Advanced Oxygen Technologies Inc 10-Q for FY2024 Q2

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2024-01-24 For: 2023-12-31

Added on April 06, 2026

About this 10-Q

Advanced Oxygen Technologies Inc filed this 10-Q on January 24, 2024, covering the quarter ended December 31, 2023 (FY2024 Q2).

Headline figures

Quarter ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $10.5K; up 11.9% from $9382 a year earlier
Net income: $3434; up 52.7% from net income of $2249 a year earlier
Diluted EPS: $0.00; compared with $0.00 a year earlier

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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 December 31, 2023 (unaudited) and June 30, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended December 31, 2023 and December 31, 2022 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended December 31, 2023 and December 31, 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2023 and December 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	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

	December 31, 2023			June 30, 2023
ASSETS	(Unaudited)

CURRENT ASSETS
Cash	$	108,015		$	104,836
Property tax receivable		1,182			1,166
Total Current Assets		109,197			106,002

Property and equipment		599,458			591,705
TOTAL ASSETS	$	708,655		$	697,707

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		2,100			-
Contract liabilities		3,099			3,059
Taxes payable		68,945			62,253
Current portion of notes payable		127,029			6,930
Advances from a related party		146,985			147,387
Total Current Liabilities		348,158			219,899

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

Total Liabilities		348,158			346,928

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at December 31, 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 December 31, 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 comprehensive income		32,409			23,019
Accumulated deficit		(20,762,007	)		(20,762,335	)
TOTAL STOCKHOLDERS’ EQUITY		360,497			350,779
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	708,655		$	697,707

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

For the quarterly period ended: December 31, 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 December 31,					For the six months ended December 31,
	2023		2022			2023		2022
Revenues
Rent Revenues	$	10,501	$	9,382		$	21,134	$	18,358
Total Revenues		10,501		9,382			21,134		18,358

Operating Expenses
General and Administrative		1,666		1,451			3,570		3,072
Professional fees		4,000		3,500			13,500		12,000
Total Operating Expenses		5,666		4,951			17,070		15,072

Income from operations		4,835		4,431			4,064		3,286
Other income (expense)
Interest income (expense)		363		(220	)		285		(485	)
Gain on Tax Settlement		10		-			10		-
FX Transaction Income		-		15			-		34
Total Other Income (Expenses)		373		(205	)		295		(451	)

Income Before Income Taxes		5,208		4,226			4,359		2,835
Income Taxes Expense		1,774		1,977			4,031		3,836

NET INCOME (LOSS)	$	3,434	$	2,249		$	328	$	(1,001	)

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)	$	3,434	$	2,249		$	328	$	(1,001	)
Foreign Currency Translation Adjustments	$	32,721	$	51,019		$	9,390	$	13,943
TOTAL COMPREHENSIVE INCOME (LOSS)	$	36,155	$	53,268		$	9,718	$	12,942

	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		—		—		—		—		—		(1,001	)		—			(1,001	)
Foreign Currency Translation Adjustment		—		—		—		—		—		—			13,943			13,943

Balance at December 31, 2022		5,000		50		3,292,945		32,929		21,057,116		(20,765,607	)		8,123			332,611

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		—		—		—		—		—		328			—			328
Foreign Currency Translation Adjustment		—		—		—		—		—		—			9,390			9,390

Balance at December 31, 2023		5,000		50		3,292,945		32,929		21,057,116		(20,762,007	)		32,409			360,497

	For the Six Months Ended December 31,
	2023			2022
Cash flows from operating activities:

Net Income (loss)	$	328			(1,001	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		14,250			12,500
Changes in operating assets and liabilities
Accounts payable and accrued liabilities		2,100			2,100
Taxes payable		5,499			5,115
Accrued Expenses		-			-
Net cash provided by operating activities		23,177			18,714

Cash flow from financing activities:
Repayment of related party debt		(13,546	)		(4,969	)
Repayment of long-term debt		(6,862	)		(8,316	)
Net cash used in financing activities		(20,408	)		(13,285	)
Change due to Foreign Currency Translation		1,410			2,210
NET CHANGE IN CASH		3,179			7,638

Cash at beginning of period	$	104,836		$	94,216
Cash at end of period	$	108,015		$	101,854
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	(285	)	$	485
Cash paid for Income taxes	$	-		$	-

	Three Months Ended December 31,
Revenue Type	2023		2022
Real Estate Rental	$	10,501	$	9,382
Commission Revenues		—		—
Total Sales by Revenue Type	$	10,501	$	9,382

	Six Months Ended December 31,
Revenue Type	2023		2022
Real Estate Rental	$	21,134	$	18,358
Commission Revenues		—		—
Total Sales by Revenue Type	$	21,134	$	18,358

	Geographic Regions
	for the Three Months Ended December 31,
Revenue Type	2023		2022
International	$	10,501	$	9,382
Domestic		—		—
Total Sales by Geographic Location	$	10,501	$	9,382

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.

	Six Months Ending December 31,
	2023			2022

Revenue by segment
Lease revenues	$	21,134		$	18,358
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	21,134		$	18,358

Segment profitability
Lease income (loss)	$	16,674		$	13,599
Commission income (loss)from security product sales		4			-
Corporate income (loss)		(16,350	)		(14,600	)
Total segment profitability	$	328		$	(1,001	)

	Three Months Ending December 31,
	2023			2022

Revenue by segment
Lease revenues	$	10,501		$	9,382
Commission revenues from security product sales		—			—
Corporate revenues		—			—
Total revenue	$	10,501		$	9,382

Segment profitability
Lease income	$	8,672		$	7,009
Commission income (loss) from security product sales		38			15
Corporate income (loss)		(5,276	)		(4,775	)
Total segment profitability	$	3,434		$	2,249

Three Months Ending December 31:	2023		2022
Net Sales
United States	$	-	$	-
Denmark		10,501		9,382
Total	$	10,501	$	9,382

As of December 31, 2023 and June 30, 2023	Dec 31, 2023		June 30, 2023
Long-Lived Assets
United States	$	-	$	-
Denmark		599,458		591,705
Total	$	599,458	$	591,705

Six Months Ending December 31:	2023		2022
Net Sales
United States	$	-	$	-
Denmark		21,134		18,358
Total	$	21,134	$	18,358

Three Months Ending December 31, 2023
	ANV		Sharx		Corporate			Total

Net sales	$	10,501	$	—	$	—		$	10,501
Operating income (loss)	$	10,082	$	27	$	(5,274	)	$	4,835
Interest expense	$	363	$	—	$	—		$	363
Total assets	$	708,505	$	—	$	150		$	708,655

Three Months Ending December 31, 2022
	ANV			Sharx			Corporate			Total

Net sales	$	9,382		$	—		$	—		$	9,382
Operating (loss) income	$	9,206		$	—		$	(4,775	)	$	4,431
Interest expense	$	(220	)	$	—		$	—		$	(220	)
Total assets	$	679,199		$	2,413		$	150		$	681,762

Six Months Ending December 31, 2023
	ANV			Sharx			Corporate			Total

Net sales	$	21,134		$	—		$	—		$	21,134
Operating income (loss)	$	20,422		$	(8	)	$	(16,350	)	$	4,064
Interest expense	$	285		$	—		$	—		$	285
Total assets	$	708,505		$	—		$	150		$	708,655

Six Months Ending December 31, 2022
	ANV			Sharx			Corporate			Total

Net sales	$	18,358		$	—		$	—		$	18,358
Operating income (loss)	$	17,920		$	(34	)	$	(14,600	)	$	3,286
Interest expense	$	(485	)	$	—		$	—		$	(485	)
Total assets	$	679,199		$	2,413		$	150		$	681,762

Year ending December 31,	2023		2022
Subsidiary ANV Lease Revenues	$	10,501	$	9,382
Subsidiary Sharx commissions from the sales of cargo security products		—		—
Total	$	10,501	$	9,382

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).

1.	I have reviewed this Quarterly Report on Form 10-Q for the 6 month period ended December 31, 2023 of Advanced Oxygen Technologies, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for, the periods presented in this report;

4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: January 24, 2024	By:	/s/ Robert Wolfe
		Robert Wolfe
		Chief Executive Officer

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.