UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

            [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                    FOR THE FISCAL YEAR ENDED MARCH 31, 2006
                                       OR
          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

                        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.)
               11333 E Pine St, Ste 75, Tulsa, Oklahoma 74116
                   (Address of principal executive offices.)
                 Registrant's telephone number: (918) 592-0015

        SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
                                     NONE
        SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                                 COMMON STOCK

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

Check if disclosure of delinquent filers in response to Item 405 of Regulation
S-B is not contained in this form, and no disclosure will be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. [ ]

State issuer's revenues for its most recent fiscal year: $4,575

State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of a specified date within the past 60
days.

Based on the closing price for the Company's Common Stock at May 23, 2006 of
$1.80 per share, the market value of shares held by non-affiliates would be
approximately $29,053,303

As of May 23, 2006 the Registrant had 28,627,893 shares of Common Stock issued
and outstanding.

Transitional Small Business Disclosure Format        Yes [  ] No [X]

                                     PART I

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-KSB contains forward-looking statements regarding
the Company, its business, prospects and results of operations and views with
respect to future events and performance. These forward-looking statements are
subject to risks and uncertainties posed by many factors and events that could
cause the Company's actual business, prospects and results of operations to
differ materially from historical results or those that may be anticipated by
such forward-looking statements. Words used in this Report such as "anticipate"
"believe," "effect," "may," "will" and similar expressions are intended to
identify forward-looking statements but are not exclusive means of identifying
such statements. Factors that might cause such a difference include, but are
not limited to, those discussed herein as well as those discussed under the
caption "Management's Discussion and Analysis of Financial Condition and
Results of Operations" as well as those discussed elsewhere in the Report.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this Report. The Company
undertakes no obligation to revise any forward-looking statements in order to
reflect events or circumstances that may subsequently arise. In addition, the
disclosures under the caption "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Risk Factors that May Affect
Future Results" consist principally of a brief discussion of risks that may
affect future results and are, in their entirety, forward-looking in nature.
Readers are urged to carefully review and consider the various disclosures
made by the Company in this Report, as well as the Company's annual, periodic
and current reports filed with the Commission, and those described from time
to time in the Company's press releases and other communications, which
attempt to advise interested parties of the risks and factors that may affect
the Company's business.

ITEM 1.   DESCRIPTION OF BUSINESS

THE BUSINESS

EnXnet, Inc. (the "Company") was 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

ThinDisc

The ThinDisc has many applications, a primary and high-volume use is stored
value cards combining magnetic stripe and bar code data with optical media, in
Compact Disc (CD), Digital Video Disc (DVD) format, or any other optical disc
readable products. Including the optical disc readability allows issuers to
promote their products with both audio and video messages while providing their
customers with added value and convenience when using a stored value card.
Stored value cards include, but are not limited to, debit, event tickets, gift,
health services, incentive, loyalty, merchandise, payroll, prepaid phone,
promotion, room key, or other monetary transaction cards. Stored value cards
are one of the most dynamic and fastest growing products in the financial
industry. Anyone who makes purchases with a merchant gift card, places phone
calls with a prepaid telephone card, or buys goods or services with a prepaid
debit card is using a stored value card. The Company has filed for a United
States and an international patent covering the technology included in the
Thin Disc.

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.

Disc Security Tag

Disc Security Tag,(DSTag), is an invention which utilizes proprietary
Electronic Article Surveillance (EAS) tags embedded or adhered to 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. On
May 23, 2003, the Company filed a patent for DSTag and on May 21, 2004, the
Company filed an international patent for DSTag.

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.
On October 10, 2003, the Company filed for a United States patent on EnXcase
and on September 27, 2004 the Company filed for an international patent.

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.

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.

Manufacturing

The Company will not manufacture any of its products. We will outsource of any
manufacturing needs.

Distribution

The Company has not distributed any of the products created with the use of
the Company's technology. The licensees of the Company's product offerings will
be responsible for the distribution. The Company plans to match manufacturers
with
its licensees to facilitate sale efforts.

Marketing

The Company markets ThinDisc and DVDPlus, and intends to market Security Tags,
EnXCase, and ClearVideo by licensing the technology to individual
manufacturers.  Manufacturers will promote this product offering to
distributors, production companies, and the content creation firms in order to
increase their sales.

Patents

The Company has filed for a patent covering ThinDisc.  The Company believes
that this patent will afford protection under existing patent laws against
infringement. There is no assurance, however, that third parties will not
attempt to infringe on the ThinDisc patents.

Iterated Systems, Inc., the developer and licensor of ClearVideo software has
twenty-four U.S. Patents and fourteen various international patents covering
the methods, apparatus and processes used in compressing digital data, fractal
encoding of data streams, fractal transformation of data, fractal compression
of data, protecting the technology.  The Company believes that these patents
afford protection under existing patent laws against infringement for a period
of time ranging from two years to twelve years. There is no assurance, however,
that third parties will not infringe on the ClearVideo patents.

The Company has filed for a patent covering Disc Security Tag (DSTag).  The
Company believes that this patent will afford protection under existing patent
laws against infringement. There is no assurance, however, that third parties
will not attempt to infringe on the Disc Security Tag (DSTag) patents.

The Company has filed for a patent covering EnXCase.  The Company believes that
this patent will afford protection under existing patent laws against
infringement. There is no assurance, however, that third parties will not
attempt to infringe on the EnXCase patents.

The Company has filed for a patent covering rights for "acousto-magnetic"
Electronic Article Surveillance (EAS) tags. The Company believes that this
patent will afford protection under existing patent laws against infringement.
There is no assurance, however, that third parties will not attempt to infringe
on the "acousto-magnetic" EAS tags patents.

The Company has filed for a patent covering rights for its design for
Electronic Radio Frequency Identification Device Activated by Radiant Means
(ARFIDTag), Hybrid Acousto-Magnetic Radio Frequency Transceiver Device (HYTag),
Electronic Transmission Device for Activation of Electronic Article Surveillance
Systems and Electronic Deactivation Device for RFID Surveillance and Storage
for Electronic Article Surveillance (EAS) tags. The Company believes that this
patent will afford protection under existing patent laws against infringement.
There is no assurance, however, that third parties will not attempt to infringe
on the aformentioned patents.

The Company has filed for a patent covering rights for its rights covering its
design for a hybrid Electronic Article Surveillance (EAS) device (HyTag). The
Company believes that this patent will afford protection under existing patent
laws against infringement. There is no assurance, however, that third parties
will not attempt to infringe on the HyTag tag patents.

Competition

There are numerous companies offering various types of services and products
similar to the Company's, some of which have more financial and technical
resources than the Company and there can be no assurance that in the future,
the Company will be able to compete successfully with our competitors.

There are numerous companies offering various types of security tag
technologies and services.  The Company can offer no assurance that in the
future, the Company will be able to compete successfully with other companies
providing similar technology and services.

Governmental Regulation

The Company is not aware of any governmental regulations which affect the
manufacture, licensing, development or sale of any of its products other than
those imposed applicable to technical data included in Export/Import
Regulations imposed by the United States government and those controlling
regulations and regulations of countries into which any products may be
imported.

Company's Office

The Company's offices and technology center are located at 11333 E Pine St,
Ste 75, Tulsa, Oklahoma 74116 and its telephone number is (918) 592-0015.


Employees

The Company has four full-time employees and four consultants.

Risk Factors

1.  No Operating History and limited Revenues. The Company has no record of
profitable operations and there is nothing at this times upon which to base
assumptions that the Company's plans will ultimately prove successful.  The
Company's Independent Certified Public Accountant's report on the Company's
March 31, 2006 and 2005, financial statements contained an explanatory paragraph
which expressed substantial doubt about the Company's ability to continue as a
going concern due to the Company's recurring losses from operations and working
capital deficit.

2.  Lack of Market Research. The Company has conducted limited research and has
not engaged other entities on its behalf to conduct market research to provide
management with assurance that market demand exists for the business
contemplated by the Company.

3.  Securities are Subject to Penny Stock Rules.  The Company's shares are
"penny stocks" consequently they are subject to Securities and Exchange
Commission regulations which impose sales practice requirements upon brokers and
dealers to make risk disclosures to customers before effecting any transactions
therein.

4.  Lack of Key Personnel Insurance. The Company has not obtained key personnel
life insurance on the lives of any of the officers or directors of the Company.
The death or unavailability of one or all of the officers or directors of the
Company could have a material adverse impact on the operation of the Company.

5.  No Insurance Coverage. The Company, like other companies in its industry, is
finding it difficult to obtain adequate insurance coverage against possible
liabilities that may be incurred in conducting its business activities. At
present, the Company has not secured any liability insurance. The Company has
potential liability from its general business activities, and accordingly, it
could be rendered insolvent by a serious error or omission.

6.  Uninsured Risks. The Company may not be insured against all losses or
liabilities which may arise from operations, either because such insurance is
unavailable or because the Company has elected not to purchase such insurance
due to high premium costs or other reasons.

7.  Need for Subsequent Funding. The Company believes it will need to raise
additional funds in order to achieve profitable operations. The Company's
continued operations therefore will depend upon the availability of cash flow,
if any, from its operations or its ability to raise additional funds through
bank borrowings or equity or debt financing. There is no assurance that the
Company will be able to obtain additional funding when needed, or that such
funding, if available, can be obtained on terms acceptable to the Company. If
the Company cannot obtain needed funds, it may be forced to curtail or cease its
activities.

8.  Need for Additional Key Personnel. At the present time, the Company employs
four full-time employees.  The success of the Company's proposed business will
depend, in part, upon the ability to attract and retain qualified employees. The
Company believes that it will be able to attract competent employees, but no
assurance can be given that the Company will be successful in this regard. If
the Company were unable to engage and retain the necessary personnel, its
business would be materially and adversely affected.

9.  Reliance upon Directors and Officers. The Company is wholly dependent, at
the present, upon the personal efforts and abilities of its Officers and
employees who will exercise control over the day-to-day affairs of the Company,
and upon its Directors, most of whom are engaged in other activities, and will
devote limited time to the Company's activities. Accordingly, while the Company
may solicit business through its Officers, there can be no assurance as to the
volume of business, if any, which the Company may succeed in obtaining, nor that
its proposed operations will prove to be profitable. As of the date hereof, the
Company does not have any commitments regarding its proposed operations and
there can be no assurance that any commitments will be forthcoming.

10.  Issuance of Additional Shares. As of May 23, 2006, approximately
171,372,107 shares of Common Stock or 85.69% of the 200,000,000 authorized
shares of Common Stock of the Company remain unissued. The Board of Directors
has the power to issue such shares, without shareholder approval. The Company
may also issue additional shares of Common Stock pursuant to a plan and
agreement of merger with a private corporation. Although the Company presently
has no commitments, contracts or intentions to issue any additional shares to
other persons, the Company may in the future attempt to issue shares to raise
capital, acquire products, equipment or properties, or for other corporate
purposes.

11.  Non-Arms' Length Transaction. The number of shares of Common stock issued
to present shareholders of the Company was arbitrarily priced and may not be
considered the product of arms' length transactions.

12.  Indemnification of Officers and Directors for Securities Liabilities. The
Articles of Incorporation of the Company provide that the Company may indemnify
any Director, Officer, agent and/or employee as to those liabilities and on
those terms and conditions as are specified in the Oklahoma Business Corporation
Act. Further, the Company may purchase and maintain insurance on behalf of any
such persons whether or not the Company would have the power to indemnify such
person against the liability insured against. The foregoing could result in
substantial expenditures by the Company and prevent any recovery from such
Officers, Directors, agents and employees for losses incurred by the Company as
a result of their actions. Further, the Company has been advised that in the
opinion of the Securities and Exchange Commission, indemnification is against
public policy as expressed in the Securities Act of 1933, as amended, and is,
therefore, unenforceable.

13.  Competition. The Company believes that it will have competitors and
potential competitors, many of which may have considerably greater financial and
other resources than the Company.

14. Limited Public Market for Securities. At present, Currently the Company's
stock is traded under the symbol "EXNT" on the NASD OTC Bulletin Board, and
under the symbol "AOHMDW" on the Frankfurt, Berlin and Stuttgart Stock Exchanges
in Germany The stock has traded sporadically for the last fifty four months.
There is no assurance that a trading market will continue to develop in the
future, or that it will be sustained. A shareholder of the Company's securities
may, therefore, be unable to resell the securities should he/she desire to do
so. Furthermore, it is unlikely that a lending institution will accept the
Company's securities as pledged collateral for loans unless a regular trading
market develops.

15.  Cumulative Voting, Preemptive Rights and Control. There are no preemptive
rights in connection with the Company's Common Stock. Cumulative voting in the
election of Directors is not provided for. Accordingly, the holders of a
majority of the shares of Common Stock, present in person or by proxy, will be
able to elect all of the Company's Board of Directors.

16.  No Dividends Anticipated. At the present time the Company does not
anticipate paying dividends, cash or otherwise, on its Common Stock in the
foreseeable future. Future dividends will depend on earnings, if any, of the
Company, its financial requirements and other factors. Investors who anticipate
the need of an immediate income from their investment in the Company's Common
Stock should refrain from purchasing the Company's securities.

ITEM 2. DESCRIPTION OF PROPERTY

The Company does not own any real property.  The Company owns personal property
in the form of licenses and office equipment.  The Company currently leases its
office and technology space in Tulsa, OK for $774 per month.

The Company's offices are currently adequate and suitable for its operations.
The Company will relocate its offices as the need arises. However, currently the
Company has not entered into any negotiations with anyone to relocate its
offices.

ITEM 3. LEGAL PROCEEDINGS

We may from time to time be parties to various legal actions. The Company is
involved in litigation in the ordinary course of business. Currently we are
being sued by a party to two agreements with the Company alleging breach of
contract, fraud, and breach of fiduciary duty. Based on information currently
available, it is impossible to determine the outcome or any potential adverse
effect the outcome will have on the Company. If there were a potential adverse
effect on the Company an estimate of the loss to the Company cannot be made at
this time.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders of the Company during
the quarter ended March 31, 2006.

ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS

MARKET INFORMATION

Currently the Company's stock is traded under the symbol "EXNT" on the NASD OTC
Bulletin Board, and the symbol "AOHMDW" on the Frankfurt, Berlin and Stuttgart
Stock Exchanges in Germany. 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.

HOLDERS

As of May 23, 2006 there were approximately 111 stockholders of record of the
Common Stock, this does not reflect those shares held beneficially or in
"street" name.

DIVIDEND POLICY

The Company has never declared or paid any cash dividends on its Common Stock,
and the Company currently intends to retain any future earnings to fund the
development of its business and therefore does not anticipate paying any cash
dividends on its Common Stock in the foreseeable future. Future declaration and
payment of dividends on its Common Stock, if any, will be determined in light of
the then-current conditions, including the Company's earnings, operations,
capital requirements, financial conditions, restrictions in financing
agreements, and other factors deemed relevant by the Board of Directors.

RECENT SALES OF UNREGISTERED SECURITIES

There have been no recent sales of unregistered securities since March 31, 2006.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

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. was 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 60-90 days and has a plan to raise additional working capital by
the sale of shares of the Company common stock to select perspective individuals
and from additional borrowings. Additionally, holders of outstanding stock
options have been exercising those options which have provided additional
working capital for the Company. This plan should provide the additional
necessary funds required to enable the Company to continue marketing and
developing its products until the Company can generate enough cash flow from
sales to sustain its operations.

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

The Company currently has four full-time employees on the payroll. It is
anticipated that the Company will not need to hire additional employees in order
to expand the marketing and developing of its products. The Company currently
has arrangements with marketing affiliates Corporate Disc for our DVDPlus
product and with One28 Marketing Group and Interactive Affinities for our
ThinDisc product. Currently our employees and other outside consultants are used
for the further development of our products.

Results of Operations - March 31, 2006 and 2005.

During the years ended March 31, 2006 and 2005 our revenues from operations were
$4,575 and $395,046. Gross profits from these revenues were $2,857 and $103,824,
respectively. Revenues decreased substantially as we refocused our efforts on
developing the ThinDisc technologies and developing marketing affiliates. For
the years ended March 31, 2006 and 2005, the Company incurred operating expenses
of $595,477 and $741,965. The decrease in operating expenses of $146,488 (20%)
is attributed to a decrease in bad debt expense of $100,022; a decrease in
payroll expense of $52,154, a result of decreasing our staff from five to four
employees; a increase in professional fees of $69,479, a result of legal fees
associated with defending the Company against a law suit; and a decrease in all
other expenses of $63,791. This includes a decrease in consulting expense of
$14,600, a decrease in advertising expense of $9,333, a decrease in office
expense of $12,266, a decrease in occupancy expenses of $13,113, a decrease in
travel expense of $9,303 and a decrease in all other operating expenses of
$5,176. The decrease in these operating expenses were the result of the Company
reducing its operational expenses in order to conserve te Company's working
capital. During the years ended March 31, 2006 and 2005 we incurred net losses
of $670,324 and $733,624 or $(0.025) and $(0.030) per share.

Liquidity and Capital Resources.

From inception through May 23, 2006, the Company has issued 28,627,893 shares of
its Common Stock to officers, directors and others.  The Company has little
operating history and no material assets other than the license agreement for
ClearVideo and DVDPlus, and the pending patents for ThinDisc, Disc Security Tag,
EnXCase, "acousto-magnetic" EAS tags, ARFIDTag and HyTag. The Company has
$121,047 in cash as of March 31, 2006. In April and May 2006, the Company
received $5,000 from stock options being exercised.

The Company had no recurring source of revenue and has incurred operating losses
since inception. During the year ended March 31, 2005 the Company started
receiving significant revenues from the sales of its products and is no longer
considered to be in the development stage, however, during the year ended March
31, 2006 we did not receive any significant revenues. The Company has incurred
operating losses each year since its inception and has had a working capital
deficit at March 31, 2006 and 2005. At March 31, 2006 and 2005 the working
capital deficit was $990,295 and $1,188,682, respectively. 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, 2006 and 2005 financial statements which expressed
substantial doubt about the Company's ability to continue as a going concern.

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.

ITEM 7. FINANCIAL STATEMENTS

The information for this Item is included beginning on Page F-1 of this Annual
Report on Form 10-KSB.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

Pattillo, Brown & Hill, LLP is the Company's independent auditor. At no time has
there been any disagreement with such accountants regarding any matter of
accounting principals or practices, financial statement disclosure, or auditing
scope or procedure.

(a) Previous Independent Auditor:

On September 12, 2005, The Company received written communication from Sprouse &
Anderson, LLP ("Sprouse & Anderson") stating that the Audit Retention Committee
of Sprouse & Anderson had elected to decline to stand for re-election for the
audit of the Registrant for the year ended March 31, 2006.

Sprouse & Anderson's last reported on Registrant's financial statements as of
June 9, 2005. The report, which covered the two fiscal years ended March 31,
2005, and 2004, was an unqualified report modified for going concern. While
Sprouse & Anderson expressed concern as to the Registrant's ability to remain a
going concern, neither the report nor the financial statements for the periods
contained any other adverse opinion or disclaimer of opinion, nor were they
modified as to audit scope or accounting principles.

The auditors' report of Sprouse & Anderson on the financial statements of
EnXnet, Inc. as of and for the years ended March 31, 2005 and 2004 contained the
following paragraph:

"The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.  As discussed in Note 2
to the financial statements, the Company has a working capital deficit
and has incurred losses since inception.  These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
Management's plans in regard to these matters are also described in Note 2.
The financial statements do not include any adjustments that might result
from the outcome of this uncertainty."

During Enxnet's past two fiscal years ending March 31, 2005 and 2004 and the
subsequent interim period preceding the date of Sprouse & Anderson's notice of
it's decline to stand for re-election, the Registrant did not have any
disagreements with Sprouse & Anderson on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of Sprouse & Anderson, would
have caused it to make reference to the subject matter of the disagreements in
connection with its reports. In addition, there have been no reportable events
as defined in item 304(a)(1)(v) of Regulation S-K during the two most recent
fiscal years.

Sprouse & Anderson furnished us with a letter addressed to the SEC stating that
it agrees with the above statements. A copy of the letter to the SEC dated
September 16, 2005, was filed as an exhibit to our Form 8-K filed on September
22, 2005 (SEC File No. 000-30675)

(b) New Independent Auditor:

We engaged Pattillo, Brown, & Hill LLP on March 10, 2006 as our new independent
auditor. Prior to such date, we did not consult with Pattillo, Brown & Hill LLP
regarding (i) the application of accounting principles, (ii) the type of audit
opinion that might be rendered by Pattillo, Brown & Hill LLP, or (iii) any other
matter that was subject of a disagreement between us and our former independent
auditor as described in Item 304(a)(1)(iv) of Regulation S-B.

ITEM 8A. CONTROL AND PROCEDURES

We conducted an evaluation of the effectiveness of the design and operation of
our "disclosure controls and procedures" (Disclosure Controls) as of the end of
the period covered by this Annual Report. The controls evaluation was done under
the supervision and with the participation of management, including our Chief
Executive Officer (CEO) and Chief Financial Officer (CFO).

Attached as exhibits to this Annual Report are certifications of the CEO and the
CFO, which are required in accordance with Rule 13a-14 of the Exchange Act. This
"Controls and Procedures" section includes the information concerning the
controls evaluation referred to in the certifications and it should be read in
conjunction with the certifications for a more complete understanding of the
topics presented.

Definition of Disclosure Controls

Disclosure Controls are controls and procedures designed to reasonably assure
that information required to be disclosed in our reports filed under the
Exchange Act, such as this Quarterly Report, is recorded, processed, summarized
and reported within the time periods specified in the Securities and Exchange
Commission's rules and forms. Disclosure Controls are also designed to
reasonably assure that such information is accumulated and communicated to our
management, including the CEO and CFO, as appropriate to allow timely decisions
regarding required disclosure. Our Disclosure Controls include components of our
internal control over financial reporting, which consists of control processes
designed to provide reasonable assurance regarding the reliability of our
financial reporting and the preparation of financial statements in accordance
with generally accepted accounting principles in the U.S. To the extent that
components of our internal control over financial reporting are included within
our Disclosure Controls, they are included in the scope of our quarterly
controls evaluation.

Limitations on the Effectiveness of Controls

Our management, including the CEO and CFO, does not expect that our Disclosure
Controls or our internal control over financial reporting will prevent all error
and all fraud. A control system, no matter how well designed and operated, can
provide only reasonable, not absolute, assurance that the control system's
objectives will be met. Further, the design of a control system must reflect the
fact that there are resource constraints, and the benefits of controls must be
considered relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that
all control issues and instances of fraud, if any, within the company have been
detected. These inherent limitations include the realities that judgments in
decision-making can be faulty and that breakdowns can occur because of simple
error or mistake. Controls can also be circumvented by the individual acts of
some persons, by collusion of two or more people, or by management override of
the controls. The design of any system of controls is based in part on certain
assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions. Because the business of EnXnet, Inc. is early stage and very
simple, our controls are not complex at this time. Over time, controls may
become inadequate because of changes in conditions or deterioration in the
degree of compliance with policies or procedures. Because of the inherent
limitations in a cost-effective control system, misstatements due to error or
fraud may occur and not be detected.

Scope of the Controls Evaluation

The evaluation of our Disclosure Controls included a review of the controls'
objectives and design, the company's implementation of the controls and the
effect of the controls on the information generated for use in this Annual
Report. In the course of the controls evaluation, we sought to identify data
errors, control problems or acts of fraud and confirm that appropriate
corrective action, including process improvements, were being undertaken. This
type of evaluation is performed on a quarterly basis so that the conclusions of
management, including the CEO and CFO, concerning the effectiveness of the
controls can be reported in our Quarterly Reports on Form 10-KSB. The overall
goals of these various evaluation activities are to monitor our Disclosure
Controls, and to modify them as necessary. Our intent is to maintain the
Disclosure Controls as dynamic systems that change as conditions warrant.

Conclusions

Based upon the controls evaluation, our CEO and CFO have concluded that, subject
to the limitations noted above, as of the end of the period covered by this
Annual Report, our Disclosure Controls were effective to provide reasonable
assurance that material information relating to EnXnet, Inc. is made known to
management, including the CEO and CFO, particularly during the period when our
periodic reports are being prepared.


ITEM 9.   DIRECTORS AND EXECUTIVE OFFICERS.

The officers and directors of the Company are as follows:

Name                Age       Position

Ryan Corley         62        President, CEO, and
                              a member of the Board of Directors

Stephen Hoelscher   47        CFO and Treasurer

W. H. Walker Jr.    53        Member of the Board of Directors

Linda Howard        59        Secretary

All directors hold office until the next annual meeting of shareholders and
until their successors have been elected and qualified.  The Company's officers
are elected by the Board of Directors after each annual meeting of the Company's
shareholders and hold office until their death, or until they resign or have
been removed from office.




Ryan Corley - President, CEO, and a member of the Board of Directors.

Mr. Corley has served as president and a member of the Board of Directors of the
Company since February 5, 2000.  In April 2004 Mr. Corley became a co-founder
and co-managing member of Castaway Record Company, LLC and OneDisc Distribution
Co., LLC. Mr. Corley resigned these positions in October 2004 and became a
Member of the Board of Directors of both companies at that time. In January 2005
Mr. Corley resigned from the Board of Directors of Castaway Record Company, LLC
and OneDisc Distribution Co., LLC and does not hold any position in these
companies. Mr. Corley became a Director of Sure Trace Security Corporation
(formerly Cormax Solutions Inc) on 12-30-2002 and resigned that position on
February 10, 2004. Mr. Corley was the founder of Tsunami Media Corporation
(formerly Gatsby's Coffee Company) and served as Chairman of the Board of
Directors, Chief Executive Officer and Secretary/Treasurer since its inception
September 10, 1998, until his resignation on February 22, 2000. Mr. Corley
received a Bachelor of Science in Business Administration and a Masters in
Business Administration from the University of Tulsa.

Stephen Hoelscher - Chief Financial Officer and Treasurer

Mr. Hoelscher has been Chief Financial Officer of the Company since May 21, 2004
and has been providing accounting consulting services to the Company since
January 2001. Mr. Hoelscher is a Certified Public Accountant and has 25 years of
accounting and auditing experience.  Prior to joining the Company, Mr. Hoelscher
was and continues to be the CFO for Mastodon Ventures, Inc., a financial
consulting business in Austin, Texas since June 2000.  In January 2006, Mr
Hoelscher became a director, secretary and CFO of Telecomm Sales Network, Inc, a
North Carolina based small publicly traded company. Mr. Hoelscher will continue
his work with EnXnet, Mastodon and Telecomm and does not anticipate that this
will interfere with his work for the Company. Mr. Hoelscher was also the
Controller for Aperian, Inc. an Austin, Texas based publicly traded company from
1997 to 2000.  Mr. Hoelscher received a Bachelor of Business Administration from
West Texas A&M University (formerly West Texas State University) in Canyon,
Texas in 1981.

W. H. Walker Jr. - Member of the Board of Directors

Mr. Walker is the founder of the Company. He has been a Director of the Company
since its founding and served as its President until February 5, 2000.  For the
past five years Mr. Walker has been the Secretary, a Director, and fifty percent
stockholder of Food and Beverage, Inc., Food & Beverage II, Inc., Food &
Beverage IV, Inc., and McGill's 61st, Inc. These companies are in the restaurant
business.  Mr. Walker serves each of these companies in the capacity of Chief
Financial Officer and Co-Manager of Operations. Mr. Walker is an active investor
in commercial real estate and other business ventures.

Linda Howard - Secretary of the Board of Directors

Ms. Howard has been employed by the Company since July 2001 and has served in
the capacity of executive assistant. Prior to coming to the Company she managed
Sooner Beauty Supply in Tulsa, OK from May 1998 to June 2001. Ms. Howard has
worked with management for Doctor's Hospital; OTASCO; Yellow Freight System;
Blue Cross and Blue Shield; and Skelly Oil Company. Ms. Howard attended Tulsa
Community College.



ITEM 10.   EXECUTIVE COMPENSATION.

Summary Compensation.

SUMMARY COMPENSATION TABLE. The following table summarizes the compensation
earned during the fiscal year by our chief executive officer who served during
the fiscal years ended March 31, 2006 and 2005.

                           SUMMARY COMPENSATION TABLE (1)
Name                                        OTHER
Position     YEAR    SALARY    BONUS    COMPENSATION
Ryan Corley  2006   $28,000     -0-          -0-
CEO          2005    36,000     -0-          -0-

(1) There is a stock option plan for the benefit of the Company's officers and
directors. There is no pension, or profit sharing plan for the benefit of the
Company's officers and directors.

Option Grants.

The following table sets forth certain information concerning stock options
granted to the named officers and directors during the years ended March 31,
2006 and 2005.

                              INDIVIDUAL GRANTS
                 Number of
                 Securities Percent of Total
                 Underlying Options Granted  Exercise or
                  Options   to Employees in  Base Price
                 Granted(#)   Fiscal Year     ($/share)  Expiration Date
Name
Stephen Hoelscher 100,000        28.57           .43        07/02/2011
Stephen Hoelscher  60,000        27.27          1.55        07/23/2011
Linda Howard       60,000        27.27          1.55        07/23/2011

Mr. Hoelscher exercised 25,000 stock options for restricted Rule 144 stock at an
exercise price of $.40 per option in the Year ended March 31, 2006. No stock
options were exercised by any of the officers or directors in the year ending
March 31, 2005.

Long-Term Incentive Plan Awards.

The Company does not have any long-term incentive plans that provide
compensation intended to serve as incentive for performance to occur over a
period longer than one fiscal year, whether such performance is measured by
reference to financial performance of the Company or an affiliate, the Company's
stock price, or any other measure.

Compensation of Directors.

The Board has implemented a plan to award options to non-employee Board members.
Mr. Walker was awarded 45,000 options under the plan during the year ending
March 31, 2004. There are no contractual arrangements with any member of the
Board of Directors.



ITEM 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

The following table sets forth the Common Stock ownership as of May 23, 2006, of
each person known by the Company to be the beneficial owner of five percent or
more of the Company's Common Stock, each director individually and all officers
and directors of the Company as a group.  Each person has sole voting and
investment power with respect to the shares of Common Stock shown, unless
otherwise noted, and all ownership is of record and beneficial.

                                                           Percentage
Name and            Number of                               of Shares
address of owner    Shares         Position                  Owned

Ryan Corley         12,371,979     President                43.22%
P.O. Box 140021                    CEO, and a member of the
Austin, TX 78714                   Board of Directors

Stephen Hoelscher       70,090     Chief Financial Officer   0.14%
900 Indian Springs Rd              and Treasurer
Georgetown, TX 78628

W. H. Walker, Jr.        5,100     Member of the Board       0.02%
3420 East 61st Place               of Directors
Tulsa, OK 74136

Linda Howard            40,000     Secretary to the Board    0.24%
11333 Pine St, Ste 75
Tulsa, OK 74116

All officers and    12,487,169                              43.62%
directors as a
group (4 persons)

ITEM 12.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

On December 22, 1999, the Company and its current president, Ryan Corley entered
into a four-year exclusive licensing agreement whereby Corley, as nominee for a
corporation to be formed was granted the right to use certain technology that
the Company may acquire in the future relating to the compression of video and
streaming real time video via the Internet.  Pursuant to the license between the
Company and Corley, the corporation to be formed will receive a limited
exclusive license for the use of the technology solely for video/audio streaming
over the Internet of TV type programming, news content and programming, sport
content and programming and non-exclusive use for documentary content and
programming. On January 2, 2002, the Company purchased the licensing agreement
from Corley. The Company issued 1,000,000 shares of restricted common stock
valued at $100,000 for the license.

On January 05, 2004, the Company entered into a funding arrangement whereby Ryan
Corley loaned the Company an additional $40,890. This loan is payable on demand
bearing interest at the rate of 6% per annum and is convertible into 163,560
shares of restricted Rule 144 Common Stock on demand.

On February 18, 2004, the Company entered into a funding arrangement whereby
Ryan Corley loaned the Company an additional $38,325. This loan is payable on
demand bearing interest at the rate of 6% per annum and is convertible into
153,300 shares of restricted Rule 144 Common Stock on demand.

On September 24, 2004, the Company entered into a funding arrangement whereby
Ryan Corley loaned the Company an additional $46,000. This loan is payable on
demand bearing interest at the rate of 6% per annum and is convertible into
230,000 shares of restricted Rule 144 Common Stock on demand.


ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

 a. Exhibit Index
EXHIBIT NO.  EXHIBIT DESCRIPTION               LOCATION
- -----------  -------------------               --------
3.1          Articles of Incorporation.        Incorporated by
                                               reference to
                                               exhibit 3.1 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

3.2	   First Amendment to Articles
             of Incorporation.                 Incorporated by
                                               reference to
                                               exhibit 3.2 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

3.3	   Second Amendment to Articles
             of Incorporation.                 Incorporated by
                                               reference to
                                               exhibit 3.3 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

3.4          Bylaws.                           Incorporated by
                                               reference to
                                               exhibit 3.4 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

10.1	   Sub-License Agreement With
             Ryan Corley as Nominee.           Incorporated by
                                               reference to
                                               exhibit 10.1 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

10.2         Licensing Agreement for           Incorporated by
             ClearVideo                        reference to
                                               exhibit 10.2 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

10.3	       Licensing Agreement for
             ClearVideo - Addendum.            Incorporated by
                                               reference to
                                               exhibit 10.3 of
                                               Registrant's
                                               Form 10-SB filed May 22,
                                               2000 (File No. 000-
                                               30675)

31.1  Certification of Chief Operating Officer

31.2 Certification of Chief Financial Officer

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


ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

Our board of directors appointed Sprouse & Anderson, L.L.P. as independent
auditors to audit our financial statements for the year ended March 31, 2005.
The aggregate fees billed by Sprouse & Anderson, L.L.P. for professional
services rendered for the audits of our annual financial statements included in
this Annual report on Form 10-KSB for the fiscal years ended March 31, 2006 and
March 31, 2005 was $17,800 and $11,500, respectively.

Audit Related Fees

For the Company's fiscal year ended March 31, 2006 and 2005, we were not billed
for professional services rendered for any audit related fees.

Tax Related Fees

For the Company's fiscal year ended March 31, 2006 and 2005, we were not billed
for professional services rendered for tax compliance, tax advice, and tax
planning.

All Other Fees

The Company did not incur any other fees related to services rendered by our
principal accountants for the fiscal years ended March 31, 2006 and 2005.







Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of this Registrant and
in the capacities and on the dates indicated.

            SIGNATURE              TITLE                           DATE
            ---------              -----                           ----
/s/ Ryan Corley           President,                             6/28/2006
----------------------    CEO, and a member of the
    Ryan Corley           Board of Directors

/s/ Stephen Hoelscher     Chief Financial Officer                6/28/2006
---------------------     and Treasurer
    Stephen Hoelscher

/s/ W. H. Walker, Jr.     Member of the                          6/28/2006
----------------------    Board of Directors
    W. H. Walker, Jr.

Pattillo, Brown and Hill, L.L.P.
Certified Public Accountants


































Board of Directors and Stockholders
EnXnet, Inc.


INDEPENDENT AUDITORS REPORT


We have audited the accompanying balance sheets of EnXnet, Inc. (the Company),
as of March 31, 2006, and the related statements of loss, changes in
stockholders' equity (deficit) and cash flows for the year then ended. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.

We conducted our audit in accordance with auditing standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.  We believe
that our audit provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of EnXnet, Inc. as of March 31,
2006, and the results of its operations and its cash flows for the year then
ended in conformity with accounting principles generally accepted in the United
States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.  As discussed in Note 2 to the
financial statements, the Company has a working capital deficit and has
incurred losses since inception.  These conditions raise substantial doubt
about the Company's ability to continue as a going concern.  Management's plans
in regard to these matters are also described in Note 2. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.


                                   /s/ Pattillo, Brown and Hill, L.L.P.


Waco, Texas
June 9, 2006












                                F-1
Sprouse & Anderson, L.L.P.
Certified Public Accountants


Board of Directors and Stockholders
EnXnet, Inc.


INDEPENDENT AUDITORS REPORT


We have audited the accompanying balance sheet of EnXnet, Inc. (the Company),
as of March 31, 2005, and the related statements of loss, changes in
stockholders' equity (deficit) and cash flows for the year then ended. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based
on our audit.

We conducted our audit in accordance with auditing standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of EnXnet, Inc.
as of March 31, 2005, and the results of its operations
and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.  As discussed in Note 2
to the financial statements, the Company has a working capital deficit
and has incurred losses since inception.  These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
Management's plans in regard to these matters are also described in Note 2.
The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.


                                   /s/ Sprouse & Anderson L.L.P.


Austin, Texas
June 9, 2005






                                F-2
EnXnet, Inc
BALANCE SHEETS

ASSETS                                                 March 31,
                                                    2006       2005
Current assets:
Cash                                              $121,047  $   6,345
Accounts receivable (net allowance for doubtful
accounts of $-0-, and 100,022, respectively)          -        18,219
Prepaid expense                                        645      8,560
                                                  ________   ________
Total current assets                               121,692     33,124
                                                  ________   ________

Equipment, net                                       3,658      4,970
                                                  ________   ________
Other assets:
Deposits and deferred charges                        1,137      1,137
Licenses, net                                      159,905    199,053
Marketable securities                                 -        70,617
Investment                                          25,000    100,000
                                                  ________    _______
Total other assets                                 186,042    370,807
                                                  ________    _______
Total assets                                      $311,392   $408,901
                                                  ========    =======

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
Accounts payable and accrued expenses            $ 167,437  $ 153,287
Advances from officer-related party                  4,005      3,270
Advances from stockholder                           31,000    234,840
Notes payable                                      270,942    257,194
Notes payable - related party                      638,603    573,215
                                                 _________   ________
Total current liabilities                        1,111,987  1,221,806
                                                 _________   ________

Stockholders' equity (deficit):
Common stock, $.00005 par value; 200,000,000
  shares authorized; 28,627,893 and 25,058,043
  issued and outstanding March 31, 2006 and
  March 31, 2005, respectively                       1,431      1,253
Additional paid-in capital                       2,506,472  1,714,689
Common stock subscribed                               -          -
Retained deficit                                (3,193,498)(2,523,174)
Deferred consideration                             (40,000)      -
Other comprehensive income                         (75,000)    (5,673)
                                                  ________   ________
Total stockholders' equity (deficit)              (800,595)  (812,905)
                                                  ________   ________
Total liabilities and
  stockholders' equity (deficit)                 $ 311,392  $ 408,901
                                                  ========   ========
The accompanying notes are an integral part of these financial statements.
                                F-3
EnXnet, Inc.
STATEMENTS OF LOSS



                                              For the Years Ended
                                                   March 31,
                                                 2006      2005

Revenues                                    $    4,575   $395,046
Cost of revenues                                 1,718    291,222
                                               _______    _______
Gross Profit                                     2,857    103,824

Operating expenses:
Consulting fees                                206,486    221,086
Depreciation & amortization                     40,460     42,612
Bad debts                                          -      100,022
Royalties                                          570        450
Advertising                                        -        9,333
Payroll                                        147,275    199,429
Professional services                          147,667     78,188
Occupancy expense                               24,934     38,047
Office expense                                  15,385     27,651
Travel expense                                  11,865     21,168
Other expense                                      835      3,979
                                               _______    _______
Total operating expenses                       595,477    741,965
                                               _______    _______

Operating loss                                (592,620)  (638,141)

Other Income (expense):
Gain (Loss) on sale of
 marketable securities                        ( 22,989)     2,478
Bad debt recovery                                3,466        -
Other income                                     2,509        -
Interest expense                               (60,690)   (97,961)
                                               _______    _______
Net loss                                      (670,324)  (733,624)

Other comprehensive income:
Net unrealized gain (loss) on:
 marketable securities                             -        9,958
 investments                                  ( 69,327)       -
                                               _______    _______
Comprehensive income (loss)                 $ (739,651) $(723,666)
                                               =======    =======

Net loss per share-basic
  and diluted                               $    (.025) $ (0.030)
                                               ========   =======
Weighted average number
of shares outstanding                        26,411,875 24,711,563
                                             ========== ==========
The accompanying notes are an integral part of these financial statements.
                                F-4


EnXnet, Inc.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

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


                                 Common Stock          Additional
Other
                        ____________________________    Paid-in     Retained
Deferred     Comprehensive
                          Shares   Amount Subscribed    Capital     Deficit
Consideration   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                    250,000     12      -         74,988         -
-              -        75,000
   Services                467,043     24      -        106,521         -
-              -       106,545
   Options exercised        14,200      1    19,665       7,099         -
-              -        26,765
Options issued for services   -         -      -         41,310         -
-              -        41,310
Options issued with notes     -         -      -         10,671         -
-              -        10,671
Conversion value of
   debt issued                -         -      -         54,000         -
-              -        54,000
Extension of options          -         -      -         20,696         -
-              -        20,696
Net loss                      -         -      -           -      (  733,624)
-              -      (733,624)
Other comprehensive income    -         -      -           -            -
-             9,958      9,958
                        __________ ______ __________  __________  ___________
__________  _____________  _________
Balance: March 31, 2005 25,058,043 $1,253 $    -     $1,714,689  $(2,523,174) $
-     $      (5,673) $(812,905)
Common stock issued for:
   Cash                    200,000     10      -         49,990         -
-              -        50,000
   Services              1,564,850     78      -        242,243         -
-              -       242,321
   Options exercised       705,000     35      -        178,265         -
-              -       178,300
   Payment of debt       1,100,000     55      -        321,285         -
-              -       321,340
Deferred consideration        -         -      -           -            -
(40,000)          -      ( 40,000)
Net loss                      -         -      -           -      (  670,324)
-              -      (670,324)
Other comprehensive income    -         -      -           -            -
-           (69,327)  ( 69,327)
                        __________ ______ __________  __________  ___________
__________  _____________  _________
Balance: March 31, 2006 28,627,893 $1,431 $    -     $2,506,472  $(3,193,498) $
(40,000) $     (75,000) $(800,595)
                        ========== ====== ==========  ==========  ===========
==========  =============  =========
</TABLE>



The accompanying notes are an integral part of these financial statements.
                                F-5


EnXnet, Inc.
STATEMENTS OF CASH FLOWS


                                              For the Year Ended
                                                    March 31,
                                                 2006       2005
Cash flows from operating activities:
Net loss                                      $(670,324) $(733,624)
Adjustments to reconcile net loss
 to cash provided (used) by
 operating activities:
Depreciation and amortization                    45,444     98,923
Variable option accounting charge                   -       20,696
(Gain)Loss on sale of
 marketable securities                           22,989     (2,478)
Stock issued for services                       237,095    106,545
Options issued for services                       5,226     41,310
Deferred consideration                          (40,000)
Changes in operating assets
 and liabilities:
Accounts and other receivable                    18,219    (14,606)
Prepaid expenses                                  7,915     89,332
Other assets                                        -        1,213
Accounts payable and accrued expenses            88,302     58,530
                                               ________    _______
Net cash used in operating
  activities                                   (285,134)  (334,159)
                                               ________    _______
Investing activities:
Purchase of equipment                               -         (768)
Purchase of equity investments                      -     (100,000)
Proceeds from sale of
 marketable securities                           53,301     90,678
                                                _______    _______
Net cash provided (used) by
 investing activities                            53,301    (10,090)
                                                _______    _______
Financing activities:
Proceeds from note payable - related party          -      251,000
Proceeds from note payable                       50,000        -
Proceeds from advances from
  officer and stockholder 		             76,243    213,623
Proceeds from sale of common stock              228,300    101,765
Repayment of advances                            (8,008)  (221,000)
                                                _______    _______
Net cash provided by financing
 activities                                     346,535    345,388
                                                _______    _______
Net increase (decrease) in cash                 114,702      1,139
Cash, beginning of period                         6,345      5,206
                                                _______    _______
Cash, end of period                            $121,047   $  6,345
                                                =======    =======


The accompanying notes are an integral part of these financial statements.
                                F-6
EnXnet, Inc.
STATEMENTS OF CASH FLOWS - continued







                                              For the Years Ended
                                                   March 31,
                                                2006       2005

Supplemental disclosures of cash flow information:

Cash paid during the period for:
Interest                                        $    -      $   -
Income taxes                                         -          -

Non-cash financing activities:

Conversion of advances to accounts payable           -        10,700
Conversion of advances to notes payable              -       221,000
Issuance of stock for advances from shareholder   271,340       -
Conversion of accrued interest to note payable     74,152       -
Issuance of options for notes payable                -        10,671
Issuance of common stock for services             237,095    106,545
Issuance of stock options for services              5,226     41,310
                                                  =======    =======



























The accompanying notes are an integral part of these financial statements.
                                F-7
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

1. Summary of Accounting Policies

Nature of Business

EnXnet, Inc. (the "Company") was 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.

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.

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 is removed from the accounts and any gain or
loss is reflected in operations.

     The following table details the Company's equipment:
                                                       March 31,
                                                    2006        2005
                                                   ------      ------
     Equipment                                   $ 53,137    $ 53,137
     Accumulated depreciation                     (49,479)    (48,167)
                                                  -------     -------
     Equipment, net                              $  3,658    $  4,970
                                                  =======     =======

Depreciation expenses for the years ended March 31, 2006 and 2005 were $1,312
and $3,772, respectively.

Advertising

Advertising costs are expensed as incurred. Advertising expenses for the
years ended March 31, 2006 and 2005 were $ - and $9,333, respectively.

Reclassifications

Certain amounts have been reclassified from the prior financial statements
for comparative purposes.


                                F-8
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

1. Summary of Accounting Policies - continued

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. 142, "Goodwill and Other Intangible Assets",
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 Company uses the
average cost method for determining the cost basis on realized gains and
losses of investments. The unrealized holding gain or loss represents the net
change in the fair value of those securities and is shown in other
comprehensive income.

Revenue Recognition

Revenue is generally recognized and earned when all of the following
criteria are satisfied: a) persuasive evidence of sales arrangements exists;
b) delivery has occurred; c) the sales price is fixed or determinable, and
d) collectibility is reasonably assured.

Persuasive evidence of an arrangement is demonstrated via a purchase order
from our customers. Delivery occurs when title and all risks of ownership are
transferred to the purchaser which generally occurs when the products are
shipped to the customer. No right of return exists on sales of product except
for defective or damaged products. The sales price to the customer is fixed
upon acceptance of purchase order. To assure that collectibility is
reasonably assured we perform ongoing credit evaluations of all of our
customers.









                                F-9
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

1. Summary of Accounting Policies - continued

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.

Accounts Receivable

Accounts receivable are uncollateralized customer obligations due under
normal trade terms requiring payment within thirty days from the invoice
date or as specified by the invoice and are stated at the amount billed to
the customer.  Customer account balances with invoices dated over ninety
days or ninety days past the due date are considered delinquent.

The carrying amount of accounts receivable is reduced by a valuation
allowance that reflects management's best estimate of the amount that will
not be collected. Management individually reviews all accounts receivable
balances that are considered delinquent and based on an assessment of current
credit worthiness, estimates the portion, if any, of the balance that will
not be collected.  In addition, management periodically evaluates the
adequacy of the allowance based on the Company's past experience.

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 March 31, 2006 and
2005 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. There is no
compensated absences accrued liability on March 31, 2006 and 2005.



                                F-10
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

1. Summary of Accounting Policies - continued

Research and Development Costs

Research and development costs are charged to expense as incurred.

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") require 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 2006 and 2005 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:
                                              2006            2005
                                            --------        --------
   Net loss                As reported     $(670,324)      $(733,624)
                           Proforma        $(678,457)      $(774,170)

   Basic loss per share    As reported        $(.025)         $(.030)
                           Proforma           $(.026)         $(.031)

   Diluted loss per share  As reported        $(.025)         $(.030)
                           Proforma           $(.026)         $(.031)

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 2006; dividend yield of 0%,
expected volatility of 282%, risk free interest rates of 2.0%, and an
expected life of approximately 5.33 years. The following assumptions were for
grants in 2005; dividend yield of 0%, expected volatility of 40%, risk free
interest rates of 1.0%, and an expected life of 7.20 years.
                                F-11
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

1. Summary of Accounting Policies - continued

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.

New Accounting Pronouncements

In May, 2005, The Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 154, "Accounting Changes and Error
Corrections - a Replacement of APB Opinion No. 20 and FASB Statement No. 3
("hereinafter" "SFAS No. 154"). This statement replaces APB Opinion No. 20,
"Accounting Changes" and FASB Statement No. 3, "Reporting Accounting Changes
in Internal Financial Statements" and revises the requirements regarding
accounting for and reporting a change in accounting principle. This statement
requires retrospective application of the accounting change to the financial
statements of prior periods, unless it is impractical to determine the
period-specific effects or the cumulative effect of changing to the new
accounting principle. This statement also addresses the reporting issues
related to a change in accounting principle if it is impractical to determine
the period-specific effects or the cumulative effect of the change. The
adoption of this statement had no immediate material effect on the Company's
financial condition or results of operations.

In February 2006, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 155, "Accounting for Certain Hybrid
Financial Instruments, an Amendment of FASB Standards No. 133 and 140"
(hereinafter "SFAS No. 155"). This statement established the accounting for
certain derivatives embedded in other instruments.  It simplifies accounting
for certain hybrid financial instruments by permitting fair value
remeasurement for any hybrid instrument that contains an embedded derivative
that otherwise would require bifurcation under SFAS No. 133 as well as
eliminating a restriction on the passive derivative instruments that a
qualifying special-purpose entity ("SPE") may hold under SFAS No. 140.  This
statement allows a public entity to irrevocably elect to initially and
subsequently measure a hybrid instrument that would be required to be
separated into a host contract and derivative in its entirety at fair value
(with changes in fair value recognized in earnings) so long as that
instrument is not designated as a hedging instrument pursuant to the
statement.  SFAS No. 140 previously prohibited a qualifying special-purpose
entity from holding a derivative financial instrument that pertains to a
beneficial interest other than another derivative financial instrument.  This
statement is effective for fiscal years beginning after September 15, 2006,
with early adoption permitted as of the beginning of an entity's fiscal year.
Management believes the adoption of this statement will have no impact on the
Company's financial condition or results of operations.


                                F-12
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

1. Summary of Accounting Policies - continued

New Accounting Pronouncements - continued

In March 2006, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 156, "Accounting for Servicing of
Financial Assets-an amendment of FASB Statement No. 140."  This statement
requires an entity to recognize a servicing asset or servicing liability each
time it undertakes an obligation to service a financial asset by entering
into a servicing contract in any of the following situations: a transfer of
the servicer's financial assets that meets the requirements for sale
accounting; a transfer of the servicer's financial assets to a qualifying
special-purpose entity in a guaranteed mortgage securitization in which the
transferor retains all of the resulting securities and classifies them as
either available-for-sale securities or trading securities; or an acquisition
or assumption of an obligation to service a financial asset that does not
relate to financial assets of the servicer or its consolidated affiliates.
The statement also requires all separately recognized servicing assets and
servicing liabilities to be initially measured at fair value, if practicable
and permits an entity to choose either the amortization or fair value method
for subsequent measurement of each class of servicing assets and liabilities.
The statement further permits, at its initial adoption,  a one-time
reclassification of available for sale securities to trading securities by
entities with recognized servicing rights, without calling into question the
treatment of other available for sale securities under Statement 115,
provided that the available for sale securities are identified in some manner
as offsetting the entity's exposure to changes in fair value of servicing
assets or servicing liabilities that a servicer elects to subsequently
measure at fair value and requires separate presentation of servicing assets
and servicing liabilities subsequently measured at fair value in the
statement of financial position and additional disclosures for all separately
recognized servicing assets and servicing liabilities. This statement is
effective for fiscal years beginning after September 15, 2006, with early
adoption permitted as of the beginning of an entity's fiscal year. Management
believes the adoption of this statement will have no impact on the Company's
financial condition or results of operations.

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.  Management is currently in negotiations with potential customers
and with marketing representatives to establish a more developed product
channel.  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.

                               F-13
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

3. Marketable Securities

The Company owned 51,924 shares of Fonar Corporation as of March 31, 2005.
During the year ended March 31, 2006 the Company sold all of its investment
in Fonar and did not have any shares on hand at March 31, 2006. 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.  Management's intent is to hold
these securities therefore they are being shown as a non- current asset. The
Company's marketable consist of the following securities:

                                      2006
          -------------------------------------------------------------
                                                         Unrealized
                               Basis       Fair Value    Gain (Loss)
          Equity Securities  $   -          $   -         $   -
                             ========       ========      ========

                                      2005
          -------------------------------------------------------------
                                                         Unrealized
                               Basis       Fair Value    Gain (Loss)
          Equity Securities  $ 76,290       $70,617      $( 5,673)
                             ========       ========     =========

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:
                                                      2006           2005
                                                     ------         ------
   Unrealized holding gain(loss) recognized
      as of year end  					   $  5,673       $  9,958
   Holding gain (loss) recognized
	in prior years endings                        ( 5,673)       (15,631)
								   ---------	---------
Unrealized holding gain (loss) on investment
      Available for sale                           $   -          $( 5,673)
								   =========      =========

The Company sold certain available-for-sale securities during the year ended
March 31, 2006 and 2005 and received $53,301 and $90,678 in proceeds. Sales
of these securities also resulted in a realized gain (loss) of $(22,989) and
$2,478.









                                F-14
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

5.   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
years ended March 31, 2006 and 2005 was $38,839 and $38,839 and accumulated
amortization was $207,561 and $168,722

     Amortization expense for the next five years is as follows:

                                             March 31,
                                               2007        38,839
                                               2008        38,839
                                               2009        38,839
                                               2010        38,839
                                            Thereafter      4,549
                                                          -------
                                              Total      $159,905
                                                          =======

6.   Income Taxes

At March 31, 2006 and 2005, the Company had net deferred tax assets of
approximately $1,086,000 and $858,000 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 March 31, 2006
and 2005. At March 31, 2006 the Company has net operating loss carryforwards
totaling approximately $3,193,000 which will begin to expire in the year
2015.




                                F-15
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

7. Notes Payable

Notes payable-related party consists of the following:
                                                             March 31,
                                                         2006          2005
                                                       -------      --------
     8% convertible note payable to Ryan Corley,
      President of the Company, due on demand
      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
      3,524,020 common shares                          528,603       463,215
                                                      --------      --------
     Total notes payable-related party 	           $ 638,603     $ 573,215
                                                      ========      ========
Notes payable consist of the following:

       6% convertible notes payable to a
        stockholder, due on demand, convertible
        into a maximum of 462,120 common shares      $  69,318      $ 60,554

       4% convertible notes payable to a
        stockholder, due on demand, convertible
        into a maximum of 350,000 common shares        175,000       175,000

       Non-interest bearing note payable to a           26,624        21,640
        stockholder, with a face value of $30,000,
        discounted at an effective interest rate
        of 6%. Payments begin May 2005 in the
        amount of $5,000 per month, with the option
        to purchase 150,000 common shares at $.20
        per share. The note matured in October 2005.
                                                      --------      --------
     Total notes payable                             $ 270,942      $257,194
                                                      ========      ========
8.  Advances from Officer and Stockholder

During the year ended March 31, 2006 and 2005 a stockholder made additional
unsecured advances totaling $67,000 and $183,300. On July 18, 2005, the
stockholder agreed to exchange $271,340 of the advances for 1,000,000 shares
of the Company's rule 144 common stock. On August 26, 2004 the Company
converted $175,000 of the advances to a convertible note. At March 31, 2006
and 2005, advances from stockholder were $31,000 and $234,840, respectively.

During the year ended March 31, 2006 and 2005, the CEO made additional and
unsecured advances (net) totaling $8,743 and $30,322. During the year ended
March 31, 2006 the Company made payments on these advances of $6,600. On
September 24, 2004 the Company converted $46,000 of the advances to a
convertible note. At March 31, 2006 and 2005, advances from CEO were $4,005
and $3,270, respectively.
                                F-16
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

9. Common Stock Transactions

During the years ended March 31, 2006 and 2005, the Company issued 1,564,850
and 467,043 shares of restricted Rule 144 common stock for services in the
amount of $242,321 and $106,545.

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 year ended March 31, 2006 and 2005,
the Company granted 120,000 and 350,000 stock options to employees,
consultants and members of the Board of Directors.

The Company also issues stock options to consultants to purchase restricted
Rule 144 stock which is not issued under the Plan. During the years ended
March 31, 2006 and 2005, the Company granted 100,000 and 350,000 Options to
consultants to purchase common stock with exercise prices of $.10 to $.43 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 years ended
March 31, 2006 and 2005 in the amounts of $ 5,226 and $41,200.

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:
                                      2006            2005
         Dividends yield                0%              0%
         Expected volatility          282%             40%
         Risk-free interest rate      2.0%            1.0%
         Expected life                5.33 years      7.20 years

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

Pro forma net loss and net loss per share information as of March 31, 2006
and 2005, is presented below:
                                           2006          2005
                                         ========      ========
Pro forma net loss to stockholders      $(678,457)   $(774,170)
Pro forma basic and diluted
     net loss per share                    (0.026)      (0.031)

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.
                              F-17
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

10. Stock Options - continued

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 as of March 31,
2006 and 2005, is presented below:

                                             2006       2005
                                          =========  =========
Options outstanding at beginning of year  4,400,800  4,090,000
Options granted                             420,000    350,000
Options exercised                          (705,000)  ( 14,200)
Options canceled                           (140,000)     (25,000)
                                          ---------  ---------
Options outstanding at end of year        3,975,800  4,400,800
                                          =========  =========

The following table summarizes the information about the stock options
as of March 31, 2006:

                     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      .25       $.40         400,000      $.40
 .10-.40  1,205,800     3.92        .43       1,205,800       .43
   .50      795,000     4.92        .50         795,000       .50
 .50-.90     45,000     4.92        .77          45,000       .77
 .40-.66    960,000     2.39        .53         960,000       .53
   .43      200,000     5.58        .43         200,000       .43
   .20      150,000      .83        .20         150,000       .20
 .10-1.55   220,000     3.00        .89         100,000       .10
--------  ---------  ---------- ------------  ----------  ---------
$.10-1.55 3,975,800     3.54        .45       3,855,800      $.45
========  =========  ========== ============  ==========  =========





                                F-18
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

10. Stock Options - continued

The following table summarizes the information about the stock options
as of March 31, 2005:

                    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      .25       $.40         400,000      $.40
   .50   1,095,800     4.57        .50         945,800       .50
   .50     795,000     5.67        .50         795,000       .50
 .17-.90   760,000     1.80        .33         755,000       .34
 .40-.66 1,000,000     3.09        .52         794,000       .50
   .43     200,000     6.33        .43         150,000       .43
   .20     150,000     1.58        .20         150,000       .20
-------- ---------  ---------- ------------  ----------  ---------
$.17-.90 4,400,800     3.54        .45       3,989,800      $.45
======== =========  ========== ============  ==========  =========


11. Earnings per Share

     Basic income or loss per common share is computed based on the weighted
average number of common shares outstanding during each period. For the years
ended March 31, 2006 and 2005, potentially dilutive securities have not been
included in the diluted loss per common share calculation as they would have
been anti-dilutive.

12. Other Comprehensive Income

       								2006          2005
       							    --------      --------
       Holding gain (loss) during the period	    $  5,673      $  1,558
       Reclassification adjustment for sale of
          securities					         -           8,400
       Impairment of equity investment               (75,000)          -
       							    --------      --------
       Net Gain recognized in other
          comprehensive income                      $(69,327)     $  9,958
								    ========      ========










                                F-19
EnXnet, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 and 2005

13. Investment

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
acquired 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. Castaway and
OneDisc have raised additional capital through the sale of additional equity
interest. This has reduced the Company's equity interest to eight percent
(8%) for each company. The investments are stated at approximate fair value
at March 31, 2006 and at cost which approximates fair value at March 31,
2005. During the year ended March 31, 2006 the Company determined that the
equity interest was impaired by 75% and reduced the carrying value by $75,000
in aggregate for the equity interest.

14. Commitments and Contingencies

The Company is involved in litigation in the ordinary course of business.
Currently we are being sued by a party to two agreements with the Company
alleging breach of contract, fraud, and breach of fiduciary duty. Based on
information currently available, it is impossible to determine the outcome or
any potential adverse effect the outcome will have on the Company. If there
were a potential adverse effect on the Company an estimate of the loss to the
Company cannot be made at this time.

15. Related Party Transactions

On September 24, 2004, the Company entered into a funding arrangement whereby
Ryan Corley loaned the Company an additional $46,000. This loan is payable on
demand bearing interest at the rate of 6% per annum and is convertible into
230,000 shares of restricted Rule 144 Common Stock on demand.





















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