UNITED STATES SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street, N.W.
Washington, D. C. 20549



FORM 10-QSB



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



For the quarterly period ended June 30, 2004



[ ] TRANSITION REPORT UNDER SECTION 14 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to ______________



Commission file number 000-30675



EnXnet, Inc.

(Exact name of Small Business Issuer in its charter)

Oklahoma                               73-1561191

(State of Incorporation)     (I.R.S. Employer Identification No.)

1723 S Boston Ave
Tulsa, Oklahoma 74119

(Address of principal executive offices.)

Registrant's telephone number: (918) 592-0015

Former Company:

Former Conformed Name: Emajix.com, Inc

Date of Name change: 20010801


As of July 16, 2004, there were 24,561,410 shares of Common Stock,
$0.00005 par value, of the issuer outstanding.
=================================================================



INDEX

Part I. FINANCIAL INFORMATION

ITEM I. Financial Statements

Balance Sheets
June 30, 2004 and March 31, 2004                                    3

Statements of Loss
For the three months ended June 30, 2004 and 2003,
and from inception (March 30, 1999) to June 30, 2004                4

Statements of Changes in Stockholders Equity (deficit)              5

Statements of Cash Flows
For the three months ended June 30, 2004 and 2003;
and from inception (March 30, 1999) to June 30, 2004               6-7

Summary of Accounting Policies                                     8-10

Notes to Financial Statements                                     10-19

Item 2. Managements Discussion and Analysis or Plan of Operation  20-21

Item 3. Controls and Procedures                                     21

PART II. OTHER INFORMATION

Item 1. Legal Proceedings                                           22

Item 2. Changes in Securities                                       22

Item 3. Defaults Upon Senior Securities                             22

Item 4. Submission of Matters to a Vote to Security Holders         22

Item 5. Other Information                                           22

Item 6. Exhibits and Reports on Form 8-K                            22

SIGNATURES                                                          23

Exhibit 31.1     Certification of financial statements
                   Chief Executive Officer &
                   Chief Financial Officer                          24

Exhibit 31.2     Certification of financial statements
                   Chief Financial Officer                          25

Exhibit 32.1     Certification pursuant to
                   18 U. S. C. section 1350,
                   as adopted pursuant to
                   section 906 of the
                   Sarbanes-Oxley Act of 2002                       26


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
                                                        June 30,   March 31,
                                                          2004        2004
ASSETS                                                (Unaudited)  (Audited)
Current assets:
Cash                                                  $   41,822   $  5,206
Accounts receivable (net allowance for
doubtful accounts of 0, and 0, respectively)              19,748      3,613
Other receivable                                           3,000       -
Prepaid expense                                           53,829     97,892
                                                       _________   ________
Total current assets                                     118,399    106,711
                                                       _________   ________

Equipment, net  (Note 1)                                   7,799      7,975
                                                       _________   ________
Other assets:
Deposits and deferred charges                              2,350      2,350
Licenses, net (Note 4)                                   228,182    237,892
Marketable securities (Note 3)                           143,263    148,859
                                                       _________    _______
Total other assets                                       373,795    389,101
                                                       _________    _______
Total assets                                          $ $499,993   $503,787
                                                       =========    =======

LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses                 $  138,240  $ 110,707
Advances from officer-related party  (Note 7)             46,790     27,550
Advances from shareholder  (Note 7)                      256,610    201,987
Notes payable  (Note 6)                                   60,554     60,554
Notes payable-related party (Note 6)                     527,215    527,215
                                                       _________   ________
Total current liabilities                              1,029,409    928,013
                                                       _________   ________
Stockholders' equity (deficit)
Common stock, $.00005 par value;
200,000,000 shares authorized;
24,561,410 and 24,326,800 issued and
outstanding June 30, 2004 and March 31, 2004               1,227      1,216
Additional paid-in capital                             1,510,335  1,399,404
Common stock subscribed                                     -       (19,665)
Deficit accumulated during the development stage      (2,019,751)(1,789,550)
Other comprehensive income                               (21,227)   (15,631)
                                                       _________   ________
Total stockholders equity (deficit)                     (529,416)  (424,226)
                                                       _________   ________
Total liabilities and stockholders' equity (deficit)  $  499,993  $ 503,787
                                                       =========   ========



See accompanying summary of accounting policies and
notes to financial statements.  <page 3>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF LOSS (Unaudited)
                                                                Date from
                                                                Inception
                                                             (March 30, 1999)
                                        Three Months Ended          to
                                             June 30,            June 30,
                                         2004        2003          2004

Revenues                             $  24,721   $   3,622    $    60,742
Cost of revenues                        17,341       2,974         44,057
                                       _______     _______      _________

Gross profit                             7,380         648         16,685
                                       _______     _______      _________
Operating expenses:
Consulting fees                        110,145         800        371,062
Depreciation & amortization             10,653      12,047        184,930
Bad debts                                 -           -             5,988
Royalties                                 -           -            25,800
Advertising                                833        -               833
Payroll                                 40,168      44,413        807,012
Professional services                   44,604       9,355        162,808
Occupancy expense                       11,827      13,371        182,244
Office expense                           5,693       8,981         82,247
Travel expense                           4,010      10,442         86,221
Other expense                              311         349         27,630
                                       _______     _______      _________
Total operating expenses               228,244      99,758      1,936,775
                                       _______     _______      _________
Operating loss                        (220,864)   ( 99,110)    (1,920,090)

Other income (expense):
Gain (loss) on sale of
 marketable securities                    -           -           (16,814)
Interest income                              4           4             25
Interest expense                      (  9,341)   (  8,156)       (82,872)
                                       _______     _______      _________
Net loss                              (230,201)   (107,262)    (2,019,751)

Other comprehensive income(loss):
Net unrealized gain(loss)on
 marketable securities                (  5,596)     47,008        (20,473)
                                       _______     _______      _________
Comprehensive loss                    (235,797)  $( 60,254)   $(2,040,224)
                                       =======     =======      =========
Net loss per share
  basic and diluted                    $ (.009)$     (.005)    $    (.103)
                                       =======     =======      =========
Weighted average number
  of shares
  basic and diluted                 24,467,721  23,714,134     19,724,723
                                    ==========  ==========     ==========

See accompanying summary of accounting policies and
notes to condensed financial statements.  <page 4>


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT)(Unaudited)

<TABLE>
<S>                      <C>         <C>     <C>          <C>         <C>          <C>            <C>

                                                                       Deficit
                                                                      Accumulated
                                  Common Stock            Additional   During the      Other
                         _______________________________   Paid-in    Development  Comprehensive
                           Shares    Amount  Subscribed     Capital       Stage       Income       Total
                         __________  ______  ___________  __________  ___________  _____________  _________
Balance: March 31, 2004  24,326,800  $1,216  $   (19,665) $1,399,404  $(1,789,550) $     (15,631) $(424,226)
Common stock
  issued for:
   Cash                     150,000       7                   49,993         -              -        50,000
   Services                  70,410       3                   24,820         -              -        24,823
   Options exercised         14,200       1       19,665       7,099         -              -        26,765
Options issued for services    -          -         -         29,019         -              -        29,019
Net loss                       -          -         -           -      (  230,201)          -      (230,201)
Other comprehensive income     -          -         -           -            -            (5,596)    (5,596)
                         __________  ______  ___________  __________  ___________  _____________  _________
Balance: June 30, 2004   24,561,410   1,227         -      1,510,355   (2,019,751)       (21,227)  (529,416)
                         ==========  ======  ===========  ==========  ===========  =============  =========
</TABLE>













See accompanying summary of accounting policies and
notes to financial statements.  <page 5>


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (Unaudited)
                                                                  Date from
                                                                  Inception
                                                               (March 30, 1999)
                                            Three Months Ended        to
                                                 June 30,          June 30,
                                             2004        2003        2004
Cash flows from operating activities:
Net loss                                  $(230,201) $(107,262)  $(2,019,751)
Adjustments to reconcile net loss to cash
 flows from operating activities:
Depreciation and amortization                10,653     12,047       184,930
(Gain) Loss on sale of
 marketable securities                         -          -           16,814
Stock issued for equipment                     -          -              500
Stock issued for services                    24,823       -          169,461
Options issued for services                  29,019       -           90,812
Changes in operating assets and liabilities:
Accounts and other receivable               (19,135)    (3,598)      (22,748)
Prepaid expense                              44,063        300        43,828
Accounts payable and accrued expenses        27,533    160,023       355,513
                                            _______    _______     _________
Net cash flows from operating activities   (113,245)    61,510    (1,180,641
                                            _______    _______     _________
Investing activities:
Purchase of fixed assets                       (767)      -          (53,136)
Other assets                                   -          -          ( 2,350)
Proceeds from sale of
 marketable securities                         -          -           88,880
                                            _______    _______     _________
Net cash flows from
 investing activities                          (767)      -           33,394
                                            _______    _______     _________
Financing activities:
Proceeds from note payable-
 related party                                 -          -          627,769
Proceeds from advances form
 officer and shareholder                     73,863       -          267,251
Proceeds from sale of common stock           76,765     10,200       765,181
Repayment of advances                          -          -         (181,132)
Repayment of note payable                      -          -         (290,000)
                                            _______    _______     _________
Net cash flows from financing activities    150,628     10,200     1,189,069
                                            _______    _______     _________
Net increase in cash                         36,616     71,710        41,822

Cash, beginning of period                     5,206     13,278          -
                                            _______    _______     _________
Cash, end of period                        $ 41,822   $ 84,988   $    41,822
                                            =======    =======     =========



See accompanying summary of accounting policies and
notes to financial statements.  <page 6>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (Unaudited) - continued





Supplemental disclosures of cash flow information:
                                                                  Date from
                                                                  Inception
                                                               (March 30, 1999)
                                            Three Months Ended        to
                                                 June 30,          June 30,
                                             2004        2003        2004
Cash flows from operating activities:
Cash paid during the period for:
Interest                                  $   -      $   -       $ 18,889
Income taxes                              $   -      $   -       $   -

Non-cash financing activities:
Issuance of notes payable in exchange for
 accounts payable                         $   -      $   -       $318,726
Issuance of notes payable in exchange
 for ClearVideo license                       -          -       $250,000
Issuance of common stock in exchange
 for ClearVideo license                   $   -      $ 14,800    $132,575
Issuance of common stock for service      $ 24,823   $   -       $169,461
Issuance of common stock for future
 prepaid services                         $   -      $   -       $ 97,649
Issuance of common stock for equipment        -          -       $    500
Issuance of common stock in exchange
 for Fonar common stock-net of
 $27,018 issuance fees                    $   -      $   -       $243,166
Issuance of stock options for services    $ 29,019   $   -       $ 90,812




















See accompanying summary of accounting policies and
notes to financial statements.  <page 7>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
SUMMARY OF ACCOUNTING POLICIES

     The accompanying unaudited financial statements have been prepared
in accordance with accounting principles generally accepted in the United
States of America for interim financial information and in accordance with
the instructions to Form 10-QSB and Items 303 and 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by accounting principles generally accepted in the United States of America for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) considered necessary for a fair
presentation have been included.  Operating results for the three months
ended June 30, 2004, are not necessarily indicative of the results that
may be expected for the year ended March 31, 2005. For further information,
refer to the financial statements and footnotes thereto included in the
EnXnet, Inc. or the "Company" audited financial statements for the year
ended March 31, 2004 included in the Company Form 10-KSB.

THE BUSINESS

     EnXnet, Inc. (the "Company") is a development stage enterprise
formed under the laws of the State of Oklahoma on March 30, 1999 as
Southern Wireless, Inc.    It is a business and technology development
enterprise engaged in the development, marketing, and licensing of
emerging technologies and innovative business strategies and practices,
focusing primarily on products, solutions, and services which support
and enhance multimedia management. The Company changed its name to
eMajix.com, Inc. on April 5, 2000 and on August 1, 2001 the name was
changed to EnXnet, Inc.

Products and Services

DVDPlus

     The Company entered into a license on June 2, 2003 with DVDPlus
International, Inc. to manufacture and market DVDPlus in the United States,
Canada, and Mexico. DVDPlus is a dual sided, hybrid optical disc media that
uniquely combines two distinct content storage formats for distribution on a
single disc, a DVD (digital versatile disc) on one side and a CD (compact disc)
on the other. DVDPlus allows content publishers to integrate their visual and
audio assets into a single distribution. Utilizing the latest in manufacturing
technology, the CD and DVD layers are bonded together to provide a multi-format
hybrid disc, which is compatible to all CD, CD-ROM, DVD ROM formats, and is
readable and capable of playback in conventional CD and DVD players and
personal computers alike.

     DVDPlus allows content publishers to integrate their visual and
audio assets into a single distribution, such as releasing a DVD movie
and its soundtrack together.






                               <page 8>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
SUMMARY OF ACCOUNTING POLICIES - continued

Disc Security Tag

     On May 23, 2003, the Company filed a patent for Disc Security Tag
(DSTag), an invention which utilizes existing Electronic Article
Surveillance (EAS) tags embedded into a DVD or CD during the injection
mold phase of the manufacturing process.  Products, to which this
process is applied, provide unique item identification for its customers
and clients.  With this product, manufacturers are given the opportunity
to enhance the integrity of their product while providing added value to
their customers (retailers) that are desperate to reduce or stop the
enormous losses attributed to employee and retail theft.  Additionally,
it can give content developers, manufacturers, and distributors the
ability to protect their investment by providing an efficient means to
authenticate legitimate products over counterfeit products produced by
unauthorized manufacturers.

EnXcase

     On October 10, 2003, the Company filed for a patent on EnXcase.
EnXcase combines two distinct features for the DVDPlus (OneDisc)
two-sided (DVD-CD)optical disc media market. The outer styling of the
case has the unique feature of a semi-rounded top. The second feature
is a theft deterrent ring found within the inner structure of the
EnXcase. The Company developed this unique case primarily for use with
the DVDPlus (OneDisc) two-sided disc format.

EnXdeck Player

     On December 3, 2003, the Company announced the arrival of their
EnXdeck Player which includes the ability to play ClearVideo encoded
content. The EnXdeck is a stand-alone DVD/CD player that incorporates
the latest in audio and video PC based technology. The system has been
developed to utilize EnXnet's proprietary video compression software,
ClearVideo. The EnXdeck not only has the same functionality as the
Phillips CDI (compact disc interactive) units, but has the added value
of a PC with Internet capability, expandable I/O ports, and
multiple video output configurations.

ClearVideo License

     In March 2000, the Company acquired exclusive licensing rights, from
Iterated Systems, Inc., to compile, use, copy and modify ClearVideo
Source Code and to create and manufacture products and services.  As part
of this acquisition Ryan Corley acquired the rights for using the
ClearVideo Source Code for video/audio streaming over the internet of TV
type programming and content.  Additionally, the license agreement
provides that the Company may sublicense any products and services that
it creates using the technology under the licensing agreement.  The
license was acquired for a $250,000 note payable and the issuance of
297,500 shares of common stock, valued at $2,975.


                               <page 9>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
SUMMARY OF ACCOUNTING POLICIES - continued

ClearVideo License - continued

     On January 2, 2002, the company entered into an agreement with Ryan
Corley, the President and majority stockholder of the Company, whereby
the Company acquired his license agreement for video/audio streaming
over the internet of TV type programming and content using the
ClearVideo Source Code.  The Company issued 1,000,000 shares of
restricted common stock valued at $100,000 for the license.  The
licenses are being amortized over 10 years which is the estimated useful
life of the patent covering the technology.

ClearVideo Technology

     ClearVideo utilizes fractal digitization creating the smallest file
possible while virtually duplicating the quality of the original.
ClearVideo can reduce video file sizes by approximately 95-99% and
virtually duplicates the quality of the original files.  ClearVideo
enhances how video with synchronized audio files are transmitted over
both narrow and broadband lines.  ClearVideo works equally well with
NTSC, PAL, or SECAM (the three different TV formats used around the
world) television as well as the Internet.  It can be effectively used
worldwide for the compression and transmission of video files for the
broadcast industry.

NOTES TO FINANCIAL STATEMENTS

1. Summary of Accounting Policies

Cash Equivalents

     For financial reporting purposes, the Company considers all highly
liquid investments with an original maturity of three months or less
when purchased to be a cash equivalent.  Financial instruments, which
potentially subject the Company to a concentration of credit risk,
consist of cash and cash equivalents.  Cash and cash equivalents
consist of funds deposited with various high credit quality financial
institutions.















                               <page 10>


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

Equipment

     Equipment is recorded at cost. Depreciation and amortization are
provided using the straight-line method over the useful lives of the
respective assets, typically 3-10 years. Major additions and betterments
are capitalized. Upon retirement or disposal, the cost and related
accumulated depreciation or amortization are removed from the accounts
and any gain or loss is reflected in operations.

     The following table details the Company's equipment:
                                                  June 30,   March 31,
2004	 2004
                                                   ------      ------
     Equipment                                   $ 53,137    $ 52,369
     Accumulated depreciation                     (45,338)    (44,395)
                                                  -------     -------
     Equipment, net                              $  7,799    $  7,975
                                                  =======     =======

Depreciation expenses for the three months ended June 30, 2004 and 2003 were
$943 and $2,722, respectively.

Licenses

     The costs associated with acquiring exclusive licensing rights to
patented technology have been capitalized and are being charged to
expense using the straight line method of amortization over ten years,
the estimated remaining useful lives of the patents.

    In accordance with the provisions of Statement of Financial
Accounting Standards("SFAS") No. 121, "Accounting for the Impairment of
Long-lived Assets and for Long-lived Assets to be Disposed of",
management of the Company reviews the carrying value of its intangible
assets on a regular basis.  Estimated undiscounted future cash flows
from the intangible assets are compared with the current carrying
value.  Reductions to the carrying value are recorded to the extent the
net book value of the property exceeds the estimate of future
discounted cash flows.

Marketable Securities

	The Company accounts for its marketable securities under Statement of
Financial Accounting Standards No. 115, Accounting for Certain Investments
in Debt And Equity Securities.  The Company's securities are considered
available-for-sale and are valued at fair value for financial statement
purposes.  Fair value is based on quoted market prices.  The unrealized holding
gain or loss represents the net change in the fair value of those securities
and is shown in other comprehensive income.




                               <page 11>


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

Revenue Recognition

	The Company is a development stage company and generated insignificant
revenue for the three months ended June 30, 2004 and 2003.  Revenue is
considered earned upon the delivery of products and the collectability of the
sales is reasonably assured.

Income Taxes

     Income taxes are provided based on the liability method of
accounting pursuant to SFAS No. 109, "Accounting for Income Taxes."
Under this approach, deferred income taxes are recorded to reflect the
tax consequences on future years of differences between the tax basis
of assets and liabilities and their financial reporting amounts at each
year end.  A valuation allowance is recorded against deferred tax
assets as management does not believe the Company has met the "more
likely than not" standard imposed by SFAS No. 109 to allow recognition
of such an asset.

Estimates

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

Fair Value of Financial Instruments

     The carrying amounts reported in the balance sheets as of June 30,
2004 and March 31, 2004 for cash equivalents and accounts payable and accrued
expenses approximate fair value because of the immediate or short-term
maturity of these financial instruments.

Compensated Absences

     Employees of the Company do not earn annual leave or sick leave. Therefore,
there is no compensated absences accrued liability on June 30, 2004 and
March 31, 2004.

Research and Development Costs

     Research and development costs are charged to expense as incurred.







                               <page 12>


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

Stock-Based Compensation

     The Company measures compensation cost for its stock-based compensation
plans under the provisions of Accounting Principles Board Opinion No. 25 ("APB
25"), "Accounting for Stock Issued to Employees".  The difference, if any,
between the fair value of the stock on the date of grant over the exercise
price for the stock is accrued over the related vesting period.  SFAS No. 123,
"Accounting for Stock-Based Compensation", ("SFAS 123") requires companies that
continue to use APB 25 to account for its stock-based compensation plan to make
proforma disclosures of net income (loss) and earnings (loss) per share as if
SFAS 123 had been applied.  Statement of Financial Accounting Standards No. 148
"Accounting for Stock-Based Compensation-Transition and Disclosure-an amendment
of FASB Statement No. 123" provides alternative methods of transition for a
voluntary change to the fair value based method of accounting for stock-based
employee compensation.  In addition, this statement amends the disclosure
requirements of Statement 123 to require prominent disclosures in both annual
and interim financial statements about the method of accounting for stock-based
employee compensation and the effect of the method used on reported results.

			The options granted in the three months ended June 30, 2004 have exercise
prices which approximate fair value and accordingly, no compensation cost has
been recognized for the compensatory stock options in the financial statements.
Had compensation cost for the Company's stock options been determined
consistent with FASB statement No. 123, "Accounting for Stock Based
Compensation", the Company's net income (loss) and net income (loss) per share
would have been decreased (increased) to the pro forma amounts indicated below:

                                          June 30 2004        June 30, 2003
                                          --------             -------
   Net loss                As reported     $(230,201)         $ (107,262)
                           Proforma        $(240,338)         $ (107,262)

   Basic loss per share    As reported        $(.009)            $(0.005)
                           Proforma           $(.010)            $(0.005)

   Diluted loss per share  As reported        $(.009)            $(0.005)
                           Proforma           $(.010)            $(0.005)

     The fair value of each option grant is estimated on the date of grant
using the Black-Scholes option-pricing model.

     The following assumptions were for grants in the three ended June 30,
2004; dividend yield of 0%, expected volatility of 40%, risk free interest
rates of 1.0%, and an expected life of approximately 4.32 years.







                               <page 13>


EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

Net Loss Per Share

     SFAS No. 128 requires dual presentation of basic EPS and diluted
EPS on the face of all income statements for all entities with complex
capital structures.   Basic EPS is computed as net income divided by
the weighted average number of common shares outstanding for the
period.  Diluted EPS reflects the potential dilution that could occur
from common shares issuable through stock options, warrants and other
convertible securities.

2. Development Stage Operations and Going Concern

     The Company has been in the development stage since its inception.
The Company has no recurring source of revenue 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. To this end, management is currently in
negotiations with additional potential customers  and with marketing
representatives to establish product channels.  Funds required to
carry out management's plans are expected to be derived from future
stock sales, proceeds of marketable securities or borrowings from
outside parties.  There can be no assurances that the Company will be
successful in executing its plans.

3. Marketable Securities

     The Company owns 111,924 shares of Fonar Corporation as of June 30, 2004
and March 31, 2004. Fonar is traded on the NASDAQ National Market system under
the symbol FONR.  As discussed in Note 1, the Company accounts for its
marketable securities under Statement of Financial Accounting Standards No.
115, Accounting for Investments in Debt and Equity Securities.  The Company's
marketable consist of the following:

                                 June 30, 2004
          -------------------------------------------------------------
                                                         Unrealized
                               Basis       Fair Value    Gain (Loss)
          Equity Securities  $164,490       $143,263      $(21,227)
                             ========       ========      =========

                                March 31, 2004
          -------------------------------------------------------------
                                                         Unrealized
                               Basis       Fair Value    Gain (Loss)
          Equity Securities  $164,490       $148,859      $(15,631)
                             ========       ========      =========


                               <page 14>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

3. Marketable Securities - continued

These securities are considered available-for-sale, as defined by SFAS No. 115
and, accordingly, the unrealized holding gain is shown in other comprehensive
income, as follows:                                   June 30,       March 31,
                                                        2004           2004
                                                      --------       --------
   Unrealized holding gain(loss) recognized
      as of  					                 $ (5,596)       $50,366
   Holding gain (loss) recognized
	in prior years endings                           (15,631)       (65,997)
									      --------	 --------
Unrealized holding gain (loss) on investment
      Available for sale                              $(21,227)      $(15,631)
								      =======        =======
4.   Licenses

     In March 2000, the Company acquired exclusive licensing rights, from
Iterated Systems, Inc., to compile, use, copy and modify ClearVideo Source
Code and to create and manufacture products and services.  As part of this
acquisition Ryan Corley acquired the rights for using the ClearVideo Source
Code for video/audio streaming over the internet of TV type programming and
content. Additionally, the license agreement provides that the Company may
sublicense any products and services that it creates using the technology under
the licensing agreement.  The license was acquired for a $250,000 note payable
and the issuance of 297,500 shares of common stock, valued at $2,975. In
addition during 2004, the Company issued 74,000 shares valued at $14,800 under
an anti-dilution clause in the license agreement.

     On January 2, 2002, the Company entered into an agreement with Ryan
Corley, the President and majority stockholder of the Company, whereby the
Company acquired his license agreement for video/audio streaming over the
internet of TV type programming and content using the ClearVideo Source
Code. The Company issued 1,000,000 shares of restricted common stock
valued at $100,000 for the license.

     The licenses are being amortized over 10 years which is the estimated
useful life of the patent covering the technology. Amortization expense for the
three months ended June 30, 2004 and 2003 was $9,708 and $9,324.   Accumulated
amortization at June 30 and March 31, 2004 was $139,593 and $129,883.

5.   Income Taxes

     At June 30, 2004 and March 31, 2004, the Company had net deferred tax
assets of approximately $690,000 and $600,000 principally arising from net
operating loss carryforwards for income tax purposes.  As management of the
Company cannot determine that it is more likely than not that the Company will
realize the benefit of the net deferred tax asset, a valuation allowance equal
to the net deferred tax asset has been established at June 30, 2004 and March
31, 2004. At June 30, 2004 the Company has net operating loss carryforwards
totaling approximately $2,029,000 which will begin to expire in the year 2015.
                                <page 15>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

6. Notes Payable

    Notes payable-related party consist of the following:

                                                       June 30,  March 31,
                                                         2004      2004
                                                       -------  --------
     8% convertible note payable to Ryan Corley,
      President of the Company, due November 15,
      2003, Convertible into a maximum of
      1,100,000 common shares                        $ 110,000 $ 110,000

     6% convertible notes payable to Ryan Corley,
      President of the Company, due on demand,
      convertible into a maximum of
      1,766,860 common shares                          417,215   417,215
                                                      --------  --------
     Total notes payable-related party 	           $ 527,215 $ 527,215
                                                      ========  ========
   Notes payable consist of the following

       6% convertible notes payable to a
       stockholder, due on demand, convertible
       into a maximum of 369,025 common shares        $  60,554  $ 60,554
                                                      ========   ========
7.  Advances from Officer and Shareholder

	During the three months ended June 30, 2004 a shareholder made additional
unsecured advances totaling $ 57,500.  At March 31, 2004, advances from
shareholder was $226,540.  The advances do not accrue interest; however the
note has been discounted using an imputed interest rate of 6%.  The balance at
June 30, 2004 and March 31, 2004 is $256,610 and $201,987 with a discount of
$27,430 and $24,553, respectively.

      During the three months ended June 30, 2004, the CEO made additional  and
unsecured advances totaling $20,444.  At March 31, 2004, advances from the CEO
was $29,647.  The advances do not accrue interest; however the note has been
discounted using an imputed interest rate of 6%.  The balance at June 30, 2004
and March 31, 2004 is $46,790 and $27,550 with a discount of $3,301 and $2,097,
respectively.

8. Common Stock Transactions

The Company issued 70,410 shares of restricted common stock in exchange for
services in the quarter ended June 30, 2004.







                                <page 16>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

9. Anti-Dilution Clause

     The agreement with Iterated Systems, Inc. ("Iterated"), contains an
anti-dilution clause whereby the percentage of ownership of the
Company's common stock by Iterated shall be no less than 1.25% of the
total outstanding shares of the Company's common stock at any given
time.  In May 2003 the company issued an additional 74,000 shares of
restricted Rule 144 common stock to Iterated in compliance with the
agreement. This provision terminates if Iterated sells or disposes of the
shares that it received under this agreement. Iterated has sold all of its
shares it received under the agreement and the Company is no longer subject
to the anti-dilution clause.

10. 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. Under the Plan during the three months ended June
30, 2004 and the year ended March 31, 2004, the Company granted 200,000 and
570,000 stock options to employees, consultants and members of the Board of
Directors.

     During the three months ended June 30, 2004 and 2003, Company granted
200,000 and 0 to employees and consultants to purchase common stock with
exercise prices of $.17 to $.90 per share which was equal to or higher than the
market price at the date of the grant. Compensation was required to be recorded
for options granted to the consultants using the Black-Scholes option-pricing
model for the three months ended June 30, 2004 and 2003 were $29,019 and 0,
respectively.

     SFAS No. 123 requires the Company to provide pro-forma information
regarding net income (loss) applicable to common stockholders and
income (loss) per share as if compensation cost for the Company's
options granted to employees had been determined in accordance with the
fair value based method prescribed in that statement.

     The Company estimated the fair value of each stock option for
employees at the grant date by using the Black-Scholes option-pricing
model with the following weighted average assumptions used for grants
as follows:
                                         June 30,       June 30,
                                           2004           2003
                                         ========      =========
         Dividends yield                     0%             0%
         Expected volatility                40%            82%
         Risk-free interest rate           1.0%           4.4%
         Expected life                  4.60 years     6.00 years

     For purposes of pro forma disclosures, the estimated fair value
of the options is amortized to expense over the options' vesting period.



                                <page 17>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

10. Stock Options - continued

     Pro forma net loss and net loss per share information is presented below:

                                         June 30,       June 30,
                                           2004           2003
                                         ========      =========
Pro forma net loss to stockholders      $(230,201)    $ (107,262)
Pro forma basic and diluted
     net loss per share                    (0.009)        (0.005)

     Stock options to non-employees have been accounted for at
the fair value of the options at the grant date as determined using
the Black-Scholes option-pricing model.

     Option valuation models incorporate highly subjective assumptions.
Because changes in the subjective assumptions can materially affect the
fair value estimate, the existing models do not necessarily provide a
reliable single measure of the fair value of the Company's employee
stock options. Because the determination of fair value of all employee
stock options granted after such time as the Company becomes a public
entity will include an expected volatility factor and because, for pro
forma disclosure purposes, the estimated fair value of the Company's
employee stock options is treated as if amortized to expense over the
options' vesting period, the effects of applying SFAS No 123 for pro
forma disclosures are not necessarily indicative of future amounts.

A summary of the status of the Company's stock options is presented below:

                                           June 30,   March 31,
                                             2004       2004
                                          =========  =========
Options outstanding at beginning of period  4,090,000  3,350,000
Options granted                             200,000  1,100,000
Options exercised                           (14,200)  (160,000)
Options canceled                               -      (200,000)
                                          ---------  ---------
Options outstanding at end of period        4,275,800  4,090,000
                                          =========  =========











                                <page 18>
EnXnet, Inc.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS

10. Stock Options - continued


     The following table summarizes the information about the stock options
as of June 30, 2004:

                    Weighted                            Weighted
                     Average    Weighted                 Average
          Number    Remaining    Average      Number    Exercise
Range of Outstand- Contractual  Exercise    Exercisable   Price
Exercise  ing at      Life       Price          at     (exercisable
 Price    June 30    Years   (Total shares)   June 30    shares)
-------- ---------  ---------- ------------  ----------  ---------
  $.40     400,000     1.00       $.40         400,000      $.40
 .10-.50 1,095,800     5.31        .50         625,800       .50
   .50     795,000     6.41        .50         530,000       .50
 .17-.90   785,000     2.47        .33         765,000       .32
 .40-.60 1,000,000     3.80        .52         630,000       .48
   .43     200,000     7.00        .43         100,000       .43
-------- ---------  ---------- ------------  ----------  ---------
$.10-.90 4,275,800     4.32        .46       3,050,800      $.44
======== =========  ========== ============  ==========  =========

     The following table summarizes the information about the stock options
as of March 31, 2004:

                    Weighted                            Weighted
                     Average    Weighted                 Average
          Number    Remaining    Average      Number    Exercise
Range of Outstand- Contractual  Exercise    Exercisable   Price
Exercise  ing at      Life       Price          at     (exercisable
 Price   March 31    Years   (Total shares)  March 31    shares)
-------- ---------  ---------- ------------  ----------  ---------
  $.40     400,000     1.25       $.40         400,000      $.40
 .10-.50 1,110,000     5.50        .50         640,000       .50
   .50     795,000     6.66        .50         530,000       .50
 .17-.90   785,000     2.72        .33         765,000       .32
 .40-.60 1,000,000     4.05        .52         630,000       .48
-------- ---------  ---------- ------------  ----------  ---------
$.10-.90 4,090,000     4.42        .46       2,965,000      $.44
======== =========  ========== ============  ==========  =========

11. Subsequent Events

     On July 14, 2004 the Company announced that it has acquired a ten percent
(10.0%) equity interest in Castaway Record Company, LLC. and a ten percent
(10.0%) equity interest in OneDisc Distribution Co., LLC. The Company aquired
the equity interest for cash paid of $50,000 for each interest. The CEO of our
Company owns a 40% equity interest in Castaway Record Company, LLC. and a 40%
equity interest in OneDisc Distribution Co., LLC.


                                <page 19>


Item 2. Managements Discussion and Analysis or Plan of Operation

The following plan of operation, 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. is a development stage enterprise formed under the laws of
the State of Oklahoma on March 30, 1999 as Southern Wireless, Inc. It is a
business and technology development enterprise engaged in the development,
marketing, and licensing of emerging technologies and innovative business
strategies and practices, focusing primarily on products, solutions, and
services which support and enhance multimedia management.

     The Company currently can satisfy its current cash requirements
for approximately 90-150 days and has a plan in place to raise additional
working capital by the sale of the marketable securities and shares of
the Company common stock to select perspective individuals. This plan
should provide the additional necessary funds required to enable the
Company to continue marketing its products and enhancing the source code
for ClearVideo until the Company can generate enough cash flow from
operations to sustain its operations.

     The Company does not anticipate any significant cash requirements
for the purchase of any facilities.

     The Company currently has six full-time employees on the payroll. It is
anticipated that the Company will need to hire an additional three to six full-
time employees in order to expand its products and services.

Results of Operations - Period from Inception (March 30, 1999) through
June 30, 2004.

     The Company is considered to be in the development stage as defined in
Statement of Financial Accounting Standards No. 7.  There have been no
significant revenues since incorporation.  For the three months ended June 30,
2004 and 2003, the Company incurred net losses of $230,201 and $107,262, or
$(0.009) and $(0.005) per share, which is primarily the result of payment of
payroll expenses, consulting and professional fees, travel and office expenses.

Liquidity and Capital Resources.

      From inception through July 16, 2004, the Company has issued 24,561,410
shares of its Common Stock to officers, directors and others.  The Company has
no operating history and no material assets other than the license agreement
for ClearVideo and DVDPlus, and the pending patents for Disc Security Tag and
EnXcase. The Company has $41,822 in cash as of June 30, 2004.

     The Company has been in the development stage since its inception. The
Company has had no recurring source of revenue and has incurred operating
losses since inception. These factors 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, 2004 and
2003 financial statements which  expressed substantial doubt about the
Company's ability to continue as a going concern.

                                <page 20>
     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.

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  "Managements 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.

CURRENT TRADING MARKET FOR THE COMPANY'S SECURITIES.

     Currently the Company's stock is traded under the symbol "EXNT" on the
NASD OTC Bulletin Board and, if and when qualified, it intends to apply for
admission to quotation on the NASDAQ Small Cap Market. 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.

ITEM 3. CONTROLS AND PROCEDURES

Within the 90 days prior to the filing date of this report, an evaluation was
carried out (the "Controls Evaluation"), under the supervision and with the
participation of Company's management, including its Chief Executive Officer
("CEO") and the Chief Financial Officer ("CFO"), of the effectiveness of the
Company's "disclosure controls and procedures" (as defined in Section 13a-14 (
c) and 15d-14 ( c) of the Securities Exchange Act of 1934 ("Disclosure
Controls")). Based upon that evaluation, the CEO and CFO has concluded that the
Disclosure Controls are effective to ensure that the information required to be
disclosed by the Company in reports it files or submits under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported as
required by the rules and forms of the Securities Exchange Commission.

The CEO and CFO note that, since the date of the Controls Evaluation to the
date of this report, there have been no significant changes in the Company's
internal controls or in other factors that could significantly affect the
internal controls, including any corrective actions with regard to significant
deficiencies and material weaknesses.
                                <page 21>
PART II OTHER INFORMATION

Item 1. Legal Proceedings
     We are not a party to any material legal proceedings.

Item 2. Changes in Securities
     Not applicable

Item 3. Defaults Upon Senior Securities
     Not applicable

Item 4. Submission of matters to a vote to security Holders
     Not applicable

Item 5. Other Information
     Not applicable

Item 6. Exhibits and Reports on Form 8-K
     (a) Exhibits
         Exhibit 99.1     Certification of financial statements
                          Chief Executive Officer and Chief Financial Officer

     (b) Reports on Form 8-K
         (1)  On April 8, 2004 the Company announced that it has formed a new
division, EnXmedia (www.enxmedia.com), which will be charged with marketing the
various media products it is currently offering.

          (2)  On April 15, 2004 the Company announced that it had filed an
application for a Radio Frequency Identification Deactivation Device (RFID).

          (3)  On April 20, 2004 the Company announced market potential for its
latest patent application for its new Radio Frequency Identification
Deactivation Device (RFID).

          (4)  On May 11, 2004 the Company announced that Stephen Hoelscher has
been elected Chief Financial Officer for EnXnet, Inc.

          (5)  On May 25, 2005 the Company announced it has filed for
International Patent rights under the Patent Cooperation Treaty (PCT) for its
Electronic Article Surveillance (EAS) tag technology.

          (6)  On June 1, 2004 the Company announced that it has received
substantial interest in its EnXcase package designed for its DVDplus dual sided
DVD/CD discs.

          (7)  On June 14, 2004 the Company announced it has filed for Patent
rights covering its design for Electronic Article Surveillance (EAS) tag
technology.

          (8)  On June 18, 2004 the Company announced a change in its
certifying accountants.

          (9)  On July 14, 2004 the Company announced that it has acquired a
ten percent (10.0%) equity interest in Castaway Record Company, LLC. and
OneDisc Distribution Co., LLC. The CEO of our Company owns a 40% equity
interest in Castaway Record Company, LLC. and OneDisc Distribution Co., LLC.
                                <page 22>

SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized

EnXnet, Inc.
(Registrant)

Dated: August 05, 2004
/s/ Ryan Corley
    Ryan Corley - President










































                                <page 23>