Financial Analysis

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, 2027, prior to period end and interest waived through the period ending June 30, 2026. As of June 30, 2026 and 2025, the unpaid balance was $127,029. The Companys commitments and contingencies are $127,029 for 2026. See below table for the years 2026 through 2027 with total principal payments due on outstanding notes payable of $127,029. The amounts stat …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended June 30, Revenue Type 2026 2025 Real Estate Rental $ 47,444 $ 43,445 Total Sales by Revenue Type $ 47,444 $ 43,445

DisaggregationOfRevenueTableTextBlock

NOTE 7 - INCOME TAXES: As of June 30, 2026, the Company had federal and state net operating loss carryforwards of approximately $20,639,368 of which approximately $683,303 may be utilized to offset future taxable income. Section 382 of the Internal Revenue Code imposes substantial restrictions on the utilization of net operating loss and tax credit carryforwards when a change in ownership occurs. No deferred tax assets have been recorded because it is considered unlikely that they will be realized. The overall effective tax rate differs from the federal statutory tax rate of 21% due to operating losses and other deferred assets not providing benefit for income tax purposes. A reconciliation of income tax expense at the federal statutory rate to income tax expense at the Companys effective rate is as follows at June 30, 2026 and 2025: 2025 2024 United States Statutory Income Tax Rate 21 % 21 % Increase (Decrease) in rate on income subject to Danish income tax rates 1 % 1 % Decrease in rate resulting from Non-Deductible expenses - - Effective Income Tax Rate 22 % 22 % The components of income tax expense (benefit) from continuing operations for the years ended June 30, 2026 and 2025 consisted of the following: Current Tax Expense 2026 2025 Danish Income Tax Expense (Benefit) $ (86,618 ) $ 9,985 Federal US Income Tax Expense (Benefit) Current - - Deferred - - Total Income Tax Expense $ (86,618 ) $ 9,985 Deferred income tax expense/ (benefit) results primarily from the reversal o …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

None.

NewAccountingPronouncementsPolicyPolicyTextBlock

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. At June 30, 2026 and 2025, the Company had a balance of $19,276 and $55,974 respectively. During the twelve-month period ended June 30, 2026 and 2025 expenses paid on behalf of the Company were $24,160 and $27,419 respectively. The Company repaid $60,858 of the advancements during the year ending June 30, 2026.

RelatedPartyTransactionsDisclosureTextBlock

NOTE 3 - REVENUE: The Companys 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 earned. The Companys subsidiary Sharx DK ApS had zero retail customers for the year ending June 30, 2026 and zero for the year ending June 30, 2025. 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: Year Ended June 30, Revenue Type 2026 2025 Real Estate Rental $ 47,444 $ 43,445 Total Sales by Revenue Type $ 47,444 $ 43,445 The Companys derives revenues from 100% of foreign revenues. For the period ending June 30, 2026 and June 30, 2025 the major geographic concentrations were as follows: Geographic Regions for the Twelve Months Ended June 30, Revenue Type 2026 2025 International $ 47,444 $ 43,445 Domestic - - Total Sales by Geographic Location $ 47,444 $ 43,445 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 9 SEGMENT AND GEOGRAPHIC INFORMATION Segment Performance We have three reporting segments: 1. The ANV lease segment which leases land in Denmark by long term leases. 2. The Sharxs segment which generate commissions for the sale cargo security products. 3. 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 segments results of operations for the periods presented: Year Ended June 30, 2026 2025 Revenue by segment Lease revenues $ 47,444 $ 43,445 Commission revenues from security product sales - - Corporate revenues - - Total revenue $ 47,444 $ 43,445 Segment profitability Net lease income (loss) $ 133,030 $ 32,707 Commission income (loss) from security product sales - - Corporate income (loss) (30,060 ) (28,569 ) Total segment profitability $ 102,970 $ 4,138 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 Companys subsidiary, ANV. Year Ending June 30: 2026 2025 Net Sales United States $ - $ - Denmark 47,444 43,445 Total $ 47,444 $ 43,445 Long-Lived Assets United States $ - $ - Denmark 616,768 634,601 Total $ 616,768 $ 634,601 Year Ended June 30, 2026 ANV Sharx Corporate Total Net sales $ 47,444 $ - $ - $ 47,444 Operat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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 (ANV and Sharx), after elimination of all intercompany accounts, transactions, and profits. Basis of Presentation: The consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and are expressed in United States dollars. The Companys fiscal year end is June 30. Use of Estimates 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. Revenue Recognition: Revenue from Contracts with Customers The Company recognizes revenues under Accounting Standards Codification (ASC) 842 Leases (ASC 842) and ASC 606 Revenue from Contracts with Customers (ASC 606) for our rental revenue and commission revenue. 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 on a 6 month basis through 2027. We recognize revenue when we have sati …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 8 STOCKHOLDERS EQUITY: Common Stock: The Company is authorized to issue 60,000,000 shares of Common stock, par value $0.01; At June 30, 2026 and June 30, 2025 there were 3,292,945 and 3,292,945 shares issued and outstanding, respectively. 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 Companys creditors, including directors, have been paid. There have been no dividends declared. As of June 30, 2026, and June 30, 2025 there are 5,000 shares issued, which are convertible into 10,000 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 authorized 1,670,000 shares of series 3 convertible preferred stock with a par value $0.01. There are zero shares issued and outstanding at June 30, 2026 and 2025. Series 5 Convertible Preferred Stock: The Company has authorized 1 share of series 5 convertible preferred stock, no par value. There is 1 Series 5 Convertible Preferred sh …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 - SUBSEQUENT EVENTS: In accordance with ASC 855-10, Company management reviewed all material events through the date of this report. There are none to disclose.

SubsequentEventsTextBlock