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, 2026, prior to period end and interest waived through the period ending June 30, 2025. As of June 30, 2025 and 2024, the unpaid balance was $127,029. The Companys commitments and contingencies are $127,029 for 2025. See below table for the years 2025 through 2026 with total principal payments due on outstanding notes payable of $127,029. The amounts stat …

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Year Ended June 30, Revenue Type 2025 2024 Real Estate Rental $ 43,445 $ 42,577 Commission Revenues - - Total Sales by Revenue Type $ 43,445 $ 42,577

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NOTE 7 - INCOME TAXES: As of June 30, 2025, the Company had federal and state net operating loss carryforwards of approximately $20,752,040 of which approximately $654,734 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 loss carryforwards will expire during the fiscal years ended June 30 as follows: Year Amount 2025 $ - Total $ - 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, 2025 and 2024: 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 - - Income Tax Expense 22 % 22 % F-12 Table of Contents The components of income tax expense (benefit) from continuing operations for the years ended June 30, 2025 and 2024 consisted of the following: Current Tax Expense 2025 2024 Danish Income Tax Expense (Benefit) $ 9,985 $ 9,184 Federal US Income Tax Expense (Benefit) Current - - Deferr …

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None.

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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, 2025 and 2024, the Company had a balance of $55,974 and $128,373 respectively. During the twelve-month period ended June 30, 2025 and 2024 expenses paid on behalf of the Company were $27,419 and $25,950 respectively. The Company repaid $89,819 of the advancements during the year ending June 30, 2025.

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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, 2025 and zero for the year ending June 30, 2024. 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 2025 2024 Real Estate Rental $ 43,445 $ 42,577 Commission Revenues - - Total Sales by Revenue Type $ 43,445 $ 42,577 The Companys derives revenues from 100% of foreign revenues. For the period ending June 30, 2025 and June 30, 2024 the major geographic concentrations were as follows: Geographic Regions for the Twelve Months Ended June 30, Revenue Type 2025 2024 International $ 43,445 $ 42,577 Domestic - - Total Sales by Geographic Location $ 43,445 $ 42,577 …

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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, 2025 2024 Revenue by segment Lease revenues $ 43,445 $ 42,577 Commission revenues from security product sales - - Corporate revenues - - Total revenue $ 43,445 $ 42,577 Segment profitability Lease income (loss) $ 32,707 $ 32,564 Commission income (loss) from security product sales - - Corporate income (loss) (28,569 ) (27,000 ) Total segment profitability $ 4,138 $ 5,564 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: 2025 2024 Net Sales United States $ - $ - Denmark 43,445 42,577 Total $ 43,445 $ 42,577 Long-Lived Assets United States $ - $ - Denmark 634,601 579,588 Total $ 634,601 $ 579,588 Year Ended June 30, 2025 ANV Sharx Corporate Total Net sales $ 43,445 $ - $ - $ 43,445 Operating inc …

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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 2026. We recognize revenue when we have satisfied a performance obligat …

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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, 2025 and June 30, 2024 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, 2025, and June 30, 2024 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, 2025 and 2024. 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 …

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NOTE 10 - SUBSEQUENT EVENTS: In accordance with ASC 855-10, Company management reviewed all material events through the date of this report.

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