Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | Apr. 17, 2020 | |
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, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
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, 2020 | Jun. 30, 2019 |
CURRENT ASSETS | ||
Cash | $ 36,074 | $ 43,098 |
Property tax receivable | 1,175 | 1,213 |
Total Current Assets | 37,249 | 44,311 |
LONG TERM ASSETS | ||
Land | 596,159 | 615,220 |
TOTAL ASSETS | 633,408 | 659,531 |
CURRENT LIABILITIES | ||
Accounts payable | 250 | 225 |
Taxes payable | 28,317 | 30,782 |
Deferred revenue | 3,082 | |
Advances from a related party | 124,392 | 120,753 |
Notes payable, current portion | 143,842 | 144,380 |
Total Current Liabilities | 299,883 | 296,140 |
TOTAL LONG-TERM LIABILITIES | ||
Notes payable | 47,760 | 62,464 |
Long Term Liabilities | 47,760 | 62,464 |
Total Liabilities | 347,643 | 358,604 |
STOCKHOLDERS' EQUITY- | ||
Common stock, par value $0.01; At March 31, 2020 and June 30, 2019, authorized 60,000,000 shares; issued and outstanding 3,292,945 shares and 2,292,945 shares. | 32,929 | 22,929 |
Additional paid-in capital | 21,056,991 | 20,953,991 |
Accumulated other comprehensive income | 31,223 | 48,198 |
Accumulated deficit | (20,835,428) | (20,724,241) |
TOTAL STOCKHOLDERS EQUITY | 285,765 | 300,927 |
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | 633,408 | 659,531 |
Convertible Preferred Stock, Series 5 | ||
STOCKHOLDERS' EQUITY- | ||
Convertible preferred stock | ||
Convertible Preferred Stock, Series 3 | ||
STOCKHOLDERS' EQUITY- | ||
Convertible preferred stock | ||
Convertible Preferred Stock, Series 2 | ||
STOCKHOLDERS' EQUITY- | ||
Convertible preferred stock | $ 50 | $ 50 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Jun. 30, 2019 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 3,292,945 | 2,292,945 |
Common Stock, shares outstanding | 3,292,945 | 2,292,945 |
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 |
Common Stock | ||
Common Stock, par value | $ 0.01 | |
Common Stock, shares authorized | 10,000,000 | |
Series 5 Convertible Preferred Stock [Member] | ||
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Series 3 Convertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.01 | |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.01 | |
Preferred Stock, shares authorized | 10,000,000 | |
Series 2 Convertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.01 | |
Preferred Stock, shares authorized | 10,000,000 | |
Preferred Stock, shares issued | 5,000 | 5,000 |
Convertible Preferred Stock, Series 5 | ||
Preferred Stock, shares authorized | 1 | 1 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||||
Real Estate Rentals | $ 9,326 | $ 9,528 | $ 27,936 | $ 28,689 |
Total Revenues | 9,326 | 9,528 | 27,936 | 28,689 |
Costs and Expenses | ||||
General & Administrative | 498 | 1,316 | 7,671 | 4,492 |
Professional expenses | 2,747 | 2,500 | 11,247 | 11,000 |
Salary and Wages | 113,000 | |||
Total Operating Expenses | 3,245 | 3,816 | 131,918 | 15,492 |
Income (Loss) from operations | 6,081 | 5,712 | (103,982) | 13,197 |
Other income (expenses) | ||||
Interest Expense | (792) | (1,014) | (2,547) | (3,227) |
Income (loss) before Income Taxes | 5,289 | 4,698 | (106,529) | 9,970 |
Income Taxes Benefit (expense) | 1,113 | 5,536 | 4,658 | 5,345 |
NET INCOME (LOSS) | $ 4,176 | $ (838) | $ (111,187) | $ 4,625 |
Weighted average number of common shares outstanding: | ||||
Basic | 3,292,945 | 2,292,945 | 2,987,490 | 2,292,945 |
Dilutive | 3,302,945 | 2,292,945 | 2,987,490 | 2,302,945 |
Earnings per share: | ||||
Basic | $ 0 | $ 0 | $ (0.04) | $ 0 |
Dilutive | $ 0 | $ 0 | $ (0.04) | $ 0 |
OTHER COMPREHENSIVE LOSS | ||||
Foreign Currency Translation Adjustments | $ (9,438) | $ (11,166) | $ (16,975) | $ (22,086) |
Total Comprehensive (Loss) | $ (5,262) | $ (12,004) | $ (128,162) | $ (17,461) |
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, 2018 | 5,000 | 2,292,945 | ||||
Beginning Balance, Amount at Jun. 30, 2018 | $ 50 | $ 22,929 | $ 20,953,991 | $ (20,732,352) | $ 63,139 | $ 307,757 |
To Record the stock-based compensation issuance of 1,000,000 shares of common stock, par value $0.01, Amount | ||||||
Net Income | 4,625 | 4,625 | ||||
Foreign Currency Translation Adjustment | (22,086) | (22,086) | ||||
Ending Balance, Shares at Mar. 31, 2019 | 5,000 | 2,292,945 | ||||
Ending Balance, Amount at Mar. 31, 2019 | $ 50 | $ 22,929 | 20,953,991 | (20,727,727) | 41,053 | 290,296 |
Beginning Balance, Shares at Dec. 31, 2018 | 5,000 | 2,292,945 | ||||
Beginning Balance, Amount at Dec. 31, 2018 | $ 50 | $ 22,929 | 20,953,991 | (20,726,889) | 52,219 | 302,300 |
Net Income | (838) | (838) | ||||
Foreign Currency Translation Adjustment | (11,166) | (11,166) | ||||
Ending Balance, Shares at Mar. 31, 2019 | 5,000 | 2,292,945 | ||||
Ending Balance, Amount at Mar. 31, 2019 | $ 50 | $ 22,929 | 20,953,991 | (20,727,727) | 41,053 | 290,296 |
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, Amount | $ 10,000 | 103,000 | 113,000 | |||
Net Income | (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 | 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 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - Common Stock | 9 Months Ended |
Mar. 31, 2020$ / sharesshares | |
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, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ (111,187) | $ 4,625 |
Adjustments to reconcile net income (loss) to net cash | ||
Stock-based compensation | 113,000 | |
Expenses Paid on Behalf of a related Party | 14,676 | 14,350 |
Changes in operating assets and liabilities | ||
Accounts payable | 26 | (25) |
Taxes payable | (1,518) | (12,427) |
Deferred revenue | 3,082 | |
Net cash provided by (used in) operating activities | 18,079 | 6,523 |
Cash flow from financing activities: | ||
Repayment of long-term debt | (12,818) | (13,027) |
Repayment of notes payable - related party | (11,069) | (6,456) |
Net cash provided by (used in) financing activities | (23,887) | (19,483) |
Change due to FX Translation | (1,216) | (1,871) |
Net Change in Cash | (7,024) | (14,831) |
Cash at beginning of the period | 43,098 | 53,415 |
Cash at end of period | 36,074 | 38,584 |
Supplemental Disclosure of Cash flow Information | ||
Cash paid for Interest | $ 2,547 | $ 3,227 |
ORGANIZATION AND LINE OF BUSINE
ORGANIZATION AND LINE OF BUSINESS | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 1 - ORGANIZATION AND LINE OF BUSINESS | NOTE 1- ORGANIZATION AND LINE OF BUSINESS: Organization and Basis of Presentation: Advanced Oxygen Technologies Inc, (“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 real estate rentals in Denmark through its wholly owned subsidiary. The results of operations for the nine months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending June 30, 2020. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes related thereto for the years ended June 30, 2019 and 2018 included in Form 10-K filed with the SEC. Lines of Business: The Company, through its wholly owned subsidiary Anton Nielsen Vojens ApS owns income producing commercial real estate leased until 2026. The real estate consists solely of the land with no buildings or improvements (Land). All improvements on the land are those of the tenant. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue recognition of rental income: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company's source of revenue is 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). Property Plant and Equipment: Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses. Foreign currency translation: Foreign currency transactions are translated applying the current rate method. Assets and liabilities are translated at current rates. Stockholders’ equity accounts are translated at the appropriate historical rates and revenue and expenses are translated at weighted average rates for the year. Exchange rate differences that arise between the rate at the transaction date and the one in effect at the payment date, or at the balance sheet date, are recognized in the income statement. Income Taxes: The Company accounts for income taxes under the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is required when it is less likely than not that the Company will be able to realize all or a portion of its deferred tax assets. Because it is doubtful that the net operating losses of recent years will ever be used, a valuation allowance has been recognized equal to the tax benefit of net operating losses generated. 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 March 31, 2020, and March 31, 2019 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive for nine-months ended March 31, 2020 and dilutive for the three-months ended March 31, 2020. Cash and Cash Equivalents: For purposes of the statement of cash flows, the Company considers all highly-liquid investments purchased with original maturities of six months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at March 31, 2020 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 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. Leases: The company adopted ASU No. 2016-02, Leases (Topic 842), as of July 1, 2019, using the modified retrospective approach, which allows comparative periods not to be restated. In addition, the company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the company to carry forward the historical lease classification, not reassess whether any expired or existing contracts are or contain leases and not to reassess initial direct costs for any existing leases. The company also elected the hindsight expedient to determine the lease terms for existing leases. The election of the hindsight expedient did not have a significant impact on the calculation of the expected lease term. 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 consists 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. The adoption of the new standard did not materially impact consolidated net income and had no impact on cash flows. 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. effective January 1, 2019. On July 1, 2019 the Company adopted the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02 (Topic 842), Leases 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 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. 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, 2020 | |
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. For the period ending March 31, 2020 and March 31, 2019 the major customer concentrations were as follows: Percent of Sales for the Nine-Month Period ending March 31, Customer 2020 2019 Circle K Denmark A/S, Formerly Statoil A/S 100 % 100 % Total Sales from Major Customers 100 % 100 % |
LAND
LAND | 9 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
NOTE 5 - LAND | NOTE 4 - LAND: The Land owned by the Company’s wholly owned subsidiary constitutes the largest asset of the Company. During the nine-month period ending March 31, 2020 the Company recorded a decrease in the carrying value of the Land of $19,061 due to the currency translation difference. The carrying value of the Land of the Company was as follows: Carrying Value of Land at March 31, 2020 June 30, 2019 US Dollars $ 596,159 $ 615,220 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
NOTE 6 - 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 did not expect to make payment within one year. At March 31, 2020 and June 30, 2019, the Company had a balance of $124,392 and $120,753 respectively. During the nine-month period ended March 31, 2020 and March 31, 2019 expenses paid on behalf of the Company were $14,676 and $14,350 respectively. The Company repaid $11,069 of the advancement during the nine months ending March 31, 2020. |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Mar. 31, 2020 | |
Notes Payable [Abstract] | |
NOTE 7 - 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, 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, 2020, prior to period end and interest waived through the period ending June 30, 2020. Due to the extension, the note is not in default and therefore not convertible as of March 31, 2020. As of March 31, 2020, the unpaid balance was $127,029. 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 3.75 years left on the term. The balance on the note as of March 31, 2020 was $64,573. During the period ended March 31, 2020, the Company paid $12,821 in principal payments and $2,537 in interest. The Company’s commitments and contingencies are $131,327 for 2020. See below table for the years 2020 through 2024 with a total of $191,602. 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 2020 $ 131,327 2021 17,411 2022 17,762 2023 18,120 2024 6,982 Total $ 191,602 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, 2020 | |
Equity [Abstract] | |
NOTE 8 - SHAREHOLDERS' EQUITY | NOTE 7 - SHAREHOLDERS’ EQUITY: Common Stock: Pursuant to a Certificate of Amendment to our Certificate of Incorporation filed with the State of Delaware and effective as of December 8, 2014, the Company (effected a reverse stock split of all the outstanding shares of our common stock at an exchange ratio of one for twenty (1:20) and changed the number our authorized shares of common stock, par value $0.01 per share, from 90,000,000 to 60,000,000 while maintaining the number of authorized shares of preferred stock, par value $0.01 per share, at 10,000,000. As a result, the 45,853,585 shares of common stock outstanding at December 7, 2014 had been reduced to 2,292,945 shares of common stock (taking into account the rounding up of fractional share interests). 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 a stock price 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. 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. Each Series 2 preferred share is convertible into two shares of common stock at the option of the holder. 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, 2020, and June 30, 2019 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, 2020 and June 30, 2019. 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 shares designated. 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. There are zero shares issued and outstanding at March 31, 2020 and June 30, 2019. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
NOTE 9 - SUBSEQUENT EVENTS | NOTE 8 - 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, 2020 | |
Accounting Policies [Abstract] | |
Revenue recognition of rental income | Revenue recognition of rental income: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company's source of revenue is 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). |
Property Plant and Equipment | Property Plant and Equipment: Land and buildings are recognized at cost. Land is carried at cost less accumulated impairment losses. |
Foreign currency translation | Foreign currency 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 | 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 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 March 31, 2020, and March 31, 2019 there were 10,000 and 10,000 potential dilutive shares that need to be considered as common share equivalents and because of the net loss, the effect of these potential common shares is anti-dilutive for nine-months ended March 31, 2020 and dilutive for the three-months ended March 31, 2020. |
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 six months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts which, at March 31, 2020 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 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 | 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. |
Leases | Leases: The company adopted ASU No. 2016-02, Leases (Topic 842), as of July 1, 2019, using the modified retrospective approach, which allows comparative periods not to be restated. In addition, the company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the company to carry forward the historical lease classification, not reassess whether any expired or existing contracts are or contain leases and not to reassess initial direct costs for any existing leases. The company also elected the hindsight expedient to determine the lease terms for existing leases. The election of the hindsight expedient did not have a significant impact on the calculation of the expected lease term. 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 consists 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. The adoption of the new standard did not materially impact consolidated net income and had no impact on cash flows. |
Recently Issued Accounting Standards | 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. effective January 1, 2019. On July 1, 2019 the Company adopted the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02 (Topic 842), Leases 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 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. 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, 2020 | |
Revenue | |
Schedules of major customer concentrations | For the period ending March 31, 2020 and March 31, 2019 the major customer concentrations were as follows: Percent of Sales for the Nine-Month Period ending March 31, Customer 2020 2019 Circle K Denmark A/S, Formerly Statoil A/S 100 % 100 % Total Sales from Major Customers 100 % 100 % |
LAND (Tables)
LAND (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
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 31, 2020 June 30, 2019 US Dollars $ 596,159 $ 615,220 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Notes Payable [Abstract] | |
Schedule of commitments and contingencies obligations | Year Amount 2020 $ 131,327 2021 17,411 2022 17,762 2023 18,120 2024 6,982 Total $ 191,602 |
ORGANIZATION AND LINE OF BUSI_2
ORGANIZATION AND LINE OF BUSINESS (Details Narrative) | 9 Months Ended |
Mar. 31, 2020 | |
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) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||||
Potential dilutive shares | 10,000 | 10,000 | 10,000 | 10,000 |
REVENUE (Details)
REVENUE (Details) | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales Revenue, Net [Member] | Circle K Denmark A/S, Formerly Statoil A/S [Member] | ||
Total sales from major customers | 100.00% | 100.00% |
LAND (Details)
LAND (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||
US Dollars | $ 596,159 | $ 615,220 |
LAND (Details Narrative)
LAND (Details Narrative) | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Property, Plant and Equipment [Abstract] | |
Decrease in Carrying value of land | $ 19,061 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Advances From a Related Party | $ 124,392 | $ 120,753 | |
Expenses Paid on behalf of a related party | 14,676 | $ 14,350 | |
Affiliates And Officers [Member] | |||
Advances From a Related Party | 124,392 | $ 120,753 | |
Expenses Paid on behalf of a related party | 14,676 | $ 14,350 | |
Repayment of related party | $ 11,069 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) | Mar. 31, 2020USD ($) |
Notes Payable [Abstract] | |
2020 | $ 131,327 |
2021 | 17,411 |
2022 | 17,762 |
2023 | 18,120 |
2024 | 6,982 |
Total | $ 191,602 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) | 9 Months Ended |
Mar. 31, 2020USD ($) | |
2019 | $ 131,327 |
Total payment due | 191,602 |
Commitments and contingencies [Member] | |
2019 | 131,327 |
Total payment due | 191,602 |
Note B [Member] | |
Notes Payable | 64,573 |
Principal payments | 12,821 |
Interest payments | 2,537 |
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, 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. |
Danish Krone [Member] | Note B [Member] | |
Notes Payable | $ 1,132,000 |
Interest rate on notes payable | 2.00% |
Notes payable description | 3.75 years left on the term. |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | ||||
Sep. 23, 2019 | Nov. 30, 1997 | Mar. 31, 2020 | Jun. 30, 2019 | Dec. 08, 2014 | Dec. 07, 2014 | |
Common Stock, shares authorized | 60,000,000 | 60,000,000 | ||||
Common Stock, shares outstanding | 3,292,945 | 2,292,945 | ||||
Common Stock | ||||||
Common Stock exchange ratio | one for twenty (1:20) | |||||
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common Stock, shares authorized | 10,000,000 | 60,000,000 | 90,000,000 | |||
Common Stock, shares outstanding | 45,853,585 | |||||
Reduction of common stock, shares | 2,292,945 | |||||
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 | |||||
Discription of warrants exercisable | 3 years | |||||
Preferred Stock, shares | 172,000 | |||||
Preferred Stock converted into common stock, shares | 344,000 | |||||
Preferred shares designated | 177,000 | |||||
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 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. | |||||
Preferred shares designated | 1 | |||||
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 | |||||
Convertible Preferred Stock, Series 2 | ||||||
Preferred Stock, shares issued | 5,000 | 5,000 | ||||
Preferred Stock, shares outstanding | 5,000 | 5,000 | ||||
Preferred Stock, par value | $ 0.01 | $ 0.01 | ||||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | ||||
Convertible Preferred Stock, Series 3 | ||||||
Preferred Stock, shares issued | 0 | 0 | ||||
Preferred Stock, shares outstanding | 0 | 0 | ||||
Preferred Stock, par value | $ 0.01 | $ 0.01 | ||||
Preferred Stock, shares authorized | 1,670,000 | 1,670,000 | ||||
Convertible Preferred Stock, Series 5 | ||||||
Preferred Stock, shares issued | 0 | 0 | ||||
Preferred Stock, shares outstanding | 0 | 0 | ||||
Preferred Stock, shares authorized | 1 | 1 | ||||
Preferred Stock [Member] | ||||||
Preferred Stock, par value | $ 0.01 | |||||
Preferred Stock, shares authorized | 10,000,000 | |||||
Wolfe | Common Stock | Stock Grant and Investment Agreement | ||||||
Sahres granted | 1,000,000 | |||||
Fair value | $ 113,000 | |||||
Stock price | $ 0.11 |