Advanced Oxygen Technologies Inc 10-Q for FY2022 Q1

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2021-11-03 For: 2021-09-30

Added on April 06, 2026

About this 10-Q

Advanced Oxygen Technologies Inc filed this 10-Q on November 3, 2021, covering the quarter ended September 30, 2021 (FY2022 Q1).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $10.18K; down 1.4% from $10.33K a year earlier
Net loss: $1571; compared with a net loss of $3478 a year earlier

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

	For the quarterly period ended: September 30, 2021

Or

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

	For the transition period from: _____________ to _____________

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, 2021 (unaudited) and June 30, 2021		3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended September 30, 2021 and September 30, 2020 (unaudited)		4
	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended September 30, 2021 and September 30, 2020 (unaudited)		5
	Condensed Consolidated Statements of Cash Flow for the three months ended September 30, 2021 and September 30, 2020 (unaudited)		7
	Notes to the Condensed Consolidated Financial Statements		8-20

Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 3:	Quantitative and Qualitative Disclosures about Market Risk		23
Item 4:	Controls and Procedures		23

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		24
Item 6.	Exhibits and Reports on Form 8-K		24
Signature			24
EXHIBIT 31.1, 31.2 Certifications of Officers		EX 31
EXHIBIT 32.1, 32.2 Certifications of Officers		EX 32

101		Interactive data files pursuant to Rule 405 of Regulation S-T.

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).

	September 30, 2021			June 30, 2021
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	45,319		$	49,979
Property tax receivable		1,242			1,274
Total Current Assets		46,561			51,253

Property and equipment		629,851			646,078
TOTAL ASSETS	$	676,412		$	697,331

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	2,325		$	682
Contract liabilities		3,255			3,340
Taxes payable		47,409			48,108
Current portion of notes payable		145,796			19,250
Advances from a related party		127,341			125,780
Total Current Liabilities		326,126			197,160

Long Term Liabilities
Notes payable, net of current portion		21,864			154,232
Total Long-term Liabilities		21,864			154,232

Total Liabilities		347,990			351,392

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at September 30, 2021 and June 30, 2021		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, zero shares issued and outstanding, respectively.		—			—
Common stock, par value $0.01; At September 30, 2021 and June 30, 2021, authorized 60,000,000 shares; issued and outstanding 3,292,945shares and 3,292,945 shares, respectively		32,929			32,929
Additional paid-in capital		21,057,116			21,057,116
Accumulated other comprehensive income		61,496			77,442
Accumulated deficit		(20,823,169	)		(20,821,598	)
TOTAL STOCKHOLDERS’ EQUITY		328,422			345,939
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	676,412		$	697,331

	For the three months ended September 30,
	2021			2020
Revenues
Rent Revenues		10,181			10,329
Total Revenues	$	10,181		$	10,329

Operating Expenses
General and Administrative		1,166			4,055
Professional fees		8,000			7,025
Total Operating Expenses		9,166			11,080

Income (Loss) from operations		1,015			(751	)
Other income (expenses)
Interest Expense		(529	)		(737	)
(Loss) before Income Taxes		486			(1,488	)

Income Taxes Expense		2,057			1,990

NET (LOSS)	$	(1,571	)	$	(3,478	)

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

Basic earnings per Share	$	(0.0000	)	$	(0.0011	)
Dilutive earnings per Share	$	(0.0000	)	$	(0.0011	)

OTHER COMPREHENSIVE INCOME (LOSS)
NET (LOSS)	$	(1,571	)	$	(3,478	)
Foreign Currency Translation Adjustments	$	(15,946	)	$	25,488
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(17,517	)	$	22,010

	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, 2020		5,000		50		3,292,945		32,929		21,057,116		(20,827,344	)		43,226			305,977
Net loss		—		—		—		—		—		(3,478	)		—			(3,478	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			25,488			25,488

Balance at September 30, 2020		5,000		50		3,292,945		32,929		21,057,116		(20,830,822	)		68,714			327,987

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

	Three Months Ended September 30,
Revenue Type	2021		2020
Real Estate Rental	$	10,181	$	10,329
Commission Revenues		—		—
Total Sales by Revenue Type	$	10,181	$	10,329

	Geographic Regions
	for the Three Months Ended September 30,
Revenue Type	2021		2020
International	$	10,181	$	10,329
Domestic		—		—
Total Sales by Geographic Location	$	10,181	$	10,329

	Carrying Value of Land at
	September 30,
US Dollars	$	629,851	$	646,078

Fiscal Year Ending	Amount
2022	$	141,139
2023		19,144
2024		7,377
Total	$	167,660
Less: Long-term portion of notes payable		(21,864	)
Notes payable, current portion	$	145,796

	●	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,
	2021			2020

Revenue by segment
Lease revenues	$	10,181		$	10,329
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	10,181		$	10,329

Segment profitability
Lease revenues	$	7,295		$	7,053
Commission revenues from security product sales		(41	)		184
Corporate expenses		(8,825	)		(10,715	)
Total segment profitability	$	(1,571	)	$	(3,478	)

	For the Three Months Ended September 30,
	2021			2020
Cash flows from operating activities:

Net loss	$	(1,571	)		(3,478	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		7,182			7,479
Changes in operating assets and liabilities
Accounts payable		1,643			3,236
Taxes payable		(446	)		4,572
Contract liabilities		-			-
Net cash provided by operating activities		7,700			11,809

Cash flow from financing activities:
Repayment of related party debt		(6,580	)		(6,849	)
Repayment of long-term debt		(4,732	)		(4,591	)
Net cash used in financing activities		(11,312	)		(11,440	)
Change due to FX Translation		(1,048	)		1,617
NET CHANGE IN CASH		(4,660	)		1,986

Cash at beginning of period	$	49,979		$	43,603
Cash at end of period	$	45,319		$	45,589
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	529		$	737
Cash paid for Income taxes	$	-		$	-

Three Months Ending September 30:	2021		2020
Net Sales
United States	$	—	$	—
Denmark		10,181		10,329
Total	$	10,181	$	10,329

Long-Lived Assets
United States	$	—	$	—
Denmark		629,851		636,613
Total	$	629,851	$	636,613

Three Months Ending September 30, 2021
	ANV			Sharx			Corporate			Total

Net sales	$	10,181		$	—		$	—		$	10,181
Operating (loss) income	$	9,881		$	(41	)	$	(8,825	)	$	(1,015	)
Interest expense	$	(529	)	$	—		$	—		$	(529	)
Total assets	$	670,425		$	5,837		$	150		$	676,412

Three Months Ending September 30, 2020
	ANV			Sharx		Corporate			Total

Net sales	$	10,329		$	—	$	—		$	10,602
Operating (loss) income	$	9,780		$	184	$	(10,715	)	$	(751	)
Interest expense	$	(737	)	$	—	$	—		$	(737	)
Total assets	$	675,644		$	7,663	$	150		$	683,457

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
3.2		Bylaws.
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.

Date: November 3, 2021	By:	/s/ Robert E. Wolfe
		Robert E. Wolfe
		Chairman of the Board and Chief Executive Officer and Principal Financial Officer