Quarterly Report (10-q)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-Q

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(Mark One)

þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2017
Or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE  ACT OF 1934
For the transition period from: _____________ to _____________

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ADVANCED OXYGEN TECHNOLOGIES, INC.

 (Exact name of registrant as specified in its charter)

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Delaware	0-9951	91-1143622
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

C/O Crossfield, Inc., 653 VT Route 12A, PO Box 189, Randolph, VT 05060

 (Address of Principal Executive Offices) (Zip Code)

[phone]

 (Registrant’s telephone number, including area code)

C/O Crossfield, Inc., 100 Maiden Lane, Suite 2003, New York, NY 10038

(Former name, former address and former fiscal year, if changed since last report)

Securities registered under Section 12(g) of the Exchange Act: Common Stock, par value $.01per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o  No þ  Indicate by check mark if the registrant is not required to file reports pursuant to section 13 or Section 15(d) of the Act. Yes o  No þ Indicate by check whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes þ  No o Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ  No o Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K(§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes o  No þ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer", "an accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer	o	Accelerated Filer	o
Non Accelerated Filer	o	Smaller Reporting Company	þ
Emerging Growth Company     ¨ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ¨ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Check one: Yes o  No þ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date: As of October 30, 2017, there were 2,292,945 issued and outstanding shares of the registrant's Common Stock, $.01 par value. Documents incorporated by reference: None.

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ADVANCED OXYGEN TECHNOLOGIES, INC.

 Table of Contents

		INDEX
PART I
	Item I: Financial Statements (unaudited)			Page
		Consolidated Balance Sheet as of September 30, 2017 (unaudited) and June 30, 2017		1
		Unaudited Consolidated Statement of Operations and Other Comprehensive Income (Loss) for the three months ended September 30, 2017 and September 30, 2016		3
		Unaudited Consolidated Statement of Cash Flow for the three months ended September 30, 2017 and September 30, 2016		4
		Notes to the Consolidated Financial Statements		5
				6
	Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations			11
	Item 3: Quantitative and Qualitative Disclosures about Market Risk			16
	Item 4: Controls and Procedures			16
PART II
	Item 1: Legal Proceedings			18
	Item 2: Unregistered Sales of Equity Securities and Use of Proceeds			18
	Item 3: Defaults Upon Senior Securities			18
	Item 4: Mine Safety Disclosures			18
	Item 5: Other Information			18
	Item 6. Exhibits and Reports on Form 8-K			18
Signature				19
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

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PART 1: FINANCIAL INFORMATION

   Item I: Consolidated Financial Statements for the three months ending September 30, 2017 (unaudited).

ADVANCED OXYGEN TECHNOLOGIES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS
		As of September 30, 2017  (unaudited)				As of June 30, 2017
ASSETS
CURRENT ASSETS
Cash		$	46,107			$	50,331
Property Tax Receivable			1,263				1,221
Total Current Assets			47,370				51,552
FIXED ASSETS
Land and buildings			640,868				619,592
TOTAL ASSETS		$	688,238			$	671,144
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable		$	1,250			$	1,405
Taxes Payable			30,733				30,389
Note Payable, Current Portion			151,830				153,638
Advances From a Related Party			102,278				96,725
Total current liabilities			286,091				282,157
Notes Payable			97,776				98,760
Total Long Term Liabilities			97,776				98,760
Total Liabilities			383,867				380,917
STOCKHOLDERS' EQUITY-
Convertible preferred stock, Series 2, par value $0.01; authorized 10,000,000 shares; issued and outstanding 5,000 At September 30, 2017 and June 30, 2017			50				50
Convertible preferred stock, Series 3, par value $0.01; authorized, 1,670,000 shares issued and outstanding			-				-
Convertible preferred stock, Series 5; no par value, 1 share authorized, 0 shares issued and outstanding, respectively.			-				-
Common stock, par value $0.01; At September 30, 2017 and June 30, 2017, authorized 60,000,000 shares; issued and outstanding 2,292,945 shares.			22,929				22,929
Additional paid-in capital			20,953,991				20,953,991
Other Comprehensive Income			70,331				53,065
Accumulated deficit			(20,742,930	)			(20,739,808	)
TOTAL STOCKHOLDERS EQUITY			304,371				290,227
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY		$	688,238			$	671,144

 

 

See accompanying notes to condensed Consolidated Financial Statements.

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ADVANCED OXYGEN TECHNOLOGIES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
		For the three months ended September 30,
		2017				2016
Revenues
Real Estate Rentals		$	9,704			$	9,149
Total Revenues		$	9,704			$	9,149
Costs and Expenses
General & Administrative			1,234				2,062
Professional expenses			7,500				4,000
Transfer Agent Expense			750				-
Total Operating Expenses			9,484				6,062
Income (Loss) from operations before other income (expenses)			220				3,087
Other income (expenses)
Interest Expense			(1,690	)			(1,010	)
Income before Income Taxes			(1,470	)			2,077
Income Taxes Benefit (Expense)			(1,652	)			(164	)
NET INCOME(LOSS)		$	(3,122	)		$	1,913
Basic average weighted number of common shares outstanding			2,292,945				2,292,945
Diluted average weighted number of common shares			2,292,945				2,302,945
Basic Net Income per Share		$	(0.0014	)		$	0.0008
Dilutive Net Income per Share		$	(0.0014	)		$	0.0008
COMPREHENSIVE INCOME
Other Income (Loss)
Translation Adjustments		$	17,266				17,219
Total Comprehensive Income		$	14,144			$	19,132

 

See accompanying notes to condensed Consolidated Financial Statements.

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ADVANCED OXYGEN TECHNOLOGIES, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		For the Three Months Ended September 30,
		2017				2016
Cash flows from operating activities
Net income		$	(3,122	)		$	1,913
Adjustments to reconcile net income to net cash
Expenses paid for on behalf of the Company			9,155				-
Changes in operating assets and liabilities
Accounts payable			(155	)			2,024
Taxes payable			(695	)			(514	)
Net cash provided by (used in) operating activities			5,183				3,423
Cash flow from financing activities:
Proceeds from:
Borrowing from officer-director							2,000
Proceeds used for:
Long Term Debt			(11,100	)			(7,377	)
Net cash provided by financing activities			(11,100	)			(5,377	)
Change due to FX Translation			1,693				1,126
Net Decrease in Cash			(4,224	)			(828	)
Cash at beginning of the period		$	50,331			$	46,170
Cash at end of period		$	46,107			$	45,342
Non Cash Investing and Financing Activities
Cash paid for Interest			1,690				1,010

See accompanying notes to condensed Consolidated Financial Statements.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, SEPTEMBER 30, 217

NOTE 1- ORGANIZATION AND LINE OF BUSINESS

Organization and Basis of Presentation:

The accompanying unaudited interim condensed consolidated financial statements of Advanced Oxygen Technologies, Inc. (“Group” or the “Company”) have been prepared by management in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for annual audited financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included.

The results of operations for the three months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending June 30, 2018. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the years ended June 30, 2017 and 2016 included in Form 10-K filed with the SEC.

Lines of Business:

The Company, through its wholly owned subsidiary Anton Nielsen Vojens ApS owns income producing commercial real estate leased until 2026. The real estate consists solely of the land with no buildings or improvements (“Land”). All improvements on the Land are those of the tenant.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Revenue recognition of rental income:

Revenues are recognized during the period in which the rental payment is received. The Company applies the provisions of FASB Accounting Standards Codification ('ASC') 605-10. Revenue Recognition in Financial Statements ASC 605-10, which provides guidance on recognition, presentation, and disclosure of revenues in financial statements filed with the SEC. 

The Company's source of revenue is from a commercial property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026.

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Property Plant and Equipment:

Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses.

 Foreign currency translation:

Foreign currency transactions are translated applying the current rate method. Assets and liabilities are translated at current rates. Stockholders' equity accounts are translated at the appropriate historical rates and revenue and expenses are translated at weighted average rates for the year. Exchange rate differences that arise between the rate at the transaction date and the one in effect at the payment date, or at the balance sheet date, are recognized in the income statement.

Income Taxes:

The Company accounts for income taxes under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is required when it is less likely than not that the Company will be able to realize all or a portion of its deferred tax assets. Because it is doubtful that the net operating losses of recent years will ever be used, a valuation allowance has been recognized equal to the tax benefit of net operating losses generated.

Net Earnings per Share:

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of September 30, 2017 and September 30, 2016 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive for September 30, 2017.

Cash and Cash Equivalents:

For purposes of the statement of cash flows, the Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. 

The Company maintains its cash in bank deposit accounts which, at September 30, 2017 did not exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on such amounts.

Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.

Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to major credit risk consist principally of a single subsidiary of Anton Nielsen Vojens ApS.

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Recently Issued Accounting Standards:

In September 2017, FASB issued ASU No. 2017-01 – Business Combinations (Topic 805): Clarifying the Definition of a Business. The issuance is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, and consolidation. It is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. We do not expect that the adoption of ASU 2017-02 will have any impact on our consolidated financial statements.

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. We will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. We expect to adopt the new revenue standard using the cumulative effect transition method.

In May 2017, the FASB issued ASU 2017-09, "Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 provides clarity and reduces complexity in applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The new standard will be effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is in the process of evaluating the impact of this new guidance.

In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance.

In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements.

 

Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

 NOTE 3 - MAJOR CUSTOMER:

The Company's subsidiary, Anton Nielsen Vojens, ApS has sales to major customers who were non related parties. For the period ending September 30, 2017, and September 30, 2016 the major customer concentrations were as follows:

			Percent of Sales for the Period ending September 30,
Customer			2017				2016
Circle K Denmark A/S, Formerly Statoil A/S				100	%			100	%
-				-				-
Total Sales from Major Customers				100	%			100	%

NOTE 4 - LAND AND BUILDINGS :

The Land owned by the Company's wholly owned subsidiary constitutes the largest asset of the Company. During the 3 month period ending September 30, 2017 the Company recorded an increase in the carrying value of the Land of $21,276 due to the currency translation difference. The carrying value of the Land of the Company was as follows:

 

		Carrying Value of Land at
		September 30, 2017				June 30, 2017
US Dollars		$	640,868			$	619,592

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NOTE 5 - RELATED PARTY TRANSACTIONS:

Advances payable to Crossfields, Inc., a company that the CEO, Robert Wolfe is an officer and director, which are not collateralized, non-interest bearing, and payable upon demand, however, the Company did not expect to make payment within one year. During the three month period ended September 30, 2017 had a balance of $102,278 and the CEO paid $9,155 of Company expenses and was repaid $4,057 for a net advance to the Company of $5,553. During the three month period ended September 30, 2016 the Company and $80,563 and was advanced $2,000 to meet expenses.

NOTE 6 - NOTES PAYABLE:

The Company issued a promissory note ("Note") for $650,000, payable to the Borkwood Development Ltd, a previous shareholder of the Company ("Seller"), payable and amortized monthly and carrying an interest at 5% per year. The Company has the right to prepay the note at any time with a notice of 14 days. To secure the payment of principal and interest the Sellers will receive a perfect lien and security interest in the Shares in the company ANV until the note with accrued interest is paid in full., and, 2) In the case that the Note has not been repaid within 12 months from the day of closing the Sellers have the right to convert the debt to common stock of Advanced Oxygen Technologies, Inc. in an amount of non diluted shares calculated on the conversion Date, equal to the lesser of : a) Six hundred and Fifty thousand (650,000) or the Purchase Price minus the principal payments made by the buyer, whichever is greater, divided by the previous ten day closing price of AOXY as quoted on the national exchange, or b) Fifteen million shares, whichever is lesser. The Note has been extended until July 1, 2018 and interest waived through the period ending July 1, 2018. The balance on the note as of September 30, 2017 and June 30, 2017 was $127,029.

The Company has a note payable with a bank. The original amount of the note was kr 800,000 Danish Krone (kr) ("Note A"). The note is secured by the revenues of the lease with Circle K Denmark A/S, formerly Statoil, with a 7.00% interest rate and 0.75 years left on the term. The balance on the note as of September 30, 2017 was $8,196. The Company made principal payments of $2,721 and interest payments of $286. The value of the note reflect the currency adjustments. The table below summarizes the company's commitments going forward.

The Company has a note payable with a bank ("Note B"). The original amount of Note B was kr 1,132,000 Danish Krone (kr). Note B is secured by the subsidiary's real estate, with a 2.00% interest rate and 6.25 years left on the term. The balance on the note as of September 30, 2017 was $123,131. During the period ended September 30, 2017, the Company paid $4,374 in principal payments and $1,404 in interest. The table below summarizes the company's commitments going forward.

The Company's commitments and contingencies are $151,830 for 2018 and $22,161 for the years 2019 through 2025 with a total of $249,606. The amounts stated reflect the Company's commitments in the currencies that those commitments were made and the amounts are an estimate of what the US dollar amount would be if the currency rates did not change going forward.

The Company has minimum yearly bank payments of $24,802 for 0.75 years, and $16,606 thereafter for another 5.5 years.

The amounts stated in this note reflect the Company's commitments in the currencies that those commitments were made and the amounts are an estimate of what the US dollar amount would be if the currency rates did not change going forward. 

NOTE 7 - SHAREHOLDERS' EQUITY:

Common Stock:

Pursuant to a Certificate of Amendment to our Certificate of Incorporation filed with the State of Delaware and effective as of December 8, 2014, the Company (effected a reverse stock split of all the outstanding shares of our common stock at an exchange ratio of one for twenty (1:20) and changed the number our authorized shares of common stock, par value $0.01 per share, from 90,000,000 to 60,000,000 while maintaining the number of authorized shares of preferred stock, par value $0.01 per share, at 10,000,000. As a result, the 45,853,585 shares of common stock outstanding at December 7, 2014 had been reduced to 2,292,945 shares of common stock (taking into account the rounding up of fractional share interests).

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 Preferred Stock:

The Company is authorized to issue 10,000,000 shares of $0.01 par value preferred stock. The Company may issue any class of preferred shares in series. The board of directors has the authority to establish and designate series and to fix the number of shares included in each such series.

Series 2 Convertible Preferred Stock:

Each Series 2 preferred share is convertible into two shares of common stock at the option of the holder. Each Series 2 preferred share also includes one warrant to purchase two common shares for $5.00. The warrants are exercisable over a three-year period. In the event of the liquidation of the Company, holders of Series 2 preferred stock would be entitled to receive $5.00 per share, plus any unpaid dividends declared on the Series 2 preferred stock from the funds remaining after the Company's creditors, including directors, have been paid. There have been no dividends declared.  During November 1997, 172,000 shares of Series 2 preferred stock were converted into 344,000 shares of the Company's common stock. As of September 30, 2017, there were 5,000 shares issued, which are convertible into 2 common shares. There are no warrants outstanding that have been issued in connection with the preferred shares.

Series 3 Convertible Preferred Stock:

Each share automatically converts on March 2, 2000 into either (a) one (1) share of the Company's common stock if the average closing price of the common stock during the ten trading days immediately prior to March 1, 2000 is equal to or greater than sixty-six cents ($0.66) per share, or (b) one and one-half (1 1/2) shares of common stock if the average closing price of the common stock during the ten trading days immediately prior March 1, 2000 is less than sixty-six cents ($0.66) per share.

Series 5 Convertible Preferred Stock:

The shares are collectively convertible to common stock of the Company on March 5, 2004, in an amount equal to the greater of a) 290,000 shares divided by the ten day closing price, prior to the date of acquisition of IPS, of the Company's common stock as quoted on the national exchange and not to exceed twenty million shares, or b) six million shares.

NOTE 8 - SUBSEQUENT EVENTS:

 

In accordance with ASC 855-10, Company management reviewed all material events through the date of this report. There are no material subsequent events to report.

 

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The following should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in the Financial Statements.

FORWARD LOOKING STATEMENTS:

Certain statements contained in this report, including statements concerning the Company's future and financing requirements, the Company's ability to obtain market acceptance of its products and the competitive market for sales of small production business' and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation to those risks and uncertainties set forth in any of the Company's Registration Statements under the heading "Risk Factors" or any other such heading. In addition, historical performance of the Company should not be considered as an indicator for future performance, and as such, the future performance of the Company may differ significantly from historical performance.

RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDING SEPTEMBER 30, 2017 COMPARED TO 2016:

Revenues: Revenues from operations for the three month period ending September 30, 2017 and September 30, 2016 were $9,704 and $9,149 respectively. They were attributable to operations of the Company's wholly owned subsidiary Anton Nielsen Vojens. The fluctuation was due to currency fluctuations.

Selling, general and administrative expenses: G&A expenses for the three month period ending September 30, 2017 and September 30, 2016 were $1,234 and $2,062 respectively. The expenses are attributable to ANV's operations.

Interest expense: Interest expense for the three month period ending September 30, 2017 and September 30, 2016 was $1,690 and $1,010 respectively. Interest expenses for 2016 are lower primarily due to the currency fluctuations and the reduction of debt.

Net income (loss) attributed to common stockholders: Net income (loss) attributed to common stockholders was $(3,122) or $(0.0014) per share for the three month period ending September 30, 2017 as compared to $1,913 or $0.0008 per share for September 30, 2016 and mainly attributable to the Company's auditors and currency fluctuations.

Liquidity and capital resources:  At September 30, 2017 and June 30, 2017, the Company had cash and cash equivalents of $46,107 and $50,331 respectively. At September 30, 2017 and June 30, 2017, the Company had a working capital deficit of $238,721 and $230,605 respectively. The change in cash is primarily associated with currency fluctuations, and the decrease in the working capital deficit is primarily due to payment of debt and normal operations.

Net cash provided from (used for) operating activities for three month period ending September 30, 2017 and September 30, 2016 was $5,183 and $3,423, respectively. The net cash used by operating activities was primarily due to the operations of ANV, the payment of ANV taxes and expenses paid for on behalf of a related party.

Net cash provided from (used for) financing activities for three months period ending September 30, 2017 and September 30, 2016 was $(11,100) and $(5,377) respectively. Net cash provided from or used for financing activities for both periods is related to the company's borrowings from banks, officers and directors, and the repayment of debt.

OFF BALANCE SHEET ARRANGEMENTS:

We do not currently have any off balance sheet arrangements.

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 ACQUISITION EFFORTS:

The Company continues its efforts to raise capital to support operations and growth, and is actively searching acquisition or merger with another company that would complement AOXY or increase its earnings potential. During this period, the Company has been in discussion with Companies looking to be acquired. AOXY has not negotiated any terms nor proposed any acquisitions of any of these companies that have been accepted. In addition, the Company is in discussion with potential lending institutions to assist in financing any proposed acquisition. The Company expects difficulty in financing the growth of the increased business or acquisition and has been concentrating on raising capital and/or obtaining a line of credit.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk:

Smaller reporting companies are not required to provide the information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer who is also our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended (“Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our Chief Executive Officer and Acting Chief Financial Officer concluded as of September 30, 2017 that our disclosure controls and procedures were not effective at ensuring that the material information required to be disclosed in the Exchange Act reports is recorded, processed, summarized and reported as required in applicable SEC rules and forms.

During the three month period ended September 30, 2017, there were no changes in our internal control over financial reporting identified in connection with management’s evaluation of the effectiveness of our internal control over the financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.

PART II

ITEM 1: LEGAL PROCEEDINGS

During the period ending September 30, 2017, there were pending or threatened legal actions as follows: None

Return to Table of Contents

---

 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

None

ITEM 5. OTHER INFORMATION

None

ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K

During the 3 month period ending September 30, 2017, the Company filed no reports on Form 8-K.

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.(1)
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		XBRL Instance
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Labels Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

 

(1)

Filed as an exhibit to the Company's 8-K filed with the SEC on December 5, 2014 and incorporated herein by reference.

 

SIGNATURE

In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: October 30, 2017

 

/s/ Robert E. Wolfe /s/
------------------------------------------
Robert E. Wolfe, Chairman of the Board and
Chief Executive Officer and Principal
Financial Officer

 

CERTIFICATIONS

I, Robert Wolfe, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the 3 month period ended September 30, 2017 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

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(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.

By: /s/ Robert Wolfe

Robert Wolfe

Chief Executive Officer

Date: October 30, 2017

CERTIFICATIONS

I, Robert Wolfe, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the 3 month period ended September 30, 2017 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

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(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.

By: /s/ Robert Wolfe

Robert Wolfe

Chief Financial Officer

Date: October 30, 2017

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Oxygen Technologies, Inc. (the “Company”) on Form 10-Q for the 3 month period ended September 30, 2017 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert Wolfe, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

By: /s/ Robert Wolfe

Robert Wolfe

Chief Executive Officer

Date: October 30, 2017

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Oxygen Technologies, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2017 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert Wolfe, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

By: /s/ Robert Wolfe

Robert Wolfe

Chief Financial Officer

Date: October 30, 2017

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2017	Oct. 30, 2017
Document And Entity Information
Entity Registrant Name	ADVANCED OXYGEN TECHNOLOGIES INC
Entity Central Index Key	0000352991
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2018
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,292,945

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Jun. 30, 2017
CURRENT ASSETS
Cash	$ 46,107	$ 50,331
Property Tax Receivable	1,263	1,221
Total Current Assets	47,370	51,552
FIXED ASSETS
Land and buildings	640,868	619,592
TOTAL ASSETS	688,238	671,144
CURRENT LIABILITIES
Accounts Payable	1,250	1,405
Taxes payable	30,733	30,389
Note Payable, Current Portion	151,830	153,638
Advances From a Related Party	102,278	96,725
Total current liabilities	286,091	282,157
Notes Payable	97,776	98,760
Total Long Term Liabilities	97,776	98,760
Total Liabilities	383,867	380,917
STOCKHOLDERS' EQUITY-
Common stock, par value $0.01; At September 30, 2017 and June 30, 2017, authorized 60,000,000 shares; issued and outstanding 2,292,945 shares.	22,929	22,929
Additional paid-in capital	20,953,991	20,953,991
Other Comprehensive Income	70,331	53,065
Accumulated deficit	(20,742,930)	(20,739,808)
TOTAL STOCKHOLDERS EQUITY	304,371	290,227
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	688,238	671,144
Convertible Preferred Stock, Series 2
STOCKHOLDERS' EQUITY-
Convertible preferred stock	50	50
Convertible Preferred Stock, Series 3
STOCKHOLDERS' EQUITY-
Convertible preferred stock
Convertible Preferred Stock, Series 5
STOCKHOLDERS' EQUITY-
Convertible preferred stock

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Jun. 30, 2017
STOCKHOLDERS' EQUITY-
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	60,000,000	60,000,000
Common Stock, shares issued	2,292,945	2,292,945
Common Stock, shares outstanding	2,292,945	2,292,945
Convertible Preferred Stock, Series 2
STOCKHOLDERS' EQUITY-
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	5,000	5,000
Preferred Stock, shares outstanding	5,000	5,000
Convertible Preferred Stock, Series 3
STOCKHOLDERS' EQUITY-
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	1,670,000	1,670,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Convertible Preferred Stock, Series 5
STOCKHOLDERS' EQUITY-
Preferred Stock, shares authorized	1	1
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Revenues
Real Estate Rentals	$ 9,704	$ 9,149
Total Revenues	9,704	9,149
Costs and Expenses
General & Administrative	1,234	2,062
Professional expenses	7,500	4,000
Transfer Agent Expense	750
Total Operating Expenses	9,484	6,062
Income (Loss) from operations before other income (expenses)	220	3,087
Other income (expenses)
Interest Expense	(1,690)	(1,010)
Income before Income Taxes	(1,470)	2,077
Income Taxes Benefit (Expense)	(1,652)	(164)
NET INCOME(LOSS)	$ (3,122)	$ 1,913
Basic average weighted number of common shares outstanding	2,292,945	2,292,945
Diluted average weighted number of common shares	2,292,945	2,302,945
Basic Net Income per Share	$ (0.0014)	$ 0.0008
Dilutive Net Income per Share	$ (0.0014)	$ 0.0008
Other Income(Loss)
Translation Adjustments	$ 17,266	$ 17,219
Total Comprehensive Income (Loss)	$ 14,144	$ 19,132

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ (3,122)	$ 1,913
Adjustments to reconcile net income to net cash
Expenses paid for on behalf of the Company	9,155
Changes in operating assets and liabilities
Accounts payable	(155)	2,024
Taxes payable	(695)	(514)
Net cash provided by (used in) operating activities	5,183	3,423
Proceeds From:
Borrowing from officer-director		2,000
Proceeds used for:
Long Term Debt	(11,100)	(7,377)
Net cash provided by financing activities	(11,100)	(5,377)
Change due to FX Translation	1,693	1,126
Net Decrease in Cash	(4,224)	(828)
Cash at beginning of the period	50,331	46,170
Cash at end of period	46,107	45,342
Non Cash Investing and Financing Activities
Cash paid for Interest	$ 1,690	$ 1,010

ORGANIZATION AND LINE OF BUSINESS	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 1. ORGANIZATION AND LINE OF BUSINESS	Organization and Basis of Presentation: The accompanying unaudited interim condensed consolidated financial statements of Advanced Oxygen Technologies, Inc. (“Group” or the “Company”) have been prepared by management in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for annual audited financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for the three months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending June 30, 2018. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the years ended June 30, 2017 and 2016 included in Form 10-K filed with the SEC. Lines of Business: The Company, through its wholly owned subsidiary Anton Nielsen Vojens ApS owns income producing commercial real estate leased until 2026. The real estate consists solely of the land with no buildings or improvements (“Land”). All improvements on the Land are those of the tenant.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Revenue recognition of rental income: Revenues are recognized during the period in which the rental payment is received. The Company applies the provisions of FASB Accounting Standards Codification ('ASC') 605-10. Revenue Recognition in Financial Statements ASC 605-10, which provides guidance on recognition, presentation, and disclosure of revenues in financial statements filed with the SEC.  The Company's source of revenue is from a commercial property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026. Property Plant and Equipment: Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses. Foreign currency translation: Foreign currency transactions are translated applying the current rate method. Assets and liabilities are translated at current rates. Stockholders' equity accounts are translated at the appropriate historical rates and revenue and expenses are translated at weighted average rates for the year. Exchange rate differences that arise between the rate at the transaction date and the one in effect at the payment date, or at the balance sheet date, are recognized in the income statement. Income Taxes: The Company accounts for income taxes under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is required when it is less likely than not that the Company will be able to realize all or a portion of its deferred tax assets. Because it is doubtful that the net operating losses of recent years will ever be used, a valuation allowance has been recognized equal to the tax benefit of net operating losses generated. Net Earnings per Share: Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of September 30, 2017 and September 30, 2016 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive for September 30, 2017. Cash and Cash Equivalents: For purposes of the statement of cash flows, the Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents.  The Company maintains its cash in bank deposit accounts which, at September 30, 2017 did not exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on such amounts. Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Concentrations of Credit Risk: Financial instruments that potentially subject the Company to major credit risk consist principally of a single subsidiary of Anton Nielsen Vojens ApS. Recently Issued Accounting Standards: In September 2017, FASB issued ASU No. 2017-01 – Business Combinations (Topic 805): Clarifying the Definition of a Business. The issuance is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, and consolidation. It is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. We do not expect that the adoption of ASU 2017-02 will have any impact on our consolidated financial statements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. We will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. We expect to adopt the new revenue standard using the cumulative effect transition method. In May 2017, the FASB issued ASU 2017-09, "Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 provides clarity and reduces complexity in applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The new standard will be effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements. Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

MAJOR CUSTOMER	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 3. MAJOR CUSTOMER	The Company's subsidiary, Anton Nielsen Vojens, ApS has sales to major customers who were non related parties. For the period ending September 30, 2017, and September 30, 2016 the major customer concentrations were as follows:       Percent of Sales for the Period ending September 30,   Customer     2017     2016   Circle K Denmark A/S, Formerly Statoil A/S       100 %     100 % -       -       -                       Total Sales from Major Customers       100 %     100 %

LAND AND BUILDINGS	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 4. LAND AND BUILDINGS	The Land owned by the Company's wholly owned subsidiary constitutes the largest asset of the Company. During the 3 month period ending September 30, 2017 the Company recorded an increase in the carrying value of the Land of $21,276 due to the currency translation difference. The carrying value of the Land of the Company was as follows:       Carrying Value of Land at       September 30, 2017     June 30, 2017                     US Dollars   $ 640,868     $ 619,592

RELATED PARTY TRANSACTIONS	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 5. RELATED PARTY TRANSACTIONS	Advances payable to Crossfields, Inc., a company that the CEO, Robert Wolfe is an officer and director, which are not collateralized, non-interest bearing, and payable upon demand, however, the Company did not expect to make payment within one year. During the three month period ended September 30, 2017 had a balance of $102,278 and the CEO paid $9,155 of Company expenses and was repaid $4,057 for a net advance to the Company of $5,553. During the three month period ended September 30, 2016 the Company and $80,563 and was advanced $2,000 to meet expenses.

NOTES PAYABLE	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 6. NOTES PAYABLE	The Company issued a promissory note ("Note") for $650,000, payable to the Borkwood Development Ltd, a previous shareholder of the Company ("Seller"), payable and amortized monthly and carrying an interest at 5% per year. The Company has the right to prepay the note at any time with a notice of 14 days. To secure the payment of principal and interest the Sellers will receive a perfect lien and security interest in the Shares in the company ANV until the note with accrued interest is paid in full., and, 2) In the case that the Note has not been repaid within 12 months from the day of closing the Sellers have the right to convert the debt to common stock of Advanced Oxygen Technologies, Inc. in an amount of non diluted shares calculated on the conversion Date, equal to the lesser of : a) Six hundred and Fifty thousand (650,000) or the Purchase Price minus the principal payments made by the buyer, whichever is greater, divided by the previous ten day closing price of AOXY as quoted on the national exchange, or b) Fifteen million shares, whichever is lesser. The Note has been extended until July 1, 2018 and interest waived through the period ending July 1, 2018. The balance on the note as of September 30, 2017 and June 30, 2017 was $127,029. The Company has a note payable with a bank. The original amount of the note was kr 800,000 Danish Krone (kr) ("Note A"). The note is secured by the revenues of the lease with Circle K Denmark A/S, formerly Statoil, with a 7.00% interest rate and 0.75 years left on the term. The balance on the note as of September 30, 2017 was $8,196. The Company made principal payments of $2,721 and interest payments of $286. The value of the note reflect the currency adjustments. The table below summarizes the company's commitments going forward. The Company has a note payable with a bank ("Note B"). The original amount of Note B was kr 1,132,000 Danish Krone (kr). Note B is secured by the subsidiary's real estate, with a 2.00% interest rate and 6.25 years left on the term. The balance on the note as of September 30, 2017 was $123,131. During the period ended September 30, 2017, the Company paid $4,374 in principal payments and $1,404 in interest. The table below summarizes the company's commitments going forward. The Company's commitments and contingencies are $151,830 for 2018 and $22,161 for the years 2019 through 2025 with a total of $249,606. The amounts stated reflect the Company's commitments in the currencies that those commitments were made and the amounts are an estimate of what the US dollar amount would be if the currency rates did not change going forward. The Company has minimum yearly bank payments of $24,802 for 0.75 years, and $16,606 thereafter for another 5.5 years. The amounts stated in this note reflect the Company's commitments in the currencies that those commitments were made and the amounts are an estimate of what the US dollar amount would be if the currency rates did not change going forward.

SHAREHOLDERS' EQUITY	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 7. SHAREHOLDERS' EQUITY	Common Stock: Pursuant to a Certificate of Amendment to our Certificate of Incorporation filed with the State of Delaware and effective as of December 8, 2014, the Company (effected a reverse stock split of all the outstanding shares of our common stock at an exchange ratio of one for twenty (1:20) and changed the number our authorized shares of common stock, par value $0.01 per share, from 90,000,000 to 60,000,000 while maintaining the number of authorized shares of preferred stock, par value $0.01 per share, at 10,000,000. As a result, the 45,853,585 shares of common stock outstanding at December 7, 2014 had been reduced to 2,292,945 shares of common stock (taking into account the rounding up of fractional share interests). Preferred Stock: The Company is authorized to issue 10,000,000 shares of $0.01 par value preferred stock. The Company may issue any class of preferred shares in series. The board of directors has the authority to establish and designate series and to fix the number of shares included in each such series. Series 2 Convertible Preferred Stock: Each Series 2 preferred share is convertible into two shares of common stock at the option of the holder. Each Series 2 preferred share also includes one warrant to purchase two common shares for $5.00. The warrants are exercisable over a three-year period. In the event of the liquidation of the Company, holders of Series 2 preferred stock would be entitled to receive $5.00 per share, plus any unpaid dividends declared on the Series 2 preferred stock from the funds remaining after the Company's creditors, including directors, have been paid. There have been no dividends declared.  During November 1997, 172,000 shares of Series 2 preferred stock were converted into 344,000 shares of the Company's common stock. As of September 30, 2017, there were 5,000 shares issued, which are convertible into 2 common shares. There are no warrants outstanding that have been issued in connection with the preferred shares. Series 3 Convertible Preferred Stock: Each share automatically converts on March 2, 2000 into either (a) one (1) share of the Company's common stock if the average closing price of the common stock during the ten trading days immediately prior to March 1, 2000 is equal to or greater than sixty-six cents ($0.66) per share, or (b) one and one-half (1 1/2) shares of common stock if the average closing price of the common stock during the ten trading days immediately prior March 1, 2000 is less than sixty-six cents ($0.66) per share. Series 5 Convertible Preferred Stock: The shares are collectively convertible to common stock of the Company on March 5, 2004, in an amount equal to the greater of a)290,000 shares divided by the ten day closing price, prior to the date of acquisition of IPS, of the Company's common stock as quoted on the national exchange and not to exceed twenty million shares, or b) six million shares.

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 8. SUBSEQUENT EVENTS	In accordance with ASC 855-10, Company management reviewed all material events through the date of this report. There are no material subsequent events to report.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2017
Summary Of Significant Accounting Policies Policies
Revenue Recognition of rental income	Revenues are recognized during the period in which the rental payment is received. The Company applies the provisions of FASB Accounting Standards Codification ('ASC') 605-10. Revenue Recognition in Financial Statements ASC 605-10, which provides guidance on recognition, presentation, and disclosure of revenues in financial statements filed with the SEC.  The Company's source of revenue is from a commercial property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026.
Property Plant and Equipment	Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses.
Foreign currency translation	Foreign currency transactions are translated applying the current rate method. Assets and liabilities are translated at current rates. Stockholders' equity accounts are translated at the appropriate historical rates and revenue and expenses are translated at weighted average rates for the year. Exchange rate differences that arise between the rate at the transaction date and the one in effect at the payment date, or at the balance sheet date, are recognized in the income statement.
Income Taxes	The Company accounts for income taxes under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is required when it is less likely than not that the Company will be able to realize all or a portion of its deferred tax assets. Because it is doubtful that the net operating losses of recent years will ever be used, a valuation allowance has been recognized equal to the tax benefit of net operating losses generated.
Net Earnings per Share	Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of September 30, 2017 and September 30, 2016 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive for September 30, 2017.
Cash and Cash Equivalents	For purposes of the statement of cash flows, the Company considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at September 30, 2017 did not exceed federally insured limits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on such amounts.
Estimates	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.
Concentration of Credit Risk	Financial instruments that potentially subject the Company to major credit risk consist principally of a single subsidiary of Anton Nielsen Vojens ApS.
Recently Issued Accounting Standards	In September 2017, FASB issued ASU No. 2017-01 – Business Combinations (Topic 805): Clarifying the Definition of a Business. The issuance is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, and consolidation. It is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. We do not expect that the adoption of ASU 2017-02 will have any impact on our consolidated financial statements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (IFRS). Subsequently, the FASB has issued several additional ASUs to clarify the implementation. The new revenue standard applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public entities for interim and annual reporting periods beginning after December 15, 2017. We will adopt the new revenue standard effective January 1, 2018. Entities have the choice to apply the new revenue standard either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the new revenue standard at the date of initial application and not adjusting comparative information. We expect to adopt the new revenue standard using the cumulative effect transition method. In May 2017, the FASB issued ASU 2017-09, "Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 provides clarity and reduces complexity in applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The new standard will be effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is in the process of evaluating the impact of this new guidance. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not anticipate that the adoption of ASU 2015-02 will have any impact on our consolidated financial statements. Other recent accounting pronouncements issued by the FASB did not or are not believed by management to have a material impact on the Company's present or future financial statements.

MAJOR CUSTOMER (Tables)	3 Months Ended
	Sep. 30, 2017
Major Customer Tables
Schedules of major customer concentrations	Percent of Sales for the Period ending September 30,   Customer     2017     2016   Circle K Denmark A/S, Formerly Statoil A/S       100 %     100 % -       -       -                       Total Sales from Major Customers       100 %     100 %

LAND AND BUILDINGS (Tables)	3 Months Ended
	Sep. 30, 2017
Land And Buildings Tables
Schedule of value of land	Carrying Value of Land at       September 30, 2017     June 30, 2017                     US Dollars   $ 640,868     $ 619,592

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares	Sep. 30, 2017	Sep. 30, 2016
Summary Of Significant Accounting Policies Details Narrative
Potential dilutive shares	10,000	10,000

MAJOR CUSTOMER (Details)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Total sales from major customers	100.00%	100.00%
Circle K Denmark A/S, Formerly Statoil A/S [Member] | Sales Revenue, Net [Member]
Total sales from major customers	100.00%	100.00%

LAND AND BUILDINGS (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017
Land And Buildings Details
US Dollars	$ 640,868	$ 619,592

LAND AND BUILDINGS (Details Narrative)	3 Months Ended
	Sep. 30, 2017 USD ($)
Land And Buildings Details Narrative
Increase in carrying value of land	$ 21,276

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Advances From a Related Party	$ 102,278		$ 96,725
Expenses paid for on behalf of the Company	9,155
Proceeds form related party debt		2,000
CEO [Member]
Advances From a Related Party	102,278	$ 80,563
Expenses paid for on behalf of the Company	9,155
Repayment of related party debt	4,057
Extinguishment of related party debt	5,553
Officer - Director [Member]
Proceeds form related party debt	$ 2,000

NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Commitments and contingencies [Member]
2018	$ 151,830
2019	22,161
through 2025	249,606
Thereafter [Member]
Bank payment	$ 16,606
Bank payment term	5 years 6 months
Borkwood Development Ltd [Member] | Promissory note [Member]
Notes Payable	$ 650,000
Interest rate on notes payable	5.00%
Notes payable description	The Company has the right to prepay the note at any time with a notice of 14 days. To secure the payment of principal and interest the Sellers will receive a perfect lien and security interest in the Shares in the company ANV until the note with accrued interest is paid in full., and, 2) In the case that the Note has not been repaid within 12 months from the day of closing the Sellers have the right to convert the debt to common stock of Advanced Oxygen Technologies, Inc. in an amount of non-diluted shares calculated on the conversion Date, equal to the lesser of : a) Six hundred and Fifty thousand (650,000) or the Purchase Price minus the principal payments made by the buyer, whichever is greater, divided by the previous ten day closing price of AOXY as quoted on the national exchange, or b) Fifteen million shares, whichever is lesser.
Outstanding notes payable	$ 127,029	$ 127,029
Note A [Member]
Notes Payable	8,196
Principal payments	2,721
Interest payments	286
Note A [Member] | Danish Krone [Member]
Notes Payable	$ 800,000
Interest rate on notes payable	7.00%
Notes payable description	0.75 year left on the term
Note B [Member]
Notes Payable	$ 123,131
Principal payments	4,374
Interest payments	1,404
Note B [Member] | Danish Krone [Member]
Notes Payable	$ 1,132,000
Interest rate on notes payable	2.00%
Notes payable description	6.25 years left on the term
Minimum [Member]
Bank payment	$ 24,802
Bank payment term	9 months

SHAREHOLDERS' EQUITY (Details Narrative) - $ / shares	1 Months Ended	3 Months Ended
	Nov. 30, 1997	Sep. 30, 2017	Jun. 30, 2017	Dec. 08, 2014	Dec. 07, 2014
Common Stock, par value		$ 0.01	$ 0.01
Common Stock, shares authorized		60,000,000	60,000,000
Common Stock, shares outstanding		2,292,945	2,292,945
Series 5 Convertible Preferred Stock [Member]
Conversion description		The shares are collectively convertible to common stock of the Company on March 5, 2004, in an amount equal to the greater of a) 290,000 shares divided by the ten day closing price, prior to the date of acquisition of IPS, of the Company's common stock as quoted on the national exchange and not to exceed twenty million shares, or b) six million shares.
Convertible Preferred Stock, Series 3
Conversion description		Each share automatically converts on March 2, 2000 into either (a) one (1) share of the Company's common stock if the average closing price of the common stock during the ten trading days immediately prior to March 1, 2000 is equal to or greater than sixty-six cents ($0.66) per share, or (b) one and one-half (1 1/2) shares of common stock if the average closing price of the common stock during the ten trading days immediately prior March 1, 2000 is less than sixty-six cents ($0.66) per share.
Series 2 Convertible Preferred Stock [Member]
Preferred Stock, shares issued		5,000
Convertible common stock		2
Purchase price of warrant		$ 5.00
Discription of warrants exercisable		3 years
Preferred Stock, shares	172,000
Preferred Stock converted into common stock, shares	344,000
Common Stock
Common Stock exchange ratio		one for twenty (1:20)
Common Stock, par value		$ 0.01
Common Stock, shares authorized		10,000,000		60,000,000	90,000,000
Common Stock, shares outstanding					45,853,585
Reduction of common stock, shares					2,292,945
Preferred Stock [Member]
Preferred Stock, par value		$ 0.01
Preferred Stock, shares authorized		10,000,000

This regulatory filing also includes additional resources:
sep3017.pdf

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