ADVANCED OXYGEN TECHNOLOGIES INC: MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS. (Form 10-Q)

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The following should be read in conjunction with our consolidated financial statements and the accompanying notes included in the financial statements.


FORWARD LOOKING STATEMENTS:


Certain statements contained in this report, including statements regarding the Company’s future and financing needs, the Company’s ability to obtain market acceptance of its products, and the competitive market for small generation business sales and other statements contained in this report regarding matters that are not historical facts, are forward-looking statements; actual results may differ materially from those set forth in forward-looking statements, which statements involve risks and uncertainties, including, without limitation, the risks and uncertainties set forth in the company’s registration statements and annual reports on the Form 10K under the heading “Risk Factors” or any other similar heading. Further, the historical performance of the Company should not be taken as an indicator of future performance and, as such, the future performance of the Company may differ significantly from historical performance.

REVENUES: Operating revenues for the three-month period ending December 31, 2021 and December 31, 2020 were $9,867 and $10,284 respectively, and for the six-month period ending December 31, 2021 and December 31, 2020 were $20,048 and
$20,613 respectively. The decreases are due to currency fluctuations.

GENERAL AND ADMINISTRATIVE FEES: G&A fees for the three-month period ending December 31, 2021 and December 31, 2020 were $3,039 and $267
respectively, and for the six-month period ending December 31, 2021 and December 31, 2020 were $4,205 and $4,322 respectively. The expenses are mainly attributable to the normal activities of ANV and to the SECOND compliance.

PROFESSIONAL EXPENSES: Professional expenses for the three-month period ending
December 31, 2021 and December 31, 2020 were $3,000, and $3,025 respectively, and for the six-month period ending December 31, 2021 and December 31, 2020 were
$11,000 and $10,050 respectively. The expenses were chargeable to ordinary accounting expenses for 2021 and 2020.

OTHER INCOME (EXPENSES): Other income expenses for the three-month period ending
December 31, 2021 and December 31, 2020 were $54,881, and ($698) respectively, and for the six-month period ending December 31, 2021 and December 31, 2020 were
$54,351 and ($1,435) respectively. The fluctuations are mainly attributable to the gain on the tax settlement of $55,579.

NET INCOME: Net income attributed to ordinary shareholders was $56,755 Where $0.02
per basic and diluted share for the three-month period ending December 31, 2021
compared to $4,204 Where $0.00 per basic and diluted share for December 31, 2020. Net income attributed to common shareholders was $55,184 Where $0.02 per basic and diluted share for the six-month period ending December 31, 2021 compared to $726 Where $0.00 per basic and diluted share for December 31, 2020. The fluctuations are mainly attributable to general and administrative expenses, currency fluctuations and other income.

CASH AND CAPITAL RESOURCES: AT December 31, 2021 and June 30, 2021, the Company had cash and cash equivalents $99,177 and $49,979 respectively. AT
December 31, 2021 and June 30, 2021, the Company had a working capital deficit of $229,139 and $145,907 respectively. The change in cash is mainly due to the tax benefit of ANV. The decrease in the working capital requirement is mainly linked to ANV’s activities.

Net cash provided by operating activities for the six-month period ending December 31, 2021 and December 31, 2020 has been $73,551 and $22,433, respectively. The increase is mainly due to the tax benefit of ANV

Net cash used in financing activities for the six-month period ending December 31, 2021 and December 31, 2020 has been ($20,877) and ($19,244) respectively. Net cash used in financing activities for both periods relates to the Company’s borrowings from banks, officers and directors, and the repayment of debt.

OFF-BALANCE SHEET ARRANGEMENTS:

We currently have no off-balance sheet arrangements.


ACQUISITION EFFORTS:


The Company continues its efforts to raise capital to support its operations and growth and is actively seeking an acquisition or merger with another company that would complement AOXY or increase its earnings potential. During this period, the Company has been in discussions with companies wishing to be acquired. AOXY did not negotiate any terms or offer any acquisition of any of these companies that were accepted. In addition, the Company is in discussions with potential lending institutions to help finance any proposed acquisition. The Company anticipates difficulty in financing the growth of the increased business or acquisition and has focused on raising capital and/or obtaining a line of credit.



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