AOXY's Revenue Hinges on Single Lease, Distribution Arm Stalls

TL;DR

**AOXY is a highly speculative microcap with zero sales from its core business and a ticking clock on its only revenue stream; avoid.**

AI Summary

Advanced Oxygen Technologies, Inc. (AOXY) reported minimal operations for the fiscal year ended June 30, 2025, with its primary revenue stream derived solely from its Danish subsidiary, Anton Nielsen Vojens, ApS (ANV), which leases commercial real estate to Circle K Denmark A/S. The lease with Circle K Denmark A/S is set to expire in 2026, posing a significant future revenue risk. The other subsidiary, Sharx Inc., and its Danish counterpart, Sharx DK ApS, which were established in April 2020 to distribute cargo security straps, generated zero revenues for both the years ended June 30, 2025, and 2024. This lack of sales is attributed to the manufacturer's inability to produce and deliver products due to COVID-19. The company's aggregate market value of Common Stock held by non-affiliates was approximately $88,628 as of December 31, 2024, with 3,292,945 shares outstanding as of September 11, 2025. AOXY is actively seeking capital and potential acquisitions or mergers to enhance its earnings potential, acknowledging its absence of significant sales and the difficulties in predicting future performance.

Why It Matters

AOXY's reliance on a single commercial real estate lease with Circle K Denmark A/S, expiring in 2026, creates extreme revenue concentration risk for investors. The complete failure of its Sharx distribution business to generate any sales for two consecutive years due to supply chain issues highlights operational fragility and a lack of diversification. This precarious position makes AOXY highly vulnerable to market shifts in commercial real estate and competitive pressures from larger, more capitalized logistics equipment distributors like Kinedyne, LLC, impacting its ability to sustain operations and deliver shareholder value. Employees face uncertainty given the company's minimal operations and dependence on a single customer.

Risk Assessment

Risk Level: high — The company faces high risk due to its sole reliance on lease revenue from one customer, Circle K Denmark A/S, which expires in 2026. Its Sharx subsidiary reported zero revenues for the years ended June 30, 2025, and 2024, indicating a complete failure to execute its distribution business plan. This extreme revenue concentration and lack of operational diversification make AOXY highly susceptible to adverse changes in its single lease agreement or the commercial real estate market.

Analyst Insight

Investors should exercise extreme caution and consider divesting, as AOXY's business model is unsustainable with a single, expiring revenue source and a non-performing distribution segment. Focus on companies with diversified revenue streams and proven operational execution, especially given the company's minimal market value of $88,628.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

Not Disclosed

Revenue Breakdown

Key Numbers

• $88,628 — Aggregate market value of Common Stock held by non-affiliates (As of December 31, 2024, indicating a microcap status.)
• 3,292,945 — Issued and outstanding shares of Common Stock (As of September 11, 2025.)
• 2026 — Lease expiration year for ANV's sole customer (Represents a critical future revenue risk for the company.)
• 0 — Revenues for Sharx subsidiary (For years ended June 30, 2025, and 2024, highlighting operational failure.)
• 2 — Total employees (As of June 30, 2025, indicating minimal operational scale.)
• $335,000 — Cash received from patent sale (In 1995, demonstrating a past business model shift.)

Key Players & Entities

• ADVANCED OXYGEN TECHNOLOGIES INC (company) — Registrant
• AOXY (company) — Ticker symbol
• Anton Nielsen Vojens, ApS (company) — Wholly owned subsidiary and primary revenue generator
• Circle K Denmark A/S (company) — Sole customer for ANV's lease revenue
• Sharx Inc. (company) — Wholly owned subsidiary with zero revenues
• Sharx DK ApS (company) — Danish subsidiary of Sharx Inc. with zero revenues
• Cleaver ApS (company) — Manufacturer and nonexclusive distributor partner for Sharx
• W. R. Grace & Co. Conn. (company) — Purchaser of AOXY's patents in 1995
• Harry Edelson (person) — Former Chairman and CEO of AOXY
• Kinedyne, LLC (company) — Major competitor in load restraint equipment market

FAQ

Risk Factors

• Dependence on a Single Customer for ANV [high — operational]: ANV, the company's Danish subsidiary, derives all its revenue from a single customer, Circle K Denmark A/S. The lease with this customer is set to expire in 2026, posing a significant risk of revenue loss if the lease is not renewed or if the customer becomes insolvent.
• Failure of Sharx Subsidiary to Generate Revenue [high — operational]: Sharx Inc. and its Danish counterpart, Sharx DK ApS, established in April 2020 to distribute cargo security straps, have generated zero revenues for the fiscal years ended June 30, 2025, and 2024. This is attributed to the manufacturer's inability to produce and deliver products, indicating a complete operational failure of this business segment.
• Foreign Currency Exchange Rate Fluctuations [medium — financial]: As 100% of the company's revenue is derived from its Danish subsidiaries (ANV and Sharx DK ApS), AOXY is subject to risks associated with currency devaluations and fluctuations in exchange rates between the Danish Krone and the US Dollar. This can impact reported revenues and the balance sheet.
• Unpredictable Commercial Real Estate Market [medium — market]: The profitability of ANV's commercial real estate venture is subject to unpredictable factors beyond the company's control, including world prices, lease markets, and changes in domestic, international, political, social, and economic environments. This uncertainty makes it difficult to project returns on invested capital.
• Need for Capital and Potential Dilution [medium — financial]: The company acknowledges its absence of significant sales and is actively seeking capital. This pursuit may involve issuing new shares, which could lead to significant dilution for existing shareholders.
• Limited Operational Scale and Management Complexity [low — operational]: With only two employees as of June 30, 2025, and significant operations in Denmark, the company faces challenges in managing foreign operations, including language barriers and longer customer payment cycles.

Industry Context

Advanced Oxygen Technologies, Inc. operates in a highly speculative microcap space with minimal current operations. Its primary revenue source is commercial real estate leasing through its Danish subsidiary, ANV, to a single tenant. The cargo security strap business through Sharx has failed to generate any sales. The company's strategy appears to be focused on survival through capital raises and potential M&A rather than organic growth in its current ventures.

Regulatory Implications

As a publicly traded company, AOXY is subject to SEC reporting requirements. The company's microcap status and minimal operations may attract scrutiny regarding its ability to continue as a going concern. There are no specific regulatory risks highlighted beyond general business operational risks and foreign currency exposure.

What Investors Should Do

1. Monitor Lease Renewal for ANV
2. Evaluate Capital Raising Plans
3. Assess Viability of Sharx Business
4. Consider Microcap Status and Volatility

Key Dates

• 1995-05-01: Sale of Patents Rights — Marked a shift away from specialty materials and generated $335,000 in cash.
• 1997-12-18: Stock Acquisition Agreement — Issued 23,750,000 shares for cash and consulting services, impacting share structure.
• 2020-04: Incorporation of Sharx Inc. and Sharx DK ApS — Established a new business line for cargo security straps, which has yet to generate revenue.
• 2025-06-30: Fiscal Year End — Reported minimal operations, zero revenue from Sharx, and reliance on ANV's lease.
• 2026: Expiration of ANV Lease — Critical date representing a significant future revenue risk for the company.

Glossary

ANV (Anton Nielsen Vojens, ApS)

A wholly owned Danish subsidiary of AOXY that owns commercial real estate. (The sole source of current revenue for AOXY through its lease with Circle K Denmark A/S.)

Sharx Inc. / Sharx DK ApS

Wholly owned subsidiaries established to distribute cargo security straps. (Have generated zero revenue since inception, indicating a failed business venture to date.)

Aggregate market value of Common Stock held by non-affiliates

The total market value of the company's stock held by public investors, excluding shares held by insiders. (Indicates the company's microcap status, with a value of $88,628 as of December 31, 2024.)

Foreign currency risks

Risks arising from fluctuations in exchange rates between different currencies. (AOXY is exposed to these risks as 100% of its revenue is generated in Denmark (in Danish Kroner).)

Year-Over-Year Comparison

The 10-K for the fiscal year ended June 30, 2025, indicates a continuation of the minimal operational status reported in the previous year. Revenue from the ANV subsidiary remains dependent on a single lease expiring in 2026, and the Sharx subsidiary continues to report zero revenue. The company's market capitalization remains extremely low, highlighting its ongoing struggle for financial viability and its active pursuit of capital and potential acquisitions or mergers.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 Par Value AOXY OTC:PINK Securities
• $335,000 — ). The price for the Patents Rights was $335,000, in cash, and a royalty until April 30,
• $60,000 — mon stock, par value $.01 per share for $60,000 cash plus consulting services rendered
• $177,500 — consulting services rendered valued at $177,500, to Crossland, Ltd., ("Crossland"), Eas
• $10,000 — hnology Partners II, L.P. ("ETPII") for $10,000 cash. AOXY issued 450,000 shares of its
• $2,000,000 — keting business. The purchase price was $2,000,000. PURCHASE AGREEMENT OF 1/29/1999 On
• $550,000 — ygen Technologies, Inc. ("STOCK") and a $550,000 promissory note issued by Advanced Oxyg
• $15,000 — the Purchase Agreement were: AOXY paid $15,000 to IMA, assumed a Citicorp Computer Equ
• $5,000 — urchase Agreement), executed a one year $5,000 promissory note with IMA, and delivered
• $44,811 — lease #010-0031648-001 in the amount of $44,811.26, executed a UCC2 filing releasing UC
• $650,000 — executed a promissory note ("Note") for $650,000, payable to the sellers of ANV ("Seller
• $5.00 — ty that has a market price of less than $5.00 per share or with an exercise price of

Filing Documents

• aoxy_10k.htm (10-K) — 640KB
• aoxy_ex211.htm (EX-21.1) — 3KB
• aoxy_ex311.htm (EX-31.1) — 9KB
• aoxy_ex312.htm (EX-31.2) — 9KB
• aoxy_ex321.htm (EX-32.1) — 4KB
• aoxy_ex322.htm (EX-32.2) — 4KB
• 0001477932-25-006652.txt ( ) — 3162KB
• aoxy-20250630.xsd (EX-101.SCH) — 27KB
• aoxy-20250630_lab.xml (EX-101.LAB) — 172KB
• aoxy-20250630_cal.xml (EX-101.CAL) — 32KB
• aoxy-20250630_pre.xml (EX-101.PRE) — 151KB
• aoxy-20250630_def.xml (EX-101.DEF) — 77KB
• aoxy_10k_htm.xml (XML) — 369KB

Business

Business 3 ITEM 1A.

Risk Factors

Risk Factors 7 ITEM 1B. Unresolved Staff Comments 10 ITEM 1C. Cyber Security 10 ITEM 2.

Properties

Properties 10 ITEM 3.

Legal Proceedings

Legal Proceedings 10 ITEM 4. Mine Safety Disclosures 10 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 11 ITEM 6.

Selected Financial Data

Selected Financial Data 11 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 16 ITEM 8. Consolidated Financial Statements and Supplementary Data 16 ITEM 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 16 ITEM 9A.

Controls and Procedures

Controls and Procedures 16 ITEM 9B. Other Information 17 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 18 ITEM 11.

Executive Compensation

Executive Compensation 19 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 21 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 22 ITEM 14. Principal Accountant Fees and Services 23 PART IV ITEM 15. Exhibits and Financial Statement Schedules 24

Signatures

Signatures 25 Exhibit F: Consolidated Financial Statements and Schedules F-1 1 Table of Contents Cautionary Language Regarding Forward-Looking Statements and Industry Data This Annual Report on Form 10-K contains "forward-looking statements". Forward-looking statements are based upon our current assumptions, expectations and beliefs concerning future developments and their potential effect on our business. In some cases, you can identify forward-looking statements by the following words: "may," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "approximately," "estimate," "predict," "project," "potential" or the negative of these terms or other comparable terminology, although the absence of these words does not necessarily mean that a statement is not forward-looking. This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements. Factors that may cause or contribute actual results to differ from these forward-looking statements include, but are not limited to, the following: all the risks inherent in the owning, buying, leasing, selling, or developing real estate or the real estate business; the Company's absence of significant sales or sales revenues, which make it difficult to predict future performance; the need to make multiple assumptions in preparing forecasts and projections of any kind, and significant difficulties in predicting and forecasting accurately the expenses likely to be incurred and the revenues likely to be generated in the Company's future operations; significant competition in the real estate leasing and development business; the risk that the Company will have difficulties executing its intended business plan; the risk that the Company's sole source of revenues may discontin

- DESCRIPTION OF BUSINESS

ITEM 1- DESCRIPTION OF BUSINESS GENERAL: Advanced Oxygen Technologies, Inc. ("Advanced Oxygen Technologies", "AOXY", or the "Company") operations are derived from its wholly owned subsidiaries Anton Nielsen Vojens, ApS ("ANV"), Sharx Inc. and its wholly owned subsidiary Sharx DK ApS (collectively "Sharx"). AOXY, incorporated in Delaware in 1981 under the name Aquanautics Corporation, was, from 1985 until May 1995, a startup specialty materials company producing new oxygen control technologies. From May of 1995 through December of 1997 AOXY had minimal operations and was seeking funding for operations and companies to which it could merge or acquire. In March of 1998 AOXY began operations in California. From 1998 through 2000, the business consisted of producing and selling 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"). Business operations have been solely derived from ANV and Sharx. ANV is a Danish company that owns commercial real estate in Vojens, Denmark. ANV's revenues are derived solely from the lease revenue from its real estate. Circle K Denmark A/S, formerly StatOil A/S, leases the facility from ANV. The lease expires in 2026. Sharx Inc. is a Wyoming corporation incorporated in April 2020 and operations are derived from its wholly owned subsidiary Sharx DK ApS. Sharx DK ApS is a Danish company, incorporated in April 2020. On June 30, 2020, Sharx DK ApS, entered into a distribution agreement with Cleaver ApS, a Danish corporation ("Cleaver"), whereby Cleaver has appointed the Company as Cleaver's nonexclusive distributor of its products in Europe, South America and North America. Cl

RISK FACTORS

ITEM 1A. RISK FACTORS Risks Specific to Our Company THE POTENTIAL PROFITABILITY OF COMMERCIAL REAL ESTATE VENTURES DEPENDS UPON FACTORS BEYOND THE CONTROL OF OUR COMPANY. The potential profitability of commercial real estate properties is dependent upon many factors beyond our control. For instance, world prices and markets for rents and leases of commercial properties are unpredictable, and respond to changes in domestic, international, political, social, and economic environments. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for maintenance, repair, expansion and other expenses have become increasingly difficult, if not impossible, to project. These changes and events may materially affect our financial performance. These factors cannot be accurately predicted and the combination of these factors may result in our Company not receiving an adequate return on invested capital. WE ARE SUBJECT TO RISKS ASSOCIATED WITH FOREIGN CURRENCY ANV and Sharx DK ApS are Danish companies with operations only in Denmark. During the years ended June 30, 2025 and 2024, foreign revenues accounted for 100% of our total revenue. As a result, we are subject to risks associated with generating revenue in multiple countries, including: increased time, effort and attention of our management to manage our foreign operations; balance sheet fluctuations. currency devaluations and fluctuations in currency exchange rates, including impacts of transactions in various currencies and translation of various currencies into dollars for U.S. reporting and financial covenant compliance purposes; language barriers and other difficulties in staffing and managing foreign operations; longer customer payment cycles and greater difficulties in collecting accounts receivable; uncertainties of laws and enforcement relating to the protection of property; imposition of or increases in currency exchange controls, including imposition of or increases in li

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View this 10-K filing on SEC EDGAR