The following should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in the Financial Statements.





FORWARD LOOKING STATEMENTS:

Certain statements contained in this report, including statements concerning the Company's future and financing requirements, the Company's ability to obtain market acceptance of its products and the competitive market for sales of small production business and other statements contained herein regarding matters that are not historical facts, are forward looking statements; actual results may differ materially from those set forth in the forward looking statements, which statements involve risks and uncertainties, including without limitation to those risks and uncertainties set forth in any of the Company's Registration Statements under the heading "Risk Factors" or any other such heading. In addition, historical performance of the Company should not be considered as an indicator for future performance, and as such, the future performance of the Company may differ significantly from historical performance.

Revenues: Revenues from operations for the three-month period ending December 31, 2019 and December 31, 2018 were $9,281 and $9,488 respectively, and the revenues for the six-month period ending December 31, 2019 and December 31, 2018 were $18,610 and $19,161 respectively. They were attributable to operations of the Company's wholly owned subsidiary Anton Nielsen Vojens. The fluctuation was due to currency fluctuations.





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Selling, general and administrative expenses: G&A expenses for the three-month period ending December 31, 2019 and December 31, 2018 were $3,958 and $1,315 respectively, and for the six-month period ending December 31, 2019 and December 31, 2018 were $7,173and $3,176 respectively. The expenses are mainly attributable to ANV's normal operations and the fluctuations are attributable to currency fluctuations.

Salary and Wages expenses: Salary and wage compensation expenses for the three-month period ending December 31, 2019 and December 31, 2018 were $0 and $0 respectively, and for the six-month period ending December 31, 2019 and December 31, 2018 were $113,000 and $0 respectively. The increase is attributable to Common Stock issues to an officer of the Company.

Professional expenses: Professional expenses for the three-month period ending December 31, 2019 and December 31, 2018 were $2,500 and $2,500 respectively, and for the six-month period ending December 31, 2019 and December 31, 2018 were $8,500 and $8,500 respectively. The expenses are mainly attributable to the Company's independent auditors and SEC filings.

Interest expense: Interest expense for the three-month period ending December 31, 2019 and December 31, 2018 was $854 and $1,070 respectively, and for the six-month period ending December 31, 2019 and December 31, 2018 was $1,755 and $2,213 respectively. Interest expenses for 2019 are lower primarily due to the currency fluctuations and the reduction of debt.

Net income (loss) attributed to common stockholders: Net income (loss) attributed to common stockholders was $183 or $0.00 per share for the three-month period ending December 31, 2019 as compared to $2,774 or $0.00 per share for December 31, 2018. Net income (loss) attributed to common stockholders was $(115,363) or ($0.04) per share for the six-month period ending December 31, 2019 as compared to $5,463 or $0.00 per share for December 31, 2018. The fluctuations are mainly attributable to officer compensation, professional fees and currency fluctuations.

Liquidity and capital resources: At December 31, 2019 and June 30, 2019, the Company had cash and cash equivalents of $37,302 and $43,098 respectively. At December 31, 2019 and June 30, 2019, the Company had a working capital deficit of $262,586 and $251,829 respectively. The change in cash is primarily associated with currency fluctuations, and the decrease in the working capital deficit is primarily due to payment of debt and normal operations.

Net cash provided by (used in) operating activities for six-month period ending December 31, 2019 and December 31, 2018 was $11,861 and $4,682, respectively. The net cash used by operating activities was primarily due to the operations of ANV and the payment of ANV taxes.

Net cash (used in) financing activities for six-month period ending December 31, 2019 and December 31, 2018 was $(17,077) and $(12,724) respectively. Net cash provided from or used for financing activities for both periods is related to the company's borrowings from banks, officers and directors, and the repayment of debt.

OFF BALANCE SHEET ARRANGEMENTS:

We do not currently have any off-balance sheet arrangements.





ACQUISITION EFFORTS:

The Company continues its efforts to raise capital to support operations and growth and is actively searching acquisition or merger with another company that would complement AOXY or increase its earnings potential. During this period, the Company has been in discussion with Companies looking to be acquired. AOXY has not negotiated any terms nor proposed any acquisitions of any of these companies that have been accepted. In addition, the Company is in discussion with potential lending institutions to assist in financing any proposed acquisition. The Company expects difficulty in financing the growth of the increased business or acquisition and has been concentrating on raising capital and/or obtaining a line of credit.

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