CONVERTIBLE NOTES PAYABLE

12 Months Ended

Mar. 31, 2018

NOTE 6 – CONVERTIBLE NOTES PAYABLE

Note payable-stockholder consists of the following:	March 31,
		2018		2017
5.75% note payable to stockholder, due May 17, 2018.	$	100,000	$	-
Convertible notes payable-related party consists of the following:	March 31,
		2018		2017
2% convertible notes payable to Ryan Corley, President of the Company, due on demand, convertible into a maximum of 37,638,984 common shares	$	749,455	$	719,455
2% convertible note payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 978,000 common shares		48,900		48,900
3% convertible notes payable to an entity controlled by Ryan Corley, President of the Company, due on demand, convertible into a maximum of 1,619,500 common shares		111,350		111,350
2% convertible notes payable to Douglas Goodsell, a related party, due on demand, convertible into a maximum of 519,828 common shares		10,396		10,396
Total notes payable-related party	$	920,101	$	890,101

Convertible notes payable consists of the following:	March 31,
	2018		2017
7% convertible notes payable to stockholder, which is past due, convertible into a maximum of 250,000 common shares,	$	50,000	$	100,000
7% convertible notes payable to stockholder, due August 12, 2018 convertible into a maximum of 250,000 common shares,		50,000		—
4% convertible notes payable to a stockholder, due on demand, convertible into a maximum of 350,000 common shares		175,000		175,000
2% convertible notes payable to stockholders, due on demand, convertible into a maximum of 1,100,000 common shares		25,000		25,000
Total notes payable	$	300,000	$	350,000

Long Term Convertible notes payable consists of the following:	March 31,
	2018		2017
7% convertible notes payable to stockholders, due August 12, 2018 convertible into a maximum of 250,000 common shares,	$	—	$	50,000
7% convertible note payable to stockholder, due on August 15, 2019, convertible into a maximum of 250,000 common shares,		50,000		—
7% convertible note payable to stockholder, due on September 10, 2019, convertible into a maximum of 250,000 common shares,		50,000		—
Total notes payable	$	100,000	$	50,000

On April 1, 2017, the Company converted $6,000 of the advances from our CEO, Ryan Corley into a convertible note payable. The note bears interest of 2% and is convertible with the accrued interest into common shares of the Company at a rate of $0.05 per share. The Company determined that the note did not contain a beneficial conversion feature nor did the conversion option qualify for derivative accounting.

On May 30, 2017, the Company’s subsidiary, EnXnet Energy Company, LLC, entered into a loan agreement with an individual to borrow $100,000 for an initial term of 6 months with the option to extend the note for an additional 6 months. The note was due November 30, 2017 with interest of 5.5% in the amount of $2,750 which was paid in December 2017. The Company also issued 100,000 shares of common stock with a fair value of $4,000 which was recognized as interest expense during the year. The loan was extended on December 1, 2017 for six months with interest of 5.75% in the amount of $2,875 which was paid in January 2018. The Company also issued 100,000 shares of common stock with a fair value of $2,000 which was recognized as interest expense during the year. The extension agreement is not considered an extinguishment of debt. The loan was used to secure a one hundred thousand ($100,000) Cash Oil and Gas Blanket Activity Bond with the State of Colorado.

On June 16, 2017, the Company borrowed $16,000 from our CEO, Ryan Corley. The note bears interest of 2% and is convertible with the accrued interest into common shares of the Company at a rate of $0.016 per share. The Company determined that the note did not contain a beneficial conversion feature nor did the conversion option qualify for derivative accounting.

On August 15, 2017, the Company borrowed $50,000 from a stockholder with the primary use of the proceeds to acquire oil and gas leases in Colorado. The note bears interest of 7% and is convertible with the accrued interest into common shares of the Company at a rate of $0.20 per share. The note matures on August 15, 2019. The Company also issued 200,000 shares of Common Stock with a fair value of $3,600 which was recognized as interest expense during current year.

On September 7, 2017, the Company entered into an extension agreement with a stockholder loan in the amount of $50,000 and bearing interest of 7%. The original date of the note was September 10, 2015 with an original maturity date of September 10, 2017. The extension agreement is for 2 years with the maturity date being September 10, 2019. The Company also issued 50,000 shares of common stock with a fair value of $700 which was recognized as interest expense during the current year. The extension agreement is not considered an extinguishment of debt.

On November 21, 2017, the Company borrowed $8,000 from our CEO, Ryan Corley. The note bears interest of 2% and is convertible with the accrued interest into common shares of the Company at a rate of $0.0125 per share. The Company determined that the note did not contain a beneficial conversion feature nor did the conversion option qualify for derivative accounting.

ENXNET INC 10-K