Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Feb. 03, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | ADVANCED OXYGEN TECHNOLOGIES INC | |
Entity Central Index Key | 352,991 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 | |
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
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
CURRENT ASSETS | ||
Cash | $ 45,458 | $ 46,170 |
Property Tax Receivable | 1,129 | 1,173 |
Total Current Assets | 46,587 | 47,343 |
FIXED ASSETS | ||
Land | 572,917 | 595,280 |
TOTAL ASSETS | 619,504 | 642,623 |
CURRENT LIABILITIES | ||
Accounts Payable | 1,296 | 2,599 |
Taxes payable | 21,976 | 24,028 |
Note Payable, Current Portion | 149,992 | 150,887 |
Advances From a Related Party | 92,430 | 78,262 |
Total current liabilities | 265,694 | 255,776 |
Notes Payable | 105,590 | 122,609 |
Total Long Term Liabilities | 105,590 | 122,609 |
Total Liabilities | 371,284 | 378,385 |
STOCKHOLDERS' EQUITY- | ||
Common stock, par value $0.01; At December 31, 2016 and June 30, 2016, 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 | 15,446 | 27,085 |
Accumulated deficit | (20,744,196) | (20,739,817) |
TOTAL STOCKHOLDERS EQUITY | 248,220 | 264,238 |
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | 619,504 | 642,623 |
Series 2 Convertible preferred stock [Member] | ||
STOCKHOLDERS' EQUITY- | ||
Convertible preferred stock | 50 | 50 |
Series 3 Convertible preferred stock [Member] | ||
STOCKHOLDERS' EQUITY- | ||
Convertible preferred stock | ||
Series 5 Convertible preferred stock [Member] | ||
STOCKHOLDERS' EQUITY- | ||
Convertible preferred stock |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Jun. 30, 2016 |
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 |
Series 2 Convertible preferred stock [Member] | ||
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 |
Series 3 Convertible preferred stock [Member] | ||
STOCKHOLDERS' EQUITY- | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 1,670,000 | 1,670,000 |
Preferred Stock, shares issued | 1,670,000 | 1,670,000 |
Preferred Stock, shares outstanding | 1,670,000 | 1,670,000 |
Series 5 Convertible preferred stock [Member] | ||
STOCKHOLDERS' EQUITY- | ||
Preferred Stock, shares issued | 1 | 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations And Other Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Consolidated Statements Of Operations And Other Comprehensive Income Loss | ||||
Sales | $ 8,837 | $ 9,057 | $ 17,986 | $ 18,115 |
Costs and Expenses | ||||
General and Administrative | 1,390 | 1,008 | 3,627 | 1,231 |
Professional Expenses | 8,023 | 6,143 | 12,023 | 6,143 |
Total Operating Expenses | 9,413 | 7,151 | 15,650 | 7,374 |
Income (loss) from Operations | (576) | 1,906 | 2,336 | 10,741 |
Other Income (Expenses) | ||||
Interest expense, net | (1,663) | (2,128) | (3,476) | (4,332) |
Income Before Income Taxes | (2,239) | (222) | (1,140) | 6,409 |
Provision for Income Taxes | 3,239 | 3,239 | ||
Net Income | $ (5,478) | $ (222) | $ (4,379) | $ 6,409 |
Net Income (Loss) Per Share: Basic | $ (0.0024) | $ (0.0001) | $ (0.0019) | $ 0.0028 |
Net Income (Loss) Per Share: Diluted | $ (0.0024) | $ (0.0001) | $ (0.0019) | $ 0.0028 |
Weighted Average Shares Outstanding Basic | 2,292,945 | 2,292,945 | 2,292,945 | 2,292,945 |
Weighted Average Shares Outstanding Diluted | 2,292,945 | 2,292,945 | 2,292,945 | 2,302,945 |
Other Income (Loss) | ||||
Translation Adjustments | $ (28,853) | $ 3,534 | $ (11,639) | $ 18,033 |
Total Comprehensive Income (Loss) | $ (34,331) | $ 3,312 | $ (16,018) | $ 24,442 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net income | $ (4,379) | $ 6,409 |
Changes in operating assets and liabilities | ||
Accounts Payable | (1,304) | 4,129 |
Taxes Payable | 4,798 | (23,272) |
Net cash provided by (used in) operating activities | (885) | (12,734) |
Proceeds From: | ||
Advances from related parties | 14,648 | 15,669 |
Proceeds used for: | ||
Long Term Debt | (12,413) | (12,550) |
Net cash provided by financing activities | 2,235 | 3,119 |
Effect of exchange rate changes on cash | (2,062) | |
Net Decrease in Cash | (712) | (9,615) |
Cash at beginning of the period | 46,170 | 68,260 |
Cash at end of period | 45,458 | 58,645 |
Non Cash Investing and Financing Activities | ||
Cash paid for Interest | $ 3,476 | $ 4,332 |
Organization and Line Of Busine
Organization and Line Of Business | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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 six months ended December 31, 2016 are not necessarily indicative of the results to be expected for the year ending June 30, 2017. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Companys audited consolidated financial statements and notes related thereto for the years ended June 30, 2016 and 2015 included in Form 10-K filed with the SEC. Lines of Business: The Company, through its wholly owned subsidiary Anton Nielsen Vojens ApS ("ANV")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 Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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, 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. Impairment of Real Estate Investments: The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of its real estate investments through its undiscounted future cash flows and the eventual disposition of the investment. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its real estate investments, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its real estate investments. 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 December 31, 2016 and June 30, 2016 there were 10,000 and 10,000, respectively potential dilutive shares and because of the net loss, the effect of these potential common shares is anti-dilutive. 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 December 31, 2016 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. Reclassification: Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation. Recently Issued Accounting Standards: 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
Major Customer | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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 December 31, 2016, and December 31, 2015 the major customer concentrations were as follows: Percent of Sales for the Period ending December 31, Customer 2016 2015 StatOil A/S 100 % 100 % - - - Total Sales from Major Customers 100 % 100 % |
Land
Land | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
4. LAND | The Land owned by the Company's wholly owned subsidiary constitutes the largest asset of the Company. As of December 31, 2016 the difference in the Land's carrying value as recorded on the balance sheet amounting to $(22,363) is solely due to the currency translation difference. The carrying value of the Land of the Company was as follows: Carrying Value of Land at December 31, 2016 June 30, 2016 US Dollars $ 572,917 $ 595,280 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
5. RELATED PARTY TRANSACTIONS | Crossfields, Inc., a company that the CEO, Robert Wolfe is an officer and director, has made advances to the Company which are not collateralized, non-interest bearing, and payable upon demand, however, the Company did not expect to make payment within one year. As of December 31, 2016, the amount due to Crossfields was $92,430. Crossfields advanced an additional $14,168 during the six months ended December 31, 2016 to meet expenses. |
Notes Payable
Notes Payable | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
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, 2017 and interest waived through the period ending December 31, 2016. The balance on the note as of December 31, 2016 and June 30, 2016 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 Statoil, with a 7.00% interest rate and 1.5 years left on the term. The balance on the note as of December 31, 2016 was $14,625. The Company made principal payments of $4,727 and interest payments of $678. The value of the note reflect the currency adjustments. The paragraph 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 7 years left on the term. The balance on the note as of December 31, 2016 was $113,928. During the period ended December 31, 2016, the Company paid $7,686 in principal payments and $2,798 in interest payments. The Company's debt obligations at December 31, 2016 and June 30, 2016 are: December 31, June 30, 2016 2016 Bank Loans $ 128,552 $ 146,467 Borkwood Development Ltd 127,029 127,029 Total Debt 255,581 273,496 Less Current Portion of Debt (149,992 ) (150,887 ) Long-Term portion of Debt $ 105,590 $ 122,609 The Company has minimum yearly bank payments of $33,610 for 1.5 years, and $22,397 thereafter for another 5.2 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
Shareholders' Equity | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
7. STOCKHOLDERS' 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 December 31, 2016, 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. |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
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, 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. |
Impairment of Real Estate Investments | The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of its real estate investments through its undiscounted future cash flows and the eventual disposition of the investment. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its real estate investments, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its real estate investments. |
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 December 31, 2016 and June 30, 2016 there were 10,000 and 10,000, respectively potential dilutive shares and because of the net loss, the effect of these potential common shares is anti-dilutive. |
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 December 31, 2016 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. |
Reclassification | Certain balances in previously issued financial statements have been reclassified to be consistent with the current period presentation. |
Recently Issued Accounting Standards | 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)
Major Customer (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Major Customer Tables | |
Schedules of major customer concentrations | For the period ending December 31, 2016, and December 31, 2015 the major customer concentrations were as follows: Percent of Sales for the Period ending December 31, Customer 2016 2015 StatOil A/S 100 % 100 % - - - Total Sales from Major Customers 100 % 100 % |
Land (Tables)
Land (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Land Tables | |
Schedule of value of land | The carrying value of the Land of the Company was as follows: Carrying Value of Land at December 31, 2016 June 30, 2016 US Dollars $ 572,917 $ 595,280 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Payable Tables | |
Summary of debt obligations | The Company's debt obligations at December 31, 2016 and June 30, 2016 are: December 31, June 30, 2016 2016 Bank Loans $ 128,552 $ 146,467 Borkwood Development Ltd 127,029 127,029 Total Debt 255,581 273,496 Less Current Portion of Debt (149,992 ) (150,887 ) Long-Term portion of Debt $ 105,590 $ 122,609 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Details Narrative) - shares | Dec. 31, 2016 | Jun. 30, 2016 |
Summary Of Significant Accounting Policies Details Narrative | ||
Potential dilutive shares | 10,000 | 10,000 |
Major Customer (Details)
Major Customer (Details) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Total sales from major customers | 100.00% | 100.00% |
StatOil A/S [Member] | Sales Revenue, Net [Member] | ||
Total sales from major customers | 100.00% | 100.00% |
Land (Details)
Land (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Land Details | ||
US Dollars | $ 572,917 | $ 595,280 |
Land (Details Narrative)
Land (Details Narrative) | 6 Months Ended |
Dec. 31, 2016USD ($) | |
Land Details Narrative | |
Increase in carrying value of land | $ (22,363) |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Related Party Transactions Details Narrative | ||
Advances From a Related Party | $ 92,430 | $ 78,262 |
Crossfields advance | $ 14,168 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Notes Payable Details | ||
Bank Loans | $ 128,552 | $ 146,467 |
Borkwood Development Ltd | 127,029 | 127,029 |
Total Debt | 255,581 | 273,496 |
Less Current Portion of Debt | 149,992 | 150,887 |
Long-Term portion of Debt | $ 105,590 | $ 122,609 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Minimum period | 1 year 6 months | |
Thereafter | 5 years 2 months 12 days | |
Borkwood Development Ltd [Member] | ||
Notes payable | $ 650,000 | |
Interest on note payable | 5.00% | |
Balance of notes payable | $ 127,029 | $ 127,029 |
Note A [Member] | ||
Notes payable | $ 800,000 | |
Interest on note payable | 7.00% | |
Principal payments | $ 4,727 | |
Interest payments | 678 | |
Balance of notes payable | 14,625 | |
Note B [Member] | ||
Notes payable | $ 1,132,000 | |
Interest on note payable | 2.00% | |
Principal payments | $ 7,686 | |
Interest payments | 2,798 | |
Balance of notes payable | 113,928 | |
Minimum [Member] | ||
Yearly bank payments | 33,610 | |
Thereafter [Member] | ||
Yearly bank payments | $ 22,397 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - $ / shares | 1 Months Ended | 6 Months Ended | ||
Nov. 30, 1997 | Dec. 31, 2016 | Jun. 30, 2016 | 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 2 Convertible preferred stock [Member] | ||||
Preferred Stock, shares issued | 5,000 | 5,000 | ||
Convertible common stock | 2 | |||
Preferred Stock, par value | $ 0.01 | $ 0.01 | ||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | ||
Purchase price of warrant | $ 5 | |||
Discription of warrants exercisable | 3 years | |||
Preferred stock, shares | 172,000 | |||
Converted 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 | |||
Common Stock, shares outstanding | 45,853,585 | |||
Reduction of common stock, shares | 2,292,945 | |||
Common Stock | Minimum [Member] | ||||
Common Stock, shares authorized | 60,000,000 | |||
Common Stock | Maximum [Member] | ||||
Common Stock, shares authorized | 90,000,000 | |||
Preferred Stock [Member] | ||||
Preferred Stock, par value | $ 0.01 | |||
Preferred Stock, shares authorized | 10,000,000 | |||
Convertible Preferred Stock, Series 3 | ||||
Closing price of the common stock | 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 Five Convertible Preferred Stock [Member] | ||||
Closing price of the common stock | 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. |