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Advanced Oxygen Technologies Inc (AOXY)

Business Summary

Advanced Oxygen Technologies, Inc. operates through its wholly owned subsidiaries Anton Nielsen Vojens, ApS (ANV) and 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, and its revenues are derived solely from lease revenue from its real estate, with Circle K Denmark A/S, formerly StatOil A/S, as the tenant. Sharx distributes and sells cargo security straps and tie-downs pursuant to a nonexclusive distribution agreement with Cleaver ApS, a manufacturer of products for the logistics and cargo industry. The Company's operations are concentrated in Denmark, with foreign revenues accounting for 100% of total revenue for the years ended June 30, 2026 and 2025.

The Company's subsidiary ANV faces competition from other vacant commercial real estate entities, though management believes there are no identifiable direct competitors. In the load restraint equipment market in the United States and Europe, Sharx competes with large companies such as Dottie Down, USA Ratchet, LLC, Ratchet Straps, USA, Kinedyne, LLC, The Rachet Depot, Inc., The Forankra Group, and GTF Factors, Ltd, each of which have far greater capital and operational resources. Competitive factors in this market include price, product offerings, value-added service programs, service and delivery, credit terms, and customer support.

The Company generates revenue through two primary streams: rental revenue from ANV's commercial real estate lease and commission revenue from Sharx's distribution of cargo security products. Rental revenue is recognized under ASC 842 as operating lease income on a straight-line basis, with quarterly payments received pursuant to the property lease. Commission revenue is recognized under ASC 606 when products are drop shipped from the manufacturer, with the Company acting as an agent of the manufacturer. The Company's customer base is highly concentrated, with ANV having only one customer, Circle K Denmark A/S, and Sharx having zero retail customers for the years ended June 30, 2026 and 2025.

ANV's sole asset is commercial real estate in Vojens, Denmark, a 750 square meter parcel currently used as a fuel station, located at Ostergade 67, 6500 Vojens Denmark. The property is leased to Circle K Denmark A/S under the same terms and conditions of the prior 10 year lease, except Circle K can give a 6 month notice to terminate the lease and remove its improvements on the land. The initial term of the lease expired in February 2026 and the lease automatically extends for 6-month periods, with the lease expiring in 2027. ANV's lease revenues were $47,444 for the year ended June 30, 2026, compared to $43,445 for the year ended June 30, 2025.

Sharx, through its wholly owned subsidiary Sharx DK ApS, entered into a distribution agreement with Cleaver ApS on June 30, 2020, whereby Cleaver appointed the Company as its nonexclusive distributor of its products in Europe, South America and North America. Sharx had no revenues for the years ended June 30, 2026 and 2025, and had zero retail customers for both periods. Sharx has had no sales of product due to the manufacturer's inability to produce and deliver product to Sharx due to COVID. The Company continues its efforts to raise capital to support operations and growth, and is actively searching acquisitions or mergers with another company that would complement the Company and increase its earnings potential.

During the fiscal year ended June 30, 2026, the Company recorded a decrease in the carrying value of the Land of $(17,833) due to the currency translation difference. The Company had a gain on write-off of income tax liabilities of $96,830 during the year ended June 30, 2026. The Company repaid $60,858 of related party debt during the year ending June 30, 2026, and $89,819 during the year ending June 30, 2025. The Company's CEO, Robert Wolfe, waived his $500,000 annual salary for the years ending June 30, 2026 and 2025.

For the fiscal year ended June 30, 2026, total revenues were $47,444, compared to $43,445 in the prior year. Net income attributed to common stockholders was $102,970, or $0.03 per share, for 2026, compared to $4,138, or $0.00 per share, for 2025. The increase in net income was mainly attributable to lease revenues and a gain on write-off of income tax liabilities. Total comprehensive income was $78,011 for 2026, compared to $73,677 for 2025, with foreign currency translation adjustments of $(24,959) and $69,539, respectively.

Business Outlook & Financial Sufficiency

The Company's lease with Circle K Denmark A/S expired in February 2026 and automatically extends for 6-month periods, with the lease expiring in 2027. Through this lease, the Company believes that the operations of ANV will continue to produce revenues. The Company continues its efforts to raise capital to support operations and growth, and is actively searching acquisitions or mergers with another company that would complement the Company and increase its earnings potential.

The Company's growth strategy includes actively searching for acquisitions or mergers with another company that would complement the Company and increase its earnings potential. The Company also continues its efforts to raise capital to support operations and growth. The Company's subsidiary Sharx has a distribution agreement with Cleaver ApS to distribute cargo security products in Europe, South America and North America, though Sharx has had no sales of product due to the manufacturer's inability to produce and deliver product due to COVID.

The Company's cost structure is minimal, with general and administrative expenses of $6,147 for 2026 and professional expenses of $24,960 for 2026. The Company's CEO waived his $500,000 annual salary for the years ending June 30, 2026 and 2025, and no other officer or director received any compensation from the Company during the last fiscal year. The Company paid no bonuses in the last two fiscal years ended June 30, 2026 and 2025 to officers or other employees.

As of June 30, 2026, the Company had a total of 2 employees. The Company's operations are conducted through its wholly owned subsidiaries ANV and Sharx, with ANV owning commercial real estate in Vojens, Denmark, and Sharx distributing cargo security products. The Company's principal executive offices are located at C/O Crossfield, Inc., 653 VT Route 12A, PO Box 189, Randolph, VT 05060.

The Company's capital allocation is focused on debt repayment and supporting operations. Net cash used for financing activities for 2026 was $(68,104), related to the repayment of debt and related party debt. The Company has not paid or declared any dividends on its common stock since its inception, and the Board of Directors does not expect to declare cash dividends on its common stock in the near future. The Company anticipates retaining future earnings to finance the continuing development of its business.

The Company faces significant headwinds including the risk that its sole source of revenues may discontinue leasing, become insolvent, or not renew its relationship with the Company. ANV has only one customer, and if ANV were to lose this customer, 100% of ANV's revenues would be lost, representing a 100% decrease in the Company's revenues. Sharx's supply of products is derived from only one vendor, and should the vendor discontinue supplying product, Sharx would lose 100% of its supply of product.

The Company is subject to risks associated with foreign currency, as ANV and Sharx DK ApS are Danish companies with operations only in Denmark, and foreign revenues accounted for 100% of total revenue for the years ended June 30, 2026 and 2025. The Company is also subject to risks associated with the global decline in real estate, as ANV has only one commercial real estate property, and there is no guarantee that the demand for rental of this property will continue.

The Company's common stock is subject to the penny stock rules of the SEC, as it has a market price of less than $5.00 per share. At June 30, 2026, the closing bid price of the Company's Common Stock as reported by the National Quotation Bureau, Inc. was $0.08. The Company had 1,555 shareholders of record at June 30, 2026.

Management Sentiments & Priorities

Management's message emphasizes the Company's continued operations through its wholly owned subsidiaries, with a focus on the lease revenues from ANV's commercial real estate and the potential for Sharx's distribution business. The Company believes that the operations of ANV will continue to produce revenues through the lease with Circle K Denmark A/S, which expires in 2027. Management is actively searching for acquisitions or mergers with another company that would complement the Company and increase its earnings potential, and continues efforts to raise capital to support operations and growth. The CEO, Robert Wolfe, waived his $500,000 annual salary for the years ending June 30, 2026 and 2025, reflecting a focus on conserving cash.

Financial Details

Total revenues for the fiscal year ended June 30, 2026 were $47,444, compared to $43,445 for the prior year. Net income was $102,970 for 2026, compared to $4,138 for 2025. Basic and diluted earnings per share were $0.03 for 2026, compared to $0.00 for 2025. Income from operations was $16,337 for 2026, compared to $13,770 for 2025. The Company recorded an income tax benefit of $(86,618) for 2026, compared to an income tax expense of $9,985 for 2025, which included a gain on write-off of income tax liabilities of $96,830. Cash and cash equivalents were $39,259 at June 30, 2026, compared to $57,225 at June 30, 2025. The Company had a working capital deficit of $3,886 at June 30, 2026, compared to a working capital deficit of $91,958 at June 30, 2025. Net cash provided by operating activities was $51,378 for 2026, compared to $40,415 for 2025. Net cash used in financing activities was $(68,104) for 2026, compared to $(89,819) for 2025. The ANV lease segment generated revenues of $47,444 for 2026, compared to $43,445 for 2025, while the Sharx segment generated zero revenues for both periods.

Risk Factors

The Company's most material risk is customer concentration, as ANV has only one customer, Circle K Denmark A/S, and if this customer were lost, 100% of ANV's revenues would be lost, representing a 100% decrease in the Company's revenues. Sharx's supply of products is derived from only one vendor, and should the vendor discontinue supplying product, Sharx would lose 100% of its supply of product. The Company is also subject to foreign currency risk, as foreign revenues accounted for 100% of total revenue for the years ended June 30, 2026 and 2025, with ANV using the Danish Krone as its functional currency. The Company faces competition in the load restraint equipment market from large companies with far greater capital and operational resources, and technologies in the logistics and transportation industry are advancing, possibly eliminating the need for Sharx's products. The Company's common stock is subject to penny stock rules, with a closing bid price of $0.08 at June 30, 2026, which may make it more difficult for investors to dispose of the stock.

References

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  4. [4] Item 1A, Risk Factors — Risks Specific to Our Company
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Analysis on 9/21/2026