AOXY 10-Q

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2023-05-10 For: 2023-03-31

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Added on April 06, 2026

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 March 31, 2023 (unaudited) and June 30, 2022	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended March 31, 2023 and March 31, 2022 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended March 31, 2023 and March 31, 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flow for the nine months ended March 31, 2023 and March 31, 2022 (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	22
Item 4:	Controls and Procedures	22

PART II

Item 1:	Legal Proceedings	23
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3:	Defaults Upon Senior Securities	23
Item 4:	Mine Safety Disclosures	23
Item 5:	Other Information	23
Item 6.	Exhibits and Reports on Form 8-K	24
Signature		25

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

	March 31, 2023			June 30, 2022
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	99,783		$	94,216
Property tax receivable		1,165			1,117
Total Current Assets		100,948			95,333

Property and equipment, net		591,018			566,856
TOTAL ASSETS	$	691,966		$	662,189

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		5,825			-
Contract liabilities		3,055			2,929
Taxes payable		57,503			51,111
Current portion of notes payable		138,476			16,889
Advances from a related party		140,310			137,583
Total Current Liabilities		345,169			208,512

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

Total Liabilities		345,169			342,520

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at March 31, 2023 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 March 31, 2023 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)		22,162			(5,820	)
Accumulated deficit		(20,765,460	)		(20,764,606	)
TOTAL STOCKHOLDERS’ EQUITY		346,797			319,669
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	691,966		$	662,189

	For the three months ended March 31,						For the nine months ended March 31,
	2023			2022			2023			2022
Revenues
Rent Revenues	$	10,447		$	9,991		$	28,805		$	30,039
Total Revenues		10,447			9,991			28,805			30,039

Operating Expenses
General and Administrative		4,559			3,796			7,631			8,001
Professional fees		3,500			3,000			15,500			14,000
Total Operating Expenses		8,059			6,796			23,131			22,001

Income from operations		2,388			3,195			5,674			8,038
Other income (Expenses)
Interest (Expense)		(183	)		(395	)		(668	)		(1,622	)
Gain on Tax Settlement		-			(653	)		-			54,926
FX Income (Expense)		-			-			34			-
Total Other Income (Expenses)		(183	)		(1,048	)		(634	)		53,304

Income Before Income Taxes		2,205			2,147			5,040			61,342
Income Taxes Expense		2,058			2,050			5,894			6,061

NET INCOME (LOSS)	$	147		$	97		$	(854	)	$	55,281

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

OTHER COMPREHENSIVE INCOME (LOSS)
NET INCOME (LOSS)	$	147		$	97		$	(854	)	$	55,281
Foreign Currency Translation Adjustments	$	14,039		$	(12,891	)	$	27,982		$	(45,314	)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	14,186		$	(12,794	)	$	27,128		$	9,967

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

For the quarterly period ended: March 31, 2023

☐	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		—		—		—		—		—		55,281			—			55,281
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(45,314	)		(45,314	)

Balance at March 31, 2022		5,000		50		3,292,945		32,929		21,057,116		(20,766,317	)		32,128			355,906

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		—		—		—		—		—		(854	)		—			(854	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			27,982			27,982

Balance at March 31, 2023		5,000		50		3,292,945		32,929		21,057,116		(20,765,460	)		22,162			346,797

	For the Nine Months Ended March 31,
	2023			2022
Cash flows from operating activities:

Net Income (loss)	$	(854	)		55,281
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		13,550			20,029
Changes in operating assets and liabilities
Accounts payable and accrued liabilities		5,825			(682	)
Prepaid expenses		-			(525	)
Taxes payable		4,296			5,744
Net cash provided by operating activities		22,817			79,847

Cash flow from financing activities:
Repayment of related party debt		(8,866	)		(14,418	)
Repayment of long-term debt		(13,439	)		(14,132	)
Net cash used in financing activities		(22,305	)		(28,550	)
Change due to Foreign Currency Translation		5,055			(5,497	)
NET CHANGE IN CASH		5,567			45,800

Cash at beginning of period	$	94,216		$	49,979
Cash at end of period	$	99,783		$	95,779
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	668		$	1,622
Cash paid for Income taxes	$	-		$	-

	Three Months Ended March 31,
Revenue Type	2023		2022
Real Estate Rental	$	10,447	$	9,991
Commission Revenues		—		—
Total Sales by Revenue Type	$	10,447	$	9,991

	Nine Months Ended March 31,
Revenue Type	2023		2022
Real Estate Rental	$	28,805	$	30,039
Commission Revenues		—		—
Total Sales by Revenue Type	$	28,805	$	30,039

	Geographic Regions
	for the Three Months Ended March 31,
Revenue Type	2023		2022
International	$	10,447	$	9,991
Domestic		—		—
Total Sales by Geographic Location	$	10,447	$	9,991

	Geographic Regions
	for the Nine Months Ended March 31,
Revenue Type	2023		2022
International	$	28,805	$	30,039
Domestic		—		—
Total Sales by Geographic Location	$	28,805	$	30,039

Fiscal Year Ending	Amount
2023		131,554
2024		6,922
Total	$	138,476
Less: Long-term portion of notes payable		-
Notes payable, current portion	$	138,476

	·	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.

	Nine Months Ending March 31,
	2023			2022

Revenue by segment
Lease revenues	$	28,805		$	30,039
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	28,805		$	30,039

Segment profitability
Lease income (loss)	$	28,899		$	30,039
Commission income (loss)from security product sales		(2,378	)		(2,315	)
Corporate income (loss)		(19,375	)		(18,821	)
Total segment profitability (loss)	$	(854	)	$	8,903

	Three Months Ending March 31,
	2023			2022

Revenue by segment
Lease revenues	$	10,447		$	9,991
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	10,447		$	9,991

Segment profitability
Lease income	$	7,300		$	(39,761	)
Commission income (loss) from security product sales		(2,378	)		(2,245	)
Corporate income (loss)		(4,775	)		(4,275	)
Total segment profitability	$	147		$	(46,281	)

Three Months Ending March 31:	2023		2022
Net Sales
United States	$	-	$	-
Denmark		10,447		9,991
Total	$	10,447	$	9,991

As of March 31, 2023 and June 30, 2022	Mar 31, 2023		June 30, 2022
Long-Lived Assets
United States	$	-	$	-
Denmark		591,018		566,856
Total	$	591,018	$	566,856

Nine Months Ending March 31:	2023		2022
Net Sales
United States	$	-	$	-
Denmark		28,805		30,039
Total	$	28,805	$	30,039

Three Months Ending March 31, 2023
	ANV			Sharx			Corporate			Total

Net sales	$	10,447		$	—		$	—		$	10,447
Operating income (loss)	$	9,541		$	(2,378	)	$	(4,775	)	$	2,388
Interest expense	$	(183	)	$	—		$	—		$	(183	)
Total assets	$	691,782		$	34		$	150		$	691,966

Three Months Ending March 31, 2022
	ANV			Sharx			Corporate			Total

Net sales	$	9,991		$	—		$	—		$	9,991
Operating (loss) income	$	9,715		$	(2,245	)	$	(4,275	)	$	3,195
Interest expense	$	(395	)	$	—		$	—		$	(395	)
Total assets	$	696,347		$	2,451		$	675		$	699,473

Nine Months Ending March 31, 2023
	ANV			Sharx			Corporate			Total

Net sales	$	28,805		$	—		$	—		$	28,805
Operating income (loss)	$	27,461		$	(2,412	)	$	(19,375	)	$	5,674
Interest expense	$	(668	)	$	—		$	—		$	(668	)
Total assets	$	691,782		$	34		$	150		$	691,966

Nine Months Ending March 31, 2022
	ANV			Sharx			Corporate			Total

Net sales	$	30,039		$	—		$	—		$	30,017
Operating income (loss)	$	29,174		$	(2,315	)	$	(18,821	)	$	10,351
Interest expense	$	(1,622	)	$	—		$	—		$	(2,087	)
Total assets	$	696,347		$	2,451		$	675		$	699,473

3 Month Period ending March 31,	2023		2022
Subsidiary ANV Lease Revenues	$	10,447	$	9,991
Subsidiary Sharx commissions from the sales of cargo security products		—		—
Total	$	10,447	$	9,991

9 Month Period ending March 31,	2023		2022
Subsidiary ANV Lease Revenues	$	28,805	$	30,039
Subsidiary Sharx commissions from the sales of cargo security products		—		—
Total	$	28,805	$	30,039

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).