AOXY 10-Q

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2023-02-13 For: 2022-12-31

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Added on April 06, 2026

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Delaware	0-9951	91-1143622
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

Large Accelerated Filer	☐	Accelerated Filer	☐
Non Accelerated Filer	☒	Smaller Reporting Company	☒
Emerging Growth Company	☐

	INDEX	Page
PART I

Item I:	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of December 31, 2022 (unaudited) and June 30, 2022	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended December 31, 2022 and December 31, 2021 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended December 31, 2022 and December 31, 2021 (unaudited)	5
	Condensed Consolidated Statements of Cash Flow for the six months ended December 31, 2022 and December 31, 2021 (unaudited)	7
	Notes to the Condensed Consolidated Financial Statements	8

Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4:	Controls and Procedures	21

PART II

Item 1:	Legal Proceedings	22
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3:	Defaults Upon Senior Securities	22
Item 4:	Mine Safety Disclosures	22
Item 5:	Other Information	22
Item 6.	Exhibits and Reports on Form 8-K	23
Signature		24

EXHIBIT 31.1, 31.2 Certifications of Officers		EX 31
EXHIBIT 32.1, 32.2 Certifications of Officers		EX 32
EXHIBIT 101.INS XBRL Instance		EX 101.INS
EXHIBIT 101.SCH XBRL Taxonomy Extension Schema Document		EX 101.SCH
EXHIBIT 101.CAL XBRL Taxonomy Extension Calculation Document		EX 101.CAL
EXHIBIT 101.DEF XBRL Taxonomy Extension Definition Document		EX 101.DEF
EXHIBIT 101.LAB XBRL Taxonomy Extension Labels Document		EX 101.LAB
EXHIBIT 101.PRE XBRL Taxonomy Extension Presentation Document		EX 101.PRE

	December 31, 2022			June 30, 2022
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	101,854		$	94,216
Property tax receivable		1,142			1,117
Total Current Assets		102,996			95,333

Property and equipment		578,766			566,856
TOTAL ASSETS	$	681,762		$	662,189

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		2,100			-
Contract liabilities		2,992			2,929
Taxes payable		57,523			51,111
Current portion of notes payable		142,647			16,889
Advances from a related party		143,889			137,583
Total Current Liabilities		349,151			208,512

Long Term Liabilities
Notes payable, net of current portion		-			134,008
Total Long-term Liabilities		-			134,008

Total Liabilities		349,151			342,520

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at December 31, 2022 and June 30, 2022		50			50
Convertible preferred stock, Series 3, par value $0.01; authorized 1,670,000 shares; zero shares issued and outstanding		—			—
Convertible preferred stock, Series 5; no par value, 1 share authorized and zero shares issued and outstanding.		—			—
Common stock, par value $0.01; At December 31, 2022 and June 30, 2022, authorized 60,000,000 shares; issued and outstanding 3,292,945 shares and 3,292,945 shares, respectively		32,929			32,929
Additional paid-in capital		21,057,116			21,057,116
Accumulated other comprehensive income (loss)		8,123			(5,820	)
Accumulated deficit		(20,765,607	)		(20,764,606	)
TOTAL STOCKHOLDERS’ EQUITY		332,611			319,669
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	681,762		$	662,189

	For the three months ended December 31,						For the six months ended December 31,
	2022			2021			2022			2021
Revenues
Rent Revenues	$	9,382		$	9,867		$	18,358		$	20,048
Total Revenues		9,382			9,867			18,358			20,048

Operating Expenses
General and Administrative		1,451			3,039			3,072			4,205
Professional fees		3,500			3,000			12,000			11,000
Total Operating Expenses		4,951			6,039			15,072			15,205

Income from operations		4,431			3,828			3,286			4,843
Other income (Expenses)
Interest (Expense)		(220	)		(698	)		(485	)		(1,227	)
Gain on Tax Settlement		-			55,579			-			55,579
FX Income		15			-			34			-
Total Other Income (Expenses)		(205	)		54,881			(451	)		54,352

Income Before Income Taxes		4,226			58,709			2,835			59,195
Income Taxes Expense		1,977			1,954			3,836			4,011

NET INCOME (LOSS)	$	2,249		$	56,755		$	(1,001	)	$	55,184

Weighted Average number of common shares outstanding
Basic		3,292,945			3,292,945			3,292,945			3,292,945
Dilutive		3,302,945			3,302,945			3,292,945			3,302,945

Basic earnings per Share	$	0.00		$	0.02		$	(0.00	)	$	0.02
Dilutive earnings per Share	$	0.00		$	0.02		$	(0.00	)	$	0.02

OTHER COMPREHENSIVE INCOME (LOSS)
NET INCOME (LOSS)	$	2,249		$	56,755		$	(1,001	)	$	55,184
Foreign Currency Translation Adjustments	$	51,019		$	(16,477	)	$	13,943		$	(32,423	)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	53,268		$	40,278		$	12,942		$	22,761

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: December 31, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from: _____________ to _____________

	Preferred Stock Convertible Series 2				Common Stock				Additional Paid In		Accumulated			Accumulated Other Comprehensive			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Income			Equity
Balance at June 30, 2021		5,000		50		3,292,945		32,929		21,057,116		(20,821,598	)		77,442			345,939
Net income		—		—		—		—		—		55,184			—			55,184
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(32,423	)		(32,423	)

Balance at December 31, 2021		5,000		50		3,292,945		32,929		21,057,116		(20,766,414	)		45,019			368,700

Balance at June 30, 2022		5,000		50		3,292,945		32,929		21,057,116		(20,764,606	)		(5,820	)		319,669
Net loss		—		—		—		—		—		(1,001	)		—			(1,001	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			13,943			13,943

Balance at December 31, 2022		5,000		50		3,292,945		32,929		21,057,116		(20,765,607	)		8,123			332,611

	For the Six Months Ended December 31,
	2022			2021
Cash flows from operating activities:

Net Income (loss)	$	(1,001	)		55,184
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		12,500			13,129
Changes in operating assets and liabilities
Accounts payable and accrued liabilities		2,100			1,418
Taxes payable		5,115			3,820
Net cash provided by operating activities		18,714			73,551

Cash flow from financing activities:
Repayment of related party debt		(4,969	)		(11,536	)
Repayment of long-term debt		(8,316	)		(9,341	)
Net cash used in financing activities		(13,285	)		(20,877	)
Change due to Foreign Currency Translation		2,210			(3,476	)
NET CHANGE IN CASH		7,638			49,198

Cash at beginning of period	$	94,216		$	49,979
Cash at end of period	$	101,854		$	99,177
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	485		$	1,227
Cash paid for Income taxes	$	-		$	-

	Three Months Ended December 31,
Revenue Type	2022		2021
Real Estate Rental	$	9,382	$	9,867
Commission Revenues		—		—
Total Sales by Revenue Type	$	9,382	$	9,867

	Six Months Ended December 31,
Revenue Type	2022		2021
Real Estate Rental	$	18,358	$	20,048
Commission Revenues		—		—
Total Sales by Revenue Type	$	18,358	$	20,048

	Geographic Regions
	for the Three Months Ended December 31,
Revenue Type	2022		2021
International	$	9,382	$	9,867
Domestic		—		—
Total Sales by Geographic Location	$	9,382	$	9,867

	Geographic Regions
	for the Six Months Ended December 31,
Revenue Type	2022		2021
International	$	18,358	$	20,048
Domestic		—		—
Total Sales by Geographic Location	$	18,358	$	20,048

Fiscal Year Ending	Amount
2023		142,647
2024		-
Total	$	142,647
Less: Long-term portion of notes payable		-
Notes payable, current portion	$	142,647

	●	The ANV lease segment which leases land in Denmark by long term leases.
	●	The Sharx’s segment which generate commissions for the sale cargo security products.
	●	The Corporate segment, Advanced Oxygen Technologies, Inc. which does not generate revenues, but has administrative expenses.

	Six Months Ending December 31,
	2022			2021

Revenue by segment
Lease revenues	$	18,358		$	20,048
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	18,358		$	20,048

Segment profitability
Lease income (loss)	$	13,599		$	69,800
Commission income (loss)from security product sales		-			(70	)
Corporate income (loss)		(14,600	)		(14,546	)
Total segment profitability	$	(1,001	)	$	55,148

	Three Months Ending December 31,
	2022			2021

Revenue by segment
Lease revenues	$	9,382		$	9,867
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	9,382		$	9,867

Segment profitability
Lease income	$	7,009		$	62,505
Commission income (loss) from security product sales		15			(29	)
Corporate income (loss)		(4,775	)		(5,721	)
Total segment profitability	$	2,249		$	56,755

Three Months Ending December 31:	2022		2021
Net Sales
United States	$	-	$	-
Denmark		9,382		9,867
Total	$	9,382	$	9,867

As of December 31, 2022 and June 30, 2022	Dec 31, 2022		June 30, 2022
Long-Lived Assets
United States	$	-	$	-
Denmark		578,766		566,856
Total	$	578,766	$	566,856

Six Months Ending December 31:	2022		2021
Net Sales
United States	$	-	$	-
Denmark		18,358		20,048
Total	$	18,358	$	20,048

Three Months Ending December 31, 2022
	ANV			Sharx		Corporate			Total

Net sales	$	9,382		$	—	$	—		$	9,382
Operating income (loss)	$	9,206		$	—	$	(4,775	)	$	4,431
Interest expense	$	(220	)	$	—	$	—		$	(220	)
Total assets	$	679,199		$	2,413	$	150		$	681,762

Three Months Ending December 31, 2021
	ANV			Sharx			Corporate			Total

Net sales	$	9,867		$	—		$	—		$	9,867
Operating (loss) income	$	9,578		$	(29	)	$	(5,721	)	$	3,828
Interest expense	$	(698	)	$	—		$	—		$	(698	)
Total assets	$	710,150		$	4,696		$	150		$	714,996

Six Months Ending December 31, 2022
	ANV			Sharx			Corporate			Total

Net sales	$	18,358		$	—		$	—		$	18,358
Operating income (loss)	$	17,920		$	(34	)	$	(14,600	)	$	3,286
Interest expense	$	(485	)	$	—		$	—		$	(485	)
Total assets	$	679,199		$	2,413		$	150		$	681,762

Six Months Ending December 31, 2021
	ANV			Sharx			Corporate			Total

Net sales	$	20,048		$	—		$	—		$	20,048
Operating income (loss)	$	19,459		$	(70	)	$	(14,546	)	$	4,843
Interest expense	$	(1,227	)	$	—		$	—		$	(1,227	)
Total assets	$	710,150		$	4,696		$	150		$	714,996

Year ending December 31,	2022		2021
Subsidiary ANV Lease Revenues	$	9,382	$	9,867
Subsidiary Sharx commissions from the sales of cargo security products		—		—
Total	$	9,382	$	9,867

Exhibit Number		Description of the Document
3.1		Certificate of Incorporation as Amended and filed with the Secretary of State of Delaware effective on December 5, 2014(1)
3.2		Bylaws.(2)
31.1*		Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Chief Executive Officer in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Chief Financial Officer in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).