-time employee on the payroll.

Results of Operations – Three months ended September 30, 2018 and 2017.

The Company incurred operating expenses of $26,238 and $ 46,983 for the three months ended September 30, 2018 and 2017, respectively, a decrease of $20,745. The decrease in operating expenses for the three months ended September 30, 2018 when compared to the three-month period ended September 30, 2017 consist of:

· Increase in the impairment of oil and gas properties of $15,366

· Impairment of oil and gas properties, unproved increased $15,366 for the three months ended September 30, 2018 from the previous year. In the current period the Company determined that carrying value of the unproved oil and gas properties was not supported as we have not been able to raise funds to complete a drilling program on these properties.

· Decrease in Consulting services of $10,524.

· Consulting and payroll expenses for the prior year included the compensation value of stock options of $9,946 that were extended, and the valuation of common stock issued for compensation of $2,250. In the current year stock options to a consultant were extended with a compensation value of $1,672.

· Decrease in Payroll expense of $17,498.

· Payroll expenses for the prior year included the compensation value of stock options of $12,098 that were extended, and the valuation of common stock issued for compensation of $5,400.

· Decrease in professional services of $8,360

· Professional services in the three months ended September 30, 2018 includes fees for our year end reporting cycle. Similar fees for the prior year’s annual reporting cycle were not recorded until the following quarter when the annual report was filed.

10

During the three months ended September 30, 2018 and 2017 we incurred net losses of $53,672 and $62,039, respectively.

Results of Operations – Six months ended September 30, 2018 and 2017.

The Company incurred operating expenses of $62,086 and $57,210 for the six months ended September 30, 2018 and 2017, respectively, an increase of $4,876. The increase in operating expenses for the six months ended September 30, 2018 when compared to the six-month period ended September 30, 2017 consist of:

· Increase in the impairment of oil and gas properties of $32,494

· Impairment of oil and gas properties, unproved increased $32,494 for the six months ended September 30, 2018 from the previous year. In the current period the Company determined that carrying value of the unproved oil and gas properties was not supported as we have not been able to raise funds to complete a drilling program on these properties.

· Decrease in Consulting services of $10,524.

· Consulting and payroll expenses for the prior year included the compensation value of stock options of $9,946 that were extended, and the valuation of common stock issued for compensation of $2,250. In the current year stock options to a consultant were extended with a compensation value of $1,672.

· Decrease in Payroll expense of $17,498.

· Payroll expenses for the prior year included the compensation value of stock options of $12,098 that were extended, and the valuation of common stock issued for compensation of $5,400.

During the six months ended September 30, 2018 and 2017 we incurred net losses of $100,403 and $85,635, respectively.

Liquidity and Capital Resources.

From inception through September 30, 2018, the Company has issued 58,376,518 shares of its Common Stock to officers, directors and outside shareholders. The Company has little operating history and no material assets other than the oil and gas cash bond and 22,507 acres of mineral lease properties. The Company has $8,922 of unrestricted cash and $2,313 of restricted cash as of September 30, 2018.

The Company has incurred operating losses each year since its inception and has a working capital deficit at September 30, 2018. At September 30, 2018 and March 31, 2018, the working capital deficit was $2,059,647 and $2,008,416, respectively. The working capital deficit and operating losses raise substantial doubt about the Company’s ability to continue as a going concern. As a result of these factors, the Company’s independent certified public accountants have included an explanatory paragraph in their reports on the Company’s March 31, 2018 financial statements which expressed substantial doubt about the Company’s ability to continue as a going concern.

Contractual Obligations.

At the present time, the Company has no material commitments for capital expenditures. If capital expenditures are required after operations commence, the Company will pay for the same through the sale of common stock, or through loans from third

parties. There is no assurance, however, that such financing will be available and in the event such financing is not available, the Company may have to cease operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES.

Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements. These statements have been prepared in accordance with generally accepted accounting principles in the United States of America.

Use of estimates in preparation of financial statements

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, based on historical experience, and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The following critical accounting policies rely upon assumptions, judgments and estimates and were used in the preparation of our consolidated financial statements:

11

Cash and cash equivalents

Cash equivalents are highly liquid investments with an original maturity of three months or less.

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States necessarily requires management to make estimates and assumptions that affect the amounts reported in the financial statements. We regularly evaluate estimates and judgments based on historical experience and other relevant facts and circumstances. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Under FASB ASC 825 the Company is required to disclose the fair value of financial instruments for which it is practicable to estimate value.

The Company’s financial instruments consist of cash, accounts receivable, accounts payable, accrued liabilities and debt. The Company believes that the carrying amounts approximate fair value for all such instruments.

FASB ASC 820 defines fair value, establishes a framework for measurement, and expands disclosure about fair value measurements. Topic No. 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Topic No. 820 classifies the inputs used to measure fair value into the following hierarchy:

Level 1:	Quoted prices for identical assets or liabilities in active markets.
Level 2:	Quoted market prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3:	Pricing inputs are unobservable for the assets and liabilities, including situations in which there is little to no market activity.

Stock Based Compensation

FASB ASC 718 requires that measurement of the cost of employee services received in exchange for an award of equity instruments be based on the grant-date fair value of the award. Such costs are recorded over the periods employees are required to render services in exchange for the awards.

Income taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse.

We have net operating loss carryforwards available to reduce future taxable income. Future tax benefits for these net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that we will not realize a future tax benefit, a valuation allowance is established.

Basic and diluted net loss per share

Basic loss per share is computed using the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the dilutive effects of common stock equivalents on an “as if converted” basis. For the periods ended September 30, 2018 and 2017, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share

Recent Accounting Pronouncements

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for all interim and annual reporting periods beginning after December 15, 2017. The attached financial statements include the adoption of ASU 2016-18. The adoption did not have a material impact on the Company’s Consolidated Financial Statements “, other than certain reclassifications have been made in the Company’s consolidated statements of cash flows to conform with the current period presentation.

12

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operation, financial position or cash flows.

Unaudited Financial Statements

The accompanying unaudited financial statements for the six months ended September 30, 2018 have been prepared in accordance with generally accepted accounting principles for interim financia1 information. In the opinion of management all adjustments considered necessary for a fair presentation, which consist of normal recurring adjustments, have been included. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s March 31, 2018 Annual Report on Form 10-K.

Off Balance Sheet Arrangements

We currently have no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

CURRENT TRADING MARKET FOR THE COMPANY’S SECURITIES.

Currently the Company’s stock is traded under the symbol “EXNT” on the OTC PINK. There can be no assurance that an active or regular trading market for the common stock will develop or that, if developed, will be sustained. Various factors, such as operating results, changes in laws, rules or regulations, general market fluctuations, changes in financial estimates by securities analysts and other factors may have a significant impact on the market of the Company securities. The market price for the securities of public companies often experience wide fluctuations that are not necessarily related to the operating performance of such public companies such as high interest rates or impact of overseas markets.

13

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable

ITEM 4. CONTROL AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures. Our Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation as of the end of the period covered by this report, that our disclosure controls and procedures (as defined in Rules 13(a)-15(e) under the Securities Act of 1934, as amended) are not effective to ensure that all information required to be disclosed by us in the reports filed or submitted by us under the Securities and Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to the management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate and allow timely decisions regarding required disclosure.

Changes in Internal Controls. In connection with the above-referenced evaluation, no change in our internal control over financial reporting occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

The Company is not involved in litigation at this time. We may from time to time be a party to various legal actions in the ordinary course of business. There can be no assurance that the Company will not be a party to litigation in the future that could have an adverse effect on the Company.

ITEM 1A. RISK FACTORS.

There have been no material changes with regard to the risk factors previously disclosed in our most recent Annual Report on Form 10- K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

14

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

The following are included herein: The following are included herein:

		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
3.1	Articles of Incorporation.	10-SB	5/22/00	3.1
3.2	First Amendment to Articles of Incorporation.	10-SB	5/22/00	3.2
3.3	Second Amendment to Articles of Incorporation.	10-SB	5/22/00	3.3
3.4	Bylaws.	10-SB	5/22/00	3.4
10.1	Sub-License Agreement with Ryan Corley as Nominee.	10-SB	5/22/00	10.1
10.2	License agreement for Clear Video.	10-SB	5/22/00	10.2
10.3	License agreement for Clear Video – addendum.	10-SB	5/22/00	10.3
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
101.INS	XBRL Instance Document.				X
101.SCH	XBRL Taxonomy Extension – Schema.				X
101.CAL	XBRL Taxonomy Extension – Calculations.				X
101.DEF	XBRL Taxonomy Extension – Definitions.				X
101.LAB	XBRL Taxonomy Extension – Labels.				X
101.PRE	XBRL Taxonomy Extension – Presentation.				X

15

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 14th day of November 2018.

ENXNET, INC.
(the “Registrant”)
BY:	RYAN CORLEY
	Ryan Corley
	President, Principal Executive Officer and a member of the Board of Directors
BY:	STEPHEN HOELSCHER
	Stephen Hoelscher
	Principal Financial Officer and Principal Accounting Officer

16

EXHIBIT INDEX 

		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
3.1	Articles of Incorporation.	10-SB	5/22/00	3.1
3.2	First Amendment to Articles of Incorporation.	10-SB	5/22/00	3.2
3.3	Second Amendment to Articles of Incorporation.	10-SB	5/22/00	3.3
3.4	Bylaws.	10-SB	5/22/00	3.4
10.1	Sub-License Agreement with Ryan Corley as Nominee.	10-SB	5/22/00	10.1
10.2	License agreement for Clear Video.	10-SB	5/22/00	10.2
10.3	License agreement for Clear Video – addendum.	10-SB	5/22/00	10.3
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
101.INS	XBRL Instance Document.				X
101.SCH	XBRL Taxonomy Extension – Schema.				X
101.CAL	XBRL Taxonomy Extension – Calculations.				X
101.DEF	XBRL Taxonomy Extension – Definitions.				X
101.LAB	XBRL Taxonomy Extension – Labels.				X
101.PRE	XBRL Taxonomy Extension – Presentation.				X

17

EX-31.1

Exhibit 31-1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Ryan Corley, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of EnXnet, Inc.;

2.     Based on my knowledge, this 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 report;

3.     Based on my knowledge, the financial statements, and other financial information included in this 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 report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a)            designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)            designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)            evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)            disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions);

a)            all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)            any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2018

By: /s/ Ryan Corley

Chief Executive Officer and President

EX-31.2

Exhibit 31-2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen J. Hoelscher, certify that:

1.     I have reviewed this Quarterly Report on Form 10-Q of EnXnet, Inc.;

2.     Based on my knowledge, this 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 report;

3.     Based on my knowledge, the financial statements, and other financial information included in this 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 report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a)            designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)            designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)            evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)            disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.     The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions);

a)            all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)            any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2018

By: /s/Stephen J. Hoelscher

Stephen J. Hoelscher, Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of EnXnet, Inc. (the “Registrant”) on Form 10-Q for the quarter ending September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), we, Ryan Corley, CEO and Stephen J. Hoelscher, CFO of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that:

(1)  The Quarterly Report 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 the Quarterly Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant.

Date:	November 14, 2018	By:	/s/Ryan Corley
Date:	November 14, 2018	By:	Ryan Corley, Chief Executive Officer and President /s/Stephen J. Hoelscher
			Stephen J. Hoelscher, Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2018	Nov. 14, 2018
Document And Entity Information
Entity Registrant Name	ENXNET INC
Entity Central Index Key	0001083706
Document Type	10-Q
Trading Symbol	EXNT
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		58,376,518
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2018

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2018	Mar. 31, 2017
CURRENT ASSETS
Cash	$ 8,922	$ 21,744
Restricted cash	2,313	19,620
Prepaid expenses		1,118
TOTAL CURRENT ASSETS	11,235	42,482
OTHER ASSETS
Oil and gas cash bond	100,000	100,000
TOTAL OTHER ASSETS	100,000	100,000
TOTAL ASSETS	111,235	142,482
CURRENT LIABILITIES
Accounts payable and accrued expenses	694,281	674,297
Advances from officer - related party	10,500	25,500
Advances from stockholder	31,000	31,000
Note payable - stockholder		100,000
Note payable-related party
Convertible notes payable	400,000	300,000
Convertible notes payable - related parties	935,101	920,101
TOTAL CURRENT LIABILITIES	2,070,882	2,050,898
LONG-TERM LIABILITIES
Convertible note payable		100,000
TOTAL LONG-TERM LIABILITIES		100,000
TOTAL LIABILITIES	2,070,882	2,150,898
STOCKHOLDERS' DEFICIT
Common stock, $0.00005 par value; 200,000,000 shares authorized, 58,376,518 and 55,276,518 shares issued and outstanding, respectively	2,919	2,764
Additional paid-in capital	5,838,671	5,689,654
Accumulated deficit	(7,701,237)	(7,600,834)
Other comprehensive income	(100,000)	(100,000)
TOTAL STOCKHOLDERS' DEFICIT	(1,959,647)	(2,008,416)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 111,235	$ 142,482

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Mar. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.00005	$ 0.00005
Common stock, authorized	200,000,000	200,000,000
Common stock, issued	58,376,518	55,276,518
Common stock, outstanding	58,376,518	55,276,518

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
EXPENSES
Oil and gas exploration				$ 600
Impairment of oil and gas properties, unproven	15,366		32,494
Consulting	1,672	12,196	1,672	12,196
Payroll	1,500	18,998	3,000	20,498
Professional services	5,827	14,187	20,934	20,210
Occupancy and office	1,578	1,235	3,466	3,089
Travel	295	367	520	617
Total Expenses	26,238	46,983	62,086	57,210
LOSS FROM OPERATIONS	(26,238)	(46,983)	(62,086)	(57,210)
OTHER EXPENSE
Loss on conversion of notes payable	(17,500)		(17,500)
Interest expense	(9,934)	(15,056)	(20,817)	(28,425)
Total Other Expenses	27,434	15,056	38,317	28,425
NET LOSS	$ (53,672)	$ (62,039)	$ (100,403)	$ (85,635)
BASIC AND DILUTED NET LOSS PER SHARE (in dollars per share)	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED (in shares)	57,096,298	54,899,595	56,181,436	54,668,139

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (100,403)	$ (85,635)
Adjustments to reconcile net loss to net cash used by operations:
Common stock issued for additional interest		8,300
Common stock issued for compensation		7,650
Stock options extended	1,672	22,044
Impairment of oil and gas properties, unproved	32,494
Loss on conversion of notes payable	17,500
Prepaid expenses	1,118
Accounts payable and accrued expenses	19,984	17,414
Net cash used in operating activities	(27,635)	(30,227)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to oil and gas properties, unproved	(32,494)	(32,821)
Purchase of cash bond		(100,000)
Net cash used in investing activities	(32,494)	(132,821)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances from officer- related party		500
Payment of advances from officer- related party		(500)
Proceeds from convertible note payable stockholder		50,000
Proceeds from convertible notes payable – related parties		16,000
Proceeds from note payable-stockholder		100,000
Proceeds from sales of stock	30,000
Net cash provided by financing activities	30,000	166,000
NET CHANGE IN CASH AND RESTRICTED CASH	(30,129)	2,952
CASH AND RESTRICTED CASH - Beginning of period	41,364	60,400
CASH AND RESTRICTED CASH - End of period	11,235	63,352
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for interest		2,750
Cash paid for taxes
NON-CASH FINANCING AND INVESTING TRANSACTIONS
Conversion of advances from officer-related party to convertible notes payable-related party	15,000	6,000
Conversion of notes payable stockholder with stock issuance	$ 100,000

XML

BASIS OF PRESENTATION

6 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of EnXnet, Inc. (“EnXnet” or “the Company”) for the six months ended September 30, 2018 have been prepared in accordance with generally accepted accounting principles in the United States of America, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. Accordingly, the financial statements do not include all information and footnotes required by generally accepted accounting principles in the United States for complete annual financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s March 31, 2018 Annual Report on Form 10-K.

Reclassification

Certain amounts in the 2017 financial statements have been reclassified to conform to the 2018 financial presentation. These reclassifications have no impact on net loss.

Cash and Restricted Cash Cash and restricted cash consist of the following:
	September 30, 2018		March 31, 2018
Cash		8,922		21,744
Restricted cash		2,313		19,620
Total cash and restricted cash	$	11,235	$	41,364

Recent Accounting Pronouncements

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for all interim and annual reporting periods beginning after December 15, 2017. The attached financial statements include the adoption of ASU 2016-18 which was adopted by the Company on April 1, 2018. The adoption did not have a material impact on the Company’s Consolidated Financial Statements “, other than certain reclassifications have been made in the Company’s consolidated statements of cash flows to conform with the current period presentation.

The Company does not expect the adoption of other recently issued accounting pronouncements to have a significant impact on the Company's results of operation, financial position or cash flows.

XML

GOING CONCERN

6 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 2 – GOING CONCERN

The Company has a working capital deficit and has incurred losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

Management of the Company has undertaken certain actions to address these conditions. Funds required to carry out management’s plans are expected to be derived from future stock sales and borrowings from outside parties. There can be no assurances that the Company will be successful in executing its plans.

XML

NOTES PAYABLE

6 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

NOTES PAYABLE

NOTE 3 – NOTES PAYABLE

Note payable-stockholder consists of the following:

	September 30, 2018		March 31, 2018
5.75% note payable to a stockholder, due May 31, 2018.	$	—	$	100,000

Convertible notes payable-related party consists of the following:
	September 30, 2018	March 31, 2018
2% convertible notes payable to Ryan Corley, President of the Company, due on demand, convertible into a maximum of 38,238,984 common shares	764,455	749,455
2% convertible note payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 978,000 common shares	48,900	48,900
3% convertible notes payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 1,619,500 common shares	111,350	111,350
2% convertible notes payable to Douglas Goodsell, a related party, due on demand, convertible into a maximum of 519,828 common shares	10,396	10,396
Total notes payable-related party	$ 935,101	$ 920,101
Convertible notes payable consists of the following:
	September 30, 2018	March 31, 2018
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,	50,000	-
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,	50,000	-
7% convertible notes payable to stockholder, which is past due, convertible into a maximum of 250,000 common shares,	50,000	50,000
7% convertible notes payable to stockholder, due August 12, 2018 convertible into a maximum of 250,000 common shares,	50,000	50,000
4% convertible notes payable to a stockholder, due on demand, convertible into a maximum of 350,000 common shares	175,000	175,000
2% convertible notes payable to stockholders, due on demand, convertible into a maximum of 1,100,000 common shares	25,000	25,000
Total notes payable	$ 400,000	$ 300,000
Long Term Convertible notes payable consists of the following:
	September 30, 2018	March 31, 2018
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,	-	50,000
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,	-	50,000
Total notes payable	$ -	$ 100,000

On April 1, 2018, the Company converted $15,000 of the advances from an officer into a convertible note payable. The note bears interest of 2% and is convertible with the accrued interest into common shares of the Company at a rate of $0.025 per share.

In April 2018, our CEO and President acquired a $50,000 interest in a note payable-stockholder that was due May 17, 2018, On August 13, 2018 the Company paid this note with the issuance of 1,250,000 shares of stock. In addition, on August 13, 2018, The Company issued another 1,250,000 shares of stock to pay a note payable-stockholder in the amount of $50,000. A total of 2,500,000 shares of stock were issued to pay notes payable aggregating $100,000. The fair market value of the 2,500,000 shares issued was $117,500. The Company recognized a loss on conversion of the notes payable I the amount of $17,500.

XML

RELATED PARTY TRANSACTIONS

6 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 4 – RELATED PARTY TRANSACTIONS

Advances from Stockholder:

Advances from a stockholder at September 30, 2018 and March 31, 2018 was $31,000.

Advances from Officer:

Our CEO, Ryan Corley, has made advances to the Company in prior years. During the six months ended September 30, 2018 and the year ended March 31, 2018, respectively, the CEO made additional unsecured advances totaling $-0- and $15,500. During the six months ended September 30, 2018 and the year ended March 31, 2018, the Company made payments on these advances of $-0- and $500, respectively. At September 30, 2018 and March 31, 2018, respectively, advances from the CEO were $-0- and $15,000, respectively.

Accrued Interest - officer

The Company has notes payable to the CEO in the aggregate amount of $764,455 and $749,455 as of September 30, 2018 and March 31, 2018, respectively. Accrued interest owed on these notes at September 30, 2018 and March 31, 2018 is $212,506 and $204,861, respectively. These notes and accrued interest are convertible into 42,388,166 and 41,411,316 shares of restricted common stock of the Company, as of September 30, 2018 and March 31, 2018 respectively.

Advances from officer - related party

At September 30, 2018 and March 31, 2018, advances from the entity controlled by the CEO was $10,500 and notes payable totaled $160,250. Accrued interest owed on these notes at September 30, 2018 and March 31, 2018 is $36,557 and $35,188, respectively. These notes and accrued interest are convertible into 3,180,115 and 3,155,917 shares of restricted common stock of the Company, as of September 30, 2018 and March 31, 2018, respectively.

Oil and Gas Leases

During the six months ended September 30, 2018, the Company paid $100 in transfer fees to acquire a lease on an additional 640 acres in the Rocky Mountain range located in the state of Colorado for a 4-year term. The lease was acquired from our President and CEO. Each year, the Company is responsible for making additional lease payments of $2.50 per acre to keep the lease

The Company conducts its business from the office of its CEO, Ryan Corley, rent free. 

XML

STOCK OPTIONS

6 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK OPTIONS

NOTE 5 – STOCK OPTIONS

On July 24, 2001, the Company filed with the SEC Form S-8, for its 2002 Stock Option Plan, (the Plan). An aggregate amount of common stock that may be awarded and purchased under the Plan is 3,000,000 shares of the Company’s common stock.

On July 10, 2018, the Company extended and repriced options that were expiring. A total of 150,000 options were expiring, of these 100,000 options were extended for 1 years at an exercise price of $0.25 per option. The Company used the Black-Scholes option pricing method to determine if there were additional compensation expenses to recognize. The extension and repricing resulted in the recognition of $1,672 in compensation expense.

A summary of the status of the Company’s stock options as of September 30, 2018 is presented below:

	September 30, 2018
Options outstanding at beginning of year		1,290,000
Options granted		—
Options exercised		—
Options expired		(50,000	)
Options outstanding at end of year		1,240,000

The following table summarizes the information about the stock options as of September 30, 2018:

Weighted Average of Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life Years		Number Exercisable
0.08	900,000		3.80	900,000
0.10	240,000		3.80	240,000
0.25	100,000		0.80	100,000
$ 0.08 - 0.25	1,240,000		3.56	1,240,000

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COMMON STOCK TRANSACTIONS

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

COMMON STOCK TRANSACTIONS

NOTE 6 – COMMON STOCK TRANSACTIONS

On July 16, 2018, the Company issued 600,000 common shares in exchange for $30,000 in cash.

On August 13, 2018, the Company issued 2,500,000 common shares to retire two note payable in the aggregate amount of $100,000. These notes were in default. Prior to retiring the note, our CEO acquired a one-half interest in the note. Of these shares, 1,250,000 were issued to the CEO as payment of the note. The fair market value of the 2,500,000 shares issued was $117,500. The Company recognized a loss on conversion of the notes payable I the amount of $17,500.

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Sep. 30, 2018

Basis Of Presentation

Basis of presentation

The accompanying unaudited consolidated financial statements of EnXnet, Inc. (“EnXnet” or “the Company”) for the six months ended September 30, 2018 have been prepared in accordance with generally accepted accounting principles in the United States of America, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. Accordingly, the financial statements do not include all information and footnotes required by generally accepted accounting principles in the United States for complete annual financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s March 31, 2018 Annual Report on Form 10-K.

Reclassification

Reclassification

Certain amounts in the 2017 financial statements have been reclassified to conform to the 2018 financial presentation. These reclassifications have no impact on net loss.

Cash, Cash Equivalents and Restricted Cash

Cash and Restricted Cash Cash and restricted cash consist of the following:
	September 30, 2018		March 31, 2018
Cash		8,922		21,744
Restricted cash		2,313		19,620
Total cash and restricted cash	$	11,235	$	41,364

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for all interim and annual reporting periods beginning after December 15, 2017. The attached financial statements include the adoption of ASU 2016-18 which was adopted by the Company on April 1, 2018. The adoption did not have a material impact on the Company’s Consolidated Financial Statements “, other than certain reclassifications have been made in the Company’s consolidated statements of cash flows to conform with the current period presentation.

The Company does not expect the adoption of other recently issued accounting pronouncements to have a significant impact on the Company's results of operation, financial position or cash flows.

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BASIS OF PRESENTATION (Tables)

6 Months Ended

Sep. 30, 2018

Basis Of Presentation Tables Abstract

Schedule of cash and cash equivalents and restricted cash

	September 30, 2018		March 31, 2018
Cash		8,922		21,744
Restricted cash		2,313		19,620
Total cash and restricted cash	$	11,235	$	41,364

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NOTES PAYABLE (Tables)

6 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Convertible notes payable-related party

Note payable-stockholder consists of the following:

	September 30, 2018		March 31, 2018
5.75% note payable to a stockholder, due May 31, 2018.	$	—	$	100,000

Convertible notes payable-related party consists of the following:
	September 30, 2018	March 31, 2018
2% convertible notes payable to Ryan Corley, President of the Company, due on demand, convertible into a maximum of 38,238,984 common shares	764,455	749,455
2% convertible note payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 978,000 common shares	48,900	48,900
3% convertible notes payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 1,619,500 common shares	111,350	111,350
2% convertible notes payable to Douglas Goodsell, a related party, due on demand, convertible into a maximum of 519,828 common shares	10,396	10,396
Total notes payable-related party	$ 935,101	$ 920,101

Convertible Notes Payable

Convertible notes payable consists of the following:
	September 30, 2018	March 31, 2018
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,	50,000	-
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,	50,000	-
7% convertible notes payable to stockholder, which is past due, convertible into a maximum of 250,000 common shares,	50,000	50,000
7% convertible notes payable to stockholder, due August 12, 2018 convertible into a maximum of 250,000 common shares,	50,000	50,000
4% convertible notes payable to a stockholder, due on demand, convertible into a maximum of 350,000 common shares	175,000	175,000
2% convertible notes payable to stockholders, due on demand, convertible into a maximum of 1,100,000 common shares	25,000	25,000
Total notes payable	$ 400,000	$ 300,000

Long term convertible notes payable

Long Term Convertible notes payable consists of the following:
	September 30, 2018	March 31, 2018
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,	-	50,000
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,	-	50,000
Total notes payable	$ -	$ 100,000

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STOCK OPTIONS (Tables)

6 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock options

	September 30, 2018
Options outstanding at beginning of year		1,290,000
Options granted		—
Options exercised		—
Options expired		(50,000	)
Options outstanding at end of year		1,240,000

Schedule of stock options details

Weighted Average of Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life Years		Number Exercisable
0.08	900,000		3.80	900,000
0.10	240,000		3.80	240,000
0.25	100,000		0.80	100,000
$ 0.08 - 0.25	1,240,000		3.56	1,240,000

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BASIS OF PRESENTATION (Details) - USD ($)	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2017
Basis Of Presentation Details Abstract
Cash	$ 8,922	$ 21,744		$ 21,744
Restricted cash	2,313	19,620
Total cash and restricted cash	$ 11,235	$ 41,364	$ 63,352	$ 60,400

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NOTES PAYABLE - Convertible notes payable - related party (Details) - USD ($)	6 Months Ended	12 Months Ended
	Sep. 30, 2018	Mar. 31, 2018
Total notes payable-related party	$ 935,101	$ 920,101
2% Convertible notes payable to Ryan Corley, President of the Company, due on demand, convertilbe into a maximum of 38,238,984 common shares
Total notes payable-related party	764,455	749,455
2% convertible note payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 978,000 common shares
Total notes payable-related party	48,900	48,900
3% convertible notes payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 1,619,500 common shares
Total notes payable-related party	111,350	111,350
2% convertible notes payable to Douglas Goodsell, a related party, due on demand, convertible into a maximum of 519,850 common shares
Total notes payable-related party	$ 10,396	$ 10,396

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NOTES PAYABLE - Convertible Notes Payable (Details) - USD ($)	Sep. 30, 2018	Mar. 31, 2018	Mar. 31, 2017
Total notes payable	$ 400,000		$ 300,000
Convertible Note 1
Total notes payable	50,000
Convertible Note 2
Total notes payable	50,000
Convertible Note 3
Total notes payable	50,000	50,000
Convertible Note 4
Total notes payable	50,000	50,000
Convertible Note 5
Total notes payable	175,000	175,000
Convertible Note 6
Total notes payable	25,000	25,000
Total
Total notes payable	$ 400,000	$ 300,000

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NOTES PAYABLE - Long Term Convertible Notes Payable (Details) - USD ($)	Sep. 30, 2018	Mar. 31, 2018
Longterm Convertible Note Payable 1
Long Term Debt Payable		$ 50,000
Longterm Convertible Note Payable 2
Long Term Debt Payable		50,000
Longterm Convertible Note Payable Total
Long Term Debt Payable		$ 100,000

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STOCK OPTIONS (Details)	6 Months Ended
	Sep. 30, 2018 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of year	1,290,000
Options expired | $	$ (50,000)
Options outstanding at end of year	1,240,000

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STOCK OPTIONS (Details 1)	6 Months Ended
	Sep. 30, 2018 $ / shares shares
Option 1
Range of Exercise Price, max | $ / shares	$ 0.08
Number Outstanding	900,000
Weighted Average Remaining Contractual Life Years	3 years 9 months 18 days
Number Exercisable	900,000
Option 2
Range of Exercise Price, max | $ / shares	$ 0.10
Number Outstanding	240,000
Weighted Average Remaining Contractual Life Years	3 years 9 months 18 days
Number Exercisable	240,000
Option 3
Range of Exercise Price, max | $ / shares	$ 0.25
Number Outstanding	100,000
Weighted Average Remaining Contractual Life Years	9 months 18 days
Number Exercisable	100,000
Total
Range of Exercise Price, min | $ / shares	$ .08
Range of Exercise Price, max | $ / shares	$ .25
Number Outstanding	1,240,000
Weighted Average Remaining Contractual Life Years	3 years 6 months 21 days
Number Exercisable	1,240,000