LegacyXChange, Inc.

In November 2019 through June 2020, the Company entered into loan agreements with an investor in the aggregate principal amount of $91,000. These loans bear an interest rate of 6% and were due and payable on the second anniversary of the date of issuance of the loans.

As of June 30, 2020, these loans had outstanding principal and accrued interest of $234,924 and $66,063, respectively and $143,924 of these loans were in default. As of March 31, 2020, these loans had outstanding principal and accrued interest of $188,924 and $61,637, respectively and $143,924 of these loans were in default.

During fiscal years 2016, pursuant to the convertible note agreements under the fiscal 2016 financing discussed in Note 5, the Company issued five-year warrants to purchase an aggregate of 4,225,000 (twenty warrants for each dollar of the principal amount) shares of the Company’s common stock at an exercise price of $0.07. The exercise price of these warrants shall be subject to adjustment for issuances of common stock at a purchase price of less than the then-effective conversion price and were accounted for as derivative liabilities. During the year ended March 31, 2016, the conversion price was ratcheted down to $0.01. As of March 31, 2020, 4,225,000 warrants were issued and outstanding. During the three months ended June 30, 2020, 2,300,000 of the outstanding warrants expired. As of June 30, 2020, 1,925,000 warrants were issued and outstanding.

Net cash used in operating activities were $40,822 and $0 for the three months ended June 30, 2020 and 2019, respectively, and increase of $40,822 or 100%.

Net cash provided by financing activities were $46,000 and $0 for the three months ended June 30, 2020 and 2019, respectively, an increase of $46,000, or 100%. The Company received $46,000 of proceeds from loans payable in 2020.