AOXY 10-Q

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2024-05-13 For: 2024-03-31

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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.)

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 March 31, 2024 (unaudited) and June 30, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended March 31, 2024 and March 31, 2023 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended March 31, 2024 and March 31, 2023 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended March31, 2024 and March 31, 2023 (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 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, 2024			June 30, 2023
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	105,239		$	104,836
Property tax receivable		1,152			1,166
Total Current Assets		106,391			106,002

Property and equipment		584,151			591,705
TOTAL ASSETS	$	690,542		$	697,707

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		775			-
Contract liabilities		3,020			3,059
Taxes payable		69,436			62,253
Current portion of notes payable		127,029			6,930
Advances from a related party		145,530			147,387
Total Current Liabilities		345,790			219,899

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

Total Liabilities		345,790			346,928

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at March 31, 2024 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 March 31, 2024 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 comprehensive income		14,144			23,019
Accumulated deficit		(20,759,487	)		(20,762,335	)
TOTAL STOCKHOLDERS’ EQUITY		344,752			350,779
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	690,542		$	697,707

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

For the quarterly period ended: March 31, 2024

☐	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 March 31,						For the nine months ended March 31,
	2024			2023			2024			2023
Revenues
Rent Revenues	$	10,770		$	10,447		$	31,904		$	28,805
Total Revenues		10,770			10,447			31,904			28,805

Operating Expenses
General and Administrative		1,379			4,559			4,949			7,631
Professional fees		4,000			3,500			17,500			15,500
Total Operating Expenses		5,379			8,059			22,451			23,131

Income from operations		5,391			2,388			9,453			5,674
Other income (expense)
Interest income (expense)		-			(183	)		285			(668	)
Gain on Tax Settlement		-			-			10			-
FX Transaction Income		-			-			-			34
Total Other Income (Expenses)		-			(183	)		296			(634	)

Income Before Income Taxes		5,391			2,205			9,749			5,040
Income Taxes Expense		2,871			2,058			6,902			5,894

NET INCOME (LOSS)	$	2,520		$	147		$	2,848		$	(854	)

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			3,302,945			3,292,945

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

OTHER COMPREHENSIVE INCOME (LOSS)
NET INCOME (LOSS)	$	2,520		$	147		$	2,848		$	(854	)
Foreign Currency Translation Adjustments	$	(18,265	)	$	14,039		$	(8,875	)	$	27,982
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(15,745	)	$	14,186		$	(6,022	)	$	27,128

	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, 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			34,697

Balance at June 30, 2023		5,000		50		3,292,945		32,929		21,057,116		(20,762,335	)		23,019			350,779
Net income		—		—		—		—		—		2,848			—			2,848
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(8,875	)		(8,875	)

Balance at March 31, 2024		5,000		50		3,292,945		32,929		21,057,116		(20,759,487	)		14,144			344,752

	For the Nine Months Ended March 31,
	2024			2023
Cash flows from operating activities:

Net Income (loss)	$	2,848			(854	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		20,850			13,550
Changes in operating assets and liabilities
Accounts payable and accrued liabilities		775			5,825
Taxes payable		7,690			4,296
Accrued Expenses		-			-
Net cash provided by operating activities		31,358			22,817

Cash flow from financing activities:
Repayment of related party debt		(23,478	)		(8,866	)
Repayment of long-term debt		(6,930	)		(13,439	)
Net cash used in financing activities		(29,637	)		(22,305	)
Change due to Foreign Currency Translation		(1,353	)		5,055
NET CHANGE IN CASH		403			5,567

Cash at beginning of period	$	104,836		$	94,216
Cash at end of period	$	105,239		$	99,783
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	285		$	668
Cash paid for Income taxes	$	-		$	-

	Three Months Ended March 31,
Revenue Type	2024		2023
Real Estate Rental	$	10,770	$	10,447
Commission Revenues		—		—
Total Sales by Revenue Type	$	10,770	$	10,447

	Nine Months Ended March 31,
Revenue Type	2024		2023
Real Estate Rental	$	31,904	$	28,805
Commission Revenues		—		—
Total Sales by Revenue Type	$	31,904	$	28,805

	Geographic Regions
	for the Three Months Ended March 31,
Revenue Type	2024		2023
International	$	10,770	$	10,447
Domestic		—		—
Total Sales by Geographic Location	$	10,770	$	10,447

Fiscal Year Ending	Amount
2024		127,029
Total		127,029
Less: Long-term portion of notes payable	$	-

Notes payable, current portion	$	127,029

	●	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,
	2024		2023

Revenue by segment
Lease revenues	$	31,904	$	28,805
Commission revenues from security product sales		—		—
Corporate revenues		—		—
Total revenue	$	31,904	$	28,805

Segment profitability
Lease income (loss)	$	24,473	$	28,899
Commission income (loss)from security product sales		-		(2,378	)
Corporate income (loss)		21,625		(19,375	)
Total segment profitability	$	2,848	$	(854	)

	Three Months Ending March 31,
	2024			2023

Revenue by segment
Lease revenues	$	10,770		$	10,447
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	10,770		$	10,447

Segment profitability
Lease income	$	7,799		$	7,300
Commission income (loss) from security product sales		(4	)		(2,378	)
Corporate income (loss)		2,575			(4,775	)
Total segment profitability	$	2,520		$	147

Three Months Ending March 31:	2024		2023
Net Sales
United States	$	-	$	-
Denmark		10,770		10,447
Total	$	10,770	$	10,447

As of March 31, 2024 and June 30, 2023	Mar 31, 2024		June 30, 2023
Long-Lived Assets
United States	$	-	$	-
Denmark		584,151		591,705
Total	$	584,151	$	591,705

Nine Months Ending March 31:	2024		2023
Net Sales
United States	$	-	$	-
Denmark		31,904		28,805
Total	$	31,904	$	28,805

Three Months Ending March 31, 2024
	ANV		Sharx		Corporate			Total

Net sales	$	10,770	$	—	$	—		$	10,770
Operating income (loss)	$	10,666	$	—	$	(5,275	)	$	5,391
Interest expense	$	—	$	—	$	—		$	—
Total assets	$	690,392	$	—	$	150		$	690,542

Three Months Ending March 31, 2023
	ANV			Sharx			Corporate			Total

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

Nine Months Ending March 31, 2024
	ANV			Sharx			Corporate			Total

Net sales	$	31,904		$	—		$	—		$	31,904
Operating income (loss)	$	31,086		$	(8	)	$	(21,625	)	$	9,453
Interest expense	$	285		$	—		$	—		$	285
Total assets	$	690,392		$	—		$	150		$	690,542

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

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).