Advanced Oxygen Technologies Inc 10-Q for FY2022 Q2

Advanced Oxygen Technologies Inc (AOXY)

10-Q 2022-01-28 For: 2021-12-31

Added on April 06, 2026

About this 10-Q

Advanced Oxygen Technologies Inc filed this 10-Q on January 28, 2022, covering the quarter ended December 31, 2021 (FY2022 Q2).

Headline figures

Quarter ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $9867; down 4.1% from $10.28K a year earlier
Net income: $56.76K; up 1250.0% from net income of $4204 a year earlier

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

	For the quarterly period ended: December 31, 2021

Or

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

	For the transition period from: _____________ to _____________

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, 2021 (unaudited) and June 30, 2021		3
	Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended December 31, 2021 and December 31, 2020 (unaudited)		4
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended December 31, 2021 and December 31, 2020 (unaudited)		5
	Condensed Consolidated Statements of Cash Flow for the six months ended December 31, 2021 and December 31, 2020 (unaudited)		7
	Notes to the Condensed Consolidated Financial Statements		8-19

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
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).

	December 31, 2021			June 30, 2021
	(Unaudited)
ASSETS

CURRENT ASSETS
Cash	$	99,177		$	49,979
Property tax receivable		1,212			1,274
Total Current Assets		100,389			51,253

Property and equipment		614,607			646,078
TOTAL ASSETS	$	714,996		$	697,331

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	2,100		$	682
Contract liabilities		3,177			3,340
Taxes payable		49,598			48,108
Current portion of notes payable		145,341			19,250
Advances from a related party		129,312			125,780
Total Current Liabilities		329,528			197,160

Long Term Liabilities
Notes payable, net of current portion		16,768			154,232
Total Long-term Liabilities		16,768			154,232

Total Liabilities		346,296			351,392

STOCKHOLDERS’ EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 at December 31, 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 December 31, 2021 and June 30, 2021, 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		45,019			77,442
Accumulated deficit		(20,766,414	)		(20,821,598	)
TOTAL STOCKHOLDERS’ EQUITY		368,700			345,939
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	714,996		$	697,331

	For the three months ended December 31,						For the six months ended December 31,
	2021			2020			2021			2020
Revenues
Rent Revenues	$	9,867		$	10,284		$	20,048		$	20,613
Total Revenues		9,867			10,284			20,048			20,613

Operating Expenses
General and Administrative		3,039			267			4,205			4,332
Professional fees		3,000			3,025			11,000			10,050
Total Operating Expenses		6,039			3,292			15,205			14,372

Income from operations		3,828			6,992			4,843			6,241
Other income (expenses)
Interest Expense		(698	)		(698	)		(1,227	)		(1,435	)
Gain on Tax Settlement		55,579			-			55,579			-
Total Other Income (Expenses)		54,881			(698	)		54,352			(1,435	)

Income Before Income Taxes		58,709			6,294			59,195			4,806
Income Taxes Expense		1,954			2,090			4,011			4,080

NET INCOME	$	56,755		$	4,204		$	55,184		$	726

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			3,302,945

Basic earnings per Share	$	0.02		$	0.00		$	0.02		$	0.00
Dilutive earnings per Share	$	0.02		$	0.00		$	0.02		$	0.00

OTHER COMPREHENSIVE INCOME
Net INCOME	$	56,755		$	4,204		$	55,184		$	726
Foreign Currency Translation Adjustments	$	(16,477	)	$	29,115		$	(32,423	)	$	54,603
TOTAL COMPREHENSIVE INCOME	$	40,278		$	33,319		$	22,761		$	55,329

	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		—		—		—		—		—		726			—			726
Foreign Currency Translation Adjustment		—		—		—		—		—		—			54,603			54,603

Balance at December 31, 2020		5,000		50		3,292,945		32,929		21,057,116		(20,826,618	)		97,829			361,306

Balance at June 30, 2021		5,000		50		3,292,945		32,929		21,057,116		(20,821,598	)		77,442			345,939
Net income		—		—		—		—		—		55,184			—			55,184
Foreign Currency Translation Adjustment		—		—		—		—		—		—			(32,423	)		(32,423	)

Balance at December 31, 2021		5,000		50		3,292,945		32,929		21,057,116		(20,766,414	)		45,019			368,700

	Three Months Ended December 31,
Revenue Type	2021		2020
Real Estate Rental	$	9,867	$	10,284
Commission Revenues		-		-
Total Sales by Revenue Type	$	9,867	$	10,284

	Six Months Ended December 31,
Revenue Type	2021		2020
Real Estate Rental	$	20,048	$	20,613
Commission Revenues		-		-
Total Sales by Revenue Type	$	20,048	$	20,613

	Geographic Regions
	for the Three Months Ended December 31,
Revenue Type	2021		2020
International	$	9,867	$	10,284
Domestic		-		-
Total Sales by Geographic Location	$	9,867	$	10,284

	Geographic Regions
	for the Six Months Ended December 31,
Revenue Type	2021		2020
International	$	20,048	$	20,613
Domestic		-		-
Total Sales by Geographic Location	$	20,048	$	20,613

	Carrying Value of Land at
	December 31, 2021		June 30, 2021
US Dollars	$	614,607	$	646,078



Fiscal Year Ending	Amount
2022	$	136,231
2023		18,680
2024		7,198
Total	$	162,109
Less: Long-term portion of notes payable		(16,768	)
Notes payable, current portion	$	145,341

	●	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,
	2021			2020

Revenue by segment
Lease revenues	$	20,048		$	20,613
Commission revenues from security product sales		-			-
Corporate revenues		-			-
Total revenue	$	20,048		$	20,613

Segment profitability
Lease revenues	$	69,800		$	14,357
Commission revenues from security product sales		(70	)		109
Corporate revenues		(15,546	)		(13,740	)
Total segment profitability	$	55,148		$	726

	For the Six Months Ended December 31,
	2021			2020
Cash flows from operating activities:

Net Income	$	55,184			726
Adjustments to reconcile net income to net cash provided by operating activities
Expenses paid on behalf of the company by a related party		13,129			12,690
Changes in operating assets and liabilities
Accounts payable		1,418			1,050
Taxes payable		3,820			7,967
Net cash provided by operating activities		73,551			22,433

Cash flow from financing activities:
Repayment of related party debt		(11,536	)		(9,945	)
Repayment of long-term debt		(9,341	)		(9,299	)
Net cash used in financing activities		(20,877	)		(19,244	)
Change due to FX Translation		(3,476	)		3,556
NET CHANGE IN CASH		49,198			6,745

Cash at beginning of period	$	49,979		$	43,603
Cash at end of period	$	99,177		$	50,348
Supplemental Disclosures of Cash Flow Information
Cash paid for Interest	$	1,227		$	1,435
Cash paid for Income taxes	$	-		$	-

	Three Months Ending December 31,
	2021			2020

Revenue by segment
Lease revenues	$	9,867		$	10,284
Commission revenues from security product sales		-			-
Corporate revenues		-			-
Total revenue	$	9,867		$	10,284

Segment profitability
Lease revenues	$	62,505		$	7,304
Commission revenues from security product sales		(29	)		(75	)
Corporate revenues		(5,721	)		(3,025	)
Total segment profitability	$	56,755		$	4,204

Three Months Ending December 31:	2021		2020
Net Sales
United States	$	-	$	-
Denmark		9,867		10,284
Total	$	9,867	$	10,284

As of December 31, 2021 and June 30, 2021	Dec 31, 2021		June 30, 2021
Long-Lived Assets
United States	$	-	$	-
Denmark		614,607		646,078
Total	$	614,607	$	646,078

Six Months Ending December 31:	2021		2020
Net Sales
United States	$	-	$	-
Denmark		20,048		20,613
Total	$	20,048	$	20,613

Three Months Ending December 31, 2021
	ANV			Sharx			Corporate			Total

Net sales	$	9,867		$	48		$	-		$	9,867
Operating income (loss)	$	9,578		$	(29	)	$	(5,721	)	$	3,828
Interest expense	$	(698	)	$	-		$	-		$	(698	)
Total assets	$	710,150		$	4,696		$	150		$	714,996

Three Months Ending December 31, 2020
	ANV			Sharx			Corporate			Total

Net sales	$	10,284		$	-		$	-		$	10,284
Operating (loss) income	$	10,059		$	(42	)	$	(3,025	)	$	6,992
Interest expense	$	(698	)	$	-		$	-		$	(698	)
Total assets	$	711,184		$	7,622		$	150		$	718,956

Six Months Ending December 31, 2021
	ANV			Sharx			Corporate			Total

Net sales	$	20,048		$	48		$	-		$	20,048
Operating income (loss)	$	19,459		$	(70	)	$	(14,546	)	$	4,843
Interest expense	$	(1,227	)	$	-		$	-		$	(1,227	)
Total assets	$	710,150		$	4,696		$	150		$	714,996

Six Months Ending December 31, 2020
	ANV			Sharx		Corporate			Total

Net sales	$	20,613		$	273	$	-		$	20,613
Operating income (loss)	$	19,839		$	140	$	(13,740	)	$	6,241
Interest expense	$	(1,435	)	$	-	$	-		$	(1,435	)
Total assets	$	711,184		$	7,622	$	150		$	718,956

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.
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).

Date: January 28, 2022	By:	/s/ Robert E. Wolfe
		Robert E. Wolfe
		Chairman of the Board and Chief Executive Officer and Principal Financial Officer