Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
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 | Mar. 31, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity File Number | 0-9951 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity Common Stock, Shares Outstanding | 3,292,945 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
CURRENT ASSETS | ||
Cash | $ 45,425 | $ 43,603 |
Property tax receivable | 1,254 | 1,202 |
Total Current Assets | 46,679 | 44,805 |
Property and equipment | 636,337 | 609,250 |
TOTAL ASSETS | 683,016 | 654,055 |
CURRENT LIABILITIES | ||
Accounts payable | 2,289 | |
Contract liabilities | 3,290 | 3,150 |
Taxes payable | 43,982 | 36,030 |
Current portion of notes payable | 144,975 | 144,211 |
Advances from a related party | 122,996 | 120,271 |
Total Current Liabilities | 317,532 | 303,662 |
Long Term Liabilities | ||
Notes payable | 32,487 | 44,416 |
Total Long-term Liabilities | 32,487 | 44,416 |
Total Liabilities | 350,019 | 348,078 |
STOCKHOLDERS' EQUITY- | ||
Common stock, par value $0.01; At March 31, 2021 and June 30, 2020, authorized 60,000,000 shares; issued and outstanding 3,292,945 shares and 3,292,945 shares. | 32,929 | 32,929 |
Additional paid-in capital | 21,057,116 | 21,057,116 |
Accumulated other comprehensive income | 68,142 | 43,226 |
Accumulated deficit | (20,825,240) | (20,827,344) |
TOTAL STOCKHOLDERS' EQUITY | 332,997 | 305,977 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 683,016 | 654,055 |
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 BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Jun. 30, 2020 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 3,292,945 | 3,292,945 |
Common Stock, shares outstanding | 3,292,945 | 3,292,945 |
Convertible Preferred Stock, Series 2 | ||
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 | ||
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 | ||
Preferred Stock, par value | $ 0 | $ 0 |
Preferred Stock, shares authorized | 1 | 1 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||||
Total Revenues | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 |
Costs and Expenses | ||||
General and Administrative | 3,269 | 498 | 7,591 | 7,671 |
Professional fees | 3,025 | 2,747 | 13,075 | 11,247 |
Salary and Wages | 113,000 | |||
Total Operating Expenses | 6,294 | 3,245 | 20,666 | 131,918 |
Income (Loss) from operations | 4,110 | 6,081 | 10,351 | (103,982) |
Other income (expenses) | ||||
Interest Expense | (652) | (792) | (2,087) | (2,547) |
Income (Loss) before Income Taxes | 3,458 | 5,289 | 8,264 | (106,529) |
Income Taxes Expense | 2,080 | 1,113 | 6,160 | 4,658 |
NET INCOME (LOSS) | $ 1,378 | $ 4,176 | $ 2,104 | $ (111,187) |
Weighted average number of common shares outstanding | ||||
Basic | 3,292,945 | 3,292,945 | 3,292,945 | 2,837,490 |
Dilutive | 3,302,945 | 3,302,945 | 3,302,945 | 2,837,490 |
Basic earnings per share | $ 0 | $ 0 | $ 0 | $ (0.04) |
Dilutive earnings per share | $ 0 | $ 0 | $ 0 | $ (0.04) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
NET INCOME (LOSS) | $ 1,378 | $ 4,176 | $ 2,104 | $ (111,187) |
Foreign Currency Translation Adjustments | (29,687) | (9,438) | 24,916 | (16,975) |
TOTAL COMPREHENSIVE INCOME (LOSS) | (28,309) | (5,262) | 27,020 | (128,162) |
Rent Revenues [Member] | ||||
Revenues | ||||
Total Revenues | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Preferred Stock Convertible Series 2 | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total |
Beginning Balance, Shares at Jun. 30, 2019 | 5,000 | 2,292,945 | ||||
Beginning Balance, Amount at Jun. 30, 2019 | $ 50 | $ 22,929 | $ 20,953,991 | $ (20,724,241) | $ 48,198 | $ 300,927 |
To Record the stock-based compensation issuance of 1,000,000 shares of common stock, par value $0.01, Shares | 1,000,000 | |||||
To Record the stock-based compensation issuance of 1,000,000 shares of common stock, par value $0.01 | $ 10,000 | 103,000 | 113,000 | |||
NET INCOME (LOSS) | (111,187) | (111,187) | ||||
Foreign Currency Translation Adjustment | (16,975) | (16,975) | ||||
Ending Balance, Shares at Mar. 31, 2020 | 5,000 | 3,292,945 | ||||
Ending Balance, Amount at Mar. 31, 2020 | $ 50 | $ 32,929 | 21,056,991 | (20,835,428) | 31,223 | 285,765 |
Beginning Balance, Shares at Dec. 31, 2019 | 5,000 | 3,292,945 | ||||
Beginning Balance, Amount at Dec. 31, 2019 | $ 50 | $ 32,929 | 21,056,991 | (20,839,604) | 40,661 | 291,027 |
NET INCOME (LOSS) | 4,176 | 4,176 | ||||
Foreign Currency Translation Adjustment | (9,438) | (9,438) | ||||
Ending Balance, Shares at Mar. 31, 2020 | 5,000 | 3,292,945 | ||||
Ending Balance, Amount at Mar. 31, 2020 | $ 50 | $ 32,929 | 21,056,991 | (20,835,428) | 31,223 | 285,765 |
Beginning Balance, Shares at Jun. 30, 2020 | 5,000 | 3,292,945 | ||||
Beginning Balance, Amount at Jun. 30, 2020 | $ 50 | $ 32,929 | 21,057,116 | (20,827,344) | 43,226 | 305,977 |
NET INCOME (LOSS) | 2,104 | 2,104 | ||||
Foreign Currency Translation Adjustment | 24,916 | 24,916 | ||||
Ending Balance, Shares at Mar. 31, 2021 | 5,000 | 3,292,945 | ||||
Ending Balance, Amount at Mar. 31, 2021 | $ 50 | $ 32,929 | 21,057,116 | (20,825,240) | 68,142 | 332,997 |
Beginning Balance, Shares at Dec. 31, 2020 | 5,000 | 3,292,945 | ||||
Beginning Balance, Amount at Dec. 31, 2020 | $ 50 | $ 32,929 | 21,057,116 | (20,826,618) | 97,829 | 361,306 |
NET INCOME (LOSS) | 1,378 | 1,378 | ||||
Foreign Currency Translation Adjustment | (29,687) | (29,687) | ||||
Ending Balance, Shares at Mar. 31, 2021 | 5,000 | 3,292,945 | ||||
Ending Balance, Amount at Mar. 31, 2021 | $ 50 | $ 32,929 | $ 21,057,116 | $ (20,825,240) | $ 68,142 | $ 332,997 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 9 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock, Shares | shares | 1,000,000 |
Common Stock, par value | $ / shares | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
NET INCOME (LOSS) | $ 2,104 | $ (111,187) |
Adjustments to reconcile net income (loss) to net cash | ||
Stock-based compensation | 113,000 | |
Expenses paid on behalf of the company by a related party | 15,887 | 14,676 |
Accounts payable | 2,289 | 26 |
Taxes payable | 6,562 | (1,518) |
Contract liabilities | 3,082 | |
Net cash provided by operating activities | 26,842 | 18,079 |
Cash flow from financing activities: | ||
Repayment of related party debt | (14,085) | (11,069) |
Repayment of long-term debt | (12,512) | (12,818) |
Net cash used in financing activities | (26,597) | (23,887) |
Change due to FX Translation | (1,577) | (1,216) |
NET CHANGE IN CASH | 1,822 | (7,024) |
Cash at beginning of period | 43,603 | 43,098 |
Cash at end of period | 45,425 | 36,074 |
Non Cash Investing and Financing Activities | ||
Cash paid for Interest | 2,087 | 2,547 |
Cash paid for Income taxes | $ 1,261 |
ORGANIZATION AND LINE OF BUSINE
ORGANIZATION AND LINE OF BUSINESS | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 1 - ORGANIZATION AND LINE OF BUSINESS | NOTE 1- ORGANIZATION AND LINE OF BUSINESS: Organization: Advanced Oxygen Technologies Inc, (“Advanced Oxygen Technologies”, “AOXY”, or the “Company”), was incorporated in Delaware in 1981 under the name Aquanautics Corporation and was, from 1985 until May 1995, a startup stage specialty materials company producing new oxygen control technologies. From May of 1995 through December of 1997 the Company had minimal operations and was seeking funding for operations and companies to which it could merge or acquire. In March of 1998 the Company began operations again in California. From 1998 through 2000, the business produced and sold CD- ROMS for conference events, advertisement sales on the CD’s, database management and event marketing all associated with conference events. From 2000 through March of 2003, the business consisted solely of database management. From 2003 through April 2005, the business operations were derived totally from the Company’s wholly owned business, IP Service, ApS, a Danish IP security vulnerability company (“IP Service”). Since then, business operations have been solely derived from its wholly owned subsidiaries Anton Nielsen Vojens, ApS (“ANV”), Sharx Inc. and its wholly owned subsidiary Sharx DK ApS (collectively “Sharx”). Lines of Business: Advanced Oxygen Technologies, Inc. operations are derived from its wholly owned subsidiaries Anton Nielsen Vojens, ApS (“ANV”), Sharx Inc. and its wholly owned subsidiary Sharx DK ApS (collectively “Sharx”). ANV is a Danish company that owns commercial real estate in Vojens, Denmark. ANV’s revenues are derived solely from the lease revenue from its real estate. Circle K Denmark A/S, formerly StatOil A/S, leases the facility from ANV. The lease expires in 2026. Sharx Inc. is a Wyoming corporation incorporated in 2020 that owns Sharx DK ApS. Sharx Inc. operations are derived from its wholly owned subsidiary Sharx DK ApS. Sharx Inc. has no other operations and performs administrative functions for itself and its subsidiary. Sharx DK ApS is a Danish company, incorporated in 2020. On June 30, 2020, Sharx DK ApS, entered into a Distribution Agreement with Cleaver ApS, a Danish corporation (“Cleaver”), whereby Cleaver has appointed the Company as Cleaver’s nonexclusive distributor of its products in Europe, South America and North America. Cleaver is a manufacturer of a line of products for the logistics and cargo industry. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Anton Nielsen Vojens, ApS, Sharx Inc. and Sharx DK ApS, after elimination of all intercompany accounts, transactions, and profits. Basis of Presentation: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our 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 and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s fiscal year end is June 30. The accompanying condensed consolidated financial statements are unaudited. All adjustments considered necessary for a fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted from these interim financial statements; these financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the year ended June 30, 2020. Revenue Recognition: Revenue from Contracts with Customers For our rental revenue and commission revenue, we recognize revenue under the five steps in Topic 606, which are as follows: 1) identify the contract with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) performance obligations are satisfied. Rental Revenue Rental revenue is derived from the Commercial Property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026. (See Note 3 for further details) and from the sale of product pursuant to a non-exclusive distribution agreement. We recognize revenue when we have satisfied a performance obligation by transferring control over a product or delivering a service to a client. We measure revenue based upon the consideration set forth in an arrangement or contract with a client. We recognize revenue from these services when the services are completed. If we are paid in advance for these services, we record such payment as a contract liability until we complete the services. As of March31, 2021, the Company recorded $3,290 of contract liabilities in connection to rental revenues. Commission revenue The Company recognizes commission revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied as set forth below. The Company’s source of commission revenue is from the Company’s subsidiary Sharx in which quarterly payments are received when the customer pre-pays or pays upon the date products are drop shipped from the manufacturer pursuant to a non-exclusive distribution agreement. At such time the products are drop shipped, the Company’s performance obligation has been satisfied and revenue is recorded. The Company has determined that it is an agent of the manufacturer and collects commission revenue at or before the delivery of product (See Note 3 for further details). Property and Equipment: Land is 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. Foreign currency transactions: The Company applies the guidelines as set out in Section 830-20-35 of the FASB Accounting Standards Codification (“Section 830-20-35”) for foreign currency transactions. Pursuant to Section 830-20-35 of the FASB Accounting Standards Codification, foreign currency transactions are transactions denominated in currencies other than U.S. Dollar, the Company’s reporting currency. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the reporting currency and the currency in which a transaction is denominated increases or decreases the expected amount of reporting currency cash flows upon settlement of the transaction. That increase or decrease in expected reporting currency cash flows is a foreign currency transaction gain or loss that generally shall be included in determining net income for the period in which the exchange rate changes. Likewise, a transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses pertain to certain intercompany transactions and to transactions that are designated as, and effective as, economic hedges of net investments and foreign currency commitments. Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the following shall apply to all foreign currency transactions of an enterprise and its investees: (a) at the date the transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured and recorded in the functional currency of the recording entity by use of the exchange rate in effect at that date as defined in section 830-10-20 of the FASB Accounting Standards Codification; and (b) at each balance sheet date, recorded balances that are denominated in currencies other than the functional currency or reporting currency of the recording entity shall be adjusted to reflect the current exchange rate. The Company’s wholly owned subsidiary ANV uses the Danish Krone, DKK as its reporting currency as well as its functional currency. The wholly owned subsidiary Sharx DK ApS uses the US Dollar as its reporting currency as well as its functional currency and from time to time has transactions in foreign currency. The change in exchange rates between the U.S. Dollar, the Company’s reporting and functional currency and the foreign currency, the currency in which a transaction is denominated increases or decreases the expected amount of reporting currency cash flows upon settlement of the transaction. That increase or decrease in expected reporting currency cash flows is a foreign currency transaction gain or loss that generally is included in determining net income (loss) for the period in which the exchange rate changes. 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. Earnings per Share: Basic earnings per share are 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 March 31, 2021, and March 31, 2020 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net income for March 31, 2021, the effect of these potential common shares is dilutive for the nine-months ended March 31, 2021 and for the nine-months ended March 31, 2020these potential common shares are anti-dilutive. For the three-months ended March 31, 2021 and three-months March 31, 2020 these potential shares are 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 March 31, 2021 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. Stock-Based Compensation: The Company records stock-based compensation in accordance with ASC 718, Compensation. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued and are recognized over the employees required service period, which is generally the vesting period. Estimates: The preparation of the condensed consolidated 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 condensed consolidated 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. ANV’s rent revenues are derived from one customer. The Company’s commission revenues are subject to concentration risk as the commission revenues are derived from one product, and one customer, but that should not be the case going forward. Leases: On July 1, 2019 we adopted the new lease accounting guidance in Topic 842. As the lessor, we have elected the package of practical expedients permitted in Topic 842. Accordingly, we have accounted for our existing leases as operating leases under the new guidance, without reassessing (a) whether the contract contains a lease under Topic 842, (b) whether classification of the operating lease would be different in accordance with Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of December 31, 2018) would have met the definition of initial direct costs in Topic 842 at lease commencement. Additionally, as the lessor, we will use hindsight in determining the lease term. Upon adoption of Topic 842, lessees and lessors are required to apply a modified retrospective transition approach. Reporting entities are permitted to choose one of two methods to recognize and measure leases within the scope of Topic 842: ● Apply Topic 842 to each lease that existed at the beginning of the earliest comparative period presented in the financial statements as well as leases that commenced after that date. Under this method, prior comparative periods presented are adjusted. For leases that commenced prior to the beginning of the earliest comparative period presented, a cumulative-effect adjustment is recognized at that date. ● Apply the guidance to each lease that had commenced as of the beginning of the reporting period in which the entity first applies the lease standard with a cumulative-effect adjustment as of that date. Prior comparative periods would not be adjusted under this method. Topic 842 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases and operating leases. Based on our election of the package of practical expedients, our existing commercial leases, where we are the lessor, continue to be accounted for as operating leases under the new standard. However, Topic 842 changed certain requirements regarding the classification of leases that could result in us recognizing certain long-term leases entered into or modified after July 1, 2019 as sales-type leases or finance leases, as opposed to operating leases. We will continue to monitor our leases following the adoption date to ensure that they are classified in accordance with the new lease standards. We elected a practical expedient which allows lessors to not separate non-lease components from the lease component when the timing and pattern of transfer for the lease components and non-lease components are the same and if the lease component is classified as an operating lease. As a result, we now present all rentals and reimbursements from tenants as a single line item, Rental, within the consolidated financial statements of operations. The Company leases land to a customer. The Company determines if an arrangement contains a lease at contract inception. An arrangement is or contains a lease if the agreement identifies an asset, implicitly or explicitly, that the Customer has the right to use over a period of time. If an arrangement contains a lease, the Company classifies the lease as either an operating lease or as a finance lease based on the five criteria defined in ASC 842. Lease liabilities are recognized at commencement date based on the present value of the remaining lease payments over the lease term. The corresponding right-of-use asset is recognized for the same amount as the lease liability adjusted for any payments made at or before the commencement date, any lease incentives received, and any initial direct costs. The Company’s lease agreements may include options to renew, extend or terminate the lease. These clauses are included in the initial measurement of the lease liability when at lease commencement the Company is reasonably certain that it will exercise such options. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the Company’s incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and presented within cost of sales on the Company’s consolidated statements of operations. Finance lease right-of-use assets are amortized on a straight-line basis over the shorter of the useful life of the asset or the lease term. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations and comprehensive income. Variable rent payments related to both operating and finance leases are expensed as incurred. The Company’s variable lease payments primarily consist of real estate taxes, maintenance and usage charges. The Company made an accounting policy election to combine lease and non-lease components. The Company has elected to exclude short-term leases from the recognition requirements of ASC 842. A lease is short-term if, at the commencement date, it has a term of less than or equal to one year. Lease expense related to short-term leases is recognized on a straight-line basis over the lease term. New Accounting Pronouncements already adopted: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the fair value measurements disclosures with the primary focus to improve effectiveness of disclosures in the notes to the financial statements that is most important to the users. The new guidance modifies the required disclosures related to the valuation techniques and inputs used, uncertainty in measurement, and changes in measurements applied. ASU 2018-13 was effective for the Company for its fiscal year beginning July 1, 2020. The Company adopted this guidance on July 1, 2020. It’s adoption of the guidance did not have a material impact on the Company’s financial statements. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes 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. |
REVENUE
REVENUE | 9 Months Ended |
Mar. 31, 2021 | |
Revenue | |
NOTE 3 - REVENUE | NOTE 3 - REVENUE: The Company’s subsidiary, Anton Nielsen Vojens, ApS has one customer who is a non-related party and leases property from the Company. Rent revenues related to the operating lease are recognized as incurred. The Company’s subsidiary Sharx DK ApS derived its commission revenues from the sales of cargo security product from one customer. The Company has determined that it is an agent of the manufacturer and collects commission revenue at or before the delivery of product. The Company disaggregates revenues by revenue type and geographic location. See the below tables: Three Months Ended March 31, Revenue Type 2021 2020 Real Estate Rental $ 10,404 $ 9,326 Commission Revenues — — Total Sales by Revenue Type $ 10,404 $ 9,326 Nine Months Ended March 31, Revenue Type 2021 2020 Real Estate Rental $ 31,017 $ 27,936 Commission Revenues — — Total Sales by Revenue Type $ 31,017 $ 27,936 The Company’s derives 100% of its revenue from foreign customers. For the period ending March 31, 2021 and March 31, 2020 the revenue concentrations were as follows: Geographic Regions for the Three Months Ended March 31, Revenue Type 2021 2020 International $ 10,404 $ 9,326 Domestic — — Total Sales by Geographic Location $ 10,404 $ 9,326 Geographic Regions for the Nine Months Ended March 31, Revenue Type 2021 2020 International $ 31,017 $ 27,936 Domestic — — Total Sales by Geographic Location $ 31,017 $ 27,936 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
NOTE 4 - PROPERTY AND EQUIPMENT | NOTE 4–PROPERTY AND EQUIPMENT: The Land owned by the Company’s wholly owned subsidiary constitutes the largest asset of the Company. During the period ending March 31, 2021 the Company recorded an increase in the carrying value of the Land of $27,087, due to the currency translation difference. The carrying value of the Land of the Company was as follows: Carrying Value of Land at March June 30, US Dollars $ 663,337 $ 609,250 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
NOTE 5 - RELATED PARTY TRANSACTIONS | NOTE 5 - RELATED PARTY TRANSACTIONS: Crossfield, Inc., a company of which 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 does not expect to make payment within one year. At March 31, 2021 and June 30, 2020, the Company had a balance of $122,996 and $120,271 respectively. During the nine-month period ended March 31, 2021 and March 31,2020 expenses paid on behalf of the Company were $15,887 and $14,676 respectively. The Company repaid $12,512 and $11,069 of the advancement during the nine months ending March 31, 2021 and 2020, respectively. |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Mar. 31, 2021 | |
Notes Payable [Abstract] | |
NOTE 6 - NOTES PAYABLE | NOTE 6 - NOTES PAYABLE: During 2006, 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, 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, 2021, prior to period end and interest waived through the period ending June 30, 2021. Due to the extension, the note is not in default and therefore not convertible as of March 31, 2021. As of March 31, 2021, the unpaid balance was $127,029. The Company has a note payable with a bank. The original amount of the note was kr 1,132,000 Danish Krone (kr). The note is secured by the subsidiary’s real estate, with a 2.00% interest rate and 2.75 years remaining on the term. The balance on the note as of March 31, 2021 was $50,433. During the period ended March 31, 2021, the Company paid $14,085 in principal payments and $2,087 in interest. The Company’s commitments and contingencies are $131,710 for 2021. See below table for the years 2021 through 2024 with total principal payments due on outstanding notes payable of $177,463. 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. Year Amount 2021 $ 131,710 2022 18,959 2023 19,341 2024 7,452 Total $ 177,463 Less: Long-term portion of notes payable (32,487 ) Notes payable, current portion $ 144,975 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 | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
NOTE 7 - SHAREHOLDERS' EQUITY | NOTE 7 - STOCKHOLDERS’ EQUITY: Common Stock: On September 23, 2019 the Company entered into a Stock Grant and Investment Agreement with Robert Wolfe, its CEO and a Director (“Wolfe”) whereby the Company has granted 1,000,000 shares (the “Shares”) of common stock of the Company, with a fair value of $113,000 based on the trading price of the stock on the date of issuance of $0.11. The shares were issued for services rendered by Wolfe to the Company and which Shares are deemed irrevocably and fully earned and vested as of the date thereof. The Shares have been issued in reliance upon the exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. Preferred Stock: Series 2 Convertible Preferred Stock: The Company is authorized to issue 10,000,000 shares of $0.01 par value of series 2 convertible preferred stock. 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. There are 177,000 Series 2 Convertible Preferred shares designated. 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 March 31, 2021, and June 30, 2020 there are 5,000 shares issued, which are convertible into 2 common shares. There are no warrants outstanding that have been issued in connection with these preferred shares. Series 3 Convertible Preferred Stock: The Company has designated 1,670,000 shares of series 3 convertible preferred stock with a par value $0.01. 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. There are zero shares issued and outstanding at March 31, 2021 and June 30, 2020. Series 5 Convertible Preferred Stock: The Company has designated 1 share of series 5 convertible preferred stock, no par value. There is 1 Series 5 Convertible Preferred share designated. The shares are collectively convertible to common stock of the Company, 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. There are zero shares issued and outstanding at March 31, 2021 and June 30, 2020. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
NOTE 8 - SEGMENT AND GEOGRAPHIC INFORMATION | NOTE 8 - Segment and Geographic Information Segment Performance We have three reporting segments: ● The ANV lease segment which leases land in Denmark by long term leases. ● The Sharx’s segment which generate commissions for the sale cargo security products. ● The Corporate segment, Advanced Oxygen Technologies, Inc. which does not generate revenues, but has administrative expenses. The following table summarizes financial information regarding each reportable segment’s results of operations for the periods presented: Nine Months Ending March 31, 2021 2020 Revenue by segment Lease revenues $ 31,017 $ 27,936 Commission revenues from security product sales — — Corporate revenues — — Total revenue $ 31,017 $ 27,936 Segment profitability Lease revenues $ 21,841 $ 16,513 Commission revenues from security product sales (1,560 ) — Corporate revenues (18,177 ) (127,700 ) Total segment profitability $ 2,104 $ (111,187 ) Three Months Ending March 31, 2021 2020 Revenue by segment Lease revenues $ 10,404 $ 9,326 Commission revenues from security product sales — — Corporate revenues — — Total revenue $ 10,404 $ 9,326 Segment profitability Lease revenues $ 7,484 $ 7,123 Commission revenues from security product sales (1,669 ) — Corporate revenues (4,437 ) (2,947 ) Total segment profitability $ 1,378 $ 4,176 The following table presents net sales, based on the location in which the sale originated, and long-lived assets, representing property, plant and equipment, net of related depreciation, by geographic region. All of the assets are land that are held by the Company’s subsidiary, ANV. Three Months Ending March 31: 2021 2020 Net Sales United States $ — $ — Denmark 10,404 9,326 Total $ 10,404 $ 9,326 As of March 31, 2021 and June 30, 2020 March 31, 2021 June 30, 2020 Long-Lived Assets United States $ — $ — Denmark 636,337 609,250 Total $ 636,337 $ 609,250 Nine Months Ending March 31: 2021 2020 Net Sales United States $ — $ — Denmark 31,017 27,936 Total $ 31,017 $ 27,936 Three Months Ending March 31, 2021 ANV Sharx Corporate Total Net sales $ 10,404 $ — $ — $ 10,404 Operating income (loss) $ 10,247 $ (1,700 ) $ (4,437 ) $ 4,110 Interest expense $ (652 ) $ — $ — $ (652 ) Total assets $ 676,944 $ 5,922 $ 150 $ 683,016 Three Months Ending March 31, 2020 ANV Sharx Corporate Total Net sales $ 9,326 $ — $ — $ 9,326 Operating (loss) income $ 9,027 $ — $ (2,946 ) $ 6,081 Interest expense $ (792 ) $ — $ — $ (792 ) Total assets $ 633,408 $ — $ 150 $ 633,558 Nine Months Ending March 31, 2021 ANV Sharx Corporate Total Net sales $ 31,017 $ — $ — $ 31,017 Operating income (loss) $ 30,088 $ (1,560 ) $ (18,177 ) $ 10,351 Interest expense $ (2,087 ) $ — $ — $ (2,087 ) Total assets $ 676,944 $ 5,922 $ 150 $ 683,016 Nine Months Ending March 31, 2020 ANV Sharx Corporate Total Net sales $ 27,936 $ — $ — $ 27,936 Operating income (loss) $ 23,718 $ — $ (127,700 ) $ (103,982 ) Interest expense $ (2,547 ) $ — $ — $ (2,547 ) Total assets $ 633,408 $ — $ 150 $ 633,558 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
NOTE 9 - SUBSEQUENT EVENTS | NOTE 9 - SUBSEQUENT EVENTS: In accordance with ASC 855-10, Company management reviewed all material events through the date of this report. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Anton Nielsen Vojens, ApS, Sharx Inc. and Sharx DK ApS, after elimination of all intercompany accounts, transactions, and profits. |
Basis of Presentation | Basis of Presentation: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our 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 and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company’s fiscal year end is June 30. The accompanying condensed consolidated financial statements are unaudited. All adjustments considered necessary for a fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted from these interim financial statements; these financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the year ended June 30, 2020. |
Revenue Recognition | Revenue Recognition: Revenue from Contracts with Customers For our rental revenue and commission revenue, we recognize revenue under the five steps in Topic 606, which are as follows: 1) identify the contract with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) performance obligations are satisfied. Rental Revenue Rental revenue is derived from the Commercial Property lease in which quarterly payments are received pursuant to the property lease which is in effect until 2026. (See Note 3 for further details) and from the sale of product pursuant to a non-exclusive distribution agreement. We recognize revenue when we have satisfied a performance obligation by transferring control over a product or delivering a service to a client. We measure revenue based upon the consideration set forth in an arrangement or contract with a client. We recognize revenue from these services when the services are completed. If we are paid in advance for these services, we record such payment as a contract liability until we complete the services. As of March31, 2021, the Company recorded $3,290 of contract liabilities in connection to rental revenues. Commission revenue The Company recognizes commission revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied as set forth below. The Company’s source of commission revenue is from the Company’s subsidiary Sharx in which quarterly payments are received when the customer pre-pays or pays upon the date products are drop shipped from the manufacturer pursuant to a non-exclusive distribution agreement. At such time the products are drop shipped, the Company’s performance obligation has been satisfied and revenue is recorded. The Company has determined that it is an agent of the manufacturer and collects commission revenue at or before the delivery of product (See Note 3 for further details). |
Property and Equipment | Property and Equipment: Land is recognized at cost. Land is carried at cost less accumulated impairment losses. |
Foreign currency translation | 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. |
Foreign currency transactions | Foreign currency transactions: The Company applies the guidelines as set out in Section 830-20-35 of the FASB Accounting Standards Codification (“Section 830-20-35”) for foreign currency transactions. Pursuant to Section 830-20-35 of the FASB Accounting Standards Codification, foreign currency transactions are transactions denominated in currencies other than U.S. Dollar, the Company’s reporting currency. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the reporting currency and the currency in which a transaction is denominated increases or decreases the expected amount of reporting currency cash flows upon settlement of the transaction. That increase or decrease in expected reporting currency cash flows is a foreign currency transaction gain or loss that generally shall be included in determining net income for the period in which the exchange rate changes. Likewise, a transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses pertain to certain intercompany transactions and to transactions that are designated as, and effective as, economic hedges of net investments and foreign currency commitments. Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the following shall apply to all foreign currency transactions of an enterprise and its investees: (a) at the date the transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured and recorded in the functional currency of the recording entity by use of the exchange rate in effect at that date as defined in section 830-10-20 of the FASB Accounting Standards Codification; and (b) at each balance sheet date, recorded balances that are denominated in currencies other than the functional currency or reporting currency of the recording entity shall be adjusted to reflect the current exchange rate. The Company’s wholly owned subsidiary ANV uses the Danish Krone, DKK as its reporting currency as well as its functional currency. The wholly owned subsidiary Sharx DK ApS uses the US Dollar as its reporting currency as well as its functional currency and from time to time has transactions in foreign currency. The change in exchange rates between the U.S. Dollar, the Company’s reporting and functional currency and the foreign currency, the currency in which a transaction is denominated increases or decreases the expected amount of reporting currency cash flows upon settlement of the transaction. That increase or decrease in expected reporting currency cash flows is a foreign currency transaction gain or loss that generally is included in determining net income (loss) for the period in which the exchange rate changes. |
Income Taxes | 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. |
Earnings per Share | Earnings per Share: Basic earnings per share are 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 March 31, 2021, and March 31, 2020 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net income for March 31, 2021, the effect of these potential common shares is dilutive for the nine-months ended March 31, 2021 and for the nine-months ended March 31, 2020these potential common shares are anti-dilutive. For the three-months ended March 31, 2021 and three-months March 31, 2020 these potential shares are dilutive. |
Cash and Cash Equivalents | 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 March 31, 2021 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. |
Stock-Based Compensation | Stock-Based Compensation: The Company records stock-based compensation in accordance with ASC 718, Compensation. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued and are recognized over the employees required service period, which is generally the vesting period. |
Estimates | Estimates: The preparation of the condensed consolidated 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 condensed consolidated 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 | 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. ANV’s rent revenues are derived from one customer. The Company’s commission revenues are subject to concentration risk as the commission revenues are derived from one product, and one customer, but that should not be the case going forward. |
Leases | Leases: On July 1, 2019 we adopted the new lease accounting guidance in Topic 842. As the lessor, we have elected the package of practical expedients permitted in Topic 842. Accordingly, we have accounted for our existing leases as operating leases under the new guidance, without reassessing (a) whether the contract contains a lease under Topic 842, (b) whether classification of the operating lease would be different in accordance with Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of December 31, 2018) would have met the definition of initial direct costs in Topic 842 at lease commencement. Additionally, as the lessor, we will use hindsight in determining the lease term. Upon adoption of Topic 842, lessees and lessors are required to apply a modified retrospective transition approach. Reporting entities are permitted to choose one of two methods to recognize and measure leases within the scope of Topic 842: ● Apply Topic 842 to each lease that existed at the beginning of the earliest comparative period presented in the financial statements as well as leases that commenced after that date. Under this method, prior comparative periods presented are adjusted. For leases that commenced prior to the beginning of the earliest comparative period presented, a cumulative-effect adjustment is recognized at that date. ● Apply the guidance to each lease that had commenced as of the beginning of the reporting period in which the entity first applies the lease standard with a cumulative-effect adjustment as of that date. Prior comparative periods would not be adjusted under this method. Topic 842 requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases and operating leases. Based on our election of the package of practical expedients, our existing commercial leases, where we are the lessor, continue to be accounted for as operating leases under the new standard. However, Topic 842 changed certain requirements regarding the classification of leases that could result in us recognizing certain long-term leases entered into or modified after July 1, 2019 as sales-type leases or finance leases, as opposed to operating leases. We will continue to monitor our leases following the adoption date to ensure that they are classified in accordance with the new lease standards. We elected a practical expedient which allows lessors to not separate non-lease components from the lease component when the timing and pattern of transfer for the lease components and non-lease components are the same and if the lease component is classified as an operating lease. As a result, we now present all rentals and reimbursements from tenants as a single line item, Rental, within the consolidated financial statements of operations. The Company leases land to a customer. The Company determines if an arrangement contains a lease at contract inception. An arrangement is or contains a lease if the agreement identifies an asset, implicitly or explicitly, that the Customer has the right to use over a period of time. If an arrangement contains a lease, the Company classifies the lease as either an operating lease or as a finance lease based on the five criteria defined in ASC 842. Lease liabilities are recognized at commencement date based on the present value of the remaining lease payments over the lease term. The corresponding right-of-use asset is recognized for the same amount as the lease liability adjusted for any payments made at or before the commencement date, any lease incentives received, and any initial direct costs. The Company’s lease agreements may include options to renew, extend or terminate the lease. These clauses are included in the initial measurement of the lease liability when at lease commencement the Company is reasonably certain that it will exercise such options. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the Company’s incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term and presented within cost of sales on the Company’s consolidated statements of operations. Finance lease right-of-use assets are amortized on a straight-line basis over the shorter of the useful life of the asset or the lease term. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations and comprehensive income. Variable rent payments related to both operating and finance leases are expensed as incurred. The Company’s variable lease payments primarily consist of real estate taxes, maintenance and usage charges. The Company made an accounting policy election to combine lease and non-lease components. The Company has elected to exclude short-term leases from the recognition requirements of ASC 842. A lease is short-term if, at the commencement date, it has a term of less than or equal to one year. Lease expense related to short-term leases is recognized on a straight-line basis over the lease term. |
New Accounting Pronouncements already adopted | New Accounting Pronouncements already adopted: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the fair value measurements disclosures with the primary focus to improve effectiveness of disclosures in the notes to the financial statements that is most important to the users. The new guidance modifies the required disclosures related to the valuation techniques and inputs used, uncertainty in measurement, and changes in measurements applied. ASU 2018-13 was effective for the Company for its fiscal year beginning July 1, 2020. The Company adopted this guidance on July 1, 2020. It’s adoption of the guidance did not have a material impact on the Company’s financial statements. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes 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. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue | |
Disaggregation of Revenue | The Company disaggregates revenues by revenue type and geographic location. See the below tables: Three Months Ended March 31, Revenue Type 2021 2020 Real Estate Rental $ 10,404 $ 9,326 Commission Revenues — — Total Sales by Revenue Type $ 10,404 $ 9,326 Nine Months Ended March 31, Revenue Type 2021 2020 Real Estate Rental $ 31,017 $ 27,936 Commission Revenues — — Total Sales by Revenue Type $ 31,017 $ 27,936 |
Schedules of major customer concentrations | The Company’s derives 100% of its revenue from foreign customers. For the period ending March 31, 2021 and March 31, 2020 the revenue concentrations were as follows: Geographic Regions for the Three Months Ended March 31, Revenue Type 2021 2020 International $ 10,404 $ 9,326 Domestic — — Total Sales by Geographic Location $ 10,404 $ 9,326 Geographic Regions for the Nine Months Ended March 31, Revenue Type 2021 2020 International $ 31,017 $ 27,936 Domestic — — Total Sales by Geographic Location $ 31,017 $ 27,936 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of value of land | The carrying value of the Land of the Company was as follows: Carrying Value of Land at March June 30, US Dollars $ 663,337 $ 609,250 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Notes Payable [Abstract] | |
Schedule of commitments and contingencies obligations | Year Amount 2021 $ 131,710 2022 18,959 2023 19,341 2024 7,452 Total $ 177,463 Less: Long-term portion of notes payable (32,487 ) Notes payable, current portion $ 144,975 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table summarizes financial information regarding each reportable segment’s results of operations for the periods presented: Nine Months Ending March 31, 2021 2020 Revenue by segment Lease revenues $ 31,017 $ 27,936 Commission revenues from security product sales — — Corporate revenues — — Total revenue $ 31,017 $ 27,936 Segment profitability Lease revenues $ 21,841 $ 16,513 Commission revenues from security product sales (1,560 ) — Corporate revenues (18,177 ) (127,700 ) Total segment profitability $ 2,104 $ (111,187 ) Three Months Ending March 31, 2021 2020 Revenue by segment Lease revenues $ 10,404 $ 9,326 Commission revenues from security product sales — — Corporate revenues — — Total revenue $ 10,404 $ 9,326 Segment profitability Lease revenues $ 7,484 $ 7,123 Commission revenues from security product sales (1,669 ) — Corporate revenues (4,437 ) (2,947 ) Total segment profitability $ 1,378 $ 4,176 The following table presents net sales, based on the location in which the sale originated, and long-lived assets, representing property, plant and equipment, net of related depreciation, by geographic region. All of the assets are land that are held by the Company’s subsidiary, ANV. Three Months Ending March 31: 2021 2020 Net Sales United States $ — $ — Denmark 10,404 9,326 Total $ 10,404 $ 9,326 As of March 31, 2021 and June 30, 2020 March 31, 2021 June 30, 2020 Long-Lived Assets United States $ — $ — Denmark 636,337 609,250 Total $ 636,337 $ 609,250 Nine Months Ending March 31: 2021 2020 Net Sales United States $ — $ — Denmark 31,017 27,936 Total $ 31,017 $ 27,936 Three Months Ending March 31, 2021 ANV Sharx Corporate Total Net sales $ 10,404 $ — $ — $ 10,404 Operating income (loss) $ 10,247 $ (1,700 ) $ (4,437 ) $ 4,110 Interest expense $ (652 ) $ — $ — $ (652 ) Total assets $ 676,944 $ 5,922 $ 150 $ 683,016 Three Months Ending March 31, 2020 ANV Sharx Corporate Total Net sales $ 9,326 $ — $ — $ 9,326 Operating (loss) income $ 9,027 $ — $ (2,946 ) $ 6,081 Interest expense $ (792 ) $ — $ — $ (792 ) Total assets $ 633,408 $ — $ 150 $ 633,558 Nine Months Ending March 31, 2021 ANV Sharx Corporate Total Net sales $ 31,017 $ — $ — $ 31,017 Operating income (loss) $ 30,088 $ (1,560 ) $ (18,177 ) $ 10,351 Interest expense $ (2,087 ) $ — $ — $ (2,087 ) Total assets $ 676,944 $ 5,922 $ 150 $ 683,016 Nine Months Ending March 31, 2020 ANV Sharx Corporate Total Net sales $ 27,936 $ — $ — $ 27,936 Operating income (loss) $ 23,718 $ — $ (127,700 ) $ (103,982 ) Interest expense $ (2,547 ) $ — $ — $ (2,547 ) Total assets $ 633,408 $ — $ 150 $ 633,558 |
ORGANIZATION AND LINE OF BUSI_2
ORGANIZATION AND LINE OF BUSINESS (Details Narrative) | 9 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity Incorporation, State Country Code | DE |
Year of incorporation | 1981 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||||
Contract liabilities | $ 3,290 | $ 3,290 | $ 3,150 | ||
Potential dilutive shares | 10,000 | 10,000 | 10,000 | 10,000 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net Sales | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 |
Rent Revenues [Member] | ||||
Net Sales | 10,404 | 9,326 | 31,017 | 27,936 |
Commission Revenue [Member] | ||||
Net Sales |
REVENUE (Details 1)
REVENUE (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net Sales | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 |
Foreign Customer [Member] | ||||
Net Sales | 10,404 | 9,326 | 31,017 | 27,936 |
Foreign Customer [Member] | International [Member] | ||||
Net Sales | 10,404 | 9,326 | 31,017 | 27,936 |
Foreign Customer [Member] | Domestic [Member] | ||||
Net Sales |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Abstract] | ||
US Dollars | $ 636,337 | $ 609,250 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Property, Plant and Equipment [Abstract] | |
Increase in Carrying value of land | $ 27,087 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Advances From a Related Party | $ 122,996 | $ 120,271 | |
Affiliates And Officers [Member] | |||
Advances From a Related Party | 122,996 | $ 120,271 | |
Expenses Paid on behalf of a related party | 15,887 | $ 14,676 | |
Repayment of related party | $ 12,512 | $ 11,069 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Notes Payable [Abstract] | ||
2021 | $ 131,710 | |
2022 | 18,959 | |
2023 | 19,341 | |
2024 | 7,452 | |
Total | 177,463 | |
Less: Long-term portion of notes payable | (32,487) | $ (44,416) |
Notes payable, current portion | $ 144,975 | $ 144,211 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Commitments and contingencies [Member] | |
2021 | $ 131,710 |
2021 through 2024 | 177,463 |
Borkwood Development Ltd [Member] | |
Notes Payable | 650,000 |
Unpaid balance | $ 127,029 |
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, 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. |
Note B [Member] | |
Notes Payable | $ 50,433 |
Principal payments | 14,085 |
Interest payments | 2,087 |
Danish Krone [Member] | Note B [Member] | |
Notes Payable | $ 1,132,000 |
Interest rate on notes payable | 2.00% |
Term | 2 years 9 months |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Sep. 23, 2019 | Nov. 30, 1997 | Mar. 31, 2021 | Jun. 30, 2020 | |
Series 2 Convertible Preferred Stock [Member] | ||||
Preferred Stock, shares issued | 5,000 | 5,000 | ||
Convertible common stock | 2 | 2 | ||
Preferred Stock, par value | $ 0.01 | |||
Preferred Stock, shares authorized | 10,000,000 | |||
Purchase price of warrant | $ 5 | |||
Warrants exercisable term | 3 years | |||
Preferred Stock, shares | 172,000 | |||
Preferred Stock converted into common stock, shares | 344,000 | |||
Preferred shares designated | 177,000 | |||
Series 3 Convertible Preferred Stock [Member] | ||||
Preferred Stock, shares issued | 0 | 0 | ||
Preferred Stock, shares outstanding | 0 | 0 | ||
Preferred Stock, par value | $ 0.01 | |||
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. | |||
Preferred shares designated | 1,670,000 | |||
Series 5 Convertible Preferred Stock [Member] | ||||
Preferred Stock, shares issued | 0 | 0 | ||
Preferred Stock, shares outstanding | 0 | 0 | ||
Conversion description | The shares are collectively convertible to common stock of the Company, 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. | |||
Preferred shares designated | 1 | |||
Stock Grant and Investment Agreement | Wolfe | Common Stock | ||||
Shares granted | 1,000,000 | |||
Fair value | $ 113,000 | |||
Stock price | $ 0.11 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 |
NET INCOME (LOSS) | 1,378 | 4,176 | 2,104 | (111,187) |
Lease | ||||
Net sales | 10,404 | 9,326 | 31,017 | 27,936 |
NET INCOME (LOSS) | 7,484 | 7,123 | 21,841 | 16,513 |
Commission | ||||
Net sales | ||||
NET INCOME (LOSS) | (1,669) | (1,560) | ||
Corporate | ||||
Net sales | ||||
NET INCOME (LOSS) | $ (4,437) | $ (2,947) | $ (18,177) | $ (127,700) |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Net sales | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 | |
Long-Lived Assets | 636,337 | 636,337 | $ 609,250 | ||
UNITED STATES | |||||
Net sales | |||||
Long-Lived Assets | |||||
DENMARK | |||||
Net sales | 10,404 | $ 9,326 | 31,017 | $ 27,936 | |
Long-Lived Assets | $ 636,337 | $ 636,337 | $ 609,250 |
SEGMENT AND GEOGRAPHIC INFORM_5
SEGMENT AND GEOGRAPHIC INFORMATION (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Net sales | $ 10,404 | $ 9,326 | $ 31,017 | $ 27,936 | |
Operating (loss) income | 4,110 | 6,081 | 10,351 | (103,982) | |
Interest expense | (652) | (792) | (2,087) | (2,547) | |
Total assets | 683,016 | 633,558 | 683,016 | 633,558 | $ 654,055 |
ANV | |||||
Net sales | 10,404 | 9,326 | 31,017 | 27,936 | |
Operating (loss) income | 10,247 | 9,027 | 30,088 | 23,718 | |
Interest expense | (652) | (792) | (2,087) | (2,547) | |
Total assets | 676,944 | 633,408 | 676,944 | 633,408 | |
Sharx | |||||
Net sales | |||||
Operating (loss) income | (1,700) | (1,560) | |||
Interest expense | |||||
Total assets | 5,922 | 5,922 | |||
Corporate | |||||
Net sales | |||||
Operating (loss) income | (4,437) | (2,946) | (18,177) | (127,700) | |
Interest expense | |||||
Total assets | $ 150 | $ 150 | $ 150 | $ 150 |