AOXY 10-Q

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2023-10-27 For: 2023-09-30

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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.)

Title of Class		Trading Symbol		Name of each exchange on which registered
Common Stock, $0.01 Par Value		AOXY		OTC: PINK

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 September 30, 2023 (unaudited) and June 30, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended September 30, 2023 and September 30, 2022 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended September 30, 2023 and September 30, 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flow for the three months ended September 30, 2023 and September 30, 2022 (unaudited)	6
	Notes to the Condensed Consolidated Financial Statements	7

Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3:	Quantitative and Qualitative Disclosures about Market Risk	20
Item 4:	Controls and Procedures	20

PART II

Item 1:	Legal Proceedings	21
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3:	Defaults Upon Senior Securities	21
Item 4:	Mine Safety Disclosures	21
Item 5:	Other Information	21
Item 6.	Exhibits and Reports on Form 8-K	22
Signature		23

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

	September 30, 2023			June 30, 2023
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	101,364		$	104,836
Property tax receivable		1,127			1,166
Total Current Assets		102,491			106,002

Property and equipment		571,822			591,705
TOTAL ASSETS	$	674,313		$	697,707

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		5,825			-
Contract liabilities		2,956			3,059
Taxes payable		61,521			62,523
Current portion of notes payable		129,327			6,930
Advances from a related party		150,342			147,387
Total Current Liabilities		349,971			219,899

Long Term Liabilities
Notes payable, net of current portion		-			127,029
Total Long-term Liabilities		-			127,029

Total Liabilities		349,971			346,928

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at September 30, 2023 and June 30, 2023		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 September 30, 2023 and June 30, 2023, 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 Income (Loss)		(312	)		23,019
Accumulated deficit		(20,765,441	)		(20,762,335	)
TOTAL STOCKHOLDERS’ EQUITY		324,342			350,779
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	674,313		$	697,707

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

For the quarterly period ended: September 30, 2023

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

	For the transition period from: _____________ to _____________

	For the three months ended September 30,
	2023			2022
Revenues
Rent Revenues	$	10,633		$	8,976
Total Revenues		10,633			8,976

Operating Expenses
General and Administrative		1,904			1,621
Professional fees		9,500			8,500
Total Operating Expenses		11,404			10,121

Income (Loss) from operations		(721	)		(1,145	)
Other income (Expenses)
Interest Expense		(78	)		(265	)
Foreign currency transaction income		-			19
Total Other Income (Expenses)		(78	)		(246	)

Income Before Income Taxes (Loss)		(849	)		(1,391	)
Income Taxes Expense		2,257			1,859

Net (Loss)	$	(3,106	)	$	(3,250	)

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

Basic loss per Share	$	(0.00	)	$	(0.00	)
Dilutive loss per Share	$	(0.00	)	$	(0.00	)

OTHER COMPREHENSIVE NET (LOSS)
NET (LOSS)	$	(3,106	)	$	(3,250	)
Foreign Currency Translation Adjustments	$	(23,331	)	$	(37,076	)
TOTAL COMPREHENSIVE NET (LOSS)	$	(26,437	)	$	(40,326	)

	Preferred Stock Convertible Series 2				Common Stock				Additional Paid In		Accumulated			Accumulated Other Comprehensive Income			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			(loss)			Equity
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		—		—		—		—		—		(3,250	)		—			(3,250	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(37,076	)		(37,076	)

Balance at September 30, 2022		5,000		50		3,292,945		32,929		21,057,116		(20,767,856	)		(42,896	)		279,343

Balance at June 30, 2023		5,000		50		3,292,945		32,929		21,057,116		(20,762,335	)		23,019			350,779
Net loss		—		—		—		—		—		(3,106	)		—			(3,106	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(23,331	)		(23,331	)

Balance at September 30, 2023		5,000		50		3,292,945		32,929		21,057,116		(20,765,442	)		(312	)		324,342

	Three Months Ended September 30,
Revenue Type	2023		2022
Real Estate Rental	$	10,633	$	8,976
Commission Revenues		—		—
Total Sales by Revenue Type	$	10,633	$	8,976

	Geographic Regions
	for the Three Months Ended September 30,
Revenue Type	2023		2022
International	$	10,633	$	8,976
Domestic		—		—
Total Sales by Geographic Location	$	10,633	$	8,976

Fiscal Year Ending	Amount
2024		129,327
2025		-
Total	$	129,327
Less: Long-term portion of notes payable		-
Notes payable, current portion	$	129,327

	●	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.

	Three Months Ending September 30,
	2023			2022

Revenue by segment
Lease revenues	$	10,633		$	8,976
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	10,633		$	8,976

Segment profitability
Lease income (loss)	$	8,002		$	6,590
Commission income (loss) from security product sales		(34	)		(15	)
Corporate income (loss)		(11,074	)		(9,825	)
Total segment profitability	$	(3,106	)	$	(3,250	)

Three Months Ending September 30:	2023		2022
Net Sales
United States	$	-	$	-
Denmark		10,633		8,976
Total	$	10,633	$	8,976

	For the Three Months Ended September 30,
	2023			2022
Cash flows from operating activities:

Net Loss	$	(3,106	)		(3,250	)
Adjustments to reconcile net loss to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		5,250			8,500
Changes in operating assets and liabilities
Accounts payable		5,825			1,325
Taxes payable		1,074			813
Net cash provided by operating activities		9,043			7,388

Cash flow from financing activities:
Repayment of related party debt		(4,535	)		(4,123	)
Repayment of long-term debt		(4,458	)		(4,939	)
Net cash used in financing activities		(8,993	)		(9,062	)
Change due to Foreign Currency Translation		(3,521	)		(5,399	)
NET CHANGE IN CASH		(3,472	)		(7,013	)

Cash at beginning of period	$	104,836		$	94,216
Cash at end of period	$	101,364		$	87,203
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	771		$	265
Cash paid for Income taxes	$	-		$	-

As of September 30, 2023 and June 30, 2023	Sept 30, 2023		June 30, 2023
Long-Lived Assets
United States	$	-	$	-
Denmark		571,822		591,705
Total	$	571,822	$	591,705

Three Months Ending September 30, 2023
	ANV			Sharx			Corporate			Total

Net sales	$	10,633		$	—		$	—		$	10,633
Operating income	$	10,338		$	(35	)	$	(11,074	)	$	(771	)
Interest expense	$	(79	)	$	—		$	—		$	(79	)
Total assets	$	674,199		$	(36	)	$	150		$	674,313

Three Months Ending September 30, 2022
	ANV			Sharx		Corporate			Total

Net sales	$	8,976		$	—	$	—		$	8,976
Operating (loss) income	$	8,714		$	34	$	(9,825	)	$	(1,145	)
Interest expense	$	(265	)	$	—	$	—		$	(265	)
Total assets	$	619,307		$	2,396	$	150		$	621,853

Three month period ending September 30,	2023		2022
Subsidiary ANV Lease Revenues	$	10,633	$	8,976
Subsidiary Sharx commissions from the sales of cargo security products		—		—
Total	$	10,633	$	8,976

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).