AOXY 10-Q

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2022-10-26 For: 2022-09-30

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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, 2022 (unaudited) and June 30, 2022	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended September 30, 2022 and September 30, 2021 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended September 30, 2022 and September 30, 2021 (unaudited)	5
	Condensed Consolidated Statements of Cash Flow for the three months ended September 30, 2022 and September 30, 2021 (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 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

	September 30, 2022			June 30, 2022
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	87,203		$	94,216
Property tax receivable		1,052			1,117
Total Current Assets		88,255			95,333

Property and equipment		533,598			566,856
TOTAL ASSETS	$	621,853		$	662,189

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		1,325			-
Contract liabilities		2,759			2,929
Taxes payable		48,996			51,111
Current portion of notes payable		142,926			16,889
Advances from a related party		143,957			137,583
Total Current Liabilities		339,963			208,512

Long Term Liabilities
Notes payable, net of current portion		2,547			134,008
Total Long-term Liabilities		2,547			134,008

Total Liabilities		342,510			342,520

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at September 30, 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 September 30, 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 (Loss)		(42,896	)		(5,820	)
Accumulated deficit		(20,767,856	)		(20,764,606	)
TOTAL STOCKHOLDERS’ EQUITY		279,343			319,669
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	621,853		$	662,189

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

For the quarterly period ended: September 30, 2022

☐	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,
	2022			2021
Revenues
Rent Revenues	$	8,976		$	10,181
Total Revenues		8,976			10,181

Operating Expenses
General and Administrative		1,621			1,166
Professional fees		8,500			8,000
Total Operating Expenses		10,121			9,166

Income (Loss) from operations		(1,145	)		1,015
Other income (Expenses)
Interest Expense		(265	)		(529	)
Foreign currency transaction income		19			-
Total Other Income (Expenses)		(246	)		(529	)

Income Before Income Taxes (Loss)		(1,391	)		486
Income Taxes Expense		1,859			2,057

Net loss	$	(3,250	)	$	(1,571	)

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 INCOME (LOSS)
NET LOSS	$	(3,250	)	$	(1,571	)
Foreign Currency Translation Adjustments	$	(37,076	)	$	(15,946	)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(40,326	)	$	(17,517	)

	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, 2021		5,000		50		3,292,945		32,929		21,057,116		(20,821,598	)		77,442			345,939
Net loss		—		—		—		—		—		(1,571	)		—			(1,571	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(15,946	)		(15,946	)

Balance at September 30, 2021		5,000		50		3,292,945		32,929		21,057,116		(20,823,169	)		61,496			328,422

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

	Three Months Ended September 30,
Revenue Type	2022		2021
Real Estate Rental	$	8,976	$	10,181
Commission Revenues		—		—
Total Sales by Revenue Type	$	8,976	$	10,181

	Geographic Regions
	for the Three Months Ended September 30,
Revenue Type	2022		2021
International	$	8,976	$	10,181
Domestic		—		—
Total Sales by Geographic Location	$	8,976	$	10,181

Fiscal Year Ending	Amount
2023		139,222
2024		6,250
Total	$	145,472
Less: Long-term portion of notes payable		(2,546	)
Notes payable, current portion	$	142,926

	●	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,
	2022			2021

Revenue by segment
Lease revenues	$	8,976		$	10,181
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	8,976		$	10,181

Segment profitability
Lease income (loss)	$	6,590		$	7,295
Commission income (loss) from security product sales		(15	)		(41	)
Corporate income (loss)		(9,825	)		(8,825	)
Total segment profitability	$	(3,250	)	$	(1,571	)

Three Months Ending September 30:	2022		2021
Net Sales
United States	$	-	$	-
Denmark		8,976		10,181
Total	$	8,976	$	10,181

	For the Three Months Ended September 30,
	2022			2021
Cash flows from operating activities:

Net (Loss)	$	(3,250	)		(1,571	)
Adjustments to reconcile net loss to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		8,500			7,182
Changes in operating assets and liabilities
Accounts payable		1,325			1,643
Taxes payable		813			(446	)
Net cash provided by operating activities		7,388			7,700

Cash flow from financing activities:
Repayment of related party debt		(4,123	)		(6,580	)
Repayment of long-term debt		(4,939	)		(4,732	)
Net cash used in financing activities		(9,062	)		(11,312	)
Change due to Foreign Currency Translation		(5,399	)		(1,048	)
NET CHANGE IN CASH		(7,013	)		(4,660	)

Cash at beginning of period	$	94,216		$	49,979
Cash at end of period	$	87,203		$	45,319
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	265		$	529
Cash paid for Income taxes	$	-		$	-

As of September 30, 2022 and June 30, 2022	Sept 30, 2022		June 30, 2022
Long-Lived Assets
United States	$	-	$	-
Denmark		533,598		566,856
Total	$	533,598	$	566,856

Three Months Ending September 30, 2022
	ANV			Sharx		Corporate			Total

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

Three Months Ending September 30, 2021
	ANV			Sharx			Corporate			Total

Net sales	$	10,181		$	—		$	—		$	10,181
Operating (loss) income	$	99,881		$	(41	)	$	(8,825	)	$	(1,015	)
Interest expense	$	(529	)	$	—		$	—		$	(529	)
Total assets	$	670,425		$	5,837		$	150		$	676,412

Year ending September 30,	2022		2021
Subsidiary ANV Lease Revenues	$	8,976	$	10,181
Subsidiary Sharx commissions from the sales of cargo security products		—		—
Total	$	8,976	$	10,181

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).